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Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 202.85 63.50 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 318.43 63.50 Td (TED BY) Tj ET Q q 0 0 0 rg BT 351.36 63.50 Td ( REFERENCE) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 52.70 Td (Certain information required by Items 10, 1) Tj ET Q q 0 0 0 rg BT 206.38 52.70 Td (1, 12, 13, and 14 of Part III is incorporated by reference from portions of the registrant) Tj ET Q q 0 0 0 rg BT 520.53 52.70 Td (s definitive ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 41.90 Td (proxy statement relating to its ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 159.23 41.90 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 177.23 41.90 Td ( annual meeting of stockholders to be filed within 120 days after ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.67 41.90 Td (December31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 482.39 41.90 Td (.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 356.17 Td (RISK F) Tj ET Q q 0 0 0 rg BT 157.60 356.17 Td (ACT) Tj ET Q q 0 0 0 rg BT 177.42 356.17 Td (ORS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 356.17 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 341.17 Td (ITEM 1B.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 341.17 Td (UNRESOL) Tj ET Q q 0 0 0 rg BT 172.70 341.17 Td (VED ST) Tj ET Q q 0 0 0 rg BT 206.62 341.17 Td (AFF COMMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 341.17 Td (52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 326.17 Td (ITEM 3.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 326.17 Td (LEGAL) Tj ET Q q 0 0 0 rg BT 159.90 326.17 Td ( PROCEEDINGS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 326.17 Td (52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 311.17 Td (ITEM 4.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 311.17 Td (MINE SAFETY) Tj ET Q q 0 0 0 rg BT 192.96 311.17 Td ( DISCLOSURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 311.17 Td (52) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.35 296.18 Td (P) Tj ET Q q 0 0 0 rg BT 305.72 296.18 Td (AR) Tj ET Q q 0 0 0 rg BT 319.81 296.18 Td (T) Tj ET Q q 0 0 0 rg BT 326.30 296.18 Td ( II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 296.17 Td (53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 271.17 Td (ITEM 5.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 281.17 Td (MARKET) Tj ET Q q 0 0 0 rg BT 169.54 281.17 Td ( FOR REGISTRANTS COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 352.15 281.17 Td (, RELA) Tj ET Q q 0 0 0 rg BT 382.15 281.17 Td (TED ST) Tj ET Q q 0 0 0 rg BT 415.58 281.17 Td (OCKHOLDER ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 271.17 Td (MA) Tj ET Q q 0 0 0 rg BT 142.50 271.17 Td (TTERS ) Tj ET Q q 0 0 0 rg BT 175.01 271.17 Td (AND ISSUER PURCHASES OF EQUITY) Tj ET Q q 0 0 0 rg BT 348.55 271.17 Td ( SECURITIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 271.17 Td (53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 256.17 Td (ITEM 6.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 256.17 Td (SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 233.51 256.17 Td ( DA) Tj ET Q q 0 0 0 rg BT 249.35 256.17 Td (T) Tj ET Q q 0 0 0 rg BT 254.65 256.17 Td (A) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 256.17 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 231.17 Td (ITEM 7.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 241.17 Td (MANAGEMENTS DISCUSSION ) Tj ET Q q 0 0 0 rg BT 271.96 241.17 Td (AND ) Tj ET Q q 0 0 0 rg BT 295.57 241.17 Td (ANAL) Tj ET Q q 0 0 0 rg BT 322.34 241.17 Td (YSIS OF) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 231.17 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 181.02 231.17 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 241.01 231.17 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 295.93 231.17 Td (TS OF OPERA) Tj ET Q q 0 0 0 rg BT 357.06 231.17 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 231.17 Td (58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 216.17 Td (Overview of the Company) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 216.17 Td (58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 201.17 Td (Financial Results of Operations and ) Tj ET Q q 0 0 0 rg BT 302.75 201.17 Td (Additional Comparative Data) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 201.17 Td (66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 186.17 Td (Comparison of Financial Results and ) Tj ET Q q 0 0 0 rg BT 308.13 186.17 Td (T) Tj ET Q q 0 0 0 rg BT 313.89 186.17 Td (rends between 2013 and 2012) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 186.17 Td (69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 171.17 Td (Comparison of Financial Results between 2012 and 201) Tj ET Q q 0 0 0 rg BT 381.26 171.17 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 171.17 Td (72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 156.17 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 156.17 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 141.17 Td (Critical ) Tj ET Q q 0 0 0 rg BT 189.44 141.17 Td (Accounting Policies and Estimates) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 141.17 Td (82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 126.17 Td (Accounting Matters) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 126.17 Td (84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 111.17 Td (Environmental) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 111.17 Td (85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.50 96.17 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 204.91 96.17 Td ( Financial Measures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 96.17 Td (86) Tj ET Q endstream endobj 7 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (3) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 252.65 729.61259765625 m 359.339453125 729.61259765625 l s q 0 0 0 rg BT 252.65 731.18 Td (TABLE OF CONTENTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 280.15 716.18 Td (\(Continued\)) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 52.5 699.61259765625 m 79.169921875 699.61259765625 l s q 0 0 0 rg BT 52.50 701.18 Td (ITEM) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 523.95 699.61259765625 m 550.9861328125 699.61259765625 l s q 0 0 0 rg BT 523.95 701.18 Td (PAGE) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 676.17 Td (ITEM 7A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 686.17 Td (QUANTIT) Tj ET Q q 0 0 0 rg BT 171.13 686.17 Td (A) Tj ET Q q 0 0 0 rg BT 177.25 686.17 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 201.96 686.17 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 262.54 686.17 Td (A) Tj ET Q q 0 0 0 rg BT 268.65 686.17 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 363.11 686.17 Td (ABOUT) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 676.17 Td (MARKET) Tj ET Q q 0 0 0 rg BT 169.54 676.17 Td ( RISK \(included within the content of ITEM 7\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 676.17 Td (87) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 661.17 Td (ITEM 8.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 661.17 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 181.02 661.17 Td ( ST) Tj ET Q q 0 0 0 rg BT 194.38 661.17 Td (A) Tj ET Q q 0 0 0 rg BT 200.50 661.17 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 248.55 661.17 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 336.37 661.17 Td (AR) Tj ET Q q 0 0 0 rg BT 349.71 661.17 Td (Y) Tj ET Q q 0 0 0 rg BT 356.56 661.17 Td ( DA) Tj ET Q q 0 0 0 rg BT 372.40 661.17 Td (T) Tj ET Q q 0 0 0 rg BT 377.71 661.17 Td (A) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.50 661.17 Td (88) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 636.17 Td (ITEM 9.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 646.17 Td (CHANGES IN ) Tj ET Q q 0 0 0 rg BT 189.73 646.17 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 299.55 646.17 Td (WITH ) Tj ET Q q 0 0 0 rg BT 327.59 646.17 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 375.13 646.17 Td (ANTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 636.17 Td (ON ) Tj ET Q q 0 0 0 rg BT 143.89 636.17 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 211.95 636.17 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 289.63 636.17 Td ( DISCLOSURE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 636.17 Td (148) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 621.17 Td (ITEM 9A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 621.17 Td (CONTROLS ) Tj ET Q q 0 0 0 rg BT 182.23 621.17 Td (AND PROCEDURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 621.17 Td (148) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 606.17 Td (ITEM 9B.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 606.17 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 208.34 606.17 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 606.17 Td (151) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.40 591.18 Td (P) Tj ET Q q 0 0 0 rg BT 303.77 591.18 Td (AR) Tj ET Q q 0 0 0 rg BT 317.86 591.18 Td (T) Tj ET Q q 0 0 0 rg BT 324.35 591.18 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 591.17 Td (151) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 566.17 Td (ITEM 10.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 576.17 Td (DIRECT) Tj ET Q q 0 0 0 rg BT 163.43 576.17 Td (ORS, EXECUTIVE OFFICERS, ) Tj ET Q q 0 0 0 rg BT 297.61 576.17 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 367.91 576.17 Td (TE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 566.17 Td (GOVERNANCE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 566.17 Td (151) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 551.17 Td (ITEM 1) Tj ET Q q 0 0 0 rg BT 84.07 551.17 Td (1.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 551.17 Td (EXECUTIVE COMPENSA) Tj ET Q q 0 0 0 rg BT 239.45 551.17 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 551.17 Td (151) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 516.17 Td (ITEM 12.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 536.17 Td (SECURITY) Tj ET Q q 0 0 0 rg BT 176.02 536.17 Td ( OWNERSHIP) Tj ET Q q 0 0 0 rg BT 236.48 536.17 Td ( OF CER) Tj ET Q q 0 0 0 rg BT 273.12 536.17 Td (T) Tj ET Q q 0 0 0 rg BT 278.42 536.17 Td (AIN BENEFICIAL) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 526.17 Td (OWNERS ) Tj ET Q q 0 0 0 rg BT 171.67 526.17 Td (AND MANAGEMENT) Tj ET Q q 0 0 0 rg BT 267.87 526.17 Td ( ) Tj ET Q q 0 0 0 rg BT 269.82 526.17 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 318.98 526.17 Td (TED) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 516.17 Td (ST) Tj ET Q q 0 0 0 rg BT 138.99 516.17 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 218.16 516.17 Td (TTERS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 516.17 Td (151) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 491.17 Td (ITEM 13.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 501.17 Td (CER) Tj ET Q q 0 0 0 rg BT 146.35 501.17 Td (T) Tj ET Q q 0 0 0 rg BT 151.66 501.17 Td (AIN RELA) Tj ET Q q 0 0 0 rg BT 196.93 501.17 Td (TIONSHIPS ) Tj ET Q q 0 0 0 rg BT 250.00 501.17 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 299.16 501.17 Td (TED ) Tj ET Q q 0 0 0 rg BT 320.92 501.17 Td (TRANSACTIONS,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 491.17 Td (AND DIRECT) Tj ET Q q 0 0 0 rg BT 187.59 491.17 Td (OR INDEPENDENCE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 491.17 Td (153) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 476.17 Td (ITEM 14.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 476.17 Td (PRINCIP) Tj ET Q q 0 0 0 rg BT 164.93 476.17 Td (AL) Tj ET Q q 0 0 0 rg BT 177.89 476.17 Td ( ) Tj ET Q q 0 0 0 rg BT 179.83 476.17 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 227.37 476.17 Td (ANT) Tj ET Q q 0 0 0 rg BT 247.74 476.17 Td ( FEES ) Tj ET Q q 0 0 0 rg BT 275.53 476.17 Td (AND SER) Tj ET Q q 0 0 0 rg BT 317.23 476.17 Td (VICES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 476.17 Td (153) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.80 461.18 Td (P) Tj ET Q q 0 0 0 rg BT 304.17 461.18 Td (AR) Tj ET Q q 0 0 0 rg BT 318.26 461.18 Td (T) Tj ET Q q 0 0 0 rg BT 324.75 461.18 Td ( IV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 461.17 Td (154) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 446.17 Td (ITEM 15.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.50 446.17 Td (EXHIBITS ) Tj ET Q q 0 0 0 rg BT 175.00 446.17 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 252.68 446.17 Td ( ST) Tj ET Q q 0 0 0 rg BT 266.05 446.17 Td (A) Tj ET Q q 0 0 0 rg BT 272.16 446.17 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 312.53 446.17 Td ( SCHEDULES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.00 446.17 Td (154) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (4) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 288.20 734.60 Td (P) Tj ET Q q 0 0 0 rg BT 294.10 734.60 Td (AR) Tj ET Q q 0 0 0 rg BT 309.60 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 316.74 734.60 Td ( I) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (When we use the terms SM Ener) Tj ET Q q 0 0 0 rg BT 235.48 709.40 Td (gy) Tj ET Q q 0 0 0 rg BT 245.76 709.40 Td (, the Company) Tj ET Q q 0 0 0 rg BT 319.28 709.40 Td (, we, us, or our) Tj ET Q q 0 0 0 rg BT 413.81 709.40 Td (, we are referring to SMEner) Tj ET Q q 0 0 0 rg BT 547.69 709.40 Td (gy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (Company and its subsidiaries unless the context otherwise requires. ) Tj ET Q q 0 0 0 rg BT 352.55 696.20 Td (W) Tj ET Q q 0 0 0 rg BT 362.05 696.20 Td (e have included certain technical terms ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (important to an understanding of our business under ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 282.18 683.00 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 397.60 683.00 Td (erms.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.74 683.00 Td ( ) Tj ET Q q 0 0 0 rg BT 427.04 683.00 Td (Throughout this document we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (make statements that may be classified as forward-looking. Please refer to the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 407.98 669.80 Td (Cautionary Information about ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (Forwar) Tj ET Q q 0 0 0 rg BT 83.21 656.60 Td (d-Looking Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 178.84 656.60 Td ( section of this document for an explanation of these types of statements.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 631.40 Td (ITEMS 1. and 2. BUSINESS and PROPER) Tj ET Q q 0 0 0 rg BT 254.70 631.40 Td (TIES) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 606.15 Td (General) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 580.95 Td ( ) Tj ET Q q 0 0 0 rg BT 88.55 580.95 Td (W) Tj ET Q q 0 0 0 rg BT 98.05 580.95 Td (e are an independent ener) Tj ET Q q 0 0 0 rg BT 210.23 580.95 Td (gy company engaged in the acquisition, exploration, development, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (production of crude oil, natural gas, and natural gas liquids \(also respectively referred to as oil, gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 554.55 Td (NGLs throughout the document\) in onshore North ) Tj ET Q q 0 0 0 rg BT 283.09 554.55 Td (America, with a current focus on oil and liquids-rich resource ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.35 Td (plays. ) Tj ET Q q 0 0 0 rg BT 81.27 541.35 Td (W) Tj ET Q q 0 0 0 rg BT 90.77 541.35 Td (e were founded in 1908 and incorporated in Delaware in 1915. Our initial public of) Tj ET Q q 0 0 0 rg BT 459.57 541.35 Td (fering of common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.15 Td (stock was in December 1992. Our common stock trades on the New ) Tj ET Q q 0 0 0 rg BT 354.46 528.15 Td (Y) Tj ET Q q 0 0 0 rg BT 361.30 528.15 Td (ork Stock Exchange under the ticker symbol ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.95 Td (SM.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 489.75 Td (Our principal of) Tj ET Q q 0 0 0 rg BT 156.67 489.75 Td (fices are located at 1775 Sherman Street, Suite 1200, Denver) Tj ET Q q 0 0 0 rg BT 424.11 489.75 Td (, Colorado 80203, and our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 476.55 Td (telephone number is \(303\) 861-8140.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 451.35 Td (Strategy) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 426.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 426.20 Td (Our business strategy is to focus on the early capture of resource plays in order to create and then enhance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 413.00 Td (value for our stockholders while maintaining a strong balance sheet. ) Tj ET Q q 0 0 0 rg BT 355.27 413.00 Td (W) Tj ET Q q 0 0 0 rg BT 364.77 413.00 Td (e strive to leverage industry-leading ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 399.80 Td (acquisition, exploration, and operations teams to quickly acquire and test new resource play concepts at a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 386.55 Td (reasonable cost. Once we have identified potential value through these ef) Tj ET Q q 0 0 0 rg BT 374.18 386.55 Td (forts, our goal is to develop such potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 373.35 Td (through top-tier operational and project execution, and as appropriate, mitigate our risks by selectively divesting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 360.15 Td (certain assets. ) Tj ET Q q 0 0 0 rg BT 116.39 360.15 Td (W) Tj ET Q q 0 0 0 rg BT 125.89 360.15 Td (e continually examine our portfolio for opportunities to improve the quality of our asset base in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 346.95 Td (order to optimize our returns and preserve our financial strength. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 320.55 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 320.55 Td (At year) Tj ET Q q 0 0 0 rg BT 118.46 320.55 Td (-end 2012, our reserves shifted from being majority gas to majority liquids. ) Tj ET Q q 0 0 0 rg BT 454.81 320.55 Td (As a result, we now ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 307.35 Td (report equivalent volumes and per) Tj ET Q q 0 0 0 rg BT 200.06 307.35 Td (-unit metrics on a BOE basis rather than on an MCFE basis. Prior year volumes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.15 Td (have been conformed to current year presentation.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (Significant Developments in ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 184.14 267.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 206.14 267.75 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 242.55 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 242.55 Td (Resour) Tj ET Q q 0 0 0 rg BT 134.75 242.55 Td (ce Play Delineation and Development Results in Recor) Tj ET Q q 0 0 0 rg BT 376.58 242.55 Td (d Pr) Tj ET Q q 0 0 0 rg BT 395.42 242.55 Td (oduction and Recor) Tj ET Q q 0 0 0 rg BT 481.77 242.55 Td (d Y) Tj ET Q q 0 0 0 rg BT 495.13 242.55 Td (ear) Tj ET Q q 0 0 0 rg BT 509.57 242.55 Td (-End ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 229.35 Td (Pr) Tj ET Q q 0 0 0 rg BT 114.59 229.35 Td (oved Reserve Estimates. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 226.69 229.35 Td (Our estimated proved reserves increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.81 229.35 Td (46 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.93 229.35 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.98 229.35 Td (428.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.73 229.35 Td ( MMBOE at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 216.15 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.44 216.15 Td (, from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.07 216.15 Td (293.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.82 216.15 Td ( MMBOE at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.57 216.15 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.02 216.15 Td (. ) Tj ET Q q 0 0 0 rg BT 397.07 216.15 Td (W) Tj ET Q q 0 0 0 rg BT 406.57 216.15 Td (e added ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.22 216.15 Td (195.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.97 216.15 Td ( MMBOE through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 202.95 Td (drilling activities during the year) Tj ET Q q 0 0 0 rg BT 247.74 202.95 Td (, which was led by our ef) Tj ET Q q 0 0 0 rg BT 358.43 202.95 Td (forts in the Eagle Ford shale in South ) Tj ET Q q 0 0 0 rg BT 525.04 202.95 Td (T) Tj ET Q q 0 0 0 rg BT 530.99 202.95 Td (exas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 189.75 Td (and the Bakken/Three Forks plays in North Dakota. ) Tj ET Q q 0 0 0 rg BT 337.19 189.75 Td (W) Tj ET Q q 0 0 0 rg BT 346.69 189.75 Td (e also achieved record levels of production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 176.55 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 126.00 176.55 Td (. Our average daily production was composed of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.32 176.55 Td (38.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.57 176.55 Td ( MBbl of oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.77 176.55 Td (409.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.52 176.55 Td ( MMcf of gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.84 176.55 Td (26.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 553.09 176.55 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 163.35 Td (MBbl of NGLs for an average equivalent production rate of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.75 163.35 Td (132.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.50 163.35 Td (MBOE per day) Tj ET Q q 0 0 0 rg BT 463.74 163.35 Td (, which was an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 150.15 Td (increase of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.69 150.15 Td (33 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 200.81 150.15 Td ( from an average of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.68 150.15 Td (99.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.93 150.15 Td ( MBOE per day in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.94 150.15 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.94 150.15 Td (. Costs incurred in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.10 150.15 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.10 150.15 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 136.95 Td (drilling and exploration activities and acquisitions remained essentially flat compared to 2012 at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.13 136.95 Td ($1.7 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 123.75 Td (billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.72 123.75 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 209.39 123.75 Td (Cor) Tj ET Q q 0 0 0 rg BT 226.10 123.75 Td (e Operational ) Tj ET Q q 0 0 0 rg BT 290.05 123.75 Td (Ar) Tj ET Q q 0 0 0 rg BT 300.65 123.75 Td (eas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.31 123.75 Td ( below for additional discussion concerning our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.62 123.75 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 549.62 123.75 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 110.55 Td (estimated proved reserves, production, and capital investment.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (5) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 734.40 Td (Divestitur) Tj ET Q q 0 0 0 rg BT 147.59 734.40 Td (e ) Tj ET Q q 0 0 0 rg BT 155.02 734.40 Td (Activity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.61 734.40 Td (. ) Tj ET Q q 0 0 0 rg BT 196.66 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 206.16 734.40 Td (e continuously look to improve the quality of our asset portfolio through the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 721.20 Td (divestiture of non-strategic properties. Our divestiture activity helps to generate cash that can be used ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 708.00 Td (to fund the acquisition or development of assets with higher potential value. During 2013, we sold a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 694.80 Td (total of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.21 694.80 Td (18.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 157.46 694.80 Td ( MMBOE of reserves. ) Tj ET Q q 0 0 0 rg BT 260.52 694.80 Td (W) Tj ET Q q 0 0 0 rg BT 270.03 694.80 Td (e received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.66 694.80 Td ($445.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.44 694.80 Td ( in total cash proceeds at closing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 681.60 Td (\(referred throughout this report as divestiture proceeds\) from these divestitures of non-strategic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 668.40 Td (properties, with the sale of our ) Tj ET Q q 0 0 0 rg BT 240.55 668.40 Td (Anadarko Basin assets in December 2013 being the most significant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 655.20 Td (transaction. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 630.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 630.00 Td (Impairments. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.86 630.00 Td (W) Tj ET Q q 0 0 0 rg BT 177.36 630.00 Td (e recorded impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.71 630.00 Td ($172.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.49 630.00 Td ( for the year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 616.80 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.01 616.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.46 616.80 Td (. ) Tj ET Q q 0 0 0 rg BT 224.76 616.80 Td (The impairments in 2013 were a result of negative engineering revisions on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 603.60 Td (Mississippian limestone assets in our Permian region at the end of the year) Tj ET Q q 0 0 0 rg BT 432.27 603.60 Td (, a plugging and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 590.40 Td (abandonment program of our Olmos interval, dry gas assets in our South ) Tj ET Q q 0 0 0 rg BT 426.72 590.40 Td (T) Tj ET Q q 0 0 0 rg BT 432.67 590.40 Td (exas & Gulf Coast region, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 577.20 Td (and our decision to no longer pursue the development of certain under) Tj ET Q q 0 0 0 rg BT 412.60 577.20 Td (-performing assets during the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 564.00 Td (year) Tj ET Q q 0 0 0 rg BT 122.32 564.00 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 538.80 Td (Outlook for) Tj ET Q q 0 0 0 rg BT 104.61 538.80 Td ( ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 107.36 538.80 Td (2014) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 129.36 538.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 512.40 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 512.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.00 512.40 Td (e enter ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.37 512.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 149.37 512.40 Td ( with a projected $1.9 billion capital program, approximately $1.7 billion of which we expect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 499.20 Td (to allocate to drilling and completion activities with the remaining being allocated to the construction of facilities, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 486.00 Td (land acquisitions, exploration overhead, and geological and geophysical costs. Our proposed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.20 486.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.20 486.00 Td ( capital program ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 472.80 Td (allocates the majority of drilling and completion capital to oil and liquids-rich programs. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 510.15 472.80 Td (Cor) Tj ET Q q 0 0 0 rg BT 526.86 472.80 Td (e ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (Operational ) Tj ET Q q 0 0 0 rg BT 105.83 459.60 Td (Ar) Tj ET Q q 0 0 0 rg BT 116.42 459.60 Td (eas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 131.08 459.60 Td ( below and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 182.10 459.60 Td (Outlook for ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 235.87 459.60 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.87 459.60 Td ( under Part II, Item 7 of this report for additional discussion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 446.40 Td (surrounding our capital plans for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.44 446.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.44 446.40 Td (.) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (6) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Cor) Tj ET Q q 0 0 0 rg BT 68.13 734.60 Td (e Operational ) Tj ET Q q 0 0 0 rg BT 134.73 734.60 Td (Ar) Tj ET Q q 0 0 0 rg BT 147.36 734.60 Td (eas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (Our operations are concentrated in four onshore operating areas in the United States. ) Tj ET Q q 0 0 0 rg BT 463.64 709.40 Td (The following table ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (summarizes estimated proved reserves, PV) Tj ET Q q 0 0 0 rg BT 238.07 696.20 Td (-10 reserve value, production, and costs incurred in oil and gas activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.46 683.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.90 683.00 Td (, for our core operating areas:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 631.5 m 268.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 631.5 m 342.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 631.5 m 416.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 631.5 m 490.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 631.5 m 564.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 575.5 m 268.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 575.5 m 342.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 575.5 m 416.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 575.5 m 490.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 575.5 m 564.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 575.5 m 268.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 575.5 m 342.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 575.5 m 416.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 575.5 m 490.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 575.5 m 564.5 575.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 488.5 m 268.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 488.5 m 342.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 488.5 m 416.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 488.5 m 490.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 488.5 m 564.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 488.5 m 268.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 475.5 m 268.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 473.5 m 268.5 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 488.5 m 342.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 475.5 m 342.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 473.5 m 342.5 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 488.5 m 416.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 475.5 m 416.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 473.5 m 416.5 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 488.5 m 490.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 475.5 m 490.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 473.5 m 490.5 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 488.5 m 564.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 475.5 m 564.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 473.5 m 564.5 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 404.5 m 268.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 404.5 m 342.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 404.5 m 416.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 404.5 m 490.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 404.5 m 564.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 404.5 m 268.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 404.5 m 342.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 404.5 m 416.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 404.5 m 490.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 404.5 m 564.5 404.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 204.70 649.60 Td (South Texas) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 201.50 636.40 Td (& Gulf Coast) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.00 647.40 Td (Rocky) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 283.75 636.40 Td (Mountain) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 360.80 636.40 Td (Permian) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 443.35 647.40 Td (Mid-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 431.45 636.40 Td (Continent) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 511.40 636.40 Td (T) Tj ET Q q 0 0 0 rg BT 517.73 636.40 Td (otal ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 538.20 641.38 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 621.55 Td (Proved Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 607.37 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.75 607.37 Td (50.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.75 607.37 Td (64.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.75 607.37 Td (11.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.25 607.37 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.25 607.37 Td (126.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 593.37 Td (Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.25 593.37 Td (947.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.75 593.37 Td (72.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.75 593.37 Td (26.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.25 593.37 Td (142.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 593.37 Td (1,189.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 579.37 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.25 579.37 Td (102.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 579.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.80 579.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.25 579.37 Td (1.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.25 579.37 Td (103.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 564.42 Td (MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 97.31 569.41 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.25 564.42 Td (311.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.75 564.42 Td (76.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.75 564.42 Td (16.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.75 564.42 Td (25.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.25 564.42 Td (428.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.00 549.37 Td (Relative percentage) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.80 549.37 Td (73) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.80 549.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 549.37 Td (18) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.80 549.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 549.37 Td (4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.80 549.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.30 549.37 Td (6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.80 549.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.30 549.37 Td (100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.80 549.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 535.37 Td (Proved Developed %) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.80 535.37 Td (42) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.80 535.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 535.37 Td (59) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.80 535.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.80 535.37 Td (91) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.80 535.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.80 535.37 Td (78) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.80 535.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 543.80 535.37 Td (49) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.80 535.37 Td (%) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 521.40 Td (PV) Tj ET Q q 0 0 0 rg BT 66.85 521.40 Td (-10 ) Tj ET Q q 0 0 0 rg BT 84.06 521.40 Td (V) Tj ET Q q 0 0 0 rg BT 91.00 521.40 Td (alues \(in millions\) ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 176.87 526.38 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 506.37 Td (Proved Developed) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.00 506.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.75 506.37 Td (1,989.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 506.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.75 506.37 Td (1,306.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.00 506.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.05 506.37 Td (435.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.00 506.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.05 506.37 Td (167.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.00 506.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.75 506.37 Td (3,898.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 492.37 Td (Proved Undeveloped) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.75 492.37 Td (1,122.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 492.37 Td (462.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.55 492.37 Td (26.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.55 492.37 Td (17.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.75 492.37 Td (1,629.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 478.37 Td (Total Proved) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.00 478.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.75 478.37 Td (3,111.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 478.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.75 478.37 Td (1,769.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.00 478.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.05 478.37 Td (462.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.00 478.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.05 478.37 Td (184.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.00 478.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.75 478.37 Td (5,528.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.00 464.37 Td (Relative percentage) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.80 464.37 Td (56) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.80 464.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 464.37 Td (32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.80 464.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 464.37 Td (8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.80 464.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.30 464.37 Td (3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.80 464.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.30 464.37 Td (100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.80 464.37 Td (%) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 450.55 Td (Production) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 436.37 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.25 436.37 Td (5.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.25 436.37 Td (6.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.25 436.37 Td (1.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.25 436.37 Td (0.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 541.75 436.37 Td (13.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 422.37 Td (Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.75 422.37 Td (98.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.25 422.37 Td (5.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.25 422.37 Td (3.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.75 422.37 Td (41.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.25 422.37 Td (149.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 408.37 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.25 408.37 Td (9.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 408.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.80 408.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.25 408.37 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.25 408.37 Td (9.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 393.42 Td (MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 97.31 398.41 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.75 393.42 Td (30.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.25 393.42 Td (7.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.25 393.42 Td (2.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.25 393.42 Td (7.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 541.75 393.42 Td (48.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 377.42 Td (A) Tj ET Q q 0 0 0 rg BT 60.13 377.42 Td (vg. Daily Equivalents) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.00 366.42 Td (\(MBOE/d\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.75 366.42 Td (84.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.75 366.42 Td (20.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.25 366.42 Td (6.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.75 366.42 Td (21.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.25 366.42 Td (132.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.00 351.37 Td (Relative percentage) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.80 351.37 Td (64) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.80 351.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.80 351.37 Td (15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.80 351.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 351.37 Td (5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.80 351.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.80 351.37 Td (16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.80 351.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.30 351.37 Td (100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.80 351.37 Td (%) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 337.55 Td (Costs Incurr) Tj ET Q q 0 0 0 rg BT 112.38 337.55 Td (ed \(in millions\)) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 182.67 342.53 Td (\(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.00 337.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.05 337.37 Td (849.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 337.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 337.37 Td (474.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.00 337.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.05 337.37 Td (275.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.00 337.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.55 337.37 Td (91.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.00 337.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.75 337.37 Td (1,721.1) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.00 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 322.00 Td (T) Tj ET Q q 0 0 0 rg BT 73.41 322.00 Td (otals may not sum or recalculate due to rounding.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.00 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 310.00 Td (The standardized measure PV) Tj ET Q q 0 0 0 rg BT 186.76 310.00 Td (-10 calculation is presented in the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 323.94 310.00 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.04 310.00 Td ( section located in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 298.00 Td (Part II, Item 8 of this report. ) Tj ET Q q 0 0 0 rg BT 185.20 298.00 Td (A) Tj ET Q q 0 0 0 rg BT 191.87 298.00 Td ( reconciliation between the PV) Tj ET Q q 0 0 0 rg BT 314.24 298.00 Td (-10 reserve value and the after tax value is shown in the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 286.00 Td (Reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.54 286.00 Td ( section below) Tj ET Q q 0 0 0 rg BT 160.65 286.00 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.00 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 274.00 Td (Amounts do not sum to total costs incurred due to certain costs relating to our new venture projects being excluded from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 262.00 Td (the regional table above. ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 86.00 236.80 Td ( ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 88.25 236.80 Td (South T) Tj ET Q q 0 0 0 rg BT 123.62 236.80 Td (exas & Gulf Coast Region. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.44 236.80 Td (Operations in our South ) Tj ET Q q 0 0 0 rg BT 358.39 236.80 Td (T) Tj ET Q q 0 0 0 rg BT 364.35 236.80 Td (exas & Gulf Coast region are managed from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 223.60 Td (our of) Tj ET Q q 0 0 0 rg BT 76.38 223.60 Td (fice in Houston, ) Tj ET Q q 0 0 0 rg BT 149.50 223.60 Td (T) Tj ET Q q 0 0 0 rg BT 155.45 223.60 Td (exas. Our current development activities in this region focus primarily on our Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 210.40 Td (shale program. Our acreage position covers a significant portion of the western Eagle Ford shale play) Tj ET Q q 0 0 0 rg BT 498.00 210.40 Td (, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 197.20 Td (acreage in the oil, NGL-rich gas, and dry gas windows of the play) Tj ET Q q 0 0 0 rg BT 339.48 197.20 Td (. ) Tj ET Q q 0 0 0 rg BT 347.12 197.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.01 197.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.45 197.20 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.00 Td (approximately 189,000 net acres in the play) Tj ET Q q 0 0 0 rg BT 242.03 184.00 Td (. ) Tj ET Q q 0 0 0 rg BT 250.08 184.00 Td (W) Tj ET Q q 0 0 0 rg BT 259.59 184.00 Td (e operate approximately 145,000 of these net acres, with a working ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 170.80 Td (interest of 100 percent. ) Tj ET Q q 0 0 0 rg BT 156.71 170.80 Td (W) Tj ET Q q 0 0 0 rg BT 166.21 170.80 Td (e believe we have secured the requisite services, such as gas pipeline takeaway capacity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 157.60 Td (and drilling and completion services, to support our current operated development plans. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 132.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 132.40 Td (e continued to acquire acreage in our new venture play in East ) Tj ET Q q 0 0 0 rg BT 372.02 132.40 Td (T) Tj ET Q q 0 0 0 rg BT 377.97 132.40 Td (exas in 2013, bringing our total acreage ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.20 Td (position to approximately 215,000 net acres. ) Tj ET Q q 0 0 0 rg BT 251.12 119.20 Td (The ) Tj ET Q q 0 0 0 rg BT 270.37 119.20 Td (Austin Chalk, ) Tj ET Q q 0 0 0 rg BT 334.03 119.20 Td (W) Tj ET Q q 0 0 0 rg BT 343.53 119.20 Td (oodbine, and Eagle Ford intervals are present ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.00 Td (across our acreage. ) Tj ET Q q 0 0 0 rg BT 139.28 106.00 Td (W) Tj ET Q q 0 0 0 rg BT 148.78 106.00 Td (e intend to devote capital in 2014 to test a number of geologic concepts in this new venture ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 92.80 Td (play) Tj ET Q q 0 0 0 rg BT 68.22 92.80 Td (.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Nearly all capital deployed in our South ) Tj ET Q q 0 0 0 rg BT 264.50 734.40 Td (T) Tj ET Q q 0 0 0 rg BT 270.45 734.40 Td (exas & Gulf Coast region in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.93 734.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.93 734.40 Td ( tar) Tj ET Q q 0 0 0 rg BT 433.09 734.40 Td (geted our operated Eagle ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (Ford shale program and our exploration program in East ) Tj ET Q q 0 0 0 rg BT 300.60 721.20 Td (T) Tj ET Q q 0 0 0 rg BT 306.55 721.20 Td (exas. Production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.68 721.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.68 721.20 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.71 721.20 Td (65 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.82 721.20 Td ( from the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (18.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.25 708.00 Td (MMBOE produced in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.30 708.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.30 708.00 Td (. Estimated proved reserves at year) Tj ET Q q 0 0 0 rg BT 349.76 708.00 Td (-end ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.06 708.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.06 708.00 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.09 708.00 Td (73 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.20 708.00 Td ( from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.08 708.00 Td (179.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.83 708.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (MMBOE at year) Tj ET Q q 0 0 0 rg BT 123.71 694.80 Td (-end ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.00 694.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.00 694.80 Td (. ) Tj ET Q q 0 0 0 rg BT 176.05 694.80 Td (W) Tj ET Q q 0 0 0 rg BT 185.56 694.80 Td (e added approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.49 694.80 Td (162.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.24 694.80 Td ( MMBOE of estimated proved reserves through drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (activities. ) Tj ET Q q 0 0 0 rg BT 97.76 681.60 Td (The increase in production and proved reserves reflects the success we are having in our Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (shale program and is a result of our ongoing investment and development in this area. Our capital expenditures in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (our South ) Tj ET Q q 0 0 0 rg BT 95.64 655.20 Td (T) Tj ET Q q 0 0 0 rg BT 101.59 655.20 Td (exas & Gulf Coast region increased slightly from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.93 655.20 Td ($848.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.71 655.20 Td ( in 2012 to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.82 655.20 Td ($849.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.60 655.20 Td ( in 2013. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (During 2012 and 2013, we were carried for substantially all of our drilling and completion costs in our outside ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (operated Eagle Ford program pursuant to our ) Tj ET Q q 0 0 0 rg BT 250.70 628.80 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 384.81 628.80 Td (Agreement with Mitsui E&P) Tj ET Q q 0 0 0 rg BT 511.20 628.80 Td ( ) Tj ET Q q 0 0 0 rg BT 513.75 628.80 Td (T) Tj ET Q q 0 0 0 rg BT 519.70 628.80 Td (exas LP) Tj ET Q q 0 0 0 rg BT 554.43 628.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (\(Mitsui\), an indirect subsidiary of Mitsui & Co., Ltd. \(the Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 454.18 615.60 Td (Agreement\). ) Tj ET Q q 0 0 0 rg BT 519.64 615.60 Td (W) Tj ET Q q 0 0 0 rg BT 529.14 615.60 Td (e ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (expect the total carry amount to be exhausted in early 2014. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 384.15 602.40 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 427.64 602.40 Td (Acquisition and Development ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (Agr) Tj ET Q q 0 0 0 rg BT 66.09 589.20 Td (eement) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.24 589.20 Td ( for additional discussion.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 86.00 564.00 Td (Rocky Mountain Region. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.49 564.00 Td (Operations in our Rocky Mountain region are managed from our of) Tj ET Q q 0 0 0 rg BT 502.21 564.00 Td (fice in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (Billings, Montana. Our development activities in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 270.88 550.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.88 550.80 Td ( primarily tar) Tj ET Q q 0 0 0 rg BT 350.72 550.80 Td (geted the Bakken/Three Forks formations in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (North Dakota portion of the ) Tj ET Q q 0 0 0 rg BT 175.36 537.60 Td (W) Tj ET Q q 0 0 0 rg BT 185.30 537.60 Td (illiston Basin in our Gooseneck and Raven/Bear Den areas, where we have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (approximately 79,000 net acres. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 208.23 524.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.23 524.40 Td (, we focused on infill drilling in these areas to optimize development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (through pad drilling. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 484.80 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 484.80 Td (e have an emer) Tj ET Q q 0 0 0 rg BT 161.57 484.80 Td (ging resource play in the Powder River Basin. During the second quarter of 2013, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (closed an acquisition of approximately 40,000 net acres that is prospective for the Frontier and Shannon formations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 458.40 Td (e also traded out of the North DJ Basin and received 33,000 net acres in our core area in the Powder River Basin. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 445.20 Td (e now have approximately 140,000 total net acres in the basin. During 2013, several delineation wells were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (drilled across our acreage position with encouraging results. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 405.60 Td (Capital expenditures in our Rocky Mountain region increased from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.45 405.60 Td ($406.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.23 405.60 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.29 405.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.29 405.60 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.34 405.60 Td ($474.7 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 392.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 95.84 392.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.84 392.40 Td (, lar) Tj ET Q q 0 0 0 rg BT 134.74 392.40 Td (gely as a result of our Powder River Basin acquisition. Estimated proved reserves for the region ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 107.42 379.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 129.42 379.20 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.45 379.20 Td (35 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.57 379.20 Td ( from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.45 379.20 Td (56.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.70 379.20 Td ( MMBOE at year) Tj ET Q q 0 0 0 rg BT 345.16 379.20 Td (-end ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.45 379.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.45 379.20 Td (. During the year) Tj ET Q q 0 0 0 rg BT 466.29 379.20 Td (, we added ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.28 366.00 Td (25.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.53 366.00 Td ( MMBOE of proved reserves in this region through drilling activities. ) Tj ET Q q 0 0 0 rg BT 447.26 366.00 Td (T) Tj ET Q q 0 0 0 rg BT 453.21 366.00 Td (otal regional production ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.58 352.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 87.58 352.80 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.61 352.80 Td (20 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.72 352.80 Td ( from the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.79 352.80 Td (6.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.54 352.80 Td ( MMBOE produced in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.59 352.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.59 352.80 Td (. ) Tj ET Q q 0 0 0 rg BT 369.64 352.80 Td (The increase in production and proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (reserves reflects the continued development activity in our Bakken/Three Forks program.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 86.00 313.20 Td (Permian Region. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.51 313.20 Td (Operations in our Permian region are managed from our of) Tj ET Q q 0 0 0 rg BT 427.64 313.20 Td (fice in Midland, ) Tj ET Q q 0 0 0 rg BT 500.76 313.20 Td (T) Tj ET Q q 0 0 0 rg BT 506.71 313.20 Td (exas. Our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (Permian region covers western ) Tj ET Q q 0 0 0 rg BT 188.48 300.00 Td (T) Tj ET Q q 0 0 0 rg BT 194.43 300.00 Td (exas and southeastern New Mexico. During 2013, we acquired additional acreage ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (in the Midland Basin, bringing our Permian Basin acreage total to approximately 130,000 net acres. Nearly all of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (the aforementioned acreage is located in the Midland Basin, which we believe is prospective for various shale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (tar) Tj ET Q q 0 0 0 rg BT 61.40 260.40 Td (gets, including the ) Tj ET Q q 0 0 0 rg BT 144.91 260.40 Td (W) Tj ET Q q 0 0 0 rg BT 154.41 260.40 Td (olfcamp shale. In the first half of 2013, we executed a delineation program in our ) Tj ET Q q 0 0 0 rg BT 517.09 260.40 Td (T) Tj ET Q q 0 0 0 rg BT 523.42 260.40 Td (redway ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.20 Td (prospect, which focused on a Mississippian limestone tar) Tj ET Q q 0 0 0 rg BT 300.92 247.20 Td (get. ) Tj ET Q q 0 0 0 rg BT 322.00 247.20 Td (As we transitioned to the second half of the year) Tj ET Q q 0 0 0 rg BT 534.47 247.20 Td (, our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.00 Td (focus moved to ) Tj ET Q q 0 0 0 rg BT 120.37 234.00 Td (W) Tj ET Q q 0 0 0 rg BT 129.87 234.00 Td (olfcamp drilling on our Sweetie Peck acreage, where we expect higher and more consistent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td (returns. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 195.60 Td (Our capital expenditures in our Permian region increased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.44 195.60 Td ($275.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 416.22 195.60 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.28 195.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.28 195.60 Td ( compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.45 195.60 Td ($232.5 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.40 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 182.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 95.84 182.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.84 182.40 Td (, due to an increase in expenditures on our drilling program. ) Tj ET Q q 0 0 0 rg BT 387.06 182.40 Td (The region) Tj ET Q q 0 0 0 rg BT 438.07 182.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.10 182.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.10 182.40 Td ( production was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.12 182.40 Td (2.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 553.87 182.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.20 Td (MMBOE, compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.48 169.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.48 169.20 Td ( production of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.55 169.20 Td (1.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.30 169.20 Td ( MMBOE. Estimated proved reserves at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.11 169.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.11 169.20 Td ( were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.98 169.20 Td (16.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.23 169.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.00 Td (MMBOE, which was an increase from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.59 156.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.59 156.00 Td ( year) Tj ET Q q 0 0 0 rg BT 266.05 156.00 Td (-end proved reserves of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.34 156.00 Td (15.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.59 156.00 Td ( MMBOE. ) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (8) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.60 Td (Mid-Continent Region. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.63 734.60 Td (Operations in our Mid-Continent region are managed from our of) Tj ET Q q 0 0 0 rg BT 484.50 734.60 Td (fice in ) Tj ET Q q 0 0 0 rg BT 514.84 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 521.17 734.60 Td (ulsa, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.40 Td (Oklahoma. Our Mid-Continent region manages our assets in the Haynesville shale and ) Tj ET Q q 0 0 0 rg BT 436.55 721.40 Td (W) Tj ET Q q 0 0 0 rg BT 446.05 721.40 Td (oodford shale. ) Tj ET Q q 0 0 0 rg BT 513.87 721.40 Td (Although ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.20 Td (gas prices improved in 2013, we reduced activity in our Mid-Continent region, which resulted in a decrease in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 695.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 695.00 Td ( capital expenditures and production. In December 2013, we closed the previously announced divestiture of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.80 Td (our ) Tj ET Q q 0 0 0 rg BT 66.81 681.80 Td (Anadarko Basin assets, including our interests in the Granite ) Tj ET Q q 0 0 0 rg BT 336.05 681.80 Td (W) Tj ET Q q 0 0 0 rg BT 345.55 681.80 Td (ash interval, and an additional package of non-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.60 Td (operated Cotton ) Tj ET Q q 0 0 0 rg BT 123.12 668.60 Td (V) Tj ET Q q 0 0 0 rg BT 129.84 668.60 Td (alley assets. ) Tj ET Q q 0 0 0 rg BT 187.68 668.60 Td (The divestiture of these two asset packages resulted in decreased year) Tj ET Q q 0 0 0 rg BT 494.11 668.60 Td (-end reserves, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.40 Td (as further discussed below) Tj ET Q q 0 0 0 rg BT 165.67 655.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 630.20 Td (In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.91 630.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 630.20 Td (, we incurred costs of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.05 630.20 Td ($91.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.33 630.20 Td ( in our Mid-Continent region for exploration, development, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 617.00 Td (acquisition activities, compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.65 617.00 Td ($168.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.43 617.00 Td ( incurred in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.88 617.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 343.88 617.00 Td (. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.05 617.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.05 617.00 Td (, our Mid-Continent region) Tj ET Q q 0 0 0 rg BT 508.26 617.00 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.80 Td (production was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 120.26 603.80 Td (7.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.01 603.80 Td ( MMBOE, a decrease from the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.38 603.80 Td (9.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.13 603.80 Td ( MMBOE produced in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.18 603.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.18 603.80 Td (. Estimated proved reserves at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.60 Td (end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.55 590.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.55 590.60 Td ( decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.40 590.60 Td (39 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 197.52 590.60 Td ( from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.40 590.60 Td (41.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.65 590.60 Td ( MMBOE at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.13 590.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.13 590.60 Td (. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 565.35 Td (Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 540.20 Td (The table below presents summary information with respect to the estimates of our proved reserves for each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.95 Td (of the years in the three-year period ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.75 526.95 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.19 526.95 Td (. ) Tj ET Q q 0 0 0 rg BT 333.24 526.95 Td (W) Tj ET Q q 0 0 0 rg BT 342.74 526.95 Td (e engaged R) Tj ET Q q 0 0 0 rg BT 396.67 526.95 Td (yder Scott Company) Tj ET Q q 0 0 0 rg BT 486.39 526.95 Td (, L.P) Tj ET Q q 0 0 0 rg BT 506.25 526.95 Td (. \(R) Tj ET Q q 0 0 0 rg BT 527.19 526.95 Td (yder ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.80 Td (Scott\) to audit at least 80 percent of the PV) Tj ET Q q 0 0 0 rg BT 243.57 513.80 Td (-10 value of our estimated proved reserves in each year presented. ) Tj ET Q q 0 0 0 rg BT 539.95 513.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.55 Td (prices used in the calculation of proved reserve estimates as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.65 500.55 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.09 500.55 Td (, were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.71 500.55 Td ($96.94) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.96 500.55 Td ( per Bbl for oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.35 Td ($3.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 74.75 487.35 Td ( per MMBtu for natural gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.16 487.35 Td ($40.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.41 487.35 Td ( per Bbl for NGLs. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 462.20 Td (Reserve estimates are inherently imprecise and estimates for new discoveries and undeveloped locations are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.95 Td (more imprecise than reserve estimates for producing oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 385.70 448.95 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 439.97 448.95 Td (, these estimates are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.80 Td (expected to change as new information becomes available. ) Tj ET Q q 0 0 0 rg BT 313.69 435.80 Td (The PV) Tj ET Q q 0 0 0 rg BT 346.60 435.80 Td (-10 values shown in the following table are not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.55 Td (intended to represent the current market value of our estimated proved reserves. Neither prices nor costs have been ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.40 Td (escalated. ) Tj ET Q q 0 0 0 rg BT 98.36 409.40 Td (The actual quantities and present values of our estimated proved reserves may be less than we have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.20 Td (estimated. No estimates of our proved reserves have been filed with or included in reports to any federal authority ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 383.00 Td (or agency) Tj ET Q q 0 0 0 rg BT 92.35 383.00 Td (, other than the Securities and Exchange Commission \(SEC\), since the beginning of the last fiscal year) Tj ET Q q 0 0 0 rg BT 552.39 383.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.80 Td (The following table should be read along with the section entitled ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 341.73 369.80 Td (Risk Factors Risks Related to Our Business ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.60 Td (contained herein. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 331.40 Td (Our ability to replace our production is critical to us. Please refer to the reserve replacement terms in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 318.20 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 165.42 318.20 Td (erms) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.81 318.20 Td ( section of this report for information describing how our reserve replacement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 305.00 Td (metrics are calculated. Our reserve replacement percentages are calculated using information from the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 504.75 305.00 Td (Oil and Gas ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 291.80 Td (Reserve Quantities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.39 291.80 Td ( section of ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 181.96 291.80 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.68 291.80 Td ( located in Part II, Item 8 of this report. ) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 38.60 Td (9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 734.40 Td (e believe the concept of reserve replacement as described in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 378.00 734.40 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 493.42 734.40 Td (erms) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.81 734.40 Td ( section of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (this report, as well as permutations that may include other captions of the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 375.03 721.20 Td (Oil and Gas Reserve Quantities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 517.70 721.20 Td (section of ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.71 708.00 Td ( located in Part II, Item 8 of this report, are widely understood by those who ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (make investment decisions related to the oil and gas exploration and production business. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 658.3 m 375.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 658.3 m 390.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 658.3 m 458.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 658.3 m 473.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 658.3 m 544.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 644.3 m 375.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 644.3 m 458.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 644.3 m 544.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 574.3 m 375.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 574.3 m 458.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 574.3 m 544.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 574.3 m 375.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 574.3 m 458.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 574.3 m 544.5 574.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 502.29999999999995 m 375.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 502.29999999999995 m 458.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 502.29999999999995 m 544.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 502.29999999999995 m 375.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 502.29999999999995 m 458.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 502.29999999999995 m 544.5 502.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 430.29999999999995 m 375.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 430.29999999999995 m 458.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 430.29999999999995 m 544.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 430.29999999999995 m 375.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 430.29999999999995 m 458.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 430.29999999999995 m 544.5 430.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 334.29999999999995 m 375.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 334.29999999999995 m 458.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 334.29999999999995 m 544.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 334.29999999999995 m 375.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 321.29999999999995 m 375.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 319.29999999999995 m 375.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 334.29999999999995 m 458.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 321.29999999999995 m 458.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 319.29999999999995 m 458.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 334.29999999999995 m 544.5 334.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 321.29999999999995 m 544.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 319.29999999999995 m 544.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 319.29999999999995 m 375.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 321.29999999999995 m 375.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 319.29999999999995 m 458.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 321.29999999999995 m 458.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 319.29999999999995 m 544.5 319.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 321.29999999999995 m 544.5 321.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 232.29999999999995 m 304.5 232.29999999999995 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 378.55 662.35 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 328.50 648.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 413.00 648.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.80 648.35 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 634.35 Td (Reserve data:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 620.17 Td (Proved developed) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 606.17 Td ( Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.55 606.17 Td (70.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 606.17 Td (58.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 606.17 Td (50.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 592.17 Td ( Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 592.17 Td (569.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 592.17 Td (483.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.05 592.17 Td (451.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 578.17 Td ( NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.55 578.17 Td (43.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 578.17 Td (27.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 578.17 Td (15.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 563.22 Td ( MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 109.81 568.21 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 563.22 Td (208.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 563.22 Td (166.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.05 563.22 Td (140.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 548.17 Td (Proved undeveloped) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 534.17 Td ( Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.55 534.17 Td (56.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 534.17 Td (33.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 534.17 Td (21.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 520.17 Td ( Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 520.17 Td (620.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 520.17 Td (350.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.05 520.17 Td (212.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 506.17 Td ( NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.55 506.17 Td (60.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 506.17 Td (35.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 506.17 Td (12.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 491.22 Td ( MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 109.81 496.21 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 491.22 Td (219.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 491.22 Td (126.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 491.22 Td (69.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 476.17 Td (T) Tj ET Q q 0 0 0 rg BT 58.95 476.17 Td (otal Proved ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 112.11 481.16 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 462.17 Td ( Oil \(MMBbl\) ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 127.84 467.16 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 462.17 Td (126.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 462.17 Td (92.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 462.17 Td (71.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 448.17 Td ( Gas \(Bcf\) ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 111.32 453.16 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.75 448.17 Td (1,189.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 448.17 Td (833.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.05 448.17 Td (664.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 434.17 Td ( NGLs \(MMBbl\) ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 140.67 439.16 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 434.17 Td (103.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.55 434.17 Td (62.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.55 434.17 Td (27.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 419.22 Td ( MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 109.81 424.21 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.05 419.22 Td (428.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.05 419.22 Td (293.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.05 419.22 Td (209.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 404.17 Td (Proved developed reserves %) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.80 404.17 Td (49) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.80 404.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.80 404.17 Td (57) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.80 404.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.80 404.17 Td (67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.80 404.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 390.17 Td (Proved undeveloped reserves %) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.80 390.17 Td (51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.80 390.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.80 390.17 Td (43) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.80 390.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.80 390.17 Td (33) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.80 390.17 Td (%) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 364.40 Td (Reserve value data \(in millions\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 352.17 Td (Proved developed PV-10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.00 352.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 352.17 Td (3,898.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.00 352.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.75 352.17 Td (2,982.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.00 352.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.80 352.17 Td (2,836.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 338.17 Td (Proved undeveloped PV-10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 338.17 Td (1,629.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.05 338.17 Td (866.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.05 338.17 Td (624.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 324.17 Td (Total proved PV-10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.00 324.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 324.17 Td (5,528.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.00 324.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.75 324.17 Td (3,849.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.00 324.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.80 324.17 Td (3,461.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 309.22 Td (Standardized measure of discounted future cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.00 309.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 309.22 Td (4,009.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.00 309.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.75 309.22 Td (3,021.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.00 309.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.80 309.22 Td (2,580.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 279.22 Td (Reserve replacement drilling, excluding revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 279.22 Td (405) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.80 279.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.30 279.22 Td (411) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.80 279.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.30 279.22 Td (310) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.80 279.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 264.17 Td (All in including sales of reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 264.17 Td (380) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.80 264.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.30 264.17 Td (329) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.80 264.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.30 264.17 Td (262) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.80 264.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 250.17 Td (All in excluding sales of reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 250.17 Td (418) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.80 250.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.30 250.17 Td (337) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.80 250.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.30 250.17 Td (317) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.80 250.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 236.17 Td (Reserve life \(years\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.25 236.17 Td (8.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.25 236.17 Td (8.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.25 236.17 Td (7.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 222.87 Td (\(1\) Totals may not sum or recalculate due to rounding.) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 206.80 Td ( ) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following table reconciles the standardized measure of discounted future net cash flows \(GAAP\) to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (PV) Tj ET Q q 0 0 0 rg BT 63.05 721.20 Td (-10 value \(Non-GAAP\) of total proved reserves. ) Tj ET Q q 0 0 0 rg BT 281.26 721.20 Td (The PV) Tj ET Q q 0 0 0 rg BT 314.17 721.20 Td (-10 value measure excludes the impact of income taxes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (Please see the definitions of standardized measure of discounted future net cash flows and PV) Tj ET Q q 0 0 0 rg BT 461.98 708.00 Td (-10 value in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 165.42 694.80 Td (erms) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.81 694.80 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 658.3 m 362.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 658.3 m 377.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 658.3 m 460.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 658.3 m 475.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 658.3 m 561.5 658.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 644.3 m 362.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 644.3 m 460.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 644.3 m 561.5 644.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 564.3 m 362.5 564.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 564.3 m 460.5 564.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 564.3 m 561.5 564.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 524.3 m 362.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 524.3 m 460.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 524.3 m 561.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 524.3 m 362.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 511.3 m 362.5 511.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 509.3 m 362.5 509.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 524.3 m 460.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 511.3 m 460.5 511.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 509.3 m 460.5 509.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 524.3 m 561.5 524.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 511.3 m 561.5 511.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 509.3 m 561.5 509.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 373.05 662.35 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 308.00 648.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 407.50 648.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 507.30 648.35 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 390.20 634.35 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 620.17 Td (Standardized measure of discounted future net) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.00 609.17 Td (cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 609.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.30 609.22 Td (4,009.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.00 609.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.30 609.22 Td (3,021.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 609.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.30 609.22 Td (2,580.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 594.17 Td (Add: 10 percent annual discount, net of income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.00 583.17 Td (taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.30 583.22 Td (2,500.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.30 583.22 Td (1,742.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.30 583.22 Td (1,727.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 568.17 Td (Add: future undiscounted income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.30 568.17 Td (2,722.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.30 568.17 Td (1,609.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.30 568.17 Td (1,740.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 554.17 Td (Undiscounted future net cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.30 554.17 Td (9,232.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.30 554.17 Td (6,372.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.30 554.17 Td (6,048.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 540.17 Td (Less: 10 percent annual discount without tax) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.00 529.17 Td (effect) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.60 529.22 Td (\(3,703.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.30 529.22 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.60 529.22 Td (\(2,523.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.30 529.22 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.60 529.22 Td (\(2,586.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 557.30 529.22 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.00 514.17 Td (PV-10 value) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 514.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.30 514.17 Td (5,528.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.00 514.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.30 514.17 Td (3,849.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 514.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.30 514.17 Td (3,461.2) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 485.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 485.60 Td (oved Undeveloped Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 460.40 Td (Proved undeveloped reserves include those reserves that are expected to be recovered from new wells on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.20 Td (undrilled acreage or from existing wells where a relatively major expenditure is required for recompletion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.00 Td (Undeveloped reserves may be classified as proved reserves on undrilled acreage directly of) Tj ET Q q 0 0 0 rg BT 451.13 434.00 Td (fsetting development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.80 Td (areas that are reasonably certain of production when drilled or where reliable technology provides reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 407.60 Td (certainty of economic producibility) Tj ET Q q 0 0 0 rg BT 204.76 407.60 Td (. Undrilled locations may be classified as having proved undeveloped reserves ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.40 Td (only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.20 Td (unless specific circumstances justify a longer time period. ) Tj ET Q q 0 0 0 rg BT 309.65 381.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.54 381.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.98 381.20 Td (, we had no undrilled proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.00 Td (undeveloped reserves that had been on our books in excess of five years.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 342.80 Td (For locations that are more than one location removed from producing developed locations, we utilized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 329.60 Td (reliable geologic and engineering technology to add approximately 40.4 MMBOE of proved undeveloped reserves ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.40 Td (in the more developed portions of our Eagle Ford shale position and 0.9 MMBOE of proved undeveloped reserves ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.20 Td (in the more developed portions of our Bakken shale position. ) Tj ET Q q 0 0 0 rg BT 324.14 303.20 Td (W) Tj ET Q q 0 0 0 rg BT 333.64 303.20 Td (e incorporated public and proprietary data from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.00 Td (multiple sources to establish geologic continuity of each formation and their producing properties. ) Tj ET Q q 0 0 0 rg BT 490.30 290.00 Td (This included ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.80 Td (seismic data and interpretations \(3-D and micro seismic\), open hole log information \(both vertically and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.60 Td (horizontally collected\), and petrophysical analysis of the log data, mud logs, gas sample analysis, measurements of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.40 Td (total or) Tj ET Q q 0 0 0 rg BT 81.27 250.40 Td (ganic content, thermal maturity) Tj ET Q q 0 0 0 rg BT 218.61 250.40 Td (, test production, fluid properties, and core data as well as significant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.20 Td (statistical performance data yielding predictable and repeatable reserve estimates within certain analogous areas. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.00 Td (These locations were limited to only those areas where both established geologic consistency and suf) Tj ET Q q 0 0 0 rg BT 494.57 224.00 Td (ficient ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 210.80 Td (statistical performance data could be demonstrated to provide reasonably certain results. In all other areas, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 197.60 Td (restricted proved undeveloped locations to immediate of) Tj ET Q q 0 0 0 rg BT 297.83 197.60 Td (fsets to producing wells. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 172.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 172.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 172.40 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.04 172.40 Td (219.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.79 172.40 Td ( MMBOE of proved undeveloped reserves, which is an increase of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.20 Td (93.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.25 159.20 Td ( MMBOE, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.97 159.20 Td (73 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.09 159.20 Td (, over proved undeveloped reserves of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.83 159.20 Td (126.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.58 159.20 Td ( MMBOE at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.33 159.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.77 159.20 Td (. ) Tj ET Q q 0 0 0 rg BT 524.83 159.20 Td (W) Tj ET Q q 0 0 0 rg BT 534.33 159.20 Td (e ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.00 Td (added ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 146.00 Td (151.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.76 146.00 Td ( MMBOE of proved undeveloped reserves through our drilling program, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.06 146.00 Td (105.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.81 146.00 Td ( MMBOE of which were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.80 Td (extensions and discoveries, primarily in our Eagle Ford shale play) Tj ET Q q 0 0 0 rg BT 340.10 132.80 Td (, as well as an additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.99 132.80 Td (46.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.24 132.80 Td ( MMBOE of infill ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.60 Td (proved undeveloped reserves primarily in our assets in the Bakken/Three Forks and Eagle Ford shale plays. ) Tj ET Q q 0 0 0 rg BT 528.38 119.60 Td (A) Tj ET Q q 0 0 0 rg BT 535.71 119.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.40 Td (negative price revision of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.84 106.40 Td (1.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 178.59 106.40 Td ( MMBOE was primarily due to slightly lower reserves in our Eagle Ford shale assets ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.20 Td (in our South ) Tj ET Q q 0 0 0 rg BT 106.94 93.20 Td (T) Tj ET Q q 0 0 0 rg BT 112.90 93.20 Td (exas & Gulf Coast region as a result of our election to reject ethane as allowed under our contracts. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.00 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 80.00 Td (e realize higher overall net value by rejecting ethane. ) Tj ET Q q 0 0 0 rg BT 297.82 80.00 Td (W) Tj ET Q q 0 0 0 rg BT 307.32 80.00 Td (e had a positive performance revision of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.23 80.00 Td (2.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.98 80.00 Td ( MMBOE ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 66.80 Td (primarily related to improved performance in our operated Eagle Ford shale assets. ) Tj ET Q q 0 0 0 rg BT 420.62 66.80 Td (W) Tj ET Q q 0 0 0 rg BT 430.12 66.80 Td (e removed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.98 66.80 Td (2.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.73 66.80 Td ( MMBOE of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 53.60 Td (proved undeveloped reserves from our books as a result of the SEC) Tj ET Q q 0 0 0 rg BT 349.67 53.60 Td (s five-year limitation on the number of years ) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.15 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 38.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (that proved undeveloped reserves may be booked without being developed. During the year) Tj ET Q q 0 0 0 rg BT 455.82 734.40 Td (, we sold a total of 1.0 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (MMBOE proved undeveloped reserves in our Mid-Continent and Rocky Mountain regions. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.37 721.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.37 721.20 Td (, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (converted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.12 708.00 Td (56.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 115.37 708.00 Td (MMBOE of proved undeveloped reserves to proved developed reserves, primarily in our Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (shale and Bakken/Three Forks plays. During 2013, a total of $562.9 million was spent on projects associated with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (reserves that were carried as proved undeveloped reserves at the end of 2012. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 461.71 681.60 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 505.20 681.60 Td (Acquisition ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (and Development ) Tj ET Q q 0 0 0 rg BT 129.83 668.40 Td (Agr) Tj ET Q q 0 0 0 rg BT 145.92 668.40 Td (eement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.82 668.40 Td (for discussion of the carry of certain drilling and completion costs in our outside ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (operated Eagle Ford program. ) Tj ET Q q 0 0 0 rg BT 186.84 655.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.73 655.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.17 655.20 Td (, estimated future development costs relating to our proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (undeveloped reserves were approximately $1.2 billion, $980 million, and $355 million in 2014, 2015, and 2016, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 628.80 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 113.45 603.60 Td (ols Over Pr) Tj ET Q q 0 0 0 rg BT 164.37 603.60 Td (oved Reserves Estimates) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 578.40 Td (Our internal controls over the recording of proved reserves are structured to objectively and accurately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (estimate our reserve quantities and values in compliance with the SEC) Tj ET Q q 0 0 0 rg BT 362.80 565.20 Td (s regulations. Our process for managing and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (monitoring our proved reserves is delegated to our reservoir engineering group, which is managed by Dennis ) Tj ET Q q 0 0 0 rg BT 531.73 552.00 Td (A. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (Zubieta, our ) Tj ET Q q 0 0 0 rg BT 106.31 538.80 Td (V) Tj ET Q q 0 0 0 rg BT 113.59 538.80 Td (ice President - Engineering, Evaluation and ) Tj ET Q q 0 0 0 rg BT 306.95 538.80 Td (A&D, subject to the oversight of our management and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (the ) Tj ET Q q 0 0 0 rg BT 65.58 525.60 Td (Audit Committee of our Board of Directors, as discussed below) Tj ET Q q 0 0 0 rg BT 345.31 525.60 Td (. Mr) Tj ET Q q 0 0 0 rg BT 366.40 525.60 Td (.Zubieta joined us in June 2000 as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (Corporate ) Tj ET Q q 0 0 0 rg BT 96.13 512.40 Td (Acquisition & Divestiture Engineer) Tj ET Q q 0 0 0 rg BT 252.40 512.40 Td (, assumed the role of Reservoir Engineer in February 2003, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (appointed Reservoir Engineering Manager in ) Tj ET Q q 0 0 0 rg BT 250.69 499.20 Td (August 2005, was appointed ) Tj ET Q q 0 0 0 rg BT 378.51 499.20 Td (V) Tj ET Q q 0 0 0 rg BT 385.79 499.20 Td (ice President - Engineering and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (Evaluation in ) Tj ET Q q 0 0 0 rg BT 111.10 486.00 Td (August 2008, and was appointed ) Tj ET Q q 0 0 0 rg BT 257.55 486.00 Td (V) Tj ET Q q 0 0 0 rg BT 264.83 486.00 Td (ice President - Engineering, Evaluation and ) Tj ET Q q 0 0 0 rg BT 458.19 486.00 Td (A&D in October 2012. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (Mr) Tj ET Q q 0 0 0 rg BT 62.84 472.80 Td (. Zubieta was employed by Burlington Resources Oil and Gas Company from June 1988 to May 2000 in various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (operations and reservoir engineering capacities. Mr) Tj ET Q q 0 0 0 rg BT 278.16 459.60 Td (. Zubieta received a Bachelor of Science degree in Petroleum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (Engineering from Montana ) Tj ET Q q 0 0 0 rg BT 172.29 446.40 Td (T) Tj ET Q q 0 0 0 rg BT 178.25 446.40 Td (ech of ) Tj ET Q q 0 0 0 rg BT 207.97 446.40 Td (The University of Montana in May 1988. ) Tj ET Q q 0 0 0 rg BT 395.05 446.40 Td (T) Tj ET Q q 0 0 0 rg BT 401.00 446.40 Td (echnical reviews are performed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (throughout the year by regional staf) Tj ET Q q 0 0 0 rg BT 207.12 433.20 Td (f who evaluate geological and engineering data. ) Tj ET Q q 0 0 0 rg BT 422.86 433.20 Td (This data, in conjunction with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (economic data and our ownership information, is used in making a determination of estimated proved reserve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (quantities. Our regional engineering technical staf) Tj ET Q q 0 0 0 rg BT 272.47 406.80 Td (f do not report directly to Mr) Tj ET Q q 0 0 0 rg BT 398.94 406.80 Td (. Zubieta; they report to either their ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (respective regional technical managers or directly to the regional manager) Tj ET Q q 0 0 0 rg BT 375.27 393.60 Td (. ) Tj ET Q q 0 0 0 rg BT 383.32 393.60 Td (This is intended to promote objective ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (and independent analysis within our regions in the proved reserves estimation process.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (Thir) Tj ET Q q 0 0 0 rg BT 68.55 355.20 Td (d-party Reserves ) Tj ET Q q 0 0 0 rg BT 145.32 355.20 Td (Audit) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 330.00 Td (R) Tj ET Q q 0 0 0 rg BT 92.90 330.00 Td (yder Scott performed an independent audit using its own engineering assumptions but with economic and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (ownership data we provided. R) Tj ET Q q 0 0 0 rg BT 189.47 316.80 Td (yder Scott audits a minimum of 80 percent of our total calculated proved reserve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (PV) Tj ET Q q 0 0 0 rg BT 63.05 303.60 Td (-10 value. In the aggregate, the proved reserve values of our audited properties determined by R) Tj ET Q q 0 0 0 rg BT 487.79 303.60 Td (yder Scott are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (required to be within 10 percent of our proved reserve valuations for the total company) Tj ET Q q 0 0 0 rg BT 432.33 290.40 Td (, as well as for each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (respective region. R) Tj ET Q q 0 0 0 rg BT 140.58 277.20 Td (yder Scott is an independent petroleum engineering consulting firm that has been providing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (petroleum engineering consulting services throughout the world for over seventy years. ) Tj ET Q q 0 0 0 rg BT 439.89 264.00 Td (The technical person at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (R) Tj ET Q q 0 0 0 rg BT 56.90 250.80 Td (yder Scott primarily responsible for overseeing our reserves audit is an ) Tj ET Q q 0 0 0 rg BT 370.62 250.80 Td (Advising Senior ) Tj ET Q q 0 0 0 rg BT 444.97 250.80 Td (V) Tj ET Q q 0 0 0 rg BT 452.26 250.80 Td (ice President who ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (received a Bachelor of Science degree in Chemical Engineering from Purdue University in 1979 and a Master of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (Science Degree in Chemical Engineering from the University of California, Berkeley) Tj ET Q q 0 0 0 rg BT 424.68 224.40 Td (, in 1981. He is a registered ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (Professional Engineer in the State of ) Tj ET Q q 0 0 0 rg BT 213.54 211.20 Td (T) Tj ET Q q 0 0 0 rg BT 219.49 211.20 Td (exas, a member of the Society of Petroleum Engineers, and the Society of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (Petroleum Evaluation Engineers. ) Tj ET Q q 0 0 0 rg BT 200.40 198.00 Td (The R) Tj ET Q q 0 0 0 rg BT 227.15 198.00 Td (yder Scott ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.81 198.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.81 198.00 Td ( report concerning our reserves is included as Exhibit99.1. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 172.80 Td (In addition to a third party audit, our reserves are reviewed by management with the ) Tj ET Q q 0 0 0 rg BT 458.04 172.80 Td (Audit Committee of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (our Board of Directors. Management, which includes our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 392.84 159.60 Td (ficer) Tj ET Q q 0 0 0 rg BT 412.54 159.60 Td (, President and Chief Operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (Of) Tj ET Q q 0 0 0 rg BT 61.41 146.40 Td (ficer) Tj ET Q q 0 0 0 rg BT 81.11 146.40 Td (, Executive ) Tj ET Q q 0 0 0 rg BT 133.14 146.40 Td (V) Tj ET Q q 0 0 0 rg BT 140.43 146.40 Td (ice President and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 300.60 146.40 Td (ficer) Tj ET Q q 0 0 0 rg BT 320.31 146.40 Td (, and Senior ) Tj ET Q q 0 0 0 rg BT 375.71 146.40 Td (V) Tj ET Q q 0 0 0 rg BT 382.99 146.40 Td (ice President - Portfolio Development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (and ) Tj ET Q q 0 0 0 rg BT 68.43 133.20 Td (T) Tj ET Q q 0 0 0 rg BT 74.38 133.20 Td (echnical Services, is responsible for reviewing and verifying that the estimate of proved reserves is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (reasonable, complete, and accurate. ) Tj ET Q q 0 0 0 rg BT 211.66 120.00 Td (The ) Tj ET Q q 0 0 0 rg BT 230.90 120.00 Td (Audit Committee reviews a summary of the final reserves estimate in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (conjunction with R) Tj ET Q q 0 0 0 rg BT 133.89 106.80 Td (yder Scott) Tj ET Q q 0 0 0 rg BT 181.85 106.80 Td (s results and also meets with R) Tj ET Q q 0 0 0 rg BT 317.06 106.80 Td (yder Scott representatives from time to time to discuss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (processes and findings.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (12) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.40 734.60 Td (oduction) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (The following table summarizes the volumes and realized prices of oil, gas, and NGLs produced and sold ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (from properties in which we held an interest during the periods indicated. Realized prices presented below exclude ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (the ef) Tj ET Q q 0 0 0 rg BT 74.54 683.00 Td (fects of derivative contract settlements. ) Tj ET Q q 0 0 0 rg BT 252.00 683.00 Td (Also presented is a summary of related production costs per BOE.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 646.5 m 400.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 646.5 m 414.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 646.5 m 477.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 646.5 m 491.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 646.5 m 557.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 632.5 m 400.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 632.5 m 477.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 632.5 m 557.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 576.5 m 400.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 576.5 m 477.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 576.5 m 557.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 576.5 m 400.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 576.5 m 477.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 576.5 m 557.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 506.5 m 400.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 506.5 m 477.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 506.5 m 557.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 506.5 m 557.5 506.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 436.5 m 400.5 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 436.5 m 477.5 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 436.5 m 557.5 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 358.5 m 400.5 358.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 358.5 m 477.5 358.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 358.5 m 557.5 358.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 363.00 650.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 355.00 636.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 434.50 636.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 513.30 636.55 Td (2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 622.37 Td (Net production) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 608.37 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 608.37 Td (13.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 608.37 Td (10.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.25 608.37 Td (8.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 594.37 Td (Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.25 594.37 Td (149.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.25 594.37 Td (120.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.25 594.37 Td (100.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 580.37 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.25 580.37 Td (9.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.25 580.37 Td (6.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 580.37 Td (3.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 566.37 Td (MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 133.31 571.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 566.37 Td (48.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 566.37 Td (36.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 566.37 Td (28.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 552.37 Td (Eagle Ford net production) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 168.17 557.36 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 538.37 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.25 538.37 Td (5.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.25 538.37 Td (3.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.25 538.37 Td (2.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 524.37 Td (Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 524.37 Td (97.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 524.37 Td (58.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 524.37 Td (32.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 510.37 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.25 510.37 Td (9.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.25 510.37 Td (5.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 510.37 Td (3.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 496.37 Td (MMBOE ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 133.31 501.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 496.37 Td (30.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 496.37 Td (18.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 496.37 Td (11.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 482.37 Td (Average net daily production) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 468.37 Td (Oil \(MBbl per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 468.37 Td (38.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 468.37 Td (28.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 468.37 Td (22.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 454.37 Td (Gas \(MMcf per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.25 454.37 Td (409.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.25 454.37 Td (328.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.25 454.37 Td (274.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 440.37 Td (NGLs \(MBbl per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 440.37 Td (26.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 440.37 Td (16.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 440.37 Td (9.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 426.37 Td (MBOE per day ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 158.96 431.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.25 426.37 Td (132.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 426.37 Td (99.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 426.37 Td (77.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 411.42 Td (Eagle Ford average net daily production) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 229.85 416.41 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 395.42 Td (Oil \(MBbl per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 395.42 Td (14.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.25 395.42 Td (8.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.25 395.42 Td (6.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 379.42 Td (Gas \(MMcf per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.25 379.42 Td (265.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.25 379.42 Td (158.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 379.42 Td (90.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 363.42 Td (NGLs \(MBbl per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 363.42 Td (25.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 363.42 Td (15.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 363.42 Td (8.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 347.42 Td (MBOE per day ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 158.96 352.41 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.75 347.42 Td (83.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.75 347.42 Td (50.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.75 347.42 Td (30.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 331.42 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 316.37 Td (Oil \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 316.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.55 316.37 Td (91.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 316.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.55 316.37 Td (85.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 316.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.55 316.37 Td (88.23) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 302.37 Td (Gas \(per Mcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 302.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 302.37 Td (3.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 302.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.05 302.37 Td (2.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 302.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 302.37 Td (4.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 288.37 Td (NGLs \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 288.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.55 288.37 Td (35.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 288.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.55 288.37 Td (37.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 288.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.55 288.37 Td (53.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 274.37 Td (Per BOE) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 274.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.55 274.37 Td (45.50) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 274.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.55 274.37 Td (40.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 274.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.55 274.37 Td (47.10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 260.37 Td (Production costs per BOE) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 246.37 Td (Lease operating expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 246.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 246.37 Td (4.82) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 246.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.05 246.37 Td (4.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 246.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 246.37 Td (5.30) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 232.37 Td (Transportation costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 232.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 232.37 Td (5.34) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 232.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.05 232.37 Td (3.81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 232.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 232.37 Td (3.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 218.37 Td (Production taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 218.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 218.37 Td (2.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.00 218.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.05 218.37 Td (2.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.00 218.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 218.37 Td (1.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 203.00 Td (\(1\) In each of the years ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.95 203.00 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 164.95 203.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.95 203.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.95 203.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.89 203.00 Td (201) Tj ET Q q 0 0 0 rg BT 226.52 203.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.52 203.00 Td (, total estimated proved reserves attributed to our Eagle Ford shale properties ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 191.00 Td (exceeded 15 percent of our total proved reserves expressed on an equivalent basis. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 179.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 63.61 179.00 Td (Amounts may not recalculate due to rounding.) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (13) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.40 734.60 Td (oductive ) Tj ET Q q 0 0 0 rg BT 103.67 734.60 Td (W) Tj ET Q q 0 0 0 rg BT 114.07 734.60 Td (ells) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 709.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 709.40 Td (, we had working interests in 1,061 gross \(634 net\) productive oil wells and 2,293 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (gross \(916 net\) productive gas wells. Productive wells are either wells producing in commercial quantities or wells ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (mechanically capable of commercial production, but are currently shut-in. Multiple completions in the same ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (wellbore are counted as one well. ) Tj ET Q q 0 0 0 rg BT 202.11 669.80 Td (A) Tj ET Q q 0 0 0 rg BT 209.45 669.80 Td ( well is categorized under state reporting regulations as an oil well or a gas well ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (based on the ratio of gas to oil produced when it first commenced production; such designation may not be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (indicative of current production.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 617.00 Td (Drilling and Completion ) Tj ET Q q 0 0 0 rg BT 167.05 617.00 Td (Activity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 591.80 Td (All of our drilling and completion activities are conducted using independent contractors. ) Tj ET Q q 0 0 0 rg BT 484.74 591.80 Td (W) Tj ET Q q 0 0 0 rg BT 494.25 591.80 Td (e do not own ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.55 Td (any drilling or completion equipment. ) Tj ET Q q 0 0 0 rg BT 222.41 578.55 Td (The following table summarizes the number of operated and non-operated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.35 Td (wells drilled and completed or recompleted on our properties in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.86 565.35 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.86 565.35 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.36 565.35 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.36 565.35 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.49 565.35 Td (201) Tj ET Q q 0 0 0 rg BT 422.58 565.35 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.08 565.35 Td (, excluding non-consented ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.20 Td (projects, active injector wells, salt water disposal wells, and any wells in which we own only a royalty interest:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 515.65 m 280.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 515.65 m 294.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 515.65 m 336.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 515.65 m 350.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 515.65 m 392.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 515.65 m 406.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 515.65 m 448.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 515.65 m 462.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 515.65 m 501.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 515.65 m 514.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 515.65 m 562.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 500.65 m 280.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 500.65 m 294.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 500.65 m 336.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 515.65 m 350.5 515.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 500.65 m 392.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 500.65 m 406.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 500.65 m 448.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 500.65 m 501.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 500.65 m 514.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 500.65 m 562.5 500.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 486.65 m 280.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 486.65 m 336.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 486.65 m 392.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 486.65 m 448.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 486.65 m 501.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 486.65 m 562.5 486.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 430.65 m 280.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 416.65 m 280.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 430.65 m 336.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 416.65 m 336.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 430.65 m 392.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 416.65 m 392.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 430.65 m 448.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 416.65 m 448.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 430.65 m 501.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 416.65 m 501.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 430.65 m 562.5 430.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 416.65 m 562.5 416.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 360.65 m 280.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 346.65 m 280.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 360.65 m 336.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 346.65 m 336.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 360.65 m 392.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 346.65 m 392.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 360.65 m 448.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 346.65 m 448.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 360.65 m 501.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 346.65 m 501.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 360.65 m 562.5 360.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 346.65 m 562.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 346.65 m 280.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 333.65 m 280.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 331.65 m 280.5 331.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 346.65 m 336.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 333.65 m 336.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 331.65 m 336.5 331.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 346.65 m 392.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 333.65 m 392.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 331.65 m 392.5 331.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 346.65 m 448.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 333.65 m 448.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 331.65 m 448.5 331.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 346.65 m 501.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 333.65 m 501.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 331.65 m 501.5 331.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 346.65 m 562.5 346.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 333.65 m 562.5 333.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 331.65 m 562.5 331.65 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 316.00 519.70 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 273.50 505.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.00 505.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 501.30 505.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 242.80 490.70 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 306.75 490.70 Td (Net) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 357.30 490.70 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 418.75 490.70 Td (Net) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 467.80 490.70 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 529.75 490.70 Td (Net) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 476.52 Td (Development wells:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 462.52 Td (Oil) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.50 462.52 Td (154) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.75 462.52 Td (75.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.50 462.52 Td (127) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.75 462.52 Td (47.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.50 462.52 Td (125) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.75 462.52 Td (32.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 448.52 Td (Gas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.50 448.52 Td (443) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.25 448.52 Td (162.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.50 448.52 Td (337) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.25 448.52 Td (124.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.50 448.52 Td (273) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.75 448.52 Td (81.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 434.52 Td (Non-productive) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 434.52 Td (10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.25 434.52 Td (8.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.00 434.52 Td (10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.25 434.52 Td (6.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.00 434.52 Td (11) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 545.25 434.52 Td (4.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.50 420.52 Td (607) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.25 420.52 Td (246.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.50 420.52 Td (474) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.25 420.52 Td (178.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.50 420.52 Td (409) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.25 420.52 Td (117.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 406.52 Td (Exploratory wells:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 392.52 Td (Oil) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.50 392.52 Td (6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.25 392.52 Td (5.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 392.52 Td (9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.25 392.52 Td (6.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.00 392.52 Td (16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 545.25 392.52 Td (6.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 378.52 Td (Gas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.50 378.52 Td (4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.25 378.52 Td (2.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 378.52 Td (8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.25 378.52 Td (6.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.00 378.52 Td (48) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 545.25 378.52 Td (8.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 364.52 Td (Non-productive) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.50 364.52 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.25 364.52 Td (0.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 364.52 Td (8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.25 364.52 Td (6.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.50 364.52 Td (3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 545.25 364.52 Td (1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 350.52 Td (11) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.25 350.52 Td (7.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.00 350.52 Td (25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.75 350.52 Td (20.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.00 350.52 Td (67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.75 350.52 Td (15.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 336.52 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.50 336.52 Td (618) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.25 336.52 Td (254.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.50 336.52 Td (499) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.25 336.52 Td (198.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.50 336.52 Td (476) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.25 336.52 Td (133.0) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 307.95 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 307.95 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 307.95 Td ( productive well is an exploratory) Tj ET Q q 0 0 0 rg BT 240.77 307.95 Td (, development, or extension well that is producing or capable of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.80 Td (commercial production of oil, gas, and/or NGLs. ) Tj ET Q q 0 0 0 rg BT 269.65 294.80 Td (A) Tj ET Q q 0 0 0 rg BT 276.98 294.80 Td ( non-productive well, frequently referred to within the industry ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 281.55 Td (as a dry hole, is an exploratory) Tj ET Q q 0 0 0 rg BT 184.60 281.55 Td (, development, or extension well that proves to be incapable of producing oil, gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 268.35 Td (and/or NGLs in commercial quantities.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 243.15 Td (As defined by the SEC, an exploratory well is a well drilled to find a new field or to find a new reservoir in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 229.95 Td (a field previously found to be productive of oil or gas in another reservoir) Tj ET Q q 0 0 0 rg BT 373.50 229.95 Td (. ) Tj ET Q q 0 0 0 rg BT 381.14 229.95 Td (A) Tj ET Q q 0 0 0 rg BT 388.48 229.95 Td ( development well is a well drilled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 203.60 Td (productive and is part of a development project, which is defined as the means by which petroleum resources are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 190.35 Td (brought to economically producible status. ) Tj ET Q q 0 0 0 rg BT 243.18 190.35 Td (The number of wells drilled refers to the number of wells completed at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 177.20 Td (any time during the respective year) Tj ET Q q 0 0 0 rg BT 204.41 177.20 Td (, regardless of when drilling was initiated. Completion refers to the installation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 163.95 Td (of equipment for production of oil, gas, and/or NGLs, or in the case of a dry well, the reporting to the appropriate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 150.80 Td (authority that the well has been plugged and abandoned.) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (14) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (In addition to the wells drilled and completed in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.15 734.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.15 734.40 Td ( \(included in the table above\), as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.06 734.40 Td (February12, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 721.20 Td (, we were participating in the drilling of 34 gross wells. ) Tj ET Q q 0 0 0 rg BT 321.08 721.20 Td (W) Tj ET Q q 0 0 0 rg BT 330.58 721.20 Td (e operate 18 of these wells on a gross basis \(15 on a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (net basis\) and other companies operate the remaining 16 gross wells \(three on a net basis\). ) Tj ET Q q 0 0 0 rg BT 452.40 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 462.34 708.00 Td (ith respect to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (completion activity) Tj ET Q q 0 0 0 rg BT 134.51 694.80 Td (, at such date, there were 284 gross wells in which we have an interest that were being ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (completed. ) Tj ET Q q 0 0 0 rg BT 103.87 681.60 Td (W) Tj ET Q q 0 0 0 rg BT 113.37 681.60 Td (e operate 35 of these completion activities on a gross basis \(31 on a net basis\), and were participating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (in 249 gross \(45 net\) non-operated completion activities. Substantially all of these operations relate to the drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (and completion of wells during the primary term of the respective oil and gas lease or leases.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (Acr) Tj ET Q q 0 0 0 rg BT 67.51 630.00 Td (eage) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 604.80 Td (The following table sets forth the gross and net acres of developed and undeveloped oil and gas leasehold, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (fee properties, and mineral servitudes held by us as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.79 591.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.23 591.60 Td (. Undeveloped acreage includes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (leasehold interests that contain proved undeveloped reserves.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 541.9 m 241.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241.5 541.9 m 251.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 541.9 m 305.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 541.9 m 369.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 541.9 m 379.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 541.9 m 433.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 541.9 m 497.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 541.9 m 507.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 541.9 m 561.5 541.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 527.9 m 241.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 527.9 m 305.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 527.9 m 369.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 527.9 m 433.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 527.9 m 497.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 527.9 m 561.5 527.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 415.9 m 241.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 415.9 m 305.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 415.9 m 369.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 415.9 m 433.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 415.9 m 497.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 415.9 m 561.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 415.9 m 241.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 401.9 m 241.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 415.9 m 305.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 401.9 m 305.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 415.9 m 369.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 401.9 m 369.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 415.9 m 433.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 401.9 m 433.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 415.9 m 497.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 401.9 m 497.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 415.9 m 561.5 415.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 401.9 m 561.5 401.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 373.9 m 241.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 373.9 m 305.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 373.9 m 369.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 373.9 m 433.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 373.9 m 497.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 373.9 m 561.5 373.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 359.9 m 241.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 346.9 m 241.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 344.9 m 241.5 344.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 359.9 m 305.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 346.9 m 305.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 344.9 m 305.5 344.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 359.9 m 369.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 346.9 m 369.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 344.9 m 369.5 344.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 359.9 m 433.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 346.9 m 433.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 344.9 m 433.5 344.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 359.9 m 497.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 346.9 m 497.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 344.9 m 497.5 344.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 359.9 m 561.5 359.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 346.9 m 561.5 346.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 344.9 m 561.5 344.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 201.60 545.95 Td (Developed ) Tj ET Q q 0 0 0 rg BT 252.63 545.95 Td (Acr) Tj ET Q q 0 0 0 rg BT 270.14 545.95 Td (es ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 282.05 550.93 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 323.45 545.95 Td (Undeveloped ) Tj ET Q q 0 0 0 rg BT 386.71 545.95 Td (Acr) Tj ET Q q 0 0 0 rg BT 404.22 545.95 Td (es ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 416.13 550.93 Td (\(2\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 489.95 545.95 Td (Total) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 200.30 531.95 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.75 531.95 Td (Net) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 328.30 531.95 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 397.75 531.95 Td (Net) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 456.30 531.95 Td (Gross) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 525.75 531.95 Td (Net) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 517.77 Td (Louisiana) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 517.77 Td (51,093) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 517.77 Td (19,212) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 517.77 Td (32,559) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 517.77 Td (30,081) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 517.77 Td (83,652) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.00 517.77 Td (49,293) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 503.77 Td (Montana) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 503.77 Td (56,214) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 503.77 Td (38,050) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.50 503.77 Td (278,481) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.50 503.77 Td (191,583) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 503.77 Td (334,695) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.50 503.77 Td (229,633) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 489.77 Td (Nevada) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 226.30 489.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.30 489.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.50 489.77 Td (197,634) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.50 489.77 Td (197,634) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 489.77 Td (197,634) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.50 489.77 Td (197,634) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 475.77 Td (North Dakota) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.50 475.77 Td (155,150) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.50 475.77 Td (107,170) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 475.77 Td (68,960) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 475.77 Td (37,049) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 475.77 Td (224,110) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.50 475.77 Td (144,219) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 461.77 Td (Oklahoma) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 461.77 Td (45,550) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 461.77 Td (26,034) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 461.77 Td (47,655) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 461.77 Td (22,932) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 461.77 Td (93,205) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.00 461.77 Td (48,966) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 447.77 Td (Texas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.50 447.77 Td (270,403) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.50 447.77 Td (156,579) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.50 447.77 Td (724,997) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.50 447.77 Td (432,246) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 447.77 Td (995,400) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.50 447.77 Td (588,825) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 433.77 Td (Wyoming) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 433.77 Td (49,604) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 433.77 Td (23,695) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.50 433.77 Td (329,663) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.50 433.77 Td (244,701) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 433.77 Td (379,267) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.50 433.77 Td (268,396) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 419.77 Td (Other ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 80.80 424.76 Td (\(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.50 419.77 Td (4,872) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.50 419.77 Td (2,451) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 419.77 Td (55,736) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 419.77 Td (40,955) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 419.77 Td (60,608) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.00 419.77 Td (43,406) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.50 405.77 Td (632,886) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.50 405.77 Td (373,191) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.25 405.77 Td (1,735,685) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.25 405.77 Td (1,197,181) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.25 405.77 Td (2,368,571) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.25 405.77 Td (1,570,372) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 391.77 Td (Louisiana Fee Properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 391.77 Td (10,499) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 391.77 Td (10,499) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 391.77 Td (14,415) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 391.77 Td (14,415) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 391.77 Td (24,914) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.00 391.77 Td (24,914) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 377.77 Td (Louisiana Mineral Servitudes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.50 377.77 Td (7,426) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.50 377.77 Td (4,217) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.50 377.77 Td (4,528) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.50 377.77 Td (4,166) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 377.77 Td (11,954) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.50 377.77 Td (8,383) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.00 363.77 Td (17,925) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 363.77 Td (14,716) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 363.77 Td (18,943) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.00 363.77 Td (18,581) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 363.77 Td (36,868) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.00 363.77 Td (33,297) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 349.77 Td (T) Tj ET Q q 0 0 0 rg BT 94.95 349.77 Td (otal ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 114.20 354.76 Td (\(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.50 349.77 Td (650,811) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.50 349.77 Td (387,907) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.25 349.77 Td (1,754,628) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.25 349.77 Td (1,215,762) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.25 349.77 Td (2,405,439) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.25 349.77 Td (1,603,669) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.40 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 334.40 Td (Developed acreage is acreage assigned to producing wells for the state approved spacing unit for the producing formation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 322.40 Td (in each respective state. Our developed acreage that includes multiple formations with dif) Tj ET Q q 0 0 0 rg BT 428.80 322.40 Td (ferent well spacing requirements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 310.40 Td (may be considered undeveloped for certain formations, but has been included only as developed acreage in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 298.40 Td (presentation above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.40 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 286.40 Td (Undeveloped acreage is acreage on which wells have not been drilled or completed to a point that would permit the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 274.40 Td (production of commercial quantities of oil, gas, and/or NGLs regardless of whether such acreage contains estimated net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 262.40 Td (proved reserves.