Shareholder's Equity

12 Months Ended

Dec. 31, 2011

Equity [Abstract]

Shareholder's Equity

Shareholders' Equity

Shares of Class A Common Stock (Common Stock) and Class B Stock, referred to collectively as the "Capital Stock," are entitled to one vote and 95% of one vote, respectively. Each share of Class B Stock is entitled to a $0.50 per share preference in the event of liquidation or dissolution. Further, each share of Class B Stock is convertible into one share of Common Stock at the option of the holder.

Common Stock Offering

In January 2010, the Company issued 8.0 million shares of Class A Common Stock at a price of $29.25 per share. Net proceeds from this offering were $224.3 million. The Company used the net proceeds from the offering to fund a March 2010 acquisition in the Permian and to repay a portion of the outstanding borrowings under the credit facility. See Note 2 to the Financial Statements.

Dividends

The regular annual dividend for 2011 was $0.31 per share. On August 23, 2011, the Company’s Board of Directors approved an increase in the Company’s quarterly dividend of one-half cent per share from $0.075 to $0.08 per share, beginning with the September 2011 dividend. The Company's dividend is payable quarterly in March, June, September and December. Dividend payments are limited by covenants in the (i) credit facility to the greater of $35 million or 75% of net earnings for any four quarter period, and (ii) indentures governing the Company's senior and subordinated indentures to up to $0.36 per share annually (but in no event in excess of $20 million annually) in the event that the Company is not in default, and up to $10 million in the event that the Company is in a non-payment default.