Supplemental Information

12 Months Ended

Dec. 31, 2011

Note 12. Supplemental Information

Significant Oil and Natural Gas Purchasers

Oil and natural gas sales are made on a day-to-day basis or under short-term contracts at the current area market price. We do not expect that the loss of any purchaser would have a material adverse effect upon our operations. For the years ended December 31, 2011 and 2010, two purchasers accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company LLC (43% in 2011 and 46% in 2010) and Plains Marketing LP (16% in 2011 and 14% in 2010). For the year ended December 31, 2009, two purchasers accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company LLC (52%) and Hunt Crude Oil Supply Co. (21%).

Allowance for Doubtful Accounts

The Company records an allowance for doubtful accounts for receivables that the Company determines to be uncollectible based on the specific identification basis. The allowance for doubtful accounts, which is netted against “Trade and other receivables” on the Consolidated Balance Sheets, was $0.3 million and $0.5 million at December 31, 2011 and 2010, respectively.

Accounts Payable and Accrued Liabilities

		December 31,
In thousands		2011		2010
Accrued exploration and development costs		$	141,868	$	101,758
Accounts payable			99,444		47,660
Accrued interest			60,923		57,077
Accrued compensation			35,861		39,757
Accrued lease operating expenses			24,185		23,557
Deferred Riley Ridge acquisition consideration			15,000		-
Taxes payable			13,455		34,371
Other			38,600		45,888
	Total	$	429,336	$	350,068

Supplemental Cash Flow Information

		Year Ended December 31,
In thousands, except shares		2011		2010		2009
Supplemental cash flow information:
	Cash paid for interest, expensed	$	137,259	$	151,831	$	20,924
	Cash paid for interest, capitalized		60,540		66,815		68,596
	Cash paid for income taxes		45,912		17,960		16,002
	Cash received from income tax refunds		24,677		15,107		15,761
Non-cash investing activities:
	Increase in asset retirement obligations		24,694		53,579		11,268
	Increase (decrease) in liabilities for capital expenditures		74,697		(237)		(76,605)
	Issuance of Denbury common stock in connection with the Encore Merger		-		2,085,681		-
	Vanguard common units received as consideration for sale of ENP		-		93,020		-
	Issuance of Denbury common stock pursuant to Conroe Field acquisition		-		-		168,723