Restructuring Activities

9 Months Ended

Sep. 30, 2011

Restructuring Activities

13.Restructuring Activities

During August 2011, we initiated an organizational restructuring due primarily to our decision to exit the Arkoma Basin and to consolidate certain operations functions to our Houston, Texas location. This restructuring resulted in the termination of approximately 40 employees, most of whom were based out of our Tulsa, Oklahoma office, as well as certain corporate positions in connection with a reallocation of administrative functions. In addition, we expect to close our regional office in Tulsa, Oklahoma during the fourth quarter of 2011.

During 2009 and 2010, we implemented an organization restructuring in connection with our transformation to a pure play development, exploration and production company. The restructuring resulted in the termination of approximately 30 employees and the transfer of certain corporate and division operations functions from our former Kingsport, Tennessee location to our Houston, Texas and Pittsburgh and Radnor, Pennsylvania locations.  We incurred special termination benefit costs, relocation costs and other incremental costs associated with staffing and expanding our office locations. Amounts incurred during the periods ended during 2010 are solely attributable to this restructuring.

The following table summarizes the costs incurred by each restructuring action for the nine months ended September 30, 2011:

	Mid-Continent		2009/2010
	Organization		Organization
	Restructuring		Restructuring		Total
Termination benefits	$	1,451	$	-	$	1,451
Employee and office relocation costs		101		71		172
	$	1,552	$	71	$	1,623

These restructuring charges are included in the General and administrative expenses caption on our Condensed Consolidated Statements of Income and are comprised of the following for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Termination benefits	$	1,451	$	-	$	1,451	$	867
Employee and office relocation costs		102		527		172		1,202
Other incremental costs		-		260		-		865
Facility lease-related charges		-		-		-		3,500
	$	1,553	$	787	$	1,623	$	6,434

The following table summarizes our restructuring-related obligations as of and for the nine months ended September 30:

	2011			2010
Balance at beginning of period	$	64		$	529
Termination benefits accrued		1,451			867
Employee, office and other costs accrued		172			5,567
Cash payments		(420	)		(6,963	)
Balance at end of period	$	1,267		$	-