As of February 22, 2012, we had the following outstanding commodity derivative contracts, all of
which settle monthly:
Period
Instrument
Type
Daily
Volumes
Average
Price
(1)
Average
Deferred
Premium
Index
Sales of Crude Oil Production
2012
Feb - Dec
Three-way collars
(2)
40,000 Bbls $100.00 Floor with an $80.00 Limit
-
Brent
$120.00 Ceiling
2013
Jan - Dec
Put options
(3)
17,000 Bbls $90.00 Floor with a $70.00 Limit $6.253 per Bbl Brent
Jan - Dec
Put options
(4)
13,000 Bbls $100.00 Floor with an $80.00 Limit $6.800 per Bbl Brent
Jan - Dec
Three-way collars
(5)
25,000 Bbls $100.00 Floor with an $80.00 Limit
-
Brent
$124.29 Ceiling
Jan - Dec
Three-way collars
(6)
5,000 Bbls $90.00 Floor with a $70.00 Limit
-
Brent
$126.08 Ceiling
2014
Jan - Dec
Put options
(3)
20,000 Bbls $90.00 Floor with a $70.00 Limit $6.555 per Bbl Brent
Sales of Natural Gas Production
2012
Feb - Dec
Put options
(7)
120,000 MMBtu $4.30 Floor with a $3.00 Limit $0.298 per MMBtu Henry Hub
Feb - Dec
Three-way collars
(8)
40,000 MMBtu $4.30 Floor with a $3.00 Limit
-
Henry Hub
$4.86 Ceiling
2013
Jan - Dec
Swap contracts
(9)
110,000 MMBtu
$4.27
-
Henry Hub
2014
Jan - Dec
Swap contracts
(9)
70,000 MMBtu
$4.16
-
Henry Hub
(1) The average strike prices do not reflect any premiums to purchase the put options.
(2) If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the
index price up to a maximum of $20 per barrel. We pay the difference between the index price and $120 per barrel if the
index price is greater than the $120 per barrel ceiling. If the index price is at or above $100 per barrel but at or below $120
per barrel, no cash settlement is required.
(3) If the index price is less than the $90 per barrel floor, we receive the difference between the $90 per barrel floor and the
index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above $90 per barrel, we
pay only the option premium.
(4) If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the
index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above $100 per barrel, we
pay only the option premium.
(5) If the index price is less than the $100 per barrel floor, we receive the difference between the $100 per barrel floor and the
index price up to a maximum of $20 per barrel. We pay the difference between the index price and $124.29 per barrel if the
index price is greater than the $124.29 per barrel ceiling. If the index price is at or above $100 per barrel but at or below
$124.29 per barrel, no cash settlement is required.
(6) If the index price is less than the $90 per barrel floor, we receive the difference between the $90 per barrel floor and the
index price up to a maximum of $20 per barrel. We pay the difference between the index price and $126.08 per barrel if the
index price is greater than the $126.08 per barrel ceiling. If the index price is at or above $90 per barrel but at or below
$126.08 per barrel, no cash settlement is required.
(7) If the index price is less than the $4.30 per MMBtu floor, we receive the difference between the $4.30 per MMBtu floor and
the index price up to a maximum of $1.30 per MMBtu less the option premium. If the index price is at or above $4.30 per
MMBtu, we pay only the option premium.
(8) If the index price is less than the $4.30 per MMBtu floor, we receive the difference between the $4.30 per MMBtu floor and
the index price up to a maximum of $1.30 per MMBtu. We pay the difference between the index price and $4.86 per MMBtu
if the index price is greater than the $4.86 per MMBtu ceiling. If the index price is at or above $4.30 per MMBtu but at or
below $4.86 per MMBtu, no cash settlement is required.
(9) If the index price is less than the fixed price ($4.27 per MMBtu for the 2013 contracts and $4.16 per MMBtu for the 2014
contracts), we receive the difference between the fixed price and the index price. We pay the difference between the index
price and the fixed price if the index price is greater than the fixed price.
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