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 250.40 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 250.40 Td (Includes interests in ) Tj ET Q q 0 0 0 rg BT 149.93 250.40 Td (Arkansas, Colorado, Kansas, Illinois, Mississippi, Nebraska, New Mexico, Pennsylvania, and Utah. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 238.40 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 238.40 Td (As of the filing date of this report, we had 72,858, 174,694, and 170,314net acres scheduled to expire by ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.68 238.40 Td (December31, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 226.40 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.00 226.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 93.00 226.40 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 113.00 226.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 134.94 226.40 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 154.94 226.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 207.60 226.40 Td (, if production is not established or we take no other action to extend the terms of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 214.40 Td (applicable lease or leases. ) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (15) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Delivery Commitments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 709.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 709.40 Td (, we had gathering, processing, and transportation through-put commitments with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (various parties that require us to deliver fixed, determinable quantities of production over specified time frames. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 683.00 Td (e have an aggregate minimum commitment to deliver ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.76 683.00 Td (1,807) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.51 683.00 Td ( Bcf of natural gas and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.14 683.00 Td (53) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.14 683.00 Td ( MMBbl of oil. ) Tj ET Q q 0 0 0 rg BT 508.67 683.00 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (contracts expire at various dates through 2023. ) Tj ET Q q 0 0 0 rg BT 260.88 669.80 Td (W) Tj ET Q q 0 0 0 rg BT 270.38 669.80 Td (e are required to make periodic deficiency payments for any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (shortfalls in delivering the minimum volume commitments. If a shortfall in the minimum volume commitment for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (natural gas is projected, we have rights under certain contracts to arrange for) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 386.89 648.38 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.67 643.40 Td (third party gas to be delivered, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.20 Td (such volume will count toward our minimum volume commitment. Our current production is insuf) Tj ET Q q 0 0 0 rg BT 487.59 630.20 Td (ficient to of) Tj ET Q q 0 0 0 rg BT 538.71 630.20 Td (fset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 617.00 Td (these aggregate contractual liabilities, but we expect to fulfill the delivery commitments with production from the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.80 Td (future development of our proved undeveloped reserves and from the future development of resources not yet ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.60 Td (characterized as proved reserves or through arranging for the delivery of third party gas. ) Tj ET Q q 0 0 0 rg BT 443.20 590.60 Td (Therefore, we currently do ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.40 Td (not expect any significant shortfalls.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 552.15 Td (Major) Tj ET Q q 0 0 0 rg BT 79.73 552.15 Td ( Customers) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 525.75 Td (During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 525.75 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.91 525.75 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.62 525.75 Td (three) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.61 525.75 Td ( major customers, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.86 525.75 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.75 525.75 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.64 525.75 Td (Anadarko Petroleum Corporation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.88 525.75 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.55 Td (\(Anadarko\), and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.59 512.55 Td (Plains Marketing LP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.43 512.55 Td (, which accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.75 512.55 Td (26 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.87 512.55 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.37 512.55 Td (16 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.49 512.55 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.62 512.55 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.74 512.55 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.35 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 499.35 Td (, of our total production revenue. During the third quarter of 2013, we entered into various marketing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.20 Td (agreements with ) Tj ET Q q 0 0 0 rg BT 124.53 486.20 Td (Anadarko, whereby we are subject to certain gathering, transportation, and processing through-put ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.95 Td (commitments for up to 10 years pursuant to each contract. ) Tj ET Q q 0 0 0 rg BT 311.28 472.95 Td (While ) Tj ET Q q 0 0 0 rg BT 340.30 472.95 Td (Anadarko is the first purchaser under these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (contracts, we also share with ) Tj ET Q q 0 0 0 rg BT 178.91 459.75 Td (Anadarko the risk of non-performance by ) Tj ET Q q 0 0 0 rg BT 364.01 459.75 Td (Anadarko) Tj ET Q q 0 0 0 rg BT 410.44 459.75 Td (s counterparty purchasers. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.55 Td (Several of ) Tj ET Q q 0 0 0 rg BT 97.04 446.55 Td (Anadarko) Tj ET Q q 0 0 0 rg BT 143.47 446.55 Td (s counterparty purchasers under these contracts are also direct purchasers of products produced ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.35 Td (by us.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.95 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 406.95 Td (During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 406.95 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.91 406.95 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.62 406.95 Td (two) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.12 406.95 Td ( major customers, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.38 406.95 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.26 406.95 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.64 406.95 Td (Plains Marketing LP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.48 406.95 Td (, which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.80 Td (accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.20 393.80 Td (21 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.31 393.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.69 393.80 Td (13 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.81 393.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 350.74 393.80 Td (, of our total production revenue. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.25 393.80 Td (201) Tj ET Q q 0 0 0 rg BT 551.34 393.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.84 393.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.55 Td (we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 84.21 380.55 Td (one) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.09 380.55 Td ( major customer) Tj ET Q q 0 0 0 rg BT 171.13 380.55 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.63 380.55 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.51 380.55 Td (, which accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.84 380.55 Td (18 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 508.95 380.55 Td ( of our total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 367.40 Td (production revenue. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 340.95 Td (Employees and Office Space) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 315.75 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.39 315.75 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.35 315.75 Td (, we had 793 full-time employees. None of our employees are subject to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 302.55 Td (collective bar) Tj ET Q q 0 0 0 rg BT 108.85 302.55 Td (gaining agreement, and we consider our relations with our employees to be good. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 277.35 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 277.35 Td (The following table summarizes the approximate square footage of of) Tj ET Q q 0 0 0 rg BT 392.28 277.35 Td (fice space leased or owned by us, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 264.15 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 64.16 264.15 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 150.61 264.15 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 229.64999999999998 m 368 229.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 229.64999999999998 m 495 229.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 101.64999999999998 m 495 101.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 88.64999999999998 m 495 88.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 86.64999999999998 m 495 86.64999999999998 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 187.70 234.55 Td (Location) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.85 243.70 Td (Approximate Square) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 412.35 232.70 Td (Footage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 52.50 219.55 Td (Leased Office Space:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 204.52 Td (Denver, CO) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 204.52 Td (95,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 189.52 Td (Houston, TX) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 189.52 Td (62,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 175.52 Td (Tulsa, OK) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 175.52 Td (56,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 161.52 Td (Midland, TX) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 161.52 Td (22,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 147.52 Td (Billings, MT) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 147.52 Td (44,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 133.52 Td (Williston & Watford City, ND) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 133.52 Td (7,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 119.52 Td (Casper, WY) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 119.52 Td (4,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.50 105.52 Td (Huntsville, TX) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 105.52 Td (3,000) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 52.50 91.70 Td (Total Leased Office Space) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.05 91.52 Td (293,000) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 6.60 Td (16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 734.90 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 734.90 Td (In addition to the leased of) Tj ET Q q 0 0 0 rg BT 202.91 734.90 Td (fice space in the table above, we own a total of 24,000 square feet of of) Tj ET Q q 0 0 0 rg BT 516.39 734.90 Td (fice space ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.70 Td (across all four of our operating regions.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 696.50 Td (T) Tj ET Q q 0 0 0 rg BT 57.14 696.50 Td (itle to Pr) Tj ET Q q 0 0 0 rg BT 97.86 696.50 Td (operties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 671.30 Td (Substantially all of our interests are held pursuant to oil and gas leases from third parties. ) Tj ET Q q 0 0 0 rg BT 482.52 671.30 Td (A) Tj ET Q q 0 0 0 rg BT 489.86 671.30 Td ( title opinion is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (usually obtained prior to the commencement of initial drilling operations. ) Tj ET Q q 0 0 0 rg BT 378.50 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 388.00 658.10 Td (e have obtained title opinions or have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.90 Td (conducted other title review on substantially all of our producing properties and believe that we have satisfactory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.70 Td (title to such properties in accordance with standards generally accepted in the oil and gas industry) Tj ET Q q 0 0 0 rg BT 479.06 631.70 Td (. Most of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.50 Td (producing properties are subject to mortgages securing indebtedness under our credit facility) Tj ET Q q 0 0 0 rg BT 457.07 618.50 Td (, royalty and overriding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 605.30 Td (royalty interests, liens for current taxes, and other burdens that we believe do not materially interfere with the use ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (of, or af) Tj ET Q q 0 0 0 rg BT 84.92 592.10 Td (fect the value of, such properties. ) Tj ET Q q 0 0 0 rg BT 236.53 592.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.03 592.10 Td (e typically perform only minimal title investigation before acquiring ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.90 Td (undeveloped leasehold acreage.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 553.70 Td (Seasonality) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 528.50 Td (Generally) Tj ET Q q 0 0 0 rg BT 128.65 528.50 Td (, but not always, the demand and price levels for natural gas increase during winter months and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 515.30 Td (decrease during summer months. ) Tj ET Q q 0 0 0 rg BT 200.71 515.30 Td (T) Tj ET Q q 0 0 0 rg BT 206.66 515.30 Td (o lessen seasonal demand fluctuations, pipelines, utilities, local distribution ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (companies, and industrial users utilize natural gas storage facilities and forward purchase some of their anticipated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.90 Td (winter requirements during the summer) Tj ET Q q 0 0 0 rg BT 223.51 488.90 Td (. However) Tj ET Q q 0 0 0 rg BT 271.64 488.90 Td (, increased summertime demand for electricity can place ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.70 Td (increased demand on storage volumes. Demand for oil and heating oil is also generally higher in the winter and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.50 Td (summer driving season, although oil prices are impacted more significantly by global supply and demand. Seasonal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 449.30 Td (anomalies, such as mild winters, sometimes lessen these fluctuations. ) Tj ET Q q 0 0 0 rg BT 360.49 449.30 Td (The impact of seasonality on oil has been ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (somewhat magnified by overall supply and demand economics attributable to the narrow mar) Tj ET Q q 0 0 0 rg BT 460.96 436.10 Td (gin of worldwide ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.90 Td (production capacity in excess of existing worldwide demand for oil. Certain of our drilling, completion, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (operations are also subject to seasonal limitations. Seasonal weather conditions and lease stipulations adversely ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.50 Td (af) Tj ET Q q 0 0 0 rg BT 58.35 396.50 Td (fect our ability to conduct drilling activities in some of the areas where we operate. See ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 447.49 396.50 Td (Risk Factors - Risks ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 383.30 Td (Related to Our Business ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.38 383.30 Td (for additional discussion.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Competition) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 332.90 Td (The oil and gas industry is intensely competitive, particularly with respect to acquiring prospective oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.70 Td (natural gas properties. ) Tj ET Q q 0 0 0 rg BT 152.74 319.70 Td (W) Tj ET Q q 0 0 0 rg BT 162.24 319.70 Td (e believe our leasehold position provides a foundation for development activities that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 306.50 Td (expect to fuel our future growth. Our competitive position also depends on our geological, geophysical, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 293.30 Td (engineering expertise, as well as our financial resources. ) Tj ET Q q 0 0 0 rg BT 303.62 293.30 Td (W) Tj ET Q q 0 0 0 rg BT 313.12 293.30 Td (e believe the location of our acreage; our exploration, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (drilling, operational, and production expertise; available technologies; our financial resources and expertise; and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.90 Td (experience and knowledge of our management and technical teams enable us to compete in our core operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.70 Td (areas. However) Tj ET Q q 0 0 0 rg BT 120.72 253.70 Td (, we face intense competition from a substantial number of major and independent oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.50 Td (companies, which in some cases have lar) Tj ET Q q 0 0 0 rg BT 230.32 240.50 Td (ger technical staf) Tj ET Q q 0 0 0 rg BT 305.25 240.50 Td (fs and greater financial and operational resources than we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 227.30 Td (do. Many of these companies not only engage in the acquisition, exploration, development, and production of oil ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (and natural gas reserves, but also have gathering, processing or refining operations, market refined products, own ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.90 Td (drilling rigs or other equipment, or generate electricity) Tj ET Q q 0 0 0 rg BT 288.76 200.90 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 175.70 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 175.70 Td (e also compete with other oil and gas companies in securing drilling rigs and other equipment and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.50 Td (services necessary for the drilling, completion, and maintenance of wells. Consequently) Tj ET Q q 0 0 0 rg BT 438.45 162.50 Td (, we may face shortages, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 149.30 Td (delays or increased costs in securing these services from time to time. ) Tj ET Q q 0 0 0 rg BT 361.99 149.30 Td (The oil and gas industry also faces ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (competition from alternative fuel sources, including other fossil fuels such as coal and imported liquefied natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.90 Td (gas. Competitive conditions may be af) Tj ET Q q 0 0 0 rg BT 221.79 122.90 Td (fected by future ener) Tj ET Q q 0 0 0 rg BT 312.90 122.90 Td (gy) Tj ET Q q 0 0 0 rg BT 323.19 122.90 Td (, climate-related, financial, and/or other policies, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.70 Td (legislation, and regulations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 84.50 Td (In addition, we compete for people, including experienced geologists, geophysicists, engineers, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 71.30 Td (professionals. ) Tj ET Q q 0 0 0 rg BT 116.10 71.30 Td (Throughout the oil and gas industry) Tj ET Q q 0 0 0 rg BT 272.72 71.30 Td (, the need to attract and retain talented people has grown at a time ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (when the availability of individuals with these skills is becoming more limited due to the evolving demographics of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 44.90 Td (our industry) Tj ET Q q 0 0 0 rg BT 102.75 44.90 Td (. ) Tj ET Q q 0 0 0 rg BT 110.81 44.90 Td (W) Tj ET Q q 0 0 0 rg BT 120.31 44.90 Td (e are not insulated from the competition for quality people, and we must compete ef) Tj ET Q q 0 0 0 rg BT 489.41 44.90 Td (fectively in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 31.70 Td (order to be successful.) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (17) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Government Regulations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (Our business is extensively controlled by numerous federal, state, and local laws and governmental ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (regulations. ) Tj ET Q q 0 0 0 rg BT 106.93 696.20 Td (These laws and regulations may be changed from time to time in response to economic or political ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (conditions, or other developments, and our regulatory burden may increase in the future. Laws and regulations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (have the potential of increasing our cost of doing business and consequently could af) Tj ET Q q 0 0 0 rg BT 423.40 669.80 Td (fect our profitability) Tj ET Q q 0 0 0 rg BT 511.88 669.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (However) Tj ET Q q 0 0 0 rg BT 89.88 656.60 Td (, we do not believe that we are af) Tj ET Q q 0 0 0 rg BT 235.36 656.60 Td (fected to a materially greater or lesser extent than others in our industry) Tj ET Q q 0 0 0 rg BT 549.25 656.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 631.40 Td (Ener) Tj ET Q q 0 0 0 rg BT 106.97 631.40 Td (gy Regulations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.91 631.40 Td (Many of the states in which we conduct our operations have adopted laws and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.20 Td (regulations governing the exploration for and production of oil, gas, and NGLs, including laws and regulations that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 605.00 Td (require permits for the drilling of wells, impose bonding requirements in order to drill or operate wells, and govern ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.80 Td (the timing of drilling and location of wells, the method of drilling and casing wells, the surface use and restoration ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.60 Td (of properties upon which wells are drilled, and the plugging and abandonment of wells. Our operations are also ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.40 Td (subject to various state conservation laws and regulations, including regulations governing the size of drilling and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.20 Td (spacing units or proration units, the number of wells that may be drilled in an area, the spacing of wells, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 539.00 Td (unitization or pooling of oil and gas properties. In addition, state conservation laws sometimes establish maximum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.80 Td (rates of production from oil and gas wells, generally prohibit the venting or flaring of gas, and may impose certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.60 Td (requirements regarding the ratability or fair apportionment of production from fields and individual wells.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 487.40 Td (Some of our operations are conducted on federal lands pursuant to oil and gas leases administered by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.20 Td (Bureau of Land Management \(BLM\). ) Tj ET Q q 0 0 0 rg BT 230.93 474.20 Td (These leases contain relatively standardized terms and require compliance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 461.00 Td (with detailed regulations and orders that are subject to change. In addition to permits required from other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.80 Td (regulatory agencies, lessees must obtain a permit from the BLM before drilling and must comply with regulations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.60 Td (governing, among other things, engineering and construction specifications for production facilities, safety ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.40 Td (procedures, the valuation of production and payment of royalties, the removal of facilities, and the posting of bonds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.20 Td (to ensure that lessee obligations are met. Under certain circumstances, the BLM may suspend or terminate our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 395.00 Td (operations on federal leases.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 369.80 Td (In May 2010, the BLM adopted changes to its oil and gas leasing program that require, among other things, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.60 Td (a more detailed environmental review prior to leasing oil and natural gas resources, increased public engagement in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.40 Td (the development of master leasing and development plans prior to leasing areas where intensive new oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.20 Td (development is anticipated, and a comprehensive parcel review process. ) Tj ET Q q 0 0 0 rg BT 372.34 330.20 Td (These changes have increased the amount ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 317.00 Td (of time and regulatory costs necessary to obtain oil and gas leases administered by the BLM.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 291.80 Td (Our sales of natural gas are af) Tj ET Q q 0 0 0 rg BT 217.13 291.80 Td (fected by the availability) Tj ET Q q 0 0 0 rg BT 325.45 291.80 Td (, terms, and cost of gas pipeline transportation. ) Tj ET Q q 0 0 0 rg BT 536.65 291.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.60 Td (Federal Ener) Tj ET Q q 0 0 0 rg BT 106.30 278.60 Td (gy Regulatory Commission \(FERC\) has jurisdiction over the transportation and sale for resale of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.40 Td (natural gas in interstate commerce. FERC) Tj ET Q q 0 0 0 rg BT 239.70 265.40 Td (s current regulatory framework generally provides for a competitive and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 252.20 Td (open access market for sales and transportation of natural gas. However) Tj ET Q q 0 0 0 rg BT 368.44 252.20 Td (, FERC regulations continue to af) Tj ET Q q 0 0 0 rg BT 516.11 252.20 Td (fect the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 239.00 Td (midstream and transportation segments of the industry) Tj ET Q q 0 0 0 rg BT 288.79 239.00 Td (, and thus can indirectly af) Tj ET Q q 0 0 0 rg BT 405.28 239.00 Td (fect the sales prices we receive for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.80 Td (natural gas production. ) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (18) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Envir) Tj ET Q q 0 0 0 rg BT 74.03 734.40 Td (onmental, Health and Safety Matters) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td () Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 708.00 Td (General.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.80 708.00 Td (Our operations are subject to stringent and complex federal, state, tribal and local laws and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (regulations governing protection of the environment and worker health and safety as well as the dischar) Tj ET Q q 0 0 0 rg BT 505.85 694.80 Td (ge of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (materials into the environment. ) Tj ET Q q 0 0 0 rg BT 192.76 681.60 Td (These laws and regulations may) Tj ET Q q 0 0 0 rg BT 333.17 681.60 Td (, among other things:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 656.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 656.40 Td (require the acquisition of various permits before drilling commences;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 630.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 630.00 Td (restrict the types, quantities and concentration of various substances that can be released into the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 616.80 Td (environment in connection with oil and natural gas drilling and production and saltwater disposal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 603.60 Td (activities;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 577.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 577.20 Td (limit or prohibit drilling activities on certain lands lying within wilderness, wetlands and other protected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 564.00 Td (areas, including areas containing certain wildlife or threatened and endangered plant and animal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 550.80 Td (species;and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 524.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 524.40 Td (require remedial measures to mitigate pollution from former and ongoing operations, such as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.00 511.20 Td (requirements to close pits and plug abandoned wells.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 484.80 Td (These laws, rules and regulations may also restrict the rate of oil and natural gas production below the rate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (that would otherwise be possible. ) Tj ET Q q 0 0 0 rg BT 202.25 471.60 Td (The regulatory burden on the oil and natural gas industry increases the cost of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (doing business in the industry and consequently af) Tj ET Q q 0 0 0 rg BT 271.91 458.40 Td (fects profitability) Tj ET Q q 0 0 0 rg BT 347.25 458.40 Td (. ) Tj ET Q q 0 0 0 rg BT 354.90 458.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 409.79 458.40 Td (, environmental laws and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (regulations are revised frequently) Tj ET Q q 0 0 0 rg BT 196.81 445.20 Td (, and any changes may result in more stringent permitting, waste handling, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (disposal and cleanup requirements for the oil and natural gas industry and could have a significant impact on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (operating costs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 393.60 Td (The following is a summary of some of the existing laws, rules and regulations to which our business is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (subject.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 355.20 Td (W) Tj ET Q q 0 0 0 rg BT 94.15 355.20 Td (aste handling.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.48 355.20 Td () Tj ET Q q 0 0 0 rg BT 161.79 355.20 Td (The Resource Conservation and Recovery ) Tj ET Q q 0 0 0 rg BT 349.65 355.20 Td (Act \(RCRA\) and comparable state statutes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (regulate the generation, transportation, treatment, storage, disposal and cleanup of hazardous and non-hazardous ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.80 Td (wastes. Under the auspices of the federal Environmental Protection ) Tj ET Q q 0 0 0 rg BT 350.88 328.80 Td (Agency \(the EP) Tj ET Q q 0 0 0 rg BT 424.40 328.80 Td (A\), the individual states ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (requirements. Drilling fluids, produced waters, and most of the other wastes associated with the exploration, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.20 Td (development, and production of oil or natural gas are currently regulated under RCRA) Tj ET Q q 0 0 0 rg BT 429.08 289.20 Td () Tj ET Q q 0 0 0 rg BT 432.14 289.20 Td (s non-hazardous waste ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (provisions. However) Tj ET Q q 0 0 0 rg BT 143.96 276.00 Td (, it is possible that certain oil and natural gas exploration and production wastes now classified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.80 Td (as non-hazardous could be classified as hazardous wastes in the future. ) Tj ET Q q 0 0 0 rg BT 366.76 262.80 Td (Any such change could result in an increase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 249.60 Td (in our costs to manage and dispose of wastes, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 424.29 249.60 Td (fect on our results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 236.40 Td (operations and financial position.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 211.20 Td (Compr) Tj ET Q q 0 0 0 rg BT 116.15 211.20 Td (ehensive Envir) Tj ET Q q 0 0 0 rg BT 180.80 211.20 Td (onmental Response, Compensation and Liability ) Tj ET Q q 0 0 0 rg BT 396.92 211.20 Td (Act.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.33 211.20 Td () Tj ET Q q 0 0 0 rg BT 419.63 211.20 Td (The Comprehensive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (Environmental Response, Compensation and Liability ) Tj ET Q q 0 0 0 rg BT 290.74 198.00 Td (Act \(CERCLA\), also known as the Superfund law) Tj ET Q q 0 0 0 rg BT 520.37 198.00 Td (, imposes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (joint and several liability) Tj ET Q q 0 0 0 rg BT 158.95 184.80 Td (, without regard to fault or legality of conduct, on classes of persons who are considered to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 171.60 Td (be responsible for the release of a hazardous substance into the environment. ) Tj ET Q q 0 0 0 rg BT 393.13 171.60 Td (These persons include the owner or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.40 Td (operator of the site where the release occurred, and anyone who disposed or arranged for the disposal of a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.20 Td (hazardous substance released at the site. Under CERCLA, such persons may be subject to joint and several liability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.00 Td (for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 118.80 Td (natural resources and for the costs of certain health studies. In addition, it is not uncommon for neighboring ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 105.60 Td (landowners and other third-parties to file claims for personal injury and property damage allegedly caused by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 92.40 Td (hazardous substances released into the environment.) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 734.40 Td (e currently own, lease, or operate numerous properties that have been used for oil and natural gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (exploration and production for many years. ) Tj ET Q q 0 0 0 rg BT 245.50 721.20 Td (Although we believe that we have utilized operating and waste disposal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (practices that were standard in the industry at the time, hazardous substances, wastes, or hydrocarbons may have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (been released on or under the properties owned or leased by us, or on or under other locations, including of) Tj ET Q q 0 0 0 rg BT 521.13 694.80 Td (f-site ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (locations, where such substances have been taken for disposal. In addition, some of our properties have been ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (operated by third parties or by previous owners or operators whose treatment and disposal of hazardous substances, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (wastes, or hydrocarbons were not under our control. ) Tj ET Q q 0 0 0 rg BT 284.71 655.20 Td (These properties and the substances disposed or released on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (them may be subject to CERCLA, RCRA, and analogous state laws. Under such laws, we could be required to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (remove previously disposed substances and wastes, pay fines, remediate contaminated property) Tj ET Q q 0 0 0 rg BT 469.61 628.80 Td (, or perform ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (remedial operations to prevent future contamination.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 590.40 Td (W) Tj ET Q q 0 0 0 rg BT 94.15 590.40 Td (ater dischar) Tj ET Q q 0 0 0 rg BT 147.21 590.40 Td (ges.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.63 590.40 Td () Tj ET Q q 0 0 0 rg BT 169.93 590.40 Td (The federal ) Tj ET Q q 0 0 0 rg BT 222.86 590.40 Td (W) Tj ET Q q 0 0 0 rg BT 232.36 590.40 Td (ater Pollution Control ) Tj ET Q q 0 0 0 rg BT 330.44 590.40 Td (Act \(the Clean ) Tj ET Q q 0 0 0 rg BT 402.02 590.40 Td (W) Tj ET Q q 0 0 0 rg BT 411.52 590.40 Td (ater ) Tj ET Q q 0 0 0 rg BT 430.15 590.40 Td (Act\) and analogous state ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (laws impose restrictions and strict controls with respect to the dischar) Tj ET Q q 0 0 0 rg BT 355.89 577.20 Td (ge of pollutants, including spills and leaks of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (oil and other substances, into waters of the United States and states. ) Tj ET Q q 0 0 0 rg BT 353.15 564.00 Td (The dischar) Tj ET Q q 0 0 0 rg BT 404.57 564.00 Td (ge of pollutants into regulated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (waters is prohibited, except in accordance with the terms of a permit issued by the EP) Tj ET Q q 0 0 0 rg BT 425.93 550.80 Td (A, U.S. ) Tj ET Q q 0 0 0 rg BT 461.08 550.80 Td (Army Corps of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (Engineers or analogous state agencies. Federal and state regulatory agencies can impose administrative, civil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (criminal penalties for non-compliance with dischar) Tj ET Q q 0 0 0 rg BT 274.31 524.40 Td (ge permits or other requirements of the Clean ) Tj ET Q q 0 0 0 rg BT 476.93 524.40 Td (W) Tj ET Q q 0 0 0 rg BT 486.43 524.40 Td (ater ) Tj ET Q q 0 0 0 rg BT 505.06 524.40 Td (Act and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (analogous state laws and regulations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 486.00 Td (The Oil Pollution ) Tj ET Q q 0 0 0 rg BT 165.14 486.00 Td (Act of 1990 \(OP) Tj ET Q q 0 0 0 rg BT 242.04 486.00 Td (A\) addresses prevention, containment and cleanup, and liability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (associated with oil pollution. OP) Tj ET Q q 0 0 0 rg BT 195.65 472.80 Td (A) Tj ET Q q 0 0 0 rg BT 202.98 472.80 Td ( applies to vessels, of) Tj ET Q q 0 0 0 rg BT 296.58 472.80 Td (fshore platforms, and onshore facilities. OP) Tj ET Q q 0 0 0 rg BT 489.85 472.80 Td (A) Tj ET Q q 0 0 0 rg BT 497.19 472.80 Td ( subjects ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (owners of such facilities to strict liability for containment and removal costs, natural resource damages and certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (other consequences of oil spills into jurisdictional waters. ) Tj ET Q q 0 0 0 rg BT 307.84 446.40 Td (Any unpermitted release of petroleum or other pollutants ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (from our operations could result in governmental penalties and civil liability) Tj ET Q q 0 0 0 rg BT 385.31 433.20 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 408.00 Td (Air emissions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 148.34 408.00 Td () Tj ET Q q 0 0 0 rg BT 153.64 408.00 Td (The federal Clean ) Tj ET Q q 0 0 0 rg BT 234.57 408.00 Td (Air ) Tj ET Q q 0 0 0 rg BT 251.38 408.00 Td (Act \(CAA\), and comparable state laws, regulate emissions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (various air pollutants through air emissions permitting programs and the imposition of other requirements. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (addition, the EP) Tj ET Q q 0 0 0 rg BT 119.57 381.60 Td (A) Tj ET Q q 0 0 0 rg BT 126.90 381.60 Td ( has developed, and continues to develop, stringent regulations governing emissions of toxic air ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (pollutants at specified sources. Federal and state regulatory agencies can impose administrative, civil and criminal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (penalties for non-compliance with air permits or other requirements of the federal CAA) Tj ET Q q 0 0 0 rg BT 434.87 355.20 Td ( and associated state laws ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (and regulations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 316.80 Td (Climate change.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.10 316.80 Td (In December 2009, the EP) Tj ET Q q 0 0 0 rg BT 278.97 316.80 Td (A) Tj ET Q q 0 0 0 rg BT 286.30 316.80 Td ( determined that emissions of carbon dioxide, methane and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (other greenhouse gases present an endangerment to public health and the environment because emissions of such ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (gases are, according to the EP) Tj ET Q q 0 0 0 rg BT 180.94 290.40 Td (A, contributing to warming of the earth) Tj ET Q q 0 0 0 rg BT 357.21 290.40 Td (s atmosphere and other climatic changes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (Based on these findings, the EP) Tj ET Q q 0 0 0 rg BT 188.31 277.20 Td (A) Tj ET Q q 0 0 0 rg BT 195.64 277.20 Td ( has begun adopting and implementing a comprehensive suite of regulations to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (restrict emissions of greenhouse gases under existing provisions of the CAA. Legislative and regulatory initiatives ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (related to climate change could have an adverse ef) Tj ET Q q 0 0 0 rg BT 271.52 250.80 Td (fect on our operations and the demand for oil and gas. See ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 533.00 250.80 Td (Risk ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (Factors - Risks Related to Our Business - Legislative and r) Tj ET Q q 0 0 0 rg BT 309.28 237.60 Td (egulatory initiatives r) Tj ET Q q 0 0 0 rg BT 404.20 237.60 Td (elated to global warming and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (climate change could have an adverse effect on our operations and the demand for crude oil, natural gas and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (NGLs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.68 211.20 Td (. In addition to the ef) Tj ET Q q 0 0 0 rg BT 170.48 211.20 Td (fects of regulation, the meteorological ef) Tj ET Q q 0 0 0 rg BT 349.27 211.20 Td (fects of global climate change could pose ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (additional risks to our operations, including physical damage risks associated with more frequent, more intensive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (storms and flooding, and could adversely af) Tj ET Q q 0 0 0 rg BT 242.56 184.80 Td (fect the demand for our products. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 159.60 Td (Endanger) Tj ET Q q 0 0 0 rg BT 128.97 159.60 Td (ed species.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.62 159.60 Td () Tj ET Q q 0 0 0 rg BT 181.92 159.60 Td (The federal Endangered Species ) Tj ET Q q 0 0 0 rg BT 326.08 159.60 Td (Act and analogous state laws regulate activities that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (could have an adverse ef) Tj ET Q q 0 0 0 rg BT 158.52 146.40 Td (fect on threatened or endangered species. Some of our operations are conducted in areas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (where protected species are known to exist. In these areas, we may be obligated to develop and implement plans to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (avoid potential adverse impacts to protected species, and we may be prohibited from conducting operations in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (certain locations or during certain seasons, such as breeding and nesting seasons, when our operations could have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (an adverse ef) Tj ET Q q 0 0 0 rg BT 107.82 93.60 Td (fect on these species. It is also possible that a federal or state agency could order a complete halt to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.40 Td (activities in certain locations if it is determined that such activities may have a serious adverse ef) Tj ET Q q 0 0 0 rg BT 475.60 80.40 Td (fect on a protected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 67.20 Td (species. ) Tj ET Q q 0 0 0 rg BT 89.82 67.20 Td (The presence of a protected species in areas where we perform drilling, completion and production ) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (20) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (activities could impair our ability to timely complete well drilling and development and could adversely af) Tj ET Q q 0 0 0 rg BT 518.70 734.40 Td (fect our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (future production from those areas.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (National Envir) Tj ET Q q 0 0 0 rg BT 151.29 696.00 Td (onmental Policy ) Tj ET Q q 0 0 0 rg BT 225.62 696.00 Td (Act.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.03 696.00 Td (Oil and natural gas exploration and production activities on federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (lands are subject to the National Environmental Policy ) Tj ET Q q 0 0 0 rg BT 292.55 682.80 Td (Act \(NEP) Tj ET Q q 0 0 0 rg BT 339.50 682.80 Td (A\). NEP) Tj ET Q q 0 0 0 rg BT 384.01 682.80 Td (A) Tj ET Q q 0 0 0 rg BT 391.35 682.80 Td ( requires federal agencies, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (the Department of Interior) Tj ET Q q 0 0 0 rg BT 165.32 669.60 Td (, to evaluate major agency actions having the potential to significantly impact the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (environment. In the course of such evaluations, an agency will prepare an environmental assessment that assesses ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (the potential direct, indirect and cumulative impacts of a proposed project and, if necessary) Tj ET Q q 0 0 0 rg BT 450.33 643.20 Td (, will prepare a more ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (detailed environmental impact statement that may be made available for public review and comment. ) Tj ET Q q 0 0 0 rg BT 500.23 630.00 Td (All of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (current exploration and production activities, as well as proposed exploration and development plans, on federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (lands require governmental permits that are subject to the requirements of NEP) Tj ET Q q 0 0 0 rg BT 397.52 603.60 Td (A. ) Tj ET Q q 0 0 0 rg BT 413.52 603.60 Td (This process has the potential to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (delay development of some of our oil and natural gas projects.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 565.20 Td (OSHA) Tj ET Q q 0 0 0 rg BT 113.91 565.20 Td ( and other laws and r) Tj ET Q q 0 0 0 rg BT 207.92 565.20 Td (egulation.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.22 565.20 Td () Tj ET Q q 0 0 0 rg BT 257.53 565.20 Td (W) Tj ET Q q 0 0 0 rg BT 267.03 565.20 Td (e are subject to the requirements of the federal Occupational ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (Safety and Health ) Tj ET Q q 0 0 0 rg BT 130.95 552.00 Td (Act \(OSHA\) and comparable state statutes. ) Tj ET Q q 0 0 0 rg BT 336.01 552.00 Td (The OSHA) Tj ET Q q 0 0 0 rg BT 385.20 552.00 Td ( hazard communication standard, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (EP) Tj ET Q q 0 0 0 rg BT 61.83 538.80 Td (A) Tj ET Q q 0 0 0 rg BT 69.16 538.80 Td ( communityright-to-knowregulations under ) Tj ET Q q 0 0 0 rg BT 267.85 538.80 Td (T) Tj ET Q q 0 0 0 rg BT 274.18 538.80 Td (itleIII of CERCLA) Tj ET Q q 0 0 0 rg BT 359.42 538.80 Td ( and similar state statutes require that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (or) Tj ET Q q 0 0 0 rg BT 58.96 525.60 Td (ganizeand/ordisclose information about hazardous materials used or produced in our operations. ) Tj ET Q q 0 0 0 rg BT 492.42 525.60 Td (Also, pursuant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (to OSHA, the Occupational Safety and Health ) Tj ET Q q 0 0 0 rg BT 255.28 512.40 Td (Administration has established a variety of standards relating to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (workplace exposure to hazardous substances and employee health and safety) Tj ET Q q 0 0 0 rg BT 387.41 499.20 Td (. ) Tj ET Q q 0 0 0 rg BT 395.46 499.20 Td (W) Tj ET Q q 0 0 0 rg BT 404.96 499.20 Td (e believe that we are in substantial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (compliance with the applicable requirements of OSHA) Tj ET Q q 0 0 0 rg BT 291.32 486.00 Td ( and comparable laws.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 460.80 Td (Hydraulic fracturing.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.71 460.80 Td (Hydraulic fracturing is an important and common practice that is used to stimulate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (production of hydrocarbons from tight formations. ) Tj ET Q q 0 0 0 rg BT 277.70 447.60 Td (W) Tj ET Q q 0 0 0 rg BT 287.20 447.60 Td (e routinely utilize hydraulic fracturing techniques in most of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (our drilling and completion programs. ) Tj ET Q q 0 0 0 rg BT 223.02 434.40 Td (The process involves the injection of water) Tj ET Q q 0 0 0 rg BT 411.96 434.40 Td (, sand and chemicals under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (pressure into the formation to fracture the surrounding rock and stimulate production. ) Tj ET Q q 0 0 0 rg BT 431.64 421.20 Td (The process is typically ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (regulated by state oil and natural gas commissions. However) Tj ET Q q 0 0 0 rg BT 319.60 408.00 Td (, the EP) Tj ET Q q 0 0 0 rg BT 353.12 408.00 Td (A) Tj ET Q q 0 0 0 rg BT 360.45 408.00 Td ( recently asserted federal regulatory authority ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (over hydraulic fracturing involving diesel additives under the Safe Drinking ) Tj ET Q q 0 0 0 rg BT 387.04 394.80 Td (W) Tj ET Q q 0 0 0 rg BT 396.54 394.80 Td (ater ) Tj ET Q q 0 0 0 rg BT 415.17 394.80 Td (Act) Tj ET Q q 0 0 0 rg BT 434.11 394.80 Td (s \(the SDW) Tj ET Q q 0 0 0 rg BT 489.10 394.80 Td (A\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (Under) Tj ET Q q 0 0 0 rg BT 77.29 381.60 Td (ground Injection Control Program. ) Tj ET Q q 0 0 0 rg BT 235.35 381.60 Td (The federal SDW) Tj ET Q q 0 0 0 rg BT 311.70 381.60 Td (A) Tj ET Q q 0 0 0 rg BT 319.04 381.60 Td ( protects the quality of the nation) Tj ET Q q 0 0 0 rg BT 467.50 381.60 Td (s public drinking ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (water through the adoption of drinking water standards and controlling the injection of waste fluids, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (saltwater disposal fluids, into below-ground formations that may adversely af) Tj ET Q q 0 0 0 rg BT 390.72 355.20 Td (fect drinking water sources. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 330.00 Td (Increased regulation and attention given to the hydraulic fracturing process could lead to greater opposition ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (to oil and gas activities using hydraulic fracturing techniques, which could potentially cause a decrease in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (completion of new oil and gas wells, increased compliance costs and delays, all of which could adversely af) Tj ET Q q 0 0 0 rg BT 524.79 303.60 Td (fect our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (financial position, results of operations and cash flows. If new laws or regulations that significantly restrict ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (hydraulic fracturing are adopted, such laws could make it more dif) Tj ET Q q 0 0 0 rg BT 342.72 277.20 Td (ficult or costly for us to perform fracturing to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (stimulate production from tight formations. In addition, if hydraulic fracturing becomes regulated at the federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (level as a result of federal legislation or regulatory initiatives by the EP) Tj ET Q q 0 0 0 rg BT 362.39 250.80 Td (A, our fracturing activities could become ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (subject to additional permitting requirements, which could result in additional permitting delays and potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (increases in costs. Restrictions on hydraulic fracturing could also reduce the amount of oil and natural gas that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (are ultimately able to produce from our reserves.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 186.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 186.00 Td (e believe that it is reasonably likely that the trend in environmental legislation and regulation will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (continue toward stricter standards. ) Tj ET Q q 0 0 0 rg BT 206.81 172.80 Td (While we believe that we are in substantial compliance with existing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (environmental laws and regulations applicable to our current operations and that our continued compliance with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (existing requirements will not have a material adverse impact on our financial condition and results of operations, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (we cannot give any assurance that we will not be adversely af) Tj ET Q q 0 0 0 rg BT 321.34 133.20 Td (fected in the future. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 108.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 108.00 Td (Envir) Tj ET Q q 0 0 0 rg BT 110.03 108.00 Td (onmental, Health and Safety Initiatives. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.27 108.00 Td (W) Tj ET Q q 0 0 0 rg BT 299.77 108.00 Td (e are committed to conducting our business in a manner ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 94.80 Td (that protects the environment and the health and safety of our employees, contractors and the public. ) Tj ET Q q 0 0 0 rg BT 497.29 94.80 Td (W) Tj ET Q q 0 0 0 rg BT 506.80 94.80 Td (e set annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 81.60 Td (goals for our environmental, health and safety program focused on reducing the number of safety related incidents ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 68.40 Td (that occur and the number and impact of spills of produced fluids. ) Tj ET Q q 0 0 0 rg BT 345.50 68.40 Td (W) Tj ET Q q 0 0 0 rg BT 355.00 68.40 Td (e also periodically conduct regulatory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 55.20 Td (compliance audits of our operations to ensure our compliance with all regulations and provide appropriate training ) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (for our employees. Reducing air emissions as a result of leaks, venting or flaring of natural gas during operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (has become a major focus area for regulatory ef) Tj ET Q q 0 0 0 rg BT 259.92 721.20 Td (forts and for our compliance ef) Tj ET Q q 0 0 0 rg BT 396.25 721.20 Td (forts. ) Tj ET Q q 0 0 0 rg BT 424.46 721.20 Td (While flaring is sometimes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (necessary) Tj ET Q q 0 0 0 rg BT 92.04 708.00 Td (, releases of natural gas to the environment and flaring is an economic waste and reducing these volumes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (is a priority for us. ) Tj ET Q q 0 0 0 rg BT 139.62 694.80 Td (T) Tj ET Q q 0 0 0 rg BT 145.57 694.80 Td (o avoid flaring where possible, we restrict testing periods and make every ef) Tj ET Q q 0 0 0 rg BT 481.07 694.80 Td (fort to ensure that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (our production is connected to gas pipeline infrastructure as quickly as possible after well completions. During this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (last year) Tj ET Q q 0 0 0 rg BT 86.51 668.40 Td (, we also cooperated with other producers in North Dakota in the ongoing development of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (recommendations to reduce the amount of flaring that is occurring there as a result of area wide infrastructure ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (limitations that are beyond our control. ) Tj ET Q q 0 0 0 rg BT 226.57 642.00 Td (Another focus for our environmental ef) Tj ET Q q 0 0 0 rg BT 399.57 642.00 Td (fort has been reduction of water use ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (through recycling of flowback water in South ) Tj ET Q q 0 0 0 rg BT 252.94 628.80 Td (T) Tj ET Q q 0 0 0 rg BT 258.89 628.80 Td (exas for use as frac fluid. ) Tj ET Q q 0 0 0 rg BT 374.76 628.80 Td (W) Tj ET Q q 0 0 0 rg BT 384.26 628.80 Td (e have incurred in the past, and expect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (to incur in the future, capital costs related to environmental compliance. Such expenditures are included within our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (overall capital budget and are not separately itemized. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (Cautionary Information about Forward-Looking Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 550.80 Td (This Form 10-K contains forward-looking statements within the meaning of Section 27A) Tj ET Q q 0 0 0 rg BT 487.12 550.80 Td ( of the Securities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (Act of 1933 \(the Securities ) Tj ET Q q 0 0 0 rg BT 175.55 537.60 Td (Act\) and Section 21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 397.31 537.60 Td (Act of 1934. ) Tj ET Q q 0 0 0 rg BT 457.50 537.60 Td (All statements, other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (than statements of historical facts, included in this Form 10-K that address activities, events, or developments with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (respect to our financial condition, results of operations, or economic performance that we expect, believe, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (anticipate will or may occur in the future, or that address plans and objectives of management for future operations, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td (are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 195.50 484.80 Td (The words anticipate, assume, believe, budget, estimate, expect, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (forecast, intend, plan, project, will, and similar expressions are intended to identify forward-looking ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (statements. Forward-looking statements appear in a number of places in this Form 10-K, and include statements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (about such matters as:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 420.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 420.00 Td (the amount and nature of future capital expenditures and the availability of liquidity and capital ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 406.80 Td (resources to fund capital expenditures;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 381.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 381.60 Td (the drilling of wells and other exploration and development activities and plans, as well as possible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 368.40 Td (future acquisitions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 343.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 343.20 Td (the possible divestiture or farm-down of, or joint venture relating to, certain properties;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 318.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 318.00 Td (proved reserve estimates and the estimates of both future net revenues and the present value of future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 304.80 Td (net revenues associated with those proved reserve estimates;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 279.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 279.60 Td (future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 211.12 279.60 Td ( production estimates;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 254.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 254.40 Td (our outlook on future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 278.65 254.40 Td ( prices, well costs, and service costs;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 229.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 229.20 Td (cash flows, anticipated liquidity) Tj ET Q q 0 0 0 rg BT 243.81 229.20 Td (, and the future repayment of debt;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 204.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 204.00 Td (business strategies and other plans and objectives for future operations, including plans for expansion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 190.80 Td (and growth of operations or to defer capital investment, and our outlook on our future financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 177.60 Td (condition or results of operations; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 152.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 152.40 Td (other similar matters such as those discussed in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 330.98 152.40 Td (Management) Tj ET Q q 0 0 0 rg BT 390.66 152.40 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 467.77 152.40 Td (Analysis of Financial ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 139.20 Td (Condition and Results of Operations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.34 139.20 Td ( section in Item 7 of this report.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 114.00 Td (Our forward-looking statements are based on assumptions and analyses made by us in light of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 100.80 Td (experience and our perception of historical trends, current conditions, expected future developments, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 87.60 Td (factors that we believe are appropriate under the circumstances. ) Tj ET Q q 0 0 0 rg BT 335.36 87.60 Td (These statements are subject to a number of known ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 74.40 Td (and unknown risks and uncertainties, which may cause our actual results and performance to be materially dif) Tj ET Q q 0 0 0 rg BT 533.33 74.40 Td (ferent ) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (22) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (from any future results or performance expressed or implied by the forward-looking statements. Some of these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (risks are described in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 162.10 721.20 Td (Risk Factors) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.01 721.20 Td ( section of this Form 10-K, and include such factors as:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 696.00 Td (the volatility of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 252.68 696.00 Td ( prices, and the ef) Tj ET Q q 0 0 0 rg BT 330.36 696.00 Td (fect it may have on our profitability) Tj ET Q q 0 0 0 rg BT 486.65 696.00 Td (, financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 682.80 Td (condition, cash flows, access to capital, and ability to grow production volumes and/or proved reserves;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 657.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 657.60 Td (weakness in economic conditions and uncertainty in financial markets;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 632.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 632.40 Td (our ability to replace reserves in order to sustain production;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 607.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 607.20 Td (our ability to raise the substantial amount of capital that is required to develop and/or replace our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 594.00 Td (reserves;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 568.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 568.80 Td (our ability to compete against competitors that have greater financial, technical, and human resources;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 543.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 543.60 Td (our ability to attract and retain key personnel;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 518.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 518.40 Td (the imprecise estimations of our actual quantities and present value of proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 525.44 518.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 505.20 Td (reserves;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 480.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 480.00 Td (the uncertainty in evaluating recoverable reserves and estimating expected benefits or liabilities;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 454.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 454.80 Td (the possibility that exploration and development drilling may not result in commercially producible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 441.60 Td (reserves;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 416.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 416.40 Td (our limited control over activities on outside operated properties;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 390.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 390.00 Td (our reliance on the skill and expertise of third-party service providers on our operated properties;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 363.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 363.60 Td (the possibility that title to properties in which we have an interest may be defective;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 337.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 337.20 Td (the possibility that our planned drilling in existing or emer) Tj ET Q q 0 0 0 rg BT 360.73 337.20 Td (ging resource plays using some of the latest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 324.00 Td (available horizontal drilling and completion techniques is subject to drilling and completion risks and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 310.80 Td (may not meet our expectations for reserves or production;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 285.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 285.60 Td (the uncertainties associated with divestitures, joint ventures, farm-downs, farm-outs and similar ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 272.40 Td (transactions with respect to certain assets, including whether such transactions will be consummated or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 259.20 Td (completed in the form or timing and for the value that we anticipate;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 234.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 234.00 Td (the uncertainties associated with enhanced recovery methods;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 208.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 208.80 Td (our commodity derivative contracts may result in financial losses or may limit the prices that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 195.60 Td (receive for oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 232.18 195.60 Td ( sales;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 170.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 170.40 Td (the inability of one or more of our service providers, customers, or contractual counterparties to meet ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 157.20 Td (their obligations;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 132.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 132.00 Td (our ability to deliver necessary quantities of natural gas or crude oil to contractual counterparties;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 106.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 106.80 Td (price declines or unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 299.59 106.80 Td (forts resulting in write-downs of our asset carrying values;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 81.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 81.60 Td (the impact that lower oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 271.30 81.60 Td ( prices could have on the amount we are able to borrow under our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 68.40 Td (credit facility;) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 734.40 Td (the possibility that our amount of debt may limit our ability to obtain financing for acquisitions, make ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 721.20 Td (us more vulnerable to adverse economic conditions, and make it more dif) Tj ET Q q 0 0 0 rg BT 426.98 721.20 Td (ficult for us to make payments ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 708.00 Td (on our debt;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 682.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 682.80 Td (the possibility that covenants in our debt agreements may limit our discretion in the operation of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 669.60 Td (business, prohibit us from engaging in beneficial transactions or lead to the accelerated payment of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 656.40 Td (debt;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 630.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 630.00 Td (operating and environmental risks and hazards that could result in substantial losses;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 604.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 604.80 Td (the impact of seasonal weather conditions and lease stipulations on our ability to conduct drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 591.60 Td (activities;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 566.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 566.40 Td (our ability to acquire adequate supplies of water and dispose of or recycle water we use at a reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 553.20 Td (cost in accordance with environmental and other applicable rules;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 528.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 528.00 Td (complex laws and regulations, including environmental regulations, that result in substantial costs and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 514.80 Td (other risks;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 489.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 489.60 Td (the availability and capacity of gathering, transportation, processing, and/or refining facilities;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 464.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 464.40 Td (our ability to sell and/or receive market prices for our oil, gas, and NGLs;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 439.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 439.20 Td (new technologies may cause our current exploration and drilling methods to become obsolete; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 414.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 414.00 Td (the possibility of security threats, including terrorist attacks and cybersecurity breaches, against, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 400.80 Td (otherwise impacting, our facilities and systems; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 374.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 374.40 Td (litigation, environmental matters, the potential impact of legislation and government regulations, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 361.20 Td (the use of management estimates regarding such matters.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 336.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 336.00 Td (e caution you that forward-looking statements are not guarantees of future performance and that actual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 322.80 Td (results or performance may be materially dif) Tj ET Q q 0 0 0 rg BT 245.89 322.80 Td (ferent from those expressed or implied in the forward-looking ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 309.60 Td (statements. ) Tj ET Q q 0 0 0 rg BT 104.48 309.60 Td (The forward-looking statements in this report speak as of the filing date of this report. ) Tj ET Q q 0 0 0 rg BT 487.25 309.60 Td (Although we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 296.40 Td (may from time to time voluntarily update our prior forward-looking statements, we disclaim any commitment to do ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 283.20 Td (so except as required by securities laws.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 258.00 Td (A) Tj ET Q q 0 0 0 rg BT 57.13 258.00 Td (vailable Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 232.80 Td (Our internet website address is www) Tj ET Q q 0 0 0 rg BT 247.50 232.80 Td (.sm-ener) Tj ET Q q 0 0 0 rg BT 285.48 232.80 Td (gy) Tj ET Q q 0 0 0 rg BT 295.76 232.80 Td (.com. ) Tj ET Q q 0 0 0 rg BT 325.50 232.80 Td (W) Tj ET Q q 0 0 0 rg BT 335.00 232.80 Td (e routinely post important information for investors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 219.60 Td (on our website. ) Tj ET Q q 0 0 0 rg BT 122.82 219.60 Td (W) Tj ET Q q 0 0 0 rg BT 132.76 219.60 Td (ithin our website) Tj ET Q q 0 0 0 rg BT 209.75 219.60 Td (s investor relations section, we make available free of char) Tj ET Q q 0 0 0 rg BT 467.33 219.60 Td (ge our annual report ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 206.40 Td (on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 193.20 Td (with or furnished to the SEC under applicable securities laws. ) Tj ET Q q 0 0 0 rg BT 327.18 193.20 Td (These materials are made available as soon as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 180.00 Td (reasonably practical after we electronically file such materials with or furnish such materials to the SEC. ) Tj ET Q q 0 0 0 rg BT 515.30 180.00 Td (W) Tj ET Q q 0 0 0 rg BT 524.80 180.00 Td (e also ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 166.80 Td (make available through our website) Tj ET Q q 0 0 0 rg BT 210.06 166.80 Td (s corporate governance section our Corporate Governance Guidelines, Code of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 153.60 Td (Business Conduct and Conflict of Interest Policy) Tj ET Q q 0 0 0 rg BT 264.37 153.60 Td (, Financial Code of Ethics, and the Charters of the ) Tj ET Q q 0 0 0 rg BT 486.76 153.60 Td (Audit, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 140.40 Td (Compensation, Executive, and Nominating and Corporate Governance Committees of our Board of Directors. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 127.20 Td (Information on our website is not incorporated by reference into this report and should not be considered part of this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 114.00 Td (document.) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (24) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Glossary of Oil and Gas ) Tj ET Q q 0 0 0 rg BT 165.01 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 171.34 734.60 Td (erms) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.80 Td (The oil and gas terms defined in this section are used throughout this report. ) Tj ET Q q 0 0 0 rg BT 426.11 709.80 Td (The definitions of the terms ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.60 Td (developed reserves, exploratory well, field, proved reserves, and undeveloped reserves have been abbreviated from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.40 Td (the respective definitions under SEC Rule 4-10\(a\) of Regulation S-X, as amended ef) Tj ET Q q 0 0 0 rg BT 421.56 683.40 Td (fective for fiscal years ending ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 670.20 Td (after December 31, 2009. ) Tj ET Q q 0 0 0 rg BT 167.39 670.20 Td (The entire definitions of those terms under Rule 4-10\(a\) of Regulation S-X can be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.00 Td (located through the SEC) Tj ET Q q 0 0 0 rg BT 160.90 657.00 Td (s website at www) Tj ET Q q 0 0 0 rg BT 238.08 657.00 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 273.42 657.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 631.80 Td (Bbl. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 73.53 631.80 Td (One stock tank barrel, or 42 U.S. gallons liquid volume, used in reference to oil or other liquid hydrocarbons.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 606.60 Td (Bcf) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 64.66 606.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 67.41 606.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.91 606.60 Td (Billion cubic feet, used in reference to natural gas.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 581.40 Td (BOE. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.63 581.40 Td (Barrels of oil equivalent. Oil equivalents are determined using the ratio of six Mcf of natural gas to one Bbl ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 568.20 Td (of oil or NGLs.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 543.05 Td (BTU.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 73.53 543.05 Td ( One British thermal unit, the quantity of heat required to raise the temperature of a one-pound mass of water ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 529.85 Td (by one degree Fahrenheit.) Tj ET Q BT /F4 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 50.00 504.65 Td (Developed acr) Tj ET Q q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 114.03 504.65 Td (eage. ) Tj ET Q BT /F2 11.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 143.05 504.65 Td (The number of acres that are allocated or assignable to productive wells or wells capable of ) Tj ET Q BT /F2 11.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 50.00 491.45 Td (production.) Tj ET Q BT /F6 11.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 100.41 491.45 Td ( ) Tj ET Q BT /F4 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 466.25 Td (Developed r) Tj ET Q q 0 0 0 rg BT 103.65 466.25 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.27 466.25 Td (Reserves that can be expected to be recovered: \(i\) through existing wells with existing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 453.05 Td (equipment and operating methods or in which the cost of the required equipment is relatively minor compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 439.85 Td (the cost of a new well; and \(ii\) through installed extraction equipment and infrastructure operational at the time of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 426.65 Td (the reserves estimate if the extraction is by means not involving a well.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 401.45 Td (Development well. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.36 401.45 Td (A) Tj ET Q q 0 0 0 rg BT 144.70 401.45 Td ( well drilled within the proved area of an oil or natural gas reservoir to the depth of a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (stratigraphic horizon known to be productive.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 363.05 Td (Dry hole. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.05 363.05 Td (A) Tj ET Q q 0 0 0 rg BT 104.38 363.05 Td ( well found to be incapable of producing either oil, natural gas, and/or NGLs in commercial quantities.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 337.85 Td (Exploratory well. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.49 337.85 Td (A) Tj ET Q q 0 0 0 rg BT 139.83 337.85 Td ( well drilled to find and produce oil or natural gas in an unproved area, to find a new reservoir ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 324.65 Td (in a field previously found to be productive of oil or natural gas in another reservoir) Tj ET Q q 0 0 0 rg BT 418.26 324.65 Td (, or to extend a known reservoir ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 311.45 Td (beyond its known horizon.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (Fee pr) Tj ET Q q 0 0 0 rg BT 78.61 286.25 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.29 286.25 Td (The most extensive interest that can be owned in land, including surface and mineral \(including oil ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.05 Td (and natural gas\) rights.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 247.85 Td (Field. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.46 247.85 Td (An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.65 Td (individual geological structural feature or stratigraphic condition.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 209.45 Td (Finding and development cost. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.14 209.45 Td (Expressed in dollars per BOE. Finding and development cost metrics provide ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (information as to the cost of adding proved reserves from various activities, and are widely utilized within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 183.05 Td (exploration and production industry) Tj ET Q q 0 0 0 rg BT 207.23 183.05 Td (, as well as by investors and analysts. ) Tj ET Q q 0 0 0 rg BT 376.58 183.05 Td (The information used to calculate these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.85 Td (metrics is included in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 163.34 169.85 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.05 169.85 Td ( section in Part II, Item 8 of this report. It should ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.60 Td (be noted that finding and development cost metrics have limitations. For example, exploration ef) Tj ET Q q 0 0 0 rg BT 478.69 156.60 Td (forts related to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 143.40 Td (particular set of proved reserve additions may extend over several years. ) Tj ET Q q 0 0 0 rg BT 373.46 143.40 Td (As a result, the exploration costs incurred ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 130.20 Td (in earlier periods are not included in the amount of exploration costs incurred during the period in which that set of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 117.00 Td (proved reserves is added. In addition, consistent with industry practice, future capital costs to develop proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 103.80 Td (undeveloped reserves are not included in costs incurred. Since the additional development costs that will need to be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 90.60 Td (incurred in the future before the proved undeveloped reserves are ultimately produced are not included in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 77.40 Td (amount of costs incurred during the period in which those reserves were added, those development costs in future ) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (periods will be reflected in the costs associated with adding a dif) Tj ET Q q 0 0 0 rg BT 334.19 734.40 Td (ferent set of reserves. ) Tj ET Q q 0 0 0 rg BT 433.56 734.40 Td (The calculations of various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (finding and development cost metrics are explained below) Tj ET Q q 0 0 0 rg BT 306.17 721.20 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Finding and development cost Drilling, excluding r) Tj ET Q q 0 0 0 rg BT 284.22 696.00 Td (evisions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.41 696.00 Td ( Calculated by dividing the amount of costs incurred ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (for development and exploration activities, by the amount of estimated net proved reserves added through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (discoveries, extensions, and infill drilling, during the same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (Finding and development cost Drilling, including r) Tj ET Q q 0 0 0 rg BT 283.01 644.40 Td (evisions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.20 644.40 Td ( Calculated by dividing the amount of costs incurred ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (for development and exploration activities, by the amount of estimated net proved reserves added through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (discoveries, extensions, infill drilling, and revisions of previous estimates, during the same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 592.80 Td (Finding and development cost Drilling) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.34 592.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 232.09 592.80 Td (and acquisitions, excluding r) Tj ET Q q 0 0 0 rg BT 359.39 592.80 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.32 592.80 Td ( Calculated by dividing the amount ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (of costs incurred for development, exploration, and acquisition of proved properties, by the amount of estimated net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (proved reserves added through discoveries, extensions, infill drilling, and acquisitions, during the same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 541.20 Td (Finding and development cost Drilling) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.34 541.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 232.09 541.20 Td (and acquisitions, including r) Tj ET Q q 0 0 0 rg BT 358.18 541.20 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.12 541.20 Td ( Calculated by dividing the amount ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (of costs incurred for development, exploration, and acquisition of proved properties, by the amount of estimated net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (proved reserves added through discoveries, extensions, infill drilling, acquisitions, and revisions of previous ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (estimates, during the same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 476.40 Td (Finding and development cost All in, including sales of r) Tj ET Q q 0 0 0 rg BT 305.00 476.40 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.63 476.40 Td (Calculated by dividing the amount of total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.20 Td (capital expenditures for oil and natural gas activities, by the amount of estimated net proved reserves added through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 450.00 Td (discoveries, extensions, infill drilling, acquisitions, and revisions of previous estimates less sales of reserves, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (the same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 411.60 Td (Formation. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.31 411.60 Td (A) Tj ET Q q 0 0 0 rg BT 112.64 411.60 Td ( succession of sedimentary beds that were deposited under the same general geologic conditions.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 386.40 Td (Frac spr) Tj ET Q q 0 0 0 rg BT 87.79 386.40 Td (ead. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.92 386.40 Td (Hydraulic fracturing requires custom-designed and purpose-built equipment. ) Tj ET Q q 0 0 0 rg BT 454.35 386.40 Td (A) Tj ET Q q 0 0 0 rg BT 461.69 386.40 Td ( spread is the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 373.20 Td (equipment necessary to carry out a fracturing job. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 348.00 Td (Gr) Tj ET Q q 0 0 0 rg BT 61.82 348.00 Td (oss acr) Tj ET Q q 0 0 0 rg BT 92.88 348.00 Td (e. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 106.02 348.00 Td (An acre in which a working interest is owned.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 322.80 Td (Gr) Tj ET Q q 0 0 0 rg BT 61.82 322.80 Td (oss well. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.21 322.80 Td (A) Tj ET Q q 0 0 0 rg BT 112.55 322.80 Td ( well in which a working interest is owned.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 297.60 Td (Horizontal wells. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 131.29 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 140.79 297.60 Td (ells that are drilled at angles greater than 70 degrees from vertical.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 272.40 Td (Lease operating expenses. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.28 272.40 Td (The expenses incurred in the lifting of crude oil, natural gas, and/or associated liquids ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 259.20 Td (from a producing formation to the surface, constituting part of the current operating expenses of a working interest, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.00 Td (and also including labor) Tj ET Q q 0 0 0 rg BT 155.56 246.00 Td (, superintendence, supplies, repairs, maintenance, allocated overhead costs, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 232.80 Td (expenses incidental to production, but not including lease acquisition, drilling, or completion costs.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (MBbl. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.69 207.60 Td (One thousand barrels of crude oil or other liquid hydrocarbons.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 182.40 Td (MBOE. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.80 182.40 Td (One thousand barrels of oil equivalent. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 157.20 Td (Mcf. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.35 157.20 Td (One thousand cubic feet, used in reference to natural gas.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 132.00 Td (MCFE. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.19 132.00 Td (Million cubic feet of natural gas equivalent. Natural gas equivalents are determined using the ratio of six ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 118.80 Td (Mcf of natural gas to one Bbl of oil or NGLs.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (MMBbl. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.85 93.60 Td (One million barrels of oil or other liquid hydrocarbons.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 68.40 Td (MMBOE. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.96 68.40 Td (One million barrels of oil equivalent. ) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (26) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (MMBtu. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.85 734.40 Td (One million British thermal units. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td (MMcf. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 84.51 709.20 Td (One million cubic feet, used in reference to natural gas.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 684.00 Td (Net acr) Tj ET Q q 0 0 0 rg BT 82.28 684.00 Td (es or net wells. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.02 684.00 Td ( Sum of our fractional working interests owned in gross acres or gross wells.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 658.80 Td (Net asset value per shar) Tj ET Q q 0 0 0 rg BT 155.91 658.80 Td (e. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 169.04 658.80 Td (The result of the fair market value of total assets less total liabilities, divided by the total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 645.60 Td (number of outstanding shares of common stock.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 620.40 Td (NGLs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.43 620.40 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 81.18 620.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.93 620.40 Td (The combination of ethane, propane, butane, and natural gasolines that when removed from natural gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 607.20 Td (become liquid under various levels of higher pressure and lower temperature.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 582.00 Td (NYMEX WTI. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.00 582.00 Td (New ) Tj ET Q q 0 0 0 rg BT 139.11 582.00 Td (Y) Tj ET Q q 0 0 0 rg BT 145.95 582.00 Td (ork Mercantile Exchange ) Tj ET Q q 0 0 0 rg BT 259.68 582.00 Td (W) Tj ET Q q 0 0 0 rg BT 269.18 582.00 Td (est ) Tj ET Q q 0 0 0 rg BT 283.95 582.00 Td (T) Tj ET Q q 0 0 0 rg BT 289.90 582.00 Td (exas Intermediate, a common industry benchmark price for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 568.80 Td (crude oil.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 543.60 Td (OPIS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 73.83 543.60 Td (. Oil Price Information Service Mont Belvieu, a common industry benchmark for NGL) Tj ET Q q 0 0 0 rg BT 458.63 543.60 Td ( pricing. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 518.40 Td (PV) Tj ET Q q 0 0 0 rg BT 62.83 518.40 Td (-10 value \(Non-GAAP\). ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.49 518.40 Td (The present value of estimated future revenue to be generated from the production of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 505.20 Td (estimated net proved reserves, net of estimated production and future development costs, based on prices used in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 492.00 Td (estimating the proved reserves and costs in ef) Tj ET Q q 0 0 0 rg BT 249.88 492.00 Td (fect as of the date indicated \(unless such costs are subject to change ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 478.80 Td (pursuant to contractual provisions\), without giving ef) Tj ET Q q 0 0 0 rg BT 284.12 478.80 Td (fect to non-property related expenses such as general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 465.60 Td (administrative expenses, debt service, future income tax expenses, or depreciation, depletion, and amortization, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 452.40 Td (discounted using an annual discount rate of 10 percent. ) Tj ET Q q 0 0 0 rg BT 297.54 452.40 Td (While this measure does not include the ef) Tj ET Q q 0 0 0 rg BT 484.59 452.40 Td (fect of income ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 439.20 Td (taxes as it would in the use of the standardized measure of discounted future net cash flows calculation, it does ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 426.00 Td (provide an indicative representation of the relative value of the Company on a comparative basis to other companies ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 412.80 Td (and from period to period. ) Tj ET Q q 0 0 0 rg BT 171.08 412.80 Td (This is a non-GAAP) Tj ET Q q 0 0 0 rg BT 260.80 412.80 Td ( measure. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 387.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 387.60 Td (oductive well. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.18 387.60 Td (A) Tj ET Q q 0 0 0 rg BT 134.52 387.60 Td ( well that is producing crude oil, natural gas, and/or NGLs or that is capable of commercial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 374.40 Td (production of those products.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 349.20 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 349.20 Td (oved r) Tj ET Q q 0 0 0 rg BT 87.98 349.20 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 128.60 349.20 Td (Those quantities of oil, gas, and NGLs which, by analysis of geoscience and engineering data, can ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 336.00 Td (be estimated with reasonable certainty to be economically producible from a given date forward, from known ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 322.80 Td (reservoirs, and under existing economic conditions, operating methods, and government regulations prior to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 309.60 Td (time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 296.40 Td (certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Existing economic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 283.20 Td (conditions include prices and costs at which economic producibility from a reservoir is to be determined, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 270.00 Td (price to be used is the average price during the 12-month period prior to the ending date of the period covered by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 256.80 Td (the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 243.60 Td (within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 230.40 Td (conditions.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 205.20 Td (Recompletion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.73 205.20 Td (The completion of an existing wellbore in a formation other than that in which the well has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 192.00 Td (previously been completed.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 166.80 Td (Reserve life. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.86 166.80 Td (Expressed in years, represents the estimated net proved reserves at a specified date divided by actual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 153.60 Td (production for the preceding 12-month period.) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (27) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 734.40 Td (eplacement.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.27 734.40 Td ( Reserve replacement metrics are used as indicators of a company) Tj ET Q q 0 0 0 rg BT 439.62 734.40 Td (s ability to replenish annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (production volumes and grow its reserves, and provide information related to how successful a company is at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (growing its proved reserve base. ) Tj ET Q q 0 0 0 rg BT 197.95 708.00 Td (These are believed to be useful non-GAAP) Tj ET Q q 0 0 0 rg BT 386.93 708.00 Td ( measures that are widely utilized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (within the exploration and production industry) Tj ET Q q 0 0 0 rg BT 254.28 694.80 Td (, as well as by investors and analysts. ) Tj ET Q q 0 0 0 rg BT 423.63 694.80 Td (They are easily calculable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (metrics, and the information used to calculate these metrics is included in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 392.12 681.60 Td (Supplemental Oil and Gas ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.56 668.40 Td ( section of Part II, Item 8 of this report. It should be noted that reserve replacement metrics have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (limitations. ) Tj ET Q q 0 0 0 rg BT 105.11 655.20 Td (They are limited because they typically vary widely based on the extent and timing of new discoveries ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (and property acquisitions. ) Tj ET Q q 0 0 0 rg BT 169.25 642.00 Td (Their predictive and comparative value is also limited for the same reasons. In addition, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (because the metrics do not embed the cost or timing of future production of new reserves, they cannot be used as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (measure of value creation. ) Tj ET Q q 0 0 0 rg BT 171.35 615.60 Td (The calculations of various reserve replacement metrics are explained below) Tj ET Q q 0 0 0 rg BT 507.52 615.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 590.40 Td (eplacement Drilling, excluding r) Tj ET Q q 0 0 0 rg BT 242.85 590.40 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.54 590.40 Td (Calculated as a numerator comprised of the sum of reserve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (extensions and discoveries and infill reserves in an existing proved field divided by production for that same period. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (This metric is an indicator of the relative success a company is having in replacing its production through drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (activity) Tj ET Q q 0 0 0 rg BT 82.27 550.80 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 525.60 Td (eplacement Drilling, including r) Tj ET Q q 0 0 0 rg BT 241.64 525.60 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.33 525.60 Td (Calculated as a numerator comprised of the sum of reserve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (extensions, discoveries, infill reserves, and revisions of previous estimates in an existing proved field divided by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (production for that same period. ) Tj ET Q q 0 0 0 rg BT 196.73 499.20 Td (This metric is an indicator of the relative success a company is having in replacing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (its production through drilling activity with an adjustment for revisions.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 460.80 Td (eplacement Drilling) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.97 460.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 190.72 460.80 Td (and acquisitions, excluding r) Tj ET Q q 0 0 0 rg BT 318.02 460.80 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.71 460.80 Td (Calculated as a numerator comprised of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (sum of reserve acquisitions and reserve extensions, discoveries, and infill reserves in an existing proved field ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (divided by production for that same period. ) Tj ET Q q 0 0 0 rg BT 246.23 434.40 Td (This metric is an indicator of the relative success a company is having ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (in replacing its production through drilling and acquisition activities.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 396.00 Td (eplacement Drilling) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.97 396.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 190.72 396.00 Td (and acquisitions, including r) Tj ET Q q 0 0 0 rg BT 316.81 396.00 Td (evisions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.50 396.00 Td (Calculated as a numerator comprised of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (sum of reserve acquisitions and reserve extensions, discoveries, infill reserves, and revisions of previous estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (in an existing proved field divided by production for that same period. ) Tj ET Q q 0 0 0 rg BT 364.45 369.60 Td (This metric is an indicator of the relative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (success a company is having in replacing its production through drilling and acquisition activities with an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.20 Td (adjustment for revisions.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 318.00 Td (eplacement per) Tj ET Q q 0 0 0 rg BT 158.52 318.00 Td (centage ) Tj ET Q q 0 0 0 rg BT 203.53 318.00 Td (All in, excluding sales of r) Tj ET Q q 0 0 0 rg BT 318.60 318.00 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.22 318.00 Td (The sum of reserve extensions and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (discoveries, infill drilling, reserve acquisitions, and reserve revisions of previous estimates for a specified period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td (time divided by production for that same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 266.40 Td (Reserve r) Tj ET Q q 0 0 0 rg BT 91.43 266.40 Td (eplacement per) Tj ET Q q 0 0 0 rg BT 158.52 266.40 Td (centage All in, including sales of r) Tj ET Q q 0 0 0 rg BT 314.84 266.40 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.46 266.40 Td (The sum of sales of reserves, infill drilling, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.20 Td (reserve extensions and discoveries, reserve acquisitions, and reserve revisions of previous estimates for a specified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (period of time divided by production for that same period.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 214.80 Td (Reservoir) Tj ET Q q 0 0 0 rg BT 91.55 214.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.80 214.80 Td (A) Tj ET Q q 0 0 0 rg BT 107.13 214.80 Td ( porous and permeable under) Tj ET Q q 0 0 0 rg BT 234.61 214.80 Td (ground formation containing a natural accumulation of producible crude ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.60 Td (oil, natural gas, and/or associated liquid resources that is confined by impermeable rock or water barriers and is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.40 Td (individual and separate from other reservoirs.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 163.20 Td (Resour) Tj ET Q q 0 0 0 rg BT 80.75 163.20 Td (ce play) Tj ET Q q 0 0 0 rg BT 111.60 163.20 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.85 163.20 Td (A) Tj ET Q q 0 0 0 rg BT 127.19 163.20 Td ( term used to describe an accumulation of crude oil, natural gas, and/or associated liquid resources ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 150.00 Td (known to exist over a lar) Tj ET Q q 0 0 0 rg BT 158.86 150.00 Td (ge areal expanse, which when compared to a conventional play typically has lower ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 136.80 Td (expected geological risk.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 111.60 Td (Royalty) Tj ET Q q 0 0 0 rg BT 82.99 111.60 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.24 111.60 Td (The amount or fee paid to the owner of mineral rights, expressed as a percentage or fraction of gross ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 98.40 Td (income from crude oil, natural gas, and NGLs produced and sold unencumbered by expenses relating to the drilling, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 85.20 Td (completing, and operating of the af) Tj ET Q q 0 0 0 rg BT 204.36 85.20 Td (fected well.) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (28) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Royalty inter) Tj ET Q q 0 0 0 rg BT 106.71 734.40 Td (est. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.18 734.40 Td (An interest in an oil and natural gas property entitling the owner to shares of crude oil, natural gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (and NGL) Tj ET Q q 0 0 0 rg BT 90.83 721.20 Td ( production free of costs of exploration, development, and production operations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Seismic. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.85 696.00 Td (The) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 108.95 696.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.70 696.00 Td (sending of ener) Tj ET Q q 0 0 0 rg BT 179.31 696.00 Td (gy waves or sound waves into the earth and analyzing the wave reflections to infer the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (type, size, shape, and depth of subsurface rock formations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 657.60 Td (Shale. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.69 657.60 Td (Fine-grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (occurring sedimentary rock.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 619.20 Td (Standar) Tj ET Q q 0 0 0 rg BT 84.43 619.20 Td (dized measur) Tj ET Q q 0 0 0 rg BT 142.38 619.20 Td (e of discounted futur) Tj ET Q q 0 0 0 rg BT 232.71 619.20 Td (e net cash flows. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.92 619.20 Td (The discounted future net cash flows relating to proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 606.00 Td (reserves based on prices used in estimating the reserves, year) Tj ET Q q 0 0 0 rg BT 318.57 606.00 Td (-end costs, and statutory tax rates, and a 10 percent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 592.80 Td (annual discount rate. ) Tj ET Q q 0 0 0 rg BT 146.63 592.80 Td (The information for this calculation is included in the supplemental information regarding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (disclosures about oil and gas producing activities following the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 330.75 579.60 Td (Notes to Consolidated Financial Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.46 579.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (included in this report.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 541.20 Td (Undeveloped acr) Tj ET Q q 0 0 0 rg BT 125.03 541.20 Td (eage. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.05 541.20 Td (Lease acreage on which wells have not been drilled or completed to a point that would ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (permit the production of commercial quantities of oil, natural gas, and associated liquids regardless of whether such ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (acreage contains estimated net proved reserves.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 489.60 Td (Undeveloped r) Tj ET Q q 0 0 0 rg BT 114.65 489.60 Td (eserves. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 155.27 489.60 Td (Reserves that are expected to be recovered from new wells on undrilled acreage, or from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 476.40 Td (existing wells where a relatively major expenditure is required for recompletion. ) Tj ET Q q 0 0 0 rg BT 409.32 476.40 Td (The applicable SEC definition of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.20 Td (undeveloped reserves provides that undrilled locations can be classified as having undeveloped reserves only if a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 450.00 Td (development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (specific circumstances justify a longer time.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 411.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 411.60 Td (orking inter) Tj ET Q q 0 0 0 rg BT 109.99 411.60 Td (est. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.46 411.60 Td (The operating interest that gives the owner the right to drill, produce, and conduct operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 398.40 Td (activities on the property and to share in the production, sales, and costs.) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (29) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 1A. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (RISK F) Tj ET Q q 0 0 0 rg BT 157.55 734.60 Td (ACT) Tj ET Q q 0 0 0 rg BT 180.58 734.60 Td (ORS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (In addition to the other information included in this report, the following risk factors should be carefully ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (considered when evaluating an investment in us.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 671.00 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 148.50 671.00 Td ( Business ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 645.80 Td (Crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 193.74 645.80 Td ( prices ar) Tj ET Q q 0 0 0 rg BT 235.49 645.80 Td (e volatile, and declines in prices adversely affect our pr) Tj ET Q q 0 0 0 rg BT 480.07 645.80 Td (ofitability) Tj ET Q q 0 0 0 rg BT 522.24 645.80 Td (, ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 632.60 Td (financial condition, cash flows, access to capital, and ability to gr) Tj ET Q q 0 0 0 rg BT 340.15 632.60 Td (ow) Tj ET Q q 0 0 0 rg BT 352.17 632.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 607.40 Td (Our revenues, operating results, profitability) Tj ET Q q 0 0 0 rg BT 280.79 607.40 Td (, future rate of growth, and the carrying value of our oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 594.20 Td (natural gas properties depend heavily on the prices we receive for crude oil, natural gas and NGL) Tj ET Q q 0 0 0 rg BT 477.51 594.20 Td ( sales. Crude oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 581.00 Td (natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 144.28 581.00 Td ( prices also af) Tj ET Q q 0 0 0 rg BT 204.86 581.00 Td (fect our cash flows available for capital expenditures and other items, our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 567.80 Td (borrowing capacity) Tj ET Q q 0 0 0 rg BT 134.50 567.80 Td (, and the amount and value of our crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 423.67 567.80 Td ( reserves. For example, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 554.60 Td (amount of our borrowing base under our credit facility is subject to periodic redeterminations based on crude oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.40 Td (natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 144.28 541.40 Td ( prices specified by our bank group at the time of redetermination. In addition, we may have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.20 Td (crude oil and natural gas property impairments or downward revisions of estimates of proved reserves if prices fall ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 515.00 Td (significantly) Tj ET Q q 0 0 0 rg BT 104.27 515.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 489.80 Td (Historically) Tj ET Q q 0 0 0 rg BT 137.22 489.80 Td (, the markets for crude oil, natural gas, and NGLs have been volatile, and they are likely to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 476.60 Td (continue to be volatile. ) Tj ET Q q 0 0 0 rg BT 156.11 476.60 Td (W) Tj ET Q q 0 0 0 rg BT 166.05 476.60 Td (ide fluctuations in crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 386.80 476.60 Td ( prices may result from relatively ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.40 Td (minor changes in the supply of and demand for crude oil, natural gas, and NGLs, market uncertainty) Tj ET Q q 0 0 0 rg BT 491.29 463.40 Td (, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 450.20 Td (factors that are beyond our control, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 425.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 425.00 Td (global and domestic supplies of crude oil, natural gas, and NGLs, and the productive capacity of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 411.80 Td (industry as a whole;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 386.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 386.60 Td (the level of consumer demand for crude oil, natural gas, and NGLs;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 361.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 361.40 Td (overall global and domestic economic conditions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 336.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 336.20 Td (weather conditions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 311.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 311.00 Td (the availability and capacity of gathering, transportation, processing, and/or refining facilities in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 297.80 Td (regional or localized areas that may af) Tj ET Q q 0 0 0 rg BT 271.77 297.80 Td (fect the realized price for crude oil, natural gas, or NGLs;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 272.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 272.60 Td (liquefied natural gas deliveries to and from the United States;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 247.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 247.40 Td (the price and level of imports and exports of crude oil, refined petroleum products, and liquefied natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 234.20 Td (gas;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 209.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 209.00 Td (the price and availability of alternative fuels;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 183.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 183.80 Td (technological advances and regulations af) Tj ET Q q 0 0 0 rg BT 287.67 183.80 Td (fecting ener) Tj ET Q q 0 0 0 rg BT 339.69 183.80 Td (gy consumption and conservation;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 158.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 158.60 Td (the ability of the members of the Or) Tj ET Q q 0 0 0 rg BT 261.73 158.60 Td (ganization of Petroleum Exporting Countries and other exporting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 145.40 Td (countries to agree to and maintain crude oil price and production controls;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 120.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 120.20 Td (political instability or armed conflict in crude oil or natural gas producing regions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 95.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 95.00 Td (strengthening and weakening of the United States dollar relative to other currencies; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 69.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 69.80 Td (governmental regulations and taxes.) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (30) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (These factors and the volatility of crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 375.47 734.40 Td ( markets make it extremely dif) Tj ET Q q 0 0 0 rg BT 509.97 734.40 Td (ficult to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (predict future crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 250.88 721.20 Td ( price movements with any certainty) Tj ET Q q 0 0 0 rg BT 410.53 721.20 Td (. Declines in crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 110.99 708.00 Td ( prices would reduce our revenues and could also reduce the amount of crude oil, natural gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (NGLs that we can produce economically) Tj ET Q q 0 0 0 rg BT 229.19 694.80 Td (, which could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 414.69 694.80 Td (fect on us.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 669.60 Td (eakness in economic conditions or uncertainty in financial markets may have material adverse impacts on our ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (business that we cannot pr) Tj ET Q q 0 0 0 rg BT 166.92 656.40 Td (edict.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 631.20 Td (In recent years, the United States and global economies and financial systems have experienced turmoil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (upheaval characterized by extreme volatility in prices of equity and debt securities, periods of diminished liquidity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (and credit availability) Tj ET Q q 0 0 0 rg BT 145.19 604.80 Td (, inability to access capital markets, the bankruptcy) Tj ET Q q 0 0 0 rg BT 369.60 604.80 Td (, failure, collapse, or sale of financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (institutions, increased levels of unemployment, and an unprecedented level of intervention by the United States ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (federal government and other governments. ) Tj ET Q q 0 0 0 rg BT 247.02 578.40 Td (Although the United States economy appears to have stabilized and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (may be recovering, the extent and timing of a recovery) Tj ET Q q 0 0 0 rg BT 290.58 565.20 Td (, and whether it can be sustained, are uncertain. Renewed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (weakness in the United States or other lar) Tj ET Q q 0 0 0 rg BT 232.78 552.00 Td (ge economies could materially adversely af) Tj ET Q q 0 0 0 rg BT 423.47 552.00 Td (fect our business and financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (condition. For example:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 513.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 513.60 Td (natural gas prices have recently been lower than at various times in the last decade because of increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 500.40 Td (supply resulting from, among other things, increased drilling in unconventional reservoirs, leading to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 487.20 Td (lower revenues, which could af) Tj ET Q q 0 0 0 rg BT 241.55 487.20 Td (fect our financial condition and results of operations;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 462.00 Td ( ) Tj ET Q q 0 0 0 rg BT 104.00 462.00 Td (the tightening of credit or lack of credit availability to our customers could adversely af) Tj ET Q q 0 0 0 rg BT 488.67 462.00 Td (fect our ability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 448.80 Td (to collect our trade receivables;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 423.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 423.60 Td (the liquidity available under our credit facility could be reduced if any lender is unable to fund its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 410.40 Td (commitment;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 385.20 Td ( ) Tj ET Q q 0 0 0 rg BT 104.00 385.20 Td (our ability to access the capital markets may be restricted at a time when we would like, or need, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 372.00 Td (raise capital for our business, including for the exploration and/or development of reserves;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 346.80 Td ( ) Tj ET Q q 0 0 0 rg BT 104.00 346.80 Td (our commodity derivative contracts could become economically inef) Tj ET Q q 0 0 0 rg BT 406.50 346.80 Td (fective if our counterparties are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 333.60 Td (unable to perform their obligations or seek bankruptcy protection; and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 308.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 308.40 Td (variable interest rate spread levels, including for LIBOR and the prime rate, could increase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 295.20 Td (significantly) Tj ET Q q 0 0 0 rg BT 158.27 295.20 Td (, resulting in higher interest costs for unhedged variable interest rate based borrowings ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 282.00 Td (under our credit facility) Tj ET Q q 0 0 0 rg BT 207.44 282.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 256.80 Td (If we ar) Tj ET Q q 0 0 0 rg BT 83.81 256.80 Td (e unable to r) Tj ET Q q 0 0 0 rg BT 139.31 256.80 Td (eplace r) Tj ET Q q 0 0 0 rg BT 174.64 256.80 Td (eserves, we will not be able to sustain pr) Tj ET Q q 0 0 0 rg BT 352.96 256.80 Td (oduction.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 231.60 Td (Our future operations depend on our ability to find, develop, or acquire crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 540.43 231.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 218.40 Td (reserves that are economically producible. Our properties produce crude oil, natural gas, and NGLs at a declining ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 205.20 Td (rate over time. In order to maintain current production rates, we must locate and develop or acquire new crude oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 192.00 Td (natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 144.28 192.00 Td ( reserves to replace those being depleted by production. ) Tj ET Q q 0 0 0 rg BT 394.25 192.00 Td (W) Tj ET Q q 0 0 0 rg BT 404.19 192.00 Td (ithout successful drilling or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 178.80 Td (acquisition activities, our reserves and production will decline over time. In addition, competition for crude oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 165.60 Td (natural gas properties is intense, and many of our competitors have financial, technical, human, and other resources ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 152.40 Td (necessary to evaluate and integrate acquisitions that are substantially greater than those available to us. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 127.20 Td (In the event we do complete an acquisition, its successful impact on our business will depend on a number ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 114.00 Td (of factors, many of which are beyond our control. ) Tj ET Q q 0 0 0 rg BT 274.01 114.00 Td (These factors include the purchase price, future crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 100.80 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 110.99 100.80 Td ( prices, the ability to reasonably estimate or assess the recoverable volumes of reserves, rates of future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 87.60 Td (production and future net revenues attainable from reserves, future operating and capital costs, results of future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 74.40 Td (exploration, exploitation and development activities on the acquired properties, and future abandonment and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 61.20 Td (possible future environmental or other liabilities. ) Tj ET Q q 0 0 0 rg BT 270.36 61.20 Td (There are numerous uncertainties inherent in estimating quantities ) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (31) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (of proved oil and gas reserves, actual future production rates, and associated costs and potential liabilities with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (respect to prospective acquisition tar) Tj ET Q q 0 0 0 rg BT 211.08 721.20 Td (gets. ) Tj ET Q q 0 0 0 rg BT 236.44 721.20 Td (Actual results may vary substantially from those assumed in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (estimates. ) Tj ET Q q 0 0 0 rg BT 98.58 708.00 Td (A) Tj ET Q q 0 0 0 rg BT 105.91 708.00 Td ( customary review of subject properties will not necessarily reveal all existing or potential problems.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 682.80 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 682.80 Td (, significant acquisitions can change the nature of our operations and business depending upon ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (the character of the acquired properties if they have substantially dif) Tj ET Q q 0 0 0 rg BT 349.73 669.60 Td (ferent operating and geological characteristics ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (or are in dif) Tj ET Q q 0 0 0 rg BT 101.42 656.40 Td (ferent geographic locations than our existing properties. ) Tj ET Q q 0 0 0 rg BT 352.61 656.40 Td (T) Tj ET Q q 0 0 0 rg BT 358.56 656.40 Td (o the extent that acquired properties are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (substantially dif) Tj ET Q q 0 0 0 rg BT 120.38 643.20 Td (ferent than our existing properties, our ability to ef) Tj ET Q q 0 0 0 rg BT 342.86 643.20 Td (ficiently realize the expected economic benefits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (of such transactions may be limited.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 604.80 Td (Integrating acquired businesses and properties involves a number of special risks. ) Tj ET Q q 0 0 0 rg BT 450.23 604.80 Td (These risks include the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (possibility that management may be distracted from regular business concerns by the need to integrate operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (and systems and that unforeseen dif) Tj ET Q q 0 0 0 rg BT 207.12 578.40 Td (ficulties can arise in integrating operations and systems and in retaining and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (assimilating employees. ) Tj ET Q q 0 0 0 rg BT 160.60 565.20 Td (Any of these or other similar risks could lead to potential adverse short-term or long-term ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 552.00 Td (fects on our operating results and may cause us to not be able to realize any or all of the anticipated benefits of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (acquisitions. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (Substantial capital is r) Tj ET Q q 0 0 0 rg BT 149.52 513.60 Td (equir) Tj ET Q q 0 0 0 rg BT 172.33 513.60 Td (ed to develop and r) Tj ET Q q 0 0 0 rg BT 256.84 513.60 Td (eplace our r) Tj ET Q q 0 0 0 rg BT 310.20 513.60 Td (eserves.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 488.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 488.40 Td (e must make substantial capital expenditures to find, acquire, develop, and produce crude oil, natural gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (and NGL) Tj ET Q q 0 0 0 rg BT 90.83 475.20 Td ( reserves. Future cash flows and the availability of financing are subject to a number of factors, such as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (the level of production from existing wells, prices received for crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 466.23 462.00 Td ( sales, our success in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (locating and developing and acquiring new reserves, and the orderly functioning of credit and capital markets. If ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 188.57 435.60 Td ( prices decrease or if we encounter operating dif) Tj ET Q q 0 0 0 rg BT 400.33 435.60 Td (ficulties that result in our cash flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (from operations being less than expected, we may reduce our planned capital expenditures unless we can raise ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (additional funds through debt or equity financing or the divestment of assets. Debt or equity financing may not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (always be available to us in suf) Tj ET Q q 0 0 0 rg BT 187.26 396.00 Td (ficient amounts or on acceptable terms, and the proceeds of) Tj ET Q q 0 0 0 rg BT 448.52 396.00 Td (fered to us for potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (divestitures may not always be of acceptable value to us.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 357.60 Td (If our revenues decrease due to lower crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 385.52 357.60 Td ( prices, decreased production, or other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (reasons, and if we cannot obtain funding through our credit facility) Tj ET Q q 0 0 0 rg BT 344.06 344.40 Td (, other acceptable debt or equity financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (arrangements, or through the sale of assets, our ability to execute development plans, replace our reserves, maintain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (our acreage, or maintain production levels could be greatly limited.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 292.80 Td (Competition in our industry is intense, and many of our competitors have gr) Tj ET Q q 0 0 0 rg BT 384.76 292.80 Td (eater financial, technical, and human ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 279.60 Td (r) Tj ET Q q 0 0 0 rg BT 53.87 279.60 Td (esour) Tj ET Q q 0 0 0 rg BT 77.91 279.60 Td (ces than we do.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 254.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 254.40 Td (e face intense competition from major oil and gas companies, independent oil and gas exploration and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 241.20 Td (production companies, and institutional and individual investors who seek oil and gas investments throughout the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 228.00 Td (world, as well as the equipment, expertise, labor) Tj ET Q q 0 0 0 rg BT 262.16 228.00 Td (, and materials required to operate crude oil and natural gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 214.80 Td (properties. Many of our competitors have financial, technical, and other resources exceeding those available to us, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.60 Td (and many crude oil and natural gas properties are sold in a competitive bidding process in which our competitors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.40 Td (may be able and willing to pay more for exploratory and development prospects and productive properties, or in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 175.20 Td (which our competitors have technological information or expertise that is not available to us to evaluate and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.00 Td (successfully bid for properties. ) Tj ET Q q 0 0 0 rg BT 190.93 162.00 Td (W) Tj ET Q q 0 0 0 rg BT 200.43 162.00 Td (e may not be successful in acquiring and developing profitable properties in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 148.80 Td (face of this competition. In addition, other companies may have a greater ability to continue drilling activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.60 Td (during periods of low natural gas or oil prices and to absorb the burden of current and future governmental ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.40 Td (regulations and taxation. In addition, shortages of equipment, labor) Tj ET Q q 0 0 0 rg BT 344.96 122.40 Td (, or materials as a result of intense competition ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.20 Td (may result in increased costs or the inability to obtain those resources as needed. ) Tj ET Q q 0 0 0 rg BT 409.23 109.20 Td (Also, we compete for human ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.00 Td (resources. Over the last few years, the need for talented people across all disciplines in the industry has grown, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (while the number of talented people available has not grown at the same pace, and in many cases, is declining due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 69.60 Td (to the demographics of the industry) Tj ET Q q 0 0 0 rg BT 205.39 69.60 Td (. Our inability to compete ef) Tj ET Q q 0 0 0 rg BT 332.57 69.60 Td (fectively with companies in any area of our ) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (business could have a material adverse impact on our business activities, financial condition and results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (operations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (The loss of key personnel could adversely affect our business. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 670.80 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 670.80 Td (e depend to a lar) Tj ET Q q 0 0 0 rg BT 167.99 670.80 Td (ge extent on the ef) Tj ET Q q 0 0 0 rg BT 249.03 670.80 Td (forts and continued employment of our executive management team ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.60 Td (and other key personnel. ) Tj ET Q q 0 0 0 rg BT 163.43 657.60 Td (The loss of the services of these or other key personnel could adversely af) Tj ET Q q 0 0 0 rg BT 488.54 657.60 Td (fect our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (business. Our drilling success and the success of other activities integral to our operations will depend, in part, on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (our ability to attract and retain experienced geologists, engineers, landmen and other professionals. Competition for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (many of these professionals is intense. If we cannot retain our technical personnel or attract additional experienced ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (technical personnel and professionals, our ability to compete could be harmed.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 395.78 604.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (The actual quantities and pr) Tj ET Q q 0 0 0 rg BT 174.25 579.60 Td (esent value of our pr) Tj ET Q q 0 0 0 rg BT 264.89 579.60 Td (oved crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 429.68 579.60 Td ( r) Tj ET Q q 0 0 0 rg BT 436.31 579.60 Td (eserves may be less than we ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (have estimated.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 541.20 Td (This report and other of our SEC filings contain estimates of our proved crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 544.42 541.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (reserves and the estimated future net revenues from those reserves. ) Tj ET Q q 0 0 0 rg BT 349.74 528.00 Td (These estimates are based on various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (assumptions, including assumptions required by the SEC relating to crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 489.82 514.80 Td ( prices, drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (and completion costs, gathering and transportation costs, operating expenses, capital expenditures, ef) Tj ET Q q 0 0 0 rg BT 494.25 501.60 Td (fects of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (governmental regulation, taxes, timing of operations, and availability of funds. ) Tj ET Q q 0 0 0 rg BT 401.41 488.40 Td (The process of estimating crude oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 144.28 475.20 Td ( reserves is complex. ) Tj ET Q q 0 0 0 rg BT 241.83 475.20 Td (The process involves significant decisions and assumptions in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (evaluation of available geological, geophysical, engineering, and economic data for each reservoir) Tj ET Q q 0 0 0 rg BT 481.87 462.00 Td (. ) Tj ET Q q 0 0 0 rg BT 489.92 462.00 Td (These estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (are dependent on many variables, and therefore changes often occur as our knowledge of these variables evolve. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (Therefore, these estimates are inherently imprecise. In addition, the reserve estimates we make for properties that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (do not have a significant production history may be less reliable than estimates for properties with lengthy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (production histories. ) Tj ET Q q 0 0 0 rg BT 145.33 409.20 Td (A) Tj ET Q q 0 0 0 rg BT 152.66 409.20 Td ( lack of production history may contribute to inaccuracy in our estimates of proved reserves, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (future production rates, and the timing and/or amount of development expenditures.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 370.80 Td (Actual future production, prices for crude oil, natural gas, and NGLs, revenues, production taxes, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (development expenditures, operating expenses, and quantities of producible crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 525.20 357.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (reserves will most likely vary from those estimated. ) Tj ET Q q 0 0 0 rg BT 282.78 344.40 Td (Any significant variance of any nature could materially af) Tj ET Q q 0 0 0 rg BT 537.31 344.40 Td (fect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (the estimated quantities of and present value related to proved reserves disclosed by us, and the actual quantities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (and present value may be significantly less than we have previously estimated. In addition, we may adjust ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (estimates of proved reserves to reflect production history) Tj ET Q q 0 0 0 rg BT 300.07 304.80 Td (, results of exploration, operations and development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td (activity) Tj ET Q q 0 0 0 rg BT 82.27 291.60 Td (, prevailing crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 273.70 291.60 Td ( prices, costs to develop and operate properties, and other factors, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.40 Td (many of which are beyond our control. Our properties may also be susceptible to hydrocarbon drainage from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td (production on adjacent properties, which we may not control.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 240.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 240.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 240.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.83 240.00 Td (51 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.95 240.00 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.36 240.00 Td (219.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.11 240.00 Td ( MMBOE, of our estimated proved reserves were proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.80 Td (undeveloped, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.34 226.80 Td (three percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.44 226.80 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.85 226.80 Td (10.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.10 226.80 Td ( MMBOE, were proved developed non-producing. In order to develop our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (proved undeveloped reserves, as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.61 213.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.05 213.60 Td (, we estimate approximately $2.8 billion of capital ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (expenditures would be required. Production revenues from proved developed non-producing reserves will not be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (realized until sometime in the future and after some investment of capital. In order to develop our proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 174.00 Td (developed non-producing reserves, as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.83 174.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.27 174.00 Td (, we estimate capital expenditures of approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.80 Td ($29 million would be required. ) Tj ET Q q 0 0 0 rg BT 191.45 160.80 Td (Although we have estimated our proved reserves and the costs associated with these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.60 Td (proved reserves in accordance with industry standards, estimated costs may not be accurate, development may not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.40 Td (occur as scheduled, and actual results may not occur as estimated. ) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (33) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Y) Tj ET Q q 0 0 0 rg BT 92.84 734.40 Td (ou should not assume that the PV) Tj ET Q q 0 0 0 rg BT 239.10 734.40 Td (-10 value and standardized measure of discounted future net cash flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (included in this report represent the current market value of our estimated proved crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 548.70 721.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (reserves. Management has based the estimated discounted future net cash flows from proved reserves on price and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (cost assumptions required by the SEC, whereas actual future prices and costs may be materially higher or lower) Tj ET Q q 0 0 0 rg BT 541.19 694.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (For example, values of our reserves as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.58 681.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.02 681.60 Td (, were estimated using a calculated 12-month average ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (sales price of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 110.78 668.40 Td ($3.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.53 668.40 Td ( per MMBtu of natural gas \(NYMEX Henry Hub spot price\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.81 668.40 Td ($96.94) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.06 668.40 Td ( per Bbl of oil \(NYMEX ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (WTI spot price\), and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.38 655.20 Td ($40.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.63 655.20 Td ( per Bbl of NGL) Tj ET Q q 0 0 0 rg BT 246.93 655.20 Td ( \(OPIS spot price\). ) Tj ET Q q 0 0 0 rg BT 334.72 655.20 Td (W) Tj ET Q q 0 0 0 rg BT 344.22 655.20 Td (e then adjust these prices to reflect appropriate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (basis, quality) Tj ET Q q 0 0 0 rg BT 107.34 642.00 Td (, and location dif) Tj ET Q q 0 0 0 rg BT 181.67 642.00 Td (ferentials over that period in estimating our proved reserves. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.52 642.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 508.52 642.00 Td (, our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (monthly average realized natural gas prices, excluding the ef) Tj ET Q q 0 0 0 rg BT 317.05 628.80 Td (fect of derivative cash settlements, were as high as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td ($4.41 per Mcf and as low as $3.45 per Mcf. For the same period, our monthly average realized crude oil prices ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (before the ef) Tj ET Q q 0 0 0 rg BT 105.38 602.40 Td (fect of derivative cash settlements were as high as $97.87 per Bbl and as low as $83.14 per Bbl, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (were as high as $39.36 per Bbl and as low as $31.20 per Bbl for NGLs. Many other factors will af) Tj ET Q q 0 0 0 rg BT 484.20 589.20 Td (fect actual future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (net cash flows, including:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 550.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 550.80 Td (amount and timing of actual production;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 525.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 525.60 Td (supply and demand for crude oil, natural gas, and NGLs;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 500.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 500.40 Td (curtailments or increases in consumption by oil purchasers and natural gas pipelines; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 475.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 475.20 Td (changes in government regulations or taxes, including severance and excise taxes.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 450.00 Td (The timing of production from oil and natural gas properties and of related expenses af) Tj ET Q q 0 0 0 rg BT 468.23 450.00 Td (fects the timing of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (actual future net cash flows from proved reserves, and thus their actual present value. Our actual future net cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (flows could be less than the estimated future net cash flows for purposes of computing the PV) Tj ET Q q 0 0 0 rg BT 462.62 423.60 Td (-10 value. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (addition, the 10 percent discount factor required by the SEC to be used to calculate the PV) Tj ET Q q 0 0 0 rg BT 447.02 410.40 Td (-10 value for reporting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (purposes is not necessarily the most appropriate discount factor given actual interest rates, costs of capital, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (other risks to which our business and the oil and natural gas industry in general are subject.