The following table reflects cash (payments) receipts made with respect to derivative contracts
during the periods presented (in thousands):
Year Ended December 31,
2011
2010
2009
Oil derivatives
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
(60,392) $ (67,917) $
141,297
Unwind of crude oil puts, swaps and collars . . . . . .
(2,935)
-
1,074,361
Natural gas derivatives . . . . . . . . . . . . . . . . . . . . . . . . .
7,915
37,996
308,146
$
(55,412) $ (29,921) $ 1,523,804
Comparison of Year Ended December 31, 2011 to Year Ended December 31, 2010
Oil and gas revenues.
Oil and gas revenues increased $0.5 billion, to $2.0 billion for 2011 from
$1.5 billion for 2010, primarily due to higher average realized oil prices and higher sales volumes
partially offset by lower average realized gas prices.
Oil revenues increased $0.4 billion, to $1.5 billion for 2011 from $1.1 billion for 2010, reflecting
higher average realized prices ($291.6 million) and higher sales volumes ($94.3 million). Our average
realized price for oil increased $17.39 per Bbl to $85.53 per Bbl for 2011 from $68.14 per Bbl for 2010.
The increase was primarily attributable to an increase in the NYMEX oil price, which averaged $95.11
per Bbl in 2011 versus $79.61 per Bbl in 2010. Oil sales volumes increased 3.1 MBbls per day to 49.0
MBbls per day in 2011 from 45.9 MBbls per day in 2010, primarily reflecting increased production from
our Eagle Ford Shale properties and our Panhandle properties divested in December 2011, partially
offset by a production decrease due to the December 2010 divestment of our U.S. Gulf of Mexico
shallow water properties. Excluding the impact of our divestments in 2010 and 2011, production
increased 3.2 MBbls per day in 2011.
Gas revenues increased $28.6 million, to $428.2 million in 2011 from $399.6 million in 2010,
reflecting higher sales volumes ($64.1 million), partially offset by lower average realized prices ($35.5
million). Gas sales volumes increased 44.9 MMcf per day to 299.9 MMcf per day in 2011 from
255.0 MMcf per day in 2010, primarily reflecting increased production from our Haynesville Shale
properties and our Panhandle properties divested in December 2011 partially offset by a production
decrease due to the December 2010 divestment of our U.S. Gulf of Mexico shallow water properties.
Excluding the impact of our divestments in 2010 and 2011, sales increased 73.4 MMcf per day in 2011.
Our average realized price for gas was $3.91 per Mcf in 2011 compared to $4.29 per Mcf in 2010.
Lease operating expenses
. Lease operating expenses increased $72.4 million, to $334.9 million
in 2011 from $262.5 million in 2010, reflecting an increased number of producing wells at our Eagle
Ford Shale properties and our Panhandle properties divested in December 2011 and higher scheduled
repair and maintenance and well workovers primarily at our California properties.
Production and ad valorem taxes.
Production and ad valorem taxes increased $25.8 million, to
$55.2 million in 2011 from $29.4 million in 2010, reflecting increased production taxes in 2011
compared to 2010 due to increased production primarily from our Eagle Ford Shale properties and our
Panhandle properties divested in December 2011 and production tax abatements recorded in 2010.
The increase in ad valorem taxes is primarily at our California properties.
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