SUPPLEMENTAL FINANCIAL DATA-OIL AND GAS PRODUCING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2012

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Schedule of proved developed and undeveloped oil and gas reserve quantities

The following table sets forth the Company’s estimates of its net proved, net proved developed, and net proved undeveloped oil, natural gas liquids, and natural gas reserves as of December 31, 2012, 2011, and 2010 and changes in its net proved reserves for the years then ended. For the years presented, the Company engaged DeGolyer and MacNaughton, an independent petroleum engineering firm, to perform reserve audit services.

	Oil					Natural Gas Liquids					Natural Gas
	(MBbls)					(MBbls)					(MMcf)
	United States		Italy	Total		United States		Italy	Total		United States		Italy		Total		Total MMcfe(1)		Total MBoe(1)
Balance at January 1, 2010	16,932		—	16,932		38,236		—	38,236		1,415,431		51,738		1,467,169		1,798,177		299,696
Revisions of previous estimates	1,276		—	1,276		(278	)	—	(278	)	(38,515	)	—		(38,515	)	(32,527	)	(5,421	)
Extensions and discoveries	4,591		—	4,591		9,051		—	9,051		199,790		—		199,790		281,642		46,940
Production	(2,357	)	—	(2,357	)	(3,589	)	—	(3,589	)	(101,346	)	—		(101,346	)	(137,022	)	(22,837	)
Sales of reserves in place	(183	)	—	(183	)	(292	)	—	(292	)	(45,783	)	—		(45,783	)	(48,633	)	(8,106	)
Purchases of reserves in place	59		—	59		256		—	256		4,154		—		4,154		6,044		1,007
Balance at December 31, 2010	20,318		—	20,318		43,384		—	43,384		1,433,731		51,738		1,485,469		1,867,681		311,280
Revisions of previous estimates	(1,061	)	—	(1,061	)	(3,716	)	—	(3,716	)	(91,721	)	—		(91,721	)	(120,383	)	(20,064	)
Extensions and discoveries	17,816		—	17,816		8,262		—	8,262		144,094		—		144,094		300,562		50,094
Production	(2,491	)	—	(2,491	)	(3,154	)	—	(3,154	)	(88,497	)	—		(88,497	)	(122,367	)	(20,395	)
Sales of reserves in place	(2,989	)	—	(2,989	)	(347	)	—	(347	)	(1,091	)	—		(1,091	)	(21,107	)	(3,518	)
Purchases of reserves in place	—		—	—		—		—	—		—		—		—		—		—
Balance at December 31, 2011	31,593		—	31,593		44,429		—	44,429		1,396,516		51,738		1,448,254		1,904,386		317,398
Revisions of previous estimates	(6,151	)	—	(6,151	)	(6,023	)	—	(6,023	)	(479,009	)	(51,738	)	(530,747	)	(603,791	)	(100,632	)
Extensions and discoveries	16,574		—	16,574		6,929		—	6,929		93,643		—		93,643		234,661		39,110
Production	(3,146	)	—	(3,146	)	(3,489	)	—	(3,489	)	(81,008	)	—		(81,008	)	(120,818	)	(20,136	)
Sales of reserves in place	(5,168	)	—	(5,168	)	(591	)	—	(591	)	(17,309	)	—		(17,309	)	(51,863	)	(8,644	)
Purchases of reserves in place	—		—	—		—		—	—		—		—		—		—		—
Balance at December 31, 2012	33,702		—	33,702		41,255		—	41,255		912,833		—		912,833		1,362,575		227,096
Proved developed reserves at:
January 1, 2010	11,327		—	11,327		23,037		—	23,037		916,005		—		916,005		1,122,189		187,032
December 31, 2010	13,421		—	13,421		24,120		—	24,120		886,644		25,869		912,513		1,137,759		189,627
December 31, 2011	14,149		—	14,149		23,170		—	23,170		814,160		—		814,160		1,038,074		173,012
December 31, 2012	12,315		—	12,315		25,518		—	25,518		710,288		—		710,288		937,286		156,214
Proved undeveloped reserves at:
January 1, 2010	5,605		—	5,605		15,199		—	15,199		499,426		51,738		551,164		675,988		112,665
December 31, 2010	6,897		—	6,897		19,264		—	19,264		547,087		25,869		572,956		729,922		121,654
December 31, 2011	17,444		—	17,444		21,259		—	21,259		582,356		51,738		634,094		866,312		144,385
December 31, 2012	21,387		—	21,387		15,737		—	15,737		202,545		—		202,545		425,289		70,882

___________________________________________

(1) Oil and natural gas liquids are converted to gas-equivalents using a conversion of six Mcf “equivalent” per barrel of oil or natural gas liquids. Likewise, natural gas is converted to oil-equivalents using a conversion of one barrel of oil “equivalent” per six Mcf of natural gas. These conversions are based on energy equivalence and not price equivalence.