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 358.80 Td (Our pr) Tj ET Q q 0 0 0 rg BT 79.85 358.80 Td (operty acquisitions may not be worth what we paid due to uncertainties in evaluating r) Tj ET Q q 0 0 0 rg BT 461.96 358.80 Td (ecoverable r) Tj ET Q q 0 0 0 rg BT 516.83 358.80 Td (eserves ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 345.60 Td (and other expected benefits, as well as potential liabilities.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 320.40 Td (Successful property acquisitions require an assessment of a number of factors, some of which are beyond ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 307.20 Td (our control. ) Tj ET Q q 0 0 0 rg BT 106.62 307.20 Td (These factors include exploration potential, future crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 467.87 307.20 Td ( prices, operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.00 Td (costs, and potential environmental and other liabilities. ) Tj ET Q q 0 0 0 rg BT 296.63 294.00 Td (These assessments are not precise and their accuracy is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 280.80 Td (inherently uncertain.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 255.60 Td (In connection with our acquisitions, we typically perform a customary review of the acquired properties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 242.40 Td (that will not necessarily reveal all existing or potential problems. In addition, our review may not allow us to fully ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 229.20 Td (assess the potential deficiencies of the properties. ) Tj ET Q q 0 0 0 rg BT 272.48 229.20 Td (W) Tj ET Q q 0 0 0 rg BT 281.98 229.20 Td (e do not inspect every well, and even when we inspect a well ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 216.00 Td (we may not discover structural, subsurface, or environmental problems that may exist or arise. ) Tj ET Q q 0 0 0 rg BT 470.73 216.00 Td (W) Tj ET Q q 0 0 0 rg BT 480.24 216.00 Td (e may not be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 202.80 Td (entitled to contractual indemnification for pre-closing liabilities, including environmental liabilities. Normally) Tj ET Q q 0 0 0 rg BT 536.52 202.80 Td (, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 189.60 Td (acquire interests in properties on an as is basis with limited remedies for breaches of representations and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 176.40 Td (warranties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 151.20 Td (In addition, significant acquisitions can change the nature of our operations and business if the acquired ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.00 Td (properties have substantially dif) Tj ET Q q 0 0 0 rg BT 190.63 138.00 Td (ferent operating and geological characteristics or are in dif) Tj ET Q q 0 0 0 rg BT 447.58 138.00 Td (ferent geographic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 124.80 Td (locations than our existing properties. ) Tj ET Q q 0 0 0 rg BT 221.18 124.80 Td (T) Tj ET Q q 0 0 0 rg BT 227.13 124.80 Td (o the extent acquired properties are substantially dif) Tj ET Q q 0 0 0 rg BT 455.10 124.80 Td (ferent than our existing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 111.60 Td (properties, our ability to ef) Tj ET Q q 0 0 0 rg BT 167.41 111.60 Td (ficiently realize the expected economic benefits of such acquisitions may be limited.) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (34) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Integrating acquired properties and businesses involves a number of other special risks, including the risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (that management may be distracted from normal business concerns by the need to integrate operations and systems ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (as well as retain and assimilate additional employees. ) Tj ET Q q 0 0 0 rg BT 290.51 708.00 Td (Therefore, we may not be able to realize all of the anticipated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (benefits of our acquisitions.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 669.60 Td (e have limited contr) Tj ET Q q 0 0 0 rg BT 145.41 669.60 Td (ol over the activities on pr) Tj ET Q q 0 0 0 rg BT 260.78 669.60 Td (operties we do not operate.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 644.40 Td (Some of our properties, including a portion of our operations in the Eagle Ford shale in South ) Tj ET Q q 0 0 0 rg BT 500.67 644.40 Td (T) Tj ET Q q 0 0 0 rg BT 506.62 644.40 Td (exas, are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (operated by other companies and involve third-party working interest owners. ) Tj ET Q q 0 0 0 rg BT 397.63 631.20 Td (As a result, we have limited ability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (to influence or control the operation or future development of such properties, including the nature and timing of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (drilling and operational activities, the operator) Tj ET Q q 0 0 0 rg BT 254.45 604.80 Td () Tj ET Q q 0 0 0 rg BT 257.51 604.80 Td (s skill and expertise, compliance with environmental, safety and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (other regulations, the approval of other participants in such properties, the selection and application of suitable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (technology) Tj ET Q q 0 0 0 rg BT 98.16 578.40 Td (, or the amount of expenditures that we will be required to fund with respect to such properties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (Moreover) Tj ET Q q 0 0 0 rg BT 92.93 565.20 Td (, we are dependent on the other working interest owners of such projects to fund their contractual share of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (the expenditures of such properties. ) Tj ET Q q 0 0 0 rg BT 212.00 552.00 Td (These limitations and our dependence on the operator and other working ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (interest owners in these projects could cause us to incur unexpected future costs and materially and adversely af) Tj ET Q q 0 0 0 rg BT 541.88 538.80 Td (fect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (our financial condition and results of operations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 500.40 Td (e r) Tj ET Q q 0 0 0 rg BT 69.66 500.40 Td (ely on thir) Tj ET Q q 0 0 0 rg BT 114.46 500.40 Td (d-party service pr) Tj ET Q q 0 0 0 rg BT 192.87 500.40 Td (oviders to conduct the drilling and completion operations on pr) Tj ET Q q 0 0 0 rg BT 472.62 500.40 Td (operties we ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (operate.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 462.00 Td (Where we are the operator of a property) Tj ET Q q 0 0 0 rg BT 261.50 462.00 Td (, we rely on third-party service providers to perform necessary ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (drilling and completion operations. ) Tj ET Q q 0 0 0 rg BT 209.88 448.80 Td (The ability of third-party service providers to perform such drilling and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (completion operations will depend on those service providers) Tj ET Q q 0 0 0 rg BT 323.20 435.60 Td ( ability to compete for and retain qualified personnel, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (financial condition, economic performance, and access to capital, which in turn will depend upon the supply and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (demand for oil, natural gas liquids and natural gas, prevailing economic conditions and financial, business and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (factors. ) Tj ET Q q 0 0 0 rg BT 87.98 396.00 Td (The failure of a third-party service provider to adequately perform operations could delay drilling or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (completion or reduce production from the property and adversely af) Tj ET Q q 0 0 0 rg BT 348.83 382.80 Td (fect our financial condition and results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (operations. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (T) Tj ET Q q 0 0 0 rg BT 55.51 344.40 Td (itle to the pr) Tj ET Q q 0 0 0 rg BT 109.18 344.40 Td (operties in which we have an inter) Tj ET Q q 0 0 0 rg BT 260.30 344.40 Td (est may be impair) Tj ET Q q 0 0 0 rg BT 338.41 344.40 Td (ed by title defects.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 319.20 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 319.20 Td (e generally rely on title reports in acquiring oil and gas leasehold interests and obtain title opinions only ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 306.00 Td (on significant properties that we drill. ) Tj ET Q q 0 0 0 rg BT 220.87 306.00 Td (There is no assurance that we will not suf) Tj ET Q q 0 0 0 rg BT 403.34 306.00 Td (fer a monetary loss from title ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.80 Td (defects or title failure. ) Tj ET Q q 0 0 0 rg BT 152.01 292.80 Td (Additionally) Tj ET Q q 0 0 0 rg BT 206.91 292.80 Td (, undeveloped acreage has greater risk of title defects than developed acreage. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.60 Td (T) Tj ET Q q 0 0 0 rg BT 56.33 279.60 Td (itle insurance is not available for oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 304.98 279.60 Td (As is customary in our industry) Tj ET Q q 0 0 0 rg BT 442.68 279.60 Td (, we rely upon the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.40 Td (judgment of staf) Tj ET Q q 0 0 0 rg BT 121.90 266.40 Td (f and independent landmen who perform the field work of examining records in the appropriate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.20 Td (governmental of) Tj ET Q q 0 0 0 rg BT 122.19 253.20 Td (fices and title abstract facilities before attempting to acquire or place under lease a specific mineral ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (interest and/or undertake drilling activities. ) Tj ET Q q 0 0 0 rg BT 244.99 240.00 Td (W) Tj ET Q q 0 0 0 rg BT 254.49 240.00 Td (e, in some cases, perform curative work to correct deficiencies in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.80 Td (marketability of the title to us. Generally) Tj ET Q q 0 0 0 rg BT 231.34 226.80 Td (, under the terms of the operating agreements af) Tj ET Q q 0 0 0 rg BT 441.59 226.80 Td (fecting our properties, any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (monetary loss attributable to a loss of title is to be borne by all parties to any such agreement in proportion to their ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (interests in such property) Tj ET Q q 0 0 0 rg BT 160.18 200.40 Td (. ) Tj ET Q q 0 0 0 rg BT 167.82 200.40 Td (A) Tj ET Q q 0 0 0 rg BT 175.16 200.40 Td ( material title defect can reduce the value of a property or render it worthless, thus ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (adversely af) Tj ET Q q 0 0 0 rg BT 103.24 187.20 Td (fecting our financial condition, results of operations and operating cash flow if such property is of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 174.00 Td (suf) Tj ET Q q 0 0 0 rg BT 63.25 174.00 Td (ficient value.) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (35) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Exploration and development drilling may not r) Tj ET Q q 0 0 0 rg BT 260.40 734.40 Td (esult in commer) Tj ET Q q 0 0 0 rg BT 330.25 734.40 Td (cially pr) Tj ET Q q 0 0 0 rg BT 366.81 734.40 Td (oducible r) Tj ET Q q 0 0 0 rg BT 411.31 734.40 Td (eserves.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (Crude oil and natural gas drilling, completion and production activities are subject to numerous risks, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (including the risk that no commercially producible crude oil, natural gas, or associated liquids will be found. ) Tj ET Q q 0 0 0 rg BT 532.76 696.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (cost of drilling and completing wells is often uncertain, and crude oil, natural gas or associated liquids drilling and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (production activities may be shortened, delayed, or canceled as a result of a variety of factors, many of which are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (beyond our control. ) Tj ET Q q 0 0 0 rg BT 141.75 656.40 Td (These factors include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 631.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 631.20 Td (unexpected adverse drilling or completion conditions;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 606.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 606.00 Td (title problems;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 580.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 580.80 Td (disputes with owners or holders of surface interests on or near areas where we operate;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 555.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 555.60 Td (pressure or geologic irregularities in formations;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 530.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 530.40 Td (engineering and construction delays;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 505.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 505.20 Td (equipment failures or accidents;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 480.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 480.00 Td (hurricanes, tornadoes, flooding, or other adverse weather conditions;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 454.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 454.80 Td (governmental permitting delays;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 429.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 429.60 Td (compliance with environmental and other governmental requirements; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 404.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 404.40 Td (shortages or delays in the availability of or increases in the cost of drilling rigs and crews, fracture ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 391.20 Td (stimulation crews and equipment, pipe, chemicals, water) Tj ET Q q 0 0 0 rg BT 353.12 391.20 Td (, sand, and other supplies.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 366.00 Td (The prevailing prices for crude oil, natural gas, and NGLs af) Tj ET Q q 0 0 0 rg BT 352.15 366.00 Td (fect the cost of and the demand for drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (rigs, completion and production equipment, and other related services. However) Tj ET Q q 0 0 0 rg BT 405.42 352.80 Td (, changes in costs may not occur ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (simultaneously with corresponding changes in commodity prices. ) Tj ET Q q 0 0 0 rg BT 344.00 339.60 Td (The availability of drilling rigs can vary ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (significantly from region to region at any particular time. ) Tj ET Q q 0 0 0 rg BT 306.29 326.40 Td (Although land drilling rigs can be moved from one region ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (to another in response to changes in levels of demand, an undersupply of rigs in any region may result in drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (delays and higher drilling costs for the rigs that are available in that region. In addition, the recent economic and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (financial downturn has adversely af) Tj ET Q q 0 0 0 rg BT 206.80 286.80 Td (fected the financial condition of some drilling contractors, which may constrain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (the availability of drilling services in some areas.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 248.40 Td (Another significant risk inherent in our drilling plans is the need to obtain drilling permits from state, local, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.20 Td (and other governmental authorities. Delays in obtaining regulatory approvals and drilling permits, including delays ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 222.00 Td (that jeopardize our ability to realize the potential benefits from leased properties within the applicable lease periods, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.80 Td (the failure to obtain a drilling permit for a well, or the receipt of a permit with unreasonable conditions or costs ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.60 Td (could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 200.36 195.60 Td (fect on our ability to explore or develop our properties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 170.40 Td (The wells we drill may not be productive, and we may not recover all or any portion of our investment in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 157.20 Td (such wells. ) Tj ET Q q 0 0 0 rg BT 104.18 157.20 Td (The seismic data and other technologies we use do not allow us to know conclusively prior to drilling a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 144.00 Td (well if crude oil, natural gas, or NGLs are present, or whether they can be produced economically) Tj ET Q q 0 0 0 rg BT 479.04 144.00 Td (. ) Tj ET Q q 0 0 0 rg BT 487.09 144.00 Td (The cost of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 130.80 Td (drilling, completing, and operating a well is often uncertain, and cost factors can adversely af) Tj ET Q q 0 0 0 rg BT 460.02 130.80 Td (fect the economics of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 117.60 Td (a project. Drilling activities can result in dry holes or wells that are productive but do not produce suf) Tj ET Q q 0 0 0 rg BT 498.23 117.60 Td (ficient net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 104.40 Td (revenues after operating and other costs to cover drilling and completion costs. Even if suf) Tj ET Q q 0 0 0 rg BT 450.57 104.40 Td (ficient amounts of crude ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 91.20 Td (oil, natural gas, or NGLs exist, we may damage a potentially productive hydrocarbon-bearing formation or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 78.00 Td (experience mechanical dif) Tj ET Q q 0 0 0 rg BT 165.23 78.00 Td (ficulties while drilling or completing a well, which could result in reduced or no ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 64.80 Td (production from the well, significant expenditure to repair the well, and/or the loss and abandonment of the well.) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (36) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Results in our newer resource plays may be more uncertain than results in resource plays that are more ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (developed and have longer established production histories. For example, industry experience and knowledge in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (the Eagle Ford shale play) Tj ET Q q 0 0 0 rg BT 161.08 708.00 Td (, is more limited compared to more established resource plays, such as the Barnett or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 694.80 Td (oodford shales, and we and the industry generally have less information with respect to the ultimate recoverability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (of reserves and the production decline rates in newer resource plays than other areas with longer histories of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (development and production. Drilling and completion techniques that have proven to be successful in other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (resource plays are being used in the early development of these new plays; however) Tj ET Q q 0 0 0 rg BT 418.84 655.20 Td (, we can provide no assurance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (of the ultimate success of these drilling and completion techniques.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 616.80 Td (In addition, a significant part of our strategy involves increasing our inventory of drilling locations. Such ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (multi-year drilling inventories can be more susceptible to long-term uncertainties that could materially alter the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (occurrence or timing of actual drilling. Because of these uncertainties, we do not know if the potential drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (locations we have identified will ever be drilled, although we have the present intent to do so for locations booked ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (as proved undeveloped locations, or if we will be able to produce crude oil, natural gas, or NGLs from these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (potential drilling locations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 525.60 Td (Our future drilling activities may not be successful. Our overall drilling success rate or our drilling success ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (rate within a particular area may decline. In addition, we may not be able to obtain any options or lease rights in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (potential drilling locations that we identify) Tj ET Q q 0 0 0 rg BT 237.16 499.20 Td (. Unless production is established within the spacing units covering ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (undeveloped acres on which our drilling locations are identified, the leases for such acreage will expire and we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (would lose our right to develop the related properties. Our total net acreage expiring in the next three years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (represents approximately 34 percent of our total net undeveloped acreage at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.27 459.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.72 459.60 Td (. ) Tj ET Q q 0 0 0 rg BT 480.36 459.60 Td (Although we have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (identified numerous potential drilling locations, we may not be able to economically produce crude oil, natural gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (or NGLs from all of them and our actual drilling activities may materially dif) Tj ET Q q 0 0 0 rg BT 389.79 433.20 Td (fer from those presently identified, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (which could adversely af) Tj ET Q q 0 0 0 rg BT 160.06 420.00 Td (fect our financial condition, results of operations and operating cash flow) Tj ET Q q 0 0 0 rg BT 481.61 420.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (Part of our strategy involves drilling in existing or emer) Tj ET Q q 0 0 0 rg BT 296.76 394.80 Td (ging r) Tj ET Q q 0 0 0 rg BT 322.94 394.80 Td (esour) Tj ET Q q 0 0 0 rg BT 346.97 394.80 Td (ce plays using some of the latest available ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (horizontal drilling and completion techniques. The r) Tj ET Q q 0 0 0 rg BT 283.02 381.60 Td (esults of our planned exploratory and delineation drilling in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (these plays ar) Tj ET Q q 0 0 0 rg BT 110.69 368.40 Td (e subject to drilling and completion technique risks, and r) Tj ET Q q 0 0 0 rg BT 365.08 368.40 Td (esults may not meet our expectations for ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (r) Tj ET Q q 0 0 0 rg BT 53.87 355.20 Td (eserves or pr) Tj ET Q q 0 0 0 rg BT 110.90 355.20 Td (oduction. ) Tj ET Q q 0 0 0 rg BT 157.44 355.20 Td (As a r) Tj ET Q q 0 0 0 rg BT 183.32 355.20 Td (esult, we may incur material write-downs, and the value of our undeveloped acr) Tj ET Q q 0 0 0 rg BT 535.46 355.20 Td (eage ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (could decline if drilling r) Tj ET Q q 0 0 0 rg BT 160.19 342.00 Td (esults ar) Tj ET Q q 0 0 0 rg BT 197.37 342.00 Td (e unsuccessful.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 316.80 Td (Many of our operations involve utilizing the latest drilling and completion techniques as developed by us ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (and our service providers in order to maximize production and ultimate recoveries and therefore generate the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (highest possible returns. Risks that we face while drilling include, but are not limited to, landing our well bore ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (outside the desired drilling zone, deviating from the desired drilling zone while drilling horizontally through the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (formation, running our casing the entire length of the well bore, and being able to run tools and recover equipment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (consistently through the horizontal well bore. Risks that we face while completing our wells include, but are not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (limited to, the inability to fracture stimulate the planned number of stages, the inability to run tools and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (equipment the entire length of the well bore during completion operations, the inability to recover such tools and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (other equipment, and successfully cleaning out the well bore after completion of the final fracture stimulation.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 186.00 Td (Ultimately) Tj ET Q q 0 0 0 rg BT 132.33 186.00 Td (, the success of these drilling and completion techniques can only be evaluated over time as more ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (wells are drilled and production profiles are established over a suf) Tj ET Q q 0 0 0 rg BT 339.98 172.80 Td (ficiently long time period. If our drilling results ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (are less than anticipated or we are unable to execute our drilling program because of capital constraints, lease ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (expirations, limited access to gathering systems and takeaway capacity) Tj ET Q q 0 0 0 rg BT 361.15 146.40 Td (, and/or prices for crude oil, natural gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (NGL) Tj ET Q q 0 0 0 rg BT 72.20 133.20 Td ( decline, then the return on our investment for a particular project may not be as attractive as we anticipated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (and we could incur material write-downs of oil and gas properties and the value of our undeveloped acreage could ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (decline in the future.) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (37) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Uncertainties associated with enhanced r) Tj ET Q q 0 0 0 rg BT 232.28 734.40 Td (ecovery methods may r) Tj ET Q q 0 0 0 rg BT 333.59 734.40 Td (esult in us not r) Tj ET Q q 0 0 0 rg BT 401.63 734.40 Td (ealizing an acceptable r) Tj ET Q q 0 0 0 rg BT 507.23 734.40 Td (eturn on ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (our investments in such pr) Tj ET Q q 0 0 0 rg BT 165.69 721.20 Td (ojects.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 696.00 Td (e inject water into formations on some of our properties to increase the production of crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (gas, and associated liquids. ) Tj ET Q q 0 0 0 rg BT 174.75 682.80 Td (W) Tj ET Q q 0 0 0 rg BT 184.25 682.80 Td (e may in the future expand these ef) Tj ET Q q 0 0 0 rg BT 338.29 682.80 Td (forts to more of our properties or employ other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (enhanced recovery methods in our operations. ) Tj ET Q q 0 0 0 rg BT 258.12 669.60 Td (The additional production and reserves, if any) Tj ET Q q 0 0 0 rg BT 459.92 669.60 Td (, attributable to the use ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (of enhanced recovery methods are inherently dif) Tj ET Q q 0 0 0 rg BT 262.99 656.40 Td (ficult to predict. If our enhanced recovery methods do not allow ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (for the extraction of crude oil, natural gas, and associated liquids in a manner or to the extent that we anticipate, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (may not realize an acceptable return on our investments in such projects. In addition, if proposed legislation and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (regulatory initiatives relating to hydraulic fracturing become law) Tj ET Q q 0 0 0 rg BT 334.27 616.80 Td (, the cost of some of these enhanced recovery ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (methods could increase substantially) Tj ET Q q 0 0 0 rg BT 210.89 603.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (Many of our pr) Tj ET Q q 0 0 0 rg BT 116.50 578.40 Td (operties ar) Tj ET Q q 0 0 0 rg BT 164.07 578.40 Td (e in ar) Tj ET Q q 0 0 0 rg BT 192.38 578.40 Td (eas that may have been partially depleted or drained by offset wells and certain of ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (our wells may be adversely affected by actions other operators may take when drilling, completing or operating ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (wells that they own.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 526.80 Td (Many of our properties are in areas that may have already been partially depleted or drained by earlier ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (of) Tj ET Q q 0 0 0 rg BT 58.96 513.60 Td (fset drilling. ) Tj ET Q q 0 0 0 rg BT 118.04 513.60 Td (The owners of leasehold interests adjoining any of our properties could take actions, such as drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (and completing additional wells, that could adversely af) Tj ET Q q 0 0 0 rg BT 296.01 500.40 Td (fect our operations. ) Tj ET Q q 0 0 0 rg BT 386.53 500.40 Td (When a new well is completed and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (produced, the pressure dif) Tj ET Q q 0 0 0 rg BT 164.04 487.20 Td (ferential in the vicinity of the well causes the migration of reservoir fluids towards the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (new wellbore \(and potentially away from existing wellbores\). ) Tj ET Q q 0 0 0 rg BT 326.14 474.00 Td (As a result, the drilling and production of these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (potential locations could cause a depletion of our proved reserves and may inhibit our ability to further develop our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (proved reserves. In addition, completion operations and other activities conducted on adjacent or nearby wells ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (could cause production from our wells to be shut in for indefinite periods of time, could result in increased lease ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (operating expenses and could adversely af) Tj ET Q q 0 0 0 rg BT 235.81 421.20 Td (fect the production and reserves from our wells after they re-commence ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (production. ) Tj ET Q q 0 0 0 rg BT 105.71 408.00 Td (W) Tj ET Q q 0 0 0 rg BT 115.21 408.00 Td (e have no control over the operations or activities of of) Tj ET Q q 0 0 0 rg BT 356.32 408.00 Td (fsetting operators.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (Our commodity derivative contract activities may r) Tj ET Q q 0 0 0 rg BT 275.03 382.80 Td (esult in financial losses or may limit the prices that we r) Tj ET Q q 0 0 0 rg BT 521.80 382.80 Td (eceive ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (for crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 206.87 369.60 Td ( sales.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 344.40 Td (T) Tj ET Q q 0 0 0 rg BT 91.95 344.40 Td (o mitigate a portion of the exposure to potentially adverse market changes in crude oil, natural gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (NGL) Tj ET Q q 0 0 0 rg BT 72.20 331.20 Td ( prices and the associated impact on cash flows, we have entered into various derivative contracts. Our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (derivative contracts in place include swap and collar arrangements for crude oil, natural gas, and NGLs. ) Tj ET Q q 0 0 0 rg BT 511.83 318.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 304.80 Td (, we were in a net accrued asset position of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.95 304.80 Td ($21.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.23 304.80 Td ( with respect to our crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 110.99 291.60 Td ( derivative activities. ) Tj ET Q q 0 0 0 rg BT 208.23 291.60 Td (These activities may expose us to the risk of financial loss in certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.40 Td (circumstances, including instances in which:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 253.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 253.20 Td (our production is less than expected;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 228.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 228.00 Td (one or more counterparties to our commodity derivative contracts default on their contractual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 214.80 Td (obligations; or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 189.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 189.60 Td (there is a widening of price dif) Tj ET Q q 0 0 0 rg BT 238.81 189.60 Td (ferentials between delivery points for our production and the delivery ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 176.40 Td (point assumed in the commodity derivative contract arrangement.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 151.20 Td (The risk of one or more counterparties defaulting on their obligations is heightened by the recent global and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.00 Td (domestic economic and financial downturn af) Tj ET Q q 0 0 0 rg BT 251.09 138.00 Td (fecting many banks and other financial institutions, including our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 124.80 Td (counterparties and their af) Tj ET Q q 0 0 0 rg BT 164.94 124.80 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 202.93 124.80 Td (These circumstances may adversely af) Tj ET Q q 0 0 0 rg BT 371.93 124.80 Td (fect the ability of our counterparties to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 111.60 Td (meet their obligations to us pursuant to derivative transactions, which could reduce our revenues and cash flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 98.40 Td (from realized derivative cash settlements. ) Tj ET Q q 0 0 0 rg BT 237.84 98.40 Td (As a result, our financial condition, results of operations, and cash flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 85.20 Td (could be materially af) Tj ET Q q 0 0 0 rg BT 146.01 85.20 Td (fected in an adverse way if our counterparties default on their contractual obligations under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 72.00 Td (our commodity derivative contracts.) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (38) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (In addition, commodity derivative contracts may limit the prices that we receive for our crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (gas and NGL) Tj ET Q q 0 0 0 rg BT 108.24 721.20 Td ( sales if crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 276.45 721.20 Td ( prices rise substantially over the price established by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (commodity derivative contract. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (The inability of customers or co-owners of assets to meet their obligations may adversely affect our financial ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (r) Tj ET Q q 0 0 0 rg BT 53.87 669.60 Td (esults.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 644.40 Td (Substantially all of our accounts receivable result from crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 468.33 644.40 Td ( sales or joint ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (interest billings to co-owners of oil and gas properties we operate. ) Tj ET Q q 0 0 0 rg BT 345.80 631.20 Td (This concentration of customers and joint ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (interest owners may impact our overall credit risk because these entities may be similarly af) Tj ET Q q 0 0 0 rg BT 454.22 618.00 Td (fected by various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (economic and other conditions, including the recent global and domestic economic and financial downturn. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 591.60 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.71 591.60 Td (three) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.69 591.60 Td ( major customers, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.95 591.60 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.83 591.60 Td (, ) Tj ET Q q 0 0 0 rg BT 341.73 591.60 Td (Anadarko, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.23 591.60 Td (Plains Marketing LP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.06 591.60 Td (, which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.20 578.40 Td (26 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.31 578.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.81 578.40 Td (16 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.93 578.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.06 578.40 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.18 578.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 405.10 578.40 Td (, of our total production revenue. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 115.66 565.20 Td (Note 1 - Summary of Significant ) Tj ET Q q 0 0 0 rg BT 259.67 565.20 Td (Accounting Policies, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.45 565.20 Td (under the heading ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 435.01 565.20 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 523.82 565.20 Td (edit ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (Risk and Major Customers) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.25 552.00 Td ( in Part II, Item 8 of this report for further discussion of our concentration of credit risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (and major customers. ) Tj ET Q q 0 0 0 rg BT 149.69 538.80 Td (The loss of one or more of these customers could reduce competition for our products and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (negatively impact the prices of commodities we sell. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 500.40 Td (e have enter) Tj ET Q q 0 0 0 rg BT 111.49 500.40 Td (ed into firm transportation contracts that r) Tj ET Q q 0 0 0 rg BT 299.32 500.40 Td (equir) Tj ET Q q 0 0 0 rg BT 322.13 500.40 Td (e us to pay fixed amounts of money to our ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (counterparties r) Tj ET Q q 0 0 0 rg BT 120.78 487.20 Td (egar) Tj ET Q q 0 0 0 rg BT 140.54 487.20 Td (dless of quantities actually shipped, pr) Tj ET Q q 0 0 0 rg BT 310.00 487.20 Td (ocessed, or gather) Tj ET Q q 0 0 0 rg BT 390.55 487.20 Td (ed. If we ar) Tj ET Q q 0 0 0 rg BT 443.00 487.20 Td (e unable to deliver the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (necessary quantities of natural gas to our counterparties, our r) Tj ET Q q 0 0 0 rg BT 327.64 474.00 Td (esults of operations and liquidity could be adversely ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (affected.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 435.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 435.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 435.60 Td (, we were contractually committed to deliver ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.09 435.60 Td (1,807) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.84 435.60 Td ( Bcf of natural gas and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.47 435.60 Td (53) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.47 435.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (MMBbl of oil pursuant to contracts expiring at various dates through 2023. ) Tj ET Q q 0 0 0 rg BT 386.47 422.40 Td (W) Tj ET Q q 0 0 0 rg BT 395.97 422.40 Td (e may enter into additional firm ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (transportation agreements as our development of our resource plays expands. ) Tj ET Q q 0 0 0 rg BT 394.56 409.20 Td (At the current time, we do not have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (enough proved developed reserves to of) Tj ET Q q 0 0 0 rg BT 225.44 396.00 Td (fset these contractual liabilities, but we intend to develop reserves that will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (exceed the commitments and therefore do not expect any shortfalls. ) Tj ET Q q 0 0 0 rg BT 352.81 382.80 Td (W) Tj ET Q q 0 0 0 rg BT 362.31 382.80 Td (e expect our production volumes, as well as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (those of our competitors, to increase significantly in the Eagle Ford) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 346.62 369.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.37 369.60 Td (shale. ) Tj ET Q q 0 0 0 rg BT 380.02 369.60 Td (The use of firm transportation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (commitments gives us the strategic advantage of priority space in a transportation pipeline. In the event we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.20 Td (encounter delays in drilling and completing our wells or otherwise due to construction, interruptions of operations, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td (or delays in connecting new volumes to gathering systems or pipelines for an extended period of time, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (requirements to pay for quantities not delivered could have a material impact on our results of operations and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (liquidity) Tj ET Q q 0 0 0 rg BT 86.57 303.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 278.40 Td (Futur) Tj ET Q q 0 0 0 rg BT 74.65 278.40 Td (e crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 223.56 278.40 Td ( price declines or unsuccessful exploration efforts may r) Tj ET Q q 0 0 0 rg BT 470.61 278.40 Td (esult in write-downs ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td (of our asset carrying values.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 240.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 240.00 Td (e follow the successful ef) Tj ET Q q 0 0 0 rg BT 207.10 240.00 Td (forts method of accounting for our crude oil and natural gas properties. ) Tj ET Q q 0 0 0 rg BT 524.17 240.00 Td (All ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.80 Td (property acquisition costs and costs of exploratory and development wells are capitalized when incurred, pending ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (the determination of whether proved reserves have been discovered. If commercial quantities of hydrocarbons are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (not discovered with an exploratory well, the costs of drilling the well are expensed.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 175.20 Td (The capitalized costs of our crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 348.89 175.20 Td ( properties, on a depletion pool basis, cannot ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.00 Td (exceed the estimated undiscounted future net cash flows of that depletion pool. If net capitalized costs exceed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 148.80 Td (undiscounted future net revenues, we generally must write down the costs of each depletion pool to the estimated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.60 Td (discounted future net cash flows of that depletion pool. Unproved properties are evaluated at the lower of cost or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.40 Td (fair market value. ) Tj ET Q q 0 0 0 rg BT 133.18 122.40 Td (W) Tj ET Q q 0 0 0 rg BT 142.68 122.40 Td (e incurred an impairment of proved properties and impairment of unproved properties totaling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.20 Td ($172.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.78 109.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.16 109.20 Td ($46.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.44 109.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 253.37 109.20 Td (, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.34 109.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.34 109.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.84 109.20 Td ($208.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.62 109.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.00 109.20 Td ($16.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.28 109.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 521.21 109.20 Td (, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 96.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.13 96.00 Td ($219.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.91 96.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.30 96.00 Td ($7.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.08 96.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 294.00 96.00 Td (, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.97 96.00 Td (201) Tj ET Q q 0 0 0 rg BT 347.06 96.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.56 96.00 Td (. Significant declines in crude oil, natural gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (or NGL) Tj ET Q q 0 0 0 rg BT 84.11 82.80 Td ( prices in the future or unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 304.45 82.80 Td (forts could cause additional proved and/or unproved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 69.60 Td (property impairments in the future.) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 734.40 Td (e review the carrying value of our properties for indicators of impairment on a quarterly basis using the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (prices in ef) Tj ET Q q 0 0 0 rg BT 98.67 721.20 Td (fect as of the end of each quarter) Tj ET Q q 0 0 0 rg BT 241.90 721.20 Td (. Once incurred, a write-down of oil and natural gas properties cannot ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (be reversed at a later date, even if crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 332.41 708.00 Td ( prices increase.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Lower crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 215.43 682.80 Td ( prices could limit our ability to borr) Tj ET Q q 0 0 0 rg BT 377.27 682.80 Td (ow under our cr) Tj ET Q q 0 0 0 rg BT 448.05 682.80 Td (edit facility) Tj ET Q q 0 0 0 rg BT 497.23 682.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 657.60 Td (Our credit facility has a current commitment amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.50 657.60 Td ($1.3 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.23 657.60 Td (, subject to a borrowing base that the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (lenders redetermine semi-annually based on the bank group) Tj ET Q q 0 0 0 rg BT 315.44 644.40 Td (s assessment of the value of our crude oil, natural gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (and NGL) Tj ET Q q 0 0 0 rg BT 90.83 631.20 Td ( properties, which in turn is impacted by crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 409.95 631.20 Td ( prices. ) Tj ET Q q 0 0 0 rg BT 447.02 631.20 Td (The current borrowing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (base under our credit facility is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.28 618.00 Td ($2.2 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.01 618.00 Td (. Declines in crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 432.65 618.00 Td ( prices in the future could ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (limit our borrowing base and reduce the amount we can borrow under our credit facility) Tj ET Q q 0 0 0 rg BT 435.99 604.80 Td (. ) Tj ET Q q 0 0 0 rg BT 443.63 604.80 Td (Additionally) Tj ET Q q 0 0 0 rg BT 498.52 604.80 Td (, divestitures ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (of properties could result in a reduction of our borrowing base.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (The amount of our debt may limit our ability to obtain financing for acquisitions, make us mor) Tj ET Q q 0 0 0 rg BT 465.44 566.40 Td (e vulnerable to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (adverse economic conditions, and make it mor) Tj ET Q q 0 0 0 rg BT 254.57 553.20 Td (e difficult for us to make payments on our debt.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 528.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 528.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 528.00 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.04 528.00 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.82 528.00 Td ( of long-term senior unsecured debt outstanding relating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (to our 6.625% Senior Notes due 2019 \(the 2019 Notes\) that we issued on February 7, 201) Tj ET Q q 0 0 0 rg BT 453.46 514.80 Td (1; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.77 514.80 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.55 514.80 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (long-term senior unsecured debt outstanding relating to our 6.50% Senior Notes due 2021 \(the 2021 Notes\) that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (we issued on November 8, 201) Tj ET Q q 0 0 0 rg BT 185.85 488.40 Td (1; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 197.15 488.40 Td ($400.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.93 488.40 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (6.50% Senior Notes due 2023 \(the 2023 Notes\) that we issued on June 29, 2012; and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.54 475.20 Td ($500.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.32 475.20 Td ( of long-term ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (senior unsecured debt outstanding relating to our 5.0% Senior Notes due 2024 \(the 2024 Notes\) that we issued on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (May 20, 2013 \(collectively) Tj ET Q q 0 0 0 rg BT 168.42 448.80 Td (, the 2019 Notes, the 2021 Notes, the 2023 Notes, and the 2024 Notes are referred to as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (our Senior Notes\); and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 162.41 435.60 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.41 435.60 Td ( outstanding borrowings under our secured credit facility) Tj ET Q q 0 0 0 rg BT 422.88 435.60 Td (. ) Tj ET Q q 0 0 0 rg BT 430.93 435.60 Td (W) Tj ET Q q 0 0 0 rg BT 440.43 435.60 Td (e had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.69 435.60 Td (three) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.68 435.60 Td ( outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (letters of credit in the aggregate amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.98 422.40 Td ($808,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.23 422.40 Td ( \(which reduce the amount available for borrowing under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (facility on a dollar) Tj ET Q q 0 0 0 rg BT 130.72 409.20 Td (-for) Tj ET Q q 0 0 0 rg BT 146.99 409.20 Td (-dollar basis\), resulting in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.78 409.20 Td ($1,299.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.81 409.20 Td ( of available debt capacity under our credit facility) Tj ET Q q 0 0 0 rg BT 557.43 409.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (assuming the borrowing conditions under this facility will be met. Our long-term debt represented ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.85 396.00 Td (50 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.96 396.00 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (our total book capitalization as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 200.29 382.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.73 382.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 357.60 Td (Our indebtedness could have important consequences for our operations, including:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 332.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 332.40 Td (making it more dif) Tj ET Q q 0 0 0 rg BT 185.98 332.40 Td (ficult for us to obtain additional financing in the future for our operations and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 319.20 Td (potential acquisitions, working capital requirements, capital expenditures, debt service, or other general ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 306.00 Td (corporate requirements;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 280.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 280.80 Td (requiring us to dedicate a substantial portion of our cash flows from operations to the repayment of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 267.60 Td (debt and the service of interest costs associated with our debt, rather than to productive investments;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 242.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 242.40 Td (limiting our operating flexibility due to financial and other restrictive covenants, including restrictions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 229.20 Td (on incurring additional debt, making acquisitions, and paying dividends;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 204.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 204.00 Td (placing us at a competitive disadvantage compared to our competitors that have less debt; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 178.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 178.80 Td (making us more vulnerable in the event of adverse economic or industry conditions or a downturn in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 165.60 Td (our business.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 140.40 Td (Our ability to make payments on our debt, refinance our debt, and fund planned capital expenditures will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 127.20 Td (depend on our ability to generate cash in the future. ) Tj ET Q q 0 0 0 rg BT 281.95 127.20 Td (This, to a certain extent, is subject to general economic, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 114.00 Td (financial, competitive, legislative, regulatory) Tj ET Q q 0 0 0 rg BT 246.60 114.00 Td (, and other factors that are beyond our control. If our business does not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 100.80 Td (generate suf) Tj ET Q q 0 0 0 rg BT 103.24 100.80 Td (ficient cash flow from operations or future suf) Tj ET Q q 0 0 0 rg BT 306.17 100.80 Td (ficient borrowings are not available to us under our credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 87.60 Td (facility or from other sources, we might not be able to service our debt or fund our other liquidity needs. If we are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 74.40 Td (unable to service our debt, due to inadequate liquidity or otherwise, we may have to delay or cancel acquisitions, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 61.20 Td (defer capital expenditures, sell equity securities, divest assets, and/or restructure or refinance our debt. ) Tj ET Q q 0 0 0 rg BT 505.22 61.20 Td (W) Tj ET Q q 0 0 0 rg BT 514.72 61.20 Td (e might ) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (40) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (not be able to sell our equity) Tj ET Q q 0 0 0 rg BT 174.53 734.40 Td (, sell our assets, or restructure or refinance our debt on a timely basis or on satisfactory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (terms or at all. In addition, the terms of our existing or future debt agreements, including our existing and future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (credit agreements, may prohibit us from pursuing any of these alternatives. Further) Tj ET Q q 0 0 0 rg BT 417.35 708.00 Td (, changes in the credit ratings of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (our debt may negatively af) Tj ET Q q 0 0 0 rg BT 167.70 694.80 Td (fect the cost, terms, conditions, and availability of future financing. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 669.60 Td (Our debt agreements, including the agreement governing our credit facility and the indentures governing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (the Senior Notes, permit us to incur additional debt in the future, subject to compliance with restrictive covenants ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (under those agreements. In addition, entities we may acquire in the future could have significant amounts of debt ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (outstanding that we could be required to assume, and in some cases accelerate repayment thereof, in connection ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (with the acquisition, or we may incur our own significant indebtedness to consummate an acquisition.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 591.60 Td (As discussed above, our credit facility is subject to periodic borrowing base redeterminations. ) Tj ET Q q 0 0 0 rg BT 503.69 591.60 Td (W) Tj ET Q q 0 0 0 rg BT 513.19 591.60 Td (e could be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (forced to repay a portion of our bank borrowings in the event of a downward redetermination of our borrowing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (base, and we may not have suf) Tj ET Q q 0 0 0 rg BT 184.51 565.20 Td (ficient funds to make such repayment at that time. If we do not have suf) Tj ET Q q 0 0 0 rg BT 503.21 565.20 Td (ficient funds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (and are otherwise unable to negotiate renewals of our borrowing base or arrange new financing, we may be forced ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (to sell significant assets.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (The agr) Tj ET Q q 0 0 0 rg BT 84.12 513.60 Td (eements governing our debt contain various covenants that limit our discr) Tj ET Q q 0 0 0 rg BT 410.00 513.60 Td (etion in the operation of our ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (business, could pr) Tj ET Q q 0 0 0 rg BT 129.34 500.40 Td (ohibit us fr) Tj ET Q q 0 0 0 rg BT 177.22 500.40 Td (om engaging in transactions we believe to be beneficial, and could lead to the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (accelerated r) Tj ET Q q 0 0 0 rg BT 107.93 487.20 Td (epayment of our debt.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 462.00 Td (Our debt agreements contain restrictive covenants that limit our ability to engage in activities that may be in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (our long-term best interests. Our ability to borrow under our credit facility is subject to compliance with certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (financial covenants, including \(i\) maintenance of a quarterly ratio of total debt to 12-month trailing consolidated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (earnings before interest, taxes, depreciation, amortization, and exploration expense of less than 4.0, and \(ii\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (maintenance of an adjusted current ratio of no less than 1.0, each as defined in our credit facility) Tj ET Q q 0 0 0 rg BT 472.93 409.20 Td (. Our credit facility ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (also requires us to comply with certain financial covenants, including requirements that we maintain certain levels ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (of stockholders) Tj ET Q q 0 0 0 rg BT 120.36 382.80 Td ( equity and limit our annual cash dividends to no more than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.92 382.80 Td ($50.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.20 382.80 Td (. ) Tj ET Q q 0 0 0 rg BT 452.25 382.80 Td (These restrictions on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (ability to operate our business could seriously harm our business by) Tj ET Q q 0 0 0 rg BT 347.46 369.60 Td (, among other things, limiting our ability to take ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (advantage of financings, mer) Tj ET Q q 0 0 0 rg BT 177.47 356.40 Td (gers and acquisitions, and other corporate opportunities.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 331.20 Td (The respective indentures governing the Senior Notes also contain covenants that, among other things, limit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (our ability and the ability of our subsidiaries to:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 292.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 292.80 Td (incur additional debt;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 266.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 266.40 Td (make certain dividends or pay dividends or distributions on our capital stock or purchase, redeem, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 253.20 Td (or retire capital stock;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 226.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 226.80 Td (sell assets, including capital stock of our subsidiaries;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 200.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 200.40 Td (restrict dividends or other payments of our subsidiaries;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 174.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 174.00 Td (create liens that secure debt;) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 147.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 147.60 Td (enter into transactions with af) Tj ET Q q 0 0 0 rg BT 252.54 147.60 Td (filiates; and) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 121.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.00 121.20 Td (mer) Tj ET Q q 0 0 0 rg BT 138.90 121.20 Td (ge or consolidate with another company) Tj ET Q q 0 0 0 rg BT 314.44 121.20 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 96.00 Td (Our failure to comply with these covenants could result in an event of default that, if not cured or waived, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (could result in the acceleration of all or a portion of our indebtedness. ) Tj ET Q q 0 0 0 rg BT 361.67 82.80 Td (W) Tj ET Q q 0 0 0 rg BT 371.18 82.80 Td (e do not have suf) Tj ET Q q 0 0 0 rg BT 446.12 82.80 Td (ficient working capital to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 69.60 Td (satisfy our debt obligations in the event of an acceleration of all or a significant portion of our outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 56.40 Td (indebtedness.) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (41) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 734.40 Td (e ar) Tj ET Q q 0 0 0 rg BT 75.16 734.40 Td (e subject to operating and envir) Tj ET Q q 0 0 0 rg BT 214.97 734.40 Td (onmental risks and hazar) Tj ET Q q 0 0 0 rg BT 326.10 734.40 Td (ds that could r) Tj ET Q q 0 0 0 rg BT 389.55 734.40 Td (esult in substantial losses or liabilities ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (that may not be fully insur) Tj ET Q q 0 0 0 rg BT 165.39 721.20 Td (ed.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (Crude oil and natural gas operations are subject to many risks, including human error and accidents that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (could cause personal injury) Tj ET Q q 0 0 0 rg BT 169.94 682.80 Td (, death and property damage, well blowouts, craterings, explosions, uncontrollable flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (of crude oil, natural gas and associated liquids or well fluids, migration of fracture fluids into surrounding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (groundwater) Tj ET Q q 0 0 0 rg BT 105.15 656.40 Td (, spills or releases from facilities and equipment used to deliver these materials, spills or releases of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (brine or other produced or flowback water) Tj ET Q q 0 0 0 rg BT 235.87 643.20 Td (, subsurface conditions that prevent us from stimulating the planned ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (number of stages, accessing the entirety of the wellbore with our tools during completion, or removing fracturing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (materials from the wellbore to allow production to begin,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.02 616.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.52 616.80 Td (fires, adverse weather such as hurricanes or tornadoes, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (freezing conditions, floods, droughts, formations with abnormal pressures, pipeline ruptures or spills, pollution, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (releases of toxic gas such as hydrogen sulfide, and other environmental risks and hazards. If any of these types of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (events occurs, we could sustain substantial losses.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 552.00 Td (Furthermore, if we experience any of the problems with well stimulation and completion activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (referenced above, such as hydraulic fracturing, our ability to explore for and produce crude oil, natural gas, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (NGLs may be adversely af) Tj ET Q q 0 0 0 rg BT 167.70 525.60 Td (fected. ) Tj ET Q q 0 0 0 rg BT 202.62 525.60 Td (W) Tj ET Q q 0 0 0 rg BT 212.12 525.60 Td (e could incur substantial losses or otherwise fail to realize reserves in particular ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (formations as a result of the need to shutdown, abandon and relocate drilling operations, the need to sample, test ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (and monitor drinking water in particular areas and to provide filtration or other drinking water supplies to users of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (water supplies that may have been impacted or threatened by potential contamination from fracturing fluids, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (need to modify drill sites to ensure there are no spills or releases of) Tj ET Q q 0 0 0 rg BT 344.58 472.80 Td (f-site and to investigate and/or remediate any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (spills or releases that might have occurred, and suspension of our operations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 433.20 Td (There is inherent risk of incurring significant environmental costs and liabilities in our operations due to our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (current and past generation, handling and disposal of materials, including solid and hazardous wastes and petroleum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (hydrocarbons. ) Tj ET Q q 0 0 0 rg BT 117.92 406.80 Td (W) Tj ET Q q 0 0 0 rg BT 127.42 406.80 Td (e may incur joint and several, strict liability under applicable United States federal and state ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (environmental laws in connection with releases of petroleum hydrocarbons and other hazardous substances at, on, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (under or from our leased or owned properties, some of which have been used for natural gas and oil exploration and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 367.20 Td (production activities for a number of years, often by third parties not under our control. For our outside operated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.00 Td (properties, we are dependent on the operator for operational and regulatory compliance, and could be subject to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 340.80 Td (liabilities in the event of non-compliance. ) Tj ET Q q 0 0 0 rg BT 238.58 340.80 Td (These properties and the wastes disposed thereon or away from could be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 327.60 Td (subject to stringent and costly investigatory or remedial requirements under applicable laws, some of which are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 314.40 Td (strict liability laws without regard to fault or the legality of the original conduct, including the CERCLA) Tj ET Q q 0 0 0 rg BT 508.55 314.40 Td ( or the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.20 Td (Superfund law) Tj ET Q q 0 0 0 rg BT 113.74 301.20 Td (, the RCRA, the Clean ) Tj ET Q q 0 0 0 rg BT 215.28 301.20 Td (W) Tj ET Q q 0 0 0 rg BT 224.79 301.20 Td (ater ) Tj ET Q q 0 0 0 rg BT 243.41 301.20 Td (Act, the CAA, the OP) Tj ET Q q 0 0 0 rg BT 338.95 301.20 Td (A, and analogous state laws. Under any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 288.00 Td (implementing regulations, we could be required to remove or remediate previously disposed wastes \(including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 274.80 Td (wastes disposed of or released by prior owners or operators\) or property contamination \(including groundwater ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 261.60 Td (contamination\), to perform natural resource mitigation or restoration practices, or to perform remedial plugging or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 248.40 Td (closure operations to prevent future contamination. In addition, it is not uncommon for neighboring landowners ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.20 Td (and other third parties to file claims for personal injury or property damage allegedly caused by the release of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 222.00 Td (petroleum hydrocarbons or other hazardous substances into the environment. ) Tj ET Q q 0 0 0 rg BT 393.66 222.00 Td (As a result, we may incur substantial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.80 Td (liabilities to third parties or governmental entities, which could reduce or eliminate funds available for exploration, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.60 Td (development, or acquisitions, or cause us to incur losses.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 170.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 170.40 Td (e maintain insurance against some, but not all, of these potential risks and losses. ) Tj ET Q q 0 0 0 rg BT 457.00 170.40 Td (W) Tj ET Q q 0 0 0 rg BT 466.50 170.40 Td (e have significant but ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 157.20 Td (limited coverage for sudden environmental damage. ) Tj ET Q q 0 0 0 rg BT 284.38 157.20 Td (W) Tj ET Q q 0 0 0 rg BT 293.89 157.20 Td (e do not believe that insurance coverage for the full potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 144.00 Td (liability that could be caused by sudden environmental damage or insurance coverage for environmental damage ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 130.80 Td (that occurs over time is available at a reasonable cost. In addition, pollution and environmental risks generally are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 117.60 Td (not fully insurable. Further) Tj ET Q q 0 0 0 rg BT 170.84 117.60 Td (, we may elect not to obtain other insurance coverage under circumstances where we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 104.40 Td (believe that the cost of available insurance is excessive relative to the risks to which we are subject. ) Tj ET Q q 0 0 0 rg BT 492.90 104.40 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 547.17 104.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 91.20 Td (we may be subject to liability or may lose substantial assets in the event of environmental or other damages. If a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 78.00 Td (significant accident or other event occurs and is not fully covered by insurance, we could suf) Tj ET Q q 0 0 0 rg BT 457.89 78.00 Td (fer a material loss.) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (42) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Following severe ) Tj ET Q q 0 0 0 rg BT 164.21 734.40 Td (Atlantic hurricanes in recent years, the insurance markets suf) Tj ET Q q 0 0 0 rg BT 432.49 734.40 Td (fered significant losses. ) Tj ET Q q 0 0 0 rg BT 540.94 734.40 Td (As a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (result, insurance coverage for wind storms has been substantially more expensive, and future availability and costs ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (of coverage are uncertain.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Our operations ar) Tj ET Q q 0 0 0 rg BT 129.65 682.80 Td (e subject to complex laws and r) Tj ET Q q 0 0 0 rg BT 267.94 682.80 Td (egulations, including envir) Tj ET Q q 0 0 0 rg BT 385.77 682.80 Td (onmental r) Tj ET Q q 0 0 0 rg BT 433.33 682.80 Td (egulations that r) Tj ET Q q 0 0 0 rg BT 505.65 682.80 Td (esult in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (substantial costs and other risks.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 644.40 Td (Federal, state, tribal, and local authorities extensively regulate the oil and natural gas industry) Tj ET Q q 0 0 0 rg BT 497.04 644.40 Td (. Legislation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (and regulations af) Tj ET Q q 0 0 0 rg BT 128.61 631.20 Td (fecting the industry are under constant review for amendment or expansion, raising the possibility ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (of changes that may become more stringent and, as a result, may af) Tj ET Q q 0 0 0 rg BT 345.47 618.00 Td (fect, among other things, the pricing or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (marketing of crude oil, natural gas and NGL) Tj ET Q q 0 0 0 rg BT 245.08 604.80 Td ( production. Noncompliance with statutes and regulations and more ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (vigorous enforcement of such statutes and regulations by regulatory agencies may lead to substantial administrative, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (civil, and criminal penalties, including the assessment of natural resource damages, the imposition of significant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (investigatory and remedial obligations and may also result in the suspension or termination of our operations. ) Tj ET Q q 0 0 0 rg BT 536.76 565.20 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (overall regulatory burden on the industry increases the cost to place, design, drill, complete, install, operate, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (abandon wells and related facilities and, in turn, decreases profitability) Tj ET Q q 0 0 0 rg BT 360.54 538.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 513.60 Td (Governmental authorities regulate various aspects of drilling for and the production of crude oil, natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (gas, and NGLs, including the permit and bonding requirements of drilling wells, the spacing of wells, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (unitization or pooling of interests in crude oil and natural gas properties, rights-of-way and easements, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (environmental matters, occupational health and safety) Tj ET Q q 0 0 0 rg BT 286.92 474.00 Td (, the sharing of markets, production limitations, plugging, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (abandonment, and restoration standards, oil and gas operations, and restoration. Public interest in environmental ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (protection has increased in recent years, and environmental or) Tj ET Q q 0 0 0 rg BT 322.55 447.60 Td (ganizations have opposed, with some success, certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (projects. Under certain circumstances, regulatory authorities may deny a proposed permit or right-of-way grant or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (impose conditions of approval to mitigate potential environmental impacts, which could, in either case, negatively ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (af) Tj ET Q q 0 0 0 rg BT 58.35 408.00 Td (fect our ability to explore or develop certain properties. Federal authorities also may require any of our ongoing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (or planned operations on federal leases to be delayed, suspended, or terminated. ) Tj ET Q q 0 0 0 rg BT 406.16 394.80 Td (Any such delay) Tj ET Q q 0 0 0 rg BT 473.87 394.80 Td (, suspension, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (termination could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 253.82 381.60 Td (fect on our operations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 356.40 Td (Our operations are also subject to complex and constantly changing environmental laws and regulations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.20 Td (adopted by federal, state, tribal and local governmental authorities in jurisdictions where we are engaged in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td (exploration or production operations. New laws or regulations, or changes to current requirements, including the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (designation of previously unprotected wildlife or plant species as threatened or endangered in areas we operate, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (could result in material costs or claims with respect to properties we own or have owned. ) Tj ET Q q 0 0 0 rg BT 446.91 303.60 Td (W) Tj ET Q q 0 0 0 rg BT 456.41 303.60 Td (e will continue to be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (subject to uncertainty associated with new regulatory interpretations and inconsistent interpretations between state ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (and federal agencies. Under existing or future environmental laws and regulations, we could incur significant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (liability) Tj ET Q q 0 0 0 rg BT 83.50 264.00 Td (, including joint and several, strict liability under federal, state, and tribal environmental laws for noise ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (emissions and for dischar) Tj ET Q q 0 0 0 rg BT 161.92 250.80 Td (ges of crude oil, natural gas, and associated liquids or other pollutants into the air) Tj ET Q q 0 0 0 rg BT 518.89 250.80 Td (, soil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (surface water) Tj ET Q q 0 0 0 rg BT 108.49 237.60 Td (, or groundwater) Tj ET Q q 0 0 0 rg BT 180.89 237.60 Td (. ) Tj ET Q q 0 0 0 rg BT 188.94 237.60 Td (W) Tj ET Q q 0 0 0 rg BT 198.44 237.60 Td (e could be required to spend substantial amounts on investigations, litigation, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (remediation for these emissions and dischar) Tj ET Q q 0 0 0 rg BT 242.55 224.40 Td (ges and other compliance issues. ) Tj ET Q q 0 0 0 rg BT 391.32 224.40 Td (Any unpermitted release of petroleum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (or other pollutants from our operations could result not only in cleanup costs, but also natural resources, real or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (personal property and other compensatory damages and civil and criminal liability) Tj ET Q q 0 0 0 rg BT 412.17 198.00 Td (. ) Tj ET Q q 0 0 0 rg BT 420.22 198.00 Td (The listing of additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (wildlife or plant species as federally endangered or threatened could result in limitations on exploration and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 171.60 Td (production activities in certain locations. Existing environmental laws or regulations, as currently interpreted or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.40 Td (enforced, or as they may be interpreted, enforced, or altered in the future, may have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 520.13 158.40 Td (fect on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.20 Td (us.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 118.80 Td (Seasonal weather conditions and lease stipulations adversely affect our ability to conduct drilling activities in some ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 105.60 Td (of the ar) Tj ET Q q 0 0 0 rg BT 86.87 105.60 Td (eas wher) Tj ET Q q 0 0 0 rg BT 125.87 105.60 Td (e we operate.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 79.20 Td (Operations in certain of our regions, such as our Rocky Mountain and Permian regions, are adversely ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 66.00 Td (af) Tj ET Q q 0 0 0 rg BT 58.35 66.00 Td (fected by seasonal weather conditions and lease stipulations designed to protect various wildlife or plant species. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 52.80 Td (In certain areas on federal lands, drilling and other oil and natural gas activities can only be conducted during ) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (43) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (limited times of the year) Tj ET Q q 0 0 0 rg BT 156.92 734.40 Td (. ) Tj ET Q q 0 0 0 rg BT 164.97 734.40 Td (This limits our ability to operate in those areas and can intensify competition during those ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (times for drilling rigs, oil field equipment, services, supplies and qualified personnel, which may lead to periodic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (shortages. ) Tj ET Q q 0 0 0 rg BT 99.60 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 109.54 708.00 Td (ildlife seasonal restrictions may limit access to federal leases or across federal lands. Possible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (restrictions may include seasonal restrictions in greater sage-grouse habitat during breeding and nesting seasons, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (within a certain distance of active raptor nests during fledging, and in big game winter or parturition ranges during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (winter or calving seasons. ) Tj ET Q q 0 0 0 rg BT 169.55 668.40 Td (These constraints and the resulting shortages or high costs could delay our operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (and materially increase our operating and capital costs. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 630.00 Td (oposed federal and state legislative and r) Tj ET Q q 0 0 0 rg BT 242.27 630.00 Td (egulatory initiatives r) Tj ET Q q 0 0 0 rg BT 337.18 630.00 Td (elating to hydraulic fracturing could r) Tj ET Q q 0 0 0 rg BT 505.12 630.00 Td (esult in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (incr) Tj ET Q q 0 0 0 rg BT 67.31 616.80 Td (eased costs and additional operating r) Tj ET Q q 0 0 0 rg BT 236.48 616.80 Td (estrictions or delays.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 590.40 Td (Hydraulic fracturing is an essential and common practice in the oil and gas industry used to stimulate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (production of oil, natural gas and associated liquids from dense subsurface rock formations. ) Tj ET Q q 0 0 0 rg BT 459.14 577.20 Td (W) Tj ET Q q 0 0 0 rg BT 468.64 577.20 Td (e routinely apply ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (hydraulic fracturing techniques to many of our oil and natural gas properties, including our unconventional resource ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (plays in the Eagle Ford shale of south ) Tj ET Q q 0 0 0 rg BT 218.44 550.80 Td (T) Tj ET Q q 0 0 0 rg BT 224.39 550.80 Td (exas and the Bakken/Three Forks formations in North Dakota. Hydraulic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (fracturing involves using water) Tj ET Q q 0 0 0 rg BT 186.72 537.60 Td (, sand and certain chemicals to fracture the hydrocarbon-bearing rock formation to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (allow the flow of hydrocarbons into the wellbore. ) Tj ET Q q 0 0 0 rg BT 273.41 524.40 Td (The process is typically regulated by state oil and natural gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (commissions. However) Tj ET Q q 0 0 0 rg BT 155.57 511.20 Td (, the EP) Tj ET Q q 0 0 0 rg BT 189.09 511.20 Td (A) Tj ET Q q 0 0 0 rg BT 196.43 511.20 Td ( and other federal agencies have asserted federal regulatory authority over certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (aspects of hydraulic fracturing activities as outlined below) Tj ET Q q 0 0 0 rg BT 306.17 498.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 471.60 Td (The EP) Tj ET Q q 0 0 0 rg BT 117.68 471.60 Td (A) Tj ET Q q 0 0 0 rg BT 125.02 471.60 Td ( has authority to regulate under) Tj ET Q q 0 0 0 rg BT 261.97 471.60 Td (ground injections that contain diesel in the fluid system under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (SDW) Tj ET Q q 0 0 0 rg BT 73.22 458.40 Td (A. ) Tj ET Q q 0 0 0 rg BT 89.22 458.40 Td (The EP) Tj ET Q q 0 0 0 rg BT 120.90 458.40 Td (A) Tj ET Q q 0 0 0 rg BT 128.24 458.40 Td ( has published draft guidance documents related to regulation of fracturing fluids using this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (regulatory authority) Tj ET Q q 0 0 0 rg BT 136.95 445.20 Td (. ) Tj ET Q q 0 0 0 rg BT 145.00 445.20 Td (The EP) Tj ET Q q 0 0 0 rg BT 176.68 445.20 Td (A) Tj ET Q q 0 0 0 rg BT 184.02 445.20 Td ( also plans to update its chloride water quality criteria for the protection of aquatic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (life under the Clean ) Tj ET Q q 0 0 0 rg BT 139.60 432.00 Td (W) Tj ET Q q 0 0 0 rg BT 149.10 432.00 Td (ater ) Tj ET Q q 0 0 0 rg BT 167.73 432.00 Td (Act. Flowback and produced water from the hydraulic fracturing process contain total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (dissolved solids, including chlorides, and regulation of these fluids could be af) Tj ET Q q 0 0 0 rg BT 395.32 418.80 Td (fected by the new criteria. ) Tj ET Q q 0 0 0 rg BT 515.14 418.80 Td (The EP) Tj ET Q q 0 0 0 rg BT 546.82 418.80 Td (A) Tj ET Q q 0 0 0 rg BT 554.16 418.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (has delayed issuing a draft criteria document until 2014. ) Tj ET Q q 0 0 0 rg BT 302.43 405.60 Td (The EP) Tj ET Q q 0 0 0 rg BT 334.10 405.60 Td (A) Tj ET Q q 0 0 0 rg BT 341.44 405.60 Td ( has also announced that it will develop pre-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (treatment standards for disposal of wastewater produced from shale gas operations through publicly owned ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (treatment works. ) Tj ET Q q 0 0 0 rg BT 129.22 379.20 Td (The regulations will be developed under the EP) Tj ET Q q 0 0 0 rg BT 337.46 379.20 Td (A) Tj ET Q q 0 0 0 rg BT 344.19 379.20 Td () Tj ET Q q 0 0 0 rg BT 347.24 379.20 Td (s Ef) Tj ET Q q 0 0 0 rg BT 364.46 379.20 Td (fluent Guidelines Program under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (authority of the Clean ) Tj ET Q q 0 0 0 rg BT 148.77 366.00 Td (W) Tj ET Q q 0 0 0 rg BT 158.28 366.00 Td (ater ) Tj ET Q q 0 0 0 rg BT 176.90 366.00 Td (Act. ) Tj ET Q q 0 0 0 rg BT 200.84 366.00 Td (The EP) Tj ET Q q 0 0 0 rg BT 232.52 366.00 Td (A) Tj ET Q q 0 0 0 rg BT 239.85 366.00 Td ( anticipates issuing the proposed rules in 2014.If the EP) Tj ET Q q 0 0 0 rg BT 489.36 366.00 Td (A) Tj ET Q q 0 0 0 rg BT 496.69 366.00 Td ( implements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (further regulations of hydraulic fracturing, we may incur additional costs to comply with such requirements that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (may be significant in nature, experience delays or curtailment in the pursuit of exploration, development, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (production activities, and could even be prohibited from drilling and/or completing certain wells.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 300.00 Td (Certain states that we operate in, including ) Tj ET Q q 0 0 0 rg BT 276.41 300.00 Td (T) Tj ET Q q 0 0 0 rg BT 282.36 300.00 Td (exas and ) Tj ET Q q 0 0 0 rg BT 323.09 300.00 Td (W) Tj ET Q q 0 0 0 rg BT 332.81 300.00 Td (yoming, have adopted, and other states are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (considering adopting, regulations that could impose more stringent permitting, public disclosure, waste disposal, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (and well construction requirements on hydraulic fracturing operations or otherwise seek to ban fracturing activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (altogether) Tj ET Q q 0 0 0 rg BT 93.37 260.40 Td (. For example, ) Tj ET Q q 0 0 0 rg BT 162.21 260.40 Td (T) Tj ET Q q 0 0 0 rg BT 168.16 260.40 Td (exas adopted a law in June 201) Tj ET Q q 0 0 0 rg BT 304.61 260.40 Td (1 requiring disclosure to the Railroad Commission of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.20 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 247.20 Td (exas and the public of certain information regarding the components and volume of water used in the hydraulic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.00 Td (fracturing process. In addition to state laws, local land use restrictions, such as city ordinances, may restrict or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td (prohibit the performance of drilling in general and/or hydraulic fracturing in particular) Tj ET Q q 0 0 0 rg BT 429.67 220.80 Td (. Recently) Tj ET Q q 0 0 0 rg BT 476.30 220.80 Td (, several ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (municipalities have passed or proposed zoning ordinances that ban or strictly regulate hydraulic fracturing within ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 194.40 Td (city boundaries. For example, the city of Longmont, Colorado is currently in litigation with the State of Colorado ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 181.20 Td (to uphold the city) Tj ET Q q 0 0 0 rg BT 130.35 181.20 Td (s ordinance that bans hydraulic fracturing. Similar events and processes are playing out in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 168.00 Td (several cities, counties, and townships across the United States. In the event state, local, or municipal legal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 154.80 Td (restrictions are adopted in areas where we are currently conducting, or in the future plan to conduct, operations, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 141.60 Td (may incur additional costs to comply with such requirements that may be significant in nature, experience delays or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 128.40 Td (curtailment in the pursuit of exploration, development, or production activities, and could even be prohibited from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 115.20 Td (drilling and/or completing certain wells.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 88.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 88.80 Td (Several agencies of the federal governmental are actively involved in studies or reviews that focus on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 75.60 Td (environmental aspects and impacts of hydraulic fracturing practices. ) Tj ET Q q 0 0 0 rg BT 355.85 75.60 Td (The ) Tj ET Q q 0 0 0 rg BT 375.50 75.60 Td (White House Council on Environmental ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 62.40 Td (Quality is coordinating a review of hydraulic fracturing practices, and a committee of the United States House of ) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (44) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Representatives has conducted an investigation of hydraulic fracturing practices and government studies related ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (thereto. Furthermore, a number of federal agencies are analyzing, or have been requested to review) Tj ET Q q 0 0 0 rg BT 487.86 721.20 Td (, a variety of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (environmental issues associated with hydraulic fracturing. ) Tj ET Q q 0 0 0 rg BT 311.28 708.00 Td (The EP) Tj ET Q q 0 0 0 rg BT 342.96 708.00 Td (A) Tj ET Q q 0 0 0 rg BT 350.30 708.00 Td ( has commenced a study of the potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (environmental ef) Tj ET Q q 0 0 0 rg BT 124.63 694.80 Td (fects of hydraulic fracturing on drinking water and groundwater) Tj ET Q q 0 0 0 rg BT 405.03 694.80 Td (. ) Tj ET Q q 0 0 0 rg BT 413.09 694.80 Td (The EP) Tj ET Q q 0 0 0 rg BT 444.76 694.80 Td (A) Tj ET Q q 0 0 0 rg BT 452.10 694.80 Td ( issued a progress report ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (in 2012, and plans to issue a draft report of results in 2014 for public comment and independent peer review by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (Science ) Tj ET Q q 0 0 0 rg BT 86.35 668.40 Td (Advisory Board. ) Tj ET Q q 0 0 0 rg BT 164.97 668.40 Td (The United States Department of Ener) Tj ET Q q 0 0 0 rg BT 333.69 668.40 Td (gy is actively involved in research on hydraulic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (fracturing practices, including groundwater protection. ) Tj ET Q q 0 0 0 rg BT 295.58 655.20 Td (Also, the United States Department of the Interior proposed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (a rule to regulate hydraulic fracturing on public lands in May of 2013. ) Tj ET Q q 0 0 0 rg BT 363.52 642.00 Td (The proposed rule contains disclosure ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (requirements and other mandates for well integrity and management of water produced by the process, and will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (likely be finalized in 2014. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 589.20 Td (Legislation has been introduced before Congress, including during the 1) Tj ET Q q 0 0 0 rg BT 403.29 589.20 Td (13th Congress, to provide for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (federal regulation of hydraulic fracturing and to require disclosure of the chemicals used in the hydraulic fracturing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.80 Td (process. If hydraulic fracturing is regulated at the federal level, our fracturing activities could become subject to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td (additional permit or disclosure requirements, associated permitting delays, operational restrictions, litigation risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (and potential cost increases. ) Tj ET Q q 0 0 0 rg BT 178.29 536.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 233.19 536.40 Td (, certain members of Congress have called upon the United States ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (Government ) Tj ET Q q 0 0 0 rg BT 107.13 523.20 Td (Accountability Of) Tj ET Q q 0 0 0 rg BT 186.66 523.20 Td (fice to investigate how hydraulic fracturing might adversely af) Tj ET Q q 0 0 0 rg BT 461.36 523.20 Td (fect water resources, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (the SEC to investigate the natural gas industry and any possible misleading of investors or the public regarding the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.80 Td (economic feasibility of pursuing natural gas deposits in shales by means of hydraulic fracturing, and the United ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.60 Td (States Ener) Tj ET Q q 0 0 0 rg BT 99.59 483.60 Td (gy Information ) Tj ET Q q 0 0 0 rg BT 168.02 483.60 Td (Administration to provide a better understanding of that agency) Tj ET Q q 0 0 0 rg BT 450.89 483.60 Td (s estimates regarding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.40 Td (natural gas reserves, including reserves from shale formations, as well as uncertainties associated with those ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 457.20 Td (estimates. ) Tj ET Q q 0 0 0 rg BT 98.98 457.20 Td (The United States Geological Survey Of) Tj ET Q q 0 0 0 rg BT 276.88 457.20 Td (fices of Ener) Tj ET Q q 0 0 0 rg BT 332.87 457.20 Td (gy Resources Program, ) Tj ET Q q 0 0 0 rg BT 437.77 457.20 Td (W) Tj ET Q q 0 0 0 rg BT 447.27 457.20 Td (ater Resources and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 444.00 Td (Natural Hazards and Environmental Health Of) Tj ET Q q 0 0 0 rg BT 254.75 444.00 Td (fices also have ongoing research projects on hydraulic fracturing. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 430.80 Td (These ongoing studies, depending on their course and outcomes, could spur initiatives to further regulate hydraulic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 417.60 Td (fracturing under the SDW) Tj ET Q q 0 0 0 rg BT 163.32 417.60 Td (A) Tj ET Q q 0 0 0 rg BT 170.66 417.60 Td ( or other regulatory processes.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 391.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 391.20 Td (Further) Tj ET Q q 0 0 0 rg BT 117.94 391.20 Td (, on ) Tj ET Q q 0 0 0 rg BT 136.58 391.20 Td (August 16, 2012, the EP) Tj ET Q q 0 0 0 rg BT 243.13 391.20 Td (A) Tj ET Q q 0 0 0 rg BT 250.47 391.20 Td ( issued final rules subjecting all oil and gas operations \(production, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 378.00 Td (processing, transmission, storage, and distribution\) to regulation under the New Source Performance Standards ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 364.80 Td (\(NSPS\) and National Emission Standards for Hazardous ) Tj ET Q q 0 0 0 rg BT 309.98 364.80 Td (Air Pollutants \(NESHAPS\) programs. ) Tj ET Q q 0 0 0 rg BT 492.49 364.80 Td (The EP) Tj ET Q q 0 0 0 rg BT 524.17 364.80 Td (A) Tj ET Q q 0 0 0 rg BT 531.51 364.80 Td ( rules ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 351.60 Td (also include NSPS standards for completions of hydraulically fractured gas wells. ) Tj ET Q q 0 0 0 rg BT 414.86 351.60 Td (These standards require the use ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 338.40 Td (of reduced emission completion \(REC\) techniques developed in the EP) Tj ET Q q 0 0 0 rg BT 371.87 338.40 Td (A's Natural Gas ST) Tj ET Q q 0 0 0 rg BT 456.38 338.40 Td (AR program along with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 325.20 Td (the pit flaring of gas not sent to the gathering line beginning in January 2015. ) Tj ET Q q 0 0 0 rg BT 395.31 325.20 Td (The standards are applicable to newly ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 312.00 Td (drilled and fractured wells as well as existing wells that are refractured. Further) Tj ET Q q 0 0 0 rg BT 401.43 312.00 Td (, the proposed regulations under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 298.80 Td (NESHAPS include maximum achievable control technology \(MACT\) standards for those glycol dehydrators and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 285.60 Td (certain storage vessels at major sources of hazardous air pollutants not currently subject to MACT) Tj ET Q q 0 0 0 rg BT 481.73 285.60 Td ( standards. ) Tj ET Q q 0 0 0 rg BT 534.08 285.60 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 272.40 Td (rules will require additional control equipment, changes to procedure, and extensive monitoring and reporting. ) Tj ET Q q 0 0 0 rg BT 540.99 272.40 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 259.20 Td (EP) Tj ET Q q 0 0 0 rg BT 61.83 259.20 Td (A) Tj ET Q q 0 0 0 rg BT 69.16 259.20 Td ( stated in January 2013, however) Tj ET Q q 0 0 0 rg BT 213.52 259.20 Td (, that it intends to reconsider portions of the final rule. On September 23, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.00 Td (2013, the EP) Tj ET Q q 0 0 0 rg BT 105.52 246.00 Td (A) Tj ET Q q 0 0 0 rg BT 112.85 246.00 Td ( published new standards for storage tanks subject to the NSPS. ) Tj ET Q q 0 0 0 rg BT 398.31 246.00 Td (The EP) Tj ET Q q 0 0 0 rg BT 429.99 246.00 Td (A) Tj ET Q q 0 0 0 rg BT 437.33 246.00 Td ( has stated that it continues ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 232.80 Td (to review other issues raised in petitions for reconsideration. ) Tj ET Q q 0 0 0 rg BT 320.76 232.80 Td (W) Tj ET Q q 0 0 0 rg BT 330.26 232.80 Td (e are currently evaluating the ef) Tj ET Q q 0 0 0 rg BT 469.62 232.80 Td (fect of these rules on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 219.60 Td (our business.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 193.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 193.20 Td (Increased regulation and attention given to the hydraulic fracturing process could lead to greater opposition, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 180.00 Td (including litigation, to oil and gas production activities using hydraulic fracturing techniques. Disclosure of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 166.80 Td (chemicals used in the hydraulic fracturing process could make it easier for third parties opposing such activity to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 153.60 Td (pursue legal proceedings against producers and service providers based on allegations that specific chemicals used ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 140.40 Td (in the fracturing process could adversely af) Tj ET Q q 0 0 0 rg BT 239.78 140.40 Td (fect human health or the environment, including groundwater) Tj ET Q q 0 0 0 rg BT 509.81 140.40 Td (. Over the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 127.20 Td (past year) Tj ET Q q 0 0 0 rg BT 88.96 127.20 Td (, several court cases have addressed aspects of hydraulic fracturing. In a case that could delay operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 114.00 Td (on public lands, a court in California held that the BLM did not adequately consider the impact of hydraulic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 100.80 Td (fracturing and horizontal drilling before issuing leases. Courts in New ) Tj ET Q q 0 0 0 rg BT 363.02 100.80 Td (Y) Tj ET Q q 0 0 0 rg BT 369.86 100.80 Td (ork and Colorado reduced the level of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 87.60 Td (evidence required before a court will agree to consider alleged damage claims from hydraulic fracturing by property ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 74.40 Td (owners. Litigation resulting in financial compensation for damages linked to hydraulic fracturing could spur future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 61.20 Td (litigation and bring increased attention to the practice of hydraulic fracturing. Judicial decisions could also lead to ) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (increased regulation, permitting requirements, enforcement actions, and penalties. ) Tj ET Q q 0 0 0 rg BT 415.62 734.40 Td (Additional legislation or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (regulation could also lead to operational delays or increased costs in the exploration for and production of oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (natural gas, and associated liquids, including from the development of shale plays, or could make it more dif) Tj ET Q q 0 0 0 rg BT 527.57 708.00 Td (ficult ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (to perform hydraulic fracturing. ) Tj ET Q q 0 0 0 rg BT 195.19 694.80 Td (The adoption of additional federal, state, or local laws, or the implementation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (new regulations, regarding hydraulic fracturing could potentially cause a decrease in the completion of new oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (gas wells, or an increase in compliance costs and delays, which could adversely af) Tj ET Q q 0 0 0 rg BT 411.76 668.40 Td (fect our financial position, results ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (of operations, and cash flows.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (Our ability to pr) Tj ET Q q 0 0 0 rg BT 122.01 630.00 Td (oduce crude oil, natural gas, and associated liquids economically and in commer) Tj ET Q q 0 0 0 rg BT 479.97 630.00 Td (cial quantities ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (could be impair) Tj ET Q q 0 0 0 rg BT 119.25 616.80 Td (ed if we ar) Tj ET Q q 0 0 0 rg BT 165.59 616.80 Td (e unable to acquir) Tj ET Q q 0 0 0 rg BT 245.52 616.80 Td (e adequate supplies of water for our drilling operations and/or ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (completions or ar) Tj ET Q q 0 0 0 rg BT 127.81 603.60 Td (e unable to dispose of or r) Tj ET Q q 0 0 0 rg BT 242.90 603.60 Td (ecycle the water we use at a r) Tj ET Q q 0 0 0 rg BT 372.92 603.60 Td (easonable cost and in accor) Tj ET Q q 0 0 0 rg BT 495.94 603.60 Td (dance with ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (applicable envir) Tj ET Q q 0 0 0 rg BT 121.38 590.40 Td (onmental rules.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 565.20 Td (The hydraulic fracturing process on which we and others in our industry depend to complete wells that will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (produce commercial quantities of crude oil, natural gas, and associated liquids requires the use and disposal of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (significant quantities of water) Tj ET Q q 0 0 0 rg BT 180.44 538.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 513.60 Td (Our inability to secure suf) Tj ET Q q 0 0 0 rg BT 200.66 513.60 Td (ficient amounts of water) Tj ET Q q 0 0 0 rg BT 307.43 513.60 Td (, or to dispose of or recycle the water used in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (operations, could adversely impact our operations. Moreover) Tj ET Q q 0 0 0 rg BT 320.50 500.40 Td (, the imposition of new environmental initiatives and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (regulations could include restrictions on our ability to conduct certain operations such as hydraulic fracturing or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (disposal of wastes, including, but not limited to, produced water) Tj ET Q q 0 0 0 rg BT 331.84 474.00 Td (, drilling fluids, and other wastes associated with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (the exploration, development, or production of crude oil, natural gas, and natural gas liquids.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 435.60 Td (Compliance with environmental regulations and permit requirements governing the withdrawal, storage, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (and use of surface water or groundwater necessary for hydraulic fracturing of wells may increase our operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (costs and cause delays, interruptions, or termination of our operations, the extent of which cannot be predicted, all ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (of which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 200.07 396.00 Td (fect on our operations and financial condition.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (Certain United States federal income tax deductions curr) Tj ET Q q 0 0 0 rg BT 301.63 370.80 Td (ently available with r) Tj ET Q q 0 0 0 rg BT 395.01 370.80 Td (espect to oil and natural gas ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (exploration and pr) Tj ET Q q 0 0 0 rg BT 132.09 357.60 Td (oduction may be eliminated as a r) Tj ET Q q 0 0 0 rg BT 281.38 357.60 Td (esult of futur) Tj ET Q q 0 0 0 rg BT 337.19 357.60 Td (e legislation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.27 357.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 331.20 Td (Recent federal budget proposals, if enacted into law) Tj ET Q q 0 0 0 rg BT 313.76 331.20 Td (, would eliminate certain key United States federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (income tax incentives currently available to oil and natural gas exploration and production companies. ) Tj ET Q q 0 0 0 rg BT 505.54 318.00 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (potential changes include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 278.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 278.40 Td (the elimination of current deductions for intangible drilling and development costs;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 253.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 253.20 Td (the repeal of the percentage depletion allowance for oil and natural gas properties;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 228.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 228.00 Td (the elimination of the deduction for certain domestic production activities; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 202.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 202.80 Td (an extension of the amortization period for certain geological and geophysical expenditures.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 177.60 Td (It is unclear when or if these or similar changes will be enacted. ) Tj ET Q q 0 0 0 rg BT 372.01 177.60 Td (The passage of legislation enacting these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 164.40 Td (or similar changes in federal income tax laws could eliminate or postpone certain tax deductions that are currently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 151.20 Td (available with respect to oil and natural gas exploration and development. ) Tj ET Q q 0 0 0 rg BT 379.59 151.20 Td (Any such changes could have an adverse ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.00 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 138.00 Td (fect on our financial position, results of operations and cash flows.) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (46) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Legislative and r) Tj ET Q q 0 0 0 rg BT 124.14 734.40 Td (egulatory initiatives r) Tj ET Q q 0 0 0 rg BT 219.06 734.40 Td (elated to global warming and climate change could have an adverse effect on ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (our operations and the demand for crude oil, natural gas, and NGLs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 696.00 Td (In December 2009, the EP) Tj ET Q q 0 0 0 rg BT 201.37 696.00 Td (A) Tj ET Q q 0 0 0 rg BT 208.71 696.00 Td ( made a finding that emissions of carbon dioxide, methane, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (greenhouse gases endanger public health and the environment because emissions of such gases contribute to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (warming of the earth) Tj ET Q q 0 0 0 rg BT 144.99 669.60 Td (s atmosphere and other climatic changes. Based on this endangerment finding, the EP) Tj ET Q q 0 0 0 rg BT 530.70 669.60 Td (A) Tj ET Q q 0 0 0 rg BT 538.04 669.60 Td ( has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (over the past four years adopted and implemented a comprehensive suite of regulations to restrict and otherwise ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (regulate emissions of greenhouse gases under existing provisions of the CAA. In particular) Tj ET Q q 0 0 0 rg BT 450.05 643.20 Td (, the EP) Tj ET Q q 0 0 0 rg BT 483.57 643.20 Td (A) Tj ET Q q 0 0 0 rg BT 490.90 643.20 Td ( has adopted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (two sets of rules regulating greenhouse gas emissions under the CAA. One rule requires a reduction in greenhouse ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (gas emissions from motor vehicles, and the other regulates permitting and greenhouse gas emissions from certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (lar) Tj ET Q q 0 0 0 rg BT 61.40 603.60 Td (ge stationary sources. ) Tj ET Q q 0 0 0 rg BT 158.95 603.60 Td (These EP) Tj ET Q q 0 0 0 rg BT 199.79 603.60 Td (A) Tj ET Q q 0 0 0 rg BT 207.13 603.60 Td ( regulatory actions have been challenged by various industry groups, initially in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (the D.C. Circuit, which in 2012 ruled in favor of the EP) Tj ET Q q 0 0 0 rg BT 294.00 590.40 Td (A) Tj ET Q q 0 0 0 rg BT 301.34 590.40 Td ( in all respects. However) Tj ET Q q 0 0 0 rg BT 409.94 590.40 Td (, the U.S. Supreme Court agreed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (to hear certain of industry) Tj ET Q q 0 0 0 rg BT 166.68 577.20 Td (s challenges to the EP) Tj ET Q q 0 0 0 rg BT 262.21 577.20 Td (A) Tj ET Q q 0 0 0 rg BT 268.93 577.20 Td () Tj ET Q q 0 0 0 rg BT 271.99 577.20 Td (s application of the greenhouse gas endangerment finding to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (stationary sources, and a decision is expected in 2014. ) Tj ET Q q 0 0 0 rg BT 293.57 564.00 Td (The EP) Tj ET Q q 0 0 0 rg BT 325.25 564.00 Td (A) Tj ET Q q 0 0 0 rg BT 332.58 564.00 Td ( has also adopted reporting rules for greenhouse gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (emissions from specified lar) Tj ET Q q 0 0 0 rg BT 174.13 550.80 Td (ge greenhouse gas emission sources in the United States, including petroleum refineries ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (as well as certain onshore oil and natural gas production facilities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 511.20 Td (Several other kinds of cases on greenhouse gases have been heard by the courts in recent years. ) Tj ET Q q 0 0 0 rg BT 507.92 511.20 Td (While ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (courts have generally declined to assign direct liability for climate change to lar) Tj ET Q q 0 0 0 rg BT 400.45 498.00 Td (ge sources of greenhouse gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td (emissions, some have required increased scrutiny of such emissions by federal agencies and permitting authorities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (There is a continuing risk of claims being filed against companies that have significant greenhouse gas emissions, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (and new claims for damages and increased government scrutiny will likely continue.Such cases often seek to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (challenge air emissions permits that greenhouse gas emitters apply for) Tj ET Q q 0 0 0 rg BT 358.39 445.20 Td (, seek to force emitters to reduce their ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (emissions, or seek damages for alleged climate change impacts to the environment, people, and property) Tj ET Q q 0 0 0 rg BT 509.00 432.00 Td (. ) Tj ET Q q 0 0 0 rg BT 513.89 432.00 Td (Any court ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (rulings, laws or regulations that restrict or require reduced emissions of greenhouse gases could lead to increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (operating and compliance costs, and could have an adverse ef) Tj ET Q q 0 0 0 rg BT 321.03 405.60 Td (fect on demand for the oil and natural gas that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (produce.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 366.00 Td (The United States Congress has from time to time considered adopting legislation to reduce emissions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (greenhouse gases, and almost one-half of the states have already taken legal measures to reduce emissions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (greenhouse gases, primarily through the planned development of greenhouse gas emission inventories and/or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (regional greenhouse gas cap and trade programs. Most of these cap and trade programs work by requiring major ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (sources of emissions, such as electric power plants, or major producers of fuels, such as refineries and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (processing plants, to acquire and surrender emission allowances. ) Tj ET Q q 0 0 0 rg BT 336.94 300.00 Td (The number of allowances available for purchase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (is reduced each year in an ef) Tj ET Q q 0 0 0 rg BT 175.01 286.80 Td (fort to achieve the overall greenhouse gas emission reduction goal. Recently) Tj ET Q q 0 0 0 rg BT 509.99 286.80 Td (, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (Congressional Budget Of) Tj ET Q q 0 0 0 rg BT 161.62 273.60 Td (fice provided Congress with a study on the potential ef) Tj ET Q q 0 0 0 rg BT 402.45 273.60 Td (fects on the U.S. economy of a tax ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (on greenhouse gas emissions. ) Tj ET Q q 0 0 0 rg BT 182.70 260.40 Td (While carbon tax legislation has been introduced in the Senate, the prospects for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.20 Td (passage of such legislation are highly uncertain at this time. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 220.80 Td (On June 25, 2013, President Obama outlined plans to address climate change through a variety of executive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (actions, including reduction of methane emissions from oil and gas production and processing operations as well as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 194.40 Td (pipelines and coal mines \(the Climate Plan\). ) Tj ET Q q 0 0 0 rg BT 256.91 194.40 Td (The President) Tj ET Q q 0 0 0 rg BT 320.75 194.40 Td (s Climate Plan, along with recent regulatory initiatives ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 181.20 Td (and ongoing litigation filed by states and environmental groups, signal a new focus on methane emissions that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 168.00 Td (could pose substantial regulatory risk to our operations. ) Tj ET Q q 0 0 0 rg BT 296.95 168.00 Td (The Climate Plan could eventually result in:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 141.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 141.60 Td (requirements for methane emission reductions from oil and gas equipment; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 115.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 115.20 Td (increased scrutiny for sources emitting high levels of methane, including during permitting processes;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 88.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 88.80 Td (analysis, regulation and reduction of methane emissions as a requirement for project approval;) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 734.40 Td (agency adoption of regulations to reduce methane emissions from oil and gas production, processing, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 721.20 Td ( ) Tj ET Q q 0 0 0 rg BT 104.00 721.20 Td (and pipelines, including emissions associated with equipment leaks, fugitives, flowback or waste; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 694.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 694.80 Td (and actions taken by one agency for a specific industry establishing precedents for other agencies and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 681.60 Td ( ) Tj ET Q q 0 0 0 rg BT 104.00 681.60 Td (industry sectors.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 655.20 Td (In relation to the Climate Plan, proposals to increase both the assumed Global ) Tj ET Q q 0 0 0 rg BT 435.88 655.20 Td (W) Tj ET Q q 0 0 0 rg BT 445.39 655.20 Td (arming ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (Potential \(GWP\) and the assumed social costs associated with methane and other greenhouse gas emissions have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (been introduced. Changes to these measurement tools could adversely impact permitting requirements, application ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (of agencies) Tj ET Q q 0 0 0 rg BT 102.63 615.60 Td ( existing regulations for source categories with high methane emissions, and determinations of whether ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (a source qualifies for regulation under the CAA. ) Tj ET Q q 0 0 0 rg BT 265.15 602.40 Td (These changes to how the impact of methane is measured and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (evaluated are still in process, and the potential outcome of the proposals remains uncertain.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 562.80 Td (Finally) Tj ET Q q 0 0 0 rg BT 116.45 562.80 Td (, it should be noted that some scientists have predicted that increasing concentrations of greenhouse ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td (gases in the earth) Tj ET Q q 0 0 0 rg BT 129.11 549.60 Td (s atmosphere may produce climate changes that have significant physical ef) Tj ET Q q 0 0 0 rg BT 462.46 549.60 Td (fects, such as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (increased frequency and severity of storms, droughts, and floods and other climatic events. Some scientists refute ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (these predictions. However) Tj ET Q q 0 0 0 rg BT 169.60 523.20 Td (, President Obama) Tj ET Q q 0 0 0 rg BT 253.61 523.20 Td (s Climate Plan emphasizes preparation for such events. If such ef) Tj ET Q q 0 0 0 rg BT 540.24 523.20 Td (fects ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (were to occur) Tj ET Q q 0 0 0 rg BT 109.42 510.00 Td (, our operations could be adversely af) Tj ET Q q 0 0 0 rg BT 274.46 510.00 Td (fected. Potential adverse ef) Tj ET Q q 0 0 0 rg BT 393.37 510.00 Td (fects could include disruption of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.80 Td (production activities, including, for example, damages to our facilities from flooding or increases in our costs of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.60 Td (operation or reductions in the ef) Tj ET Q q 0 0 0 rg BT 190.62 483.60 Td (ficiency of our operations, as well as potentially increased costs for insurance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.40 Td (coverage in the aftermath of such events. Significant physical ef) Tj ET Q q 0 0 0 rg BT 332.03 470.40 Td (fects of climate change could also have an indirect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 457.20 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 457.20 Td (fect on our financing and operations by disrupting the transportation or process-related services provided by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 444.00 Td (midstream companies, service companies or suppliers with whom we have a business relationship. ) Tj ET Q q 0 0 0 rg BT 486.34 444.00 Td (W) Tj ET Q q 0 0 0 rg BT 495.84 444.00 Td (e may not be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 430.80 Td (able to recover through insurance some or any of the damages, losses or costs that may result from potential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 417.60 Td (physical ef) Tj ET Q q 0 0 0 rg BT 97.75 417.60 Td (fects of climate change. Federal regulations or policy changes regarding climate change preparation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 404.40 Td (requirements could also impact our costs and planning requirements.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (Curr) Tj ET Q q 0 0 0 rg BT 70.99 379.20 Td (ent or pr) Tj ET Q q 0 0 0 rg BT 109.08 379.20 Td (oposed financial legislation and rulemaking could have an adverse effect on our ability to use ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (derivative instruments to r) Tj ET Q q 0 0 0 rg BT 165.99 366.00 Td (educe the effect of commodity price, inter) Tj ET Q q 0 0 0 rg BT 347.93 366.00 Td (est rate and other risks associated with our ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (business.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 327.60 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 162.17 327.60 Td (W) Tj ET Q q 0 0 0 rg BT 171.67 327.60 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 364.14 327.60 Td (Act \(the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 463.42 327.60 Td (Act\), which was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 314.40 Td (signed into law on July 21, 2010, establishes, among other provisions, federal oversight and regulation of the over) Tj ET Q q 0 0 0 rg BT 551.71 314.40 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.20 Td (the-counter derivatives market and entities that participate in that market. ) Tj ET Q q 0 0 0 rg BT 377.84 301.20 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 453.61 301.20 Td (Act also establishes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 288.00 Td (mar) Tj ET Q q 0 0 0 rg BT 66.90 288.00 Td (gin requirements and certain transaction clearing and trade execution requirements. On October 18, 201) Tj ET Q q 0 0 0 rg BT 528.63 288.00 Td (1, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 274.80 Td (Commodities Futures ) Tj ET Q q 0 0 0 rg BT 147.58 274.80 Td (T) Tj ET Q q 0 0 0 rg BT 153.91 274.80 Td (rading Commission \(the CFTC\) approved regulations to set position limits for certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 261.60 Td (futures and option contracts in the major ener) Tj ET Q q 0 0 0 rg BT 249.87 261.60 Td (gy markets, which were successfully challenged in federal district ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 248.40 Td (court by the Securities Industry Financial Markets ) Tj ET Q q 0 0 0 rg BT 272.70 248.40 Td (Association and the International Swaps and Derivatives ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.20 Td (Association and lar) Tj ET Q q 0 0 0 rg BT 134.72 235.20 Td (gely vacated by the court. On November 5, 2013, the CFTC proposed new rules that would ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 222.00 Td (place limits on positions in certain core futures and equivalent swaps contracts for or linked to certain physical ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.80 Td (commodities, subject to exceptions for certain bona fide hedging transactions. Comments on these new rules were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.60 Td (due in early January 2014, and, as these new position limit rules are not yet final, the impact of those provisions on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.40 Td (us is uncertain at this time. ) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (48) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Under CFTC final rules promulgated under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 351.78 734.40 Td (Act, we believe our derivatives activity will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (qualify for the non-financial, commercial end-user exception, which exempts derivatives intended to hedge or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (mitigate commercial risk from the mandatory swap clearing requirement. ) Tj ET Q q 0 0 0 rg BT 377.55 708.00 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 453.31 708.00 Td (Act may also require us ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (to comply with mar) Tj ET Q q 0 0 0 rg BT 136.26 694.80 Td (gin requirements in our derivative activities, although the application of those provisions to us is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (uncertain at this time. ) Tj ET Q q 0 0 0 rg BT 150.61 681.60 Td (The financial reform legislation may also require the counterparties to our derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (instruments to spin of) Tj ET Q q 0 0 0 rg BT 145.44 668.40 Td (f some of their derivatives activities to separate entities, which may not be as creditworthy as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (the current counterparties. ) Tj ET Q q 0 0 0 rg BT 167.69 655.20 Td (Therefore, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 288.65 655.20 Td (Act and the rules promulgated thereunder could significantly ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (increase the cost of derivative contracts \(including through requirements to post collateral\), materially alter the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (terms of derivative contracts, reduce the availability of derivatives to protect against risks we encounter) Tj ET Q q 0 0 0 rg BT 504.97 628.80 Td (, reduce our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (ability to monetize or restructure our existing derivative contracts, and increase our exposure to less creditworthy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (counterparties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 577.20 Td (If we reduce our use of derivatives as a result of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 372.21 577.20 Td (Act and related regulations, our results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (operations may become more volatile and our cash flows may be less predictable, which could adversely af) Tj ET Q q 0 0 0 rg BT 522.33 564.00 Td (fect our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (ability to plan for and fund capital expenditures. Finally) Tj ET Q q 0 0 0 rg BT 297.95 550.80 Td (, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 375.55 550.80 Td (Act was intended, in part, to reduce the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (volatility of oil and gas prices, which some legislators attributed to speculative trading in derivatives and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (commodity instruments related to oil and gas. Our revenues could therefore be adversely af) Tj ET Q q 0 0 0 rg BT 454.53 524.40 Td (fected if a consequence ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 134.01 511.20 Td (Act and related regulations is to lower commodity prices. ) Tj ET Q q 0 0 0 rg BT 391.53 511.20 Td (Any of these consequences could have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (a material adverse ef) Tj ET Q q 0 0 0 rg BT 141.10 498.00 Td (fect on our consolidated financial position, results of operations and cash flows.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (Our ability to sell crude oil, natural gas and NGLs, and/or r) Tj ET Q q 0 0 0 rg BT 315.13 472.80 Td (eceive market prices for our pr) Tj ET Q q 0 0 0 rg BT 451.27 472.80 Td (oduction, may be ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (adversely affected by constraints on gathering systems, pr) Tj ET Q q 0 0 0 rg BT 304.99 459.60 Td (ocessing facilities, pipelines and other transportation ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (systems owned or operated by others or by other interruptions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 421.20 Td (The marketability of our crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 335.15 421.20 Td ( production depends in part on the availability) Tj ET Q q 0 0 0 rg BT 536.97 421.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (proximity) Tj ET Q q 0 0 0 rg BT 92.67 408.00 Td (, and capacity of gathering systems, processing facilities, and pipeline and other transportation systems ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (owned or operated by third parties. ) Tj ET Q q 0 0 0 rg BT 208.84 394.80 Td (Any significant interruption in service from, damage to, or lack of available ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (capacity in these systems and facilities can result in the shutting-in of producing wells, the delay or discontinuance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (of development plans for our properties, or lower price realizations. ) Tj ET Q q 0 0 0 rg BT 352.70 368.40 Td (Although we have some contractual control ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (over the processing and transportation of our operated production, material changes in these business relationships ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (could materially af) Tj ET Q q 0 0 0 rg BT 132.88 342.00 Td (fect our operations. Federal and state regulation of crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 498.70 342.00 Td ( production ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.80 Td (and transportation, tax and ener) Tj ET Q q 0 0 0 rg BT 188.78 328.80 Td (gy policies, changes in supply and demand, pipeline pressures, damage to or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (destruction of pipelines, infrastructure or capacity constraints, and general economic conditions could adversely ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (af) Tj ET Q q 0 0 0 rg BT 58.35 302.40 Td (fect our ability to produce, gather) Tj ET Q q 0 0 0 rg BT 205.13 302.40 Td (, process, and transport crude oil, natural gas, and NGLs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 277.20 Td (In particular) Tj ET Q q 0 0 0 rg BT 139.61 277.20 Td (, if drilling in the Eagle Ford shale and Bakken/Three Forks resource play continues to be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (successful, the amount of crude oil, natural gas, and NGLs being produced by us and others could exceed the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (capacity of, and result in strains on, the various gathering and transportation systems, pipelines, processing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (facilities, and other infrastructure available in these areas. It will be necessary for additional infrastructure, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (pipelines, gathering and transportation systems and processing facilities to be expanded, built or developed to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (accommodate anticipated production from these areas. Because of the current economic climate, certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (processing, pipeline, and other gathering or transportation projects that might be, or are being, considered for these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (areas may not be developed timely or at all due to lack of financing or other constraints. Capital and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 171.60 Td (constraints could also limit our ability to build or access intrastate gathering and transportation systems necessary to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.40 Td (transport our production to interstate pipelines or other points of sale or delivery) Tj ET Q q 0 0 0 rg BT 402.42 158.40 Td (. In such event, we might have to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.20 Td (delay or discontinue development activities or shut in our wells to wait for suf) Tj ET Q q 0 0 0 rg BT 393.48 145.20 Td (ficient infrastructure development or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.00 Td (capacity expansion and/or sell production at significantly lower prices, which would adversely af) Tj ET Q q 0 0 0 rg BT 477.14 132.00 Td (fect our results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 118.80 Td (operations and cash flows. In addition, the operations of the third parties on whom we rely for gathering and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 105.60 Td (transportation services are subject to complex and stringent laws and regulations that require obtaining and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 92.40 Td (maintaining numerous permits, approvals and certifications from various federal, state, and local government ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 79.20 Td (authorities. ) Tj ET Q q 0 0 0 rg BT 104.48 79.20 Td (These third parties may incur substantial costs in order to comply with existing laws and regulations. If ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 66.00 Td (existing laws and regulations governing such third-party services are revised or reinterpreted, or if new laws and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 52.80 Td (regulations become applicable to their operations, these changes may af) Tj ET Q q 0 0 0 rg BT 365.63 52.80 Td (fect the costs that we pay for such services. ) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (49) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Similarly) Tj ET Q q 0 0 0 rg BT 90.23 734.40 Td (, a failure to comply with such laws and regulations by the third parties on whom we rely could have a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 133.47 721.20 Td (fect on our business, financial condition and results of operations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 696.00 Td ( portion of our production in any region may be interrupted, or shut in, from time to time for numerous ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (reasons, including as a result of weather conditions, accidents, loss of pipeline, gathering, processing or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (transportation system access or capacity) Tj ET Q q 0 0 0 rg BT 225.83 669.60 Td (, field labor issues or strikes, or we might voluntarily curtail production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (response to market conditions. If a substantial amount of our production is interrupted at the same time, it could ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (temporarily and adversely af) Tj ET Q q 0 0 0 rg BT 175.94 643.20 Td (fect our cash flows and results of operations. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (New technologies may cause our curr) Tj ET Q q 0 0 0 rg BT 216.09 618.00 Td (ent exploration and drilling methods to become obsolete.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 592.80 Td (The oil and gas industry is subject to rapid and significant advancements in technology) Tj ET Q q 0 0 0 rg BT 468.06 592.80 Td (, including the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (introduction of new products and services using new technologies. ) Tj ET Q q 0 0 0 rg BT 347.85 579.60 Td (As competitors use or develop new ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (technologies, we may be placed at a competitive disadvantage, and competitive pressures may force us to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (implement new technologies at a substantial cost. In addition, competitors may have greater financial, technical, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (and personnel resources that allow them to enjoy technological advantages and may in the future allow them to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (implement new technologies before we can. One or more of the technologies that we currently use or that we may ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (implement in the future may become obsolete. ) Tj ET Q q 0 0 0 rg BT 259.66 513.60 Td (W) Tj ET Q q 0 0 0 rg BT 269.16 513.60 Td (e cannot be certain that we will be able to implement technologies ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (on a timely basis or at a cost that is acceptable to us. If we are unable to maintain technological advancements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (consistent with industry standards, our operations and financial condition may be adversely af) Tj ET Q q 0 0 0 rg BT 463.11 487.20 Td (fected.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (Our business could be negatively impacted by security thr) Tj ET Q q 0 0 0 rg BT 304.98 462.00 Td (eats, including cybersecurity thr) Tj ET Q q 0 0 0 rg BT 446.92 462.00 Td (eats, terr) Tj ET Q q 0 0 0 rg BT 486.23 462.00 Td (orism, armed ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (conflict, and other disruptions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 423.60 Td (As a crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 247.18 423.60 Td ( producer) Tj ET Q q 0 0 0 rg BT 288.58 423.60 Td (, we face various security threats, including cybersecurity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (threats to gain unauthorized access to sensitive information or to render data or systems unusable; threats to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (safety of our employees; threats to the security of our facilities and infrastructure or third party facilities and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (infrastructure, such as processing plants and pipelines; and threats from terrorist acts. ) Tj ET Q q 0 0 0 rg BT 429.70 384.00 Td (Although we utilize various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (procedures and controls to monitor these threats and mitigate our exposure to such threats, there can be no ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (assurance that these procedures and controls will be suf) Tj ET Q q 0 0 0 rg BT 294.16 357.60 Td (ficient in preventing security threats from materializing. If ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (any of these events were to materialize, they could lead to losses of sensitive information, critical infrastructure, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (personnel or capabilities essential to our operations and could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 438.63 331.20 Td (fect on our reputation, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (financial position, results of operations, or cash flows.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 292.80 Td (Cybersecurity attacks in particular are evolving and include but are not limited to, malicious software, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.60 Td (attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.40 Td (critical systems, unauthorized release of confidential or otherwise protected information and corruption of data. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.20 Td (These events could damage our reputation and lead to financial losses from remedial actions, loss of business or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (potential liability) Tj ET Q q 0 0 0 rg BT 124.74 240.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 213.60 Td (The threat of terrorism and the impact of military and other action have caused instability in world financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (markets and could lead to increased volatility in prices for crude oil, natural gas, and NGLs, all of which could ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (adversely af) Tj ET Q q 0 0 0 rg BT 103.24 187.20 Td (fect the markets for our operations. Ener) Tj ET Q q 0 0 0 rg BT 283.86 187.20 Td (gy assets might be specific tar) Tj ET Q q 0 0 0 rg BT 415.93 187.20 Td (gets of terrorist attacks. ) Tj ET Q q 0 0 0 rg BT 524.48 187.20 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 174.00 Td (developments have subjected our operations to increased risk and, depending on their occurrence and ultimate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.80 Td (magnitude, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 243.74 160.80 Td (fect on our business.) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (50) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 148.50 734.60 Td ( Common Stock) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 708.20 Td (The price of our common stock may fluctuate significantly) Tj ET Q q 0 0 0 rg BT 305.40 708.20 Td (, which may r) Tj ET Q q 0 0 0 rg BT 364.88 708.20 Td (esult in losses for investors.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 683.00 Td (From ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.59 683.00 Td (January 1, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.55 683.00 Td (, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.35 683.00 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.31 683.00 Td (, the closing daily sale price of our common stock as reported ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (by the New ) Tj ET Q q 0 0 0 rg BT 103.05 669.80 Td (Y) Tj ET Q q 0 0 0 rg BT 109.89 669.80 Td (ork Stock Exchange ranged from a low of $53.77 per share in January 2013 to a high of $91.98 per ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (share in November 2013. ) Tj ET Q q 0 0 0 rg BT 166.49 656.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.00 656.60 Td (e expect our stock to continue to be subject to fluctuations as a result of a variety of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (factors, including factors beyond our control. ) Tj ET Q q 0 0 0 rg BT 254.16 643.40 Td (These factors include:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 618.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 618.20 Td (changes in crude oil, natural gas, or NGL) Tj ET Q q 0 0 0 rg BT 285.34 618.20 Td ( prices;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 593.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 593.00 Td (variations in drilling, recompletion, and operating activity;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 567.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 567.80 Td (changes in financial estimates by securities analysts;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 542.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 542.60 Td (changes in market valuations of comparable companies;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 517.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 517.40 Td (additions or departures of key personnel;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 492.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 492.20 Td (future sales of our common stock; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 467.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 467.00 Td (changes in the national and global economic outlook.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 441.80 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 441.80 Td (e may not meet the expectations of our stockholders and/or of securities analysts at some time in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 428.60 Td (future, and our stock price could decline as a result.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 403.40 Td (Our certificate of incorporation and by-laws have pr) Tj ET Q q 0 0 0 rg BT 282.09 403.40 Td (ovisions that discourage corporate takeovers and could ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 390.20 Td (pr) Tj ET Q q 0 0 0 rg BT 59.37 390.20 Td (event stockholders fr) Tj ET Q q 0 0 0 rg BT 150.61 390.20 Td (om r) Tj ET Q q 0 0 0 rg BT 170.67 390.20 Td (eceiving a takeover pr) Tj ET Q q 0 0 0 rg BT 268.30 390.20 Td (emium on their investment, which could adversely affect the price ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 377.00 Td (of our common stock. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 351.80 Td (Delaware corporate law and our certificate of incorporation and by-laws contain provisions that may have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 338.60 Td (the ef) Tj ET Q q 0 0 0 rg BT 74.54 338.60 Td (fect of delaying or preventing a change of control of us or our management. ) Tj ET Q q 0 0 0 rg BT 413.38 338.60 Td (These provisions, among other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 325.40 Td (things, provide for non-cumulative voting in the election of members of the Board of Directors and impose ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 312.20 Td (procedural requirements on stockholders who wish to make nominations for the election of directors or propose ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 299.00 Td (other actions at stockholder meetings. ) Tj ET Q q 0 0 0 rg BT 221.78 299.00 Td (These provisions, alone or in combination with each other) Tj ET Q q 0 0 0 rg BT 477.03 299.00 Td (, may discourage ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 285.80 Td (transactions involving actual or potential changes of control, including transactions that otherwise could involve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 272.60 Td (payment of a premium over prevailing market prices to stockholders for their common stock. ) Tj ET Q q 0 0 0 rg BT 464.83 272.60 Td (As a result, these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 259.40 Td (provisions could make it more dif) Tj ET Q q 0 0 0 rg BT 198.58 259.40 Td (ficult for a third party to acquire us, even if doing so would benefit our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.20 Td (stockholders, which may limit the price that investors are willing to pay in the future for shares of our common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 233.00 Td (stock.