Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2011

Derivative Instruments and Hedging Activities

Volumes Under Derivative Contracts Related to Oil and Gas Producing Activities

Production Period	Instrument Type	Average Monthly Volumes	Weighted Average Price
Crude Oil:			(per barrel)
July 2011 — December 2011	Swap	175.8 MBbl	$82.49
July 2011 — December 2011	Collar	53.3 MBbl	$  95.00 — $124.70
October 2011 — December 2011	Collar	12.5 MBbl	$100.00 — $122.80a
January 2012 — December 2012	Collar	75.0 MBbl	$  96.67 — $118.57
January 2012 — December 2012	Collar	91.7 MBbl	$100.00 — $120.25a
Natural Gas:			(per Mcf)
July 2011 — December 2011	Swap	725.8 Mmcf	$4.97
January 2012 — December 2012	Swap	250.0 Mmcf	$4.77
January 2012 — December 2012	Collar	166.7 Mmcf	$4.75 —  $5.09

Derivatives Designated as Hedging Instruments

	As of June 30, 2011			As of December 31, 2010
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
	(in thousands)
Asset Derivatives:
Oil contracts	Other current assets	$	3,381	Other current assets	$	0
Natural gas contracts	Other current assets		2,302	Other current assets		5,324
Natural gas contracts	Other assets, net		32	Other assets, net		0
Oil contracts	Other assets, net		1,816	Other assets, net		0
Interest rate swaps	Other assets, net		0	Other assets, net		0
		$	7,531		$	5,324

	As of June 30, 2011			As of December 31, 2010
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
	(in thousands)
Liability Derivatives:
Oil contracts	Accrued liabilities	$	16,055	Accrued liabilities	$	28,855
Interest rate swaps	Accrued liabilities		1,157	Accrued liabilities		1,751
Oil contracts	Other long-term liabilities		399	Other long-term liabilities		0
Natural gas contracts	Other long-term liabilities		226	Other long-term liabilities		913
Interest rate swaps	Other long-term liabilities		0	Other long-term liabilities		115
		$	17,837		$	31,634

Derivatives Not Designated as Hedging Instruments

	As of June 30, 2011			As of December 31, 2010
	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
	(in thousands)
Asset Derivatives:
Foreign exchange forwards	Other current assets	$	305	Other current assets	$	148
Foreign exchange forwards	Other assets, net		0	Other assets, net		42
		$	305		$	190
Liability Derivatives:
		$	0		$	0

Impact of Derivative Instruments on Accumulated Comprehensive Income (Loss)

		Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
		Three Months Ended June 30,					Six Months Ended June 30,
		2011(1)		2010(1)			2011(1)		2010(1)
		(in thousands)
Oil and natural gas commodity contracts	$	20,720	$	2,575		$	9,942	$	17,205
Interest rate swaps		250		(512	)		461		(1,102	)
	$	20,970	$	2,063		$	10,403	$	16,103

(1)      All unrealized gains (losses) related to our derivatives are expected to be reclassified into earnings by no later than December 31, 2012. The last of our interest swaps will mature in January 2012 and we have foreign exchange forwards and oil and natural gas commodity contracts that have maturities through June and December 2012, respectively.

Gain (Loss) Reclassified from Accumulated OCI into Income

	Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
			Three Months Ended June 30,						Six Months Ended June 30,
			2011			2010			2011			2010
Oil and natural gas commodity contracts	Oil and gas revenue	$	(11,860	)	$	9,663		$	(18,185	)	$	10,464
Interest rate swaps	Net interest expense		(591	)		(469	)		(1,071	)		(887	)
		$	(12,451	)	$	9,194		$	(19,256	)	$	9,577

Impact of Non Designated Derivative Instruments on Income Statement

	Location of Gain (Loss) Recognized in Income on Derivatives		Gain (Loss) Recognized in Income on Derivatives
			Three Months Ended June 30,					Six Months Ended June 30,
			2011		2010			2011		2010
			(in thousands)
Natural gas contracts	Gain on oil and gas derivative contracts	$	0	$	2,482		$	0	$	2,482
Foreign exchange forwards	Other income (expense)		6		(398	)		614		(3,305	)
		$	6	$	2,084		$	614	$	(823	)