Capitalized costs relating to oil and gas producing activities

The aggregate capitalized costs relating to oil and gas producing activities were as follows as of the dates indicated:

	December 31,
	2012			2011
	(In Thousands)
Costs related to proved properties	$	9,696,498		$	8,825,142
Costs related to unproved properties	277,798			675,995
	9,974,296			9,501,137
Less accumulated depletion	(8,237,186		)	(6,901,997		)
	$	1,737,110		$	2,599,140

Cost incurred in oil and gas property acquisition, exploration, and development activities

The following costs were incurred in oil and gas property acquisition, exploration, and development activities during the years ended December 31, 2012, 2011, and 2010:

	United States		Italy		Total
	(In Thousands)
2012
Property acquisition costs:
Proved properties	$	—	$	—	$	—
Unproved properties	64,123		—		64,123
Exploration costs	268,153		700		268,853
Development costs	398,941		182		399,123
Total costs incurred(1)	$	731,217	$	882	$	732,099
2011
Property acquisition costs:
Proved properties	$	—	$	—	$	—
Unproved properties	204,484		—		204,484
Exploration costs	286,412		1,003		287,415
Development costs	417,469		366		417,835
Total costs incurred(1)	$	908,365	$	1,369	$	909,734
2010
Property acquisition costs:
Proved properties	$	5,823	$	—	$	5,823
Unproved properties	64,593		—		64,593
Exploration costs	190,553		2,386		192,939
Development costs	319,510		317		319,827
Total costs incurred(1)	$	580,479	$	2,703	$	583,182

____________________________________________

(1) Includes amounts relating to changes in estimated asset retirement obligations of $6.1 million, $3.1 million, and $(1.1) million recorded during the years ended December 31, 2012, 2011, and 2010, respectively.

Results of operations for oil and gas producing activities

Results of operations from oil and gas producing activities for the years ended December 31, 2012, 2011, and 2010 are presented below.

	United States			Italy			Total
	(In Thousands, except per Mcfe amounts)
2012
Oil, natural gas, and natural gas liquids sales	$	605,523		$	—		$	605,523
Expenses:
Production expense	156,909			—			156,909
Depletion expense	275,886			—			275,886
Ceiling test write-down of oil and natural gas properties	957,587			34,817			992,404
Accretion of asset retirement obligations	6,487			62			6,549
Income tax	173,437			—			173,437
Total expenses	1,570,306			34,879			1,605,185
Results of operations from oil and gas producing activities	$	(964,783	)	$	(34,879	)	$	(999,662	)
Depletion rate per Mcfe	$	2.28		$	—		$	2.28
2011
Oil, natural gas, and natural gas liquids sales	$	703,531		$	—		$	703,531
Expenses:
Production expense	153,518			—			153,518
Depletion expense	213,866			—			213,866
Accretion of asset retirement obligations	5,973			44			6,017
Income tax expense	89,135			—			89,135
Total expenses	462,492			44			462,536
Results of operations from oil and gas producing activities	$	241,039		$	(44	)	$	240,995
Depletion rate per Mcfe	$	1.75		$	—		$	1.75
2010
Oil, natural gas, and natural gas liquids sales	$	707,692		$	—		$	707,692
Expenses:
Production expense	149,292			—			149,292
Depletion expense	179,656			—			179,656
Accretion of asset retirement obligations	6,057			41			6,098
Income tax expense	134,801			—			134,801
Total expenses	469,806			41			469,847
Results of operations from oil and gas producing activities	$	237,886		$	(41	)	$	237,845
Depletion rate per Mcfe	$	1.31		$	—		$	1.31

Standardized measure of discounted future cash flows relating to proved reserves

Changes in the demand for oil, natural gas, and NGLs, inflation, and other factors make such estimates inherently imprecise and subject to substantial revision. This table should not be construed to be an estimate of the current market value of the Company’s proved reserves. Management does not rely upon the information that follows in making investment decisions.