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 207.80 Td (Shar) Tj ET Q q 0 0 0 rg BT 70.37 207.80 Td (es eligible for futur) Tj ET Q q 0 0 0 rg BT 154.60 207.80 Td (e sale may cause the market price of our common stock to dr) Tj ET Q q 0 0 0 rg BT 421.79 207.80 Td (op significantly) Tj ET Q q 0 0 0 rg BT 489.32 207.80 Td (, even if our ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 194.60 Td (business is doing well.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 169.40 Td (The potential for sales of substantial amounts of our common stock in the public market may have a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.20 Td (materially adverse ef) Tj ET Q q 0 0 0 rg BT 142.03 156.20 Td (fect on our stock price. ) Tj ET Q q 0 0 0 rg BT 248.02 156.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.91 156.20 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.87 156.20 Td (, 66,997,786 shares of our common stock were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 143.00 Td (freely tradable without substantial restriction or the requirement of future registration under the Securities ) Tj ET Q q 0 0 0 rg BT 517.35 143.00 Td (Act. ) Tj ET Q q 0 0 0 rg BT 540.88 143.00 Td (Also ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 129.80 Td (as of that date, options to purchase 39,088 shares of our common stock were outstanding, all of which were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 116.60 Td (exercisable. ) Tj ET Q q 0 0 0 rg BT 107.52 116.60 Td (These options are exercisable at $20.87 per share. In addition, restricted stock units \(RSUs\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 103.40 Td (providing for the issuance of up to a total of 574,188 shares of our common stock and 799,851 performance share ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 90.20 Td (units \(PSUs\) were outstanding. ) Tj ET Q q 0 0 0 rg BT 201.95 90.20 Td (The PSUs represent the right to receive, upon settlement of the PSUs after the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 77.00 Td (completion of a three-year performance period, a number of shares of our common stock that may be from zero to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 63.80 Td (two times the number of PSUs granted, depending on the extent to which the underlying performance criteria have ) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (been achieved and the extent to which the PSUs have vested. ) Tj ET Q q 0 0 0 rg BT 323.39 734.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.28 734.40 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.24 734.40 Td (, there were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.60 734.40 Td (67,056,441) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.10 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (shares of our common stock outstanding, which is net of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.43 721.20 Td (22,412) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.68 721.20 Td ( treasury shares.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 696.00 Td (e may not always pay dividends on our common stock.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 670.80 Td (Payment of future dividends remains at the discretion of our Board of Directors, and will continue to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.60 Td (depend on our earnings, capital requirements, financial condition, and other factors. In addition, the payment of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (dividends is subject to a covenant in our credit facility limiting our annual cash dividends to no more than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.31 644.40 Td ($50.0 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 631.20 Td (, and to covenants in the indentures for our Senior Notes that limit our ability to pay dividends beyond a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (certain amount. Our Board of Directors may determine in the future to reduce the current semi-annual dividend rate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (of $0.05 per share, or discontinue the payment of dividends altogether) Tj ET Q q 0 0 0 rg BT 357.92 604.80 Td (.) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (52) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 1B. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (UNRESOL) Tj ET Q q 0 0 0 rg BT 174.17 734.60 Td (VED ST) Tj ET Q q 0 0 0 rg BT 212.78 734.60 Td (AFF) Tj ET Q q 0 0 0 rg BT 233.76 734.60 Td ( COMMENTS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 709.40 Td (e have no unresolved comments from the SEC staf) Tj ET Q q 0 0 0 rg BT 318.31 709.40 Td (f regarding our periodic or current reports under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (Securities Exchange ) Tj ET Q q 0 0 0 rg BT 141.64 696.20 Td (Act of 1934.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 670.95 Td (ITEM 3. ) Tj ET Q q 0 0 0 rg BT 121.50 670.95 Td (LEGAL) Tj ET Q q 0 0 0 rg BT 159.40 670.95 Td ( PROCEEDINGS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 645.75 Td (From time to time, we may be involved in litigation relating to claims arising out of our operations in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 632.55 Td (normal course of business. ) Tj ET Q q 0 0 0 rg BT 171.70 632.55 Td (As of the filing date of this report, no legal proceedings are pending against us that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 619.40 Td (believe individually or collectively could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 356.26 619.40 Td (fect upon our financial condition, results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 606.20 Td (operations or cash flows.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 579.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.00 579.75 Td (e filed a declaratory judgment action in ) Tj ET Q q 0 0 0 rg BT 270.43 579.75 Td (W) Tj ET Q q 0 0 0 rg BT 279.93 579.75 Td (ebb County) Tj ET Q q 0 0 0 rg BT 330.24 579.75 Td (, ) Tj ET Q q 0 0 0 rg BT 335.54 579.75 Td (T) Tj ET Q q 0 0 0 rg BT 341.49 579.75 Td (exas, captioned ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 412.05 579.75 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 450.43 579.75 Td (gy Company vs. W) Tj ET Q q 0 0 0 rg BT 531.30 579.75 Td (.H. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 566.55 Td (Sutton, et al.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.11 566.55 Td (, seeking a judgment declaring a prior lease in the Eagle Ford shale play in South ) Tj ET Q q 0 0 0 rg BT 464.45 566.55 Td (T) Tj ET Q q 0 0 0 rg BT 470.40 566.55 Td (exas had terminated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 553.35 Td (with respect to 18,000 acres, based upon a failure of continuous development, and that any overriding royalty ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 540.15 Td (interest claimed by the defendants has been extinguished. On September 19, 2012, the District Court in ) Tj ET Q q 0 0 0 rg BT 508.75 540.15 Td (W) Tj ET Q q 0 0 0 rg BT 518.25 540.15 Td (ebb ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 526.95 Td (County) Tj ET Q q 0 0 0 rg BT 81.18 526.95 Td (, ) Tj ET Q q 0 0 0 rg BT 86.48 526.95 Td (T) Tj ET Q q 0 0 0 rg BT 92.43 526.95 Td (exas, granted our motion for summary judgment, concluding that the defendants) Tj ET Q q 0 0 0 rg BT 448.41 526.95 Td ( claims for any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 513.80 Td (overriding royalty interest had been extinguished. ) Tj ET Q q 0 0 0 rg BT 273.52 513.80 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 324.94 513.80 Td (fs appealed the District Court) Tj ET Q q 0 0 0 rg BT 457.52 513.80 Td (s judgment to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 500.55 Td (Fourth Court of ) Tj ET Q q 0 0 0 rg BT 120.70 500.55 Td (Appeals, which af) Tj ET Q q 0 0 0 rg BT 200.22 500.55 Td (firmed the District Court) Tj ET Q q 0 0 0 rg BT 312.34 500.55 Td (s judgment on November 13, 2013. ) Tj ET Q q 0 0 0 rg BT 473.15 500.55 Td (This judgment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 487.40 Td (became final on January 23, 2014.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 462.20 Td (W) Tj ET Q q 0 0 0 rg BT 95.00 462.20 Td (e, and our working interest partners, filed an action against Endeavour Operating Corporation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 449.00 Td (\(Endeavour\) in Harris County) Tj ET Q q 0 0 0 rg BT 190.21 449.00 Td (, ) Tj ET Q q 0 0 0 rg BT 195.51 449.00 Td (T) Tj ET Q q 0 0 0 rg BT 201.46 449.00 Td (exas, captioned ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 272.02 449.00 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 310.41 449.00 Td (gy Company) Tj ET Q q 0 0 0 rg BT 365.09 449.00 Td (, et al. v) Tj ET Q q 0 0 0 rg BT 399.41 449.00 Td (. Endeavour Operating Corporation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.90 449.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 435.80 Td (seeking an order requiring Endeavour to honor its obligations to consummate the purchase of certain assets located ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (in Pennsylvania, or in the alternative, for damages. ) Tj ET Q q 0 0 0 rg BT 278.40 422.60 Td (W) Tj ET Q q 0 0 0 rg BT 287.90 422.60 Td (e continue to prosecute this action to recover any relief to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 409.40 Td (which we are entitled. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 383.00 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 383.00 Td (On January 27, 201) Tj ET Q q 0 0 0 rg BT 171.24 383.00 Td (1, Chieftain Royalty Company \(Chieftain\) filed a Class ) Tj ET Q q 0 0 0 rg BT 426.33 383.00 Td (Action Petition against us in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 369.80 Td (the District Court of Beaver County) Tj ET Q q 0 0 0 rg BT 206.73 369.80 Td (, Oklahoma, claiming damages related to royalty valuation on all of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 356.60 Td (Oklahoma wells. ) Tj ET Q q 0 0 0 rg BT 126.59 356.60 Td (These claims include breach of contract, breach of fiduciary duty) Tj ET Q q 0 0 0 rg BT 412.36 356.60 Td (, fraud, unjust enrichment, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 343.40 Td (tortious breach of contract, conspiracy) Tj ET Q q 0 0 0 rg BT 217.69 343.40 Td (, and conversion, based generally on asserted improper deduction of post-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 330.20 Td (production costs. ) Tj ET Q q 0 0 0 rg BT 127.21 330.20 Td (W) Tj ET Q q 0 0 0 rg BT 136.71 330.20 Td (e removed this lawsuit to the United States District Court for the ) Tj ET Q q 0 0 0 rg BT 423.07 330.20 Td (W) Tj ET Q q 0 0 0 rg BT 432.57 330.20 Td (estern District of Oklahoma ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 317.00 Td (on February 22, 201) Tj ET Q q 0 0 0 rg BT 138.30 317.00 Td (1. ) Tj ET Q q 0 0 0 rg BT 149.10 317.00 Td (W) Tj ET Q q 0 0 0 rg BT 158.60 317.00 Td (e have responded to the petition and denied the allegations. ) Tj ET Q q 0 0 0 rg BT 421.41 317.00 Td (The district court did not rule ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 303.80 Td (on Chieftain) Tj ET Q q 0 0 0 rg BT 107.24 303.80 Td (s motion to certify the putative class, and stayed all proceedings until the United States Court of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 290.60 Td (Appeals for the ) Tj ET Q q 0 0 0 rg BT 119.86 290.60 Td (T) Tj ET Q q 0 0 0 rg BT 125.81 290.60 Td (enth Circuit issued its rulings on class certification in two similar royalty class action lawsuits. On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 277.40 Td (July 9, 2013, the ) Tj ET Q q 0 0 0 rg BT 125.08 277.40 Td (T) Tj ET Q q 0 0 0 rg BT 131.03 277.40 Td (enth Circuit issued its opinions, reversing the trial courts) Tj ET Q q 0 0 0 rg BT 382.86 277.40 Td ( grant of class certification and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 264.20 Td (remanding the matters to the trial courts for those cases. ) Tj ET Q q 0 0 0 rg BT 298.25 264.20 Td (The district court presiding over our case subsequently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 251.00 Td (lifted its stay) Tj ET Q q 0 0 0 rg BT 105.61 251.00 Td (, and we expect Chieftain to file a new motion for class certification in the first half of 2015. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 224.60 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 224.60 Td (This case involves complex legal issues and uncertainties; a potentially lar) Tj ET Q q 0 0 0 rg BT 412.76 224.60 Td (ge class of plaintif) Tj ET Q q 0 0 0 rg BT 493.51 224.60 Td (fs, and a lar) Tj ET Q q 0 0 0 rg BT 544.62 224.60 Td (ge ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 211.40 Td (number of related producing properties, lease agreements and wells; and an alleged class period commencing in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 198.20 Td (1988 and spanning the entire producing life of the wells. Because the proceedings are in the early stages, with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 185.00 Td (substantive discovery yet to be conducted, we are unable to estimate what impact, if any) Tj ET Q q 0 0 0 rg BT 437.33 185.00 Td (, the action will have on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 171.80 Td (financial condition, results of operations or cash flows. ) Tj ET Q q 0 0 0 rg BT 293.69 171.80 Td (W) Tj ET Q q 0 0 0 rg BT 303.19 171.80 Td (e are still evaluating the claims, but believe that we have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (properly paid royalties under Oklahoma law and have and will continue to vigorously defend this case. On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 145.40 Td (December 30, 2013, we sold a substantial portion of our assets that were subject to this matter) Tj ET Q q 0 0 0 rg BT 462.68 145.40 Td (, and the buyer ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 132.20 Td (assumed any such liabilities related to such properties.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (ITEM 4. ) Tj ET Q q 0 0 0 rg BT 122.00 105.75 Td (MINE SAFETY) Tj ET Q q 0 0 0 rg BT 197.68 105.75 Td ( DISCLOSURES) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 80.55 Td (These disclosures are not applicable to us.) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (53) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.90 734.60 Td (AR) Tj ET Q q 0 0 0 rg BT 71.40 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 78.54 734.60 Td ( II) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 708.15 Td (ITEM 5. ) Tj ET Q q 0 0 0 rg BT 121.50 708.15 Td (MARKET) Tj ET Q q 0 0 0 rg BT 170.80 708.15 Td ( FOR REGISTRANTS COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 383.70 708.15 Td (, RELA) Tj ET Q q 0 0 0 rg BT 418.94 708.15 Td (TED ST) Tj ET Q q 0 0 0 rg BT 457.56 708.15 Td (OCKHOLDER ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 121.50 694.95 Td (MA) Tj ET Q q 0 0 0 rg BT 139.01 694.95 Td (TTERS ) Tj ET Q q 0 0 0 rg BT 177.23 694.95 Td (AND ISSUER PURCHASES OF) Tj ET Q q 0 0 0 rg BT 330.54 694.95 Td ( EQUITY) Tj ET Q q 0 0 0 rg BT 376.28 694.95 Td ( SECURITIES) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 669.75 Td (Market Information. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.82 669.75 Td (Our common stock is currently traded on the New ) Tj ET Q q 0 0 0 rg BT 403.72 669.75 Td (Y) Tj ET Q q 0 0 0 rg BT 410.56 669.75 Td (ork Stock Exchange under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 656.55 Td (ticker symbol SM. ) Tj ET Q q 0 0 0 rg BT 146.15 656.55 Td (The following table presents the range of high and low intraday sales prices per share for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 643.40 Td (indicated quarterly periods in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.46 643.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.46 643.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.84 643.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.84 643.40 Td (, as reported by the New ) Tj ET Q q 0 0 0 rg BT 356.70 643.40 Td (Y) Tj ET Q q 0 0 0 rg BT 363.54 643.40 Td (ork Stock Exchange:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 606.85 m 193 606.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 606.85 m 261 606.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 606.85 m 329 606.85 l s BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 610.72 Td (Quarter Ended) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.50 610.72 Td (High) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.40 610.72 Td (Low) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 596.72 Td (December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 596.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 596.72 Td (94.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 596.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 596.72 Td (76.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 582.72 Td (September 30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 582.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 582.72 Td (77.70) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 582.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 582.72 Td (60.22) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 568.72 Td (June 30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 568.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 568.72 Td (65.55) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 568.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 568.72 Td (55.30) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 554.72 Td (March 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 554.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 554.72 Td (62.26) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 554.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 554.72 Td (52.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 526.72 Td (December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 526.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 526.72 Td (62.09) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 526.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 526.72 Td (45.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 512.72 Td (September 30, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 512.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 512.72 Td (59.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 512.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 512.72 Td (39.44) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 498.72 Td (June 30, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 498.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 498.72 Td (71.81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 498.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 498.72 Td (43.12) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 484.72 Td (March 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.50 484.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 484.72 Td (84.40) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.50 484.72 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 484.72 Td (69.40) Tj ET Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 241.35 456.20 Td (PERFORMANCE GRAPH) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 430.95 Td (The following performance graph compares the cumulative return on our common stock, for the period ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 417.80 Td (beginning December 31, 2008, and ending on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.26 417.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.70 417.80 Td (, with the cumulative total returns of the Dow ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 404.55 Td (Jones U.S. Exploration and Production Board Index, and the Standard & Poor) Tj ET Q q 0 0 0 rg BT 392.69 404.55 Td () Tj ET Q q 0 0 0 rg BT 395.75 404.55 Td (s 500 Stock Index.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 151.30 379.40 Td (COMP) Tj ET Q q 0 0 0 rg BT 184.09 379.40 Td (ARISON OF) Tj ET Q q 0 0 0 rg BT 244.49 379.40 Td ( 5-YEAR CUMULA) Tj ET Q q 0 0 0 rg BT 339.00 379.40 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 368.45 379.40 Td (T) Tj ET Q q 0 0 0 rg BT 375.59 379.40 Td (OT) Tj ET Q q 0 0 0 rg BT 390.66 379.40 Td (AL) Tj ET Q q 0 0 0 rg BT 405.34 379.40 Td ( RETURNS) Tj ET Q /GS0 gs q 512.00 0 0 220.10 50.00 154.29 cm /I20 Do Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 141.10 Td (The preceding information under the caption Performance Graph shall be deemed to be furnished, but not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 127.90 Td (filed with the SEC.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 101.50 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 101.50 Td (Holders. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 129.19 101.50 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.08 101.50 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.04 101.50 Td (, the number of record holders of our common stock was 81. Based ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 88.30 Td (upon inquiry) Tj ET Q q 0 0 0 rg BT 105.31 88.30 Td (, management believes that the number of beneficial owners of our common stock is approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (27,700.) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (54) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 734.40 Td (Dividends. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.35 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 147.85 734.40 Td (e have paid cash dividends to our stockholders every year since 1940. ) Tj ET Q q 0 0 0 rg BT 459.43 734.40 Td (Annual dividends of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.20 Td ($0.05 per share were paid in each of the years 1998 through 2004. ) Tj ET Q q 0 0 0 rg BT 345.19 721.20 Td (Annual dividends of $0.10 per share were paid in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 708.00 Td (2005 through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.22 708.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.22 708.00 Td (. ) Tj ET Q q 0 0 0 rg BT 141.27 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 150.77 708.00 Td (e expect that our practice of paying dividends on our common stock will continue, although ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 694.80 Td (the payment of future dividends will continue to depend on our earnings, cash flow) Tj ET Q q 0 0 0 rg BT 414.75 694.80 Td (, capital requirements, financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 681.60 Td (condition, and other factors, including the discretion of our Board of Directors. In addition, the payment of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 668.40 Td (dividends is subject to covenants in our credit facility that limit our annual dividend payment to no more than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.70 668.40 Td ($50.0 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 655.20 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.28 655.20 Td ( per year) Tj ET Q q 0 0 0 rg BT 119.15 655.20 Td (. ) Tj ET Q q 0 0 0 rg BT 127.20 655.20 Td (W) Tj ET Q q 0 0 0 rg BT 136.70 655.20 Td (e are also subject to certain covenants under our Senior Notes that restrict certain payments, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 642.00 Td (including dividends; provided, however) Tj ET Q q 0 0 0 rg BT 224.42 642.00 Td (, the first ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.57 642.00 Td ($6.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.35 642.00 Td ( of dividends paid each year are not restricted by this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 628.80 Td (covenant. Based on our current performance, we do not anticipate that these covenants will restrict future annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (dividend payments of $0.10 per share of common stock. Dividends are currently paid on a semi-annual basis. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 602.40 Td (Dividends paid totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.84 602.40 Td ($6.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.62 602.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.68 602.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.68 602.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.06 602.40 Td ($6.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.84 602.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.90 602.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.90 602.40 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 577.20 Td (Restricted Shar) Tj ET Q q 0 0 0 rg BT 153.22 577.20 Td (es. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.63 577.20 Td (W) Tj ET Q q 0 0 0 rg BT 180.13 577.20 Td (e have no restricted shares outstanding as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.85 577.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.29 577.20 Td (, aside from Rule 144 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 564.00 Td (restrictions on shares held by insiders and shares issued to members of the Board of Directors under our Equity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 550.80 Td (Incentive Compensation Plan \(Equity Plan\).) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 525.60 Td (Pur) Tj ET Q q 0 0 0 rg BT 101.59 525.60 Td (chases of Equity Securities by the Issuer and ) Tj ET Q q 0 0 0 rg BT 300.57 525.60 Td (Affiliated Pur) Tj ET Q q 0 0 0 rg BT 360.35 525.60 Td (chasers. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.21 525.60 Td (The following table provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 512.40 Td (information about purchases by the Company and any af) Tj ET Q q 0 0 0 rg BT 298.57 512.40 Td (filiated purchaser \(as defined in Rule 10b-18\(a\)\(3\) under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 499.20 Td (the Exchange ) Tj ET Q q 0 0 0 rg BT 111.20 499.20 Td (Act\) during the indicated quarters and year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.72 499.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.16 499.20 Td (, of shares of the Company) Tj ET Q q 0 0 0 rg BT 539.75 499.20 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 486.00 Td (common stock, which is the sole class of equity securities registered by the Company pursuant to Section12 of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 472.80 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 95.01 472.80 Td (Act.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 389.29999999999995 m 249 389.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 389.29999999999995 m 339 389.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 389.29999999999995 m 452 389.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 389.29999999999995 m 556 389.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 362.29999999999995 m 249 362.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 362.29999999999995 m 339 362.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 362.29999999999995 m 452 362.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 362.29999999999995 m 556 362.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 335.29999999999995 m 249 335.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 335.29999999999995 m 339 335.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 335.29999999999995 m 452 335.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 335.29999999999995 m 556 335.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 308.29999999999995 m 249 308.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 308.29999999999995 m 339 308.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 308.29999999999995 m 452 308.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 308.29999999999995 m 556 308.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 227.29999999999995 m 249 227.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 227.29999999999995 m 339 227.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 227.29999999999995 m 452 227.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 227.29999999999995 m 556 227.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 200.29999999999995 m 249 200.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 227.29999999999995 m 339 227.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 200.29999999999995 m 339 200.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 200.29999999999995 m 452 200.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 200.29999999999995 m 556 200.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 187.29999999999995 m 249 187.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 172 185.29999999999995 m 249 185.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 187.29999999999995 m 339 187.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 185.29999999999995 m 339 185.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 187.29999999999995 m 452 187.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 185.29999999999995 m 452 185.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 187.29999999999995 m 556 187.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 185.29999999999995 m 556 185.29999999999995 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 181.55 452.35 Td (ISSUER PURCHASES OF EQUITY SECURITIES) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 177.10 416.20 Td (T) Tj ET Q q 0 0 0 rg BT 183.43 416.20 Td (otal Number) Tj ET Q q 0 0 0 rg BT 242.80 416.20 Td ( ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 188.25 405.20 Td (of Shar) Tj ET Q q 0 0 0 rg BT 222.58 405.20 Td (es ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 181.15 394.20 Td (Pur) Tj ET Q q 0 0 0 rg BT 198.67 394.20 Td (chased) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 230.45 399.18 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 266.75 405.20 Td (Average Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 264.55 394.20 Td (Paid per Share) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 363.15 438.20 Td (Total Number of) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 360.15 427.20 Td (Shares Purchased) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 358.75 416.20 Td (as Part of Publicly) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 375.10 405.20 Td (Announced) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.00 394.20 Td (Program) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 485.05 438.20 Td (Maximum ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 466.90 427.20 Td (Number) Tj ET Q q 0 0 0 rg BT 505.81 427.20 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 542.89 427.20 Td (es ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 472.25 416.20 Td (that May ) Tj ET Q q 0 0 0 rg BT 517.67 416.20 Td (Y) Tj ET Q q 0 0 0 rg BT 524.39 416.20 Td (et be ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 468.60 405.20 Td (Pur) Tj ET Q q 0 0 0 rg BT 486.12 405.20 Td (chased Under) Tj ET Q q 0 0 0 rg BT 550.40 405.20 Td ( ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 475.65 394.20 Td (the Pr) Tj ET Q q 0 0 0 rg BT 504.47 394.20 Td (ogram) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 535.01 399.18 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 378.22 Td (January 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 367.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 367.22 Td (March 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.80 367.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 367.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.80 367.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 367.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 367.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 351.22 Td (April 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 340.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 340.22 Td (June 30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 228.30 340.22 Td (390) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 340.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.05 340.22 Td (59.84) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 340.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 340.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 324.22 Td (July 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 313.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 313.22 Td (September 30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.05 313.22 Td (267,362) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 313.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.05 313.22 Td (60.50) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 313.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 313.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 297.22 Td (October 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 286.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 286.22 Td (October 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 228.30 286.22 Td (285) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 286.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.05 286.22 Td (77.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 286.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 286.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 270.22 Td (November 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 259.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 259.22 Td (November 30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.80 259.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 259.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.80 259.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 259.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 259.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 243.22 Td (December 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 232.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 232.22 Td (December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.80 232.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 232.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.80 232.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 232.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 232.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 216.22 Td (T) Tj ET Q q 0 0 0 rg BT 58.45 216.22 Td (otal October 1, 2013 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 205.22 Td ( ) Tj ET Q q 0 0 0 rg BT 66.50 205.22 Td (December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 228.30 205.22 Td (285) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 205.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.05 205.22 Td (77.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 205.22 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 205.22 Td (3,072,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 190.17 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.05 190.17 Td (268,037) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 190.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.05 190.17 Td (60.51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 190.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 190.17 Td (3,072,184) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.50 186.80 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.80 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 162.80 Td (All shares purchased in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.58 162.80 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 183.58 162.80 Td ( were to of) Tj ET Q q 0 0 0 rg BT 226.44 162.80 Td (fset tax withholding obligations that occur upon the delivery of outstanding shares ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 150.80 Td (underlying RSUs and PSUs delivered under the terms of grants under the Equity Plan. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 138.80 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 138.80 Td (In July 2006, our Board of Directors approved an increase in the number of shares that may be repurchased under the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 126.80 Td (original ) Tj ET Q q 0 0 0 rg BT 100.55 126.80 Td (August 1998 authorization to 6,000,000 as of the ef) Tj ET Q q 0 0 0 rg BT 306.45 126.80 Td (fective date of the resolution. ) Tj ET Q q 0 0 0 rg BT 427.79 126.80 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 477.13 126.80 Td (, as of the date of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 114.80 Td (this filing, subject to the approval of our Board of Directors, we may repurchase up to 3,072,184 shares of common stock ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 102.80 Td (on a prospective basis. ) Tj ET Q q 0 0 0 rg BT 162.85 102.80 Td (The shares may be repurchased from time to time in open market transactions or privately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 90.80 Td (negotiated transactions, subject to market conditions and other factors, including certain provisions of our credit facility) Tj ET Q q 0 0 0 rg BT 545.88 90.80 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 78.80 Td (the indentures governing our Senior Notes and compliance with securities laws. Stock repurchases may be funded with ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 66.80 Td (existing cash balances, internal cash flow) Tj ET Q q 0 0 0 rg BT 232.35 66.80 Td (, or borrowings under our credit facility) Tj ET Q q 0 0 0 rg BT 390.26 66.80 Td (. ) Tj ET Q q 0 0 0 rg BT 397.58 66.80 Td (The stock repurchase program may be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 54.80 Td (suspended or discontinued at any time. Please refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 287.71 54.80 Td (Dividends) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.26 54.80 Td ( above for a description of our dividend limitations.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (55) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 6. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 245.17 734.60 Td ( DA) Tj ET Q q 0 0 0 rg BT 262.99 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 269.51 734.60 Td (A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (The following table sets forth selected supplemental financial and operating data for us as of the dates and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (periods indicated. ) Tj ET Q q 0 0 0 rg BT 133.50 696.20 Td (The financial data for each of the five years presented were derived from our consolidated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (financial statements. ) Tj ET Q q 0 0 0 rg BT 145.71 683.00 Td (The following data should be read in conjunction with ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 387.35 683.00 Td (Management) Tj ET Q q 0 0 0 rg BT 447.03 683.00 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 524.14 683.00 Td (Analysis ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (of Financial Condition and Results of Operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 270.91 669.80 Td (in Part II, Item 7 of this report, which includes a discussion of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (factors materially af) Tj ET Q q 0 0 0 rg BT 138.37 656.60 Td (fecting the comparability of the information presented, and in conjunction with our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (consolidated financial statements included in this report.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195.5 606.9 m 258.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 606.9 m 272.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 606.9 m 335.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 606.9 m 349.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 606.9 m 412.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 606.9 m 426.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 606.9 m 489.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 606.9 m 503.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 606.9 m 562.5 606.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195.5 592.9 m 258.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 592.9 m 335.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 592.9 m 412.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 592.9 m 489.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 592.9 m 562.5 592.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 315.35 610.95 Td (Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 215.50 596.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.50 596.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 369.80 596.95 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 446.50 596.95 Td (2010) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 521.50 596.95 Td (2009) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 297.40 582.95 Td (\(in millions, except per share data\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 568.77 Td (Total operating revenues) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 568.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.25 568.77 Td (2,293.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 568.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.25 568.77 Td (1,505.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 568.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.25 568.77 Td (1,603.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 568.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.25 568.77 Td (1,092.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 568.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 568.77 Td (832.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 554.77 Td (Net income \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 554.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.55 554.77 Td (170.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 554.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.35 554.77 Td (\(54.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.30 554.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 554.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.55 554.77 Td (215.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 554.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 554.77 Td (196.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 554.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.35 554.77 Td (\(99.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 554.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 540.77 Td (Net income \(loss\) per share:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 526.77 Td (Basic) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 526.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 526.77 Td (2.57) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 526.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.35 526.77 Td (\(0.83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.30 526.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 526.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.05 526.77 Td (3.38) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 526.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 526.77 Td (3.13) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 526.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.35 526.77 Td (\(1.59) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 526.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 512.77 Td (Diluted) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 512.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 512.77 Td (2.51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 512.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.35 512.77 Td (\(0.83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.30 512.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 512.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.05 512.77 Td (3.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 512.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 512.77 Td (3.04) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 512.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.35 512.77 Td (\(1.59) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 512.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 498.77 Td (Total assets at year-end) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 498.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.25 498.77 Td (4,705.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 498.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.25 498.77 Td (4,199.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 498.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.25 498.77 Td (3,799.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 498.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.25 498.77 Td (2,744.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 498.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.25 498.77 Td (2,360.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 484.77 Td (Long-term debt:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 470.77 Td (Revolving credit facility) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 470.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.30 470.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 470.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 306.55 470.77 Td (340.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 470.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.30 470.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.00 470.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.05 470.77 Td (48.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.00 470.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 470.77 Td (188.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 456.77 Td (3.50% Senior Convertible) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 445.82 Td (Notes, net of debt discount) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.00 448.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.30 448.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.00 448.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.30 448.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 448.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.55 448.82 Td (285.1) Tj ET Q 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/F2 10.00 Tf ET q 0 0 0 rg BT 374.00 317.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 317.07 Td (4.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 317.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 317.07 Td (5.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 317.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 317.07 Td (3.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 303.07 Td (NGL \(per Bbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 303.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 303.07 Td (35.95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 303.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 303.07 Td (37.61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 303.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 303.07 Td (53.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 303.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.65 303.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 303.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 303.07 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 289.18 Td (Adjusted price \(net of derivative cash) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 279.18 Td (settlements\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 265.07 Td (Oil \(per Bbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 265.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 265.07 Td (89.92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 265.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 265.07 Td (83.52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 265.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 265.07 Td (78.89) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 265.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 265.07 Td (66.85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 265.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 265.07 Td (56.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 251.07 Td (Gas \(per Mcf\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 251.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 251.07 Td (4.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 251.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.15 251.07 Td (3.48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 251.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 251.07 Td (4.80) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 251.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 251.07 Td (6.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 251.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 251.07 Td (5.59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 237.07 Td (NGL \(per Bbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 237.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 237.07 Td (36.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 237.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 237.07 Td (38.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 237.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 237.07 Td (47.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 237.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.65 237.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 237.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.65 237.07 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 223.18 Td (Expense per BOE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 209.07 Td (Lease operating expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 209.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 209.07 Td (4.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 209.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.15 209.07 Td (4.93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 209.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 209.07 Td (5.30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 209.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 209.07 Td (6.63) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 209.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 209.07 Td (8.00) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 195.07 Td (Transportation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 195.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 195.07 Td (5.34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 195.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.15 195.07 Td (3.81) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 195.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 195.07 Td (3.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 195.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 195.07 Td (1.15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 195.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 195.07 Td (1.14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 181.07 Td (Production taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 181.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 181.07 Td (2.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 181.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.15 181.07 Td (2.00) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 181.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 181.07 Td (1.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 181.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 181.07 Td (2.86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 181.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 181.07 Td (2.24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 166.17 Td (Depletion, depreciation, amortization, and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 156.17 Td (asset retirement obligation liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 146.17 Td (accretion expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 146.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 146.17 Td (17.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 146.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 146.17 Td (19.95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 146.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 146.17 Td (18.07) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 146.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 146.17 Td (18.33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 146.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 146.17 Td (16.73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 132.07 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 132.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 132.07 Td (3.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 132.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.15 132.07 Td (3.28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 132.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.15 132.07 Td (4.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 132.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.15 132.07 Td (5.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 132.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.15 132.07 Td (4.18) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 55.00 118.18 Td (Statement of Cash Flow Data \(in millions\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 104.07 Td (Provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 104.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 264.65 104.07 Td (1,338.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 104.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 104.07 Td (922.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 104.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 104.07 Td (760.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 104.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 104.07 Td (497.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 104.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 104.07 Td (436.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 90.07 Td (Used in investing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 90.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.30 90.07 Td (\(1,192.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.65 90.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 90.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.30 90.12 Td (\(1,457.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 360.65 90.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 90.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.30 90.12 Td (\(1,264.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 90.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 90.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.80 90.12 Td (\(361.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.65 90.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 90.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 90.12 Td (\(304.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 90.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 76.07 Td (Provided by \(used in\) financing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 76.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.15 76.07 Td (130.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 76.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 76.07 Td (422.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 76.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.15 76.07 Td (618.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 76.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.80 76.12 Td (\(141.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.65 76.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.00 76.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.80 76.12 Td (\(127.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.65 76.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 58.6669921875 m 227.5 58.6669921875 l s q 0 0 0 rg BT 50.00 60.00 Td ( ) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 735.10 Td (Note: Beginning in 201) Tj ET Q q 0 0 0 rg BT 143.79 735.10 Td (1, we changed our reporting for natural gas volumes to show natural gas and NGL) Tj ET Q q 0 0 0 rg BT 472.50 735.10 Td ( production volumes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 723.10 Td (consistent with title transfer for each product. Rapid production growth from our NGL-rich assets associated with plant ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.10 Td (product sales contracts necessitated a change in our reporting of production volumes. Our 2010 and 2009 NGL) Tj ET Q q 0 0 0 rg BT 495.62 711.10 Td ( production ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.10 Td (volumes, revenues, and prices have not been reclassified to conform to the current presentation given the immateriality of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 687.10 Td (amounts. ) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (58) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 7. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (MANAGEMENTS DISCUSSION ) Tj ET Q q 0 0 0 rg BT 287.03 734.60 Td (AND ) Tj ET Q q 0 0 0 rg BT 313.00 734.60 Td (ANAL) Tj ET Q q 0 0 0 rg BT 343.16 734.60 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 385.24 734.60 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 449.72 734.60 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 519.40 734.60 Td (AND ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 122.00 721.40 Td (RESUL) Tj ET Q q 0 0 0 rg BT 157.67 721.40 Td (TS OF) Tj ET Q q 0 0 0 rg BT 188.74 721.40 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 229.17 721.40 Td (TIONS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.20 Td (This discussion includes forward-looking statements. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 391.49 696.20 Td (Cautionary Information about ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (Forwar) Tj ET Q q 0 0 0 rg BT 83.21 683.00 Td (d-Looking Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 178.84 683.00 Td ( in Part I, Items 1 and 2 of this report for important information about these types of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (statements.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 644.55 Td (Overview of the Company) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 619.40 Td (General Overview) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 594.15 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 594.15 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 594.15 Td (e are an independent ener) Tj ET Q q 0 0 0 rg BT 207.68 594.15 Td (gy company engaged in the acquisition, exploration, development, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 580.95 Td (production of oil, gas, and NGLs in onshore North ) Tj ET Q q 0 0 0 rg BT 274.55 580.95 Td (America. Our assets include leading positions in the Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (shale and Bakken/Three Forks resource plays, oil-focused plays in the Permian Basin, and positions in emer) Tj ET Q q 0 0 0 rg BT 525.44 567.75 Td (ging ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 554.55 Td (plays in East ) Tj ET Q q 0 0 0 rg BT 108.77 554.55 Td (T) Tj ET Q q 0 0 0 rg BT 114.72 554.55 Td (exas and the Powder River Basin in ) Tj ET Q q 0 0 0 rg BT 274.29 554.55 Td (W) Tj ET Q q 0 0 0 rg BT 284.01 554.55 Td (yoming. ) Tj ET Q q 0 0 0 rg BT 325.68 554.55 Td (W) Tj ET Q q 0 0 0 rg BT 335.18 554.55 Td (e have built a portfolio of onshore properties in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.35 Td (contiguous United States primarily through early entry into existing and emer) Tj ET Q q 0 0 0 rg BT 391.34 541.35 Td (ging resource plays. ) Tj ET Q q 0 0 0 rg BT 484.92 541.35 Td (This portfolio is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.15 Td (comprised of properties with established production and reserves, prospective drilling opportunities, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.95 Td (unconventional resource prospects. ) Tj ET Q q 0 0 0 rg BT 210.17 514.95 Td (W) Tj ET Q q 0 0 0 rg BT 219.67 514.95 Td (e believe our strategy provides for stable and predictable production and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.80 Td (reserves growth. Furthermore, by entering these plays early) Tj ET Q q 0 0 0 rg BT 313.81 501.80 Td (, we believe we can capture lar) Tj ET Q q 0 0 0 rg BT 449.51 501.80 Td (ger resource potential at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.55 Td (a lower cost. ) Tj ET Q q 0 0 0 rg BT 110.79 488.55 Td (At year) Tj ET Q q 0 0 0 rg BT 143.25 488.55 Td (-end 2012, our reserves shifted from being majority gas to majority liquids. ) Tj ET Q q 0 0 0 rg BT 479.60 488.55 Td (As a result, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.40 Td (now report equivalent volumes and per) Tj ET Q q 0 0 0 rg BT 221.76 475.40 Td (-unit metrics on a BOE basis rather than on an MCFE basis. Prior year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.20 Td (volumes have been conformed to current year presentation.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 435.80 Td (Our principal business strategy is to focus on the early capture of resource plays in order to create and then ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.60 Td (enhance value for our stockholders while maintaining a strong balance sheet. ) Tj ET Q q 0 0 0 rg BT 394.05 422.60 Td (W) Tj ET Q q 0 0 0 rg BT 403.55 422.60 Td (e strive to leverage industry-leading ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.40 Td (exploration and leasehold acquisition teams to quickly acquire and test new resource play concepts at a reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.20 Td (cost. Once we have identified potential value through these ef) Tj ET Q q 0 0 0 rg BT 324.40 396.20 Td (forts, our goal is to develop such potential through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 383.00 Td (top-tier operational and project execution, and as appropriate, high-grade our portfolio by selectively divesting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.80 Td (certain assets. ) Tj ET Q q 0 0 0 rg BT 116.39 369.80 Td (W) Tj ET Q q 0 0 0 rg BT 125.89 369.80 Td (e continually examine our portfolio for opportunities to improve the quality of our asset base in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.60 Td (order to optimize our returns and preserve our financial strength. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 331.40 Td (In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.91 331.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 331.40 Td (, we had the following financial and operational results: ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 306.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 306.20 Td (At year) Tj ET Q q 0 0 0 rg BT 136.46 306.20 Td (-end ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.75 306.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.75 306.20 Td (, we had estimated proved reserves of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.36 306.20 Td (428.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.11 306.20 Td ( MMBOE, of which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.46 306.20 Td (54 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.58 306.20 Td ( were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 293.00 Td (liquids \(oil and NGLs\) and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.29 293.00 Td (49 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.41 293.00 Td ( were characterized as proved developed. ) Tj ET Q q 0 0 0 rg BT 458.11 293.00 Td (W) Tj ET Q q 0 0 0 rg BT 467.61 293.00 Td (e added ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.25 293.00 Td (195.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.00 293.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 279.80 Td (MMBOE from our drilling program, the majority of which related to our activity in the Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 266.60 Td (shale in South ) Tj ET Q q 0 0 0 rg BT 168.88 266.60 Td (T) Tj ET Q q 0 0 0 rg BT 174.83 266.60 Td (exas and the Bakken/Three Forks plays in North Dakota. ) Tj ET Q q 0 0 0 rg BT 430.32 266.60 Td (W) Tj ET Q q 0 0 0 rg BT 439.82 266.60 Td (e had slight price revisions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 253.40 Td (that increased our estimated proved reserves by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.67 253.40 Td (0.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.42 253.40 Td ( MMBOE. ) Tj ET Q q 0 0 0 rg BT 381.78 253.40 Td (The prices used in the calculation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 240.20 Td (proved reserve estimates as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.31 240.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.75 240.20 Td ( were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.62 240.20 Td ($96.94) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.87 240.20 Td ( per Bbl, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.81 240.20 Td ($3.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.56 240.20 Td ( per MMBtu, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.69 240.20 Td ($40.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 557.94 240.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 227.00 Td (per Bbl, for oil, gas, and NGLs, respectively) Tj ET Q q 0 0 0 rg BT 298.49 227.00 Td (. ) Tj ET Q q 0 0 0 rg BT 306.54 227.00 Td (These prices were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.69 227.00 Td (two percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.31 227.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.69 227.00 Td (33 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.80 227.00 Td ( higher for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 213.80 Td (oil and gas, respectively) Tj ET Q q 0 0 0 rg BT 209.58 213.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.72 213.80 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.83 213.80 Td ( lower for NGLs than the prices used at year) Tj ET Q q 0 0 0 rg BT 474.79 213.80 Td (-end ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.09 213.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 519.09 213.80 Td (. ) Tj ET Q q 0 0 0 rg BT 527.14 213.80 Td (W) Tj ET Q q 0 0 0 rg BT 536.64 213.80 Td (e had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 200.60 Td (upward engineering revisions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.79 200.60 Td (7.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.54 200.60 Td ( MMBOE related primarily to Eagle Ford shale assets, of) Tj ET Q q 0 0 0 rg BT 514.07 200.60 Td (fset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 187.40 Td (partially by downward engineering revisions of certain legacy assets in our Permian region. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 174.20 Td (Additionally) Tj ET Q q 0 0 0 rg BT 158.89 174.20 Td (, we removed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.20 174.20 Td (2.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.95 174.20 Td ( MMBOE of proved undeveloped gas reserves mainly in our South ) Tj ET Q q 0 0 0 rg BT 532.62 174.20 Td (T) Tj ET Q q 0 0 0 rg BT 538.57 174.20 Td (exas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 161.00 Td (& Gulf Coast region as a result of the five-year limitation on the number of years proved undeveloped ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 147.80 Td (reserves may remain on the books without being developed. Please refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 490.71 147.80 Td (Pr) Tj ET Q q 0 0 0 rg BT 501.31 147.80 Td (oved ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 134.60 Td (Undeveloped Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.87 134.60 Td ( under the section ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 284.51 134.60 Td (Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.60 134.60 Td ( included in Part I, Items 1 and 2 of this report for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 121.40 Td (additional discussion. ) Tj ET Q q 0 0 0 rg BT 204.63 121.40 Td (W) Tj ET Q q 0 0 0 rg BT 214.13 121.40 Td (e had acquisitions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.61 121.40 Td (1.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.36 121.40 Td ( MMBOE and we divested of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.95 121.40 Td (18.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.20 121.40 Td ( MMBOE of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 108.20 Td (proved reserves during the year) Tj ET Q q 0 0 0 rg BT 242.23 108.20 Td (, most of which related to the sale of our ) Tj ET Q q 0 0 0 rg BT 422.15 108.20 Td (Anadarko Basin properties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 95.00 Td (W) Tj ET Q q 0 0 0 rg BT 113.50 95.00 Td (e also divested of certain other assets in our Mid-Continent, Rocky Mountain, and Permian regions. ) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 734.40 Td (The PV) Tj ET Q q 0 0 0 rg BT 136.90 734.40 Td (-10 value of our estimated proved reserves was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.05 734.40 Td ($5.5 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.78 734.40 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.35 734.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.80 734.40 Td (, compared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 721.20 Td (with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 126.31 721.20 Td ($3.8 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.03 721.20 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.61 721.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.05 721.20 Td (. ) Tj ET Q q 0 0 0 rg BT 298.10 721.20 Td (The after tax value, represented by the standardized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 708.00 Td (measure calculation, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.01 708.00 Td ($4.0 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.73 708.00 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.31 708.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.75 708.00 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.67 708.00 Td ($3.0 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 505.40 708.00 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 694.80 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.44 694.80 Td (. ) Tj ET Q q 0 0 0 rg BT 198.49 694.80 Td (The standardized measure calculation is presented in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 449.56 694.80 Td (Supplemental Oil and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 681.60 Td (Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.03 681.60 Td ( section located in Part II, Item 8 of this report. ) Tj ET Q q 0 0 0 rg BT 388.42 681.60 Td (A) Tj ET Q q 0 0 0 rg BT 395.76 681.60 Td ( reconciliation between the PV) Tj ET Q q 0 0 0 rg BT 530.37 681.60 Td (-10 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 668.40 Td (reserve value and the after tax value is shown under ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 334.91 668.40 Td (Reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 668.40 Td ( in Part I, Items 1 and 2 of this report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 643.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 643.20 Td (W) Tj ET Q q 0 0 0 rg BT 113.50 643.20 Td (e had record annual production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.39 643.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.39 643.20 Td (. Our average daily production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.90 643.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.90 643.20 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.51 643.20 Td (38.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.76 643.20 Td ( MBbls of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 630.00 Td (oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 121.11 630.00 Td (409.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.86 630.00 Td ( MMcf of gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.18 630.00 Td (26.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.43 630.00 Td ( MBbls of NGLs, for an average daily equivalent production rate of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 616.80 Td (132.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 128.75 616.80 Td (MBOE, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.20 616.80 Td (99.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.45 616.80 Td ( MBOE in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.04 616.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.04 616.80 Td (, an increase of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.36 616.80 Td (33 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.48 616.80 Td ( year) Tj ET Q q 0 0 0 rg BT 463.94 616.80 Td (-over) Tj ET Q q 0 0 0 rg BT 486.93 616.80 Td (-year) Tj ET Q q 0 0 0 rg BT 508.91 616.80 Td (. Please ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 603.60 Td (refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 190.13 603.60 Td (Pr) Tj ET Q q 0 0 0 rg BT 200.72 603.60 Td (oduction Results ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.49 603.60 Td (below for additional discussion.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 578.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 578.40 Td (W) Tj ET Q q 0 0 0 rg BT 113.50 578.40 Td (e recorded net income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.59 578.40 Td ($170.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.37 578.40 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.78 578.40 Td ($2.51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.53 578.40 Td ( per diluted share, for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.54 578.40 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 565.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 126.00 565.20 Td (. ) Tj ET Q q 0 0 0 rg BT 134.05 565.20 Td (This compares with a net loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.16 565.20 Td ($54.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.44 565.20 Td (, or a loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.27 565.20 Td ($0.83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.02 565.20 Td ( per diluted share, for the year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 552.00 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.01 552.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.46 552.00 Td (. Please refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 344.68 552.00 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 517.94 552.00 Td (r) Tj ET Q q 0 0 0 rg BT 521.82 552.00 Td (ends ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 538.80 Td (Between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 144.01 538.80 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 166.01 538.80 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 188.01 538.80 Td (2012) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 210.01 538.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.76 538.80 Td (below for additional discussion regarding the components of net income \(loss\).) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 513.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 513.60 Td (W) Tj ET Q q 0 0 0 rg BT 113.50 513.60 Td (e had record cash flow provided by operating activities of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.08 513.60 Td ($1.3 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.80 513.60 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 500.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.44 500.40 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.36 500.40 Td ($922.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.15 500.40 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.35 500.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.79 500.40 Td (, which was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 487.20 Td (an increase of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.82 487.20 Td (45 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.94 487.20 Td ( year) Tj ET Q q 0 0 0 rg BT 235.40 487.20 Td (-over) Tj ET Q q 0 0 0 rg BT 258.39 487.20 Td (-year) Tj ET Q q 0 0 0 rg BT 280.37 487.20 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 354.28 487.20 Td (Analysis of cash flow changes between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 527.81 487.20 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 549.81 487.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 474.00 Td (and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 123.25 474.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.25 474.00 Td ( below for additional discussion.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 448.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 448.80 Td (W) Tj ET Q q 0 0 0 rg BT 113.50 448.80 Td (e received net cash proceeds \(net of marketing costs, Net Profits Plan payments, legal fees, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 435.60 Td (selling costs paid\) from the sale of oil and gas properties of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.32 435.60 Td ($424.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.10 435.60 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 422.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.44 422.40 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 264.35 422.40 Td (Analysis of cash flow changes between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 437.88 422.40 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 459.88 422.40 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 481.88 422.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.88 422.40 Td ( below for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 409.20 Td (additional discussion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 384.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 384.00 Td (EBITDAX, a non-GAAP) Tj ET Q q 0 0 0 rg BT 215.11 384.00 Td ( financial measure, for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.69 384.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.13 384.00 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.49 384.00 Td ($1.5 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 546.21 384.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 370.80 Td (compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.42 370.80 Td ($1.0 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.15 370.80 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.17 370.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.17 370.80 Td (. Please refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 472.40 370.80 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 522.30 370.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 357.60 Td (Financial Measur) Tj ET Q q 0 0 0 rg BT 182.72 357.60 Td (es ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.63 357.60 Td (below for additional discussion, including our definition of EBITDAX and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 344.40 Td (reconciliations of our GAAP) Tj ET Q q 0 0 0 rg BT 230.37 344.40 Td ( net income \(loss\) and net cash provided by operating activities to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 331.20 Td (EBITDAX. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 306.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 306.00 Td (Costs incurred for oil and gas producing activities for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.85 306.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.29 306.00 Td (, remained ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 292.80 Td (relatively flat at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.38 292.80 Td ($1.7 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.11 292.80 Td ( when compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 292.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.55 292.80 Td (. Please refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.00 279.60 Td (Costs Incurr) Tj ET Q q 0 0 0 rg BT 158.90 279.60 Td (ed in Oil and Gas Pr) Tj ET Q q 0 0 0 rg BT 250.46 279.60 Td (oducing ) Tj ET Q q 0 0 0 rg BT 288.45 279.60 Td (Activities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.13 279.60 Td (below for additional discussion.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 254.40 Td (Reserve Replacement, Finding and Development Costs, and Gr) Tj ET Q q 0 0 0 rg BT 328.50 254.40 Td (owth) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 229.20 Td (Like all oil and gas exploration and production companies, we face the challenge of growing proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 216.00 Td (reserves. ) Tj ET Q q 0 0 0 rg BT 93.68 216.00 Td (An exploration and production company depletes part of its asset base with each unit of oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 553.32 216.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 202.80 Td (it produces. Our future growth will depend on our ability to or) Tj ET Q q 0 0 0 rg BT 326.27 202.80 Td (ganically and economically add reserves in excess of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 189.60 Td (production.) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (60) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following table provides various reserve replacement and finding and development cost metrics for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.69 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.13 721.20 Td (: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 672.7 m 321.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 672.7 m 333.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 672.7 m 400.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 672.7 m 475.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 672.7 m 487.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 672.7 m 553.5 672.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 646.7 m 321.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 646.7 m 400.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 646.7 m 475.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 646.7 m 553.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 646.7 m 321.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 646.7 m 400.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 646.7 m 475.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 646.7 m 553.5 646.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 572.7 m 258.5 572.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 278.45 688.75 Td (Reserve Replacement) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.10 677.75 Td (Percentage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 421.65 688.75 Td (Finding and Development ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 444.05 677.75 Td (Cost per) Tj ET Q q 0 0 0 rg BT 483.87 677.75 Td ( BOE ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 512.60 682.73 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 265.65 662.60 Td (Excluding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 261.45 651.60 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 343.85 662.60 Td (Including) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.45 651.60 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 419.65 662.60 Td (Excluding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 415.45 651.60 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.35 662.60 Td (Including) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 491.95 651.60 Td (Divestitures) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 636.57 Td (Drilling, excluding revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 636.57 Td (405) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 636.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 636.57 Td (367) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 636.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 636.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.05 636.57 Td (7.77) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 636.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.05 636.57 Td (8.56) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 622.57 Td (Drilling, including revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 622.57 Td (415) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 622.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 622.57 Td (377) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 622.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 622.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.05 622.57 Td (7.57) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 622.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.05 622.57 Td (8.33) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 607.62 Td (Drilling and acquisitions, excluding revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 607.62 Td (407) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 607.62 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 607.62 Td (370) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 607.62 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 607.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.05 607.62 Td (7.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 607.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.05 607.62 Td (8.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 591.62 Td (Drilling and acquisitions, including revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 591.62 Td (418) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 591.62 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 591.62 Td (380) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 591.62 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 591.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.05 591.62 Td (7.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 591.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.05 591.62 Td (8.43) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 576.57 Td (All-in) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 576.57 Td (418) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 576.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 576.57 Td (380) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 576.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 576.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.05 576.57 Td (8.53) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 576.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.05 576.57 Td (9.37) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 561.20 Td (\(1\) Please refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 123.85 561.20 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 163.39 561.20 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 284.01 561.20 Td (Agr) Tj ET Q q 0 0 0 rg BT 298.64 561.20 Td (eement ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.46 561.20 Td (for discussion on how we are being carried on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.35 561.20 Td (90 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.27 561.20 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 549.20 Td (of certain drilling and completion costs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 524.00 Td (The following table provides average reserve replacement and finding and development cost metrics for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.80 Td (three-year period ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 157.19 510.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.63 510.80 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 462.3 m 321.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 462.3 m 333.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 462.3 m 400.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 462.3 m 475.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 462.3 m 487.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 462.3 m 553.5 462.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 438.3 m 321.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 438.3 m 400.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 438.3 m 475.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 438.3 m 553.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 438.3 m 321.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 438.3 m 400.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 438.3 m 475.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 438.3 m 553.5 438.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 364.3 m 258.5 364.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 278.45 478.20 Td (Reserve Replacement) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.10 467.20 Td (Percentage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 421.65 478.35 Td (Finding and Development ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 444.05 467.35 Td (Cost per) Tj ET Q q 0 0 0 rg BT 483.87 467.35 Td ( BOE ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 512.60 472.33 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 265.65 452.35 Td (Excluding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 261.45 441.35 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 343.85 452.35 Td (Including) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.45 441.35 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 419.65 452.35 Td (Excluding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 415.45 441.35 Td (Divestitures) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.35 452.35 Td (Including) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 491.95 441.35 Td (Divestitures) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 428.17 Td (Drilling, excluding revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 428.17 Td (383) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 428.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 428.17 Td (351) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 428.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 428.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.55 428.17 Td (10.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 428.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.55 428.17 Td (11.55) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 414.17 Td (Drilling, including revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 414.17 Td (365) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 414.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 414.17 Td (333) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 414.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 414.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.55 414.17 Td (11.11) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 414.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.55 414.17 Td (12.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 399.22 Td (Drilling and acquisitions, excluding revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 399.22 Td (384) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 399.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 399.22 Td (352) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 399.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 399.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.55 399.22 Td (10.62) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 399.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.55 399.22 Td (11.60) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 383.22 Td (Drilling and acquisitions, including revisions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 383.22 Td (366) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 383.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 383.22 Td (334) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 383.22 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 383.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.55 383.22 Td (11.15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 383.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.55 383.22 Td (12.23) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 368.17 Td (All-in) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 368.17 Td (366) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 368.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.30 368.17 Td (334) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.80 368.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.00 368.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.55 368.17 Td (11.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 368.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.55 368.17 Td (13.14) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (\(1\) Please refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 123.85 352.80 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 163.39 352.80 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 284.01 352.80 Td (Agr) Tj ET Q q 0 0 0 rg BT 298.64 352.80 Td (eement ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.46 352.80 Td (for discussion on how we are being carried on ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.35 352.80 Td (90 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 558.27 352.80 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 340.80 Td (of certain drilling and completion costs.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 315.60 Td (Our challenge is to grow net asset value per share, which we believe drives appreciation in our stock price ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (over the long term. ) Tj ET Q q 0 0 0 rg BT 139.00 302.40 Td (T) Tj ET Q q 0 0 0 rg BT 144.95 302.40 Td (o accomplish this, we believe it is important to or) Tj ET Q q 0 0 0 rg BT 362.26 302.40 Td (ganically and economically replace annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.20 Td (production with new reserves. ) Tj ET Q q 0 0 0 rg BT 187.88 289.20 Td (W) Tj ET Q q 0 0 0 rg BT 197.38 289.20 Td (e believe annual reserve replacement percentages and finding and development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (costs are important analytical measures and are widely used by investors and industry peers in evaluating and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.80 Td (comparing the performance of oil and gas companies. ) Tj ET Q q 0 0 0 rg BT 291.72 262.80 Td (While single-year measurements have some meaning in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 249.60 Td (terms of a trend, we believe aberrations, causing both positive and negative results, will occur over short intervals ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 236.40 Td (of time. ) Tj ET Q q 0 0 0 rg BT 89.52 236.40 Td (The information used to calculate the above reserve replacement and finding and development cost metrics ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 223.20 Td (is included in the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 128.21 223.20 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.92 223.20 Td ( section located in Part II, Item 8 of this report. For ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 210.00 Td (additional information about these metrics, see the reserve replacement and finding and development cost terms in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 196.80 Td (the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 66.19 196.80 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 181.61 196.80 Td (erms) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.00 196.80 Td ( at the end of Part I, Items 1 and 2 of this report.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 171.60 Td (Oil, Gas, and NGL) Tj ET Q q 0 0 0 rg BT 133.23 171.60 Td ( Prices) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 146.40 Td (Our financial condition and the results of our operations are significantly af) Tj ET Q q 0 0 0 rg BT 417.84 146.40 Td (fected by the prices we receive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (for our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 161.10 133.20 Td ( production, which can fluctuate dramatically) Tj ET Q q 0 0 0 rg BT 360.14 133.20 Td (. ) Tj ET Q q 0 0 0 rg BT 368.19 133.20 Td (W) Tj ET Q q 0 0 0 rg BT 377.69 133.20 Td (e sell the majority of our gas under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (contracts using first-of-the-month index pricing, which means gas produced in a given month is sold at the first-of-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (the-month price regardless of the spot price on the day the gas is produced. For assets where high BTU gas is sold ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (at the wellhead, we also receive additional value for the high ener) Tj ET Q q 0 0 0 rg BT 338.73 93.60 Td (gy content contained in the gas stream. Our NGL) Tj ET Q q 0 0 0 rg BT 557.65 93.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.40 Td (production is generally sold using contracts paying us a monthly average of the posted OPIS daily settlement prices, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 67.20 Td (adjusted for processing, transportation, and location dif) Tj ET Q q 0 0 0 rg BT 292.96 67.20 Td (ferentials. Our oil and condensate are sold using contracts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 54.00 Td (paying us various industry posted prices, most commonly NYMEX ) Tj ET Q q 0 0 0 rg BT 349.22 54.00 Td (WTI or ) Tj ET Q q 0 0 0 rg BT 384.04 54.00 Td (Ar) Tj ET Q q 0 0 0 rg BT 395.45 54.00 Td (gus Louisiana Light Sweet \(Ar) Tj ET Q q 0 0 0 rg BT 535.77 54.00 Td (gus ) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (LLS\). ) Tj ET Q q 0 0 0 rg BT 86.15 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.65 734.40 Td (e are paid the average of the daily settlement price for the respective posted prices for the period in which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (the product is produced, adjusted for quality) Tj ET Q q 0 0 0 rg BT 243.88 721.20 Td (, transportation, ) Tj ET Q q 0 0 0 rg BT 315.36 721.20 Td (API gravity) Tj ET Q q 0 0 0 rg BT 366.28 721.20 Td (, and location dif) Tj ET Q q 0 0 0 rg BT 440.62 721.20 Td (ferentials. Substantially all ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (of our oil production in our South ) Tj ET Q q 0 0 0 rg BT 201.04 708.00 Td (T) Tj ET Q q 0 0 0 rg BT 206.99 708.00 Td (exas & Gulf Coast region is condensate. ) Tj ET Q q 0 0 0 rg BT 389.17 708.00 Td (When we refer to realized oil, gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (NGL) Tj ET Q q 0 0 0 rg BT 72.20 694.80 Td ( prices below) Tj ET Q q 0 0 0 rg BT 130.13 694.80 Td (, the disclosed price represents the average price for the respective period unless otherwise ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (indicated. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 655.20 Td (The following table is a summary of commodity price data for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.22 655.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.67 655.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.17 655.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 548.17 655.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.63 642.00 Td (201) Tj ET Q q 0 0 0 rg BT 84.72 642.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 90.22 642.00 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 605.5 m 373.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 605.5 m 385.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 605.5 m 463.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 605.5 m 475.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 605.5 m 556.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 591.5 m 373.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 591.5 m 463.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 591.5 m 556.5 591.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 341.00 609.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 320.00 595.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 413.00 595.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 504.80 595.55 Td (2011) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 579.90673828125 m 142.50927734375 579.90673828125 l s q 0 0 0 rg BT 53.00 581.37 Td (Crude Oil \(per Bbl\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 567.37 Td (Average NYMEX price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 567.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 567.37 Td (97.99) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 567.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 567.37 Td (94.10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 567.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 567.37 Td (95.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 553.37 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 553.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 553.37 Td (91.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 553.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 553.37 Td (85.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 553.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 553.37 Td (88.23) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 523.90673828125 m 108.89697265625 523.90673828125 l s q 0 0 0 rg BT 53.00 525.37 Td (Natural Gas:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 511.37 Td (Average NYMEX price \(per MMBtu\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 511.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.05 511.37 Td (3.73) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 511.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.05 511.37 Td (2.75) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 511.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.05 511.37 Td (4.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 497.37 Td (Realized price \(per Mcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 497.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.05 497.37 Td (3.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 497.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.05 497.37 Td (2.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 497.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.05 497.37 Td (4.32) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 467.90673828125 m 125.70849609375 467.90673828125 l s q 0 0 0 rg BT 53.00 469.37 Td (NGLs \(per Bbl\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 455.37 Td (Average OPIS price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 455.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 455.37 Td (40.44) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 455.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 455.37 Td (44.91) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 455.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 455.37 Td (59.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 441.37 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.00 441.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 441.37 Td (35.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.00 441.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 441.37 Td (37.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.00 441.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 441.37 Td (53.32) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 424.6669921875 m 325 424.6669921875 l s q 0 0 0 rg BT 50.00 426.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 414.00 Td (Note: ) Tj ET Q q 0 0 0 rg BT 76.67 414.00 Td (A) Tj ET Q q 0 0 0 rg BT 83.14 414.00 Td (verage OPIS prices per barrel of NGL, historical or strip, are based on a product mix of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.98 414.00 Td (37%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.31 414.00 Td ( Ethane, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.57 414.00 Td (32%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.90 414.00 Td ( Propane, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.17 414.00 Td (6%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 560.50 414.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 402.00 Td (Isobutane, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 93.88 402.00 Td (1) Tj ET Q q 0 0 0 rg BT 98.51 402.00 Td (1%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.84 402.00 Td ( Normal Butane, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.65 402.00 Td (14%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.98 402.00 Td ( Natural Gasoline for all periods presented. ) Tj ET Q q 0 0 0 rg BT 393.24 402.00 Td (This product mix represents the industry ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.00 Td (standard composite barrel and does not necessarily represent our actual product mix for NGL) Tj ET Q q 0 0 0 rg BT 422.56 390.00 Td ( production. ) Tj ET Q q 0 0 0 rg BT 475.33 390.00 Td (Actual prices ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 378.00 Td (received for NGLs produced reflect our actual product mix.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 352.80 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 352.80 Td (e expect future prices for oil, gas, and NGLs to be volatile. In addition to supply and demand ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (fundamentals, as a global commodity) Tj ET Q q 0 0 0 rg BT 213.94 339.60 Td (, the price of oil will continue to be impacted by real or perceived geopolitical ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (risks in oil producing regions of the world, particularly the Middle East. ) Tj ET Q q 0 0 0 rg BT 372.10 326.40 Td (The relative strength of the U.S.dollar ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (compared to other currencies could af) Tj ET Q q 0 0 0 rg BT 216.25 313.20 Td (fect the price of oil. ) Tj ET Q q 0 0 0 rg BT 307.98 313.20 Td (The supply of NGLs in the U.S. is expected to continue ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (to grow in the near term as a result of the number of industry participants tar) Tj ET Q q 0 0 0 rg BT 386.12 300.00 Td (geting projects that produce these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (products. If demand does not keep pace with anticipated growth in NGL) Tj ET Q q 0 0 0 rg BT 370.64 286.80 Td ( supply) Tj ET Q q 0 0 0 rg BT 402.01 286.80 Td (, prices could be negatively ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (impacted. ) Tj ET Q q 0 0 0 rg BT 98.37 273.60 Td (The prices of several NGL) Tj ET Q q 0 0 0 rg BT 215.24 273.60 Td ( products correlate to the price of oil and accordingly are likely to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (directionally follow that market. Gas prices have been under sustained downward pressure due to high levels of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.20 Td (supply in recent years, although recent cold weather has provided a near term increase in pricing. Longer term, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.00 Td (think there remains a lar) Tj ET Q q 0 0 0 rg BT 156.70 234.00 Td (ge amount of productive supply) Tj ET Q q 0 0 0 rg BT 295.90 234.00 Td (, particularly in the Northeast United States, which we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td (anticipate will keep downward pressure on natural gas pricing. ) Tj ET Q q 0 0 0 rg BT 331.13 220.80 Td (The following table summarizes 12-month strip ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (prices for NYMEX ) Tj ET Q q 0 0 0 rg BT 137.47 207.60 Td (WTI oil, NYMEX Henry Hub gas, and OPIS NGLs \(same product mix as discussed under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 194.40 Td (table above\) as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.63 194.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.07 194.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.21 194.40 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.16 194.40 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 157.89999999999998 m 373.5 157.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 157.89999999999998 m 500.5 157.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 157.89999999999998 m 373.5 157.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 157.89999999999998 m 500.5 157.89999999999998 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 255.60 161.95 Td (As of February 12, 2014) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.70 161.95 Td (As of December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 147.77 Td (NYMEX WTI oil \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.00 147.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 147.77 Td (96.31) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.00 147.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.55 147.77 Td (95.79) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 133.77 Td (NYMEX Henry Hub gas \(per MMBtu\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.00 133.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.05 133.77 Td (4.64) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.00 133.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.05 133.77 Td (4.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 119.77 Td (OPIS NGLs \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.00 119.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 119.77 Td (40.49) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.00 119.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.55 119.77 Td (41.17) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (62) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (While quoted NYMEX oil and gas and OPIS NGL) Tj ET Q q 0 0 0 rg BT 309.23 734.40 Td ( prices are generally used as a basis for comparison ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (within our industry) Tj ET Q q 0 0 0 rg BT 133.62 721.20 Td (, the prices we receive are af) Tj ET Q q 0 0 0 rg BT 258.92 721.20 Td (fected by quality) Tj ET Q q 0 0 0 rg BT 332.12 721.20 Td (, ener) Tj ET Q q 0 0 0 rg BT 356.35 721.20 Td (gy content, location, and transportation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 708.00 Td (ferentials for these products. Consistent with all prior periods reported, our realized prices shown in the table ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (above do not include the impact of cash settlements from derivative contracts. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (Derivative ) Tj ET Q q 0 0 0 rg BT 98.97 669.60 Td (Activity) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 644.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 644.40 Td (e use financial derivative instruments as part of our financial risk management program. ) Tj ET Q q 0 0 0 rg BT 488.42 644.40 Td (W) Tj ET Q q 0 0 0 rg BT 497.92 644.40 Td (e have a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (financial risk management policy governing our use of derivatives. ) Tj ET Q q 0 0 0 rg BT 350.07 631.20 Td (The amount of our production covered by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (derivatives is driven by the amount of debt on our balance sheet and the level of capital commitments and long-term ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (obligations we have in place. ) Tj ET Q q 0 0 0 rg BT 183.29 604.80 Td (W) Tj ET Q q 0 0 0 rg BT 193.23 604.80 Td (ith our current derivative contracts, we believe we have established a base cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (flow stream for our future operations and have partially reduced our exposure to volatility in commodity prices. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (Our use of costless collars for a portion of our derivatives allows us to participate in some of the upward ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (movements in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 192.88 565.20 Td ( prices while also setting a price floor for a portion of our production. Please refer ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 61.31 552.00 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.47 552.00 Td ( in Part II, Item 8 of this report for additional information regarding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 145.52 538.80 Td ( derivatives.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 512.40 Td (The following table presents our realized prices and the ef) Tj ET Q q 0 0 0 rg BT 341.45 512.40 Td (fects of derivative cash settlements for the years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (ended December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.46 499.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 499.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.96 499.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.96 499.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.09 499.20 Td (201) Tj ET Q q 0 0 0 rg BT 233.18 499.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.68 499.20 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 460.5 m 426 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 460.5 m 430 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 460.5 m 493 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 460.5 m 498 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 460.5 m 561 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 445.5 m 426 445.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 445.5 m 493 445.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 445.5 m 561 445.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.00 465.40 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 383.00 450.40 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 450.00 450.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 518.30 450.40 Td (2011) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 52.5 433.95673828125 m 142.00927734375 433.95673828125 l s q 0 0 0 rg BT 52.50 435.42 Td (Crude Oil \(per Bbl\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 422.42 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 422.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.05 422.42 Td (91.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 422.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.05 422.42 Td (85.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 422.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.05 422.42 Td (88.23) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 409.42 Td (Effects of derivative cash settlements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 409.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.85 409.42 Td (\(1.27) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.80 409.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 409.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.85 409.42 Td (\(1.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.80 409.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 409.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.85 409.42 Td (\(9.34) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.80 409.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 52.5 380.95673828125 m 153.5947265625 380.95673828125 l s q 0 0 0 rg BT 52.50 382.42 Td (Natural Gas \(per Mcf\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 369.42 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 369.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.55 369.42 Td (3.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 369.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 369.42 Td (2.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 369.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.55 369.42 Td (4.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 356.42 Td (Effects of derivative cash settlements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 356.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.55 356.42 Td (0.21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 356.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 356.42 Td (0.50) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 356.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.55 356.42 Td (0.48) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 52.5 327.95673828125 m 125.20849609375 327.95673828125 l s q 0 0 0 rg BT 52.50 329.42 Td (NGLs \(per Bbl\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 316.42 Td (Realized price) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 316.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.05 316.42 Td (35.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 316.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.05 316.42 Td (37.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 316.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.05 316.42 Td (53.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 303.42 Td (Effects of derivative cash settlements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.50 303.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.55 303.42 Td (0.71) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.50 303.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 303.42 Td (1.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 303.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.85 303.42 Td (\(5.42) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.80 303.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 274.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 274.60 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 161.76 274.60 Td (Act included provisions requiring over) Tj ET Q q 0 0 0 rg BT 332.01 274.60 Td (-the-counter derivative transactions to be cleared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 261.40 Td (through clearinghouses and traded on exchanges. On July 10, 2012, the CFTC and the SEC adopted final joint ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 248.20 Td (rules under ) Tj ET Q q 0 0 0 rg BT 101.73 248.20 Td (T) Tj ET Q q 0 0 0 rg BT 108.06 248.20 Td (itle ) Tj ET Q q 0 0 0 rg BT 124.66 248.20 Td (VII of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 226.70 248.20 Td (Act, which define certain terms that determine what types of transactions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.00 Td (will be subject to regulation under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 275.45 235.00 Td (Act swap rules. ) Tj ET Q q 0 0 0 rg BT 348.87 235.00 Td (The issuance of these final rules also triggers ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 221.80 Td (compliance dates for a number of other final Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 304.44 221.80 Td (Act rules, including new rules proposed by the CFTC ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.60 Td (governing mar) Tj ET Q q 0 0 0 rg BT 114.25 208.60 Td (gin requirements for uncleared swaps entered into by non-bank swap entities, and new rules proposed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.40 Td (by U.S. banking regulators regarding mar) Tj ET Q q 0 0 0 rg BT 232.78 195.40 Td (gin requirements for uncleared swaps entered into by bank swap entities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.20 Td (The ultimate ef) Tj ET Q q 0 0 0 rg BT 116.99 182.20 Td (fect on our business of these new rules and any additional regulations is currently uncertain. Under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.00 Td (CFTC rules we believe our derivative activity will qualify for the non-financial, commercial end-user exception, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 155.80 Td (which exempts derivatives intended to hedge or mitigate commercial risk entered into by entities predominantly ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 142.60 Td (engaged in non-financial activity from the mandatory swap clearing requirement. However) Tj ET Q q 0 0 0 rg BT 452.74 142.60 Td (, we are not certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 129.40 Td (whether the provisions of the final rules and regulations will exempt us from the requirements to post mar) Tj ET Q q 0 0 0 rg BT 515.66 129.40 Td (gin in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 116.20 Td (connection with commodity price risk management activities. Final rules and regulations on major provisions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 103.00 Td (the legislation, such as new mar) Tj ET Q q 0 0 0 rg BT 190.32 103.00 Td (gin requirements, are to be established through regulatory rulemaking. ) Tj ET Q q 0 0 0 rg BT 502.20 103.00 Td (Although we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 89.80 Td (cannot predict the ultimate outcome of these rulemakings, new rules and regulations in this area may result in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 76.60 Td (increased costs and cash collateral requirements for the types of derivative instruments we use to manage our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 63.40 Td (financial risks related to volatility in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 290.62 63.40 Td ( commodity prices.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (63) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 72.00 734.40 Td ( Highlights) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.20 Td (Pr) Tj ET Q q 0 0 0 rg BT 96.59 709.20 Td (oduction Results. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.86 709.20 Td (The table below provides a regional breakdown of our production for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.46 709.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.46 709.20 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 650.7 m 302.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 650.7 m 359.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 650.7 m 419.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 650.7 m 482.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 650.7 m 539.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 594.7 m 302.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 594.7 m 359.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 594.7 m 419.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 594.7 m 482.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 594.7 m 539.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 594.7 m 302.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 594.7 m 359.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 594.7 m 419.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 594.7 m 482.5 594.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 594.7 m 539.5 594.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 262.20 688.60 Td (South) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 256.75 677.60 Td (Texas &) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 265.30 666.60 Td (Gulf) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 262.55 655.60 Td (Coast) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 317.50 666.60 Td (Rocky) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 309.25 655.60 Td (Mountain) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 371.30 655.60 Td (Permian) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 440.85 666.60 Td (Mid-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 428.95 655.60 Td (Continent) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 494.90 655.60 Td (T) Tj ET Q q 0 0 0 rg BT 501.23 655.60 Td (otal ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 521.70 660.58 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 640.57 Td (Production:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 626.57 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.25 626.57 Td (5.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.25 626.57 Td (6.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.25 626.57 Td (1.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.25 626.57 Td (0.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.75 626.57 Td (13.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 612.57 Td (Gas \(Bcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.75 612.57 Td (98.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.25 612.57 Td (5.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.25 612.57 Td (3.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.75 612.57 Td (41.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.25 612.57 Td (149.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 598.57 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.25 598.57 Td (9.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.80 598.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.80 598.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.05 598.57 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.25 598.57 Td (9.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 583.62 Td (Equivalent \(MMBOE\) ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 167.04 588.61 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.75 583.62 Td (30.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.25 583.62 Td (7.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.25 583.62 Td (2.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.25 583.62 Td (7.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.75 583.62 Td (48.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 567.62 Td (Avg. Daily Equivalents \(MBOE/d\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.75 567.62 Td (84.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.75 567.62 Td (20.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.25 567.62 Td (6.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.75 567.62 Td (21.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.25 567.62 Td (132.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 552.57 Td (Relative percentage) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.80 552.57 Td (64) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.80 552.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.80 552.57 Td (15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.80 552.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.30 552.57 Td (5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.80 552.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.80 552.57 Td (16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.80 552.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.25 552.57 Td (100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.80 552.57 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.00 549.20 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 537.20 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 63.98 537.20 Td (T) Tj ET Q q 0 0 0 rg BT 69.39 537.20 Td (otals may not sum or recalculate due to rounding.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 512.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 512.00 Td (e had record production in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.32 512.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.32 512.00 Td (, which was primarily driven by the continued development of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.80 Td (operated and non-operated Eagle Ford shale programs in our South ) Tj ET Q q 0 0 0 rg BT 347.94 498.80 Td (T) Tj ET Q q 0 0 0 rg BT 353.89 498.80 Td (exas & Gulf Coast region. Please refer to) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 537.48 498.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 485.60 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 223.26 485.60 Td (r) Tj ET Q q 0 0 0 rg BT 227.13 485.60 Td (ends between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 288.84 485.60 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 310.84 485.60 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 332.84 485.60 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 354.84 485.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.59 485.60 Td (below for additional discussion on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.40 Td (production.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 447.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 447.20 Td (Costs Incurr) Tj ET Q q 0 0 0 rg BT 140.90 447.20 Td (ed in Oil and Gas Pr) Tj ET Q q 0 0 0 rg BT 232.46 447.20 Td (oducing ) Tj ET Q q 0 0 0 rg BT 270.45 447.20 Td (Activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.63 447.20 Td (Costs incurred in oil and gas property acquisition, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.00 Td (exploration and development activities, whether capitalized or expensed, are summarized as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 383.5 m 353.5 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 299.5 m 353.5 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 299.5 m 353.5 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 286.5 m 353.5 286.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 284.5 m 353.5 284.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 257.60 399.40 Td (For the Year Ended) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 259.15 388.40 Td (December 31, 2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 275.20 373.55 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 359.37 Td (Development costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.00 359.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.30 359.37 Td (1,350.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 345.37 Td (Exploration costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 345.37 Td (168.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 331.37 Td (Acquisitions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.50 317.37 Td (Proved properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.05 317.37 Td (29.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.50 303.37 Td (Unproved properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 303.37 Td (172.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 289.37 Td (Total, including asset retirement obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.00 289.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.30 289.37 Td (1,721.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.00 286.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 260.80 Td ( ) Tj ET Q q 0 0 0 rg BT 88.55 260.80 Td (The majority of costs incurred for oil and gas producing activities during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.75 260.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.75 260.80 Td ( related to the development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.60 Td (of our Eagle Ford shale and Bakken/Three Forks programs. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 382.95 247.60 Td (Overview of Liquidity and Capital ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 234.40 Td (Resour) Tj ET Q q 0 0 0 rg BT 80.75 234.40 Td (ces) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.80 234.40 Td ( below for additional discussion on how we expect to fund our capital program in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.58 234.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.58 234.40 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 209.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 209.20 Td (Impairment of Pr) Tj ET Q q 0 0 0 rg BT 161.97 209.20 Td (oved Pr) Tj ET Q q 0 0 0 rg BT 196.08 209.20 Td (operties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.27 209.20 Td ( ) Tj ET Q q 0 0 0 rg BT 239.57 209.20 Td (W) Tj ET Q q 0 0 0 rg BT 249.07 209.20 Td (e recorded impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.42 209.20 Td ($172.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.20 209.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 196.00 Td (for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.46 196.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.90 196.00 Td (. ) Tj ET Q q 0 0 0 rg BT 226.95 196.00 Td (The impairments in 2013 were a result of negative engineering revisions on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.80 Td (Mississippian limestone assets in our Permian region at the end of the year) Tj ET Q q 0 0 0 rg BT 378.27 182.80 Td (, a plugging and abandonment program ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.60 Td (of our Olmos interval, dry gas assets in our South ) Tj ET Q q 0 0 0 rg BT 270.69 169.60 Td (T) Tj ET Q q 0 0 0 rg BT 276.64 169.60 Td (exas & Gulf Coast region, and our decision to no longer pursue ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.40 Td (the development of certain under) Tj ET Q q 0 0 0 rg BT 195.16 156.40 Td (-performing assets during the year) Tj ET Q q 0 0 0 rg BT 345.45 156.40 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 131.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 131.20 Td (Divestitur) Tj ET Q q 0 0 0 rg BT 129.59 131.20 Td (e ) Tj ET Q q 0 0 0 rg BT 137.02 131.20 Td (Activity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.61 131.20 Td (. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.77 131.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.77 131.20 Td (, we received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.85 131.20 Td ($445.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.63 131.20 Td ( in total divestiture proceeds from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 118.00 Td (divestitures of non-strategic properties, with the sale of our ) Tj ET Q q 0 0 0 rg BT 312.10 118.00 Td (Anadarko Basin assets in December 2013 being the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 104.80 Td (most significant transaction. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 245.50 104.80 Td (Note 3 - Divestitur) Tj ET Q q 0 0 0 rg BT 327.27 104.80 Td (es and ) Tj ET Q q 0 0 0 rg BT 358.24 104.80 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.14 104.80 Td ( in PartII,Item 8 of this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 91.60 Td (report for additional discussion. ) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (64) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (2024 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.81 734.40 Td (. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.97 734.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.97 734.40 Td (, we issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.30 734.40 Td ($500.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.08 734.40 Td ( in aggregate principal amount of 5.0% Senior Notes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (The notes were issued at par and mature on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.35 721.20 Td (January 15, 2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.81 721.20 Td (. ) Tj ET Q q 0 0 0 rg BT 326.86 721.20 Td (W) Tj ET Q q 0 0 0 rg BT 336.36 721.20 Td (e received net proceeds of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.93 721.20 Td ($490.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.71 721.20 Td ( from this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (issuance, which we used to reduce outstanding borrowings under our credit facility) Tj ET Q q 0 0 0 rg BT 414.63 708.00 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 488.54 708.00 Td (Note 5 - Long-) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (term Debt) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.30 694.80 Td ( in PartII,Item 8 of this report for additional discussion.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 669.60 Td (Revolving Cr) Tj ET Q q 0 0 0 rg BT 143.94 669.60 Td (edit Facility) Tj ET Q q 0 0 0 rg BT 196.78 669.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.53 669.60 Td ( On ) Tj ET Q q 0 0 0 rg BT 220.62 669.60 Td (April 12, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.09 669.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.09 669.60 Td (, we and our lenders entered into a Fifth ) Tj ET Q q 0 0 0 rg BT 462.87 669.60 Td (Amended and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (Restated Credit ) Tj ET Q q 0 0 0 rg BT 120.26 656.40 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 177.18 656.40 Td (The credit facility has aggregate lender commitments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.42 656.40 Td ($1.3 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.14 656.40 Td ( and a maturity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.38 643.20 Td (April12, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.85 643.20 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 220.76 643.20 Td (Overview of Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 405.20 643.20 Td (ces) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.24 643.20 Td ( below for additional discussion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (of our credit facility) Tj ET Q q 0 0 0 rg BT 137.55 630.00 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 604.80 Td (Operational ) Tj ET Q q 0 0 0 rg BT 142.33 604.80 Td (Activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.50 604.80 Td (The primary focus of our operated drilling activity this year was oil and NGL-rich ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (gas projects, with the majority of our 2013 capital budget being deployed to our Eagle Ford, Bakken/Three Forks ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (and Permian development programs. ) Tj ET Q q 0 0 0 rg BT 217.20 578.40 Td (W) Tj ET Q q 0 0 0 rg BT 226.70 578.40 Td (e also participated in outside operated drilling activities primarily in oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (NGL-rich plays. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 540.00 Td (In our Eagle Ford shale program in South ) Tj ET Q q 0 0 0 rg BT 271.54 540.00 Td (T) Tj ET Q q 0 0 0 rg BT 277.50 540.00 Td (exas, we operated five drilling rigs for the first half of the year) Tj ET Q q 0 0 0 rg BT 551.48 540.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (At midyear) Tj ET Q q 0 0 0 rg BT 99.35 526.80 Td (, we reduced our rig count by one due to gains in ef) Tj ET Q q 0 0 0 rg BT 325.50 526.80 Td (ficiencies through pad drilling, which allowed us to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (complete more wells per drilling rig. Our 2013 drilling program focused lar) Tj ET Q q 0 0 0 rg BT 384.91 513.60 Td (gely on multi-well pad drilling on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (northern portions of our acreage position, which have higher condensate and NGL) Tj ET Q q 0 0 0 rg BT 411.87 500.40 Td ( yields. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 475.20 Td (In our outside operated Eagle Ford shale program, the operator ran nine drilling rigs throughout ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.39 475.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.39 475.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (adding a tenth rig near the end of the year) Tj ET Q q 0 0 0 rg BT 232.96 462.00 Td (. ) Tj ET Q q 0 0 0 rg BT 241.01 462.00 Td (The majority of our non-operated Eagle Ford drilling and completion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (costs were funded by Mitsui during 2013 under the terms of our previously announced ) Tj ET Q q 0 0 0 rg BT 433.09 448.80 Td (Acquisition and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (Development ) Tj ET Q q 0 0 0 rg BT 111.40 435.60 Td (Agreement. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 410.40 Td (In our Bakken/Three Forks program in the North Dakota portion of the ) Tj ET Q q 0 0 0 rg BT 401.06 410.40 Td (W) Tj ET Q q 0 0 0 rg BT 411.00 410.40 Td (illiston Basin, we started the year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (with four operated rigs. ) Tj ET Q q 0 0 0 rg BT 158.14 397.20 Td (At midyear) Tj ET Q q 0 0 0 rg BT 207.49 397.20 Td (, we released two of our traditional rigs and contracted a higher ef) Tj ET Q q 0 0 0 rg BT 497.15 397.20 Td (ficiency ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (walking rig. Our 2013 drilling program was focused on infill drilling of our Gooseneck and Raven/Bear Den ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (prospects by utilizing multi-well pads to further optimize our program. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 345.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 345.60 Td (In the second quarter of 2013, we closed our acquisition of approximately 40,000 net acres in the Powder ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.40 Td (River Basin, and in the third quarter we acquired an additional 33,000 net acres through a trade of non-core ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.20 Td (Northern DJ Basin assets, bringing our total year) Tj ET Q q 0 0 0 rg BT 264.85 319.20 Td (-end acreage in the Powder River Basin to approximately 140,000 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 306.00 Td (net acres. ) Tj ET Q q 0 0 0 rg BT 96.83 306.00 Td (W) Tj ET Q q 0 0 0 rg BT 106.33 306.00 Td (e dedicated one rig to the Powder River Basin in the fourth quarter of 2013, which focused on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.80 Td (delineation of the Frontier formation. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 267.60 Td (During 2013, we operated between two and three drilling rigs in our Permian region. In the first half of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 254.40 Td (year) Tj ET Q q 0 0 0 rg BT 68.49 254.40 Td (, we focused on three areas: development of the Bone Spring formation in southeast New Mexico, delineation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 241.20 Td (of the Mississippian limestone formation, and testing of various shale tar) Tj ET Q q 0 0 0 rg BT 370.27 241.20 Td (gets, including the ) Tj ET Q q 0 0 0 rg BT 453.78 241.20 Td (W) Tj ET Q q 0 0 0 rg BT 463.28 241.20 Td (olfcamp shale in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 228.00 Td (Midland Basin. ) Tj ET Q q 0 0 0 rg BT 122.72 228.00 Td (As we moved into the second half of the year) Tj ET Q q 0 0 0 rg BT 321.75 228.00 Td (, our focus transitioned to primarily testing the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 214.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 214.80 Td (olfcamp B interval on our Sweetie Peck acreage in the Midland Basin. During 2013, we acquired additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.60 Td (acreage in the Permian Basin bringing our total to approximately 130,000 net acres at year) Tj ET Q q 0 0 0 rg BT 447.79 201.60 Td (-end. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 176.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 176.40 Td (In December 2013, we closed the sale of our Mid-Continent region ) Tj ET Q q 0 0 0 rg BT 383.53 176.40 Td (Anadarko Basin assets, which included ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 163.20 Td (our interests in the Granite ) Tj ET Q q 0 0 0 rg BT 169.85 163.20 Td (W) Tj ET Q q 0 0 0 rg BT 179.35 163.20 Td (ash interval. Please see the ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 302.45 163.20 Td (Divestitur) Tj ET Q q 0 0 0 rg BT 346.03 163.20 Td (e ) Tj ET Q q 0 0 0 rg BT 353.47 163.20 Td (Activity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.06 163.20 Td ( section above for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 150.00 Td (information.) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (65) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Outlook for ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 103.78 734.40 Td (2014) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 125.78 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 708.00 Td (e enter ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.87 708.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 149.87 708.00 Td ( with a planned capital program of approximately $1.9 billion, of which approximately $1.7 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (billion will be focused on drilling and completion activities. ) Tj ET Q q 0 0 0 rg BT 318.95 694.80 Td (W) Tj ET Q q 0 0 0 rg BT 328.45 694.80 Td (e expect that approximately 85 percent of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (drilling budget will be spent on our Eagle Ford shale, Bakken/Three Forks, and Permian shale programs. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 656.40 Td (In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.91 656.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 656.40 Td (, we plan to invest approximately $650 million of drilling and completion capital in our operated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (Eagle Ford shale program. ) Tj ET Q q 0 0 0 rg BT 171.99 643.20 Td (Throughout 2014, we plan to operate five drilling rigs supported by two frac spreads, all ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (of which will be primarily focused on pad drilling in the northern portion of our acreage position where there is a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (higher liquid contribution to our production mix. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.19 616.80 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.19 616.80 Td (, we plan to continue to refine our development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (program and well designs to optimize well performance and capital ef) Tj ET Q q 0 0 0 rg BT 357.69 603.60 Td (ficiency) Tj ET Q q 0 0 0 rg BT 392.40 603.60 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 578.40 Td (In our non-operated Eagle Ford shale program, we expect the balance of the carry amount to be exhausted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (in early 2014. ) Tj ET Q q 0 0 0 rg BT 116.09 565.20 Td (W) Tj ET Q q 0 0 0 rg BT 125.59 565.20 Td (e plan to invest approximately $250 million of un-carried drilling and completion capital in this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (program in 2014 based on our anticipation of increased drilling and completion activity from 2013. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 525.60 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 525.60 Td (e plan to deploy approximately $350 million of our capital budget in our Bakken/Three Forks program, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (80 percent of which will be spent on operated properties. In 2014, we plan to operate three drilling rigs focusing on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (infill drilling of our Raven/Bear Den and Gooseneck prospects. During 2014, we plan to monitor results of various ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (well design and down-spacing tests of both our operated and non-operated properties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 460.80 Td (In our Permian program, we plan to deploy approximately $155 million of drilling and completion capital. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 447.60 Td (e plan to operate two to three drilling rigs throughout 2014, focusing on horizontal testing and development of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 434.40 Td (olfcamp formation in our Sweetie Peck and Buf) Tj ET Q q 0 0 0 rg BT 269.77 434.40 Td (falo prospects. