Shareholder's Equity

12 Months Ended

Dec. 31, 2012

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 2012 was $0.32 per share. The Company's dividend is payable quarterly in March, June, September and December. Dividend payments are limited by covenants in the credit facility to the greater of $35 million or 75% of net earnings for any four quarter period. In addition, the indentures governing the Company's senior notes contain provisions potentially restricting the Company's ability to declare dividends if certain situations arise; provided that, notwithstanding such restrictions, the Company may declare dividends up to $0.36 per share annually (so long as such distributions do not exceed $20 million annually) in the event that the Company is not in default under the indentures and up to $10 million in the event that the Company is in a non-payment default under the indentures.