	December 31, 2012
	United States			Italy		Total
	(In Thousands)
Future oil, natural gas, and natural gas liquids sales	$	6,929,652		$	—	$	6,929,652
Future production costs	(2,166,681		)	—		(2,166,681		)
Future development costs	(1,444,144		)	—		(1,444,144		)
Future income taxes	(142,383		)	—		(142,383		)
Future net cash flows	3,176,444			—		3,176,444
10% annual discount for estimated timing of cash flows	(1,779,347		)	—		(1,779,347		)
Standardized measure of discounted future net cash flows	$	1,397,097		$	—	$	1,397,097

	December 31, 2011
	United States			Italy			Total
	(In Thousands)
Future oil, natural gas, and natural gas liquids sales	$	10,427,716		$	576,364		$	11,004,080
Future production costs	(2,692,993		)	(199,054		)	(2,892,047		)
Future development costs	(2,008,824		)	(18,692		)	(2,027,516		)
Future income taxes	(940,526		)	(130,836		)	(1,071,362		)
Future net cash flows	4,785,373			227,782			5,013,155
10% annual discount for estimated timing of cash flows	(2,499,631		)	(125,783		)	(2,625,414		)
Standardized measure of discounted future net cash flows	$	2,285,742		$	101,999		$	2,387,741

	December 31, 2010
	United States			Italy			Total
	(In Thousands)
Future oil, natural gas, and natural gas liquids sales	$	9,029,839		$	904,902		$	9,934,741
Future production costs	(2,546,332		)	(192,013		)	(2,738,345		)
Future development costs	(1,462,832		)	(17,100		)	(1,479,932		)
Future income taxes	(860,047		)	(260,541		)	(1,120,588		)
Future net cash flows	4,160,628			435,248			4,595,876
10% annual discount for estimated timing of cash flows	(2,195,708		)	(229,722		)	(2,425,430		)
Standardized measure of discounted future net cash flows	$	1,964,920		$	205,526		$	2,170,446

Schedule of changes in standardized measure of discounted future net cash flows

	December 31, 2010
	United States			Italy			Total
	(In Thousands)
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at beginning of year	$	1,328,889		$	225,420		$	1,554,309
Changes resulting from:
Sales of oil, natural gas, and NGL net of production costs	(558,400		)	—			(558,400		)
Net changes in prices and future production costs	603,003			2,040			605,043
Net changes in future development costs	(29,183		)	17,586			(11,597		)
Extensions, discoveries, and improved recovery	445,546			—			445,546
Development costs incurred during the period	134,451			—			134,451
Revisions of previous quantity estimates	48,960			—			48,960
Changes in production rates, timing, and other	115,768			(65,068		)	50,700
Sales of reserves in place	(34,108		)	—			(34,108		)
Purchases of reserves in place	6,530			—			6,530
Accretion of discount on reserves at beginning of year	139,179			33,175			172,354
Net change in income taxes	(235,715		)	(7,627		)	(243,342		)
Total change for year	636,031			(19,894		)	616,137
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at end of year	$	1,964,920		$	205,526		$	2,170,446

	December 31, 2011
	United States			Italy			Total
	(In Thousands)
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at beginning of year	$	1,964,920		$	205,526		$	2,170,446
Changes resulting from:
Sales of oil, natural gas, and NGL net of production costs	(550,013		)	—			(550,013		)
Net changes in prices and future production costs	272,027			(153,313		)	118,714
Net changes in future development costs	(55,725		)	(697		)	(56,422		)
Extensions, discoveries, and improved recovery	667,323			—			667,323
Development costs incurred during the period	231,270			—			231,270
Revisions of previous quantity estimates	(220,389		)	—			(220,389		)
Changes in production rates, timing, and other	(132,714		)	(40,508		)	(173,222		)
Sales of reserves in place	(107,742		)	—			(107,742		)
Purchases of reserves in place	—			—			—
Accretion of discount on reserves at beginning of year	226,354			31,949			258,303
Net change in income taxes	(9,569		)	59,042			49,473
Total change for year	320,822			(103,527		)	217,295
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at end of year	$	2,285,742		$	101,999		$	2,387,741

An analysis of the changes in the standardized measure of discounted future net cash flows during each of the last three years is as follows:

	December 31, 2012
	United States			Italy			Total
	(In Thousands)
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at beginning of year	$	2,285,742		$	101,999		$	2,387,741
Changes resulting from:
Sales of oil, natural gas, and NGL net of production costs	(448,614		)	—			(448,614		)
Net changes in prices and future production costs	(1,226,494		)	(9,264		)	(1,235,758		)
Net changes in future development costs	(4,188		)	—			(4,188		)
Extensions, discoveries, and improved recovery	572,516			—			572,516
Development costs incurred during the period	140,111			—			140,111
Revisions of previous quantity estimates	(203,987		)	(151,578		)	(355,565		)
Changes in production rates, timing, and other	(34,665		)	—			(34,665		)
Sales of reserves in place	(213,683		)	—			(213,683		)
Purchases of reserves in place	—			—			—
Accretion of discount on reserves at beginning of year	259,393			3,923			263,316
Net change in income taxes	270,966			54,920			325,886
Total change for year	(888,645		)	(101,999		)	(990,644		)
Standardized measure of discounted future net cash flows relating to proved oil, natural gas, and NGL reserves, at end of year	$	1,397,097		$	—		$	1,397,097