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 409.20 Td ( Of the remaining $255 million of our drilling and completion capital planned for 2014, the majority will be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (deployed in our Powder River Basin and East ) Tj ET Q q 0 0 0 rg BT 253.26 396.00 Td (T) Tj ET Q q 0 0 0 rg BT 259.21 396.00 Td (exas programs. ) Tj ET Q q 0 0 0 rg BT 331.11 396.00 Td (W) Tj ET Q q 0 0 0 rg BT 340.61 396.00 Td (e plan to operate two drilling rigs in the Powder ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (River Basin tar) Tj ET Q q 0 0 0 rg BT 116.40 382.80 Td (geting the Frontier formation. ) Tj ET Q q 0 0 0 rg BT 252.45 382.80 Td (W) Tj ET Q q 0 0 0 rg BT 261.95 382.80 Td (e plan to operate between one and three drilling rigs on our East ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 369.60 Td (exas Eagle Ford shale and ) Tj ET Q q 0 0 0 rg BT 173.35 369.60 Td (W) Tj ET Q q 0 0 0 rg BT 182.85 369.60 Td (oodbine acreage in 2014. ) Tj ET Q q 0 0 0 rg BT 298.72 369.60 Td (The majority of this budgeted capital will be spent on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (operated properties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 331.20 Td (Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 151.66 331.20 Td (Overview of Liquidity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.59 331.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 250.34 331.20 Td (and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.84 331.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 269.59 331.20 Td (Capital Resour) Tj ET Q q 0 0 0 rg BT 336.10 331.20 Td (ces) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.15 331.20 Td ( below for additional discussion regarding how ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (we intend to fund our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.45 318.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 169.45 318.00 Td ( capital program.) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (66) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 734.60 Td (Financial Results of Operations and ) Tj ET Q q 0 0 0 rg BT 220.33 734.60 Td (Additional Comparative Data) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 709.40 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 709.40 Td (The table below provides information regarding selected production and financial information for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 696.20 Td (quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.41 696.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.85 696.20 Td (, and the immediately preceding three quarters. ) Tj ET Q q 0 0 0 rg BT 410.83 696.20 Td (Additional details of per BOE ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 683.00 Td (costs are presented later in this section.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 646.5 m 341 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341 646.5 m 347 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 646.5 m 421 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 646.5 m 427 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 646.5 m 492 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 646.5 m 498 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 646.5 m 563 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 646.5 m 563 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 617.5 m 341 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 617.5 m 421 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 617.5 m 492 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 617.5 m 563 617.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 346.00 650.55 Td (For the Three Months Ended) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.50 636.40 Td (December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 349.95 636.40 Td (September 30,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 439.40 636.40 Td (June 30,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 505.95 636.40 Td (March 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.50 621.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 372.50 621.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 448.00 621.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 519.00 621.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 321.20 607.55 Td (\(in millions, except for production data\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 593.37 Td (Production \(MMBOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 593.37 Td (13.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 593.37 Td (12.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 593.37 Td (12.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 593.37 Td (10.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 579.37 Td (Oil, gas, and NGL production revenue) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 579.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.05 579.37 Td (593.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 579.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.05 579.37 Td (601.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 579.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.05 579.37 Td (534.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 579.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 579.37 Td (469.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 565.37 Td (Lease operating expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 565.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 565.37 Td (61.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 565.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 565.37 Td (61.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 565.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 565.37 Td (56.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 565.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 565.37 Td (54.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 551.37 Td (Transportation costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 551.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 551.37 Td (75.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 551.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 551.37 Td (68.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 551.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 551.37 Td (67.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 551.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 551.37 Td (47.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 537.37 Td (Production taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 537.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 537.37 Td (26.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 537.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 537.37 Td (29.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 537.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 537.37 Td (26.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 537.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 537.37 Td (23.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 523.37 Td (DD&A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 523.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.05 523.37 Td (202.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 523.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.05 523.37 Td (195.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 523.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.05 523.37 Td (225.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 523.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.05 523.37 Td (198.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 509.37 Td (Exploration) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 509.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 509.37 Td (21.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 509.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 509.37 Td (16.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 509.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 509.37 Td (20.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 509.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 509.37 Td (15.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 495.37 Td (General and administrative) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 495.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.55 495.37 Td (48.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 495.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 495.37 Td (33.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 495.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 495.37 Td (35.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 495.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 495.37 Td (32.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.50 481.37 Td (Net income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.50 481.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.05 481.37 Td (7.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 481.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.55 481.37 Td (70.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 481.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 481.37 Td (76.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.50 481.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.55 481.37 Td (16.7) Tj ET Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 451.60 Td (Selected Performance Metrics:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 426.1 m 328 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 426.1 m 332 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 426.1 m 406 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 426.1 m 410 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 426.1 m 484 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 426.1 m 488 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 426.1 m 562 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 396.1 m 328 396.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 396.1 m 406 396.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 396.1 m 484 396.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 396.1 m 562 396.1 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.00 431.00 Td (For the Three Months Ended) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 258.50 416.00 Td (December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 334.95 416.00 Td (September 30,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.90 416.00 Td (June 30,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 500.45 416.00 Td (March 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 279.50 401.00 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 357.50 401.00 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 435.50 401.00 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 513.50 401.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 385.02 Td (Average net daily production equivalent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 374.02 Td (\(MBOE per day\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.55 374.02 Td (143.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.55 374.02 Td (138.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.55 374.02 Td (131.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 374.02 Td (115.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 358.02 Td (Lease operating expense \(per BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 358.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.05 358.02 Td (4.62) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.50 358.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 358.02 Td (4.77) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.50 358.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.05 358.02 Td (4.69) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.50 358.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.05 358.02 Td (5.28) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 342.02 Td (Transportation costs \(per BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 342.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.05 342.02 Td (5.67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.50 342.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 342.02 Td (5.38) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.50 342.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.05 342.02 Td (5.59) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.50 342.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.05 342.02 Td (4.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 326.02 Td (Production taxes as a percent of oil, gas, and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 315.02 Td (NGL production revenue) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.55 315.02 Td (4.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.30 315.02 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.55 315.02 Td (4.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.30 315.02 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.55 315.02 Td (5.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 315.02 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.55 315.02 Td (5.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.30 315.02 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 299.02 Td (Depletion, depreciation, amortization, and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 288.02 Td (asset retirement obligation liability accretion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 277.02 Td (expense \(per BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 277.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.55 277.02 Td (15.31) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.50 277.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.55 277.02 Td (15.33) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.50 277.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.55 277.02 Td (18.82) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.50 277.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.55 277.02 Td (19.20) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 51.50 261.02 Td (General and administrative \(per BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 261.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.05 261.02 Td (3.63) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.50 261.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.05 261.02 Td (2.66) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.50 261.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.05 261.02 Td (2.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.50 261.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.05 261.02 Td (3.12) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 243.40 Td (Note: ) Tj ET Q q 0 0 0 rg BT 76.08 243.40 Td (Amounts may not recalculate due to rounding. ) Tj ET Q endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (67) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 734.60 Td (A) Tj ET Q q 0 0 0 rg BT 56.84 734.60 Td ( year) Tj ET Q q 0 0 0 rg BT 79.94 734.60 Td (-to-year) Tj ET Q q 0 0 0 rg BT 117.00 734.60 Td ( overview of selected pr) Tj ET Q q 0 0 0 rg BT 226.76 734.60 Td (oduction and financial information, including tr) Tj ET Q q 0 0 0 rg BT 451.48 734.60 Td (ends:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 700.1 m 257 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 700.1 m 261 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 700.1 m 303 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 700.1 m 307 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 700.1 m 349 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 700.1 m 402 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 700.1 m 406 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 700.1 m 455 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 700.1 m 508 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 700.1 m 514 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 700.1 m 563 700.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 687.1 m 257 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 687.1 m 303 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 687.1 m 349 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 687.1 m 402 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 687.1 m 455 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 687.1 m 508 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 687.1 m 563 687.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 479.1 m 257 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 479.1 m 303 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 479.1 m 349 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 479.1 m 402 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 479.1 m 455 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 479.1 m 257 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 466.1 m 257 466.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 464.1 m 257 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 479.1 m 303 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 466.1 m 303 466.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 464.1 m 303 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 479.1 m 349 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 466.1 m 349 466.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 464.1 m 349 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 479.1 m 402 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 466.1 m 402 466.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 464.1 m 402 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 479.1 m 455 479.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 466.1 m 455 466.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 464.1 m 455 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 397.1 m 257 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 397.1 m 303 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 397.1 m 349 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 397.1 m 402 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 397.1 m 455 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 397.1 m 257 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 384.1 m 257 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 382.1 m 257 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 397.1 m 303 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 384.1 m 303 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 382.1 m 303 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 397.1 m 349 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 384.1 m 349 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 382.1 m 349 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 397.1 m 402 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 384.1 m 402 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 382.1 m 402 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 397.1 m 455 397.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 384.1 m 455 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 382.1 m 455 382.1 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 237.75 714.78 Td (For the Years Ended) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 252.40 704.78 Td (December 31,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 368.35 714.83 Td (Amount Change) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 385.45 704.83 Td (Between) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.55 714.83 Td (Percent Change) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 492.45 704.83 Td (Between) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.50 690.83 Td (2013) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 271.50 690.83 Td (2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 317.75 690.83 Td (2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 355.60 690.83 Td (2013/2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 408.85 690.83 Td (2012/2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 461.60 690.83 Td (2013/2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.85 690.83 Td (2012/2011) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 676.3333984375 m 149.150390625 676.3333984375 l s q 0 0 0 rg BT 52.50 677.67 Td (Net production volumes) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 149.15 682.20 Td ( \(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 663.67 Td (Oil \(MMBbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 663.67 Td (13.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 663.67 Td (10.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.65 663.67 Td (8.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 663.67 Td (3.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.00 663.67 Td (2.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 663.67 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 663.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 663.67 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 663.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 649.67 Td (Gas \(Bcf\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 649.67 Td (149.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 649.67 Td (120.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 649.67 Td (100.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 649.67 Td (29.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.00 649.67 Td (19.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 649.67 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 649.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 649.67 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 649.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 635.67 Td (NGLs \(MMBbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.65 635.67 Td (9.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.65 635.67 Td (6.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.65 635.67 Td (3.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 635.67 Td (3.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.00 635.67 Td (2.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 635.67 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 635.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 635.67 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 635.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 621.67 Td (Equivalent \(MMBOE\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 621.67 Td (48.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 621.67 Td (36.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 621.67 Td (28.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 621.67 Td (11.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.00 621.67 Td (8.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 621.67 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 621.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 621.67 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 621.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 606.3333984375 m 168.662109375 606.3333984375 l s q 0 0 0 rg BT 52.50 607.67 Td (A) Tj ET Q q 0 0 0 rg BT 58.98 607.67 Td (verage net daily production) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.66 607.67 Td ( ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 171.16 612.20 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 593.67 Td (Oil \(MBbl per day\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 593.67 Td (38.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 593.67 Td (28.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 593.67 Td (22.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 593.67 Td (9.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.00 593.67 Td (6.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 593.67 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 593.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 593.67 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 593.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 579.67 Td (Gas \(MMcf per day\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 579.67 Td (409.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 579.67 Td (328.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 579.67 Td (274.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 579.67 Td (81.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.00 579.67 Td (53.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 579.67 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 579.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 579.67 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 579.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 565.67 Td (NGLs \(MBbl per day\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 565.67 Td (26.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 565.67 Td (16.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.65 565.67 Td (9.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 565.67 Td (9.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.00 565.67 Td (7.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 565.67 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 565.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 565.67 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 565.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 551.67 Td (Equivalent \(MBOE per day\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 551.67 Td (132.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 551.67 Td (99.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 551.67 Td (77.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 551.67 Td (32.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.00 551.67 Td (22.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 551.67 Td (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 551.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 551.67 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 551.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 534.4333984375 m 205.6982421875 534.4333984375 l s q 0 0 0 rg BT 52.50 535.77 Td (Oil, gas, and NGL production revenue) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 524.4333984375 m 102.2216796875 524.4333984375 l s q 0 0 0 rg BT 52.50 525.77 Td (\(in millions\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 511.67 Td (Oil production revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 511.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.10 511.67 Td (1,271.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 511.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 511.67 Td (886.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 511.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 511.67 Td (712.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 511.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 511.67 Td (385.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 511.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 511.67 Td (173.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 511.67 Td (43) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 511.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 511.67 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 511.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 497.67 Td (Gas production revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 497.67 Td (586.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 497.67 Td (357.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 497.67 Td (433.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 497.67 Td (228.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 497.72 Td (\(75.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 497.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 497.67 Td (64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 497.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.45 497.67 Td (\(17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 497.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 483.67 Td (NGL production revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 483.67 Td (341.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 483.67 Td (230.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 483.67 Td (186.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 483.67 Td (111.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 483.67 Td (43.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 483.67 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 483.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 483.67 Td (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 483.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 469.67 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 469.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.10 469.67 Td (2,199.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 469.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 269.10 469.67 Td (1,473.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 469.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.10 469.67 Td (1,332.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 469.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 469.67 Td (725.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 469.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 469.67 Td (141.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 469.67 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 469.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 469.67 Td (11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 469.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 452.43339843750005 m 206.259765625 452.43339843750005 l s q 0 0 0 rg BT 52.50 453.77 Td (Oil, gas, and NGL production expense) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 442.43339843750005 m 102.2216796875 442.43339843750005 l s q 0 0 0 rg BT 52.50 443.77 Td (\(in millions\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 429.67 Td (Lease operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 429.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 429.67 Td (233.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 429.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 429.67 Td (180.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 429.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 429.67 Td (149.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 429.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 429.67 Td (52.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 429.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 429.67 Td (30.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 429.67 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 429.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 429.67 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 429.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 415.67 Td (Transportation costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 415.67 Td (258.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 415.67 Td (138.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 415.67 Td (86.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 415.67 Td (119.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 415.67 Td (52.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 415.67 Td (86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 415.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 415.67 Td (61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 415.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 401.67 Td (Production taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 401.67 Td (105.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 401.67 Td (72.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 401.67 Td (53.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 401.67 Td (32.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 401.67 Td (19.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 401.67 Td (45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 401.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 401.67 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 401.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 387.67 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 387.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 387.67 Td (597.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 387.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 387.67 Td (391.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 387.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 387.67 Td (290.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 387.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 387.67 Td (205.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 387.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 387.67 Td (101.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 387.67 Td (52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 387.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 387.67 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 387.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 372.3333984375 m 109.9658203125 372.3333984375 l s q 0 0 0 rg BT 52.50 373.67 Td (Realized price) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 359.67 Td (Oil \(per Bbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 359.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 359.67 Td (91.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 359.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 359.67 Td (85.45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 359.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 359.67 Td (88.23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 359.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 359.67 Td (5.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 359.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 359.72 Td (\(2.78) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 359.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.80 359.67 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 359.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.45 359.67 Td (\(3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 359.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 345.67 Td (Gas \(per Mcf\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 345.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 345.67 Td (3.93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 345.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 345.67 Td (2.98) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 345.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 345.67 Td (4.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 345.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 345.67 Td (0.95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 345.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 345.72 Td (\(1.34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 345.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 345.67 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 345.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.45 345.67 Td (\(31) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 345.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 331.67 Td (NGLs \(per Bbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 331.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 331.67 Td (35.95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 331.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 331.67 Td (37.61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 331.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 331.67 Td (53.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 331.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 331.72 Td (\(1.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 331.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 331.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.30 331.72 Td (\(15.71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 331.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.45 331.67 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 331.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.45 331.67 Td (\(29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 331.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 317.67 Td (Per BOE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 317.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 317.67 Td (45.50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 317.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 317.67 Td (40.39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 317.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 317.67 Td (47.10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 317.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 317.67 Td (5.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 317.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 317.72 Td (\(6.71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 317.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 317.67 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 317.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.45 317.67 Td (\(14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 317.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 302.3333984375 m 107.4853515625 302.3333984375 l s q 0 0 0 rg BT 52.50 303.67 Td (Per BOE data) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 289.67 Td (Production costs:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 275.67 Td ( Lease operating expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 275.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 275.67 Td (4.82) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 275.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 275.67 Td (4.93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 275.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 275.67 Td (5.30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 275.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 275.72 Td (\(0.11) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 275.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 275.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 275.72 Td (\(0.37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 275.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.45 275.67 Td (\(2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 275.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.45 275.67 Td (\(7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 275.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 261.67 Td ( Transportation costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 261.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 261.67 Td (5.34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 261.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 261.67 Td (3.81) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 261.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 261.67 Td (3.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 261.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 261.67 Td (1.53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 261.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 261.67 Td (0.76) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 261.67 Td (40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 261.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 261.67 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 261.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 247.67 Td ( Production taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 247.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 247.67 Td (2.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 247.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 247.67 Td (2.00) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 247.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 247.67 Td (1.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 247.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 247.67 Td (0.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 247.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 247.67 Td (0.10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.75 247.67 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 247.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.80 247.67 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 247.67 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 233.67 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 233.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 233.67 Td (3.09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 233.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.65 233.67 Td (3.28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 233.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 233.67 Td (4.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 233.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 233.72 Td (\(0.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 233.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 233.67 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 233.72 Td (\(0.91) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 233.67 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.45 233.67 Td (\(6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 233.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.45 233.67 Td (\(22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 233.67 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 219.67 Td (Depletion, depreciation, amortization,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 209.67 Td (and asset retirement obligation liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 199.67 Td (accretion expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 199.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.60 199.77 Td (17.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 199.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.60 199.77 Td (19.95) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 199.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.60 199.77 Td (18.07) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 199.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 199.82 Td (\(2.93) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 199.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 199.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 199.77 Td (1.88) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.45 199.77 Td (\(15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 199.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.75 199.77 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 199.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 184.77 Td (Derivative cash settlement ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 161.07 189.30 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 184.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.30 184.77 Td (\(0.42) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.15 184.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 184.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.30 184.77 Td (\(1.32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 184.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 184.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 184.77 Td (1.64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 184.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 184.77 Td (0.90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 184.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 184.82 Td (\(2.96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 184.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.45 184.77 Td (\(68) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 495.80 184.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.45 184.77 Td (\(180) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 184.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 155.33339843750002 m 176.6259765625 155.33339843750002 l s q 0 0 0 rg BT 52.50 156.67 Td (Earnings per share information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 141.77 Td (Basic net income \(loss\) per common) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 131.77 Td (share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 131.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 131.77 Td (2.57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 131.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.30 131.77 Td (\(0.83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 131.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 131.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 131.77 Td (3.38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 131.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 131.77 Td (3.40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 131.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 131.82 Td (\(4.21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 131.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.75 131.77 Td (410) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 131.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.45 131.77 Td (\(125) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 131.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 116.77 Td (Diluted net income \(loss\) per common) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 106.77 Td (share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.50 106.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.65 106.77 Td (2.51) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.50 106.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.30 106.77 Td (\(0.83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 106.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 106.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 106.77 Td (3.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.50 106.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.65 106.77 Td (3.34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 106.77 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 106.82 Td (\(4.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 106.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.75 106.77 Td (402) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 106.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 532.45 106.77 Td (\(126) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 106.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 91.77 Td (Basic weighted-average common) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 81.77 Td (shares outstanding \(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 225.60 81.77 Td (66,615) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.60 81.77 Td (65,138) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.60 81.77 Td (63,755) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 81.77 Td (1,477) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 81.77 Td (1,383) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.80 81.77 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 81.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 545.80 81.77 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.15 81.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 66.77 Td (Diluted weighted-average common) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 56.77 Td (shares outstanding \(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 225.60 56.77 Td (67,998) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.60 56.77 Td (65,138) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.60 56.77 Td (67,564) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 56.77 Td (2,860) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.30 56.82 Td (\(2,426) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 56.77 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 490.80 56.77 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.15 56.77 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.45 56.77 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 550.80 56.77 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (68) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 733.7669921875 m 222 733.7669921875 l s q 0 0 0 rg BT 49.50 735.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 723.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 63.11 723.10 Td (Amounts and percentage changes may not recalculate due to rounding. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 711.10 Td (\(2\) Derivative cash settlements are included within the realized hedge gain \(loss\) and derivative gain line items in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 699.10 Td (accompanying statements of operations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 673.90 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 673.90 Td (W) Tj ET Q q 0 0 0 rg BT 95.00 673.90 Td (e present per BOE information because we use this information to evaluate our performance relative to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 660.70 Td (our peers and to identify and measure trends we believe may require additional analysis. ) Tj ET Q q 0 0 0 rg BT 442.93 660.70 Td (A) Tj ET Q q 0 0 0 rg BT 450.05 660.70 Td (verage daily production ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 647.50 Td (for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 131.96 647.50 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.40 647.50 Td (, increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.18 647.50 Td (33 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.29 647.50 Td ( compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.17 647.50 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.17 647.50 Td (, driven by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 634.30 Td (continued development of our Eagle Ford shale assets. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 609.10 Td (Changes in production volumes, revenues, and costs reflect the highly volatile nature of our industry) Tj ET Q q 0 0 0 rg BT 527.12 609.10 Td (. Our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 595.90 Td (realized price on a per BOE basis for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.92 595.90 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.37 595.90 Td (, increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.15 595.90 Td (13 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.26 595.90 Td ( compared to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 582.70 Td (same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.01 582.70 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 139.01 582.70 Td ( due to improved oil and gas prices.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 557.50 Td (Lease operating expenses \(LOE\) on a per BOE basis for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.00 557.50 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.45 557.50 Td (, decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 544.30 Td (two percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 101.12 544.30 Td ( compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.99 544.30 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.99 544.30 Td (. Overall, LOE costs increased; however) Tj ET Q q 0 0 0 rg BT 447.37 544.30 Td (, production increased at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (a faster rate, thereby reducing LOE on a per BOE basis. ) Tj ET Q q 0 0 0 rg BT 300.37 531.10 Td (W) Tj ET Q q 0 0 0 rg BT 309.87 531.10 Td (e expect LOE on a per BOE basis to increase in 2014 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 517.90 Td (due to an increase in ad valorem taxes primarily in our Eagle Ford shale program.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 491.50 Td (T) Tj ET Q q 0 0 0 rg BT 91.83 491.50 Td (ransportation costs on a per BOE basis for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.51 491.50 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.95 491.50 Td (, increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.73 491.50 Td (40 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.85 491.50 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 478.30 Td (compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.62 478.30 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.62 478.30 Td (. Our Eagle Ford shale program has meaningfully higher transportation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 465.10 Td (expense per unit of production compared to our other regions. Ongoing development of the Eagle Ford shale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 451.90 Td (program has resulted in these assets becoming a lar) Tj ET Q q 0 0 0 rg BT 274.73 451.90 Td (ger portion of our total production, thereby increasing company-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 438.70 Td (wide transportation expense per BOE over time. ) Tj ET Q q 0 0 0 rg BT 267.10 438.70 Td (The run-rate of our per unit transportation cost in the Eagle Ford ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 425.50 Td (shale program increased throughout ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.17 425.50 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.17 425.50 Td ( due to incremental compression char) Tj ET Q q 0 0 0 rg BT 396.61 425.50 Td (ges and increased variable fuel costs ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 412.30 Td (associated with higher natural gas prices. ) Tj ET Q q 0 0 0 rg BT 235.22 412.30 Td (Additionally) Tj ET Q q 0 0 0 rg BT 290.11 412.30 Td (, our transportation arrangements have changed over the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (years presented to contracts that have more favorable terms for product prices but also include higher transportation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 385.90 Td (fees. ) Tj ET Q q 0 0 0 rg BT 75.26 385.90 Td (W) Tj ET Q q 0 0 0 rg BT 84.76 385.90 Td (e anticipate we will recognize fluctuations in our per unit Eagle Ford shale transportation run-rate over time. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 372.70 Td (In 2014, we expect transportation costs per BOE to increase as Eagle Ford shale production continues to grow and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 359.50 Td (constitutes a lar) Tj ET Q q 0 0 0 rg BT 118.34 359.50 Td (ger portion of our production mix. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 333.10 Td (Production taxes on a per BOE basis for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.01 333.10 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.45 333.10 Td (, increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.23 333.10 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.35 333.10 Td ( compared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 319.90 Td (to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.50 319.90 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.50 319.90 Td (. ) Tj ET Q q 0 0 0 rg BT 174.56 319.90 Td (This increase is a result of State of Oklahoma incentive tax rebates recorded in 2012, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 306.70 Td (which decreased the 2012 BOE rate. ) Tj ET Q q 0 0 0 rg BT 215.05 306.70 Td (Additionally) Tj ET Q q 0 0 0 rg BT 269.95 306.70 Td (, we received smaller incentive tax rebates on newer wells drilled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 293.50 Td (in our South ) Tj ET Q q 0 0 0 rg BT 106.44 293.50 Td (T) Tj ET Q q 0 0 0 rg BT 112.40 293.50 Td (exas & Gulf Coast region in 2013. ) Tj ET Q q 0 0 0 rg BT 268.93 293.50 Td (W) Tj ET Q q 0 0 0 rg BT 278.43 293.50 Td (e generally expect production tax expense to trend with oil, gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 280.30 Td (and NGL) Tj ET Q q 0 0 0 rg BT 90.33 280.30 Td ( revenues, however) Tj ET Q q 0 0 0 rg BT 175.10 280.30 Td (, we expect production tax expense as a percentage of revenues to slightly increase as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (result of lower production tax incentives. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 253.90 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 240.70 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 240.70 Td (General and administrative expense on a per BOE basis for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.68 240.70 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.13 240.70 Td (, decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 227.50 Td (six percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.45 227.50 Td ( compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.32 227.50 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.32 227.50 Td (, as production increased at a faster rate than our general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 214.30 Td (administrative expense. ) Tj ET Q q 0 0 0 rg BT 158.25 214.30 Td (A) Tj ET Q q 0 0 0 rg BT 165.59 214.30 Td ( portion of our general and administrative expense is linked to our profitability and cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (flow) Tj ET Q q 0 0 0 rg BT 68.95 201.10 Td (, which are driven in lar) Tj ET Q q 0 0 0 rg BT 173.82 201.10 Td (ge part by the realized commodity prices we receive for our production. ) Tj ET Q q 0 0 0 rg BT 494.94 201.10 Td (The Net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 187.90 Td (Profits Plan and a portion of our short-term incentive compensation correlate with net cash flows and therefore are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 174.70 Td (subject to variability) Tj ET Q q 0 0 0 rg BT 139.21 174.70 Td (. In 2014, we expect general and administrative expense on a per BOE basis will decrease, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 161.50 Td (we anticipate production will continue to increase at a faster rate than our increase in absolute general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 148.30 Td (administrative expense.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 123.10 Td (Depletion, depreciation, amortization, and asset retirement obligation liability accretion ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.42 123.10 Td (\() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.75 123.10 Td (DD&A\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 109.90 Td (expense, for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.88 109.90 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 259.33 109.90 Td (, decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.93 109.90 Td (15 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.05 109.90 Td (, on a per BOE basis, compared to the same ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 96.70 Td (period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.66 96.70 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.66 96.70 Td (. Our DD&A) Tj ET Q q 0 0 0 rg BT 173.55 96.70 Td ( rate can fluctuate as a result of impairments, divestitures, and changes in the mix of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 83.50 Td (production and the underlying proved reserve volumes. Our DD&A) Tj ET Q q 0 0 0 rg BT 350.10 83.50 Td ( rate has fallen lar) Tj ET Q q 0 0 0 rg BT 428.69 83.50 Td (gely as a result of lower ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 70.30 Td (finding and development costs, as well as through the utilization of our carry arrangement with Mitsui, which has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (allowed us to add reserves without incurring capital costs. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 375.73 57.10 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 419.22 57.10 Td (Acquisition and Development ) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (69) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 734.40 Td (Agr) Tj ET Q q 0 0 0 rg BT 65.59 734.40 Td (eement) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.74 734.40 Td ( in Part II, Item 8 of this report for additional discussion on the Mitsui transaction. ) Tj ET Q q 0 0 0 rg BT 463.04 734.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 517.93 734.40 Td (, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.20 Td (closed our ) Tj ET Q q 0 0 0 rg BT 97.16 721.20 Td (Anadarko Basin divestiture at the end of 2013. ) Tj ET Q q 0 0 0 rg BT 307.74 721.20 Td (These assets were classified as held for sale at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 708.00 Td (beginning of the third quarter) Tj ET Q q 0 0 0 rg BT 178.58 708.00 Td (, and therefore, not depleted for substantially all of the last half of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.29 708.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.29 708.00 Td (. ) Tj ET Q q 0 0 0 rg BT 500.34 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 509.84 708.00 Td (e expect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 694.80 Td (DD&A) Tj ET Q q 0 0 0 rg BT 81.28 694.80 Td ( on a per BOE basis to be lower in 2014 due to lower anticipated finding and development costs and the sale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 681.60 Td (of our ) Tj ET Q q 0 0 0 rg BT 78.22 681.60 Td (Anadarko Basin assets at the end of 2013. ) Tj ET Q q 0 0 0 rg BT 268.03 681.60 Td (These impacts will be slightly of) Tj ET Q q 0 0 0 rg BT 411.73 681.60 Td (fset as we begin paying our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 668.40 Td (portion of capital on our outside operated Eagle Ford assets as a result of our remaining carry amount with Mitsui ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 655.20 Td (being exhausted in early 2014. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 628.80 Td (Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 151.16 628.80 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 324.42 628.80 Td (r) Tj ET Q q 0 0 0 rg BT 328.29 628.80 Td (ends between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 390.00 628.80 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 412.00 628.80 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 434.00 628.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.00 628.80 Td ( for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (discussion on oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 189.94 615.60 Td ( production expense, DD&A, and general and administrative expense.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 602.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 589.20 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 589.20 Td (Please refer to the section ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 201.26 589.20 Td (Earnings per Shar) Tj ET Q q 0 0 0 rg BT 282.13 589.20 Td (e) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 287.01 589.20 Td ( in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 301.07 589.20 Td (Note 1 - Summary of Significant ) Tj ET Q q 0 0 0 rg BT 445.08 589.20 Td (Accounting Policies) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.36 589.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 576.00 Td (Part II, Item 8 of this report for additional discussion on the types of shares included in our basic and diluted net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 562.80 Td (income \(loss\) per common share calculations. ) Tj ET Q BT /F2 11.00 Tf ET 1 1 1 rg /GS0 gs 256.50 570.43 133.71 -10.00 re f /GS0 gs q 0 0 0 rg BT 256.41 562.80 Td (W) Tj ET Q q 0 0 0 rg BT 265.91 562.80 Td (e recorded a net loss for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.22 562.80 Td (year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.91 562.80 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET 1 1 1 rg /GS0 gs 527.35 570.43 8.25 -10.00 re f /GS0 gs q 0 0 0 rg BT 527.35 562.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 549.60 Td (Consequently) Tj ET Q q 0 0 0 rg BT 109.28 549.60 Td (, our in-the-money stock options, unvested RSUs, and contingent PSUs were anti-dilutive for the year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 536.40 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.51 536.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.96 536.40 Td (, resulting in an increase in the diluted weighted-average common shares outstanding ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 524.40 Td (between the two periods.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (Comparison of Financial Results and ) Tj ET Q q 0 0 0 rg BT 226.74 499.20 Td (T) Tj ET Q q 0 0 0 rg BT 233.26 499.20 Td (r) Tj ET Q q 0 0 0 rg BT 237.95 499.20 Td (ends between ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.33 499.20 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 325.33 499.20 Td ( and ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 348.57 499.20 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 370.57 499.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 474.00 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 166.79 474.00 Td ( pr) Tj ET Q q 0 0 0 rg BT 178.91 474.00 Td (oduction. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.90 474.00 Td ( ) Tj ET Q q 0 0 0 rg BT 225.46 474.00 Td (The following table presents the regional changes in our production and oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 110.99 460.80 Td ( production revenues and production costs between the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.34 460.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.78 460.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.92 460.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 542.92 460.80 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 397.3 m 299.5 397.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 397.3 m 403.5 397.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 397.3 m 507.5 397.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 327.3 m 299.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 327.3 m 403.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 327.3 m 507.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 327.3 m 299.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 314.3 m 299.5 314.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 312.3 m 299.5 312.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 327.3 m 403.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 314.3 m 403.5 314.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 312.3 m 403.5 312.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 327.3 m 507.5 327.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 314.3 m 507.5 314.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 312.3 m 507.5 312.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 224.70 424.20 Td (Average Net) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 213.40 413.20 Td (Daily Production) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 222.45 402.20 Td (Added \(Lost\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 332.25 424.20 Td (Oil, Gas &) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 324.30 413.20 Td (NGL Revenue) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 341.90 402.20 Td (Added) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 422.10 424.20 Td (Production Costs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 441.70 413.20 Td (Increase) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 436.85 402.20 Td (\(Decrease\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 228.40 387.35 Td (\(MBOE/d\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 329.20 387.35 Td (\(in millions\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 433.20 387.35 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 373.17 Td (South Texas & Gulf Coast) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.05 373.17 Td (33.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.00 373.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 373.17 Td (515.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 373.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.55 373.17 Td (159.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 359.17 Td (Rocky Mountain) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.55 359.17 Td (3.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 359.17 Td (136.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.05 359.17 Td (28.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 345.17 Td (Permian) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.55 345.17 Td (1.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.05 345.17 Td (51.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.05 345.17 Td (19.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 331.17 Td (Mid-Continent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.85 331.17 Td (\(5.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.30 331.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.05 331.17 Td (22.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.85 331.17 Td (\(2.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.30 331.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 317.17 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.05 317.17 Td (32.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.00 317.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 317.17 Td (725.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 317.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.55 317.17 Td (205.1) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 288.60 Td (The lar) Tj ET Q q 0 0 0 rg BT 117.25 288.60 Td (gest regional production increase occurred in our South ) Tj ET Q q 0 0 0 rg BT 363.87 288.60 Td (T) Tj ET Q q 0 0 0 rg BT 369.82 288.60 Td (exas & Gulf Coast region as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 275.40 Td (drilling activity in our Eagle Ford shale program. Production in our Eagle Ford shale program continues to increase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.20 Td (and we expect it to continue to do so through 2014. ) Tj ET Q q 0 0 0 rg BT 281.06 262.20 Td (The increase in oil and gas prices caused an increase in oil, gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 249.00 Td (and NGL) Tj ET Q q 0 0 0 rg BT 90.83 249.00 Td ( production revenue in our Mid-Continent region between the years ended December 31, 2013, and 2012, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.80 Td (despite a decrease in production volumes attributable to base decline.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 210.60 Td (The following table summarizes the realized prices we received in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.43 210.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.43 210.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.81 210.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.81 210.60 Td (, before the ef) Tj ET Q q 0 0 0 rg BT 506.69 210.60 Td (fects of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 197.40 Td (derivative cash settlements:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 159.89999999999998 m 381.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 159.89999999999998 m 395.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 159.89999999999998 m 499.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 159.89999999999998 m 381.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 145.89999999999998 m 381.5 145.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 159.89999999999998 m 395.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 159.89999999999998 m 499.5 159.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 145.89999999999998 m 499.5 145.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 145.89999999999998 m 381.5 145.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 145.89999999999998 m 499.5 145.89999999999998 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 306.00 164.80 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 317.50 149.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 436.00 149.95 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 135.77 Td (Realized oil price \($/Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 135.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 135.77 Td (91.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.00 135.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 135.77 Td (85.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 121.77 Td (Realized gas price \($/Mcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 121.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.05 121.77 Td (3.93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.00 121.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.05 121.77 Td (2.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 107.77 Td (Realized NGL price \($/Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 107.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 107.77 Td (35.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.00 107.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 107.77 Td (37.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 93.77 Td (Realized equivalent price \($/BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 93.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 93.77 Td (45.50) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.00 93.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 93.77 Td (40.39) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.09 734.40 Td (32 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 142.20 734.40 Td ( increase in production on an equivalent basis combined with a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.71 734.40 Td (13 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.83 734.40 Td ( increase in realized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (price per BOE resulted in a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.79 721.20 Td (49 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.90 721.20 Td ( increase in revenue between the two periods. Based on current levels of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (drilling and completion activity) Tj ET Q q 0 0 0 rg BT 188.28 708.00 Td (, we expect production volumes to continue to increase through 2014 on a retained ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (properties basis. ) Tj ET Q q 0 0 0 rg BT 126.79 694.80 Td (W) Tj ET Q q 0 0 0 rg BT 136.29 694.80 Td (e also expect our realized prices to trend with commodity prices. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 669.60 Td (Realized hedge \(loss\) gain. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.64 669.60 Td (W) Tj ET Q q 0 0 0 rg BT 220.14 669.60 Td (e recorded a net realized hedge loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.17 669.60 Td ($1.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.95 669.60 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 656.40 Td (, compared with a net realized hedge gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.36 656.40 Td ($3.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.14 656.40 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.16 656.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.16 656.40 Td (. ) Tj ET Q q 0 0 0 rg BT 520.21 656.40 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (amounts are comprised of realized cash settlements on commodity derivative contracts that were designated as cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (flow hedges and were previously recorded in accumulated other comprehensive income \(loss\) \(AOCIL\). During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 616.80 Td (, all gains and losses associated with commodity derivative contracts that had previously been designated as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (cash flow hedges were reclassified into earnings from ) Tj ET Q q 0 0 0 rg BT 288.86 603.60 Td (AOCIL. Our realized oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 466.24 603.60 Td ( hedge gains and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (losses are a function of commodity prices at the time of settlement compared with the respective derivative contract ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (prices. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 552.00 Td (Gain \(loss\) on divestitur) Tj ET Q q 0 0 0 rg BT 192.84 552.00 Td (e activity) Tj ET Q q 0 0 0 rg BT 232.23 552.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.48 552.00 Td (W) Tj ET Q q 0 0 0 rg BT 249.98 552.00 Td (e recorded a net gain on divestiture activity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.94 552.00 Td ($28.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.22 552.00 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.69 538.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.13 538.80 Td (, compared with a net loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.66 538.80 Td ($27.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.94 538.80 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.27 538.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.27 538.80 Td (. ) Tj ET Q q 0 0 0 rg BT 537.32 538.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (net gain on divestiture activity for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.01 525.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.45 525.60 Td (, is lar) Tj ET Q q 0 0 0 rg BT 382.44 525.60 Td (gely due to gains recorded on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (divestiture of certain assets in our Mid-Continent and Rocky Mountain regions slightly of) Tj ET Q q 0 0 0 rg BT 444.52 512.40 Td (fset by a loss recorded on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (the divestiture of non-strategic assets in our Permian region. ) Tj ET Q q 0 0 0 rg BT 320.15 499.20 Td (The net loss for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.51 499.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.96 499.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (was due to an unsuccessful property sale ef) Tj ET Q q 0 0 0 rg BT 240.10 486.00 Td (fort and the corresponding write-down of those assets held for sale to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (their fair value. ) Tj ET Q q 0 0 0 rg BT 122.79 472.80 Td (This loss was partially of) Tj ET Q q 0 0 0 rg BT 233.19 472.80 Td (fset by a net gain on completed divestitures. ) Tj ET Q q 0 0 0 rg BT 432.16 472.80 Td (W) Tj ET Q q 0 0 0 rg BT 441.67 472.80 Td (e will continue to evaluate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (our portfolio to determine whether there are non-strategic properties we could divest. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 495.64 459.60 Td (Note 3 - ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (Divestitur) Tj ET Q q 0 0 0 rg BT 93.59 446.40 Td (es and ) Tj ET Q q 0 0 0 rg BT 124.55 446.40 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.46 446.40 Td ( in Part II, Item 8 of this report for additional discussion. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 421.20 Td (Marketed gas system r) Tj ET Q q 0 0 0 rg BT 184.88 421.20 Td (evenue and expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.47 421.20 Td (Marketed gas system revenue increased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.23 421.20 Td ($60.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.51 421.20 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.69 408.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.13 408.00 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.06 408.00 Td ($52.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.34 408.00 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.67 408.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.67 408.00 Td (, as a result of an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (increase in gas prices. Concurrent with the increase in marketed gas system revenue, marketed gas system expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (increased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.59 381.60 Td ($57.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.87 381.60 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.07 381.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.52 381.60 Td (, from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 366.15 381.60 Td ($47.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.43 381.60 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 368.40 Td (. ) Tj ET Q q 0 0 0 rg BT 80.05 368.40 Td (The decrease in our net mar) Tj ET Q q 0 0 0 rg BT 202.32 368.40 Td (gin is due to an increase in gathering fees paid to third parties, which went into ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 355.20 Td (fect in the second half of 2012. ) Tj ET Q q 0 0 0 rg BT 200.19 355.20 Td (W) Tj ET Q q 0 0 0 rg BT 209.69 355.20 Td (e expect that marketed gas system revenue and expense will decrease in 2014 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (as a result of our ) Tj ET Q q 0 0 0 rg BT 125.45 342.00 Td (Anadarko Basin divestiture, although we expect our mar) Tj ET Q q 0 0 0 rg BT 373.90 342.00 Td (gin to be consistent with the mar) Tj ET Q q 0 0 0 rg BT 517.29 342.00 Td (gin ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.80 Td (realized in 2013. Further) Tj ET Q q 0 0 0 rg BT 161.05 328.80 Td (, we expect marketed gas revenue and expense to continue to correlate with changes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (production on retained properties and our realized gas price.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 290.40 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 166.79 290.40 Td ( pr) Tj ET Q q 0 0 0 rg BT 178.91 290.40 Td (oduction expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.21 290.40 Td (T) Tj ET Q q 0 0 0 rg BT 269.17 290.40 Td (otal production costs increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.85 290.40 Td ($205.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.63 290.40 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.04 290.40 Td (52 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.16 290.40 Td (, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td ($597.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.78 277.20 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.99 277.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.43 277.20 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.35 277.20 Td ($391.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.13 277.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.19 277.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.19 277.20 Td (, primarily due to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.94 277.20 Td (32 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.37 264.00 Td ( increase in production volumes on a per BOE basis, as well as an overall increase in transportation costs in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (our South ) Tj ET Q q 0 0 0 rg BT 95.64 250.80 Td (T) Tj ET Q q 0 0 0 rg BT 101.59 250.80 Td (exas & Gulf Coast region. Please refer to our caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 340.46 250.80 Td (A) Tj ET Q q 0 0 0 rg BT 346.98 250.80 Td ( year) Tj ET Q q 0 0 0 rg BT 369.06 250.80 Td (-to-year overview of selected pr) Tj ET Q q 0 0 0 rg BT 508.54 250.80 Td (oduction ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (and financial information, including tr) Tj ET Q q 0 0 0 rg BT 219.79 237.60 Td (ends) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 239.95 237.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 242.70 237.60 Td (above for discussion of production costs on a per BOE basis. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 212.40 Td (Depletion, depr) Tj ET Q q 0 0 0 rg BT 154.63 212.40 Td (eciation, amortization, and asset r) Tj ET Q q 0 0 0 rg BT 305.17 212.40 Td (etir) Tj ET Q q 0 0 0 rg BT 320.03 212.40 Td (ement obligation liability accr) Tj ET Q q 0 0 0 rg BT 453.13 212.40 Td (etion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.38 212.40 Td (DD&A) Tj ET Q q 0 0 0 rg BT 515.16 212.40 Td ( expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 199.20 Td (increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.28 199.20 Td (13 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 140.40 199.20 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.45 199.20 Td ($822.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.23 199.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.29 199.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.29 199.20 Td ( compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.46 199.20 Td ($727.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.24 199.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.30 199.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.30 199.20 Td (, as a result of the continued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 186.00 Td (development of our Eagle Ford and Bakken/Three Forks assets and the associated growth in our production, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (partially of) Tj ET Q q 0 0 0 rg BT 98.37 172.80 Td (fset by the sale of our ) Tj ET Q q 0 0 0 rg BT 195.51 172.80 Td (Anadarko Basin properties that were classified as held for sale at the beginning of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (the third quarter of 2013. Please refer to our caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 283.98 159.60 Td (A) Tj ET Q q 0 0 0 rg BT 290.50 159.60 Td ( year) Tj ET Q q 0 0 0 rg BT 312.57 159.60 Td (-to-year overview of selected pr) Tj ET Q q 0 0 0 rg BT 452.05 159.60 Td (oduction and financial ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (information, including tr) Tj ET Q q 0 0 0 rg BT 158.68 146.40 Td (ends) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 178.84 146.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.59 146.40 Td (above for discussion of DD&A) Tj ET Q q 0 0 0 rg BT 318.46 146.40 Td ( expense on a per BOE basis. ) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (71) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Exploration. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.80 734.40 Td (The components of exploration expense are summarized as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 697.9 m 362.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 697.9 m 381.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 697.9 m 458.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 683.9 m 362.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 683.9 m 458.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 627.9 m 362.5 627.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 627.9 m 458.5 627.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 627.9 m 362.5 627.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 614.9 m 362.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 612.9 m 362.5 612.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 627.9 m 458.5 627.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 614.9 m 458.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 612.9 m 458.5 612.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 290.00 701.95 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.50 687.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 408.50 687.95 Td (2012) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 672.30673828125 m 202.38623046875 672.30673828125 l s q 0 0 0 rg BT 53.00 673.77 Td (Summary of Exploration Expense) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 343.20 673.95 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 659.77 Td (Geological and geophysical expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 659.77 Td (4.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.05 659.77 Td (13.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 645.77 Td (Exploratory dry hole) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 645.77 Td (5.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.75 645.77 Td (20.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 631.77 Td (Overhead and other expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.05 631.77 Td (64.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.75 631.77 Td (55.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 617.77 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.00 617.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.05 617.77 Td (74.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.00 617.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.05 617.77 Td (90.2) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 589.20 Td (Exploration expense for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.44 589.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.44 589.20 Td ( decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.29 589.20 Td (18 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.41 589.20 Td ( compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.28 589.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.28 589.20 Td ( as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (decreased geological and geophysical expenses \(G&G\) due to a lar) Tj ET Q q 0 0 0 rg BT 354.31 576.00 Td (ge seismic study conducted in the first quarter ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.80 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.91 562.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.91 562.80 Td ( and fewer exploratory dry holes expensed in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.90 562.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 306.90 562.80 Td (, partially of) Tj ET Q q 0 0 0 rg BT 360.77 562.80 Td (fset by an increase in exploration overhead in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 549.60 Td ( mainly due to an increase in performance-based compensation. ) Tj ET Q q 0 0 0 rg BT 356.98 549.60 Td (An exploratory project resulting in non-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (commercial quantities of oil, gas, or NGLs is deemed an exploratory dry hole and impacts the amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (exploration expense we record. ) Tj ET Q q 0 0 0 rg BT 192.74 523.20 Td (W) Tj ET Q q 0 0 0 rg BT 202.24 523.20 Td (e currently expect to expand our exploration program in 2014, which will create ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (increased potential for exploratory dry holes. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 484.80 Td (Impairment of pr) Tj ET Q q 0 0 0 rg BT 160.75 484.80 Td (oved pr) Tj ET Q q 0 0 0 rg BT 193.64 484.80 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.33 484.80 Td (W) Tj ET Q q 0 0 0 rg BT 246.83 484.80 Td (e recorded impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.18 484.80 Td ($172.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 555.96 484.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.46 471.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.90 471.60 Td (. ) Tj ET Q q 0 0 0 rg BT 226.95 471.60 Td (The impairments in 2013 were a result of negative engineering revisions on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (our Mississippian limestone assets in our Permian region at the end of the year) Tj ET Q q 0 0 0 rg BT 395.68 458.40 Td (, the commencement of a plugging ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (and abandonment program of dry gas assets in the Olmos interval in our South ) Tj ET Q q 0 0 0 rg BT 398.68 445.20 Td (T) Tj ET Q q 0 0 0 rg BT 404.63 445.20 Td (exas & Gulf Coast region, and our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (decision to no longer pursue the development of certain under) Tj ET Q q 0 0 0 rg BT 322.56 432.00 Td (-performing assets during the year) Tj ET Q q 0 0 0 rg BT 472.84 432.00 Td (. ) Tj ET Q q 0 0 0 rg BT 480.90 432.00 Td (W) Tj ET Q q 0 0 0 rg BT 490.40 432.00 Td (e recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.49 418.80 Td ($208.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.27 418.80 Td ( for the comparable period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.00 418.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 418.80 Td ( related to write-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (downs of our ) Tj ET Q q 0 0 0 rg BT 110.60 405.60 Td (W) Tj ET Q q 0 0 0 rg BT 120.10 405.60 Td (olfberry assets in our Permian region due to downward engineering revisions, as well as write-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (downs of our Haynesville shale assets due to low natural gas prices. Future crude oil, natural gas, and NGL) Tj ET Q q 0 0 0 rg BT 524.31 392.40 Td ( price ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (declines, downward engineering revisions, or unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 372.68 379.20 Td (forts may result in proved property ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (impairments.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 342.80 Td (Abandonment and impairment of unpr) Tj ET Q q 0 0 0 rg BT 254.25 342.80 Td (oved pr) Tj ET Q q 0 0 0 rg BT 287.14 342.80 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.83 342.80 Td (W) Tj ET Q q 0 0 0 rg BT 340.33 342.80 Td (e recorded abandonment and impairment) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 520.53 342.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.28 342.80 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 329.60 Td (unproved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.12 329.60 Td ($46.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.40 329.60 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.61 329.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.05 329.60 Td (, the majority of which related ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.40 Td (to acreage we no longer intend to develop in our Permian region. ) Tj ET Q q 0 0 0 rg BT 341.21 316.40 Td (W) Tj ET Q q 0 0 0 rg BT 350.71 316.40 Td (e recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.57 316.40 Td ($16.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.85 316.40 Td ( of abandonment and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.20 Td (impairment) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 100.71 303.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.46 303.20 Td (of unproved properties expense for the comparable period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.56 303.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.56 303.20 Td (, the majority of which related to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.00 Td (acreage we no longer intended to develop in our Rocky Mountain and Mid-Continent regions. ) Tj ET Q q 0 0 0 rg BT 468.52 290.00 Td (Abandonment and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.80 Td (impairment of unproved properties is more likely occur in periods of low commodity prices, which negatively ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.60 Td (impact operating cash flows available for exploration and development, as well as anticipated economic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.40 Td (performance. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 225.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 225.20 Td (General and administrative. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.85 225.20 Td (General and administrative expense increased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.48 225.20 Td ($149.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.26 225.20 Td ( for the year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.00 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 212.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 212.00 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.38 212.00 Td ($1) Tj ET Q q 0 0 0 rg BT 249.97 212.00 Td (19.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.75 212.00 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.78 212.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.78 212.00 Td (. ) Tj ET Q q 0 0 0 rg BT 435.83 212.00 Td (The increase is due to an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.80 Td (increase in performance-based compensation that reflects we exceeded our performance metrics when compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 185.60 Td (the prior year) Tj ET Q q 0 0 0 rg BT 108.81 185.60 Td (, as well as an increase in employee headcount during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.97 185.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.97 185.60 Td (, which resulted in increased base ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.40 Td (compensation, benefits, and general corporate of) Tj ET Q q 0 0 0 rg BT 263.91 172.40 Td (fice expenses. ) Tj ET Q q 0 0 0 rg BT 330.90 172.40 Td (These were slightly of) Tj ET Q q 0 0 0 rg BT 428.76 172.40 Td (fset by an increase in COP) Tj ET Q q 0 0 0 rg BT 544.75 172.40 Td (AS ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.20 Td (overhead reimbursement as a result of an increase in operated well count. Please refer to our caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 496.85 159.20 Td (A) Tj ET Q q 0 0 0 rg BT 503.37 159.20 Td ( year) Tj ET Q q 0 0 0 rg BT 525.44 159.20 Td (-to-year ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 146.00 Td (overview of selected pr) Tj ET Q q 0 0 0 rg BT 151.30 146.00 Td (oduction and financial information, including tr) Tj ET Q q 0 0 0 rg BT 362.33 146.00 Td (ends) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 382.50 146.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.25 146.00 Td (above for discussion of general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.80 Td (administrative costs on a per BOE basis. ) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (72) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Change in Net Pr) Tj ET Q q 0 0 0 rg BT 162.89 734.40 Td (ofits Plan liability) Tj ET Q q 0 0 0 rg BT 241.73 734.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.98 734.40 Td (This non-cash expense generally relates to the change in the estimated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (value of the associated liability between the reporting periods. For ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.91 721.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.91 721.20 Td (, we recorded a non-cash benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.51 721.20 Td ($21.8 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 708.00 Td ( compared to a non-cash benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.25 708.00 Td ($28.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.53 708.00 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.58 708.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.58 708.00 Td (. ) Tj ET Q q 0 0 0 rg BT 340.64 708.00 Td (The change in our liability is subject to estimation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (and may change dramatically from period to period based on assumptions used for production rates, reserve ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (quantities, commodity pricing, discount rates, and production costs. ) Tj ET Q q 0 0 0 rg BT 353.17 681.60 Td (W) Tj ET Q q 0 0 0 rg BT 362.67 681.60 Td (e expect the change in our Net Profits Plan ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (liability to correlate with fluctuations in commodity prices.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 643.20 Td (Derivative gain. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 162.98 643.20 Td (W) Tj ET Q q 0 0 0 rg BT 172.48 643.20 Td (e recognized a derivative gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.07 643.20 Td ($3.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.85 643.20 Td ( for the year ended December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 643.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.50 643.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (and a gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.87 630.00 Td ($55.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 169.15 630.00 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.17 630.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.17 630.00 Td (. ) Tj ET Q q 0 0 0 rg BT 301.22 630.00 Td (These amounts include the change in fair value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (commodity derivative contracts and cash settlement gains or losses. For the year ended December 31, 2013, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (recognized a net gain on cash settlements, which was of) Tj ET Q q 0 0 0 rg BT 296.00 603.60 Td (fset lar) Tj ET Q q 0 0 0 rg BT 326.03 603.60 Td (gely by a decrease in the fair value of our gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (commodity derivative contracts as strip prices increased. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 370.71 590.40 Td (Note 10 - Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 561.04 590.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (in PartII,Item 8 of this report for additional discussion.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 552.00 Td (Other operating expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.00 552.00 Td (Other operating expense was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.12 552.00 Td ($30.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.40 552.00 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.46 552.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.46 552.00 Td ( compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.63 552.00 Td ($7.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 553.41 552.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.31 538.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.31 538.80 Td (. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.47 538.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.47 538.80 Td (, other operating expense included ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.42 538.80 Td ($23.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.70 538.80 Td ( of expense related to an agreed clarification ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (concerning royalty payment provisions of various leases on certain South ) Tj ET Q q 0 0 0 rg BT 375.45 525.60 Td (T) Tj ET Q q 0 0 0 rg BT 381.40 525.60 Td (exas & Gulf Coast acreage.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 500.40 Td (Income tax benefit \(expense\). ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.38 500.40 Td (W) Tj ET Q q 0 0 0 rg BT 229.88 500.40 Td (e recorded income tax expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.14 500.40 Td ($107.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.92 500.40 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.25 500.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.25 500.40 Td ( compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (income tax benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.52 487.20 Td ($29.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.80 487.20 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.13 487.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.13 487.20 Td (, resulting in ef) Tj ET Q q 0 0 0 rg BT 312.52 487.20 Td (fective tax rates of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.81 487.20 Td (38.6 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.18 487.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.56 487.20 Td (35.0 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.93 487.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 474.00 Td (. ) Tj ET Q q 0 0 0 rg BT 110.48 474.00 Td (The 2013 rate increase resulted primarily from the ) Tj ET Q q 0 0 0 rg BT 334.06 474.00 Td (Anadarko Basin divestiture that closed at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (the year) Tj ET Q q 0 0 0 rg BT 84.68 460.80 Td (, which caused a shift in anticipated recognition of future state tax benefits from a state with a higher ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (applicable state rate to states with lower applicable rates. ) Tj ET Q q 0 0 0 rg BT 305.04 447.60 Td (A) Tj ET Q q 0 0 0 rg BT 312.38 447.60 Td ( combination of lower enacted state income tax rates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (during the year and a shift between states of our anticipated future apportioned income caused a decrease in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (overall state rate which partially of) Tj ET Q q 0 0 0 rg BT 203.43 421.20 Td (fset the increase. Other factors impacting our ef) Tj ET Q q 0 0 0 rg BT 415.50 421.20 Td (fective tax rate between tax ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (years include decreased impact for valuation allowances, a decreased impact in benefit from the research and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (development \(R&D\) credit, and to a much lesser extent, net decreases resulting from the dif) Tj ET Q q 0 0 0 rg BT 463.38 394.80 Td (fering ef) Tj ET Q q 0 0 0 rg BT 500.74 394.80 Td (fects of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (percentage depletion and other permanent dif) Tj ET Q q 0 0 0 rg BT 249.24 381.60 Td (ferences. Our current income tax expense in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.68 381.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.68 381.60 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.29 381.60 Td ($2.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.07 381.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.42 368.40 Td ($370,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.67 368.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.73 368.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.73 368.40 Td (, which is attributable to increasing activity in the state of ) Tj ET Q q 0 0 0 rg BT 450.90 368.40 Td (T) Tj ET Q q 0 0 0 rg BT 456.85 368.40 Td (exas and ef) Tj ET Q q 0 0 0 rg BT 506.13 368.40 Td (fects of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (permanent dif) Tj ET Q q 0 0 0 rg BT 111.19 355.20 Td (ferences associated with the ) Tj ET Q q 0 0 0 rg BT 236.83 355.20 Td (T) Tj ET Q q 0 0 0 rg BT 242.78 355.20 Td (exas Mar) Tj ET Q q 0 0 0 rg BT 283.20 355.20 Td (gin ) Tj ET Q q 0 0 0 rg BT 299.81 355.20 Td (T) Tj ET Q q 0 0 0 rg BT 305.76 355.20 Td (ax. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 328.80 Td (Although federal legislation was passed extending the R&D credit for the tax years 2012 and 2013, we are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (awaiting the outcome of our IRS appeal for R&D credits claimed during the 2007 through 2010 tax years to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (determine whether we can ef) Tj ET Q q 0 0 0 rg BT 176.84 302.40 Td (ficiently commit the additional resources necessary for engaging a study to calculate a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.20 Td (credit for those and future years. ) Tj ET Q q 0 0 0 rg BT 195.08 289.20 Td (As of the filing date of this report, the R&D credit has not been extended for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (2014 tax year) Tj ET Q q 0 0 0 rg BT 109.26 276.00 Td (. Even without recording the cumulative ef) Tj ET Q q 0 0 0 rg BT 300.28 276.00 Td (fect of a R&D credit in 2014, we anticipate our normalized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.80 Td (tax rate will be lower in 2014.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 236.40 Td (Comparison of Financial Results between ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 247.69 236.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.69 236.40 Td ( and ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.93 236.40 Td (201) Tj ET Q q 0 0 0 rg BT 308.82 236.40 Td (1) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 314.32 236.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.00 211.20 Td (Ef) Tj ET Q q 0 0 0 rg BT 91.18 211.20 Td (fective January 1, 2012, we combined our former ) Tj ET Q q 0 0 0 rg BT 310.50 211.20 Td (ArkLaT) Tj ET Q q 0 0 0 rg BT 345.16 211.20 Td (ex region with our Mid-Continent region, based ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (in ) Tj ET Q q 0 0 0 rg BT 61.11 198.00 Td (T) Tj ET Q q 0 0 0 rg BT 67.44 198.00 Td (ulsa, Oklahoma, for operational and reporting purposes. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 81.00 172.80 Td (Oil, gas and NGL) Tj ET Q q 0 0 0 rg BT 159.04 172.80 Td ( pr) Tj ET Q q 0 0 0 rg BT 171.16 172.80 Td (oduction. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.90 172.80 Td (The following table presents the regional changes in our production and oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 110.99 159.60 Td ( production revenues and production costs between the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.34 159.60 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.78 159.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.17 159.60 Td (201) Tj ET Q q 0 0 0 rg BT 534.26 159.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.76 159.60 Td (:) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (73) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 702.5 m 306.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 702.5 m 434.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 702.5 m 562.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 632.5 m 306.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 632.5 m 434.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 632.5 m 562.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 632.5 m 306.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 619.5 m 306.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 617.5 m 306.5 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 632.5 m 434.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 619.5 m 434.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 617.5 m 434.5 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 632.5 m 562.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 619.5 m 562.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 617.5 m 562.5 617.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 205.80 729.40 Td (Average Net Daily) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 205.65 718.40 Td (Production Added) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 234.40 707.40 Td (\(Lost\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.30 718.40 Td (Oil, Gas & NGL) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 324.20 707.40 Td (Revenue Added \(Lost\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 464.10 718.40 Td (Production Costs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 484.70 707.40 Td (Increase) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 223.40 692.55 Td (\(MBOE/d\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 348.20 692.55 Td (\(in millions\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 476.20 692.55 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 678.37 Td (South Texas & Gulf Coast) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.05 678.37 Td (19.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.00 678.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.55 678.37 Td (137.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.00 678.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 678.37 Td (68.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 664.37 Td (Rocky Mountain) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.55 664.37 Td (4.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.55 664.37 Td (113.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 664.37 Td (26.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 650.37 Td (Permian) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.85 650.37 Td (\(0.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.30 650.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.35 650.37 Td (\(16.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.30 650.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.55 650.37 Td (4.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 636.37 Td (Mid-Continent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.85 636.37 Td (\(1.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.30 636.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.35 636.37 Td (\(92.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.30 636.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.55 636.37 Td (2.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 622.37 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.05 622.37 Td (22.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.00 622.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.55 622.37 Td (141.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.00 622.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 622.37 Td (101.8) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 593.80 Td (The lar) Tj ET Q q 0 0 0 rg BT 117.25 593.80 Td (gest regional production increase occurred in our South ) Tj ET Q q 0 0 0 rg BT 363.87 593.80 Td (T) Tj ET Q q 0 0 0 rg BT 369.82 593.80 Td (exas & Gulf Coast region as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 580.60 Td (drilling activity in our Eagle Ford shale program. ) Tj ET Q q 0 0 0 rg BT 271.58 580.60 Td (W) Tj ET Q q 0 0 0 rg BT 281.09 580.60 Td (e also saw an increase in production in our Rocky Mountain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 567.45 Td (region as a result of strong production performance from wells drilled in our Bakken/Three Forks program in late ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 554.25 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 554.25 Td ( and throughout ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.00 554.25 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.00 554.25 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 529.05 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 529.05 Td (The following table summarizes the average realized prices we received in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.38 529.05 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.38 529.05 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.76 529.05 Td (201) Tj ET Q q 0 0 0 rg BT 476.85 529.05 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.35 529.05 Td (, before the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 515.85 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 515.85 Td (fects of derivative cash settlements:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 478.35 m 381.5 478.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 478.35 m 395.5 478.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 478.35 m 499.5 478.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 464.35 m 381.5 464.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 464.35 m 499.5 464.35 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 306.00 483.25 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 317.50 468.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 436.30 468.40 Td (2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 454.22 Td (Realized oil price \($/Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 454.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 454.22 Td (85.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.00 454.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 454.22 Td (88.23) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 440.22 Td (Realized gas price \($/Mcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 440.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.05 440.22 Td (2.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.00 440.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.05 440.22 Td (4.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 426.22 Td (Realized NGL price \($/Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 426.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 426.22 Td (37.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.00 426.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 426.22 Td (53.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 412.22 Td (Realized equivalent price \($/BOE\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 412.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 412.22 Td (40.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.00 412.22 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.55 412.22 Td (47.10) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 383.65 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 383.65 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.09 383.65 Td (29 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 142.20 383.65 Td ( increase in production on an equivalent basis combined with a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.71 383.65 Td (14 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.83 383.65 Td ( decrease in realized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 370.45 Td (price per BOE resulted in an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 178.29 370.45 Td (1) Tj ET Q q 0 0 0 rg BT 183.38 370.45 Td (1 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 370.45 Td ( increase in revenue between the two periods. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 345.25 Td (Realized hedge \(loss\) gain. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.64 345.25 Td (W) Tj ET Q q 0 0 0 rg BT 220.14 345.25 Td (e recorded a net realized hedge gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.99 345.25 Td ($3.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.77 345.25 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.05 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 332.05 Td (, compared with a net realized hedge loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.54 332.05 Td ($20.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.82 332.05 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.84 332.05 Td (201) Tj ET Q q 0 0 0 rg BT 509.93 332.05 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.43 332.05 Td (. Please ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.85 Td (refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 84.81 318.85 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 258.07 318.85 Td (r) Tj ET Q q 0 0 0 rg BT 261.94 318.85 Td (ends between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 323.65 318.85 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 345.65 318.85 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 367.65 318.85 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.65 318.85 Td ( above for additional discussion on this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 305.65 Td (financial statement line item.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 280.45 Td (Gain \(loss\) on divestitur) Tj ET Q q 0 0 0 rg BT 192.84 280.45 Td (e activity) Tj ET Q q 0 0 0 rg BT 232.23 280.45 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.48 280.45 Td (W) Tj ET Q q 0 0 0 rg BT 249.98 280.45 Td (e recorded a net loss on divestiture activity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.11 280.45 Td ($27.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.40 280.45 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 267.25 Td (year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.69 267.25 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.13 267.25 Td (, due lar) Tj ET Q q 0 0 0 rg BT 222.67 267.25 Td (gely to a loss on unsuccessful property sale ef) Tj ET Q q 0 0 0 rg BT 424.09 267.25 Td (forts and the write-down of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 254.05 Td (certain assets held for sale to their fair value. ) Tj ET Q q 0 0 0 rg BT 252.30 254.05 Td (W) Tj ET Q q 0 0 0 rg BT 261.80 254.05 Td (e recorded a net gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.08 254.05 Td ($220.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.86 254.05 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.85 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 240.85 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 240.85 Td (, related to the divestitures of oil and gas properties located in our South ) Tj ET Q q 0 0 0 rg BT 391.23 240.85 Td (T) Tj ET Q q 0 0 0 rg BT 397.18 240.85 Td (exas & Gulf Coast, Rocky Mountain, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 227.65 Td (and Mid-Continent regions. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 202.45 Td (Marketed gas system r) Tj ET Q q 0 0 0 rg BT 184.88 202.45 Td (evenue and expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.47 202.45 Td (Marketed gas system revenue decreased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.05 202.45 Td ($52.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.33 202.45 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 189.20 Td (the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.88 189.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.32 189.20 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.25 189.20 Td ($69.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.53 189.20 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.86 189.20 Td (201) Tj ET Q q 0 0 0 rg BT 483.95 189.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 489.45 189.20 Td (, as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 176.00 Td (lower production in the Mid-Continent region and declining gas prices. Concurrent with the decrease in marketed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.80 Td (gas system revenue, marketed gas system expense decreased to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.01 162.80 Td ($47.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.29 162.80 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.50 162.80 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 149.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 149.60 Td (, from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 101.63 149.60 Td ($64.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.91 149.60 Td ( for the comparable period of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.25 149.60 Td (201) Tj ET Q q 0 0 0 rg BT 308.34 149.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.84 149.60 Td (. ) Tj ET Q q 0 0 0 rg BT 321.89 149.60 Td (There was no significant change in our net mar) Tj ET Q q 0 0 0 rg BT 528.78 149.60 Td (gin. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 124.40 Td (Oil and gas pr) Tj ET Q q 0 0 0 rg BT 149.46 124.40 Td (oduction expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.76 124.40 Td (T) Tj ET Q q 0 0 0 rg BT 239.72 124.40 Td (otal production costs increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.40 124.40 Td ($101.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.18 124.40 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.59 124.40 Td (35 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.71 124.40 Td (, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.51 124.40 Td ($391.9 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 111.20 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 111.20 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.99 111.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.43 111.20 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.35 111.20 Td ($290.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.13 111.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.19 111.20 Td (201) Tj ET Q q 0 0 0 rg BT 422.28 111.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.78 111.20 Td (, primarily due to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.54 111.20 Td (29 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 560.65 111.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 98.00 Td (increase in net production volumes on an equivalent basis. ) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (74) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Depletion, depr) Tj ET Q q 0 0 0 rg BT 154.63 734.40 Td (eciation, amortization, and asset r) Tj ET Q q 0 0 0 rg BT 305.17 734.40 Td (etir) Tj ET Q q 0 0 0 rg BT 320.03 734.40 Td (ement obligation liability accr) Tj ET Q q 0 0 0 rg BT 453.13 734.40 Td (etion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.38 734.40 Td (DD&A) Tj ET Q q 0 0 0 rg BT 515.16 734.40 Td ( expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.28 721.20 Td (42 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 140.40 721.20 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.45 721.20 Td ($727.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.23 721.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.29 721.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.29 721.20 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.21 721.20 Td ($51) Tj ET Q q 0 0 0 rg BT 345.30 721.20 Td (1.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.58 721.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.64 721.20 Td (201) Tj ET Q q 0 0 0 rg BT 423.73 721.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.23 721.20 Td (, due to an increase in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (depreciable asset base as a result of continued development of our Eagle Ford and Bakken/Three Forks assets and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (the associated growth of our production. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 669.60 Td (Exploration. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.80 669.60 Td (The components of exploration expense are summarized as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 633.1 m 362.5 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 633.1 m 381.5 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 633.1 m 458.5 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 619.1 m 362.5 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 619.1 m 458.5 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 563.1 m 362.5 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 563.1 m 458.5 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 563.1 m 362.5 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 550.1 m 362.5 550.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 548.1 m 362.5 548.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 563.1 m 458.5 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 550.1 m 458.5 550.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 548.1 m 458.5 548.1 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 290.00 637.15 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.50 623.15 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 408.80 623.15 Td (2011) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 607.50673828125 m 202.38623046875 607.50673828125 l s q 0 0 0 rg BT 53.00 608.97 Td (Summary of Exploration Expense) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 343.20 609.15 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 594.97 Td (Geological and geophysical expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.00 594.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.05 594.97 Td (13.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.00 594.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.55 594.97 Td (7.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 580.97 Td (Exploratory dry hole) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.75 580.97 Td (20.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.25 580.97 Td (0.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 566.97 Td (Overhead and other expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.75 566.97 Td (55.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.75 566.97 Td (45.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 552.97 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.00 552.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.05 552.97 Td (90.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.00 552.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.05 552.97 Td (53.5) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 524.40 Td (Exploration expense for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.44 524.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.44 524.40 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.47 524.40 Td (69 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.58 524.40 Td ( compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.45 524.40 Td (201) Tj ET Q q 0 0 0 rg BT 480.54 524.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.04 524.40 Td ( as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (wells categorized as exploratory being classified as dry during the year) Tj ET Q q 0 0 0 rg BT 361.72 511.20 Td (, as well as an increase in exploration ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (overhead and G&G expenses. ) Tj ET Q q 0 0 0 rg BT 186.65 498.00 Td (The increase in G&G expenses was due to a lar) Tj ET Q q 0 0 0 rg BT 395.07 498.00 Td (ge seismic study conducted in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td (first quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.28 484.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.28 484.80 Td (, while the increase in overhead and other expenses was due to an increase in our exploration ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 471.60 Td (forts. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 446.40 Td (Impairment of pr) Tj ET Q q 0 0 0 rg BT 160.75 446.40 Td (oved pr) Tj ET Q q 0 0 0 rg BT 193.64 446.40 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.33 446.40 Td (W) Tj ET Q q 0 0 0 rg BT 246.83 446.40 Td (e recorded impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.18 446.40 Td ($208.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 555.96 446.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.46 433.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.90 433.20 Td (. ) Tj ET Q q 0 0 0 rg BT 226.95 433.20 Td (The impairments were a result of write-downs of our ) Tj ET Q q 0 0 0 rg BT 462.26 433.20 Td (W) Tj ET Q q 0 0 0 rg BT 471.77 433.20 Td (olfberry assets in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (our Permian region due to downward engineering revisions, as well as write-downs of our Haynesville shale assets ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (due to low natural gas prices. ) Tj ET Q q 0 0 0 rg BT 184.21 406.80 Td (W) Tj ET Q q 0 0 0 rg BT 193.71 406.80 Td (e recorded impairment of proved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.06 406.80 Td ($219.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.84 406.80 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (comparable period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.21 393.60 Td (201) Tj ET Q q 0 0 0 rg BT 162.30 393.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.80 393.60 Td (, related to legacy assets located in our Mid-Continent region as a result of depressed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (natural gas prices.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 355.20 Td (Abandonment and impairment of unpr) Tj ET Q q 0 0 0 rg BT 254.25 355.20 Td (oved pr) Tj ET Q q 0 0 0 rg BT 287.14 355.20 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.83 355.20 Td (W) Tj ET Q q 0 0 0 rg BT 340.33 355.20 Td (e recorded abandonment and impairment) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 520.53 355.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.28 355.20 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (unproved properties expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.12 342.00 Td ($16.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.40 342.00 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.61 342.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.05 342.00 Td (, the majority of which related ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.80 Td (to acreage we no longer intend to develop in our Rocky Mountain and Mid-Continent regions. ) Tj ET Q q 0 0 0 rg BT 467.10 328.80 Td (W) Tj ET Q q 0 0 0 rg BT 476.60 328.80 Td (e recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.45 328.80 Td ($7.4 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 315.60 Td ( of abandonment and impairment) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 227.79 315.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.54 315.60 Td (of unproved properties expense for the comparable period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.64 315.60 Td (201) Tj ET Q q 0 0 0 rg BT 515.73 315.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.23 315.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (primarily associated with lease expirations in our Mid-Continent region. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 277.20 Td (General and administrative. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.85 277.20 Td (General and administrative expense increased slightly to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.23 277.20 Td ($1) Tj ET Q q 0 0 0 rg BT 477.83 277.20 Td (19.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.61 277.20 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.88 264.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.32 264.00 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.25 264.00 Td ($1) Tj ET Q q 0 0 0 rg BT 287.84 264.00 Td (18.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.62 264.00 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.64 264.00 Td (201) Tj ET Q q 0 0 0 rg BT 459.73 264.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.23 264.00 Td (. ) Tj ET Q q 0 0 0 rg BT 473.29 264.00 Td (The change is due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (to an increase in employee headcount in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.29 250.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.29 250.80 Td (, which resulted in an increase to base compensation, benefits, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (general corporate of) Tj ET Q q 0 0 0 rg BT 138.36 237.60 Td (fice expenses incurred. ) Tj ET Q q 0 0 0 rg BT 244.75 237.60 Td (These were mostly of) Tj ET Q q 0 0 0 rg BT 339.55 237.60 Td (fset by an increase in COP) Tj ET Q q 0 0 0 rg BT 455.54 237.60 Td (AS overhead ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (reimbursement as a result of an increase in operated well count, as well as an overall decrease in accruals for cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (bonus that reflect less success at reaching performance metrics when compared with the prior year) Tj ET Q q 0 0 0 rg BT 482.50 211.20 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 186.00 Td (Change in Net Pr) Tj ET Q q 0 0 0 rg BT 162.89 186.00 Td (ofits Plan liability) Tj ET Q q 0 0 0 rg BT 241.73 186.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.98 186.00 Td (For ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.01 186.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.01 186.00 Td (, we recorded a non-cash benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.60 186.00 Td ($28.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.88 186.00 Td ( compared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (to a non-cash benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.60 172.80 Td ($25.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.88 172.80 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.94 172.80 Td (201) Tj ET Q q 0 0 0 rg BT 246.03 172.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.53 172.80 Td (. ) Tj ET Q q 0 0 0 rg BT 259.58 172.80 Td (These non-cash benefits are directly related to the change in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (estimated value of the associated liability between the reporting periods. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 439.45 159.60 Td (Note 1) Tj ET Q q 0 0 0 rg BT 467.66 159.60 Td (1 - Fair V) Tj ET Q q 0 0 0 rg BT 510.13 159.60 Td (alue ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (Measur) Tj ET Q q 0 0 0 rg BT 83.20 146.40 Td (ements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.49 146.40 Td (in Part II, Item 8 of this report for the impact a direct payment made to cash-out several pools had on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (our change in the Net Profits Plan liability in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.11 133.20 Td (201) Tj ET Q q 0 0 0 rg BT 266.20 133.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.70 133.20 Td (. ) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (75) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Derivative gain. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 162.98 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 172.48 734.40 Td (e recognized a derivative gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.07 734.40 Td ($55.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.35 734.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.41 734.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.41 734.40 Td ( compared to a gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.82 734.40 Td ($37.1 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 721.20 Td ( for the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.80 721.20 Td (201) Tj ET Q q 0 0 0 rg BT 199.90 721.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.40 721.20 Td (. Declining commodity prices in both periods resulted in favorable derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (positions and settlements. ) Tj ET Q q 0 0 0 rg BT 168.65 708.00 Td (The 201) Tj ET Q q 0 0 0 rg BT 204.60 708.00 Td (1 amount includes gains resulting from unrealized changes in fair value on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (commodity derivative contracts of $62.8 million and realized cash settlement losses on derivatives for which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (unrealized changes in fair value were not previously recorded in other comprehensive loss of $25.7 million. Please ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 84.81 668.40 Td (Note 10 - Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.13 668.40 Td ( in PartII,Item 8 of this report for additional discussion.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 643.20 Td (Other operating expense. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.00 643.20 Td (Other operating expense was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.12 643.20 Td ($7.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.90 643.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.96 643.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.96 643.20 Td ( compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.13 643.20 Td ($17.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 553.41 643.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.31 630.00 Td (201) Tj ET Q q 0 0 0 rg BT 77.40 630.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.90 630.00 Td (. ) Tj ET Q q 0 0 0 rg BT 90.95 630.00 Td (The decrease is a result of commissions and legal costs incurred in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.64 630.00 Td (201) Tj ET Q q 0 0 0 rg BT 402.73 630.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.23 630.00 Td ( associated with our ) Tj ET Q q 0 0 0 rg BT 498.05 630.00 Td (Acquisition ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (and Development ) Tj ET Q q 0 0 0 rg BT 130.03 616.80 Td (Agreement with Mitsui, as well as legal costs incurred related to the arbitration proceedings ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (involving ) Tj ET Q q 0 0 0 rg BT 94.31 603.60 Td (Anadarko E&P) Tj ET Q q 0 0 0 rg BT 161.42 603.60 Td ( Company) Tj ET Q q 0 0 0 rg BT 206.23 603.60 Td (, LP) Tj ET Q q 0 0 0 rg BT 224.16 603.60 Td ( during the second half of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.63 603.60 Td (201) Tj ET Q q 0 0 0 rg BT 355.72 603.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.22 603.60 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 435.13 603.60 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 478.62 603.60 Td (Acquisition and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (Development ) Tj ET Q q 0 0 0 rg BT 110.58 590.40 Td (Agr) Tj ET Q q 0 0 0 rg BT 126.67 590.40 Td (eement, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.32 590.40 Td (in Part II, Item 8 of this report for additional discussion of our ) Tj ET Q q 0 0 0 rg BT 438.27 590.40 Td (Acquisition and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (Development ) Tj ET Q q 0 0 0 rg BT 111.40 577.20 Td (Agreement. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 552.00 Td (Income tax benefit \(expense\).) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.38 552.00 Td ( ) Tj ET Q q 0 0 0 rg BT 222.93 552.00 Td (W) Tj ET Q q 0 0 0 rg BT 232.43 552.00 Td (e recorded an income tax benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.94 552.00 Td ($29.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.22 552.00 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.55 552.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 552.00 Td ( compared to an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (expense of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.09 538.80 Td ($123.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.87 538.80 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.20 538.80 Td (201) Tj ET Q q 0 0 0 rg BT 199.29 538.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.79 538.80 Td (, resulting in ef) Tj ET Q q 0 0 0 rg BT 271.19 538.80 Td (fective tax rates of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.48 538.80 Td (35.0 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.84 538.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.22 538.80 Td (36.5 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.59 538.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 543.52 538.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (The net decrease in the rate reflects dif) Tj ET Q q 0 0 0 rg BT 220.51 525.60 Td (ferences in the ef) Tj ET Q q 0 0 0 rg BT 295.74 525.60 Td (fects of individual components of our tax rate between ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (years. Comparable valuation allowance amounts recorded on state net operating losses and charitable contributions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (in each of the two years had the ef) Tj ET Q q 0 0 0 rg BT 200.68 499.20 Td (fect of increasing the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.97 499.20 Td (201) Tj ET Q q 0 0 0 rg BT 312.06 499.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.56 499.20 Td ( rate of expense while decreasing the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.79 499.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.79 499.20 Td ( benefit rate. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (The impacts from these two items were mostly of) Tj ET Q q 0 0 0 rg BT 267.92 486.00 Td (fset by the ef) Tj ET Q q 0 0 0 rg BT 324.83 486.00 Td (fect from recognized R&D credit benefits. Other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 472.80 Td ( net decreases in the ef) Tj ET Q q 0 0 0 rg BT 171.67 472.80 Td (fective rate resulted from changes in the mix of the highest mar) Tj ET Q q 0 0 0 rg BT 450.34 472.80 Td (ginal state tax rates, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 459.60 Td (fering ef) Tj ET Q q 0 0 0 rg BT 99.38 459.60 Td (fects from percentage depletion and other permanent dif) Tj ET Q q 0 0 0 rg BT 346.27 459.60 Td (ferences. ) Tj ET Q q 0 0 0 rg BT 390.96 459.60 Td (The current income tax expense in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 446.40 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.61 446.40 Td ($370,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.86 446.40 Td ( compared with the income tax benefit of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.74 446.40 Td ($204,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.99 446.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.04 446.40 Td (201) Tj ET Q q 0 0 0 rg BT 391.13 446.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.63 446.40 Td (, which included a federal carryback ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (amount. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (Overview of Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 248.12 406.80 Td (ces) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 381.60 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 381.60 Td (e believe we have suf) Tj ET Q q 0 0 0 rg BT 189.98 381.60 Td (ficient liquidity and capital resources to execute our business plan for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (foreseeable future. ) Tj ET Q q 0 0 0 rg BT 137.14 368.40 Td (W) Tj ET Q q 0 0 0 rg BT 146.64 368.40 Td (e continue to manage the duration and level of our drilling and completion service ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (commitments in order to provide flexibility to reduce activity and capital expenditures in periods of prolonged ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (commodity price decline.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.37 316.80 Td (ces of cash) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 291.60 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 291.60 Td (e currently expect our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.45 291.60 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.45 291.60 Td ( capital program to be funded by cash flows from operations and proceeds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.40 Td (from divestitures that closed during the fourth quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.79 278.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.79 278.40 Td (, with any shortfall to be funded by borrowings under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td (our credit facility) Tj ET Q q 0 0 0 rg BT 125.64 265.20 Td (. ) Tj ET Q q 0 0 0 rg BT 133.28 265.20 Td (Although we anticipate that cash flows from these sources will be suf) Tj ET Q q 0 0 0 rg BT 438.87 265.20 Td (ficient to fund our expected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 252.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 252.00 Td ( capital program, we may also elect to access the capital markets, depending on prevailing market conditions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 238.80 Td (The divestiture of oil and gas properties is also a potential source of funding and we will continue to evaluate our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.60 Td (portfolio to identify potential divestiture candidates.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 199.20 Td (Our primary sources of liquidity are the cash flows provided by our operating activities, borrowings under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 186.00 Td (our credit facility) Tj ET Q q 0 0 0 rg BT 125.64 186.00 Td (, proceeds received from divestitures of properties, and other financing alternatives, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (accessing capital markets. From time to time, we may enter into carrying cost funding and sharing arrangements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (with third parties for particular exploration and/or development programs. ) Tj ET Q q 0 0 0 rg BT 380.82 159.60 Td (All of our sources of liquidity can be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (impacted by the general condition of the broader economy and by fluctuations in commodity prices, operating costs, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (and volumes produced, all of which af) Tj ET Q q 0 0 0 rg BT 218.72 133.20 Td (fect us and our industry) Tj ET Q q 0 0 0 rg BT 321.87 133.20 Td (. ) Tj ET Q q 0 0 0 rg BT 329.93 133.20 Td (W) Tj ET Q q 0 0 0 rg BT 339.43 133.20 Td (e have no control over market prices for oil, gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (or NGLs, although we are able to influence the amount of our realized revenues from our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 523.66 120.00 Td ( sales ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (through the use of derivative contracts as part of our commodity price risk management program. Historically) Tj ET Q q 0 0 0 rg BT 535.28 106.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (decreases in commodity prices have limited our industry) Tj ET Q q 0 0 0 rg BT 302.02 93.60 Td (s access to capital markets. ) Tj ET Q q 0 0 0 rg BT 426.13 93.60 Td (The borrowing base under our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.40 Td (credit facility could be reduced as a result of lower commodity prices, divestitures of proved properties, or newly ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 67.20 Td (issued debt. See ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 126.07 67.20 Td (Cr) Tj ET Q q 0 0 0 rg BT 137.28 67.20 Td (edit Facility) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.73 67.20 Td ( below for a discussion of the amendment and extension to our credit facility during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 54.00 Td (the second quarter of 2013. ) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (76) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (In the second quarter of 2013, we issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.53 734.40 Td ($500.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.31 734.40 Td ( in aggregate principal amount of 2024 Notes and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (used the net proceeds to reduce outstanding amounts under our credit facility) Tj ET Q q 0 0 0 rg BT 388.04 721.20 Td (. In late 201) Tj ET Q q 0 0 0 rg BT 442.92 721.20 Td (1, we consummated our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 184.12 708.00 Td (Agreement with Mitsui pursuant to which Mitsui funds, or carries, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.24 708.00 Td (90 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.35 708.00 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (certain drilling and completion costs attributable to our remaining interest in our non-operated Eagle Ford shale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (acreage until ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.24 681.60 Td ($680.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.02 681.60 Td ( has been expended on our behalf. Of the original ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.00 681.60 Td ($680.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.79 681.60 Td ( carry amount, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.37 681.60 Td ($573.8 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 668.40 Td ( had been spent as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.47 668.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.92 668.40 Td (. ) Tj ET Q q 0 0 0 rg BT 270.97 668.40 Td (The remaining carry is expected to be realized in early 2014. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 115.66 655.20 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 159.15 655.20 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 291.84 655.20 Td (Agr) Tj ET Q q 0 0 0 rg BT 307.93 655.20 Td (eement) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.08 655.20 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (discussion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 615.60 Td (Proposals for reform of the United States Internal Revenue Code and discussions regarding funding the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (federal government budget include eliminating or reducing current tax deductions for intangible drilling costs, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (depreciation of equipment acquisition costs, the domestic production activities deduction, and percentage depletion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (Legislation modifying or eliminating these deductions would be expected to reduce net operating cash flows over ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.80 Td (time, thereby reducing funding available for our exploration and development capital programs and those of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td (peers in the industry) Tj ET Q q 0 0 0 rg BT 138.79 549.60 Td (. If enacted, these funding reductions could have a significant adverse ef) Tj ET Q q 0 0 0 rg BT 459.30 549.60 Td (fect on drilling in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (United States for a number of years.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (Cr) Tj ET Q q 0 0 0 rg BT 61.21 510.00 Td (edit facility) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 484.80 Td (During the second quarter of 2013, we and our lenders entered into our Fifth ) Tj ET Q q 0 0 0 rg BT 424.77 484.80 Td (Amended and Restated Credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (Agreement, which replaced our previous credit facility) Tj ET Q q 0 0 0 rg BT 290.27 471.60 Td (. ) Tj ET Q q 0 0 0 rg BT 298.32 471.60 Td (The credit facility has a maximum loan amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.61 471.60 Td ($2.5 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.72 458.40 Td (, current aggregate lender commitments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.40 458.40 Td ($1.3 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.12 458.40 Td (, and a maturity date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.29 458.40 Td (April12, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.75 458.40 Td (. ) Tj ET Q q 0 0 0 rg BT 495.81 458.40 Td (The borrowing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (base under the credit facility as of the filing date of this report is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.30 445.20 Td ($2.2 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.02 445.20 Td ( and is subject to regular semi-annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (re-determinations. ) Tj ET Q q 0 0 0 rg BT 135.63 432.00 Td (W) Tj ET Q q 0 0 0 rg BT 145.13 432.00 Td (e believe the current commitment amount is suf) Tj ET Q q 0 0 0 rg BT 354.79 432.00 Td (ficient to meet our anticipated liquidity and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (operating needs. No individual bank participating in our credit facility represents more than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.40 418.80 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.52 418.80 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (lending commitments under the credit facility) Tj ET Q q 0 0 0 rg BT 250.59 405.60 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 324.50 405.60 Td (Note 5 - Long-term Debt) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.27 405.60 Td ( in Part II, Item 8 of this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (report for additional discussion as well as the presentation of the outstanding balance, total amount of letters of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (credit, and available borrowing capacity under our credit facility as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.31 379.20 Td (February12, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.27 379.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.27 379.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.72 379.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 366.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 352.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 339.60 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 339.60 Td (e are subject to customary covenants under our credit facility) Tj ET Q q 0 0 0 rg BT 363.27 339.60 Td (, including limitations on dividend payments ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (and requirements to maintain certain financial ratios, which include debt to EBITDAX, as defined by our credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (agreement as the ratio of debt to 12-month trailing EBITDAX, of less than 4.0 and an adjusted current ratio, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (defined by our credit agreement, of no less than 1.0. Please refer to the caption ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 401.57 300.00 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 451.47 300.00 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 532.94 300.00 Td (es ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (below for our definition of EBITDAX. ) Tj ET Q q 0 0 0 rg BT 225.97 286.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.86 286.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.30 286.80 Td (, our debt to EBITDAX ratio and adjusted current ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (ratio were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.03 273.60 Td (1.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 110.78 273.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.16 273.60 Td (3.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.91 273.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 203.84 273.60 Td (. ) Tj ET Q q 0 0 0 rg BT 211.48 273.60 Td (As of the filing date of this report, we are in compliance with all financial and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (non-financial covenants under our credit facility) Tj ET Q q 0 0 0 rg BT 261.56 260.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 235.20 Td (Our daily weighted-average credit facility debt balance was approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.39 235.20 Td ($192.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.17 235.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.55 235.20 Td ($171.8 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 222.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 222.00 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.27 222.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.71 222.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.84 222.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.84 222.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 361.77 222.00 Td (. ) Tj ET Q q 0 0 0 rg BT 369.82 222.00 Td (W) Tj ET Q q 0 0 0 rg BT 379.32 222.00 Td (e used the proceeds from our 2024 Notes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.80 Td (to reduce our credit facility balance at the end of the second quarter of 2013. Our average credit facility balance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.60 Td (was lower throughout 2012 as a result of the use of proceeds from our 2021 Notes, issued at the end of 201) Tj ET Q q 0 0 0 rg BT 520.65 195.60 Td (1, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.40 Td (our 2023 Notes, issued at the end of the second quarter of 2012, to pay down our credit facility balance. Cash flows ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.20 Td (provided by our operating activities, proceeds received from divestitures of properties, and the amount of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.00 Td (capital expenditures also impact the amount we have borrowed under our credit facility) Tj ET Q q 0 0 0 rg BT 433.53 156.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 142.80 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 142.80 Td (eighted-average inter) Tj ET Q q 0 0 0 rg BT 152.74 142.80 Td (est rates) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 116.40 Td (Our weighted-average interest rates include both paid and accrued interest payments, cash fees on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 103.20 Td (unused portion of the credit facility) Tj ET Q q 0 0 0 rg BT 208.54 103.20 Td (s aggregate commitment amount, letter of credit fees, and amortization of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 90.00 Td (deferred financing costs. ) Tj ET Q q 0 0 0 rg BT 163.32 90.00 Td (Additionally) Tj ET Q q 0 0 0 rg BT 218.21 90.00 Td (, our 2012 weighted-average interest rate includes amortization of the debt ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 76.80 Td (discount related to our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.42 76.80 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.83 76.80 Td ( Senior Convertible Notes due 2027 \(the 3.50% Senior Convertible Notes\). Our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 63.60 Td (weighted-average borrowing rate is calculated using only our paid and accrued interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.10 63.60 Td (. ) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (77) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 721.20 Td (The following table presents our weighted-average interest rates and our weighted-average borrowing rates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.74 708.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.18 708.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 228.68 708.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.68 708.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.81 708.00 Td (201) Tj ET Q q 0 0 0 rg BT 290.90 708.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.40 708.00 Td (. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 668.3 m 332.5 668.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 668.3 m 345.5 668.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 668.3 m 446.5 668.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 668.3 m 459.5 668.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 668.3 m 560.5 668.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 654.3 m 332.5 654.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 654.3 m 446.5 654.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 654.3 m 560.5 654.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 654.3 m 332.5 654.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 654.3 m 446.5 654.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 654.3 m 560.5 654.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 313.50 673.20 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 270.00 658.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 384.50 658.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 498.80 658.35 Td (2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 644.17 Td (Weighted-average interest rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.05 644.17 Td (6.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.80 644.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.05 644.17 Td (6.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 644.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.05 644.17 Td (8.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 550.80 644.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 630.17 Td (Weighted-average borrowing rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.05 630.17 Td (5.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.80 630.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.05 630.17 Td (5.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.80 630.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.05 630.17 Td (5.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 550.80 630.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 601.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 601.60 Td (Our weighted-average interest rates and weighted average borrowing rates for the years ended December ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 588.40 Td (31, 2013, 2012, and 201) Tj ET Q q 0 0 0 rg BT 156.22 588.40 Td (1, have been impacted by the issuance of the 2019 Notes in the first quarter of 201) Tj ET Q q 0 0 0 rg BT 518.40 588.40 Td (1, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 575.20 Td (issuance of the 2021 Notes in the fourth quarter of 201) Tj ET Q q 0 0 0 rg BT 290.31 575.20 Td (1, the settlement of our 3.50% Senior Convertible Notes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.00 Td (the second quarter of 2012, the issuance of the 2023 Notes in the second quarter of 2012, and the issuance of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 548.80 Td (2024 Notes in the second quarter of 2013. Each of these events impacted the average balance on our revolving ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 535.60 Td (credit facility) Tj ET Q q 0 0 0 rg BT 108.23 535.60 Td (, the average interest rate on our non-bank debt, as well as the fees paid on the unused portion of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 522.40 Td (aggregate commitment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.85 522.40 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 497.20 Td (Uses of cash) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 472.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 472.00 Td (e use cash for the acquisition, exploration, and development of oil and gas properties and for the payment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.80 Td (of operating and general and administrative costs, income taxes, dividends, and debt obligations, including interest. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.60 Td (Expenditures for the exploration and development of oil and gas properties are the primary use of our capital ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.40 Td (resources. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.95 432.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.95 432.40 Td (, we spent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.99 432.40 Td ($1.6 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.72 432.40 Td ( for exploration and development capital activities and proved and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 419.20 Td (unproved oil and gas property acquisitions. ) Tj ET Q q 0 0 0 rg BT 245.32 419.20 Td (These amounts dif) Tj ET Q q 0 0 0 rg BT 326.38 419.20 Td (fer from the cost incurred amounts, which are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.00 Td (accrual-based and include asset retirement obligation, G&G, and exploration overhead amounts.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 380.80 Td (The amount and allocation of future capital expenditures will depend upon a number of factors, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 367.60 Td (the number and size of available acquisition and drilling opportunities, our cash flows from operating, investing, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.40 Td (and financing activities, and our ability to assimilate acquisitions and execute our drilling program. In addition, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 341.20 Td (impact of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 172.70 341.20 Td ( prices on investment opportunities, the availability of capital, and the timing and results ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.00 Td (of our operated and non-operated development and exploratory activities may lead to changes in funding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 314.80 Td (requirements for future development. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 217.08 314.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.83 314.80 Td (W) Tj ET Q q 0 0 0 rg BT 229.33 314.80 Td (e periodically review our capital expenditure budget to assess changes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.60 Td (current and projected cash flows, acquisition and divestiture activities, debt requirements, and other factors.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 276.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 276.40 Td (e may from time to time repurchase certain amounts of our outstanding debt securities for cash and/or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.20 Td (through exchanges for other securities. Such repurchases or exchanges may be made in open market transactions, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.00 Td (privately negotiated transactions, or otherwise. ) Tj ET Q q 0 0 0 rg BT 260.77 250.00 Td (Any such repurchases or exchanges will depend on prevailing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 236.80 Td (market conditions, our liquidity requirements, contractual restrictions, compliance with securities laws, and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 223.60 Td (factors. ) Tj ET Q q 0 0 0 rg BT 87.98 223.60 Td (The amounts involved in any such transaction may be material.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 198.40 Td (As of the filing date of this report, we could repurchase up to 3,072,184 shares of our common stock under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 185.20 Td (our stock repurchase program, subject to the approval of our Board of Directors. Shares may be repurchased from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td (time to time in the open market, or in privately negotiated transactions, subject to market conditions and other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.80 Td (factors, including certain provisions of our credit facility) Tj ET Q q 0 0 0 rg BT 298.54 158.80 Td (, the indentures governing our Senior Notes, compliance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.60 Td (with securities laws, and the terms and provisions of our stock repurchase program. Our Board of Directors reviews ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.40 Td (this program as part of the allocation of our capital. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.45 132.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 337.45 132.40 Td (, we did not repurchase any shares of our common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.20 Td (stock, and we currently do not plan to repurchase any outstanding shares.) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (78) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 734.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.91 734.40 Td (, we paid ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.68 734.40 Td ($6.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.46 734.40 Td ( in dividends to our stockholders, which constitutes a dividend of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.08 734.40 Td ($0.10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.83 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (per share. Our intention is to continue to make dividend payments for the foreseeable future, subject to our future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (earnings, our financial condition, credit facility and other covenants, and other factors which could arise. Payment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (of future dividends remains at the discretion of our Board of Directors. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 668.40 Td (The following table presents changes in cash flows between the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.83 668.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.27 668.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.77 668.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.77 668.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 655.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 655.20 Td (, for our operating, investing, and financing activities. ) Tj ET Q q 0 0 0 rg BT 313.63 655.20 Td (The analysis following the table should be read in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (conjunction with our statements of cash flows in PartII,Item 8 of this report.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 605.5 m 208.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 605.5 m 212.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 605.5 m 264.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 605.5 m 268.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 605.5 m 320.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 605.5 m 380.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 605.5 m 444.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 605.5 m 505.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 605.5 m 562.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 591.5 m 208.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 591.5 m 264.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 591.5 m 320.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 591.5 m 380.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 605.5 m 384.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 605.5 m 444.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 591.5 m 444.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 591.5 m 505.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 605.5 m 509.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 591.5 m 562.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 591.5 m 505.5 591.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 189.85 621.40 Td (For) Tj ET Q q 0 0 0 rg BT 206.75 621.40 Td ( the ) Tj ET Q q 0 0 0 rg BT 226.51 621.40 Td (Y) Tj ET Q q 0 0 0 rg BT 233.23 621.40 Td (ears Ended ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 206.00 610.40 Td (December) Tj ET Q q 0 0 0 rg BT 253.44 610.40 Td ( 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 337.20 621.40 Td (Amount of Changes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.10 610.40 Td (Between) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 461.70 621.40 Td (Percent of Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 485.10 610.40 Td (Between) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 171.00 595.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 227.00 595.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 283.30 595.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 328.45 595.55 Td (2013/2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 390.75 595.55 Td (2012/2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 452.95 595.55 Td (2013/2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 512.25 595.55 Td (2012/2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.70 581.55 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 567.37 Td (Net cash provided by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 556.37 Td (operating activities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.00 556.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.25 556.42 Td (1,338.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.00 556.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.50 556.42 Td (922.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 556.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 556.42 Td (760.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 556.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.50 556.42 Td (416.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.00 556.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.55 556.42 Td (161.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.15 556.42 Td (45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.80 556.42 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.15 556.42 Td (21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 556.42 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 541.37 Td (Net cash used in) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 530.37 Td (investing activities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.00 530.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.60 530.42 Td (\(1,192.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.30 530.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.00 530.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.60 530.42 Td (\(1,457.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.30 530.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 530.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.60 530.42 Td (\(1,264.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.30 530.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 530.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.50 530.42 Td (264.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.00 530.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.85 530.42 Td (\(192.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 530.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.45 530.42 Td (\(18) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.15 530.42 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.15 530.42 Td (15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 530.42 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 515.37 Td (Net cash provided by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 504.37 Td (financing activities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.00 504.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.50 504.42 Td (130.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.00 504.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.50 504.42 Td (422.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.00 504.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 504.42 Td (618.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 504.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.85 504.42 Td (\(291.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 504.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.00 504.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.85 504.42 Td (\(196.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 504.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.45 504.42 Td (\(69) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.15 504.42 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.45 504.42 Td (\(32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 549.15 504.42 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 474.80 Td (Analysis of cash flow changes between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 223.53 474.80 Td (2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 245.53 474.80 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 267.53 474.80 Td (2012) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 289.53 474.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 448.40 Td (Operating activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.93 448.40 Td (Cash received from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 348.92 448.40 Td ( production revenues, including derivative cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.20 Td (settlements, increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 149.27 435.20 Td ($652.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.05 435.20 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.46 435.20 Td (43 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.58 435.20 Td (, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.38 435.20 Td ($2.2 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.11 435.20 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.32 435.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.76 435.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.00 Td (compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.12 422.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.12 422.00 Td (. ) Tj ET Q q 0 0 0 rg BT 232.17 422.00 Td (This increase was due to an increase in production volumes and an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.80 Td (increase in our adjusted realized price. Cash paid for lease operating expenses in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.50 408.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.50 408.80 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.53 408.80 Td ($54.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.81 408.80 Td ( from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 395.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 395.60 Td ( due to increased production. Cash paid for interest, net of capitalized interest, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.60 395.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.60 395.60 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.63 395.60 Td ($19.4 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.40 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 382.40 Td ( compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.65 382.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.65 382.40 Td ( due to interest paid on our 2023 Notes in the first and third quarters ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.20 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.91 369.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.91 369.20 Td (, of) Tj ET Q q 0 0 0 rg BT 98.38 369.20 Td (fset partially by interest no longer paid on the 3.50% Senior Convertible Notes that we settled in ) Tj ET Q q 0 0 0 rg BT 524.23 369.20 Td (April ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.00 Td (2012.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 330.80 Td (Investing activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.03 330.80 Td (Net proceeds from the sale of oil and gas properties in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.04 330.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.04 330.80 Td ( increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.06 330.80 Td ($369.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 551.85 330.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 317.60 Td (compared to the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.12 317.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.12 317.60 Td ( due lar) Tj ET Q q 0 0 0 rg BT 245.91 317.60 Td (gely to the sale of our ) Tj ET Q q 0 0 0 rg BT 343.66 317.60 Td (Anadarko Basin assets in the fourth quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.40 Td (2013. Capital expenditures in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 185.03 304.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.03 304.40 Td (, including costs to acquire proved and unproved oil and gas properties, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.20 Td (increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.28 291.20 Td ($101.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.06 291.20 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.47 291.20 Td (seven percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.63 291.20 Td (, compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.25 291.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 416.25 291.20 Td (. ) Tj ET Q q 0 0 0 rg BT 424.31 291.20 Td (This increase is primarily the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.00 Td (result of our completed acquisition of proved and unproved properties in our Rocky Mountain region in the second ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.80 Td (quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 95.81 264.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.81 264.80 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 239.60 Td (Financing activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.92 239.60 Td (W) Tj ET Q q 0 0 0 rg BT 191.42 239.60 Td (e received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.05 239.60 Td ($490.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.84 239.60 Td ( of net proceeds from the issuance of our 2024 Notes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 226.40 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.92 226.40 Td ($392.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.70 226.40 Td ( of net proceeds from the issuance of our 2023 Notes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.53 226.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.53 226.40 Td (. ) Tj ET Q q 0 0 0 rg BT 487.58 226.40 Td (These proceeds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.20 Td (were used to reduce our outstanding credit facility balance. ) Tj ET Q q 0 0 0 rg BT 315.22 213.20 Td (W) Tj ET Q q 0 0 0 rg BT 324.73 213.20 Td (e had net payments under our credit facility of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.90 213.20 Td ($340.0 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 200.00 Td ( during the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.88 200.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.32 200.00 Td (, compared with net borrowings of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.20 200.00 Td ($340.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.98 200.00 Td ( during the same ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 186.80 Td (period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 92.16 186.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.16 186.80 Td (. During the second quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.61 186.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.61 186.80 Td (, we paid ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.38 186.80 Td ($287.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 381.16 186.80 Td ( to settle our 3.50% Senior Convertible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 173.60 Td (Notes. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 148.40 Td (Analysis of cash flow changes between ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 223.53 148.40 Td (2012) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 245.53 148.40 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 267.53 148.40 Td (201) Tj ET Q q 0 0 0 rg BT 283.21 148.40 Td (1) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 288.71 148.40 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 123.20 Td (Operating activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.93 123.20 Td (Cash received from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 348.92 123.20 Td ( production revenues, including derivative cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 110.00 Td (settlements, increased $256.5 million, or 21 percent, to $1.5 billion for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.32 110.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.76 110.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.80 Td (compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.12 96.80 Td (201) Tj ET Q q 0 0 0 rg BT 218.21 96.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.71 96.80 Td (. ) Tj ET Q q 0 0 0 rg BT 231.76 96.80 Td (This increase was due to an increase in production volumes and favorable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 83.60 Td (derivative settlements resulting from declining commodity prices throughout the year) Tj ET Q q 0 0 0 rg BT 425.43 83.60 Td (. Cash paid for lease operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 70.40 Td (expenses in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.76 70.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.76 70.40 Td ( increased $28.4 million compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.25 70.40 Td (201) Tj ET Q q 0 0 0 rg BT 319.34 70.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.84 70.40 Td ( due to increased production and higher service costs ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 57.20 Td (caused by increased demand for those services. Cash paid for interest, net of capitalized interest, during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.23 57.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.23 57.20 Td ( ) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (79) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (increased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.28 734.40 Td ($29.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 153.56 734.40 Td ( compared with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.43 734.40 Td (201) Tj ET Q q 0 0 0 rg BT 324.52 734.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.02 734.40 Td ( due to interest payments on our 2019 Notes and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (2021 Notes, as well as an increase in interest payments under our credit facility arising from an increase in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (weighted average outstanding balance for the year) Tj ET Q q 0 0 0 rg BT 270.52 708.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 682.80 Td (Investing activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.03 682.80 Td (Capital expenditures in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.81 682.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.81 682.80 Td ( decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.66 682.80 Td ($125.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.44 682.80 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.86 682.80 Td (eight percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.97 682.80 Td (, compared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (with the same period in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.00 669.60 Td (201) Tj ET Q q 0 0 0 rg BT 172.10 669.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.60 669.60 Td (. ) Tj ET Q q 0 0 0 rg BT 185.65 669.60 Td (This decrease was a result of being carried for substantially all of our drilling and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (completion costs in our outside operated Eagle Ford program. Net proceeds) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 385.41 656.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.16 656.40 Td (from the sale of oil and gas properties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.11 643.20 Td ($309.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.89 643.20 Td ( between the two periods due to a decrease in divestiture activity in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.31 643.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.31 643.20 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 618.00 Td (Financing activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.92 618.00 Td (During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.84 618.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.84 618.00 Td (, we paid ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.60 618.00 Td ($287.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.38 618.00 Td ( to settle our 3.50% Senior Convertible Notes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 604.80 Td (e received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 107.13 604.80 Td ($392.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.91 604.80 Td ( of net proceeds from the issuance of our 2023 Notes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.74 604.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.74 604.80 Td (, compared with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.66 604.80 Td ($684.2 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 591.60 Td ( of proceeds from the issuance of our 2019 Notes and 2021 Notes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.21 591.60 Td (201) Tj ET Q q 0 0 0 rg BT 400.30 591.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.80 591.60 Td (. ) Tj ET Q q 0 0 0 rg BT 413.85 591.60 Td (W) Tj ET Q q 0 0 0 rg BT 423.36 591.60 Td (e had net borrowings under our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (credit facility of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.61 578.40 Td ($340.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.39 578.40 Td ( during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.61 578.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.61 578.40 Td (, compared with net repayments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.08 578.40 Td ($48.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.36 578.40 Td ( during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.58 578.40 Td (201) Tj ET Q q 0 0 0 rg BT 509.67 578.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.17 578.40 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (Inter) Tj ET Q q 0 0 0 rg BT 70.97 553.20 Td (est Rate Risk) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 526.80 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 526.80 Td (e are exposed to market risk due to the floating interest rate on our revolving credit facility) Tj ET Q q 0 0 0 rg BT 493.70 526.80 Td (. Our credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (agreement allows us to fix the interest rate for all or a portion of the principal balance of our revolving credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (facility for a period up to six months.) Tj ET Q q 0 0 0 rg BT 219.05 500.40 Td (T) Tj ET Q q 0 0 0 rg BT 225.00 500.40 Td (o the extent that the interest rate is fixed, interest rate changes af) Tj ET Q q 0 0 0 rg BT 507.93 500.40 Td (fect the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (credit facility) Tj ET Q q 0 0 0 rg BT 112.00 487.20 Td (s fair market value but do not impact results of operations or cash flows.Conversely) Tj ET Q q 0 0 0 rg BT 485.19 487.20 Td (, for the portion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (of the credit facility that has a floating interest rate, interest rate changes will not af) Tj ET Q q 0 0 0 rg BT 415.71 474.00 Td (fect the fair market value but ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (will impact future results of operations and cash flows.Changes in interest rates do not impact the amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (interest we pay on our fixed-rate Senior Notes, but can impact their fair market values. ) Tj ET Q q 0 0 0 rg BT 436.09 447.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.98 447.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 549.42 447.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (our fixed-rate debt outstanding totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.36 434.40 Td ($1.6 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.09 434.40 Td (. ) Tj ET Q q 0 0 0 rg BT 279.73 434.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 306.62 434.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.06 434.40 Td (, we had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.77 434.40 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.77 434.40 Td ( floating-rate debt ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (outstanding, thus we had no exposure to market risk related to floating interest rates at that date. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (Commodity Price Risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 370.80 Td (The ) Tj ET Q q 0 0 0 rg BT 105.55 370.80 Td (prices ) Tj ET Q q 0 0 0 rg BT 134.26 370.80 Td (we ) Tj ET Q q 0 0 0 rg BT 149.53 370.80 Td (receive ) Tj ET Q q 0 0 0 rg BT 183.72 370.80 Td (for ) Tj ET Q q 0 0 0 rg BT 198.99 370.80 Td (our ) Tj ET Q q 0 0 0 rg BT 216.10 370.80 Td (oil, ) Tj ET Q q 0 0 0 rg BT 232.91 370.80 Td (gas, ) Tj ET Q q 0 0 0 rg BT 252.77 370.80 Td (and ) Tj ET Q q 0 0 0 rg BT 271.10 370.80 Td (NGL) Tj ET Q q 0 0 0 rg BT 293.29 370.80 Td ( ) Tj ET Q q 0 0 0 rg BT 295.74 370.80 Td (production ) Tj ET Q q 0 0 0 rg BT 345.84 370.80 Td (heavily ) Tj ET Q q 0 0 0 rg BT 380.67 370.80 Td (impacts ) Tj ET Q q 0 0 0 rg BT 417.32 370.80 Td (our ) Tj ET Q q 0 0 0 rg BT 434.43 370.80 Td (revenue, ) Tj ET Q q 0 0 0 rg BT 474.44 370.80 Td (overall ) Tj ET Q q 0 0 0 rg BT 507.42 370.80 Td (profitability) Tj ET Q q 0 0 0 rg BT 559.25 370.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (access ) Tj ET Q q 0 0 0 rg BT 81.14 357.60 Td (to ) Tj ET Q q 0 0 0 rg BT 92.74 357.60 Td (capital ) Tj ET Q q 0 0 0 rg BT 125.11 357.60 Td (and ) Tj ET Q q 0 0 0 rg BT 144.04 357.60 Td (future ) Tj ET Q q 0 0 0 rg BT 173.35 357.60 Td (rate ) Tj ET Q q 0 0 0 rg BT 192.88 357.60 Td (of ) Tj ET Q q 0 0 0 rg BT 205.09 357.60 Td (growth. ) Tj ET Q q 0 0 0 rg BT 244.81 357.60 Td (Oil, ) Tj ET Q q 0 0 0 rg BT 264.66 357.60 Td (gas, ) Tj ET Q q 0 0 0 rg BT 285.12 357.60 Td (and ) Tj ET Q q 0 0 0 rg BT 304.05 357.60 Td (NGL) Tj ET Q q 0 0 0 rg BT 326.25 357.60 Td ( ) Tj ET Q q 0 0 0 rg BT 329.30 357.60 Td (prices ) Tj ET Q q 0 0 0 rg BT 358.61 357.60 Td (are ) Tj ET Q q 0 0 0 rg BT 375.09 357.60 Td (subject ) Tj ET Q q 0 0 0 rg BT 409.29 357.60 Td (to ) Tj ET Q q 0 0 0 rg BT 420.90 357.60 Td (wide ) Tj ET Q q 0 0 0 rg BT 445.33 357.60 Td (fluctuations ) Tj ET Q q 0 0 0 rg BT 500.31 357.60 Td (in ) Tj ET Q q 0 0 0 rg BT 511.92 357.60 Td (response ) Tj ET Q q 0 0 0 rg BT 553.45 357.60 Td (to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (relatively ) Tj ET Q q 0 0 0 rg BT 94.35 344.40 Td (minor ) Tj ET Q q 0 0 0 rg BT 123.44 344.40 Td (changes ) Tj ET Q q 0 0 0 rg BT 161.69 344.40 Td (in ) Tj ET Q q 0 0 0 rg BT 173.06 344.40 Td (supply ) Tj ET Q q 0 0 0 rg BT 205.21 344.40 Td (and ) Tj ET Q q 0 0 0 rg BT 223.91 344.40 Td (demand.Historically) Tj ET Q q 0 0 0 rg BT 318.20 344.40 Td (, ) Tj ET Q q 0 0 0 rg BT 323.76 344.40 Td (the ) Tj ET Q q 0 0 0 rg BT 340.02 344.40 Td (markets ) Tj ET Q q 0 0 0 rg BT 377.66 344.40 Td (for ) Tj ET Q q 0 0 0 rg BT 393.30 344.40 Td (oil, ) Tj ET Q q 0 0 0 rg BT 410.48 344.40 Td (gas, ) Tj ET Q q 0 0 0 rg BT 430.70 344.40 Td (and ) Tj ET Q q 0 0 0 rg BT 449.40 344.40 Td (NGLs ) Tj ET Q q 0 0 0 rg BT 479.11 344.40 Td (have ) Tj ET Q q 0 0 0 rg BT 502.69 344.40 Td (been ) Tj ET Q q 0 0 0 rg BT 526.27 344.40 Td (volatile, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (and ) Tj ET Q q 0 0 0 rg BT 68.97 331.20 Td (these ) Tj ET Q q 0 0 0 rg BT 94.66 331.20 Td (markets ) Tj ET Q q 0 0 0 rg BT 132.57 331.20 Td (will ) Tj ET Q q 0 0 0 rg BT 152.76 331.20 Td (likely ) Tj ET Q q 0 0 0 rg BT 180.90 331.20 Td (continue ) Tj ET Q q 0 0 0 rg BT 221.87 331.20 Td (to ) Tj ET Q q 0 0 0 rg BT 233.51 331.20 Td (be ) Tj ET Q q 0 0 0 rg BT 246.98 331.20 Td (volatile ) Tj ET Q q 0 0 0 rg BT 283.05 331.20 Td (in ) Tj ET Q q 0 0 0 rg BT 294.70 331.20 Td (the ) Tj ET Q q 0 0 0 rg BT 311.22 331.20 Td (future.) Tj ET Q q 0 0 0 rg BT 345.54 331.20 Td (The ) Tj ET Q q 0 0 0 rg BT 365.73 331.20 Td (prices ) Tj ET Q q 0 0 0 rg BT 395.08 331.20 Td (we ) Tj ET Q q 0 0 0 rg BT 410.99 331.20 Td (receive ) Tj ET Q q 0 0 0 rg BT 445.83 331.20 Td (for ) Tj ET Q q 0 0 0 rg BT 461.74 331.20 Td (our ) Tj ET Q q 0 0 0 rg BT 479.49 331.20 Td (production ) Tj ET Q q 0 0 0 rg BT 530.24 331.20 Td (depend ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (on ) Tj ET Q q 0 0 0 rg BT 63.23 318.00 Td (numerous ) Tj ET Q q 0 0 0 rg BT 108.85 318.00 Td (factors ) Tj ET Q q 0 0 0 rg BT 141.01 318.00 Td (beyond ) Tj ET Q q 0 0 0 rg BT 175.62 318.00 Td (our ) Tj ET Q q 0 0 0 rg BT 192.52 318.00 Td (control.Based ) Tj ET Q q 0 0 0 rg BT 261.04 318.00 Td (on ) Tj ET Q q 0 0 0 rg BT 274.28 318.00 Td (our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.17 318.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.17 318.00 Td ( ) Tj ET Q q 0 0 0 rg BT 315.40 318.00 Td (production, ) Tj ET Q q 0 0 0 rg BT 368.05 318.00 Td (a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.16 318.00 Td (10 ) Tj ET Q q 0 0 0 rg BT 388.39 318.00 Td (percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.76 318.00 Td ( ) Tj ET Q q 0 0 0 rg BT 422.99 318.00 Td (decrease ) Tj ET Q q 0 0 0 rg BT 463.08 318.00 Td (in ) Tj ET Q q 0 0 0 rg BT 473.87 318.00 Td (our ) Tj ET Q q 0 0 0 rg BT 490.77 318.00 Td (average ) Tj ET Q q 0 0 0 rg BT 527.19 318.00 Td (realized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (price ) Tj ET Q q 0 0 0 rg BT 73.84 304.80 Td (received ) Tj ET Q q 0 0 0 rg BT 112.95 304.80 Td (for ) Tj ET Q q 0 0 0 rg BT 127.63 304.80 Td (oil, ) Tj ET Q q 0 0 0 rg BT 143.85 304.80 Td (gas, ) Tj ET Q q 0 0 0 rg BT 163.12 304.80 Td (and ) Tj ET Q q 0 0 0 rg BT 180.86 304.80 Td (NGLs ) Tj ET Q q 0 0 0 rg BT 209.60 304.80 Td (would ) Tj ET Q q 0 0 0 rg BT 238.96 304.80 Td (have ) Tj ET Q q 0 0 0 rg BT 261.58 304.80 Td (reduced ) Tj ET Q q 0 0 0 rg BT 298.25 304.80 Td (our ) Tj ET Q q 0 0 0 rg BT 314.77 304.80 Td (oil, ) Tj ET Q q 0 0 0 rg BT 330.99 304.80 Td (gas, ) Tj ET Q q 0 0 0 rg BT 350.26 304.80 Td (and ) Tj ET Q q 0 0 0 rg BT 368.00 304.80 Td (NGL) Tj ET Q q 0 0 0 rg BT 390.20 304.80 Td ( ) Tj ET Q q 0 0 0 rg BT 392.05 304.80 Td (production ) Tj ET Q q 0 0 0 rg BT 441.57 304.80 Td (revenues ) Tj ET Q q 0 0 0 rg BT 482.51 304.80 Td (by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.37 304.80 Td ($127.1 ) Tj ET Q q 0 0 0 rg BT 527.48 304.80 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 559.26 304.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td ($58.6 ) Tj ET Q q 0 0 0 rg BT 77.50 291.60 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.28 291.60 Td (, ) Tj ET Q q 0 0 0 rg BT 114.78 291.60 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 133.41 291.60 Td ($34.2 ) Tj ET Q q 0 0 0 rg BT 160.91 291.60 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.69 291.60 Td (, ) Tj ET Q q 0 0 0 rg BT 198.19 291.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 250.62 291.60 Td (. ) Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (80) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 73.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (The fair values of our commodity derivative contracts are lar) Tj ET Q q 0 0 0 rg BT 353.66 734.40 Td (gely determined by estimates of the forward ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (curves of the relevant price indices. ) Tj ET Q q 0 0 0 rg BT 211.27 721.20 Td (At ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.02 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.46 721.20 Td (, a 10 percent increase and 10 percent decrease in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (forward curves associated with our commodity derivative instruments would have changed our net asset positions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (by the following amounts:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 657.1 m 403.5 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 657.1 m 490.5 657.1 l s BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 660.97 Td () Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 333.35 661.15 Td (10%Increase) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.00 660.97 Td () Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 419.15 661.15 Td (10%Decrease) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 646.97 Td () Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.70 647.15 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 632.97 Td (Gain/\(loss\):) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 618.97 Td (Oil derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.00 618.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.85 618.97 Td (\(151.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.30 618.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.00 618.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.55 618.97 Td (144.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 604.97 Td (Gas derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.00 604.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.85 604.97 Td (\(103.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.30 604.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.00 604.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.55 604.97 Td (103.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.00 590.97 Td (NGL derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.00 590.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.35 590.97 Td (\(15.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.30 590.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.00 590.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.05 590.97 Td (15.5) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 562.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 562.40 Td (e enter into commodity derivative contracts in order to reduce the impact of fluctuations in commodity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.20 Td (prices. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 150.18 549.20 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.34 549.20 Td ( of Part II, Item 8 of this report for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.00 Td (information about our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 227.39 536.00 Td ( derivative contracts) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 316.57 536.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.32 536.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 510.80 Td (Schedule of Contractual Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 485.60 Td (The following table summarizes our contractual obligations at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.14 485.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.59 485.60 Td (, for the periods specified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.40 Td (\(in millions\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 423.9 m 220.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 423.9 m 294.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 423.9 m 362.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 423.9 m 424.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 423.9 m 487.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 423.9 m 562.5 423.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 309.9 m 294.5 309.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 296.9 m 294.5 296.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 294.9 m 294.5 294.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 309.9 m 362.5 309.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 296.9 m 362.5 296.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 294.9 m 362.5 294.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 309.9 m 424.5 309.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 296.9 m 424.5 296.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 294.9 m 424.5 294.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 309.9 m 487.5 309.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 296.9 m 487.5 296.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 294.9 m 487.5 294.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 309.9 m 562.5 309.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 296.9 m 562.5 296.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 294.9 m 562.5 294.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 428.80 Td (Contractual Obligations) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 250.95 428.80 Td (Total) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.50 439.80 Td (Less than) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 320.55 428.80 Td (1 year) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 377.75 428.80 Td (1-3 years) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 440.25 428.80 Td (3-5 years) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 505.70 439.80 Td (More than) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 513.85 428.80 Td (5 years) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 413.77 Td (Long-term debt ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 124.48 418.76 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.00 413.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.25 413.77 Td (1,600.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.00 413.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.30 413.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.00 413.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.30 413.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 413.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.30 413.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.00 413.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.25 413.77 Td (1,600.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 399.77 Td (Interest payments ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 133.64 404.76 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.55 399.77 Td (843.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.50 399.77 Td (105.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.50 399.77 Td (203.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.50 399.77 Td (200.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 399.77 Td (334.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 385.77 Td (Delivery commitments ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 156.87 390.76 Td (\(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.25 385.77 Td (1,070.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.50 385.77 Td (112.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.50 385.77 Td (263.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.50 385.77 Td (247.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 385.77 Td (447.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 371.77 Td (Operating leases and contracts ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 189.83 376.76 Td (\(3\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.55 371.77 Td (142.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 371.77 Td (66.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 371.77 Td (27.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.00 371.77 Td (14.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 371.77 Td (34.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 357.77 Td (Derivative liability ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 139.14 362.76 Td (\(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.05 357.77 Td (31.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 357.77 Td (26.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.55 357.77 Td (4.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 357.77 Td (0.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 357.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 343.77 Td (Net Profits Plan) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 123.28 348.76 Td ( \(5\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.05 343.77 Td (59.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 343.77 Td (14.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 343.77 Td (21.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.00 343.77 Td (16.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.55 343.77 Td (6.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 328.82 Td (Asset retirement obligations) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 177.03 333.81 Td ( \(6\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.55 328.82 Td (121.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 328.82 Td (25.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.55 328.82 Td (9.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 328.82 Td (5.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 328.82 Td (80.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 313.77 Td (Other) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 78.05 318.76 Td ( \(7\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.05 313.77 Td (21.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.55 313.77 Td (4.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 313.77 Td (10.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.55 313.77 Td (6.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.55 313.77 Td (0.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 299.77 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.00 299.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.25 299.77 Td (3,890.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.00 299.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.50 299.77 Td (355.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.00 299.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.50 299.77 Td (541.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 299.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.50 299.77 Td (489.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.00 299.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.25 299.77 Td (2,504.3) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 271.20 Td (\(1\) Long-term debt consists of our Senior Notes and the outstanding balance under our long-term revolving credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 258.00 Td (facility) Tj ET Q q 0 0 0 rg BT 98.44 258.00 Td (, and assumes no principal repayment until the due dates of the instruments. ) Tj ET Q q 0 0 0 rg BT 437.33 258.00 Td (The actual payments under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 244.80 Td (our revolving credit facility may vary significantly) Tj ET Q q 0 0 0 rg BT 290.27 244.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 219.60 Td (\(2\) Interest payments on our Senior Notes are estimated assuming no principal repayment until the due dates of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 206.40 Td (instruments. No interest payments have been estimated on our credit facility due to its zero balance as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 193.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.44 193.20 Td (. However) Tj ET Q q 0 0 0 rg BT 202.57 193.20 Td (, commitment fees paid on the unused portion of the aggregate commitment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 180.00 Td (amount have been estimated through the credit facility maturity date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.92 180.00 Td (April12, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.39 180.00 Td (, and included in the table ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 166.80 Td (above. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 141.60 Td (\(3\) Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 133.99 141.60 Td (Note 6 Commitments and Contingencies) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.45 141.60 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 128.40 Td (discussion regarding our operating leases, contracts, and gathering, processing, and transportation through-put ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 115.20 Td (commitments.) Tj ET Q endstream endobj 163 0 obj <> endobj 164 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 67.72 734.40 Td (Amount shown represents only the liability portion of the marked-to-market value of our commodity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 721.20 Td (derivatives based on future market prices at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.56 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.00 721.20 Td (, and excludes estimated oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 537.38 721.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 708.00 Td (commodity derivative receipts. ) Tj ET Q q 0 0 0 rg BT 209.84 708.00 Td (This amount varies from the liability amounts presented on the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 694.80 Td (balance sheets, as those amounts are presented at fair value, which considers time value, volatility) Tj ET Q q 0 0 0 rg BT 498.28 694.80 Td (, and the risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 681.60 Td (of non-performance for us and for our counterparties. ) Tj ET Q q 0 0 0 rg BT 308.49 681.60 Td (The ultimate settlement amounts under our derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 668.40 Td (contracts are unknown, as they are subject to continuing market risk and commodity price volatility) Tj ET Q q 0 0 0 rg BT 505.64 668.40 Td (.Please ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 655.20 Td (refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 102.81 655.20 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.97 655.20 Td ( in Part II, Item 8 of this report for additional discussion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 642.00 Td (regarding our derivative contracts.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 67.72 616.80 Td (Amount shown represents undiscounted forecasted payments for the Net Profits Plan for the next six years. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 603.60 Td (Payments are expected to gradually decrease for the years beyond what are shown in this table and are not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 590.40 Td (included due to these payments being highly variable, as outlined below) Tj ET Q q 0 0 0 rg BT 384.68 590.40 Td (. ) Tj ET Q q 0 0 0 rg BT 392.73 590.40 Td (The amount recorded on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 577.20 Td (accompanying balance sheets reflects all future Net Profits Plan payments and the impact of discounting, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 564.00 Td (therefore dif) Tj ET Q q 0 0 0 rg BT 122.46 564.00 Td (fers from the amounts disclosed in this table. ) Tj ET Q q 0 0 0 rg BT 325.11 564.00 Td (The variability in the amount of payments will be a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 550.80 Td (direct reflection of commodity prices, production rates, capital expenditures, and operating costs in future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 537.60 Td (periods. Predicting the timing and amounts of payments associated with this liability is contingent upon ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 524.40 Td (estimates of appropriate discount factors, adjusting for risk and time value, and upon a number of factors we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 511.20 Td (cannot control. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 205.14 511.20 Td (Note 7 Compensation Plans ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.28 511.20 Td (and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 357.91 511.20 Td (Note 1) Tj ET Q q 0 0 0 rg BT 386.12 511.20 Td (1 - Fair V) Tj ET Q q 0 0 0 rg BT 428.59 511.20 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 483.48 511.20 Td (ements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.77 511.20 Td (in Part II, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 498.00 Td (Item 8 of this report for additional discussion regarding our Net Profits Plan liability) Tj ET Q q 0 0 0 rg BT 438.47 498.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 68.00 472.80 Td (Amount shown represents estimated future discounted abandonment costs. ) Tj ET Q q 0 0 0 rg BT 402.01 472.80 Td (These obligations are recorded as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 459.60 Td (liabilities on our accompanying balance sheet as of December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 389.75 459.60 Td (The ultimate settlement of these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 446.40 Td (obligations is unknown and can be impacted by federal and state regulations, as well as economic factors and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 433.20 Td (therefore the actual timing of abandonment costs may vary significantly) Tj ET Q q 0 0 0 rg BT 384.05 433.20 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 460.71 433.20 Td (Note 9 ) Tj ET Q q 0 0 0 rg BT 500.53 433.20 Td (Asset ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 68.00 420.00 Td (Retir) Tj ET Q q 0 0 0 rg BT 89.59 420.00 Td (ement Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.55 420.00 Td ( in Part II, Item 8 of this report for additional discussion regarding our asset retirement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 406.80 Td (obligations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 68.13 381.60 Td (The majority of the amount shown relates to the unfunded portion of our estimated pension liability of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.17 381.60 Td ($18.6 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 368.40 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.78 368.40 Td (, for which we have estimated the timing of future payments based on historical annual contribution ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 355.20 Td (amounts. ) Tj ET Q q 0 0 0 rg BT 113.33 355.20 Td (W) Tj ET Q q 0 0 0 rg BT 122.83 355.20 Td (e are expected to make contributions to the Pension Plan in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.85 355.20 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.85 355.20 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.51 355.20 Td ($4.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.29 355.20 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 330.00 Td (In addition to the amounts in the above table, we have committed to pay our portion of the development of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (infrastructure in our outside operated Eagle Ford shale program. ) Tj ET Q q 0 0 0 rg BT 337.85 316.80 Td (The system owners unanimously approved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (budgeted capital expenditures for 2014, of which we are committed to pay approximately $33.0 million for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (upcoming year) Tj ET Q q 0 0 0 rg BT 115.07 290.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 55.50 265.20 Td (Off-balance Sheet ) Tj ET Q q 0 0 0 rg BT 137.16 265.20 Td (Arrangements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 240.00 Td (As part of our ongoing business, we have not participated in transactions that generate relationships with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.80 Td (unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (purpose entities, which would have been established for the purpose of facilitating of) Tj ET Q q 0 0 0 rg BT 424.00 213.60 Td (f-balance sheet arrangements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (or other contractually narrow or limited purposes. ) Tj ET Q q 0 0 0 rg BT 273.91 200.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.80 200.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.24 200.40 Td (, we have not been involved in any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (unconsolidated special purpose entity transactions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 162.00 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 162.00 Td (e evaluate our transactions to determine if any variable interest entities exist. If it is determined that we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 148.80 Td (are the primary beneficiary of a variable interest entity) Tj ET Q q 0 0 0 rg BT 289.34 148.80 Td (, that entity is consolidated into our consolidated financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.60 Td (statements. ) Tj ET Q q 0 0 0 rg BT 104.08 135.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 135.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.41 135.60 Td (, all variable interest entities have been consolidated.) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (82) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Critical ) Tj ET Q q 0 0 0 rg BT 88.18 734.60 Td (Accounting Policies and Estimates) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (Our discussion of financial condition and results of operations is based upon the information reported in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 204.06 696.20 Td (The preparation of these consolidated financial statements in conformity with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (accounting principles generally accepted in the United States \(GAAP\) requires us to make assumptions and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (estimates that af) Tj ET Q q 0 0 0 rg BT 121.27 669.80 Td (fect the reported amounts of assets, liabilities, revenues, and expenses as well as the disclosure of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (contingent assets and liabilities as of the date of our financial statements. ) Tj ET Q q 0 0 0 rg BT 376.04 656.60 Td (W) Tj ET Q q 0 0 0 rg BT 385.54 656.60 Td (e base our assumptions and estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (on historical experience and various other sources that we believe to be reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 530.15 643.40 Td (Actual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.20 Td (results may dif) Tj ET Q q 0 0 0 rg BT 115.18 630.20 Td (fer from the estimates we calculate due to changes in circumstances, global economics and politics, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 617.00 Td (and general business conditions. ) Tj ET Q q 0 0 0 rg BT 197.25 617.00 Td (A) Tj ET Q q 0 0 0 rg BT 204.59 617.00 Td ( summary of our significant accounting policies is detailed in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 476.47 617.00 Td (Note 1 Summary ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 603.80 Td (of Significant ) Tj ET Q q 0 0 0 rg BT 111.52 603.80 Td (Accounting Policies ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.55 603.80 Td (in Part II, Item 8 of this report. ) Tj ET Q q 0 0 0 rg BT 343.18 603.80 Td (W) Tj ET Q q 0 0 0 rg BT 352.68 603.80 Td (e have outlined below those policies identified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.60 Td (as being critical to the understanding of our business and results of operations and that require the application of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.40 Td (significant management judgment. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 552.20 Td (Oil and gas r) Tj ET Q q 0 0 0 rg BT 143.96 552.20 Td (eserve quantities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 226.44 552.20 Td (Our estimated reserve quantities and future net cash flows are critical to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 539.00 Td (understanding of the value of our business. ) Tj ET Q q 0 0 0 rg BT 244.40 539.00 Td (They are used in comparative financial ratios and are the basis for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.80 Td (significant accounting estimates in our financial statements, including the calculations of depletion and impairment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.60 Td (of proved oil and gas properties and the estimate of our Net Profits Plan liability) Tj ET Q q 0 0 0 rg BT 402.43 512.60 Td (. Future cash inflows and future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.40 Td (production and development costs are determined by applying prices and costs, including transportation, quality ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.20 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 486.20 Td (ferentials, and basis dif) Tj ET Q q 0 0 0 rg BT 163.85 486.20 Td (ferentials, applicable to each period to the estimated quantities of proved reserves ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 473.00 Td (remaining to be produced as of the end of that period. Expected cash flows are discounted to present value using an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.80 Td (appropriate discount rate. For example, the standardized measure calculations require a 10 percent discount rate to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.60 Td (be applied. ) Tj ET Q q 0 0 0 rg BT 103.15 446.60 Td (Although reserve estimates are inherently imprecise, and estimates of new discoveries and undeveloped ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.40 Td (locations are more imprecise than those of established producing oil and gas properties, we make a considerable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.20 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 420.20 Td (fort in estimating our reserves, including using independent reserve engineering consultants. ) Tj ET Q q 0 0 0 rg BT 469.93 420.20 Td (W) Tj ET Q q 0 0 0 rg BT 479.43 420.20 Td (e expect that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 407.00 Td (periodic reserve estimates will change in the future as additional information becomes available and as commodity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.80 Td (prices and operating and capital costs change. ) Tj ET Q q 0 0 0 rg BT 256.58 393.80 Td (W) Tj ET Q q 0 0 0 rg BT 266.08 393.80 Td (e evaluate and estimate our proved reserves each year) Tj ET Q q 0 0 0 rg BT 502.24 393.80 Td (-end. For ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.60 Td (purposes of depletion and impairment, reserve quantities are adjusted in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 473.26 380.60 Td ( for the impact of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 367.40 Td (additions and dispositions. Changes in depletion or impairment calculations caused by changes in reserve quantities ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.20 Td (or net cash flows are recorded in the period the reserve estimates change. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 442.77 354.20 Td (Supplemental Oil and Gas ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 341.00 Td (Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.56 341.00 Td ( in Part II, Item 8 of this report.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 315.80 Td (The following table presents information about reserve changes from period to period due to items we do ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.60 Td (not control, such as price, and from changes due to production history and well performance. ) Tj ET Q q 0 0 0 rg BT 464.32 302.60 Td (These changes do not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.40 Td (require a capital expenditure on our part, but may have resulted from capital expenditures we incurred to develop ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.20 Td (other estimated proved reserves.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 239.70000000000005 m 303.5 239.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303.5 239.70000000000005 m 317.5 239.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 239.70000000000005 m 380.5 239.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 239.70000000000005 m 394.5 239.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 239.70000000000005 m 457.5 239.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 225.70000000000005 m 303.5 225.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 225.70000000000005 m 380.5 225.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 225.70000000000005 m 457.5 225.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 197.70000000000005 m 303.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 197.70000000000005 m 380.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 197.70000000000005 m 457.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 197.70000000000005 m 303.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 197.70000000000005 m 380.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 197.70000000000005 m 457.5 197.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 169.70000000000005 m 303.5 169.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 169.70000000000005 m 380.5 169.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 169.70000000000005 m 457.5 169.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 156.70000000000005 m 303.5 156.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 154.70000000000005 m 303.5 154.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 169.70000000000005 m 380.5 169.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 156.70000000000005 m 380.5 156.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 154.70000000000005 m 380.5 154.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 169.70000000000005 m 457.5 169.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 156.70000000000005 m 457.5 156.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 154.70000000000005 m 457.5 154.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 267.00 243.75 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 260.50 229.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 337.50 229.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 414.80 229.75 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 249.50 215.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 326.50 215.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 403.50 215.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 253.45 201.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 330.45 201.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 407.45 201.75 Td (Change) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 187.57 Td (Revisions resulting from price changes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.55 187.57 Td (0.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.35 187.57 Td (\(12.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 187.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.85 187.57 Td (\(4.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.30 187.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 173.57 Td (Revisions resulting from performance) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 220.09 178.56 Td ( \(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.55 173.57 Td (4.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.35 173.57 Td (\(15.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 173.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.55 173.57 Td (6.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 159.57 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.55 159.57 Td (5.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.35 159.57 Td (\(27.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 159.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.55 159.57 Td (1.9) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 144.20 Td (\(1\) Performance revisions include the removal of proved undeveloped reserves that are no longer in our development plan ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 132.20 Td (within five years. 201) Tj ET Q q 0 0 0 rg BT 157.33 132.20 Td (1 includes the impact of our conversion to three stream production reporting.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 107.00 Td (As previously noted, commodity prices are volatile, and estimates of reserves are inherently imprecise. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.80 Td (Consequently) Tj ET Q q 0 0 0 rg BT 109.78 93.80 Td (, we expect to continue experiencing these types of changes. Please refer to additional reserves ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.60 Td (discussion above under ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 155.40 80.60 Td (Overview of the Company) Tj ET Q q 0 0 0 rg BT 269.34 80.60 Td (. ) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following table reflects the estimated MMBOE change and percentage change to our total reported ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (reserve volumes from the described hypothetical changes:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 180.5 684.7 m 231.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 684.7 m 239.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 684.7 m 299.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 684.7 m 307.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 684.7 m 358.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 684.7 m 366.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 684.7 m 426.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 684.7 m 434.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 684.7 m 485.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 684.7 m 493.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 684.7 m 553.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 180.5 670.7 m 231.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 670.7 m 239.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 670.7 m 299.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 670.7 m 358.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 670.7 m 366.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 670.7 m 426.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 670.7 m 485.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 670.7 m 493.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 670.7 m 553.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 180.5 642.7 m 231.5 642.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 642.7 m 299.5 642.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 642.7 m 358.5 642.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 642.7 m 426.5 642.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 642.7 m 485.5 642.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 642.7 m 553.5 642.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 285.00 688.75 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 228.50 674.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 355.50 674.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 482.80 674.75 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 183.50 660.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 243.10 660.75 Td (Percentage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 310.50 660.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 370.10 660.75 Td (Percentage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 437.50 660.75 Td (MMBOE) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.10 660.75 Td (Percentage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 187.45 646.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 250.95 646.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 314.45 646.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 377.95 646.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 441.45 646.75 Td (Change) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 504.95 646.75 Td (Change) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 630.62 Td (10% decrease in SEC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 619.62 Td (pricing) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.85 619.62 Td (\(9.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.30 619.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.95 619.62 Td (\(2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.15 619.62 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.35 619.62 Td (\(11.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.30 619.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.95 619.62 Td (\(4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.15 619.62 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.85 619.62 Td (\(3.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 619.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.95 619.62 Td (\(2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.15 619.62 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 604.57 Td (10% decrease in proved) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 593.57 Td (undeveloped reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.35 593.62 Td (\(22.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.30 593.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.95 593.62 Td (\(5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.15 593.62 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.35 593.62 Td (\(12.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.30 593.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.95 593.62 Td (\(4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.15 593.62 Td (\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.85 593.62 Td (\(6.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 593.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 530.95 593.62 Td (\(3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.15 593.62 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 564.00 Td (The table above solely reflects the impact of a 10 percent decrease in SEC pricing or decrease in proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (undeveloped reserves and does not include additional impacts to our proved reserves that may result from our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (internal intent to drill hurdles. ) Tj ET Q q 0 0 0 rg BT 186.56 537.60 Td (Additional reserve information can be found in the reserve table and discussion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (included in Items 1 and 2 of Part I of this report, and in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 295.31 524.40 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.02 524.40 Td ( of Part II, Item 8 of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (this report.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 486.00 Td (Successful efforts method of accounting. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.00 486.00 Td (GAAP) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 298.95 486.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.70 486.00 Td (provides for two alternative methods for the oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (industry to use in accounting for oil and gas producing activities. ) Tj ET Q q 0 0 0 rg BT 340.94 472.80 Td (These two methods are generally known in our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (industry as the full cost method and the successful ef) Tj ET Q q 0 0 0 rg BT 282.27 459.60 Td (forts method. Both methods are widely used. ) Tj ET Q q 0 0 0 rg BT 487.68 459.60 Td (The methods are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 446.40 Td (ferent enough that in many circumstances the same set of facts will provide materially dif) Tj ET Q q 0 0 0 rg BT 455.86 446.40 Td (ferent financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (statement results within a given year) Tj ET Q q 0 0 0 rg BT 210.38 433.20 Td (. ) Tj ET Q q 0 0 0 rg BT 218.43 433.20 Td (W) Tj ET Q q 0 0 0 rg BT 227.93 433.20 Td (e have chosen the successful ef) Tj ET Q q 0 0 0 rg BT 364.86 433.20 Td (forts method of accounting for our oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (gas producing activities. ) Tj ET Q q 0 0 0 rg BT 162.12 420.00 Td (A) Tj ET Q q 0 0 0 rg BT 169.45 420.00 Td ( more detailed description is included in) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 346.02 420.00 Td ( Note 1 - Summary of Significant ) Tj ET Q q 0 0 0 rg BT 492.78 420.00 Td (Accounting ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (Policies ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.18 406.80 Td (of Part II, Item 8 of this report.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 381.60 Td (Revenue r) Tj ET Q q 0 0 0 rg BT 129.87 381.60 Td (ecognition. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.55 381.60 Td (Our revenue recognition policy is significant because revenue is a key component of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (our results of operations and our forward-looking statements contained in our analysis of liquidity and capital ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (resources. ) Tj ET Q q 0 0 0 rg BT 99.59 355.20 Td (W) Tj ET Q q 0 0 0 rg BT 109.09 355.20 Td (e derive our revenue primarily from the sale of produced oil, gas, and NGLs. Revenue is recognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (when our production is delivered to the purchaser) Tj ET Q q 0 0 0 rg BT 267.96 342.00 Td (, but payment is generally received between 30 and 90 days after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.80 Td (the date of production. No revenue is recognized unless it is determined that title to the product has transferred to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (purchaser) Tj ET Q q 0 0 0 rg BT 92.15 315.60 Td (. ) Tj ET Q q 0 0 0 rg BT 99.79 315.60 Td (At the end of each month, we make estimates of the amount of production delivered to the purchaser and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (the price we will receive. ) Tj ET Q q 0 0 0 rg BT 166.16 302.40 Td (W) Tj ET Q q 0 0 0 rg BT 175.66 302.40 Td (e use our knowledge of our properties, their historical performance, NYMEX, local ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.20 Td (spot market, and OPIS prices, and other factors as the basis for these estimates. ) Tj ET Q q 0 0 0 rg BT 403.54 289.20 Td (V) Tj ET Q q 0 0 0 rg BT 410.27 289.20 Td (ariances between our estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (and the actual amounts received are recorded in the month payment is received. ) Tj ET Q q 0 0 0 rg BT 405.22 276.00 Td (A) Tj ET Q q 0 0 0 rg BT 412.55 276.00 Td ( 10 percent change in our year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.80 Td (end revenue accrual would have impacted net income before tax by approximately $23 million in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.99 262.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.99 262.80 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 237.60 Td (Change in Net Pr) Tj ET Q q 0 0 0 rg BT 162.89 237.60 Td (ofits Plan Liability) Tj ET Q q 0 0 0 rg BT 244.79 237.60 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.04 237.60 Td (W) Tj ET Q q 0 0 0 rg BT 262.54 237.60 Td (e record the estimated liability of future payments for our Net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.40 Td (Profits Plan. ) Tj ET Q q 0 0 0 rg BT 109.69 224.40 Td (The estimated liability is calculated based on a number of assumptions, including estimates of proved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (reserves, estimated future capital, present value discount factors, pricing assumptions, and overall market ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (conditions. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 169.74 198.00 Td (Note 1) Tj ET Q q 0 0 0 rg BT 197.95 198.00 Td (1 - Fair V) Tj ET Q q 0 0 0 rg BT 240.42 198.00 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 295.31 198.00 Td (ements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.85 198.00 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (discussion) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 95.84 184.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 98.59 184.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 159.60 Td (Asset r) Tj ET Q q 0 0 0 rg BT 115.84 159.60 Td (etir) Tj ET Q q 0 0 0 rg BT 130.71 159.60 Td (ement obligations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.48 159.60 Td (W) Tj ET Q q 0 0 0 rg BT 226.98 159.60 Td (e are required to recognize an estimated liability for future costs associated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (with the abandonment of our oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 282.27 146.40 Td (W) Tj ET Q q 0 0 0 rg BT 291.77 146.40 Td (e base our estimate of the liability on our historical ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (experience in abandoning oil and gas wells projected into the future based on our current understanding of federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (and state regulatory requirements. Our present value calculations require us to estimate the economic lives of our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.80 Td (properties, assume what future inflation rates apply to external estimates, and determine what credit-adjusted risk-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.60 Td (free discount rate to use. ) Tj ET Q q 0 0 0 rg BT 163.12 93.60 Td (The impact to the accompanying statements of operations from these estimates is reflected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 80.40 Td (in our depreciation, depletion, and amortization calculations and occurs over the remaining life of our respective oil ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 67.20 Td (and gas properties. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 203.94 67.20 Td (Note 9 ) Tj ET Q q 0 0 0 rg BT 243.77 67.20 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 291.32 67.20 Td (ement Obligations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.04 67.20 Td (in Part II, Item 8 of this report for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 54.00 Td (additional discussion.) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (84) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Impairment of oil and gas pr) Tj ET Q q 0 0 0 rg BT 212.40 734.40 Td (operties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.09 734.40 Td (Our proved oil and gas properties are recorded at cost. ) Tj ET Q q 0 0 0 rg BT 500.24 734.40 Td (W) Tj ET Q q 0 0 0 rg BT 509.74 734.40 Td (e evaluate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (our proved properties for impairment when events or changes in circumstances indicate that a decline in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (recoverability of their carrying value may have occurred. ) Tj ET Q q 0 0 0 rg BT 306.35 708.00 Td (W) Tj ET Q q 0 0 0 rg BT 315.85 708.00 Td (e estimate the expected future cash flows of our oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (gas properties and compare these undiscounted cash flows to the carrying amount of the oil and gas properties to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (cash flows, we will write down the carrying amount of the oil and gas properties to fair value. ) Tj ET Q q 0 0 0 rg BT 467.99 668.40 Td (The factors used to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (determine fair value include, but are not limited to, estimates of reserves, future commodity prices, future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (production estimates, estimated future capital expenditures, and discount rates. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 616.80 Td (Unproved oil and gas properties are assessed periodically for impairment on a lease-by-lease basis based on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (the remaining lease terms, drilling results, commodity price outlook, and future capital allocations. ) Tj ET Q q 0 0 0 rg BT 489.27 603.60 Td (An impairment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (allowance is provided on unproven property when we determine that the property will not be developed or the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (carrying value will not be realized. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 274.48 577.20 Td (Impairment of Pr) Tj ET Q q 0 0 0 rg BT 350.46 577.20 Td (oved and Unpr) Tj ET Q q 0 0 0 rg BT 416.04 577.20 Td (oved Pr) Tj ET Q q 0 0 0 rg BT 450.15 577.20 Td (operties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.58 577.20 Td ( in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 499.64 577.20 Td (Note 1 - ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (Summary of Significant ) Tj ET Q q 0 0 0 rg BT 155.82 564.00 Td (Accounting Policies) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.10 564.00 Td ( in Part II, Item 8 of this report for impairment results. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 538.80 Td (Derivatives and Hedging.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.34 538.80 Td ( ) Tj ET Q q 0 0 0 rg BT 204.64 538.80 Td (W) Tj ET Q q 0 0 0 rg BT 214.14 538.80 Td (e periodically enter into commodity derivative contracts to manage our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (exposure to oil, gas and NGL) Tj ET Q q 0 0 0 rg BT 179.12 525.60 Td ( price volatility) Tj ET Q q 0 0 0 rg BT 245.61 525.60 Td (. ) Tj ET Q q 0 0 0 rg BT 253.66 525.60 Td (The accounting treatment for the change in fair value of a derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (instrument is dependent upon whether or not a derivative instrument is designated as a cash flow hedge. Prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (January 1, 201) Tj ET Q q 0 0 0 rg BT 114.05 499.20 Td (1, we designated our commodity derivative contracts as cash flow hedges, for which unrealized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (changes in fair value were recorded to ) Tj ET Q q 0 0 0 rg BT 220.11 486.00 Td (AOCIL, to the extent the hedges were ef) Tj ET Q q 0 0 0 rg BT 398.29 486.00 Td (fective. ) Tj ET Q q 0 0 0 rg BT 435.86 486.00 Td (As of January 1, 201) Tj ET Q q 0 0 0 rg BT 526.80 486.00 Td (1, we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (elected to de-designate all of our commodity derivative contracts that had been previously designated as cash flow ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (hedges at December31, 2010. ) Tj ET Q q 0 0 0 rg BT 188.07 459.60 Td (As a result, subsequent to December31, 2010, we recognize all gains and losses ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (from changes in commodity derivative fair values immediately in earnings rather than deferring any such amounts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (in ) Tj ET Q q 0 0 0 rg BT 60.70 433.20 Td (AOCIL. ) Tj ET Q q 0 0 0 rg BT 102.36 433.20 Td (The estimated fair value of our derivative instruments requires substantial judgment. ) Tj ET Q q 0 0 0 rg BT 479.41 433.20 Td (These values are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (based upon, among other things, whether or not the forecasted hedged transaction will occur) Tj ET Q q 0 0 0 rg BT 456.13 420.00 Td (, option pricing models, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (futures prices, volatility) Tj ET Q q 0 0 0 rg BT 154.06 406.80 Td (, time to maturity and credit risk. ) Tj ET Q q 0 0 0 rg BT 304.17 406.80 Td (The values we report in our financial statements change as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (these estimates are revised to reflect actual results, changes in market conditions or other factors, many of which are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (beyond our control. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 357.20 Td (Income taxes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.97 357.20 Td (W) Tj ET Q q 0 0 0 rg BT 161.47 357.20 Td (e provide for deferred income taxes on the dif) Tj ET Q q 0 0 0 rg BT 362.86 357.20 Td (ference between the tax basis of an asset or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.00 Td (liability and its carrying amount in our financial statements. ) Tj ET Q q 0 0 0 rg BT 318.32 344.00 Td (This dif) Tj ET Q q 0 0 0 rg BT 352.65 344.00 Td (ference will result in taxable income or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.80 Td (deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively) Tj ET Q q 0 0 0 rg BT 540.46 330.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 317.60 Td (Considerable judgment is required in predicting when these events may occur and whether recovery of an asset is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.40 Td (more likely than not. ) Tj ET Q q 0 0 0 rg BT 146.54 304.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 201.43 304.40 Td (, our federal and state income tax returns are generally not filed before the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.20 Td (consolidated financial statements are prepared. ) Tj ET Q q 0 0 0 rg BT 261.46 291.20 Td (Therefore, we estimate the tax basis of our assets and liabilities at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.00 Td (the end of each period as well as the ef) Tj ET Q q 0 0 0 rg BT 220.53 278.00 Td (fects of tax rate changes, tax credits, and net operating and capital loss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.80 Td (carryforwards and carrybacks. ) Tj ET Q q 0 0 0 rg BT 188.35 264.80 Td (Adjustments related to dif) Tj ET Q q 0 0 0 rg BT 302.71 264.80 Td (ferences between the estimates we use and actual amounts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 251.60 Td (we report are recorded in the periods in which we file our income tax returns. ) Tj ET Q q 0 0 0 rg BT 395.87 251.60 Td (These adjustments and changes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 238.40 Td (our estimates of asset recovery and liability settlement could have an impact on our results of operations. ) Tj ET Q q 0 0 0 rg BT 516.45 238.40 Td (A) Tj ET Q q 0 0 0 rg BT 523.79 238.40 Td ( one ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.20 Td (percent change in our ef) Tj ET Q q 0 0 0 rg BT 156.08 225.20 Td (fective tax rate would have changed our calculated income tax expense by approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.00 Td ($2.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.78 212.00 Td ( for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.99 212.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.43 212.00 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 186.80 Td (Accounting Matters) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 161.60 Td (Please refer to the section entitled ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 237.50 161.60 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 308.77 161.60 Td (Accounting Standar) Tj ET Q q 0 0 0 rg BT 396.04 161.60 Td (ds) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.82 161.60 Td ( under) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 433.62 161.60 Td ( Note 1 Summary of ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 148.40 Td (Significant ) Tj ET Q q 0 0 0 rg BT 100.21 148.40 Td (Accounting Policies) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.49 148.40 Td ( for additional information on the recent adoption of new authoritative accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.20 Td (guidance in Part II, Item 8 of this report.) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (85) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Envir) Tj ET Q q 0 0 0 rg BT 76.69 734.60 Td (onmental) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.40 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 709.40 Td (e believe we are in substantial compliance with environmental laws and regulations and do not currently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (anticipate that material future expenditures will be required under the existing regulatory framework. However) Tj ET Q q 0 0 0 rg BT 539.79 696.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (environmental laws and regulations are subject to frequent changes and we are unable to predict the impact that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (compliance with future laws or regulations, such as those currently being considered as discussed below) Tj ET Q q 0 0 0 rg BT 507.80 669.80 Td (, may have ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td (on future capital expenditures, liquidity) Tj ET Q q 0 0 0 rg BT 223.10 656.60 Td (, and results of operations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 631.40 Td (Hydraulic fracturing. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.21 631.40 Td (Hydraulic fracturing is an important and common practice that is used to stimulate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.20 Td (production of hydrocarbons from tight formations. For additional information about hydraulic fracturing and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 605.00 Td (related environmental matters, see ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 203.63 605.00 Td (Risk Factors Risks Related to Our Business Pr) Tj ET Q q 0 0 0 rg BT 424.73 605.00 Td (oposed federal and state ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 591.80 Td (legislation and r) Tj ET Q q 0 0 0 rg BT 122.32 591.80 Td (egulatory initiatives r) Tj ET Q q 0 0 0 rg BT 217.23 591.80 Td (elating to hydraulic fracturing could r) Tj ET Q q 0 0 0 rg BT 385.17 591.80 Td (esult in incr) Tj ET Q q 0 0 0 rg BT 437.31 591.80 Td (eased costs and additional ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 578.60 Td (operating r) Tj ET Q q 0 0 0 rg BT 99.40 578.60 Td (estrictions or delays.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 553.40 Td (Climate Change. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.05 553.40 Td (In December 2009, the EP) Tj ET Q q 0 0 0 rg BT 281.42 553.40 Td (A) Tj ET Q q 0 0 0 rg BT 288.76 553.40 Td ( determined that emissions of carbon dioxide, methane, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.20 Td (other ) Tj ET Q q 0 0 0 rg BT 78.20 540.20 Td (greenhouse gases) Tj ET Q q 0 0 0 rg BT 161.38 540.20 Td () Tj ET Q q 0 0 0 rg BT 164.22 540.20 Td ( present an endangerment to public health and the environment because emissions of such ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 527.00 Td (gases are, according to the EP) Tj ET Q q 0 0 0 rg BT 180.94 527.00 Td (A, contributing to warming of the earth) Tj ET Q q 0 0 0 rg BT 357.21 527.00 Td (s atmosphere and other climatic changes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.80 Td (Based on these findings, the EP) Tj ET Q q 0 0 0 rg BT 188.31 513.80 Td (A) Tj ET Q q 0 0 0 rg BT 195.64 513.80 Td ( has begun adopting and implementing regulations to restrict emissions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.60 Td (greenhouse gases under existing provisions of the CAA. ) Tj ET Q q 0 0 0 rg BT 302.76 500.60 Td (The EP) Tj ET Q q 0 0 0 rg BT 334.44 500.60 Td (A) Tj ET Q q 0 0 0 rg BT 341.77 500.60 Td ( recently adopted two sets of rules regulating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.40 Td (greenhouse gas emissions under the CAA, one of which requires a reduction in emissions of greenhouse gases from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.20 Td (motor vehicles and the other of which regulates emissions of greenhouse gases from certain lar) Tj ET Q q 0 0 0 rg BT 467.67 474.20 Td (ge stationary ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 461.00 Td (sources, ef) Tj ET Q q 0 0 0 rg BT 96.84 461.00 Td (fective January 2, 201) Tj ET Q q 0 0 0 rg BT 193.56 461.00 Td (1. ) Tj ET Q q 0 0 0 rg BT 207.11 461.00 Td (The EP) Tj ET Q q 0 0 0 rg BT 238.79 461.00 Td (A) Tj ET Q q 0 0 0 rg BT 246.13 461.00 Td ( has also adopted rules requiring the reporting of greenhouse gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.80 Td (emissions from specified lar) Tj ET Q q 0 0 0 rg BT 174.13 447.80 Td (ge greenhouse gas emission sources in the United States, including petroleum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.60 Td (refineries, on an annual basis, beginning in 201) Tj ET Q q 0 0 0 rg BT 257.63 434.60 Td (1 for emissions occurring after January 1, 2010, as well as certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.40 Td (onshore oil and natural gas production facilities, on an annual basis, beginning in 2012 for emissions occurring in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.20 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 408.20 Td (1.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 383.00 Td (In June 2013, President Obama announced a Climate ) Tj ET Q q 0 0 0 rg BT 321.53 383.00 Td (Action Plan designed to further reduce greenhouse gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 369.80 Td (emissions and prepare the nation for the physical ef) Tj ET Q q 0 0 0 rg BT 276.45 369.80 Td (fects that may occur as a result of climate change. ) Tj ET Q q 0 0 0 rg BT 501.04 369.80 Td (The Plan ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.60 Td (tar) Tj ET Q q 0 0 0 rg BT 61.40 356.60 Td (gets methane reductions from the oil and gas sector as part of a comprehensive interagency methane strategy) Tj ET Q q 0 0 0 rg BT 539.01 356.60 Td (. In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.40 Td (addition, President Obama directed the EP) Tj ET Q q 0 0 0 rg BT 235.94 343.40 Td (A) Tj ET Q q 0 0 0 rg BT 243.28 343.40 Td ( to issue stringent carbon standards for new fossil fuel-fired power ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.20 Td (plants. ) Tj ET Q q 0 0 0 rg BT 84.33 330.20 Td (The EP) Tj ET Q q 0 0 0 rg BT 116.01 330.20 Td (A) Tj ET Q q 0 0 0 rg BT 123.34 330.20 Td ( proposed new source performance standards in September 2013, which would require carbon ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 317.00 Td (capture and sequestration for coal-fired boilers and combined cycle technology for natural gas-fired boilers. ) Tj ET Q q 0 0 0 rg BT 529.34 317.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.80 Td (EP) Tj ET Q q 0 0 0 rg BT 61.83 303.80 Td (A) Tj ET Q q 0 0 0 rg BT 69.16 303.80 Td ( has stated that it intends to propose greenhouse gas standards for existing fossil fuel-fired power plants by June ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.60 Td (2014, finalize the standards by June 2015, and require plans by states to adopt the standards by 2016.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 265.40 Td (In addition, the United States Congress has from time to time considered adopting legislation to reduce ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 252.20 Td (emissions of greenhouse gases and almost one-half of the states have already taken legal measures to reduce ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 239.00 Td (emissions of greenhouse gases primarily through the planned development of greenhouse gas emission inventories ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.80 Td (and/or regional greenhouse gas cap and trade programs. Most of these cap and trade programs work by requiring ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.60 Td (major sources of emissions, such as electric power plants, or major producers of fuels, such as refineries and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 199.40 Td (processing plants, to acquire and surrender emission allowances. ) Tj ET Q q 0 0 0 rg BT 339.69 199.40 Td (The number of allowances available for purchase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 186.20 Td (is reduced each year in an ef) Tj ET Q q 0 0 0 rg BT 175.01 186.20 Td (fort to achieve the overall greenhouse gas emission reduction goal.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 161.00 Td (The adoption of legislation or regulatory programs to reduce emissions of greenhouse gases could require ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.80 Td (us to incur increased operating costs, such as costs to purchase and operate emissions control systems, to acquire ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.60 Td (emissions allowances, or comply with new regulatory or reporting requirements. ) Tj ET Q q 0 0 0 rg BT 409.55 134.60 Td (Any such legislation or regulatory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 121.40 Td (programs could also increase the cost of consuming, and thereby reduce demand for) Tj ET Q q 0 0 0 rg BT 419.46 121.40 Td (, the oil and natural gas we ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 108.20 Td (produce. Consequently) Tj ET Q q 0 0 0 rg BT 153.46 108.20 Td (, legislation and regulatory programs to reduce emissions of greenhouse gases could have an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 95.00 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 94.69 95.00 Td (fect on our business, financial condition, and results of operations. Finally) Tj ET Q q 0 0 0 rg BT 422.68 95.00 Td (, it should be noted that some ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 81.80 Td (scientists have concluded that increasing concentrations of greenhouse gases in the earth) Tj ET Q q 0 0 0 rg BT 442.50 81.80 Td (s atmosphere may produce ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 68.60 Td (climate changes that have significant physical ef) Tj ET Q q 0 0 0 rg BT 263.00 68.60 Td (fects, such as increased frequency and severity of storms, droughts, ) Tj ET Q endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (86) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (floods, and other climatic events. If any such ef) Tj ET Q q 0 0 0 rg BT 261.48 734.40 Td (fects were to occur) Tj ET Q q 0 0 0 rg BT 344.41 734.40 Td (, they could have an adverse ef) Tj ET Q q 0 0 0 rg BT 480.12 734.40 Td (fect on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (financial condition and results of operations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (In terms of opportunities, the regulation of greenhouse gas emissions and the introduction of alternative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (incentives, such as enhanced oil recovery) Tj ET Q q 0 0 0 rg BT 231.32 682.80 Td (, carbon sequestration, and low carbon fuel standards, could benefit us in a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (variety of ways. For example, although federal regulation and climate change legislation could reduce the overall ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (demand for the oil and natural gas that we produce, the relative demand for natural gas may increase because the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (burning of natural gas produces lower levels of emissions than other readily available fossil fuels such as oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (coal. In addition, if renewable resources, such as wind or solar power become more prevalent, natural gas-fired ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (electric plants may provide an alternative backup to maintain consistent electricity supply) Tj ET Q q 0 0 0 rg BT 443.63 616.80 Td (. ) Tj ET Q q 0 0 0 rg BT 451.27 616.80 Td (Also, if states adopt low-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (carbon fuel standards, natural gas may become a more attractive transportation fuel. ) Tj ET Q q 0 0 0 rg BT 424.16 603.60 Td (Approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.51 603.60 Td (51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.51 603.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.89 603.60 Td (55 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.37 590.40 Td ( of our production on an BOE basis in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.54 590.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.54 590.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.92 590.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.92 590.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 375.85 590.40 Td (, was natural gas. Market-based ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (incentives for the capture and storage of carbon dioxide in under) Tj ET Q q 0 0 0 rg BT 333.86 577.20 Td (ground reservoirs, particularly in oil and natural ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (gas reservoirs, could also benefit us through the potential to obtain greenhouse gas emission allowances or of) Tj ET Q q 0 0 0 rg BT 530.32 564.00 Td (fsets ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (from or government incentives for the sequestration of carbon dioxide. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td ( Non-GAAP) Tj ET Q q 0 0 0 rg BT 106.53 525.60 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 191.88 525.60 Td (es) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 499.20 Td (EBITDAX represents income \(loss\) before interest expense, interest income, income taxes, depreciation, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (depletion, amortization, and accretion, exploration expense, property impairments, non-cash stock compensation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (expense, derivative gains and losses net of cash settlements, change in the Net Profits Plan liability) Tj ET Q q 0 0 0 rg BT 484.60 472.80 Td (, and gains and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (losses on divestitures. EBITDAX excludes certain items that we believe af) Tj ET Q q 0 0 0 rg BT 380.93 459.60 Td (fect the comparability of operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (results and can exclude items that are generally one-time in nature or whose timing and/or amount cannot be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td (reasonably estimated. EBITDAX is a non-GAAP) Tj ET Q q 0 0 0 rg BT 269.24 433.20 Td ( measure that is presented because we believe that it provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (useful additional information to investors and analysts, as a performance measure, for analysis of our ability to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (internally generate funds for exploration, development, acquisitions, and to service debt. ) Tj ET Q q 0 0 0 rg BT 444.46 406.80 Td (W) Tj ET Q q 0 0 0 rg BT 453.96 406.80 Td (e are also subject to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (financial covenant under our credit facility based on our debt to EBITDAX ratio. In addition, EBITDAX is widely ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (used by professional research analysts and others in the valuation, comparison, and investment recommendations of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 367.20 Td (companies in the oil and gas exploration and production industry) Tj ET Q q 0 0 0 rg BT 334.92 367.20 Td (, and many investors use the published research of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.00 Td (industry research analysts in making investment decisions. EBITDAX should not be considered in isolation or as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 340.80 Td (substitute for net income \(loss\), income \(loss\) from operations, net cash provided by operating activities, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 327.60 Td (profitability or liquidity measures prepared under GAAP) Tj ET Q q 0 0 0 rg BT 298.67 327.60 Td (. Because EBITDAX excludes some, but not all items that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 314.40 Td (af) Tj ET Q q 0 0 0 rg BT 58.35 314.40 Td (fect net income \(loss\) and may vary among companies, the EBITDAX amounts presented may not be comparable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.20 Td (to similar metrics of other companies. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 274.80 Td ( ) Tj ET Q endstream endobj 175 0 obj <> endobj 176 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 741.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 741.40 Td (The following table provides reconciliations of our net income \(loss\) and net cash provided by operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (activities to EBITDAX for the periods presented: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 690.7 m 423.5 690.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 690.7 m 427.5 690.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 690.7 m 492.5 690.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 690.7 m 496.5 690.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 690.7 m 562.5 690.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 675.7 m 423.5 675.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 675.7 m 492.5 675.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 675.7 m 562.5 675.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 455.70000000000005 m 423.5 455.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 440.70000000000005 m 423.5 440.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 455.70000000000005 m 492.5 455.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 440.70000000000005 m 492.5 440.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 455.70000000000005 m 562.5 455.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 440.70000000000005 m 562.5 440.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 290.70000000000005 m 423.5 290.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 276.70000000000005 m 423.5 276.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 274.70000000000005 m 423.5 274.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 290.70000000000005 m 492.5 290.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 276.70000000000005 m 492.5 276.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 274.70000000000005 m 492.5 274.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 290.70000000000005 m 562.5 290.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 276.70000000000005 m 562.5 276.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 274.70000000000005 m 562.5 274.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 378.50 695.60 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.50 680.60 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 448.50 680.60 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 518.30 680.60 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.50 665.60 Td (\(in thousands\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 650.60 Td (Net income \(loss\) \(GAAP\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.00 650.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 650.57 Td (170,935) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.00 650.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 650.57 Td (\(54,249) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 650.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.00 650.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 650.57 Td (215,416) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 635.57 Td (Interest expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 635.57 Td (89,711) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 635.57 Td (63,720) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 635.57 Td (45,849) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 620.57 Td (Interest income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.60 620.57 Td (\(67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 620.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.10 620.57 Td (\(220) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 620.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.10 620.57 Td (\(466) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 620.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 605.57 Td (Income tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 605.57 Td (107,676) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 605.57 Td (\(29,268) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 605.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 605.57 Td (123,585) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 590.57 Td (Depletion, depreciation, amortization, and asset retirement) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 579.57 Td (obligation liability accretion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 580.62 Td (822,872) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.50 580.62 Td (727,877) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 580.62 Td (511,103) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 565.57 Td (Exploration) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 565.57 Td (65,888) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 565.57 Td (81,809) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 565.57 Td (46,776) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 550.57 Td (Impairment of proved properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 550.57 Td (172,641) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.50 550.57 Td (208,923) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 550.57 Td (219,037) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 535.57 Td (Abandonment and impairment of unproved properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 535.57 Td (46,105) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 535.57 Td (16,342) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 535.57 Td (7,367) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 520.57 Td (Stock-based compensation expense ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 216.54 525.56 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 520.57 Td (32,347) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 520.57 Td (30,185) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 520.57 Td (26,824) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 505.57 Td (Derivative gain) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.85 505.57 Td (\(3,080) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 505.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 505.57 Td (\(55,630) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 505.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 505.57 Td (\(37,086) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 505.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 490.57 Td (Derivative cash settlement gain \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 490.57 Td (22,062) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 490.57 Td (44,264) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 490.57 Td (\(25,671) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 490.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 475.57 Td (Change in Net Profits Plan liability) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.35 475.57 Td (\(21,842) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 475.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 475.57 Td (\(28,904) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 475.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 475.57 Td (\(25,477) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 475.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 460.57 Td (\(Gain\) loss on divestiture activity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.35 460.57 Td (\(27,974) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 460.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 460.57 Td (27,018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.85 460.57 Td (\(220,676) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 460.57 Td (\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 445.60 Td (EBITDAX \(Non-GAAP\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.25 445.57 Td (1,477,274) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.25 445.57 Td (1,031,867) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 445.57 Td (886,581) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 430.57 Td (Interest expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.35 430.57 Td (\(89,711) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 430.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 430.57 Td (\(63,720) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 430.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 430.57 Td (\(45,849) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 430.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 415.57 Td (Interest income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.30 415.57 Td (67) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.80 415.57 Td (220) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 541.80 415.57 Td (466) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 400.57 Td (Income tax \(expense\) benefit) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.85 400.57 Td (\(107,676) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 400.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 400.57 Td (29,268) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.85 400.57 Td (\(123,585) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 400.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 385.57 Td (Exploration) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.35 385.57 Td (\(65,888) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 385.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 385.57 Td (\(81,809) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 385.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 385.57 Td (\(46,776) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 385.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 370.57 Td (Exploratory dry hole expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.55 370.57 Td (5,846) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 370.57 Td (20,861) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 541.80 370.57 Td (277) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 355.57 Td (Amortization of debt discount and deferred financing costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.55 355.57 Td (5,390) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.55 355.57 Td (6,769) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 355.57 Td (18,299) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 340.57 Td (Deferred income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 340.57 Td (105,555) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.35 340.57 Td (\(29,638) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 340.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 340.57 Td (123,789) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 325.57 Td (Plugging and abandonment) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.85 325.57 Td (\(9,946) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 325.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.85 325.57 Td (\(2,856) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 325.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.85 325.57 Td (\(5,849) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 325.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 310.57 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.55 310.57 Td (2,775) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.80 310.57 Td (527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.85 310.57 Td (\(6,027) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 310.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 295.57 Td (Changes in current assets and liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.00 295.57 Td (14,828) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 295.57 Td (10,480) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 295.57 Td (\(40,794) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 295.57 Td (\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 280.60 Td (Net cash provided by operating activities \(GAAP\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.00 280.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.25 280.57 Td (1,338,514) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.00 280.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.50 280.57 Td (921,969) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.00 280.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 280.57 Td (760,532) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 264.20 Td (\(1\) Stock-based compensation expense is a component of exploration expense and general and administrative expense on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 252.20 Td (accompanying statements of operations. ) Tj ET Q q 0 0 0 rg BT 215.33 252.20 Td (Therefore, the exploration line items shown in the reconciliation above will vary from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 240.20 Td (the amount shown on the accompanying statements of operations for the component of stock-based compensation expense ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 228.20 Td (recorded to exploration. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 203.00 Td (ITEM 7A. ) Tj ET Q q 0 0 0 rg BT 122.00 203.00 Td (QUANTIT) Tj ET Q q 0 0 0 rg BT 172.53 203.00 Td (A) Tj ET Q q 0 0 0 rg BT 179.65 203.00 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 208.69 203.00 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 277.86 203.00 Td (A) Tj ET Q q 0 0 0 rg BT 284.99 203.00 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 394.42 203.00 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 433.34 203.00 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 485.39 203.00 Td ( RISK) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 177.80 Td (The information required by this item is provided under the captions ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 389.96 177.80 Td (Commodity Price Risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.68 177.80 Td (and) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 507.57 177.80 Td ( Inter) Tj ET Q q 0 0 0 rg BT 531.29 177.80 Td (est ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 164.60 Td (Rate Risk) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.85 164.60 Td ( in Item 7 above, as well as under the section entitled ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 327.97 164.60 Td (Summary of Oil, Gas, and NGL) Tj ET Q q 0 0 0 rg BT 466.81 164.60 Td ( Derivative ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 151.40 Td (Contracts in Place) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.49 151.40 Td ( under ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 163.03 151.40 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.20 151.40 Td ( in Part II, Item 8 of this report and is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.20 Td (incorporated herein by reference.) Tj ET Q endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (88) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 734.60 Td (ITEM 8. ) Tj ET Q q 0 0 0 rg BT 121.50 734.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 183.23 734.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 198.62 734.60 Td (A) Tj ET Q q 0 0 0 rg BT 205.75 734.60 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 261.68 734.60 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 362.62 734.60 Td (AR) Tj ET Q q 0 0 0 rg BT 378.12 734.60 Td (Y) Tj ET Q q 0 0 0 rg BT 385.66 734.60 Td ( DA) Tj ET Q q 0 0 0 rg BT 403.48 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 410.00 734.60 Td (A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.35 Td (REPOR) Tj ET Q q 0 0 0 rg BT 84.79 709.35 Td (T) Tj ET Q q 0 0 0 rg BT 91.31 709.35 Td ( OF INDEPENDENT) Tj ET Q q 0 0 0 rg BT 187.05 709.35 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 301.03 709.35 Td (ACCOUNTING FIRM) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.95 Td (The Board of Directors and Stockholders of SM Ener) Tj ET Q q 0 0 0 rg BT 285.02 682.95 Td (gy Company and subsidiaries) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.55 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 656.55 Td (e have audited the accompanying consolidated balance sheet of SM Ener) Tj ET Q q 0 0 0 rg BT 380.02 656.55 Td (gy Company and subsidiaries as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 643.40 Td (, and the related consolidated statements of operations, comprehensive income \(loss\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.15 Td (stockholders) Tj ET Q q 0 0 0 rg BT 108.45 630.15 Td ( equity) Tj ET Q q 0 0 0 rg BT 137.98 630.15 Td (, and cash flows for the year then ended. ) Tj ET Q q 0 0 0 rg BT 321.05 630.15 Td (These financial statements are the responsibility of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.95 Td (Company's management. Our responsibility is to express an opinion on these financial statements based on our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (audit.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.35 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 577.35 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 407.43 577.35 Td (Accounting Oversight Board ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.20 Td (\(United States\). ) Tj ET Q q 0 0 0 rg BT 121.59 564.20 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 551.00 Td (whether the financial statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 344.43 551.00 Td (An audit includes examining, on a test basis, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.80 Td (evidence supporting the amounts and disclosures in the financial statements. ) Tj ET Q q 0 0 0 rg BT 388.17 537.80 Td (An audit also includes assessing the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.60 Td (accounting principles used and significant estimates made by management, as well as evaluating the overall ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.40 Td (financial statement presentation. ) Tj ET Q q 0 0 0 rg BT 195.19 511.40 Td (W) Tj ET Q q 0 0 0 rg BT 204.69 511.40 Td (e believe that our audit provides a reasonable basis for our opinion.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 485.00 Td (In our opinion, the financial statements referredto above present fairly) Tj ET Q q 0 0 0 rg BT 360.53 485.00 Td (, in all material respects, the consolidated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.80 Td (financial position of SM Ener) Tj ET Q q 0 0 0 rg BT 180.56 471.80 Td (gy Company and subsidiaries at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.84 471.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.28 471.80 Td (, and the consolidated results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.60 Td (its operations and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.40 Td (principles.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 419.00 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 419.00 Td (e also have audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 399.18 419.00 Td (Accounting Oversight Board ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.80 Td (\(United States\),SM Ener) Tj ET Q q 0 0 0 rg BT 161.00 405.80 Td (gy Company) Tj ET Q q 0 0 0 rg BT 220.59 405.80 Td (s internal control over financial reporting as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.29 405.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.73 405.80 Td (, based on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.60 Td (criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 509.86 392.60 Td (ganizations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.40 Td (of the ) Tj ET Q q 0 0 0 rg BT 77.90 379.40 Td (T) Tj ET Q q 0 0 0 rg BT 84.24 379.40 Td (readway Commission \(1992 framework\) and our report dated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.32 379.40 Td (February19, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.28 379.40 Td ( expressed an unqualified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.20 Td (opinion thereon.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.80 Td (/s/ Ernst & ) Tj ET Q q 0 0 0 rg BT 100.01 339.80 Td (Y) Tj ET Q q 0 0 0 rg BT 106.85 339.80 Td (oung LLP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.40 Td (Denver) Tj ET Q q 0 0 0 rg BT 81.93 313.40 Td (, Colorado) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.20 Td (February19, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 300.20 Td ( ) Tj ET Q endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (89) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (REPOR) Tj ET Q q 0 0 0 rg BT 84.79 734.40 Td (T) Tj ET Q q 0 0 0 rg BT 91.31 734.40 Td ( OF INDEPENDENT) Tj ET Q q 0 0 0 rg BT 187.05 734.40 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 301.03 734.40 Td (ACCOUNTING FIRM) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 709.20 Td (o the Board of Directors and Stockholders of SM Ener) Tj ET Q q 0 0 0 rg BT 295.56 709.20 Td (gy Company and Subsidiaries) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Denver) Tj ET Q q 0 0 0 rg BT 81.93 696.00 Td (, Colorado) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 684.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 670.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 670.80 Td (e have audited the accompanying consolidated balance sheet of SM Ener) Tj ET Q q 0 0 0 rg BT 380.02 670.80 Td (gy Company and subsidiaries \(the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.60 Td (Company\) as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.78 657.60 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.22 657.60 Td (, and the related consolidated statements of operations, comprehensive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (income \(loss\), stockholders) Tj ET Q q 0 0 0 rg BT 173.52 644.40 Td ( equity) Tj ET Q q 0 0 0 rg BT 203.05 644.40 Td (, and cash flows for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.41 644.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.85 644.40 Td (, and 201) Tj ET Q q 0 0 0 rg BT 490.08 644.40 Td (1. ) Tj ET Q q 0 0 0 rg BT 503.63 644.40 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (financial statements are the responsibility of the Company) Tj ET Q q 0 0 0 rg BT 309.35 631.20 Td (s management. Our responsibility is to express an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (opinion on these financial statements based on our audits.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 592.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 592.80 Td (e conducted our audits in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 411.71 592.80 Td (Accounting Oversight Board ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (\(United States\). ) Tj ET Q q 0 0 0 rg BT 124.34 579.60 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (whether the financial statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 347.18 566.40 Td (An audit includes examining, on a test basis, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (evidence supporting the amounts and disclosures in the financial statements. ) Tj ET Q q 0 0 0 rg BT 390.92 553.20 Td (An audit also includes assessing the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (accounting principles used and significant estimates made by management, as well as evaluating the overall ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (financial statement presentation. ) Tj ET Q q 0 0 0 rg BT 197.94 526.80 Td (W) Tj ET Q q 0 0 0 rg BT 207.44 526.80 Td (e believe that our audits provide a reasonable basis for our opinion.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (In our opinion, such 2012 and 201) Tj ET Q q 0 0 0 rg BT 200.83 501.60 Td (1 consolidated financial statements present fairly) Tj ET Q q 0 0 0 rg BT 415.45 501.60 Td (, in all material respects, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (financial position of SM Ener) Tj ET Q q 0 0 0 rg BT 180.56 488.40 Td (gy Company and subsidiaries as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.98 488.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.42 488.40 Td (, and the results of their ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (operations and their cash flows for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 276.34 475.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.78 475.20 Td (, and 201) Tj ET Q q 0 0 0 rg BT 403.00 475.20 Td (1, in conformity with accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 281.53 462.00 Td (America.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (As disclosed in Notes 1 and 10 to the consolidated financial statements, the accompanying 2012 consolidated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (financial statements give retrospective ef) Tj ET Q q 0 0 0 rg BT 230.00 423.60 Td (fect to new disclosure requirements regarding information related to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (of) Tj ET Q q 0 0 0 rg BT 58.96 410.40 Td (fsetting of derivative assets and liabilities.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 372.00 Td (/s/ DELOITTE & ) Tj ET Q q 0 0 0 rg BT 130.15 372.00 Td (T) Tj ET Q q 0 0 0 rg BT 136.67 372.00 Td (OUCHE LLP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 346.80 Td (Denver) Tj ET Q q 0 0 0 rg BT 81.93 346.80 Td (, Colorado) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 333.60 Td (February21, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 333.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 307.20 Td (\(February 19, 2014 as to the disclosures regarding of) Tj ET Q q 0 0 0 rg BT 282.27 307.20 Td (fsetting of derivative assets and liabilities as of December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.00 Td (2012 in Notes 1 and 10\)) Tj ET Q endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (90) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.85 735.25 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 260.76 735.25 Td ( COMP) Tj ET Q q 0 0 0 rg BT 293.07 735.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 314.36 735.25 Td ( ) Tj ET Q q 0 0 0 rg BT 316.31 735.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 219.40 723.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 723.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.05 711.25 Td (\(in thousands, except shar) Tj ET Q q 0 0 0 rg BT 338.00 711.25 Td (e amounts\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 690.75 m 457.5 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 690.75 m 561.5 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 690.75 m 457.5 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 680.75 m 457.5 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457.5 690.75 m 461.5 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 690.75 m 561.5 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 680.75 m 561.5 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 600.75 m 457.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 600.75 m 561.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 600.75 m 457.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 590.75 m 457.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 600.75 m 561.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 590.75 m 561.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 471.75 m 457.5 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 471.75 m 561.5 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 471.75 m 457.5 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 461.75 m 457.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 471.75 m 561.5 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 461.75 m 561.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 411.75 m 457.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 411.75 m 561.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 411.75 m 457.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 401.75 m 457.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 411.75 m 561.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 401.75 m 561.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 401.75 m 457.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 392.75 m 457.5 392.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 390.75 m 457.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 401.75 m 561.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 392.75 m 561.5 392.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 390.75 m 561.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 333.75 m 457.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 333.75 m 561.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 333.75 m 457.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 323.75 m 457.5 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 333.75 m 561.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 323.75 m 561.5 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 225.75 m 457.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 225.75 m 561.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 225.75 m 457.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 215.75 m 457.5 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 225.75 m 561.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 215.75 m 561.5 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 110.75 m 457.5 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 110.75 m 561.5 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 110.75 m 457.5 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 100.75 m 457.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 110.75 m 561.5 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 100.75 m 561.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 100.75 m 457.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 91.75 m 457.5 91.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 89.75 m 457.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 100.75 m 561.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 91.75 m 561.5 91.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 89.75 m 561.5 89.75 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.75 692.88 Td (December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.00 682.88 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 503.00 682.88 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 187.30 672.88 Td ( ASSETS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 662.75 Td (Current assets:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 652.75 Td (Cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 652.75 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 652.75 Td (282,248) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 652.75 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 652.75 Td (5,926) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 642.75 Td (Accounts receivable \(note 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 642.75 Td (318,371) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 642.75 Td (254,805) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 632.75 Td (Refundable income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 632.75 Td (4,630) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 632.75 Td (3,364) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 622.75 Td (Prepaid expenses and other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 622.75 Td (9,944) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 622.75 Td (30,017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 612.75 Td (Derivative asset) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 612.75 Td (21,559) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 612.75 Td (37,873) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 602.75 Td (Deferred income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 602.75 Td (10,749) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 602.75 Td (8,579) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 592.75 Td (Total current assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 592.75 Td (647,501) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 592.75 Td (340,564) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 574.75 Td (Property and equipment \(successful efforts method\):) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 564.75 Td (Land) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 564.75 Td (1,857) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 564.75 Td (1,845) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 554.75 Td (Proved oil and gas properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 554.75 Td (5,637,462) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 554.75 Td (5,401,684) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 544.75 Td (Less - accumulated depletion, depreciation, and amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.60 544.75 Td (\(2,583,698) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.30 544.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.60 544.75 Td (\(2,376,170) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 544.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 534.75 Td (Unproved oil and gas properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 534.75 Td (271,100) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 534.75 Td (175,287) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 524.75 Td (Wells in progress) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 524.75 Td (279,654) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 524.75 Td (273,928) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 514.75 Td (Materials inventory, at lower of cost or market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 514.75 Td (15,950) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 514.75 Td (13,444) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 504.70 Td (Oil and gas properties held for sale, net of accumulated depletion, depreciation and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 496.70 Td (amortization of $7,390 in 2013 and $20,676 in 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 497.00 Td (19,072) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 497.00 Td (33,620) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 484.00 Td (Other property and equipment, net of accumulated depreciation of $28,775 in 2013 and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 476.00 Td ($22,442 in 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 476.00 Td (218,395) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 476.00 Td (153,559) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 463.75 Td (Total property and equipment, net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 463.75 Td (3,859,792) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 463.75 Td (3,677,197) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 443.75 Td (Noncurrent assets:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 433.75 Td (Derivative asset) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 433.75 Td (30,951) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 433.75 Td (16,466) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 423.75 Td (Restricted cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 423.75 Td (96,713) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 423.75 Td (86,773) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 413.75 Td (Other noncurrent assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 413.75 Td (70,208) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 413.75 Td (78,529) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 403.75 Td (Total other noncurrent assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 403.75 Td (197,872) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 403.75 Td (181,768) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 393.88 Td (Total Assets) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.00 393.88 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.30 393.88 Td (4,705,165) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 393.88 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.30 393.88 Td (4,199,529) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 116.70 375.88 Td (LIABILITIES AND STOCKHOLDERS EQUITY) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 365.75 Td (Current liabilities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 355.75 Td (Accounts payable and accrued expenses \(note 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.00 355.75 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 355.75 Td (606,751) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 355.75 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 355.75 Td (525,627) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 345.75 Td (Derivative liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 345.75 Td (26,380) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 345.75 Td (8,999) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 335.75 Td (Other current liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 335.75 Td (6,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 335.75 Td (6,920) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 325.75 Td (Total current liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 325.75 Td (639,131) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 325.75 Td (541,546) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 307.75 Td (Noncurrent liabilities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 297.75 Td (Revolving credit facility) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.30 297.75 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 297.75 Td (340,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 287.75 Td (Senior Notes \(note 5\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 287.75 Td (1,600,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 287.75 Td (1,100,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 277.75 Td (Asset retirement obligation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 277.75 Td (115,659) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 277.75 Td (112,912) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 267.75 Td (Asset retirement obligation associated with oil and gas properties held for sale) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 267.75 Td (3,033) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 267.75 Td (1,393) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 257.75 Td (Net Profits Plan liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 257.75 Td (56,985) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 257.75 Td (78,827) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 247.75 Td (Deferred income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 247.75 Td (650,125) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 247.75 Td (537,383) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 237.75 Td (Derivative liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.30 237.75 Td (4,640) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 237.75 Td (6,645) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 227.75 Td (Other noncurrent liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 227.75 Td (28,771) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 227.75 Td (66,357) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 217.75 Td (Total noncurrent liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 217.75 Td (2,459,213) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 217.75 Td (2,243,517) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 199.75 Td (Commitments and contingencies \(note 6\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 181.75 Td (Stockholders' equity:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 171.00 Td (Common stock, $0.01 par value - authorized: 200,000,000 shares; issued: 67,078,853 shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 163.00 Td (in 2013 and 66,245,816 shares in 2012; outstanding, net of treasury shares: 67,056,441) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 155.00 Td (shares in 2013 and 66,195,235 shares in 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.30 155.00 Td (671) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 546.30 155.00 Td (662) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 142.75 Td (Additional paid-in capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.30 142.75 Td (257,720) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 142.75 Td (233,642) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 132.75 Td (Treasury stock, at cost: 22,412 shares in 2013 and 50,581 shares in 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.60 132.75 Td (\(823) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.30 132.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 132.75 Td (\(1,221) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 132.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 122.75 Td (Retained earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 122.75 Td (1,354,669) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 122.75 Td (1,190,397) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 112.75 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.60 112.75 Td (\(5,416) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.30 112.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 112.75 Td (\(9,014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 112.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 64.00 102.75 Td (Total stockholders' equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.30 102.75 Td (1,606,821) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.30 102.75 Td (1,414,466) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 92.88 Td (Total Liabilities and Stockholders' Equity) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.00 92.88 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.30 92.88 Td (4,705,165) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.00 92.88 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.30 92.88 Td (4,199,529) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 148.80 80.45 Td (The accompanying notes are an integral part of these consolidated financial statements. ) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (91) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.85 735.25 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 260.76 735.25 Td ( COMP) Tj ET Q q 0 0 0 rg BT 293.07 735.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 314.36 735.25 Td ( ) Tj ET Q q 0 0 0 rg BT 316.31 735.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 189.15 723.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 723.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 723.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 723.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 723.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 723.25 Td (TIONS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 218.65 711.25 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 325.14 711.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 346.36 711.25 Td (e amounts\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 676.75 m 407.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 676.75 m 411.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 676.75 m 484.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 676.75 m 488.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 676.75 m 561.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 676.75 m 407.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 662.75 m 407.5 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 676.75 m 484.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 662.75 m 484.5 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 676.75 m 561.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 662.75 m 561.5 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 572.75 m 407.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 572.75 m 484.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 572.75 m 561.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 572.75 m 407.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 557.75 m 407.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 572.75 m 484.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 557.75 m 484.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 572.75 m 561.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 557.75 m 561.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 382.75 m 407.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 382.75 m 484.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 382.75 m 561.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 382.75 m 407.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 367.75 m 407.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 382.75 m 484.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 367.75 m 484.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 382.75 m 561.5 382.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 367.75 m 561.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 307.75 m 407.5 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 307.75 m 484.5 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 307.75 m 561.5 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 277.75 m 407.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 264.75 m 407.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 262.75 m 407.5 262.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 277.75 m 484.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 264.75 m 484.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 262.75 m 484.5 262.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 277.75 m 561.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 264.75 m 561.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 262.75 m 561.5 262.75 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 418.85 691.43 Td (For) Tj ET Q q 0 0 0 rg BT 434.22 691.43 Td ( the ) Tj ET Q q 0 0 0 rg BT 452.18 691.43 Td (Y) Tj ET Q q 0 0 0 rg BT 458.29 691.43 Td (ears ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 403.25 681.43 Td (Ended December) Tj ET Q q 0 0 0 rg BT 476.67 681.43 Td ( 31,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 360.50 667.43 Td (2013) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 437.50 667.43 Td (2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 514.75 667.43 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 652.42 Td (Operating revenues:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 637.42 Td (Oil, gas, and NGL production revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 637.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.65 637.42 Td (2,199,550) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 637.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 637.42 Td (1,473,868) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.00 637.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 517.65 637.42 Td (1,332,392) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 622.42 Td (Realized hedge \(loss\) gain) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.80 622.47 Td (\(1,777) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 622.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 622.42 Td (3,866) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.80 622.47 Td (\(20,707) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 622.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 607.42 Td (Gain \(loss\) on divestiture activity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 607.42 Td (27,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 607.47 Td (\(27,018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 607.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 607.42 Td (220,676) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 592.42 Td (Marketed gas system revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 592.42 Td (60,039) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 592.42 Td (52,808) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 592.42 Td (69,898) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 577.42 Td (Other operating revenues) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.15 577.42 Td (7,588) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 577.42 Td (1,578) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.15 577.42 Td (1,059) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 562.42 Td (Total operating revenues and other income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.65 562.42 Td (2,293,374) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 562.42 Td (1,505,102) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 517.65 562.42 Td (1,603,318) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 547.42 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 532.42 Td (Oil, gas, and NGL production expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 532.42 Td (597,045) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.15 532.42 Td (391,872) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 532.42 Td (290,111) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 517.42 Td (Depletion, depreciation, amortization, and asset retirement) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 507.42 Td (obligation liability accretion) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 507.42 Td (822,872) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.15 507.42 Td (727,877) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 507.42 Td (511,103) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 492.42 Td (Exploration) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 492.42 Td (74,104) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 492.42 Td (90,248) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 492.42 Td (53,537) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 477.42 Td (Impairment of proved properties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 477.42 Td (172,641) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.15 477.42 Td (208,923) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 477.42 Td (219,037) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 462.42 Td (Abandonment and impairment of unproved properties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 462.42 Td (46,105) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 462.42 Td (16,342) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.15 462.42 Td (7,367) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 447.42 Td (General and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 447.42 Td (149,551) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 448.15 447.42 Td (119,815) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 447.42 Td (118,526) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 432.42 Td (Change in Net Profits Plan liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.80 432.47 Td (\(21,842) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 432.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 432.47 Td (\(28,904) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 432.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.80 432.47 Td (\(25,477) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 432.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 417.42 Td (Derivative gain) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.80 417.47 Td (\(3,080) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 417.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 417.47 Td (\(55,630) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 417.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.80 417.47 Td (\(37,086) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 417.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 402.42 Td (Marketed gas system expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 402.42 Td (57,647) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 402.42 Td (47,583) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 402.42 Td (64,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 387.42 Td (Other operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 387.42 Td (30,076) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 387.42 Td (6,993) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 387.42 Td (17,567) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 372.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.65 372.42 Td (1,925,119) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 372.42 Td (1,525,119) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 517.65 372.42 Td (1,218,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 357.42 Td (Income \(loss\) from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 357.42 Td (368,255) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 357.47 Td (\(20,017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 357.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 357.42 Td (384,384) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 342.42 Td (Nonoperating income \(expense\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 327.42 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.65 327.42 Td (67) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.65 327.42 Td (220) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.65 327.42 Td (466) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 312.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.80 312.47 Td (\(89,711) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 312.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 312.47 Td (\(63,720) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 312.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.80 312.47 Td (\(45,849) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 312.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 297.42 Td (Income \(loss\) before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 297.42 Td (278,611) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 297.47 Td (\(83,517) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 297.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 297.42 Td (339,001) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 282.42 Td (Income tax \(expense\) benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.80 282.47 Td (\(107,676) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 282.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 282.42 Td (29,268) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.80 282.47 Td (\(123,585) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 282.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 268.32 Td (Net income \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 268.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.15 268.32 Td (170,935) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 268.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.80 268.37 Td (\(54,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 268.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.00 268.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 268.32 Td (215,416) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 253.42 Td (Basic weighted-average common shares outstanding) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 253.42 Td (66,615) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 253.42 Td (65,138) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 253.42 Td (63,755) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 238.42 Td (Diluted weighted-average common shares outstanding) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 238.42 Td (67,998) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 238.42 Td (65,138) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 530.15 238.42 Td (67,564) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 224.32 Td (Basic net income \(loss\) per common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 224.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.15 224.32 Td (2.57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 224.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 224.37 Td (\(0.83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 224.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.00 224.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.15 224.32 Td (3.38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 210.32 Td (Diluted net income \(loss\) per common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 210.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.15 210.32 Td (2.51) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 210.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 210.37 Td (\(0.83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.65 210.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.00 210.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 540.15 210.32 Td (3.19) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 184.65 Td (The accompanying notes are an integral part of these consolidated financial statements. ) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (92) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.85 742.25 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 260.76 742.25 Td ( COMP) Tj ET Q q 0 0 0 rg BT 293.07 742.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 314.36 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 316.31 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 137.40 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 197.22 730.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 231.78 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 238.25 730.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 303.17 730.25 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.55 718.25 Td (\(in thousands\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 672.75 m 367 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 672.75 m 377 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 672.75 m 462 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 672.75 m 472 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 672.75 m 557 672.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 659.75 m 367 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 659.75 m 462 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 659.75 m 557 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 659.75 m 367 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 659.75 m 462 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 659.75 m 557 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 602.75 m 367 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 602.75 m 462 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 602.75 m 557 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 602.75 m 367 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 589.75 m 367 589.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 602.75 m 462 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 589.75 m 462 589.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 602.75 m 557 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 589.75 m 557 589.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 576.75 m 367 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 574.75 m 367 574.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 576.75 m 462 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 574.75 m 462 574.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 576.75 m 557 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 574.75 m 557 574.75 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.35 686.48 Td (For) Tj ET Q q 0 0 0 rg BT 405.72 686.48 Td ( the ) Tj ET Q q 0 0 0 rg BT 423.68 686.48 Td (Y) Tj ET Q q 0 0 0 rg BT 429.79 686.48 Td (ears ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 374.75 676.48 Td (Ended December) Tj ET Q q 0 0 0 rg BT 448.17 676.48 Td ( 31,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 314.00 663.48 Td (2013) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 409.00 663.48 Td (2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 504.25 663.48 Td (2011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 56.50 650.32 Td (Net income \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.50 650.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.65 650.32 Td (170,935) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.50 650.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.30 650.37 Td (\(54,249) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 650.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.50 650.32 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.65 650.32 Td (215,416) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 56.50 635.42 Td (Other comprehensive income \(loss\), net of tax:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 56.50 621.32 Td ( Reclassification to earnings ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 177.02 625.85 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.65 621.32 Td (1,115) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.30 621.37 Td (\(2,264) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 621.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.65 621.32 Td (12,997) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 56.50 607.32 Td ( Pension liability adjustment ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 178.16 611.85 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.65 607.32 Td (2,483) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.30 607.37 Td (\(2,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 607.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.30 607.37 Td (\(1,795) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.15 607.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 56.50 593.32 Td (Total other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.65 593.32 Td (3,598) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.30 593.37 Td (\(4,734) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 593.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.65 593.32 Td (11,202) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 56.50 580.43 Td (Total comprehensive income \(loss\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 284.50 580.43 Td ($) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.65 580.43 Td (174,533) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 379.50 580.43 Td ($) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 427.30 580.48 Td (\(58,983) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 458.15 580.43 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 474.50 580.43 Td ($) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 520.65 580.43 Td (226,618) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 54.50 568.78 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.08 564.25 Td ( Reclassification from accumulated other comprehensive income related to de-designated hedges. Refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 492.19 564.25 Td (Note 10 - ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 54.50 552.25 Td (Derivative Financial Instruments ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.31 552.25 Td (for further information. ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 54.50 544.78 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.08 540.25 Td ( Pension amounts are reclassified to General and administrative expense on the Company's consolidated statements of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 528.25 Td (operations. ) Tj ET Q q 0 0 0 rg BT 103.47 528.25 Td (The net of tax ef) Tj ET Q q 0 0 0 rg BT 169.37 528.25 Td (fect of the reclassification was approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.74 528.25 Td ($768,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.24 528.25 Td ( in 2013. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.85 503.05 Td (The accompanying notes are an integral part of these consolidated financial statements. ) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (93) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.85 735.25 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 260.76 735.25 Td ( COMP) Tj ET Q q 0 0 0 rg BT 293.07 735.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 314.36 735.25 Td ( ) Tj ET Q q 0 0 0 rg BT 316.31 735.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.90 723.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 217.72 723.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 252.28 723.25 Td (A) Tj ET Q q 0 0 0 rg BT 258.75 723.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 323.67 723.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 338.22 723.25 Td (OCKHOLDERS) Tj ET Q q 0 0 0 rg BT 412.49 723.25 Td ( EQUITY) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.05 711.25 Td (\(in thousands, except shar) Tj ET Q q 0 0 0 rg BT 338.00 711.25 Td (e amounts\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 673.75 m 216.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 673.75 m 220.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 673.75 m 260.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 673.75 m 347.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 673.75 m 351.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 673.75 m 387.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 661.75 m 216.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 661.75 m 260.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 661.75 m 307.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 661.75 m 347.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 661.75 m 387.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 661.75 m 434.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 661.75 m 499.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 661.75 m 557.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 661.75 m 499.5 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 524.75 m 216.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 524.75 m 260.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 524.75 m 307.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 524.75 m 347.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 524.75 m 387.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 524.75 m 434.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 524.75 m 499.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 524.75 m 557.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 349.75 m 216.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 349.75 m 220.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 349.75 m 260.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 349.75 m 264.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 349.75 m 307.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 349.75 m 311.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 349.75 m 347.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 349.75 m 351.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 349.75 m 387.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 349.75 m 391.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 349.75 m 434.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 349.75 m 438.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 349.75 m 499.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 349.75 m 503.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 349.75 m 557.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 202.75 m 216.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 191.75 m 216.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 189.75 m 216.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 202.75 m 220.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 191.75 m 220.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 189.75 m 220.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 202.75 m 260.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 191.75 m 260.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 189.75 m 260.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 202.75 m 264.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 191.75 m 264.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 189.75 m 264.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 202.75 m 307.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 191.75 m 307.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 189.75 m 307.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 202.75 m 311.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 191.75 m 311.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 189.75 m 311.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 202.75 m 347.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 191.75 m 347.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 189.75 m 347.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 202.75 m 351.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 191.75 m 351.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 189.75 m 351.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 202.75 m 387.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 191.75 m 387.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 189.75 m 387.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 202.75 m 391.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 191.75 m 391.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 189.75 m 391.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 202.75 m 434.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 191.75 m 434.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 189.75 m 434.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 202.75 m 438.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 191.75 m 438.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 189.75 m 438.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 202.75 m 499.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 191.75 m 499.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 189.75 m 499.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 202.75 m 503.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 191.75 m 503.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 189.75 m 503.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 202.75 m 557.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 191.75 m 557.5 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 189.75 m 557.5 189.75 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.25 681.98 Td (Additional) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 273.05 673.98 Td (Paid-in) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 272.80 665.98 Td (Capital) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 445.80 689.98 Td (Accumulated) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.35 681.98 Td (Other) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 441.90 673.98 Td (Comprehensive) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.70 665.98 Td (Loss) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.30 681.98 Td ( Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.70 673.98 Td (Stockholders) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 518.40 665.98 Td (Equity) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 190.15 677.83 Td (Common Stock) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 323.00 677.83 Td (Treasury Stock) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 397.15 673.98 Td (Retained) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 396.90 665.98 Td (Earnings) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 183.00 665.83 Td (Shares) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.95 665.83 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 317.50 665.83 Td (Shares) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.95 665.83 Td (Amount) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 56.00 653.83 Td (Balances, January 1, 2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 177.25 653.83 Td (63,412,800) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 223.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 245.25 653.83 Td (634) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 278.25 653.83 Td (191,674) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 315.60 653.83 Td (\(102,635) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.30 653.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 369.60 653.83 Td (\(423) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.30 653.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.25 653.83 Td (1,042,123) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 441.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.60 653.83 Td (\(15,482) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.30 653.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.00 653.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.25 653.83 Td (1,218,526) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 641.70 Td (Net income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.25 641.70 Td (215,416) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 641.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.25 641.70 Td (215,416) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 629.70 Td (Other comprehensive income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 629.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.30 629.70 Td (11,202) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 629.70 Td (11,202) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 617.70 Td (Cash dividends, $ 0.10 per share) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.60 617.70 Td (\(6,382) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.30 617.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 617.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 617.70 Td (\(6,382) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 617.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 605.70 Td (Issuance of common stock under) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 597.70 Td (Employee Stock Purchase Plan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.25 599.00 Td (41,358) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 599.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 599.00 Td (2,300) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 599.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 599.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 599.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 599.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 599.00 Td (2,300) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 586.00 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 578.00 Td (vesting of RSUs and settlement of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 570.00 Td (PSUs, net of shares used for tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 562.00 Td (withholdings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 562.00 Td (278,773) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 562.00 Td (3) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.60 562.00 Td (\(9,976) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 562.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 562.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 562.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 562.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 562.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 562.00 Td (\(9,973) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 562.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 549.00 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 541.00 Td (stock option exercises) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 541.00 Td (412,551) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 541.00 Td (4) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 541.00 Td (5,023) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 541.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 541.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 541.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 541.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 541.00 Td (5,027) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 528.70 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 528.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 528.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 528.70 Td (27,945) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.30 528.70 Td (21,568) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.60 528.70 Td (\(1,121) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.30 528.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 528.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 528.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 528.70 Td (26,824) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 56.00 516.83 Td (Balances, December 31, 2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 177.25 516.83 Td (64,145,482) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 223.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 245.25 516.83 Td (641) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 278.25 516.83 Td (216,966) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.60 516.83 Td (\(81,067) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.30 516.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 363.60 516.83 Td (\(1,544) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.30 516.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.25 516.83 Td (1,251,157) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 441.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.60 516.83 Td (\(4,280) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.30 516.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.00 516.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.25 516.83 Td (1,462,940) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 504.70 Td (Net loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.60 504.70 Td (\(54,249) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.30 504.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 504.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.60 504.70 Td (\(54,249) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 504.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 492.70 Td (Other comprehensive loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 492.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.60 492.70 Td (\(4,734) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.30 492.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 492.70 Td (\(4,734) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 492.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 480.70 Td (Cash dividends, $ 0.10 per share) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.60 480.70 Td (\(6,511) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.30 480.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 480.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 480.70 Td (\(6,511) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 480.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 468.70 Td (Issuance of common stock under) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 460.70 Td (Employee Stock Purchase Plan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.25 462.00 Td (66,485) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 462.00 Td (1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 462.00 Td (2,775) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 462.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 462.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 462.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 462.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 462.00 Td (2,776) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 449.00 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 441.00 Td (vesting of RSUs and settlement of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 433.00 Td (PSUs, net of shares used for tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 425.00 Td (withholdings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 425.00 Td (929,375) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 425.00 Td (9) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.60 425.00 Td (\(21,631) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 425.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 425.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 425.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 425.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 425.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.60 425.00 Td (\(21,622) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 425.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 412.00 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 404.00 Td (stock option exercises) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 404.00 Td (240,368) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 404.00 Td (2) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 404.00 Td (3,038) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 404.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 404.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 404.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 404.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 404.00 Td (3,040) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 391.00 Td (Conversion of 3.50% Senior) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 383.00 Td (Convertible Notes to common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 375.00 Td (stock, including income tax benefit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 367.00 Td (of conversion) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 367.00 Td (864,106) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 367.00 Td (9) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 367.00 Td (2,632) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 367.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 367.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 367.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 367.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 367.00 Td (2,641) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 354.00 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 354.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 354.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 354.00 Td (29,862) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.30 354.00 Td (30,486) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 354.00 Td (323) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 354.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 354.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 354.00 Td (30,185) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 56.00 341.83 Td (Balances, December 31, 2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 177.25 341.83 Td (66,245,816) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 223.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 245.25 341.83 Td (662) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 278.25 341.83 Td (233,642) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.60 341.83 Td (\(50,581) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.30 341.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 363.60 341.83 Td (\(1,221) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.30 341.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.25 341.83 Td (1,190,397) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 441.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.60 341.83 Td (\(9,014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.30 341.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.00 341.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.25 341.83 Td (1,414,466) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 329.70 Td (Net income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.25 329.70 Td (170,935) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 329.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.25 329.70 Td (170,935) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 317.70 Td (Other comprehensive income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 317.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 317.70 Td (3,598) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 317.70 Td (3,598) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 305.70 Td (Cash dividends, $ 0.10 per share) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.30 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.60 305.70 Td (\(6,663) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.30 305.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 305.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 305.70 Td (\(6,663) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 305.70 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 293.70 Td (Issuance of common stock under) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 285.70 Td (Employee Stock Purchase Plan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.25 287.00 Td (77,427) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 287.00 Td (1) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 287.00 Td (3,671) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 287.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 287.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 287.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 287.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 287.00 Td (3,672) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 274.00 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 266.00 Td (vesting of RSUs and settlement of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 258.00 Td (PSUs, net of shares used for tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 250.00 Td (withholdings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 250.00 Td (526,852) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 250.00 Td (5) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.60 250.00 Td (\(16,225) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.30 250.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 250.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 250.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 250.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 250.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.60 250.00 Td (\(16,220) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 554.30 250.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 237.70 Td (Issuance of common stock upon) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 229.70 Td (stock option exercises) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.25 231.00 Td (228,758) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.30 231.00 Td (3) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 231.00 Td (3,183) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 231.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 231.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 231.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 231.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 231.00 Td (3,186) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 218.70 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 218.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 218.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 218.70 Td (31,949) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.30 218.70 Td (28,169) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 218.70 Td (398) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 218.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 218.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 218.70 Td (32,347) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 56.00 206.70 Td (Other income tax benefit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.30 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.25 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 206.70 Td (1,500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.30 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.30 206.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 206.70 Td (1,500) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 56.00 194.83 Td (Balances, December 31, 2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 177.25 194.83 Td (67,078,853) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 223.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 245.25 194.83 Td (671) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 278.25 194.83 Td (257,720) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.60 194.83 Td (\(22,412) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.30 194.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 369.60 194.83 Td (\(823) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.30 194.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 394.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.25 194.83 Td (1,354,669) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 441.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.60 194.83 Td (\(5,416) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.30 194.83 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.00 194.83 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.25 194.83 Td (1,606,821) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.30 167.25 Td (The accompanying notes are an integral part of these consolidated financial statements. ) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (94) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.90 736.60 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 269.83 736.60 Td ( COMP) Tj ET Q q 0 0 0 rg BT 295.67 736.60 Td (ANY) Tj ET Q q 0 0 0 rg BT 312.71 736.60 Td ( ) Tj ET Q q 0 0 0 rg BT 314.27 736.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 212.10 727.00 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 259.96 727.00 Td (TED ST) Tj ET Q q 0 0 0 rg BT 287.60 727.00 Td (A) Tj ET Q q 0 0 0 rg BT 292.78 727.00 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 344.72 727.00 Td ( CASH FLOWS) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 281.65 717.40 Td (\(in thousands\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 685.9 m 401.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 685.9 m 405.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 685.9 m 481.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 685.9 m 485.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 685.9 m 561.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 685.9 m 401.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 673.9 m 401.5 673.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 685.9 m 481.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 673.9 m 481.5 673.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 685.9 m 561.5 685.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 673.9 m 561.5 673.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 408.9 m 401.5 408.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 396.9 m 401.5 396.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 408.9 m 481.5 408.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 396.9 m 481.5 396.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 408.9 m 561.5 408.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 396.9 m 561.5 396.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 316.9 m 401.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 316.9 m 481.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 316.9 m 561.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 316.9 m 401.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 304.9 m 401.5 304.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 316.9 m 481.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 304.9 m 481.5 304.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 316.9 m 561.5 316.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 304.9 m 561.5 304.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 176.89999999999998 m 401.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 176.89999999999998 m 481.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 176.89999999999998 m 561.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 176.89999999999998 m 401.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 164.89999999999998 m 401.5 164.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 176.89999999999998 m 481.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 164.89999999999998 m 481.5 164.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 176.89999999999998 m 561.5 176.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 164.89999999999998 m 561.5 164.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 132.89999999999998 m 401.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 132.89999999999998 m 481.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 132.89999999999998 m 561.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 132.89999999999998 m 401.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 121.89999999999998 m 401.5 121.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 119.89999999999998 m 401.5 119.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 132.89999999999998 m 481.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 121.89999999999998 m 481.5 121.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 119.89999999999998 m 481.5 119.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 132.89999999999998 m 561.5 132.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 121.89999999999998 m 561.5 121.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 119.89999999999998 m 561.5 119.89999999999998 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.00 698.13 Td (For) Tj ET Q q 0 0 0 rg BT 420.29 698.13 Td ( the ) Tj ET Q q 0 0 0 rg BT 434.66 698.13 Td (Y) Tj ET Q q 0 0 0 rg BT 439.55 698.13 Td (ears Ended ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 419.75 690.13 Td (December) Tj ET Q q 0 0 0 rg BT 454.25 690.13 Td ( 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.00 677.98 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.00 677.98 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 515.20 677.98 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 665.85 Td (Cash flows from operating activities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 653.85 Td (Net income \(loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.00 653.85 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 653.85 Td (170,935) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 653.85 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 653.85 Td (\(54,249) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 653.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.00 653.85 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 653.85 Td (215,416) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 641.85 Td (Adjustments to reconcile net income \(loss\) to net cash provided by operating) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 633.85 Td (activities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 622.85 Td (\(Gain\) loss on divestiture activity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.60 622.85 Td (\(27,974) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 622.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 622.85 Td (27,018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.60 622.85 Td (\(220,676) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 622.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 610.85 Td (Depletion, depreciation, amortization, and asset retirement obligation liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 602.90 Td (accretion) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 605.15 Td (822,872) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.30 605.15 Td (727,877) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 605.15 Td (511,103) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 592.85 Td (Exploratory dry hole expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 592.85 Td (5,846) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 592.85 Td (20,861) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 546.30 592.85 Td (277) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 580.85 Td (Impairment of proved properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 580.85 Td (172,641) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.30 580.85 Td (208,923) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 580.85 Td (219,037) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 568.85 Td (Abandonment and impairment of unproved properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 568.85 Td (46,105) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 568.85 Td (16,342) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 568.85 Td (7,367) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 556.85 Td (Stock-based compensation expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 556.85 Td (32,347) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 556.85 Td (30,185) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 556.85 Td (26,824) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 544.85 Td (Change in Net Profits Plan liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.60 544.85 Td (\(21,842) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 544.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 544.85 Td (\(28,904) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 544.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 544.85 Td (\(25,477) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 544.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 532.85 Td (Derivative gain) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 532.85 Td (\(3,080) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 532.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 532.85 Td (\(55,630) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 532.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 532.85 Td (\(37,086) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 532.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 520.85 Td (Derivative cash settlement gain \(loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 520.85 Td (22,062) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 520.85 Td (44,264) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 520.85 Td (\(25,671) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 520.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 508.85 Td (Amortization of debt discount and deferred financing costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 508.85 Td (5,390) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.30 508.85 Td (6,769) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 508.85 Td (18,299) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 496.85 Td (Deferred income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 496.85 Td (105,555) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 496.85 Td (\(29,638) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 496.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 496.85 Td (123,789) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 484.85 Td (Plugging and abandonment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 484.85 Td (\(9,946) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 484.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 484.85 Td (\(2,856) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 484.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 484.85 Td (\(5,849) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 484.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 472.85 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 472.85 Td (2,775) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 472.85 Td (527) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 472.85 Td (\(6,027) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 472.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 460.85 Td (Changes in current assets and liabilities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 448.85 Td (Accounts receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.60 448.85 Td (\(78,494) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 448.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 448.85 Td (\(21,389) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 448.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 448.85 Td (\(41,998) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 448.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 436.85 Td (Refundable income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 436.85 Td (\(1,266) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 436.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.30 436.85 Td (2,217) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 436.85 Td (2,901) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 424.85 Td (Prepaid expenses and other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 424.85 Td (1,364) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 424.85 Td (\(1,484) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 424.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.30 424.85 Td (16,376) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 412.85 Td (Accounts payable and accrued expenses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.30 412.85 Td (93,224) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 412.85 Td (31,136) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.60 412.85 Td (\(18,073) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 412.85 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 400.98 Td (Net cash provided by operating activities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 400.98 Td (1,338,514) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.30 400.98 Td (921,969) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 532.30 400.98 Td (760,532) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 380.85 Td (Cash flows from investing activities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 368.85 Td (Net proceeds from sale of oil and gas properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 368.85 Td (424,849) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.30 368.85 Td (55,375) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 368.85 Td (364,522) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 356.85 Td (Capital expenditures) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.60 356.85 Td (\(1,553,536) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 356.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.60 356.85 Td (\(1,507,828) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 356.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.60 356.85 Td (\(1,633,093) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 356.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 344.85 Td (Acquisition of proved and unproved oil and gas properties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.60 344.85 Td (\(61,603) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 344.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 344.85 Td (\(5,773) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 344.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.30 344.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 332.85 Td (Receipts from restricted cash related to 1031 exchange) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 332.85 Td (\(1,754) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 332.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.30 332.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.30 332.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 320.85 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.60 320.85 Td (\(859) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 320.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 320.85 Td (893) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 320.85 Td (3,661) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 308.98 Td (Net cash used in investing activities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 363.60 308.98 Td (\(1,192,903) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 398.30 308.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.60 308.98 Td (\(1,457,333) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 478.30 308.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 523.60 308.98 Td (\(1,264,910) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 308.98 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 288.85 Td (Cash flows from financing activities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 276.85 Td (Proceeds from credit facility) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.30 276.85 Td (1,203,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.30 276.85 Td (1,609,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 276.85 Td (322,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 264.85 Td (Repayment of credit facility) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.60 264.85 Td (\(1,543,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 264.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.60 264.85 Td (\(1,269,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 264.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.60 264.85 Td (\(370,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 264.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 252.85 Td (Debt issuance costs related to credit facility) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 252.85 Td (\(3,444) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 252.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.30 252.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 252.85 Td (\(8,719) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 252.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 240.85 Td (Net proceeds from Senior Notes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 240.85 Td (490,185) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.30 240.85 Td (392,138) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 240.85 Td (684,242) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 228.85 Td (Repayment of 3.50% Senior Convertible Notes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.30 228.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.60 228.85 Td (\(287,500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 228.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.30 228.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 216.85 Td (Proceeds from sale of common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 216.85 Td (6,858) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.30 216.85 Td (5,816) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 216.85 Td (7,327) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 204.85 Td (Dividends paid) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.60 204.85 Td (\(6,663) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 204.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 204.85 Td (\(6,511) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 204.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 204.85 Td (\(6,382) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 204.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 192.85 Td (Net share settlement from issuance of stock awards) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.60 192.85 Td (\(16,220) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 192.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 192.85 Td (\(21,622) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 192.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 537.60 192.85 Td (\(9,973) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 558.30 192.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 58.00 180.85 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.60 180.85 Td (\(5) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.30 180.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 180.85 Td (\(225) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 180.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 550.30 180.85 Td () Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 168.98 Td (Net cash provided by financing activities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 372.30 168.98 Td (130,711) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.30 168.98 Td (422,096) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 532.30 168.98 Td (618,495) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 148.85 Td (Net change in cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 148.85 Td (276,322) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.60 148.85 Td (\(113,268) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 148.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.30 148.85 Td (114,117) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 136.85 Td (Cash and cash equivalents at beginning of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.30 136.85 Td (5,926) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.30 136.85 Td (119,194) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.30 136.85 Td (5,077) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 124.98 Td (Cash and cash equivalents at end of period) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 328.00 124.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 372.30 124.98 Td (282,248) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.00 124.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.30 124.98 Td (5,926) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 488.00 124.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 532.30 124.98 Td (119,194) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 148.80 99.80 Td (The accompanying notes are an integral part of these consolidated financial statements. ) Tj ET Q endstream endobj 191 0 obj <> endobj 192 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (95) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.85 735.25 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 260.76 735.25 Td ( COMP) Tj ET Q q 0 0 0 rg BT 293.07 735.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 314.36 735.25 Td ( ) Tj ET Q q 0 0 0 rg BT 316.31 735.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 161.55 723.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 221.37 723.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 255.93 723.25 Td (A) Tj ET Q q 0 0 0 rg BT 262.40 723.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 327.32 723.25 Td ( CASH FLOWS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.25 Td (Supplemental schedule of additional cash flow information and non-cash activities:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 652.75 m 379.5 652.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 652.75 m 384.5 652.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 652.75 m 470.5 652.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 652.75 m 475.5 652.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 652.75 m 561.5 652.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 637.75 m 379.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 637.75 m 470.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 637.75 m 561.5 637.75 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 383.75 667.43 Td (For) Tj ET Q q 0 0 0 rg BT 399.12 667.43 Td ( the ) Tj ET Q q 0 0 0 rg BT 417.08 667.43 Td (Y) Tj ET Q q 0 0 0 rg BT 423.19 667.43 Td (ears Ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.40 657.43 Td (December) Tj ET Q q 0 0 0 rg BT 441.52 657.43 Td ( 31,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 326.50 642.43 Td (2013) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 417.00 642.43 Td (2012) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 508.25 642.43 Td (2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.05 627.43 Td (\(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 612.42 Td (Cash paid for interest, net of capitalized interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.00 612.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.80 612.47 Td (\(70,702) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 612.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.00 612.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.80 612.47 Td (\(51,328) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 612.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.00 612.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.80 612.47 Td (\(22,133) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 557.65 612.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 582.42 Td (Net cash refunded for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.00 582.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 360.65 582.42 Td (204) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.00 582.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.15 582.42 Td (1,389) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.00 582.42 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.15 582.42 Td (4,046) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 554.25 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 110.44 554.25 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.03 554.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 194.03 554.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.03 554.25 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.97 554.25 Td (201) Tj ET Q q 0 0 0 rg BT 250.59 554.25 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 255.59 554.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.59 554.25 Td ($217.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.49 554.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.49 554.25 Td ($262.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.38 554.25 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.32 554.25 Td ($214.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.21 554.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 516.87 554.25 Td (, of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (accrued capital expenditures were included in accounts payable and accrued expenses in the Company's consolidated balance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (sheets. ) Tj ET Q q 0 0 0 rg BT 81.76 530.25 Td (These oil and gas property additions are reflected in cash used in investing activities in the periods during which the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (payables are settled. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 494.25 Td (During the third quarter of 2013, the Company closed an exchange of properties in its Rocky Mountain region with a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (fair value of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 101.36 482.25 Td ($25.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 155.25 482.25 Td (. ) Tj ET Q q 0 0 0 rg BT 162.57 482.25 Td (The insignificant amount of cash consideration paid at closing for purchase price adjustments is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (reflected in the acquisition of proved and unproved oil and gas properties line item in the consolidated statements of cash flows.) Tj ET Q endstream endobj 193 0 obj <> endobj 194 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (96) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 190.35 734.60 Td (SM ENERGY) Tj ET Q q 0 0 0 rg BT 256.25 734.60 Td ( COMP) Tj ET Q q 0 0 0 rg BT 291.79 734.60 Td (ANY) Tj ET Q q 0 0 0 rg BT 315.21 734.60 Td ( ) Tj ET Q q 0 0 0 rg BT 317.35 734.60 Td (AND SUBSIDIARIES ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 162.25 721.40 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 202.09 721.40 Td (T) Tj ET Q q 0 0 0 rg BT 209.23 721.40 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 286.34 721.40 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 373.44 721.40 Td ( ST) Tj ET Q q 0 0 0 rg BT 388.83 721.40 Td (A) Tj ET Q q 0 0 0 rg BT 395.96 721.40 Td (TEMENTS) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 694.95 Td (Note 1 Summary of Significant ) Tj ET Q q 0 0 0 rg BT 205.22 694.95 Td (Accounting Policies) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (Description of Operations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 644.55 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 125.21 644.55 Td (gy is an independent ener) Tj ET Q q 0 0 0 rg BT 237.42 644.55 Td (gy company engaged in the acquisition, exploration, development, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.40 Td (production of crude oil and condensate, gas, and NGLs in onshore North ) Tj ET Q q 0 0 0 rg BT 371.98 631.40 Td (America, with a current focus on oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.20 Td (liquids-rich resource plays.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 605.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (Basis of Pr) Tj ET Q q 0 0 0 rg BT 98.48 591.75 Td (esentation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 566.55 Td (The accompanying consolidated financial statements include the accounts of the Company and its wholly-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.35 Td (owned subsidiaries and have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 359.01 553.35 Td ( and the instructions to Form 10-K and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.20 Td (Regulation S-X. Subsidiaries that the Company does not control are accounted for using the equity or cost methods ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 527.00 Td (as appropriate. Equity method investments are included in other noncurrent assets in the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.80 Td (consolidated balance sheets \(accompanying balance sheets\). Intercompany accounts and transactions have been ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.60 Td (eliminated. In connection with the preparation of the consolidated financial statements, the Company evaluated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.40 Td (subsequent events after the balance sheet date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.24 487.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.68 487.40 Td (, through the filing date of this report. Certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.20 Td (prior period amounts have been reclassified to conform to the current period presentation on the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 461.00 Td (balance sheets and accompanying consolidated statements of cash flows \(accompanying statements of cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.80 Td (flows\). ) Tj ET Q q 0 0 0 rg BT 91.04 447.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 156.72 447.80 Td (s Senior Notes are combined and presented as a single line item within the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.60 Td (balance sheets in the current year whereas they were individually presented in prior periods. ) Tj ET Q q 0 0 0 rg BT 460.31 434.60 Td (The Company's total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.40 Td (derivative gain is now presented on the accompanying statements of cash flows in cash flows from operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.20 Td (activities with an additional line item to adjust for the cash settlement portion.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 383.00 Td (Use of Estimates in the Pr) Tj ET Q q 0 0 0 rg BT 164.77 383.00 Td (eparation of Financial Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 357.80 Td (The preparation of financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 375.79 357.80 Td ( requires management to make estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.60 Td (and assumptions that af) Tj ET Q q 0 0 0 rg BT 153.37 344.60 Td (fect the reported amounts of proved oil and gas reserves, assets and liabilities, disclosure of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.40 Td (contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.20 Td (expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 218.93 318.20 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 321.68 318.20 Td (fer from those estimates. Estimates of proved oil and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 305.00 Td (gas reserve quantities provide the basis for the calculation of depletion, depreciation, and amortization expense, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.80 Td (impairment of proved properties, asset retirement obligations, and the Net Profits Interest Bonus Plan \(Net Profits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.60 Td (Plan\) liability) Tj ET Q q 0 0 0 rg BT 114.36 278.60 Td (, each of which represents a significant component of the accompanying consolidated financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.40 Td (statements.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 240.20 Td (Cash and Cash Equivalents) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 215.00 Td (The Company considers all liquid investments purchased with an initial maturity of three months or less to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.80 Td (be cash equivalents. ) Tj ET Q q 0 0 0 rg BT 143.58 201.80 Td (The carrying value of cash and cash equivalents approximates fair value due to the short-term ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.60 Td (nature of these instruments.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 163.40 Td (Restricted Cash) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 138.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 138.20 Td (s restricted cash balance mainly consists of cash payments that are contractually restricted to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 124.95 Td (be used solely for development of long-term capital assets pursuant to the Company) Tj ET Q q 0 0 0 rg BT 422.69 124.95 Td (s ) Tj ET Q q 0 0 0 rg BT 429.11 124.95 Td (Acquisition and Development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (Agreement with Mitsui and accordingly are classified as non-current assets. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 454.72 111.75 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 498.21 111.75 Td (Acquisition ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 98.55 Td (and Development ) Tj ET Q q 0 0 0 rg BT 129.83 98.55 Td (Agr) Tj ET Q q 0 0 0 rg BT 145.92 98.55 Td (eement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.82 98.55 Td (for additional information.) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (97) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Accounts Receivable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 709.20 Td (s accounts receivable consist mainly of receivables from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 480.86 709.20 Td ( purchasers and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (from joint interest owners on properties the Company operates. For receivables from joint interest owners, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Company typically has the ability to withhold future revenue disbursements to recover non-payment of joint interest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (billings. Generally) Tj ET Q q 0 0 0 rg BT 133.91 669.60 Td (, the Company) Tj ET Q q 0 0 0 rg BT 201.43 669.60 Td (s oil and gas receivables are collected within two months, and the Company has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (had minimal bad debts. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 631.20 Td (Although diversified among many companies, collectability is dependent upon the financial wherewithal of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (each individual company and is influenced by the general economic conditions of the industry) Tj ET Q q 0 0 0 rg BT 463.81 618.00 Td (. Receivables are not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (collateralized. ) Tj ET Q q 0 0 0 rg BT 116.88 604.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.77 604.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.21 604.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.59 604.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.59 604.80 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.44 604.80 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.44 604.80 Td ( allowance for doubtful accounts recorded. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 138.82 579.60 Td (edit Risk and Major Customers) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 554.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 554.40 Td (The Company is exposed to credit risk in the event of nonpayment by counterparties, a significant portion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.20 Td (of which are concentrated in ener) Tj ET Q q 0 0 0 rg BT 196.70 541.20 Td (gy related industries.) Tj ET Q q 0 0 0 rg BT 293.94 541.20 Td (The creditworthiness of customers and other counterparties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (is subject to regular review) Tj ET Q q 0 0 0 rg BT 168.41 528.00 Td (. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.57 528.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.57 528.00 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.42 528.00 Td (three) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.40 528.00 Td ( major customers, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.66 528.00 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 543.54 528.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (Anadarko, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.50 514.80 Td (Plains Marketing LP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.34 514.80 Td (, which accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.66 514.80 Td (26 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.78 514.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.28 514.80 Td (16 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.40 514.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.53 514.80 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.65 514.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 501.60 Td (, of total oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 220.25 501.60 Td ( production revenue. During the third quarter of 2013, the Company entered ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (into various marketing agreements with ) Tj ET Q q 0 0 0 rg BT 226.88 488.40 Td (Anadarko whereby the Company is subject to certain gathering, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (transportation, and processing through-put commitments for up to 10 years pursuant to each contract. ) Tj ET Q q 0 0 0 rg BT 500.99 475.20 Td (While ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (Anadarko is the first purchaser under these contracts, the Company also shares the risk of non-performance by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (Anadarko) Tj ET Q q 0 0 0 rg BT 96.43 448.80 Td (s counterparty purchasers. Several of ) Tj ET Q q 0 0 0 rg BT 264.12 448.80 Td (Anadarko) Tj ET Q q 0 0 0 rg BT 310.55 448.80 Td (s counterparty purchasers under these contracts are also ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (direct purchasers of products produced by the Company) Tj ET Q q 0 0 0 rg BT 295.80 435.60 Td (. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 337.96 435.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.96 435.60 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.81 435.60 Td (two) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.31 435.60 Td ( major customers, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (Regency Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.88 422.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.26 422.40 Td (Plains Marketing LP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.09 422.40 Td (, which accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.42 422.40 Td (21 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.54 422.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.92 422.40 Td (13 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.37 409.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 140.29 409.20 Td (, of total production revenue. During ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.64 409.20 Td (201) Tj ET Q q 0 0 0 rg BT 320.73 409.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.23 409.20 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.08 409.20 Td (one) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.96 409.20 Td ( major customer) Tj ET Q q 0 0 0 rg BT 499.00 409.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.50 409.20 Td (Regency ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (Gas Services LLC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.65 396.00 Td (, which accounted for approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.98 396.00 Td (18 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.09 396.00 Td ( of total production revenue. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 369.60 Td (The Company currently uses ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.52 369.60 Td (10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 226.52 369.60 Td ( separate counterparties for its oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 439.93 369.60 Td ( commodity derivatives, all ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (of which are participating lenders in the Company) Tj ET Q q 0 0 0 rg BT 273.90 356.40 Td (s credit facility) Tj ET Q q 0 0 0 rg BT 339.16 356.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.21 356.40 Td (Three) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.86 356.40 Td ( counterparties were downgraded during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 343.20 Td (, but all maintain investment grade ratings. Our lowest rated counterparty carries credit ratings of BBB- and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td (Baa2, by Standard & Poor) Tj ET Q q 0 0 0 rg BT 166.20 330.00 Td () Tj ET Q q 0 0 0 rg BT 169.25 330.00 Td (s and Moody) Tj ET Q q 0 0 0 rg BT 229.75 330.00 Td (s, respectively) Tj ET Q q 0 0 0 rg BT 291.96 330.00 Td (. Per the terms of our agreement with that counterparty) Tj ET Q q 0 0 0 rg BT 535.31 330.00 Td (, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (Company requires cash collateral to be posted when its portfolio of trades with that counterparty is in an overall ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.60 Td (asset position. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 278.40 Td (The Company has accounts in the following locations with a national bank: ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.82 278.40 Td (Denver) Tj ET Q q 0 0 0 rg BT 452.75 278.40 Td (, Colorado) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.19 278.40 Td (; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.99 278.40 Td (Houston, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 265.20 Td (exas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 265.20 Td (; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.30 265.20 Td (Midland, ) Tj ET Q q 0 0 0 rg BT 123.88 265.20 Td (T) Tj ET Q q 0 0 0 rg BT 129.83 265.20 Td (exas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 149.38 265.20 Td (; and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.81 265.20 Td (Billings, Montana) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.26 265.20 Td (. ) Tj ET Q q 0 0 0 rg BT 261.31 265.20 Td (The Company has accounts with a local bank in ) Tj ET Q q 0 0 0 rg BT 474.64 265.20 Td (T) Tj ET Q q 0 0 0 rg BT 480.97 265.20 Td (ulsa, Oklahoma. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 252.00 Td (As a result of the ) Tj ET Q q 0 0 0 rg BT 127.29 252.00 Td (Anadarko Basin divestiture closing at the end of 2013, the Company had a lar) Tj ET Q q 0 0 0 rg BT 469.23 252.00 Td (ge cash balance at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 238.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 238.80 Td (, which was invested in money market funds among various financial institutions. ) Tj ET Q q 0 0 0 rg BT 501.32 238.80 Td (This is in line ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.60 Td (with the Company) Tj ET Q q 0 0 0 rg BT 134.33 225.60 Td (s policy is to invest in highly-rated instruments and to limit the amount of credit exposure at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.40 Td (each individual institution.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (Oil and Gas Pr) Tj ET Q q 0 0 0 rg BT 117.12 187.20 Td (oducing ) Tj ET Q q 0 0 0 rg BT 155.11 187.20 Td (Activities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 162.00 Td (The Company accounts for its oil and gas exploration and development costs using the successful ef) Tj ET Q q 0 0 0 rg BT 526.61 162.00 Td (forts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 148.80 Td (method. Geological and geophysical costs are expensed as incurred. Exploratory well costs are capitalized pending ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.60 Td (further evaluation of whether economically recoverable reserves have been found. If economically recoverable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.40 Td (reserves are not found, exploratory well costs are expensed as dry holes. ) Tj ET Q q 0 0 0 rg BT 373.28 122.40 Td (The application of the successful ef) Tj ET Q q 0 0 0 rg BT 529.16 122.40 Td (forts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.20 Td (method of accounting requires management) Tj ET Q q 0 0 0 rg BT 246.10 109.20 Td (s judgment to determine the proper designation of wells as either ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.00 Td (development or exploratory) Tj ET Q q 0 0 0 rg BT 171.47 96.00 Td (, which will ultimately determine the proper accounting treatment of costs of dry holes. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (Once a well is drilled, the determination that economic proved reserves have been discovered may take ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 69.60 Td (considerable time and judgment. Exploratory dry hole costs are included in cash flows from investing activities as ) Tj ET Q endstream endobj 197 0 obj <> endobj 198 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (part of capital expenditures within the accompanying statements of cash flows. ) Tj ET Q q 0 0 0 rg BT 402.61 734.40 Td (The costs of development wells are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (capitalized whether those wells are successful or unsuccessful.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (DD&A) Tj ET Q q 0 0 0 rg BT 117.78 696.00 Td ( of capitalized costs related to proved oil and gas properties is calculated on a pool-by-pool basis ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (using the units-of-production method based upon proved reserves. ) Tj ET Q q 0 0 0 rg BT 346.74 682.80 Td (The computation of DD&A) Tj ET Q q 0 0 0 rg BT 468.02 682.80 Td ( takes into ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (consideration restoration, dismantlement, and abandonment costs as well as the anticipated proceeds from salvaging ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (equipment. ) Tj ET Q q 0 0 0 rg BT 104.08 656.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 656.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.41 656.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.54 656.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.54 656.40 Td (, the estimated salvage value of the Company's equipment was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td ($57.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.28 643.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.66 643.20 Td ($64.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.94 643.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 247.87 643.20 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (Materials Inventory) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 592.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 592.80 Td (s materials inventory is primarily comprised of tubular goods to be used in future drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (operations. Materials inventory is valued at the lower of cost or market and totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 579.60 Td ($16.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.28 579.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.66 579.60 Td ($13.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.94 579.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.69 566.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.13 566.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.26 566.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.26 566.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 251.19 566.40 Td (. ) Tj ET Q q 0 0 0 rg BT 259.24 566.40 Td (There were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.76 566.40 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.76 566.40 Td ( materials inventory write-downs for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 553.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.94 553.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.94 553.20 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.36 553.20 Td (201) Tj ET Q q 0 0 0 rg BT 197.45 553.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.95 553.20 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 502.80 Td (Any properties held for sale as of the balance sheet date have been classified as assets held for sale and are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 489.60 Td (separately presented on the accompanying balance sheets at the lower of net book value or fair value less the cost to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 476.40 Td (sell. ) Tj ET Q q 0 0 0 rg BT 73.33 476.40 Td (The asset retirement obligation liabilities related to such properties have been reclassified to asset retirement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.20 Td (obligations associated with oil and gas properties held for sale in the accompanying balance sheets. For additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 450.00 Td (discussion on assets held for sale, please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 265.66 450.00 Td (Note 3 Divestitur) Tj ET Q q 0 0 0 rg BT 349.27 450.00 Td (es and ) Tj ET Q q 0 0 0 rg BT 380.24 450.00 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.14 450.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 424.80 Td (Other Pr) Tj ET Q q 0 0 0 rg BT 89.00 424.80 Td (operty and Equipment) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 399.60 Td (Other property and equipment such as facilities, of) Tj ET Q q 0 0 0 rg BT 308.79 399.60 Td (fice furniture and equipment, buildings, and computer ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 386.40 Td (hardware and software are recorded at cost. Costs of renewals and improvements that substantially extend the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 373.20 Td (useful lives of the assets are capitalized. Maintenance and repair costs are expensed when incurred. Depreciation is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 360.00 Td (calculated using either the straight-line method over the estimated useful lives of the assets, which range from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.29 360.00 Td (three ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 346.80 Td (to thirty years) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.10 346.80 Td (, or the unit of output method where appropriate. ) Tj ET Q q 0 0 0 rg BT 330.84 346.80 Td (When other property and equipment is sold or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 333.60 Td (retired, the capitalized costs and related accumulated depreciation are removed from the accounts.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 308.40 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 97.77 308.40 Td (Assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 283.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 283.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 283.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.46 283.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.46 283.20 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.31 283.20 Td ($10.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.59 283.20 Td ( of intangible assets consisting of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 270.00 Td (acquired water rights, which are included as other noncurrent assets in the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 516.11 270.00 Td (All ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 256.80 Td (intangible assets with indefinite lives are evaluated for impairment annually or if impairment indicators arise. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 231.60 Td (Internal-Use Softwar) Tj ET Q q 0 0 0 rg BT 142.78 231.60 Td (e Development Costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 205.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 205.20 Td (The Company capitalizes certain software costs incurred during the application development stage. ) Tj ET Q q 0 0 0 rg BT 524.73 205.20 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 192.00 Td (application development stage generally includes software design, configuration, testing and installation activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 178.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.33 178.80 Td (raining and maintenance costs are expensed as incurred, while upgrades and enhancements are capitalized if it is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 165.60 Td (probable that such expenditures will result in additional functionality) Tj ET Q q 0 0 0 rg BT 352.94 165.60 Td (. Capitalized software costs are depreciated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 152.40 Td (over the estimated useful life of the underlying project on a straight-line basis upon completion of the project. ) Tj ET Q q 0 0 0 rg BT 537.53 152.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 139.20 Td (December 31, 2013, the Company has capitalized approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 337.74 139.20 Td ($1) Tj ET Q q 0 0 0 rg BT 348.33 139.20 Td (1.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.61 139.20 Td ( related to the ongoing development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 126.00 Td (and implementation of accounting and operational software. ) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 38.60 Td (99) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company seeks to manage or reduce commodity price risk on production by entering into derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (contracts. ) Tj ET Q q 0 0 0 rg BT 97.75 696.00 Td (The Company seeks to minimize its basis risk and indexes its oil derivative contracts to NYMEX or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Ar) Tj ET Q q 0 0 0 rg BT 61.41 682.80 Td (gus LLS prices, its NGL) Tj ET Q q 0 0 0 rg BT 168.85 682.80 Td ( derivative contracts to OPIS prices, and the majority of its gas derivative contracts to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (various regional index prices associated with pipelines in proximity to the Company) Tj ET Q q 0 0 0 rg BT 423.62 669.60 Td (s areas of gas production. For ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (additional discussion on derivatives, please see ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 259.86 656.40 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.03 656.40 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (Net Pr) Tj ET Q q 0 0 0 rg BT 78.62 631.20 Td (ofits Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 606.00 Td (The Company records the estimated fair value of expected future payments made under the Net Profits Plan ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 592.80 Td (as a noncurrent liability in the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 322.57 592.80 Td (The underlying assumptions used in the calculation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (the estimated liability include estimates of production, proved reserves, recurring and workover lease operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (expense, transportation, production and ad valorem tax rates, present value discount factors, pricing assumptions, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (and overall market conditions. ) Tj ET Q q 0 0 0 rg BT 189.10 553.20 Td (The estimates used in calculating the long-term liability are adjusted from period-to-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (period based on the most current information attributable to the underlying assumptions. Changes in the estimated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (liability of future payments associated with the Net Profits Plan are recorded as increases or decreases to expense in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (the current period as a separate line item in the accompanying consolidated statements of operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (\(accompanying statements of operations\), as these changes are considered changes in estimates. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 475.20 Td (The distribution amounts due to participants and payable in each period under the Net Profits Plan as cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td (compensation related to periodic operations are recognized as compensation expense and are included within ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 448.80 Td (general and administrative expense and exploration expense in the accompanying statements of operations. ) Tj ET Q q 0 0 0 rg BT 526.61 448.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 435.60 Td (corresponding current liability is included in accounts payable and accrued expenses in the accompanying balance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.40 Td (sheets. ) Tj ET Q q 0 0 0 rg BT 84.93 422.40 Td (This treatment provides for a consistent matching of cash expense with net cash flows from the oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.20 Td (properties in each respective pool of the Net Profits Plan. For additional discussion, please refer to the heading ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 542.12 409.20 Td (Net ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 396.00 Td (ofits Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.07 396.00 Td ( in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 117.12 396.00 Td (Note 7 Compensation Plans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.51 396.00 Td ( and ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 269.89 396.00 Td (Note 1) Tj ET Q q 0 0 0 rg BT 298.10 396.00 Td (1 Fair V) Tj ET Q q 0 0 0 rg BT 342.41 396.00 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 397.29 396.00 Td (ements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.84 396.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 97.56 370.80 Td (ement Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 345.60 Td (The Company recognizes an estimated liability for future costs associated with the abandonment of its oil ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.40 Td (and gas properties. ) Tj ET Q q 0 0 0 rg BT 137.67 332.40 Td (A) Tj ET Q q 0 0 0 rg BT 145.01 332.40 Td ( liability for the fair value of an asset retirement obligation and corresponding increase to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.20 Td (carrying value of the related long-lived asset are recorded at the time a well is completed or acquired. ) Tj ET Q q 0 0 0 rg BT 501.22 319.20 Td (The increase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 306.00 Td (in carrying value is included in proved oil and gas properties in the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 485.39 306.00 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.80 Td (depletes the amount added to proved oil and gas property costs and recognizes expense in connection with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.60 Td (accretion of the discounted liability over the remaining estimated economic lives of the respective oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.40 Td (properties. For additional discussion, please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 283.38 266.40 Td (Note 9 ) Tj ET Q q 0 0 0 rg BT 323.21 266.40 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 370.77 266.40 Td (ement Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.73 266.40 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 241.20 Td (Revenue Recognition) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 216.00 Td (The Company derives revenue primarily from the sale of produced oil, gas, and NGLs. Revenue is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 202.80 Td (recognized when the Company) Tj ET Q q 0 0 0 rg BT 189.59 202.80 Td (s production is delivered to the purchaser) Tj ET Q q 0 0 0 rg BT 370.60 202.80 Td (, but payment is generally received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 189.60 Td (between ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.40 189.60 Td (30) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.40 189.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 121.78 189.60 Td (90) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.78 189.60 Td ( days after the date of production. No revenue is recognized unless it is determined that title to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 176.40 Td (the product has transferred to the purchaser) Tj ET Q q 0 0 0 rg BT 239.98 176.40 Td (. ) Tj ET Q q 0 0 0 rg BT 247.62 176.40 Td (At the end of each month, the Company estimates the amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 163.20 Td (production delivered to the purchaser and the price the Company will receive. ) Tj ET Q q 0 0 0 rg BT 398.01 163.20 Td (The Company uses knowledge of its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 150.00 Td (properties and historical performance, NYMEX, OPIS, and local spot market prices, quality and transportation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 136.80 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 136.80 Td (ferentials, and other factors as the basis for these estimates.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 111.60 Td (The Company uses the sales method of accounting for gas revenue whereby sales revenue is recognized on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 98.40 Td (all gas sold to purchasers, regardless of whether the sales are proportionate to the Company) Tj ET Q q 0 0 0 rg BT 455.35 98.40 Td (s ownership in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 85.20 Td (property) Tj ET Q q 0 0 0 rg BT 86.55 85.20 Td (. ) Tj ET Q q 0 0 0 rg BT 94.19 85.20 Td (An asset or liability is recognized to the extent that there is an imbalance in excess of the remaining gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 72.00 Td (reserves on the underlying properties. ) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (100) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Impairment of Pr) Tj ET Q q 0 0 0 rg BT 125.97 734.40 Td (oved and Unpr) Tj ET Q q 0 0 0 rg BT 191.56 734.40 Td (oved Pr) Tj ET Q q 0 0 0 rg BT 225.66 734.40 Td (operties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (Proved oil and gas property costs are evaluated for impairment and reduced to fair value, which is based on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (expected future discounted cash flows, when there is an indication that the carrying costs may not be recoverable. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Expected future cash flows are calculated on all developed proved reserves and risk adjusted proved undeveloped, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (probable, and possible reserves using a discount rate and price forecasts that management believes are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (representative of current market conditions. ) Tj ET Q q 0 0 0 rg BT 247.42 656.40 Td (The prices for oil and gas are forecasted based on NYMEX strip ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (pricing, adjusted for basis dif) Tj ET Q q 0 0 0 rg BT 178.41 643.20 Td (ferentials, for the first ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.07 643.20 Td (five) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.17 643.20 Td ( years, after which a flat terminal price is used for each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (commodity stream. ) Tj ET Q q 0 0 0 rg BT 140.23 630.00 Td (The prices for NGLs are forecasted using OPIS pricing, adjusted for basis dif) Tj ET Q q 0 0 0 rg BT 480.02 630.00 Td (ferentials, for as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (long as the market is actively trading, after which a flat terminal price is used. Future operating costs are also ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (adjusted as deemed appropriate for these estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.72 603.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.72 603.60 Td (An impairment is recorded on unproved property when the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (Company determines that either the property will not be developed or the carrying value is not realizable.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 565.20 Td (The Company recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.60 565.20 Td ($172.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.38 565.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.88 565.20 Td ($208.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.66 565.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.79 565.20 Td ($219.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 416.57 565.20 Td (, of proved property ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (impairments for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.48 552.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.92 552.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.42 552.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.42 552.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.55 552.00 Td (201) Tj ET Q q 0 0 0 rg BT 348.64 552.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.14 552.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 412.07 552.00 Td (. ) Tj ET Q q 0 0 0 rg BT 420.12 552.00 Td (The impairments in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.02 552.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.02 552.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (resulted from the write-down of certain Mississippian limestone assets in the Company) Tj ET Q q 0 0 0 rg BT 436.46 538.80 Td (s Permian region due to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (negative engineering revisions, write-downs related to Olmos interval, dry gas assets in the South ) Tj ET Q q 0 0 0 rg BT 481.76 525.60 Td (T) Tj ET Q q 0 0 0 rg BT 487.71 525.60 Td (exas & Gulf ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (Coast region as a result of a plugging and abandonment program, and write-downs of certain underperforming ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (assets due to the Company) Tj ET Q q 0 0 0 rg BT 170.37 499.20 Td (s decision to no longer pursue the development of those assets. ) Tj ET Q q 0 0 0 rg BT 452.14 499.20 Td (The impairments in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 486.00 Td ( were a result of the Company) Tj ET Q q 0 0 0 rg BT 207.63 486.00 Td (s write-down of ) Tj ET Q q 0 0 0 rg BT 279.83 486.00 Td (W) Tj ET Q q 0 0 0 rg BT 289.33 486.00 Td (olfberry assets in its Permian region due to negative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.80 Td (engineering revisions and the Company) Tj ET Q q 0 0 0 rg BT 227.79 472.80 Td (s Haynesville shale assets as a result of low natural gas prices. ) Tj ET Q q 0 0 0 rg BT 506.80 472.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (impairments in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.05 459.60 Td (201) Tj ET Q q 0 0 0 rg BT 135.14 459.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 140.64 459.60 Td ( were related to the Company) Tj ET Q q 0 0 0 rg BT 273.51 459.60 Td (s James Lime, Cotton ) Tj ET Q q 0 0 0 rg BT 371.38 459.60 Td (V) Tj ET Q q 0 0 0 rg BT 378.11 459.60 Td (alley) Tj ET Q q 0 0 0 rg BT 398.77 459.60 Td (, and Haynesville shale assets as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 446.40 Td (result of significantly lower natural gas prices at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.78 446.40 Td (201) Tj ET Q q 0 0 0 rg BT 327.87 446.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.37 446.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 421.20 Td (For the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 175.19 421.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.63 421.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.13 421.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.13 421.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.27 421.20 Td (201) Tj ET Q q 0 0 0 rg BT 329.36 421.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.86 421.20 Td (, the Company recorded expense related to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (abandonment and impairment of unproved properties of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.96 408.00 Td ($46.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.24 408.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.74 408.00 Td ($16.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.02 408.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.15 408.00 Td ($7.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.93 408.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 558.86 408.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (The Company's abandonment and impairment of unproved properties in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.99 394.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.99 394.80 Td ( was mostly related to acreage the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (Company no longer intends to develop in its Permian region. ) Tj ET Q q 0 0 0 rg BT 323.54 381.60 Td (The Company) Tj ET Q q 0 0 0 rg BT 389.22 381.60 Td (s abandonment and impairment of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (unproved properties in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.34 368.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.34 368.40 Td ( related to acreage that the Company no longer intended to develop in its Rocky ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.20 Td (Mountain region.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 52.50 330.00 Td (Sales of Pr) Tj ET Q q 0 0 0 rg BT 100.37 330.00 Td (oved and Unpr) Tj ET Q q 0 0 0 rg BT 165.95 330.00 Td (oved Pr) Tj ET Q q 0 0 0 rg BT 200.05 330.00 Td (operties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 303.60 Td (The partial sale of proved properties within an existing field is accounted for as normal retirement and no ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.40 Td (gain or loss on divestiture activity is recognized as long as the treatment does not significantly af) Tj ET Q q 0 0 0 rg BT 475.64 290.40 Td (fect the units-of-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 277.20 Td (production depletion rate. ) Tj ET Q q 0 0 0 rg BT 168.63 277.20 Td (The sale of a partial interest in an individual proved property is accounted for as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td (recovery of cost. ) Tj ET Q q 0 0 0 rg BT 128.50 264.00 Td (A) Tj ET Q q 0 0 0 rg BT 135.84 264.00 Td ( gain or loss on divestiture activity is recognized in the accompanying statements of operations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.80 Td (for all other sales of proved properties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 224.40 Td (The partial sale of unproved property is accounted for as a recovery of cost when substantial uncertainty ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (exists as to the ultimate recovery of the cost applicable to the interest retained. ) Tj ET Q q 0 0 0 rg BT 399.44 211.20 Td (A) Tj ET Q q 0 0 0 rg BT 406.77 211.20 Td ( gain on divestiture activity is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.00 Td (recognized to the extent that the sales price exceeds the carrying amount of the unproved property) Tj ET Q q 0 0 0 rg BT 480.26 198.00 Td (. ) Tj ET Q q 0 0 0 rg BT 487.90 198.00 Td (A) Tj ET Q q 0 0 0 rg BT 495.24 198.00 Td ( gain or loss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.80 Td (on divestiture activity is recognized in the accompanying statements of operations for all other sales of unproved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 171.60 Td (property) Tj ET Q q 0 0 0 rg BT 86.55 171.60 Td (. For additional discussion, please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 275.95 171.60 Td (Note 3 Divestitur) Tj ET Q q 0 0 0 rg BT 359.56 171.60 Td (es and ) Tj ET Q q 0 0 0 rg BT 390.53 171.60 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.44 171.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (Stock-Based Compensation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 121.20 Td (At ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.75 121.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.19 121.20 Td (, the Company had stock-based employee compensation plans that included RSUs, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 108.00 Td (PSUs, restricted stock awards, and stock options issued to employees and non-employee directors, as more fully ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 94.80 Td (described in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 106.20 94.80 Td (Note 7 - Compensation Plans. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 94.80 Td (The Company records expense associated with the fair value of stock-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 81.60 Td (based compensation in accordance with authoritative accounting guidance, which is based on the estimated fair ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 68.40 Td (value of these awards determined at the time of grant.) Tj ET Q endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (101) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Income T) Tj ET Q q 0 0 0 rg BT 90.23 734.40 Td (axes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company accounts for deferred income taxes whereby deferred tax assets and liabilities are recognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (based on the tax ef) Tj ET Q q 0 0 0 rg BT 132.27 696.00 Td (fects of temporary dif) Tj ET Q q 0 0 0 rg BT 227.67 696.00 Td (ferences between the carrying amounts on the financial statements and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (tax basis of assets and liabilities, as measured using current enacted tax rates. ) Tj ET Q q 0 0 0 rg BT 394.97 682.80 Td (These dif) Tj ET Q q 0 0 0 rg BT 436.00 682.80 Td (ferences will result in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (taxable income or deductions in future years when the reported amounts of the assets or liabilities are recorded or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (settled, respectively) Tj ET Q q 0 0 0 rg BT 136.64 656.40 Td (. ) Tj ET Q q 0 0 0 rg BT 144.69 656.40 Td (The Company records deferred tax assets and associated valuation allowances, when ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (appropriate, to reflect amounts more likely than not to be realized based upon Company analysis.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (Earnings per Shar) Tj ET Q q 0 0 0 rg BT 130.87 618.00 Td (e) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 592.80 Td (Basic net income \(loss\) per common share is calculated by dividing net income or loss available to common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.60 Td (stockholders by the basic weighted-average common shares outstanding for the respective period. ) Tj ET Q q 0 0 0 rg BT 488.14 579.60 Td (The earnings ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (per share calculations reflect the impact of any repurchases of shares of common stock made by the Company) Tj ET Q q 0 0 0 rg BT 532.81 566.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 541.20 Td (Diluted net income \(loss\) per common share is calculated by dividing adjusted net income or loss by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (diluted weighted-average common shares outstanding, which includes the ef) Tj ET Q q 0 0 0 rg BT 386.12 528.00 Td (fect of potentially dilutive securities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (Potentially dilutive securities for this calculation consist of in-the-money outstanding stock options, unvested RSUs, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (contingent PSUs, and shares into which the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 243.70 501.60 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.11 501.60 Td ( Senior Convertible Notes were convertible. ) Tj ET Q q 0 0 0 rg BT 471.08 501.60 Td (When there is a loss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (from continuing operations, as was the case for the year ended December 31, 2012, all potentially dilutive shares ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (are anti-dilutive and are consequently excluded from the calculation of diluted earnings per share.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 450.00 Td (PSUs represent the right to receive, upon settlement of the PSUs after the completion of the three-year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (performance period, a number of shares of the Company) Tj ET Q q 0 0 0 rg BT 302.00 436.80 Td (s common stock that may range from zero to two times the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (number of PSUs granted on the award date. ) Tj ET Q q 0 0 0 rg BT 247.14 423.60 Td (The number of potentially dilutive shares related to PSUs is based on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (the number of shares, if any) Tj ET Q q 0 0 0 rg BT 172.08 410.40 Td (, which would be issuable at the end of the respective reporting period, assuming that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (date was the end of the contingency period applicable to such PSUs. For additional discussion on PSUs, please ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 84.81 384.00 Td (Note 7 Compensation Plans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.20 384.00 Td ( under the heading ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 300.50 384.00 Td (Performance Shar) Tj ET Q q 0 0 0 rg BT 381.05 384.00 Td (e Units Under the Equity Incentive ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.08 370.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 345.60 Td (The Company called for redemption of its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.86 345.60 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.28 345.60 Td ( Senior Convertible Notes on ) Tj ET Q q 0 0 0 rg BT 432.74 345.60 Td (April2, 2012, after which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.40 Td (the majority of the holders of the outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.63 332.40 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.04 332.40 Td ( Senior Convertible Notes elected to convert their notes. ) Tj ET Q q 0 0 0 rg BT 532.46 332.40 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.20 Td (Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.78 319.20 Td (864,106) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 161.53 319.20 Td ( common shares upon conversion, and these shares were included in the calculation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 306.00 Td (basic weighted-average common shares outstanding for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.30 306.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.74 306.00 Td ( and all subsequent years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.80 Td (the shares remained outstanding. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 265.34 292.80 Td (Note 5 - Long-term Debt ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.86 292.80 Td (for additional discussion. Prior to calling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.60 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.19 279.60 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.60 279.60 Td ( Senior Convertible Notes for redemption, the Company) Tj ET Q q 0 0 0 rg BT 345.11 279.60 Td (s notes had a net-share settlement right giving ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.40 Td (the Company the option to irrevocably elect, by notice to the trustee under the indenture for the notes, to settle the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 253.20 Td (s obligation, in the event that holders of the notes elected to convert all or a portion of their notes, by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (delivering cash in an amount equal to each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 240.60 240.00 Td ($1,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 270.85 240.00 Td ( principal amount of notes surrendered for conversion and, if ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.80 Td (applicable, at the Company) Tj ET Q q 0 0 0 rg BT 173.41 226.80 Td (s option, shares of common stock or cash, or any combination of common stock and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (cash, for the amount of conversion value in excess of the principal amount. Prior to the settlement of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.40 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 200.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.86 200.40 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 131.28 200.40 Td ( Senior Convertible Notes, potentially dilutive shares associated with the conversion feature were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.20 Td (accounted for using the treasury stock method when shares of the Company) Tj ET Q q 0 0 0 rg BT 386.33 187.20 Td (s common stock traded at an average ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 174.00 Td (closing price that exceeded the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.35 174.00 Td ($54.42) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.60 174.00 Td ( conversion price. Shares of the Company) Tj ET Q q 0 0 0 rg BT 408.61 174.00 Td (s common stock traded at an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.80 Td (average closing price exceeding the conversion price and were included on an adjusted weighted basis for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.60 Td (portion of the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.32 147.60 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.76 147.60 Td (, for which they were outstanding. Shares of the Company) Tj ET Q q 0 0 0 rg BT 511.87 147.60 Td (s common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.40 Td (stock traded at an average closing price exceeding the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.75 134.40 Td ($54.42) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.00 134.40 Td ( conversion price for the year ended December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 121.20 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 121.20 Td (1, making the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 129.02 121.20 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 157.44 121.20 Td ( Senior Convertible Notes dilutive for that period. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 96.00 Td (The treasury stock method is used to measure the dilutive impact of in-the-money stock options, unvested ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (RSUs, contingent PSUs, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.14 82.80 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.56 82.80 Td ( Senior Convertible Notes. ) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (102) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following table details the weighted-average dilutive and anti-dilutive securities related to stock ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (options, RSUs, PSUs, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.85 721.20 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.27 721.20 Td ( Senior Convertible Notes for the years presented:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169.5 684.7 m 242.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 684.7 m 251.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 684.7 m 324.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 684.7 m 333.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 684.7 m 406.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169.5 670.7 m 242.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 670.7 m 324.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 670.7 m 406.5 670.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 206.00 688.75 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 194.50 674.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 276.50 674.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 358.80 674.75 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 254.00 660.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 646.57 Td (Dilutive) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.55 646.57 Td (1,383) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.30 646.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.55 646.57 Td (3,809) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 632.57 Td (Anti-dilutive) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.30 632.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.55 632.57 Td (2,102) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.30 632.57 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 604.00 Td (The following table sets forth the calculations of basic and diluted earnings per share:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 567.5 m 392.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 567.5 m 398.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 567.5 m 477.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 567.5 m 483.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 567.5 m 562.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 553.5 m 392.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 553.5 m 477.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 553.5 m 562.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 526.5 m 392.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 524.5 m 392.5 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 526.5 m 477.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 524.5 m 477.5 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 526.5 m 562.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 524.5 m 562.5 524.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 468.5 m 392.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 455.5 m 392.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 453.5 m 392.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 468.5 m 477.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 455.5 m 477.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 453.5 m 477.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 468.5 m 562.5 468.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 455.5 m 562.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 453.5 m 562.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 441.5 m 392.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 439.5 m 392.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 441.5 m 477.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 439.5 m 477.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 441.5 m 562.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 439.5 m 562.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 427.5 m 392.5 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 425.5 m 392.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 427.5 m 477.5 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 425.5 m 477.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 427.5 m 562.5 427.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 425.5 m 562.5 425.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 356.00 571.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 341.50 557.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.50 557.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 511.80 557.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 341.40 543.55 Td (\(in thousands, except per share amounts\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 529.37 Td (Net income \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.00 529.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.55 529.37 Td (170,935) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 529.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.35 529.37 Td (\(54,249) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.30 529.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.00 529.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 529.37 Td (215,416) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 515.37 Td (Basic weighted-average common shares outstanding) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.05 515.37 Td (66,615) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.05 515.37 Td (65,138) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 515.37 Td (63,755) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 62.00 500.42 Td (Add: dilutive effect of stock options, unvested RSUs,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 62.00 489.42 Td (and contingent PSUs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.55 489.42 Td (1,383) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.30 489.42 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 489.42 Td (2,592) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 62.00 473.42 Td (Add: dilutive effect of 3.50% Senior Convertible Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.30 473.42 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.30 473.42 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 473.42 Td (1,217) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 458.37 Td (Diluted weighted-average common shares outstanding) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.05 458.37 Td (67,998) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.05 458.37 Td (65,138) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 458.37 Td (67,564) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 444.37 Td (Basic net income \(loss\) per common share) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.00 444.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.05 444.37 Td (2.57) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 444.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.35 444.37 Td (\(0.83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.30 444.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.00 444.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 444.37 Td (3.38) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 430.37 Td (Diluted net income \(loss\) per common share) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.00 430.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.05 430.37 Td (2.51) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.00 430.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.35 430.37 Td (\(0.83) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.30 430.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.00 430.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 430.37 Td (3.19) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 401.80 Td (Compr) Tj ET Q q 0 0 0 rg BT 80.15 401.80 Td (ehensive Income \(Loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 376.60 Td (Comprehensive income \(loss\) is used to refer to net income \(loss\) plus other comprehensive income \(loss\). ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 363.40 Td (Other comprehensive income \(loss\) is comprised of revenues, expenses, gains, and losses that under GAAP) Tj ET Q q 0 0 0 rg BT 522.79 363.40 Td ( are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 350.20 Td (reported as separate components of stockholders) Tj ET Q q 0 0 0 rg BT 266.36 350.20 Td ( equity instead of net income \(loss\). Comprehensive income \(loss\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 337.00 Td (is presented net of income taxes in the accompanying consolidated statements of comprehensive income \(loss\).) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 311.80 Td (The changes in the balances of components comprising other comprehensive income \(loss\) are presented in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 298.60 Td (the following table:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 251.10000000000002 m 450.5 251.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 251.10000000000002 m 558.5 251.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 195.10000000000002 m 450.5 195.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 182.10000000000002 m 450.5 182.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 180.10000000000002 m 450.5 180.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 195.10000000000002 m 558.5 195.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 182.10000000000002 m 558.5 182.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 180.10000000000002 m 558.5 180.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 139.10000000000002 m 450.5 139.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 126.10000000000002 m 450.5 126.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 124.10000000000002 m 450.5 124.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 139.10000000000002 m 558.5 139.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 126.10000000000002 m 558.5 126.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 124.10000000000002 m 558.5 124.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 83.10000000000002 m 450.5 83.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 70.10000000000002 m 450.5 70.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 68.10000000000002 m 450.5 68.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 83.10000000000002 m 558.5 83.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 70.10000000000002 m 558.5 70.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 68.10000000000002 m 558.5 68.10000000000002 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 375.55 278.00 Td (Derivative) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 357.35 267.00 Td (Reclassification to) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 378.60 256.00 Td (Earnings) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 468.10 267.00 Td (Pension Liability) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 478.05 256.00 Td (Adjustments) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 420.50 241.15 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 226.97 Td (For the year ended December 31, 2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 212.97 Td (Before tax income \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 212.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 416.05 212.97 Td (20,707) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 212.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.85 212.97 Td (\(2,779) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.30 212.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 198.97 Td (Tax benefit \(expense\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.85 198.97 Td (\(7,710) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.30 198.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 537.80 198.97 Td (984) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 184.97 Td (Income \(loss\), net of tax) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 184.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 416.05 184.97 Td (12,997) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 184.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.85 184.97 Td (\(1,795) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.30 184.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 170.97 Td (For the year ended December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 156.97 Td (Before tax loss) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 156.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.85 156.97 Td (\(3,865) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.30 156.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 156.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.85 156.97 Td (\(3,909) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.30 156.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 142.97 Td (Tax benefit) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.55 142.97 Td (1,601) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.55 142.97 Td (1,439) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 128.97 Td (Loss, net of tax) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 128.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.85 128.97 Td (\(2,264) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.30 128.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 128.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.85 128.97 Td (\(2,470) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.30 128.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 114.97 Td (For the year ended December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 100.97 Td (Before tax income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 100.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.55 100.97 Td (1,777) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 100.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.55 100.97 Td (4,005) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 86.97 Td (Tax expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.10 86.97 Td (\(662) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.30 86.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.85 86.97 Td (\(1,522) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.30 86.97 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 72.97 Td (Income, net of tax) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 72.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.55 72.97 Td (1,115) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 72.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.55 72.97 Td (2,483) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 207 0 obj <> endobj 208 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (103) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Fair V) Tj ET Q q 0 0 0 rg BT 77.81 734.40 Td (alue of Financial Instruments) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 709.20 Td (s financial instruments including cash and cash equivalents, accounts receivable, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (accounts payable are carried at cost, which approximates fair value due to the short-term maturity of these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 109.38 682.80 Td (The recorded value of the Company) Tj ET Q q 0 0 0 rg BT 270.96 682.80 Td (s credit facility approximates its fair value as it bears interest at a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (floating rate that approximates a current market rate. ) Tj ET Q q 0 0 0 rg BT 286.81 669.60 Td (The Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.82 669.60 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 381.82 669.60 Td ( borrowings outstanding under its credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (facility as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 107.73 656.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 194.17 656.40 Td (. ) Tj ET Q q 0 0 0 rg BT 202.22 656.40 Td (The Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.23 656.40 Td ($340.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.01 656.40 Td ( of outstanding loans under its credit facility as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.91 643.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 148.36 643.20 Td (. ) Tj ET Q q 0 0 0 rg BT 156.41 643.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 222.09 643.20 Td (s Senior Notes are recorded at cost and the respective fair values are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (disclosed in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 104.99 630.00 Td (Note 1) Tj ET Q q 0 0 0 rg BT 133.20 630.00 Td (1 - Fair V) Tj ET Q q 0 0 0 rg BT 175.67 630.00 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 230.56 630.00 Td (ements.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.86 630.00 Td ( ) Tj ET Q q 0 0 0 rg BT 269.16 630.00 Td (The Company has derivative financial instruments that are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (recorded at fair value. Considerable judgment is required to develop estimates of fair value. ) Tj ET Q q 0 0 0 rg BT 460.93 616.80 Td (The estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (provided are not necessarily indicative of the amounts the Company would realize upon the sale or refinancing of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.40 Td (such instruments.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (Industry Segment and Geographic Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 540.00 Td (The Company operates exclusively in the exploration and production segment of the oil and gas industry ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (and all of the Company) Tj ET Q q 0 0 0 rg BT 156.31 526.80 Td (s operations are conducted entirely within the United States. ) Tj ET Q q 0 0 0 rg BT 426.45 526.80 Td (The Company reports as a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (single industry segment. ) Tj ET Q q 0 0 0 rg BT 162.54 513.60 Td (The Company) Tj ET Q q 0 0 0 rg BT 228.22 513.60 Td (s gas marketing function provides mostly internal services and acts as the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (first purchaser of natural gas and natural gas liquids produced by the Company in certain cases. ) Tj ET Q q 0 0 0 rg BT 475.00 500.40 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (considers its marketing function as ancillary to its oil and gas producing activities. ) Tj ET Q q 0 0 0 rg BT 417.30 487.20 Td (The amount of income these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (operations generate from marketing gas produced by third parties is not material to the Company) Tj ET Q q 0 0 0 rg BT 479.49 474.00 Td (s results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (operations, and segmentation of such activity would not provide a better understanding of the Company) Tj ET Q q 0 0 0 rg BT 509.75 460.80 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (performance. However) Tj ET Q q 0 0 0 rg BT 153.70 447.60 Td (, gross revenue and expense related to marketing activities for gas produced by third parties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (are presented in the marketed gas system revenue and marketed gas system expense line items in the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (statements of operations. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 132.88 394.80 Td (Arrangements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 369.60 Td (The Company has not participated in transactions that generate relationships with unconsolidated entities or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 356.40 Td (financial partnerships, such as entities often referred to as structured finance or special purpose entities \(SPEs\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 343.20 Td (which would have been established for the purpose of facilitating of) Tj ET Q q 0 0 0 rg BT 349.15 343.20 Td (f-balance sheet arrangements or other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.00 Td (contractually narrow or limited purposes. ) Tj ET Q q 0 0 0 rg BT 237.05 330.00 Td (The Company has not been involved in any unconsolidated SPE ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.80 Td (transactions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 291.60 Td (The Company evaluates its transactions to determine if any variable interest entities exist. If it is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 278.40 Td (determined that SM Ener) Tj ET Q q 0 0 0 rg BT 160.69 278.40 Td (gy is the primary beneficiary of a variable interest entity) Tj ET Q q 0 0 0 rg BT 407.68 278.40 Td (, that entity is consolidated into ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 265.20 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 89.21 265.20 Td (gy) Tj ET Q q 0 0 0 rg BT 99.50 265.20 Td (. ) Tj ET Q q 0 0 0 rg BT 107.14 265.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.03 265.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.47 265.20 Td (, all variable interest entities have been consolidated.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 121.27 240.00 Td (Accounting Standar) Tj ET Q q 0 0 0 rg BT 208.54 240.00 Td (ds) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 214.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 214.80 Td (On January1, 2013, the Company adopted new authoritative accounting guidance issued by the Financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.60 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 193.68 201.60 Td (ASB\), which enhanced disclosures by requiring an entity to disclose information ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.40 Td (about netting arrangements, including rights of of) Tj ET Q q 0 0 0 rg BT 268.22 188.40 Td (fset, to enable users of its financial statements to understand the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 175.20 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 175.20 Td (fect of those arrangements on its financial position and provided clarification as to the specific instruments that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.00 Td (should be considered in these disclosures. ) Tj ET Q q 0 0 0 rg BT 239.21 162.00 Td (These pronouncements were issued to facilitate comparison between ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 148.80 Td (financial statements prepared on the basis of GAAP) Tj ET Q q 0 0 0 rg BT 277.78 148.80 Td ( and International Financial Reporting Standards. ) Tj ET Q q 0 0 0 rg BT 499.97 148.80 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 135.60 Td (disclosures are ef) Tj ET Q q 0 0 0 rg BT 126.16 135.60 Td (fective for annual and interim reporting periods beginning on or after January 1, 2013, and are to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.40 Td (be applied retrospectively for all comparative periods presented. ) Tj ET Q q 0 0 0 rg BT 338.13 122.40 Td (The impact of retrospectively adopting these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.20 Td (pronouncements did not have a material impact on the Company) Tj ET Q q 0 0 0 rg BT 337.45 109.20 Td (s consolidated financial statements, but did impact ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.00 Td (the Company) Tj ET Q q 0 0 0 rg BT 112.02 96.00 Td (s disclosures. See ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 194.82 96.00 Td (Note 10 - Derivative Financial Instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.14 96.00 Td ( for tabular presentation of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.80 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 82.80 Td (s gross and net derivative positions.) Tj ET Q endstream endobj 209 0 obj <> endobj 210 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (104) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (On January1, 2013, the Company adopted the presentation requirements of new authoritative accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (guidance issued by the F) Tj ET Q q 0 0 0 rg BT 157.94 721.20 Td (ASB in February 2013. ) Tj ET Q q 0 0 0 rg BT 265.91 721.20 Td (The purpose of the guidance was to improve the reporting of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (reclassifications out of accumulated other comprehensive income \(loss\) \(AOCIL\) by requiring entities to report ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (the ef) Tj ET Q q 0 0 0 rg BT 74.54 694.80 Td (fect of significant reclassifications out of ) Tj ET Q q 0 0 0 rg BT 256.59 694.80 Td (AOCIL) Tj ET Q q 0 0 0 rg BT 289.79 694.80 Td ( into current year income within the respective line items in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (net income. ) Tj ET Q q 0 0 0 rg BT 106.62 681.60 Td (The presentation of those amounts may be on the face of the financial statements or in the notes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (thereto. ) Tj ET Q q 0 0 0 rg BT 85.84 668.40 Td (This amendment was ef) Tj ET Q q 0 0 0 rg BT 190.42 668.40 Td (fective prospectively for periods beginning after December15, 2012, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (Company's financial statements and disclosures were not significantly impacted. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 628.80 Td (In February 2013, the F) Tj ET Q q 0 0 0 rg BT 189.36 628.80 Td (ASB issued new authoritative accounting guidance related to the recognition and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (measurement of obligations arising from joint and several liability arrangements. ) Tj ET Q q 0 0 0 rg BT 411.48 615.60 Td (This authoritative accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (guidance is ef) Tj ET Q q 0 0 0 rg BT 110.89 602.40 Td (fective for interim and annual periods beginning after December 15, 2013 and is to be applied ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (retrospectively) Tj ET Q q 0 0 0 rg BT 114.65 589.20 Td (. Based on its evaluation, the Company determined this guidance does not currently impact the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 576.00 Td (s financial statements and disclosures. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 549.60 Td (In July 2013, the F) Tj ET Q q 0 0 0 rg BT 167.99 549.60 Td (ASB issued new authoritative accounting guidance related to the reporting of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (unrecognized tax benefits when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (The guidance states an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.80 Td (loss, or a tax credit carry-forward, with certain exceptions. ) Tj ET Q q 0 0 0 rg BT 312.78 496.80 Td (This authoritative accounting guidance is ef) Tj ET Q q 0 0 0 rg BT 505.32 496.80 Td (fective for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.60 Td (interim and annual periods beginning after December 15, 2013, and is to be applied prospectively to all ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.40 Td (unrecognized tax benefits that exist at the ef) Tj ET Q q 0 0 0 rg BT 243.75 470.40 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 302.80 470.40 Td (The Company elected to early adopt this guidance in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 457.20 Td (December 2013, which does not significantly af) Tj ET Q q 0 0 0 rg BT 260.88 457.20 Td (fect the Company's financial statements and related disclosures.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 444.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 430.80 Td (There are no new significant accounting standards applicable to the Company that have been issued but not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 417.60 Td (yet adopted by the Company as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.05 417.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.49 417.60 Td (. ) Tj ET Q endstream endobj 211 0 obj <> endobj 212 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (105) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Note 2 ) Tj ET Q q 0 0 0 rg BT 90.63 734.60 Td (Accounts Receivable and ) Tj ET Q q 0 0 0 rg BT 210.10 734.60 Td (Accounts Payable and ) Tj ET Q q 0 0 0 rg BT 316.14 734.60 Td (Accrued Expenses ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (Accounts receivable are comprised of the following:) Tj ET Q 0 0 0 RG 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/GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 570.9 m 562.5 570.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 568.9 m 562.5 568.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 396.05 676.95 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 363.50 663.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.50 663.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 408.00 650.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 637.82 Td (Accrued oil, gas, and NGL production revenue) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.00 637.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.55 637.82 Td (228,169) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 637.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 637.82 Td (160,568) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 624.82 Td (Amounts due from joint interest owners) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 624.82 Td (37,517) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 624.82 Td (42,740) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 611.82 Td (Acquisition and Development Agreement receivable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.30 611.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 611.82 Td (19,931) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 598.82 Td (State severance tax refunds) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 598.82 Td (29,213) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 598.82 Td (17,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 585.82 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 585.82 Td (23,472) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 585.82 Td (14,329) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 572.82 Td (Total accounts receivable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.00 572.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.55 572.82 Td (318,371) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 572.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 572.82 Td (254,805) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 545.20 Td (Accounts payable and accrued expenses are comprised of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 509.7 m 429.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 509.7 m 455.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 509.7 m 562.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 509.7 m 429.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 496.7 m 429.5 496.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 509.7 m 455.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 509.7 m 562.5 509.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 496.7 m 562.5 496.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 379.7 m 429.5 379.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 379.7 m 562.5 379.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 379.7 m 429.5 379.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 367.7 m 429.5 367.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 365.7 m 429.5 365.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 379.7 m 562.5 379.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 367.7 m 562.5 367.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 365.7 m 562.5 365.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 396.55 512.75 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.50 499.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 497.50 499.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 408.50 486.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 473.62 Td (Accrued capital expenditures) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.00 473.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.55 473.62 Td (217,820) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 473.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 473.62 Td (243,611) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 460.62 Td (Revenue and severance tax payable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 460.62 Td (87,852) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 460.62 Td (65,494) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 447.62 Td (Accrued lease operating expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 447.62 Td (29,296) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 447.62 Td (28,037) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 434.62 Td (Accrued property taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 434.62 Td (10,401) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 434.62 Td (9,478) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 421.62 Td (Joint owner advances) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 421.62 Td (96,636) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 421.62 Td (69,639) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 408.62 Td (Accrued compensation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 408.62 Td (71,466) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 408.62 Td (35,607) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 395.62 Td (Accrued interest) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 395.62 Td (40,027) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 395.62 Td (25,027) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 382.62 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.05 382.62 Td (53,253) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 382.62 Td (48,734) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 369.62 Td (Total accounts payable and accrued expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.00 369.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.55 369.62 Td (606,751) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 369.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 369.62 Td (525,627) Tj ET Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 341.95 Td (Note 3 Divestitur) Tj ET Q q 0 0 0 rg BT 137.59 341.95 Td (es and ) Tj ET Q q 0 0 0 rg BT 169.38 341.95 Td (Assets Held for) Tj ET Q q 0 0 0 rg BT 240.67 341.95 Td ( Sale) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 316.75 Td (2013 Divestitur) Tj ET Q q 0 0 0 rg BT 117.84 316.75 Td (e ) Tj ET Q q 0 0 0 rg BT 125.27 316.75 Td (Activity) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 67.50 290.35 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.35 290.35 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 290.35 Td (Mid-Continent Divestitur) Tj ET Q q 0 0 0 rg BT 196.61 290.35 Td (es. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.02 290.35 Td (In December 2013, the Company divested of certain non-strategic assets ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 277.15 Td (located in its Mid-Continent region, with the lar) Tj ET Q q 0 0 0 rg BT 296.10 277.15 Td (gest transaction being the sale of the Company) Tj ET Q q 0 0 0 rg BT 504.74 277.15 Td (s ) Tj ET Q q 0 0 0 rg BT 511.16 277.15 Td (Anadarko ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 263.95 Td (Basin assets. ) Tj ET Q q 0 0 0 rg BT 147.02 263.95 Td (T) Tj ET Q q 0 0 0 rg BT 152.97 263.95 Td (otal cash proceeds received at closing \(referred throughout this report as divestiture ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 250.75 Td (proceeds\) were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.01 250.75 Td ($370.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.79 250.75 Td (. ) Tj ET Q q 0 0 0 rg BT 232.84 250.75 Td (The estimated net gain on these divestitures is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.12 250.75 Td ($29.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.40 250.75 Td (. ) Tj ET Q q 0 0 0 rg BT 505.46 250.75 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 237.55 Td (divestitures are subject to normal post-closing adjustments and are expected to be finalized during the first ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 224.35 Td (half of 2014. ) Tj ET Q q 0 0 0 rg BT 146.91 224.35 Td (A) Tj ET Q q 0 0 0 rg BT 154.24 224.35 Td ( portion of one transaction was structured to qualify as a like-kind exchange under Section ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 211.15 Td (1031 of the Internal Revenue Code of 1986, as amended \(the Internal Revenue Code\).) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 67.50 184.75 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 184.75 Td (Rocky Mountain Divestitur) Tj ET Q q 0 0 0 rg BT 204.23 184.75 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.39 184.75 Td (. During 2013, the Company divested of certain non-strategic assets located in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 171.55 Td (its Rocky Mountain region. ) Tj ET Q q 0 0 0 rg BT 211.79 171.55 Td (T) Tj ET Q q 0 0 0 rg BT 217.74 171.55 Td (otal divestiture proceeds were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.13 171.55 Td ($56.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.41 171.55 Td (. ) Tj ET Q q 0 0 0 rg BT 419.46 171.55 Td (The estimated net gain on these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 158.35 Td (divestitures is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 149.05 158.35 Td ($10.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 208.33 158.35 Td (. ) Tj ET Q q 0 0 0 rg BT 216.38 158.35 Td (These divestitures are subject to normal post-closing adjustments and are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 145.15 Td (expected to be finalized during the first half of 2014.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 67.50 118.75 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 118.75 Td (Permian Divestitur) Tj ET Q q 0 0 0 rg BT 169.72 118.75 Td (e) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.60 118.75 Td (. In December 2013, the Company divested of certain non-strategic assets located in its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 105.55 Td (Permian region. ) Tj ET Q q 0 0 0 rg BT 161.06 105.55 Td (T) Tj ET Q q 0 0 0 rg BT 167.01 105.55 Td (otal divestiture proceeds were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.40 105.55 Td ($14.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.68 105.55 Td (. ) Tj ET Q q 0 0 0 rg BT 368.73 105.55 Td (The estimated net loss on this divestiture is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 92.35 Td ($6.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 139.28 92.35 Td (. ) Tj ET Q q 0 0 0 rg BT 147.33 92.35 Td (This divestiture is subject to normal post-closing adjustments and is expected to be finalized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 79.20 Td (during the first half of 2014.) Tj ET Q endstream endobj 213 0 obj <> endobj 214 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (106) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 734.40 Td (The Company recorded an immaterial write-down to fair value less estimated costs to sale for assets that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.20 Td (were held for sale as of December 31, 2013, which was reflected in the gain \(loss\) on divestiture activity line item in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 708.00 Td (the accompanying statements of operations. See section ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 300.29 708.00 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.19 708.00 Td ( below for further discussion. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 681.60 Td (2012 Divestitur) Tj ET Q q 0 0 0 rg BT 117.84 681.60 Td (e ) Tj ET Q q 0 0 0 rg BT 125.27 681.60 Td (Activity) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 655.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 655.20 Td (In 2012, the Company divested of various non-strategic properties located in its Rocky Mountain and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 642.00 Td (Mid-Continent regions. Final divestiture proceeds, after the transactions post-closed in 2013, were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.56 642.00 Td ($57.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 546.84 642.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 628.80 Td (and the final net gain on these divestitures was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.53 628.80 Td ($7.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.31 628.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 602.40 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 602.40 Td (During 2012, the Company reclassified a portion of the assets previously held for sale to assets held and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 589.20 Td (used, as the assets were no longer being actively marketed. ) Tj ET Q q 0 0 0 rg BT 314.13 589.20 Td (The assets were measured at the lower of the carrying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 576.00 Td (value of the assets before being classified as held for sale, adjusted for any DD&A) Tj ET Q q 0 0 0 rg BT 412.08 576.00 Td ( that would have been recognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 562.80 Td (had the assets been continuously held and used, or the fair value of the assets at the date they no longer met the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 549.60 Td (criteria as held for sale. ) Tj ET Q q 0 0 0 rg BT 157.31 549.60 Td (As a result of this measurement, the Company recognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.52 549.60 Td ($1.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.30 549.60 Td ( of DD&A) Tj ET Q q 0 0 0 rg BT 514.74 549.60 Td ( expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 536.40 Td (and a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.76 536.40 Td ($33.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.05 536.40 Td ( loss on unsuccessful sale of properties, which is included in gain \(loss\) on divestiture activity in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 523.20 Td (the accompanying statements of operations.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 496.80 Td (201) Tj ET Q q 0 0 0 rg BT 65.18 496.80 Td (1 Divestitur) Tj ET Q q 0 0 0 rg BT 117.02 496.80 Td (e ) Tj ET Q q 0 0 0 rg BT 124.45 496.80 Td (Activity) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 67.50 470.40 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 470.40 Td (Eagle For) Tj ET Q q 0 0 0 rg BT 130.00 470.40 Td (d Shale Divestitur) Tj ET Q q 0 0 0 rg BT 209.02 470.40 Td (e. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.16 470.40 Td (In ) Tj ET Q q 0 0 0 rg BT 233.46 470.40 Td (August 201) Tj ET Q q 0 0 0 rg BT 284.09 470.40 Td (1, the Company divested of certain operated Eagle Ford shale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 457.20 Td (assets located in its South ) Tj ET Q q 0 0 0 rg BT 201.10 457.20 Td (T) Tj ET Q q 0 0 0 rg BT 207.05 457.20 Td (exas & Gulf Coast region. ) Tj ET Q q 0 0 0 rg BT 327.52 457.20 Td (This divestiture was comprised of the Company) Tj ET Q q 0 0 0 rg BT 541.37 457.20 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 444.00 Td (entire operated acreage in LaSalle County) Tj ET Q q 0 0 0 rg BT 269.56 444.00 Td (, ) Tj ET Q q 0 0 0 rg BT 274.86 444.00 Td (T) Tj ET Q q 0 0 0 rg BT 280.81 444.00 Td (exas, as well as an immaterial adjacent block of its operated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 430.80 Td (acreage in Dimmit County) Tj ET Q q 0 0 0 rg BT 201.78 430.80 Td (, ) Tj ET Q q 0 0 0 rg BT 207.09 430.80 Td (T) Tj ET Q q 0 0 0 rg BT 213.04 430.80 Td (exas. ) Tj ET Q q 0 0 0 rg BT 240.63 430.80 Td (T) Tj ET Q q 0 0 0 rg BT 246.58 430.80 Td (otal divestiture proceeds were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.97 430.80 Td ($230.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.76 430.80 Td (. ) Tj ET Q q 0 0 0 rg BT 453.81 430.80 Td (The final gain on this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 417.60 Td (divestiture was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.54 417.60 Td ($193.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 219.32 417.60 Td (. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 293.23 417.60 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 336.72 417.60 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 469.41 417.60 Td (Agr) Tj ET Q q 0 0 0 rg BT 485.50 417.60 Td (eement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 519.40 417.60 Td (for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 404.40 Td (information on additional Eagle Ford activity in 201) Tj ET Q q 0 0 0 rg BT 315.13 404.40 Td (1. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 67.50 378.00 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 378.00 Td (Mid-Continent Divestitur) Tj ET Q q 0 0 0 rg BT 196.61 378.00 Td (e. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.74 378.00 Td (In June 201) Tj ET Q q 0 0 0 rg BT 260.66 378.00 Td (1, the Company divested of certain non-strategic assets located in its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 364.80 Td (Mid-Continent region. ) Tj ET Q q 0 0 0 rg BT 189.79 364.80 Td (T) Tj ET Q q 0 0 0 rg BT 195.74 364.80 Td (otal divestiture proceeds were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.13 364.80 Td ($35.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.41 364.80 Td (. ) Tj ET Q q 0 0 0 rg BT 397.46 364.80 Td (The final gain on this divestiture was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 351.60 Td ($28.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 144.78 351.60 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 67.50 325.20 Td ( ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 85.50 325.20 Td (Rocky Mountain Divestitur) Tj ET Q q 0 0 0 rg BT 204.23 325.20 Td (e. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.36 325.20 Td (In January 201) Tj ET Q q 0 0 0 rg BT 282.32 325.20 Td (1, the Company divested of certain non-strategic assets located ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 312.00 Td (in its Rocky Mountain region. ) Tj ET Q q 0 0 0 rg BT 223.10 312.00 Td (T) Tj ET Q q 0 0 0 rg BT 229.05 312.00 Td (otal divestiture proceeds were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.44 312.00 Td ($45.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.72 312.00 Td (. ) Tj ET Q q 0 0 0 rg BT 430.77 312.00 Td (The final gain on this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 298.80 Td (divestiture was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 154.54 298.80 Td ($27.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.82 298.80 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 49.50 272.40 Td (Assets Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 247.20 Td (Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 234.00 Td (reasonable certainty the sale will take place within ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.30 234.00 Td (one) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.18 234.00 Td ( year) Tj ET Q q 0 0 0 rg BT 311.25 234.00 Td (. Upon classification as held for sale, long-lived assets ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 220.80 Td (are no longer depreciated or depleted, and a measurement for impairment is performed to identify and expense any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 207.60 Td (excess of carrying value over fair value less costs to sell. Subsequent changes to the estimated fair value less the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 194.40 Td (costs to sell will impact the measurement of assets held for sale for which fair value less costs to sell is determined ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 181.20 Td (to be less than the carrying value of the assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 154.80 Td (A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 92.72 154.80 Td (s of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 111.67 154.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.11 154.80 Td (, the accompanying balance sheets present ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.17 154.80 Td ($19.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.45 154.80 Td ( of assets held for sale, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (net of accumulated depletion, depreciation, and amortization expense. ) Tj ET Q q 0 0 0 rg BT 362.27 141.60 Td (A) Tj ET Q q 0 0 0 rg BT 369.61 141.60 Td ( corresponding asset retirement obligation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 128.40 Td (liability of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 98.38 128.40 Td ($3.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.16 128.40 Td ( is separately presented. ) Tj ET Q q 0 0 0 rg BT 262.53 128.40 Td (The assets held for sale include the Company) Tj ET Q q 0 0 0 rg BT 465.06 128.40 Td (s Marcellus shale ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 115.20 Td (assets located in Pennsylvania and other certain non-strategic assets in exploratory areas, all of which are recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 102.00 Td (at the lesser of their carrying values or their respective fair value less estimated costs to sell. ) Tj ET Q q 0 0 0 rg BT 459.52 102.00 Td (W) Tj ET Q q 0 0 0 rg BT 469.46 102.00 Td (rite-downs to fair ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 88.80 Td (value less estimated costs to sell are reflected in the gain \(loss\) on divestiture activity line item in the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 75.60 Td (statements of operations. ) Tj ET Q endstream endobj 215 0 obj <> endobj 216 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (107) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 734.40 Td (The Company determined that neither these planned nor executed asset sales qualify for discontinued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.20 Td (operations accounting under financial statement presentation authoritative guidance.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 694.80 Td (Subsequent to December 31, 2013, the Company began marketing certain non-strategic assets in its Rocky ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 681.60 Td (Mountain region. ) Tj ET Q q 0 0 0 rg BT 131.18 681.60 Td (The Company expects the closing of these asset sales will occur in the first half of 2014. ) Tj ET Q q 0 0 0 rg BT 525.35 681.60 Td (These ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 668.40 Td (assets were not classified as held for sale as of December 31, 2013.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 642.00 Td (Note 4 Income ) Tj ET Q q 0 0 0 rg BT 128.12 642.00 Td (T) Tj ET Q q 0 0 0 rg BT 134.44 642.00 Td (axes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 616.80 Td (The provision for income taxes consists of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 580.3 m 372 580.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 580.3 m 386 580.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 580.3 m 455 580.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 580.3 m 469 580.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 580.3 m 538 580.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 566.3 m 372 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 566.3 m 455 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 566.3 m 538 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 498.3 m 372 498.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 485.3 m 372 485.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 483.3 m 372 483.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 498.3 m 455 498.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 485.3 m 455 485.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 483.3 m 455 483.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 498.3 m 538 498.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 485.3 m 538 485.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 483.3 m 538 483.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 471.3 m 372 471.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 469.3 m 372 469.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 471.3 m 455 471.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 469.3 m 455 469.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 471.3 m 538 471.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 469.3 m 538 469.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.50 584.35 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 326.00 570.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 409.00 570.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 492.30 570.35 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 386.50 556.35 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.50 542.22 Td (Current portion of income tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 529.17 Td (Federal) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.50 529.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.30 529.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 529.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.30 529.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.50 529.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.85 529.17 Td (\(1,757) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.30 529.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 515.17 Td (State) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 337.55 515.17 Td (2,121) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.80 515.17 Td (370) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.55 515.17 Td (1,553) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.50 501.22 Td (Deferred portion of income tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.50 501.22 Td (105,555) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.35 501.22 Td (\(29,638) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.30 501.22 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.50 501.22 Td (123,789) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.50 488.17 Td (Total income tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.50 488.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.50 488.17 Td (107,676) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 488.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.35 488.17 Td (\(29,268) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.30 488.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.50 488.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.50 488.17 Td (123,585) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 474.17 Td (Effective tax rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 343.05 474.17 Td (38.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.30 474.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.05 474.17 Td (35.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.30 474.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.05 474.17 Td (36.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.30 474.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 445.60 Td (The Company reduces its income tax payable to reflect employee stock option exercises. ) Tj ET Q q 0 0 0 rg BT 481.47 445.60 Td (There was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.73 445.60 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 540.73 445.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 432.40 Td (excess income tax benefit associated with stock awards in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.00 432.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.00 432.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.50 432.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.50 432.40 Td (, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 373.91 432.40 Td (201) Tj ET Q q 0 0 0 rg BT 390.01 432.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.51 432.40 Td (.) Tj ET Q endstream endobj 217 0 obj <> endobj 218 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (108) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 734.40 Td (The components of the net deferred income tax liabilities are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 697.9 m 434 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 697.9 m 448 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 697.9 m 525 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 683.9 m 434 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 683.9 m 525 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 613.9 m 434 613.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 613.9 m 525 613.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 599.9 m 434 599.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 599.9 m 525 599.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 529.9 m 434 529.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 529.9 m 525 529.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 501.9 m 434 501.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 501.9 m 525 501.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 487.9 m 434 487.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 487.9 m 525 487.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 445.9 m 434 445.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 432.9 m 434 432.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 430.9 m 434 430.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 445.9 m 525 445.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 432.9 m 525 432.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 430.9 m 525 430.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 395.05 701.95 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 384.00 687.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 475.00 687.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 407.00 673.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 659.77 Td (Deferred tax liabilities:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 645.77 Td (Oil and gas properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.50 645.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 645.77 Td (768,463) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.50 645.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 645.77 Td (678,624) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 631.77 Td (Derivative asset) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.05 631.77 Td (9,529) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 631.77 Td (15,942) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 617.77 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.05 617.77 Td (1,245) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.05 617.77 Td (6,443) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 603.77 Td (Total deferred tax liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 603.77 Td (779,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 603.77 Td (701,009) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 589.77 Td (Deferred tax assets:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 575.77 Td (Federal and state tax net operating loss carryovers) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.55 575.77 Td (91,788) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 575.77 Td (113,522) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 561.77 Td (Net Profits Plan liability) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.55 561.77 Td (20,913) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 561.77 Td (29,233) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 547.77 Td (Stock compensation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.55 547.77 Td (18,820) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 547.77 Td (18,026) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 533.77 Td (Other long-term liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.55 533.77 Td (13,341) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 533.77 Td (16,739) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 519.77 Td (Total deferred tax assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 519.77 Td (144,862) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 519.77 Td (177,520) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 505.77 Td (Valuation allowance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.35 505.77 Td (\(5,001) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.80 505.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.35 505.77 Td (\(5,315) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.80 505.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 491.77 Td (Net deferred tax assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 491.77 Td (139,861) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 491.77 Td (172,205) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 477.77 Td (Total net deferred tax liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 477.77 Td (639,376) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 477.77 Td (528,804) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 463.77 Td (Less: current deferred income tax liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.60 463.77 Td (\(172) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.80 463.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.35 463.77 Td (\(5,442) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.80 463.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.50 449.77 Td (Add: current deferred income tax assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.55 449.77 Td (10,921) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.55 449.77 Td (14,021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 435.77 Td (Non-current net deferred tax liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.50 435.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 435.77 Td (650,125) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.50 435.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.05 435.77 Td (537,383) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 421.77 Td (Current federal income tax refundable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.50 421.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.05 421.77 Td (4,630) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.50 421.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.05 421.77 Td (2,511) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 407.77 Td (Current state income tax refundable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.50 407.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 407.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.50 407.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.30 407.77 Td (853) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 393.77 Td (Current state income tax payable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.50 393.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.05 393.77 Td (1,460) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.50 393.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.80 393.77 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 365.20 Td (At ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.25 365.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 185.69 365.20 Td (, the Company estimated its federal net operating loss carryforward at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.42 365.20 Td ($376.1 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 352.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.28 352.00 Td (, which includes unrecognized excess income tax benefits associated with stock awards of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.21 352.00 Td ($126.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.99 352.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 338.80 Td (The Company expects future excess benefit utilization to be recognized using the with-and-without method. ) Tj ET Q q 0 0 0 rg BT 530.11 338.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 325.60 Td (federal net operating loss carryforward begins to expire in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.60 325.60 Td (2031) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.60 325.60 Td (. ) Tj ET Q q 0 0 0 rg BT 337.65 325.60 Td (The Company has estimated state net operating ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 312.40 Td (loss carryforwards of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.72 312.40 Td ($147.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.50 312.40 Td ( that expire between ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.12 312.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.12 312.40 Td ( and 2034. ) Tj ET Q q 0 0 0 rg BT 375.56 312.40 Td (The Company has federal research and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 299.20 Td (development \(R&D\) credit carryforwards of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.88 299.20 Td ($5.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.66 299.20 Td ( that expire between 2028 and 2031. ) Tj ET Q q 0 0 0 rg BT 475.72 299.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 541.41 299.20 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 286.00 Td (valuation allowance relates to charitable contribution carryfowards, state net operating loss carryforwards, state tax ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 272.80 Td (credits, and state and federal income tax benefit amounts, which the Company anticipates will expire before they ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 259.60 Td (can be utilized. ) Tj ET Q q 0 0 0 rg BT 121.69 259.60 Td (The change in the valuation allowance from 2012 to 2013 primarily reflects utilization of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 246.40 Td (Oklahoma net operating losses resulting from the 2013 ) Tj ET Q q 0 0 0 rg BT 293.29 246.40 Td (Anadarko Basin asset divestiture gain of) Tj ET Q q 0 0 0 rg BT 471.18 246.40 Td (fset in part by a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 233.20 Td (change in the Company) Tj ET Q q 0 0 0 rg BT 156.72 233.20 Td (s position regarding anticipated utilization of cumulative net operating losses attributed to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 220.00 Td (other states. ) Tj ET Q endstream endobj 219 0 obj <> endobj 220 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (109) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 734.40 Td (Federal income tax expense dif) Tj ET Q q 0 0 0 rg BT 222.75 734.40 Td (fers from the amount that would be provided by applying the statutory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 721.20 Td (United States federal income tax rate to income before income taxes primarily due to the ef) Tj ET Q q 0 0 0 rg BT 450.95 721.20 Td (fect of state income ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 708.00 Td (taxes, changes in valuation allowances, percentage depletion, R&D credits, and other permanent dif) Tj ET Q q 0 0 0 rg BT 488.53 708.00 Td (ferences, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 694.80 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 670.3 m 340 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340 670.3 m 354 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 670.3 m 423 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 670.3 m 437 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 670.3 m 506 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 670.3 m 340 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 656.3 m 340 656.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340 670.3 m 354 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 670.3 m 423 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 656.3 m 423 656.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 670.3 m 437 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 670.3 m 506 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 656.3 m 506 656.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 531.3 m 340 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 531.3 m 423 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 531.3 m 506 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 531.3 m 340 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 518.3 m 340 518.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 516.3 m 340 516.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 531.3 m 423 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 518.3 m 423 518.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 516.3 m 423 516.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 531.3 m 506 531.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 518.3 m 506 518.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 516.3 m 506 516.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 306.50 674.35 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 294.00 660.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 377.00 660.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 460.30 660.35 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 354.50 646.35 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.50 632.17 Td (Federal statutory tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.50 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.55 632.17 Td (97,514) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.50 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.85 632.17 Td (\(29,231) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 632.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.50 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.00 632.17 Td (118,652) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 618.17 Td (Increase \(decrease\) in tax resulting from:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 603.22 Td (State tax expense \(benefit\) \(net of federal) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 592.22 Td (benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.05 592.22 Td (9,400) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.60 592.22 Td (\(992) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 592.22 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.05 592.22 Td (6,458) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 577.17 Td (Research and development credit) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.80 577.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.60 577.17 Td (\(970) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 577.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.35 577.17 Td (\(4,516) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.80 577.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 563.17 Td (Change in valuation allowance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.60 563.17 Td (\(314) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 563.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.05 563.17 Td (1,524) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.05 563.17 Td (1,627) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 549.17 Td (Statutory depletion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.60 549.17 Td (\(154) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.80 549.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.60 549.17 Td (\(210) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 549.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.60 549.17 Td (\(341) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.80 549.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.50 535.17 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.05 535.17 Td (1,230) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.30 535.17 Td (611) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.05 535.17 Td (1,705) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 521.17 Td (Income tax expense \(benefit\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.50 521.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.00 521.17 Td (107,676) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.50 521.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 384.85 521.17 Td (\(29,268) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.80 521.17 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.50 521.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.00 521.17 Td (123,585) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 492.60 Td (Acquisitions, divestitures, drilling activity) Tj ET Q q 0 0 0 rg BT 270.24 492.60 Td (, and basis dif) Tj ET Q q 0 0 0 rg BT 331.14 492.60 Td (ferentials impacting the prices received for oil, gas, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 479.40 Td (and NGLs af) Tj ET Q q 0 0 0 rg BT 106.12 479.40 Td (fect apportionment of taxable income to the states where the Company owns oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 547.83 479.40 Td (As ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 466.20 Td (its apportionment factors change, the Company) Tj ET Q q 0 0 0 rg BT 260.89 466.20 Td (s blended state income tax rate changes. ) Tj ET Q q 0 0 0 rg BT 442.43 466.20 Td (This change, when applied ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 453.00 Td (to the Company) Tj ET Q q 0 0 0 rg BT 122.83 453.00 Td (s total temporary dif) Tj ET Q q 0 0 0 rg BT 212.13 453.00 Td (ferences, impacts the total income tax reported in the current year and is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 439.80 Td (reflected in state taxes in the table above. Items af) Tj ET Q q 0 0 0 rg BT 271.95 439.80 Td (fecting state apportionment factors are evaluated at the beginning ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 426.60 Td (of each year) Tj ET Q q 0 0 0 rg BT 102.80 426.60 Td (, after completion of the prior year income tax return, and when significant acquisition, divestiture or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 413.40 Td (changes in drilling activity occurs during the year) Tj ET Q q 0 0 0 rg BT 267.30 413.40 Td (. Significant divestiture activity impacting the Company) Tj ET Q q 0 0 0 rg BT 520.25 413.40 Td (s blended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 400.20 Td (state rate occurred during the fourth quarter of 2013.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 375.00 Td (The Company and its subsidiaries file federal income tax returns and various state income tax returns. ) Tj ET Q q 0 0 0 rg BT 539.22 375.00 Td (W) Tj ET Q q 0 0 0 rg BT 549.17 375.00 Td (ith ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 361.80 Td (certain exceptions, the Company is no longer subject to United States federal or state income tax examinations by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 348.60 Td (these tax authorities for years before 2007. Federal tax law allowing for the calculation of an R&D credit was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 335.40 Td (enacted in 2013, but the Company has not yet commissioned a study to calculate the credit for the 2012 or 2013 tax ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 322.20 Td (years. ) Tj ET Q q 0 0 0 rg BT 80.76 322.20 Td (The table above excludes the impact for any credit that would be allowed under the new law in either period. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 309.00 Td (The Internal Revenue Service \(IRS\) initiated an audit in the first quarter of 2012 related to R&D tax credits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 295.80 Td (claimed by the Company for the 2007 through 2010 tax years. On ) Tj ET Q q 0 0 0 rg BT 344.00 295.80 Td (April 23, 2013, the IRS issued a Notice of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 282.60 Td (Proposed ) Tj ET Q q 0 0 0 rg BT 92.59 282.60 Td (Adjustment disallowing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 200.75 282.60 Td ($4.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.53 282.60 Td ( of R&D tax credits claimed for open tax years during the audit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 269.40 Td (period. ) Tj ET Q q 0 0 0 rg BT 85.65 269.40 Td (The Company maintains it is entitled to the claimed credits and was notified during December 2013 the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 256.20 Td (case has been received by the IRS ) Tj ET Q q 0 0 0 rg BT 201.30 256.20 Td (Appeals of) Tj ET Q q 0 0 0 rg BT 249.06 256.20 Td (fice, but a conference had not been scheduled as of the filing date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 243.00 Td (this report. In the fourth quarter of 2013, the Company filed a federal net operating loss carryback claim along with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 229.80 Td (other audit adjustments not processed during the 2013 audit, amounting to a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.47 229.80 Td ($4.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.25 229.80 Td ( refund.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 204.60 Td (On September 13, 2013 the United States Department of the ) Tj ET Q q 0 0 0 rg BT 353.21 204.60 Td (T) Tj ET Q q 0 0 0 rg BT 359.54 204.60 Td (reasury and IRS issued final and re-proposed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 191.40 Td (tangible property regulations ef) Tj ET Q q 0 0 0 rg BT 187.67 191.40 Td (fective for tax years beginning January 1, 2014. ) Tj ET Q q 0 0 0 rg BT 402.82 191.40 Td (The Company has determined it is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 178.20 Td (materially compliant with the requirements of these regulations as of December 31, 2013.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 153.00 Td (The Company complies with authoritative accounting guidance regarding uncertain tax provisions. ) Tj ET Q q 0 0 0 rg BT 526.10 153.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 139.80 Td (entire amount of unrecognized tax benefit reported by the Company would af) Tj ET Q q 0 0 0 rg BT 389.88 139.80 Td (fect its ef) Tj ET Q q 0 0 0 rg BT 430.61 139.80 Td (fective tax rate if recognized. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 126.60 Td (Interest expense in the accompanying statements of operations includes a negligible amount associated with income ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 113.40 Td (taxes. In 201) Tj ET Q q 0 0 0 rg BT 108.36 113.40 Td (1, the Company also recorded a negligible amount of penalty expense associated with income taxes as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 100.20 Td (a general and administrative expense. ) Tj ET Q q 0 0 0 rg BT 219.63 100.20 Td (At December 31, 2013, the Company estimates the range of reasonably ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 87.00 Td (possible change in 2014 to the table below could be from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.97 87.00 Td (zero) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.89 87.00 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.95 87.00 Td ($1.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.73 87.00 Td (.) Tj ET Q endstream endobj 221 0 obj <> endobj 222 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 734.40 Td (The total amount recorded for unrecognized tax benefits is presented below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 697.9 m 383 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 697.9 m 396 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 697.9 m 470 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 697.9 m 482 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 697.9 m 547 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 683.9 m 383 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 683.9 m 470 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 683.9 m 547 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 611.9 m 383 611.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 598.9 m 383 598.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 596.9 m 383 596.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 611.9 m 470 611.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 598.9 m 470 598.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 596.9 m 470 596.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 611.9 m 547 611.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 598.9 m 547 598.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 596.9 m 547 596.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 344.50 701.95 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 333.00 687.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 421.50 687.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 503.30 687.95 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 392.50 673.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 659.77 Td (Beginning balance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.50 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.05 659.77 Td (2,278) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.50 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.05 659.77 Td (1,961) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.50 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.30 659.77 Td (807) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 644.82 Td (Additions based on tax positions related to current year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.80 644.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.80 644.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.05 644.82 Td (1,172) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 629.77 Td (Additions for tax positions of prior years) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.80 629.77 Td (80) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.30 629.77 Td (317) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.30 629.77 Td (183) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 615.77 Td (Reductions for lapse of statute of limitations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.80 615.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.80 615.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.60 615.77 Td (\(201) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 542.80 615.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.50 601.77 Td (Ending balance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.50 601.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.05 601.77 Td (2,358) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.50 601.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.05 601.77 Td (2,278) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.50 601.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.05 601.77 Td (1,961) Tj ET Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 573.20 Td (Note 5 Long-term Debt) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 548.00 Td (Revolving Cr) Tj ET Q q 0 0 0 rg BT 107.94 548.00 Td (edit Facility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 522.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 522.80 Td (The Company and its lenders entered into a Fifth ) Tj ET Q q 0 0 0 rg BT 303.81 522.80 Td (Amended and Restated Credit ) Tj ET Q q 0 0 0 rg BT 438.23 522.80 Td (Agreement on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.98 522.80 Td (April12, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 509.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 509.60 Td (, which replaced the Company's previous credit facility) Tj ET Q q 0 0 0 rg BT 313.97 509.60 Td (. ) Tj ET Q q 0 0 0 rg BT 322.02 509.60 Td (The Company incurred approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.08 509.60 Td ($3.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 546.86 509.60 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.40 Td (deferred financing costs associated with the amendment and extension of this credit facility) Tj ET Q q 0 0 0 rg BT 451.26 496.40 Td (. ) Tj ET Q q 0 0 0 rg BT 459.31 496.40 Td (The credit facility has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.20 Td (a maximum loan amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.34 483.20 Td ($2.5 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.06 483.20 Td (, current aggregate lender commitments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.73 483.20 Td ($1.3 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.46 483.20 Td (, and a maturity date ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.00 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.31 470.00 Td (April12, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.78 470.00 Td (.) Tj ET Q q 0 0 0 rg BT 133.83 470.00 Td (The initial borrowing base under the credit facility was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.50 470.00 Td ($1.9 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.22 470.00 Td (. On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.66 470.00 Td (May20, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.08 470.00 Td (, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 456.80 Td (Company's borrowing base under the credit facility was automatically reduced, by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.87 456.80 Td (25 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.99 456.80 Td ( of the aggregate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 443.60 Td (principal amount of the newly-issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.49 443.60 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.49 443.60 Td ( Notes, to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.71 443.60 Td ($1.775 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.43 443.60 Td (. ) Tj ET Q q 0 0 0 rg BT 353.48 443.60 Td (The borrowing base is subject to regular semi-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 430.40 Td (annual redeterminations. On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.43 430.40 Td (September 6, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.22 430.40 Td (, the lending group redetermined the Company's borrowing base ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 417.20 Td (under the credit facility and increased it to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.76 417.20 Td ($2.2 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.48 417.20 Td (. ) Tj ET Q q 0 0 0 rg BT 297.53 417.20 Td (The borrowing base redetermination process under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 404.00 Td (credit facility considers the value of the Company's oil and gas properties and other assets, as determined by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 390.80 Td (bank group. ) Tj ET Q q 0 0 0 rg BT 107.85 390.80 Td (The next scheduled redetermination date is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.06 390.80 Td (April 1, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.03 390.80 Td (. Borrowings under the facility are secured ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 377.60 Td (by a lar) Tj ET Q q 0 0 0 rg BT 82.79 377.60 Td (ge majority of the Company's proved oil and gas properties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 364.40 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 351.20 Td (The Company must comply with certain financial and non-financial covenants under the terms of its credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 338.00 Td (facility agreement, including limitations on dividend payments and requirements to maintain certain financial ratios, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 324.80 Td (which include debt to EBITDAX, as defined by our credit agreement as the ratio of debt to 12-month trailing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 311.60 Td (EBITDAX, of less than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.62 311.60 Td (4.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.37 311.60 Td ( and an adjusted current ratio, as defined by our credit agreement, of no less than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 298.40 Td (1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 63.75 298.40 Td (.) Tj ET Q q 0 0 0 rg BT 71.80 298.40 Td (The Company was in compliance with all financial and non-financial covenants under the credit facility as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 285.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 285.20 Td (, and through the filing date of this report.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 258.80 Td (Interest and commitment fees are accrued based on the borrowing base utilization grid below) Tj ET Q q 0 0 0 rg BT 494.89 258.80 Td (. Eurodollar ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 245.60 Td (loans accrue interest at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 169.42 245.60 Td (London Interbank Of) Tj ET Q q 0 0 0 rg BT 262.69 245.60 Td (fered Rate plus the applicable mar) Tj ET Q q 0 0 0 rg BT 413.06 245.60 Td (gin from the utilization table) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.92 245.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 232.40 Td (below) Tj ET Q q 0 0 0 rg BT 76.17 232.40 Td (, and ) Tj ET Q q 0 0 0 rg BT 99.69 232.40 Td (Alternate Base Rate \(ABR\) and swingline loans accrue interest at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.25 232.40 Td (Prime plus the applicable mar) Tj ET Q q 0 0 0 rg BT 531.40 232.40 Td (gin ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 219.20 Td (from the utilization table) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.05 219.20 Td ( below) Tj ET Q q 0 0 0 rg BT 187.97 219.20 Td (. Commitment fees are accrued on the unused portion of the aggregate commitment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 206.00 Td (amount and are included in interest expense in the accompanying statements of operations.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 229.55 179.60 Td (Borr) Tj ET Q q 0 0 0 rg BT 251.95 179.60 Td (owing Base Utilization Grid) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 145.10000000000002 m 247.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 145.10000000000002 m 311.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 145.10000000000002 m 373.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 145.10000000000002 m 436.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 145.10000000000002 m 498.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 145.10000000000002 m 562.5 145.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 145.10000000000002 m 311.5 145.10000000000002 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 150.00 Td (Borrowing Base Utilization Percentage) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 149.77 Td (<25%) Tj ET Q /GS0 gs q 50.29 0 0 9.09 319.35 147.61 cm /I21 Do Q /GS0 gs q 50.29 0 0 9.09 381.35 147.61 cm /I22 Do Q /GS0 gs q 50.29 0 0 9.09 444.35 147.61 cm /I23 Do Q /GS0 gs q 23.82 0 0 9.09 520.05 147.61 cm /I24 Do Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 134.97 Td (Eurodollar Loans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.00 134.97 Td (1.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.80 134.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 134.97 Td (1.750) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.80 134.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.00 134.97 Td (2.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.80 134.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.00 134.97 Td (2.250) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.80 134.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 134.97 Td (2.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 134.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 120.97 Td (ABR Loans or Swingline Loans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.00 120.97 Td (0.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.80 120.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 120.97 Td (0.750) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.80 120.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.00 120.97 Td (1.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.80 120.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.00 120.97 Td (1.250) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.80 120.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 120.97 Td (1.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 120.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 106.97 Td (Commitment Fee Rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.00 106.97 Td (0.375) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.80 106.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.00 106.97 Td (0.375) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.80 106.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.00 106.97 Td (0.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.80 106.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.00 106.97 Td (0.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.80 106.97 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 106.97 Td (0.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 106.97 Td (%) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 223 0 obj <> endobj 224 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.85 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.48 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 308.11 38.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following table presents the outstanding balance, total amount of letters of credit, and available ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (borrowing capacity under the Company's credit facility as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.26 721.20 Td (February12, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.22 721.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.22 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.66 721.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 708.00 Td (:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 694.80 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187.5 670.3 m 307.5 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 670.3 m 433.5 670.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 670.3 m 561.5 670.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 190.60 674.35 Td (As of February 12, 2014) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 314.20 674.35 Td (As of December 31, 2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 441.20 674.35 Td (As of December 31, 2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 345.70 660.35 Td (\(in millions\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.00 646.17 Td (Credit facility balance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.00 646.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 646.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.00 646.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.30 646.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.00 646.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.55 646.17 Td (340.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.00 632.17 Td (Letters of credit ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 124.99 637.16 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.00 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.55 632.17 Td (0.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.00 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.55 632.17 Td (0.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.00 632.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 543.55 632.17 Td (0.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 52.00 618.17 Td (Available borrowing capacity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.00 618.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 270.30 618.17 Td (1,299.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.00 618.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.30 618.17 Td (1,299.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.00 618.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.55 618.17 Td (659.2) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 54.50 606.58 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 62.84 601.60 Td ( Letters of credit reduce the amount available under the credit facility on a dollar) Tj ET Q q 0 0 0 rg BT 417.52 601.60 Td (-for) Tj ET Q q 0 0 0 rg BT 433.79 601.60 Td (-dollar basis. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 576.40 Td (Senior Notes) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 551.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 551.20 Td (The Senior Notes line on the accompanying balance sheets, as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.35 551.20 Td (December31, 2013) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 460.79 551.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.29 551.20 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.93 551.20 Td (2012) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 506.93 551.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.43 551.20 Td (consisted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.00 Td (of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 500.5 m 362.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 500.5 m 376.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 500.5 m 453.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 486.5 m 362.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 486.5 m 453.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 417.5 m 362.5 417.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 417.5 m 453.5 417.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 417.5 m 362.5 417.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 404.5 m 362.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 402.5 m 362.5 402.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 417.5 m 453.5 417.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 404.5 m 453.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 402.5 m 453.5 402.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 319.05 505.40 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 308.00 490.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 403.50 490.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 331.00 476.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 463.37 Td (6.625% Senior Notes due 2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 463.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.55 463.37 Td (350,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.00 463.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.55 463.37 Td (350,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 449.37 Td (6.50% Senior Notes due 2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.55 449.37 Td (350,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.55 449.37 Td (350,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 435.37 Td (6.50% Senior Notes due 2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.55 435.37 Td (400,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.55 435.37 Td (400,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 421.37 Td (5.0% Senior Notes due 2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.55 421.37 Td (500,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.30 421.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 407.37 Td (Total long-term debt) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 407.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 407.37 Td (1,600,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.00 407.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.25 407.37 Td (1,100,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 377.60 Td (The Senior Notes are unsecured senior obligations and rank equal in right of payment with all of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 364.40 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 364.40 Td (s existing and any future unsecured senior debt, and are senior in right of payment to any future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 351.20 Td (subordinated debt. ) Tj ET Q q 0 0 0 rg BT 136.56 351.20 Td (There are no subsidiary guarantors of the Senior Notes. ) Tj ET Q q 0 0 0 rg BT 385.32 351.20 Td (The Company is subject to certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 338.00 Td (covenants under the indenture governing the Senior Notes that limit the Company) Tj ET Q q 0 0 0 rg BT 413.23 338.00 Td (s ability to incur additional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 324.80 Td (indebtedness, issue preferred stock, and make restricted payments, including dividends; provided, however) Tj ET Q q 0 0 0 rg BT 520.29 324.80 Td (, that the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 311.60 Td (first ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 70.47 311.60 Td ($6.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.25 311.60 Td ( of dividends paid each year are not restricted by the restricted payment covenant. ) Tj ET Q q 0 0 0 rg BT 489.35 311.60 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 298.40 Td (was in compliance with all covenants under its Senior Notes as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.04 298.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.48 298.40 Td (, and through the filing date ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 285.20 Td (of this report.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 260.00 Td (2024 Notes) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 234.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 234.80 Td (On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.19 234.80 Td (May20, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.61 234.80 Td (, the Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.07 234.80 Td ($500.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.85 234.80 Td ( in aggregate principal amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.91 234.80 Td (5.0%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.82 234.80 Td ( Senior Notes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 221.60 Td (due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.63 221.60 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 90.63 221.60 Td (. ) Tj ET Q q 0 0 0 rg BT 98.68 221.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.54 221.60 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 140.54 221.60 Td ( Notes were issued at par and mature on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.23 221.60 Td (January 15, 2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.68 221.60 Td (. ) Tj ET Q q 0 0 0 rg BT 402.74 221.60 Td (The Company received net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 208.40 Td (proceeds of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.75 208.40 Td ($490.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.53 208.40 Td ( after deducting fees of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.68 208.40 Td ($9.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.46 208.40 Td (, which are being amortized as deferred financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.20 Td (costs over the life of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.74 195.20 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.74 195.20 Td ( Notes. ) Tj ET Q q 0 0 0 rg BT 217.21 195.20 Td (The net proceeds were used to reduce the Company) Tj ET Q q 0 0 0 rg BT 447.51 195.20 Td (s outstanding credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 182.00 Td (facility balance. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 156.80 Td (Prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.06 156.80 Td (July15, 2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.64 156.80 Td (, the Company may redeem, on one or more occasions, up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.38 156.80 Td (35 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.50 156.80 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 143.60 Td (aggregate principal amount of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.19 143.60 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.19 143.60 Td ( Notes with the net cash proceeds of certain equity of) Tj ET Q q 0 0 0 rg BT 456.97 143.60 Td (ferings at a redemption ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 130.40 Td (price of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.65 130.40 Td (105%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.31 130.40 Td ( of the principal amount thereof, plus accrued and unpaid interest. ) Tj ET Q q 0 0 0 rg BT 407.18 130.40 Td (The Company may also redeem ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 117.20 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.19 117.20 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.19 117.20 Td ( Notes, in whole or in part, at any time prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.92 117.20 Td (July15, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.51 117.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.01 117.20 Td (at a redemption price equal to 100 percent of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 104.00 Td (the principal amount of the 2024 Notes to be redeemed, plus a specified make-whole premium and accrued and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 90.80 Td (unpaid interest to the applicable redemption date.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.92 90.80 Td ( ) Tj ET Q endstream endobj 225 0 obj <> endobj 226 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (12) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (On or after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.00 734.40 Td (July15, 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.59 734.40 Td (, the Company may also redeem all or) Tj ET Q q 0 0 0 rg BT 363.55 734.40 Td (, from time to time, a portion of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.10 734.40 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.10 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (Notes at the redemption prices set forth below) Tj ET Q q 0 0 0 rg BT 252.42 721.20 Td (, during the twelve-month period beginning on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.77 721.20 Td (July15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.86 721.20 Td ( of each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (applicable year) Tj ET Q q 0 0 0 rg BT 116.44 708.00 Td (, expressed as a percentage of the principal amount redeemed, plus accrued and unpaid interest:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 674.17 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 674.17 Td (102.500) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 674.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 660.17 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 660.17 Td (101.677) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 660.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 646.17 Td (2020) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 646.17 Td (100.833) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 646.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 632.17 Td (2021 and thereafter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 632.17 Td (100.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 632.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 602.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 602.40 Td (, on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.14 602.40 Td (May20, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.56 602.40 Td (, the Company entered into a registration rights agreement that provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (holders of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.23 589.20 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.23 589.20 Td ( Notes certain registration rights under the Securities ) Tj ET Q q 0 0 0 rg BT 369.23 589.20 Td (Act. Pursuant to the registration rights ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (agreement, the Company is required to file an exchange of) Tj ET Q q 0 0 0 rg BT 307.59 576.00 Td (fer registration statement with the SEC with respect to its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.80 Td (of) Tj ET Q q 0 0 0 rg BT 58.96 562.80 Td (fer to exchange the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.70 562.80 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.70 562.80 Td ( Notes for substantially identical notes that are registered under the Securities ) Tj ET Q q 0 0 0 rg BT 510.43 562.80 Td (Act. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 549.60 Td (Under certain circumstances, the Company has agreed to file a shelf registration statement relating to the resale of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.19 536.40 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.19 536.40 Td ( Notes in lieu of a registered exchange of) Tj ET Q q 0 0 0 rg BT 268.81 536.40 Td (fer) Tj ET Q q 0 0 0 rg BT 280.41 536.40 Td (. If the registration statement related to the exchange of) Tj ET Q q 0 0 0 rg BT 526.08 536.40 Td (fer is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (not declared ef) Tj ET Q q 0 0 0 rg BT 115.15 523.20 Td (fective on or before ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.33 523.20 Td (May20, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.74 523.20 Td (, or if the shelf registration statement, if required, is not declared ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.00 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 510.00 Td (fective within the time periods specified in the registration rights agreement, the Company has agreed to pay ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.80 Td (additional interest with respect to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.56 496.80 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.56 496.80 Td ( Notes in an amount not to exceed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.30 496.80 Td (one percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.30 496.80 Td ( of the principal amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.60 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.19 483.60 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.19 483.60 Td ( Notes until the exchange of) Tj ET Q q 0 0 0 rg BT 211.70 483.60 Td (fer is completed or the shelf registration statement is declared ef) Tj ET Q q 0 0 0 rg BT 493.73 483.60 Td (fective.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (2023 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 433.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 433.20 Td (On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.19 433.20 Td (June29, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.61 433.20 Td (, the Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.07 433.20 Td ($400.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.85 433.20 Td ( in aggregate principal amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.91 433.20 Td (6.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.32 433.20 Td ( Senior ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (Notes due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.05 420.00 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.05 420.00 Td (. ) Tj ET Q q 0 0 0 rg BT 127.10 420.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.95 420.00 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.95 420.00 Td ( Notes were issued at par and mature on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.64 420.00 Td (January1, 2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.60 420.00 Td (. ) Tj ET Q q 0 0 0 rg BT 425.65 420.00 Td (The Company received net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.80 Td (proceeds of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.75 406.80 Td ($392.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.53 406.80 Td ( after deducting fees of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.68 406.80 Td ($7.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.46 406.80 Td (, which are being amortized as deferred financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (costs over the life of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.74 393.60 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.74 393.60 Td ( Notes. ) Tj ET Q q 0 0 0 rg BT 217.21 393.60 Td (The net proceeds were used to reduce the Company) Tj ET Q q 0 0 0 rg BT 447.51 393.60 Td (s outstanding credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 380.40 Td (facility balance. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 357.20 Td (Prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.06 357.20 Td (July1, 2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.14 357.20 Td (, the Company may redeem, on one or more occasions, up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.88 357.20 Td (35 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.00 357.20 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.00 Td (aggregate principal amount of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.19 344.00 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.19 344.00 Td ( Notes with the net cash proceeds of certain equity of) Tj ET Q q 0 0 0 rg BT 456.97 344.00 Td (ferings at a redemption ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 330.80 Td (price of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.65 330.80 Td (106.5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 120.56 330.80 Td ( of the principal amount thereof, plus accrued and unpaid interest. ) Tj ET Q q 0 0 0 rg BT 415.43 330.80 Td (The Company may also redeem ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 317.60 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.19 317.60 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 88.19 317.60 Td ( Notes, in whole or in part, at any time prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.92 317.60 Td (July1, 2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.01 317.60 Td (, at a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 373.83 317.60 Td (redemption price equal to 100 percent of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.40 Td (the principal amount of the 2023 Notes to be redeemed, plus a specified make-whole premium and accrued and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.20 Td (unpaid interest to the applicable redemption date.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.17 291.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 264.80 Td (On or after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.00 264.80 Td (July1, 2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.09 264.80 Td (, the Company may also redeem all or) Tj ET Q q 0 0 0 rg BT 358.05 264.80 Td (, from time to time, a portion of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.60 264.80 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.60 264.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 251.60 Td (Notes at the redemption prices set forth below) Tj ET Q q 0 0 0 rg BT 252.42 251.60 Td (, during the twelve-month period beginning on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.77 251.60 Td (July1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.36 251.60 Td ( of each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 238.40 Td (applicable year) Tj ET Q q 0 0 0 rg BT 116.44 238.40 Td (, expressed as a percentage of the principal amount redeemed, plus accrued and unpaid interest:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 204.57 Td (2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 204.57 Td (103.250) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 204.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 190.57 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 190.57 Td (102.167) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 190.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 176.57 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 176.57 Td (101.083) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 176.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 162.57 Td (2020 and thereafter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 162.57 Td (100.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 162.57 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 132.80 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 132.80 Td (, on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.14 132.80 Td (June29, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.56 132.80 Td (, the Company entered into a registration rights agreement that provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.60 Td (holders of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.23 119.60 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.23 119.60 Td ( Notes certain registration rights under the Securities ) Tj ET Q q 0 0 0 rg BT 369.23 119.60 Td (Act. ) Tj ET Q q 0 0 0 rg BT 393.16 119.60 Td (The Company satisfied its obligations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.40 Td (to exchange its outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.81 106.40 Td ($400.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.59 106.40 Td ( of its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.40 106.40 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 287.40 106.40 Td ( Notes for notes registered under the Securities ) Tj ET Q q 0 0 0 rg BT 495.73 106.40 Td (Act on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 93.20 Td (October30, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 126.68 93.20 Td (. ) Tj ET Q endstream endobj 227 0 obj <> endobj 228 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (13) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (2021 Notes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 708.00 Td (On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.19 708.00 Td (November8, 201) Tj ET Q q 0 0 0 rg BT 178.46 708.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.96 708.00 Td (, the Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.43 708.00 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.21 708.00 Td ( in aggregate principal amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.27 708.00 Td (6.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.68 708.00 Td ( Senior ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (Notes due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.05 694.80 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.05 694.80 Td (. ) Tj ET Q q 0 0 0 rg BT 127.10 694.80 Td (The 2021 Notes were issued at par and mature on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.64 694.80 Td (November15, 2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.32 694.80 Td (. ) Tj ET Q q 0 0 0 rg BT 443.37 694.80 Td (The Company received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (net proceeds of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.94 681.60 Td ($343.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.72 681.60 Td ( after deducting fees of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.87 681.60 Td ($6.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.65 681.60 Td (, which are being amortized as deferred financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (costs over the life of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.74 668.40 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.74 668.40 Td ( Notes. ) Tj ET Q q 0 0 0 rg BT 217.21 668.40 Td (The net proceeds were used for general corporate purposes and to reduce the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 655.20 Td (s outstanding credit facility balance. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 628.80 Td (Prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.06 628.80 Td (November15, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.73 628.80 Td (, the Company may redeem up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.81 628.80 Td (35 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.92 628.80 Td ( of the aggregate principal amount ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.60 Td (of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.10 615.60 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.10 615.60 Td ( Notes with the net cash proceeds of one or more equity of) Tj ET Q q 0 0 0 rg BT 357.10 615.60 Td (ferings at a redemption price of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.21 615.60 Td (106.5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.13 615.60 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (principal amount thereof, plus accrued and unpaid interest. ) Tj ET Q q 0 0 0 rg BT 314.02 602.40 Td (The Company may also redeem the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.86 602.40 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.86 602.40 Td ( Notes, in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (whole or in part, at any time prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.51 589.20 Td (November15, 2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.19 589.20 Td (, at a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.01 589.20 Td (redemption price equal to 100% of the principal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (amount, plus a specified make-whole premium and accrued and unpaid interest) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.52 576.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 549.60 Td (The Company may also redeem all or) Tj ET Q q 0 0 0 rg BT 251.12 549.60 Td (, from time to time, a portion of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.67 549.60 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.67 549.60 Td ( Notes on or after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.40 Td (November15, 2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.68 536.40 Td (, at the prices set forth below) Tj ET Q q 0 0 0 rg BT 264.34 536.40 Td (, during the twelve-month period beginning on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.69 536.40 Td (November15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.87 536.40 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.20 Td (applicable year) Tj ET Q q 0 0 0 rg BT 116.44 523.20 Td (, expressed as a percentage of the principal amount redeemed, plus accrued and unpaid interest:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 489.37 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 489.37 Td (103.250) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 489.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 475.37 Td (2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 475.37 Td (102.167) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 475.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 461.37 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 461.37 Td (101.083) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 461.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 447.37 Td (2019 and thereafter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 447.37 Td (100.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 447.37 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 417.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 417.60 Td (, on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.14 417.60 Td (November8, 201) Tj ET Q q 0 0 0 rg BT 236.41 417.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.91 417.60 Td (, the Company entered into a registration rights agreement that provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 404.40 Td (holders of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.23 404.40 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.23 404.40 Td ( Notes certain registration rights for the 2021 Notes under the Securities ) Tj ET Q q 0 0 0 rg BT 454.15 404.40 Td (Act. ) Tj ET Q q 0 0 0 rg BT 478.09 404.40 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 391.20 Td (satisfied its obligations to exchange its outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.00 391.20 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.78 391.20 Td ( of its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.59 391.20 Td (2021) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.59 391.20 Td ( Notes for notes registered under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 378.00 Td (Securities ) Tj ET Q q 0 0 0 rg BT 95.52 378.00 Td (Act on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.90 378.00 Td (March7, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.36 378.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (2019 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 326.40 Td (On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 102.19 326.40 Td (February7, 201) Tj ET Q q 0 0 0 rg BT 171.74 326.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.24 326.40 Td (, the Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.71 326.40 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.49 326.40 Td ( in aggregate principal amount of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.55 326.40 Td (6.625%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.46 326.40 Td ( Senior ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (Notes due ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.05 313.20 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.05 313.20 Td (. ) Tj ET Q q 0 0 0 rg BT 127.10 313.20 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 146.95 313.20 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.95 313.20 Td ( Notes were issued at par and mature on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.64 313.20 Td (February15, 2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.60 313.20 Td (. ) Tj ET Q q 0 0 0 rg BT 436.65 313.20 Td (The Company received net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (proceeds of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.75 300.00 Td ($341.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.53 300.00 Td ( after deducting fees of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.68 300.00 Td ($8.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.46 300.00 Td (, which are being amortized as deferred financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 286.80 Td (costs over the life of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.74 286.80 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.74 286.80 Td ( Notes. ) Tj ET Q q 0 0 0 rg BT 217.21 286.80 Td (The net proceeds were used to repay borrowings under the Company) Tj ET Q q 0 0 0 rg BT 523.28 286.80 Td (s credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (facility) Tj ET Q q 0 0 0 rg BT 80.44 273.60 Td (, to fund the Company) Tj ET Q q 0 0 0 rg BT 182.18 273.60 Td (s ongoing capital expenditure program, and for general corporate purposes.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 247.20 Td (The Company may redeem the 2019 Notes, in whole or in part, at any time prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.10 247.20 Td (February15, 2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.06 247.20 Td (, at a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.00 Td (redemption price equal to 100% of the principal amount, plus a specified make-whole premium and accrued and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td (unpaid interest) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 115.07 220.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 194.40 Td (The Company may also redeem all or) Tj ET Q q 0 0 0 rg BT 251.12 194.40 Td (, from time to time, a portion of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.67 194.40 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.67 194.40 Td ( Notes on or after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 181.20 Td (February15, 2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 181.20 Td (, at the prices set forth below) Tj ET Q q 0 0 0 rg BT 257.62 181.20 Td (, during the twelve-month period beginning on February 15 of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 168.00 Td (applicable year) Tj ET Q q 0 0 0 rg BT 116.44 168.00 Td (, expressed as a percentage of the principal amount redeemed, plus accrued and unpaid interest:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 134.17 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 134.17 Td (103.313) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 134.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 120.17 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 120.17 Td (101.656) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 120.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.00 106.17 Td (2017 and thereafter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.00 106.17 Td (100.000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.80 106.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 229 0 obj <> endobj 230 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (14) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 734.40 Td (, on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.14 734.40 Td (February7, 201) Tj ET Q q 0 0 0 rg BT 229.69 734.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.19 734.40 Td (, the Company entered into a registration rights agreement that provides ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (holders of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.23 721.20 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.23 721.20 Td ( Notes certain registration rights for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.49 721.20 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.49 721.20 Td ( Notes under the Securities ) Tj ET Q q 0 0 0 rg BT 454.15 721.20 Td (Act. ) Tj ET Q q 0 0 0 rg BT 478.09 721.20 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (satisfied its obligations to exchange its outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.00 708.00 Td ($350.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.78 708.00 Td ( of its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.59 708.00 Td (2019) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.59 708.00 Td ( Notes for notes registered under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (Securities ) Tj ET Q q 0 0 0 rg BT 95.52 694.80 Td (Act on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.90 694.80 Td (January1) Tj ET Q q 0 0 0 rg BT 169.95 694.80 Td (1, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.95 694.80 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (3.50%) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 78.41 669.60 Td ( Senior Convertible Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 644.40 Td (On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 101.59 644.40 Td (April 2, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.56 644.40 Td (, the Company called for redemption all of its outstanding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.08 644.40 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.50 644.40 Td ( Senior Convertible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (Notes. ) Tj ET Q q 0 0 0 rg BT 83.71 631.20 Td (The call for redemption resulted in holders of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.54 631.20 Td ($281.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.32 631.20 Td ( aggregate principal amount electing to convert ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (their notes. ) Tj ET Q q 0 0 0 rg BT 104.18 618.00 Td (The Company settled the principal amount of all converted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 366.57 618.00 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.99 618.00 Td ( Senior Convertible Notes in cash and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (settled the excess conversion value by issuing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.37 604.80 Td (864,106) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.12 604.80 Td ( shares of its common stock. ) Tj ET Q q 0 0 0 rg BT 420.68 604.80 Td (The Company redeemed the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (remaining ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.35 591.60 Td ($6.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.13 591.60 Td ( of aggregate principal amount of notes that were not converted on the redemption date at par ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (plus accrued interest in cash. ) Tj ET Q q 0 0 0 rg BT 182.06 578.40 Td (The Company used funds borrowed under its credit facility to pay the cash portion of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (the settlement.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (Capitalized Inter) Tj ET Q q 0 0 0 rg BT 124.45 540.00 Td (est) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 514.80 Td (Capitalized interest costs for the Company for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.75 514.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.19 514.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.69 514.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.69 514.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.82 514.80 Td (201) Tj ET Q q 0 0 0 rg BT 516.91 514.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.41 514.80 Td (, were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td ($1) Tj ET Q q 0 0 0 rg BT 60.59 501.60 Td (1.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 108.87 501.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.37 501.60 Td ($12.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.65 501.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 197.79 501.60 Td ($10.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.07 501.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 314.99 501.60 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (Note 6 Commitments and Contingencies) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 450.00 Td (Commitments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 424.80 Td (The Company has entered into various agreements, which include drilling rig contracts of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.72 424.80 Td ($65.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 543.00 424.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 411.60 Td (gathering, processing, and transportation through-put commitments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.30 411.60 Td ($1.1 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.02 411.60 Td (, of) Tj ET Q q 0 0 0 rg BT 426.49 411.60 Td (fice leases, including ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 398.40 Td (maintenance, of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.99 398.40 Td ($69.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.27 398.40 Td (, and other miscellaneous contracts and leases of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.84 398.40 Td ($7.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.62 398.40 Td (. ) Tj ET Q q 0 0 0 rg BT 460.67 398.40 Td (The annual minimum ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 385.20 Td (payments for the next five years and total minimum lease payments thereafter are presented below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 55.5 348.70000000000005 m 192.5 348.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 348.70000000000005 m 292.5 348.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 264.70000000000005 m 292.5 264.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 264.70000000000005 m 292.5 264.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 251.70000000000005 m 292.5 251.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 249.70000000000005 m 292.5 249.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 58.00 352.75 Td (Years Ending December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 215.50 352.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 338.57 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.00 338.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 338.57 Td (179,118) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 324.57 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 324.57 Td (147,119) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 310.57 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 310.57 Td (144,438) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 296.57 Td (2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 296.57 Td (132,559) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 282.57 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 282.57 Td (128,418) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 268.57 Td (Thereafter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.55 268.57 Td (481,947) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 254.57 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.00 254.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.30 254.57 Td (1,213,599) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 224.80 Td (The Company has gathering, processing, and transportation through-put commitments with various parties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 211.60 Td (that require delivery of a fixed determinable quantity of product. ) Tj ET Q q 0 0 0 rg BT 339.36 211.60 Td (The aggregate minimum commitment to deliver is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.40 Td (1,807) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 74.75 198.40 Td ( Bcf of natural gas and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.38 198.40 Td (53) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.38 198.40 Td ( MMBbl of oil. ) Tj ET Q q 0 0 0 rg BT 260.91 198.40 Td (These contracts expire at various dates through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.76 198.40 Td (2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.76 198.40 Td ( and the total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 185.20 Td (amount of the commitment is approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.57 185.20 Td ($1.1 billion) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.29 185.20 Td (. ) Tj ET Q q 0 0 0 rg BT 307.35 185.20 Td (The Company will be required to make periodic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td (deficiency payments for any shortfalls in delivering the minimum volume commitments. ) Tj ET Q q 0 0 0 rg BT 445.00 172.00 Td (As of the filing date of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.80 Td (this report, the Company does not expect to incur any material shortfalls.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 132.40 Td (The Company leases of) Tj ET Q q 0 0 0 rg BT 189.36 132.40 Td (fice space under various operating leases with terms extending as far as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.41 132.40 Td (May31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.20 Td (2024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 119.20 Td (. During the third quarter of 2013, the Company entered into an of) Tj ET Q q 0 0 0 rg BT 365.98 119.20 Td (fice lease with an initial term of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 508.62 119.20 Td (12 years) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 545.57 119.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 106.00 Td (and minimum lease payments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.72 106.00 Td ($12.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.00 106.00 Td ( over the term beginning on the commencement date, which is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 92.80 Td (anticipated to be in the second quarter of 2014. Rent expense for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.57 92.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.57 92.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.07 92.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.07 92.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.20 92.80 Td (201) Tj ET Q q 0 0 0 rg BT 429.30 92.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.80 92.80 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.15 92.80 Td ($5.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.93 92.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 519.43 92.80 Td ($5.4 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 79.60 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 79.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.91 79.60 Td ($3.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.69 79.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 217.62 79.60 Td (. ) Tj ET Q q 0 0 0 rg BT 225.67 79.60 Td (The Company also leases of) Tj ET Q q 0 0 0 rg BT 349.50 79.60 Td (fice equipment under various operating leases.) Tj ET Q endstream endobj 231 0 obj <> endobj 232 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (In addition to the amounts in the above table, the Company has committed to pay its portion of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (development of infrastructure in its outside operated Eagle Ford shale play) Tj ET Q q 0 0 0 rg BT 377.96 721.20 Td (. ) Tj ET Q q 0 0 0 rg BT 386.02 721.20 Td (The system owners unanimously ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (approved budgeted costs for 2014, of which the Company is committed to pay approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.94 708.00 Td ($33.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.22 708.00 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (upcoming year) Tj ET Q q 0 0 0 rg BT 115.07 694.80 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (Contingencies) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 643.20 Td (The Company is subject to litigation and claims arising in the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 488.14 643.20 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (accrues for such items when a liability is both probable and the amount can be reasonably estimated. In the opinion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (of management, the results of such pending litigation and claims will not have a material ef) Tj ET Q q 0 0 0 rg BT 451.80 616.80 Td (fect on the results of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (operations, the financial position, or the cash flows of the Company) Tj ET Q q 0 0 0 rg BT 347.44 603.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 577.20 Td (On January 27, 201) Tj ET Q q 0 0 0 rg BT 171.74 577.20 Td (1, Chieftain filed a Class ) Tj ET Q q 0 0 0 rg BT 282.95 577.20 Td (Action Petition against the Company in the District Court of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (Beaver County) Tj ET Q q 0 0 0 rg BT 115.58 564.00 Td (, Oklahoma, claiming damages related to royalty valuation on all of the Company's Oklahoma wells. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (These claims include breach of contract, breach of fiduciary duty) Tj ET Q q 0 0 0 rg BT 335.77 550.80 Td (, fraud, unjust enrichment, tortious breach of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (contract, conspiracy) Tj ET Q q 0 0 0 rg BT 137.85 537.60 Td (, and conversion, based generally on asserted improper deduction of post-production costs. ) Tj ET Q q 0 0 0 rg BT 542.72 537.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (Company removed this lawsuit to the United States District Court for the ) Tj ET Q q 0 0 0 rg BT 374.25 524.40 Td (W) Tj ET Q q 0 0 0 rg BT 383.75 524.40 Td (estern District of Oklahoma on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (February 22, 201) Tj ET Q q 0 0 0 rg BT 125.05 511.20 Td (1. ) Tj ET Q q 0 0 0 rg BT 138.60 511.20 Td (The Company responded to the petition and denied the allegations. ) Tj ET Q q 0 0 0 rg BT 435.63 511.20 Td (The district court did not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (rule on Chieftain's motion to certify the putative class, and stayed all proceedings until the United States Court of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td (Appeals for the ) Tj ET Q q 0 0 0 rg BT 120.36 484.80 Td (T) Tj ET Q q 0 0 0 rg BT 126.31 484.80 Td (enth Circuit issues its rulings on class certification in two similar royalty class action lawsuits. On ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.60 Td (July 9, 2013, the ) Tj ET Q q 0 0 0 rg BT 125.58 471.60 Td (T) Tj ET Q q 0 0 0 rg BT 131.53 471.60 Td (enth Circuit issued its opinions, reversing the trial courts' grant of class certification and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 458.40 Td (remanding the matters to the trial courts for those cases. ) Tj ET Q q 0 0 0 rg BT 301.50 458.40 Td (The district court presiding over the Company's case ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (subsequently lifted its stay) Tj ET Q q 0 0 0 rg BT 166.30 445.20 Td (, and the Company expects Chieftain to file a new motion for class certification in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (first half of 2015.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 405.60 Td (This case involves complex legal issues and uncertainties; a potentially lar) Tj ET Q q 0 0 0 rg BT 413.26 405.60 Td (ge class of plaintif) Tj ET Q q 0 0 0 rg BT 494.01 405.60 Td (fs, and a lar) Tj ET Q q 0 0 0 rg BT 545.12 405.60 Td (ge ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 392.40 Td (number of related producing properties, lease agreements and wells; and an alleged class period commencing in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.20 Td (1988 and spanning the entire producing life of the wells. Because the proceedings are in the early stages, with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (substantive discovery yet to be conducted, the Company is unable to estimate what impact, if any) Tj ET Q q 0 0 0 rg BT 477.87 366.00 Td (, the action will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (have on its financial condition, results of operations or cash flows. ) Tj ET Q q 0 0 0 rg BT 347.34 352.80 Td (The Company is still evaluating the claims, but ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (believes that it has properly paid royalties under Oklahoma law and has and will continue to vigorously defend this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (case. On December 30, 2013, the Company sold a substantial portion of its assets that were subject to this matter) Tj ET Q q 0 0 0 rg BT 548.42 326.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (and the buyer assumed any such liabilities related to such properties.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 290.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 290.00 Td (In an unrelated matter) Tj ET Q q 0 0 0 rg BT 182.37 290.00 Td (, as of and for the year ended December 31, 2013, other operating expenses includes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.80 Td ($23.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.28 276.80 Td ( related to an agreed clarification concerning royalty payment provisions of various leases on certain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.60 Td (South ) Tj ET Q q 0 0 0 rg BT 78.23 263.60 Td (T) Tj ET Q q 0 0 0 rg BT 84.18 263.60 Td (exas & Gulf Coast acreage. ) Tj ET Q q 0 0 0 rg BT 209.71 263.60 Td (As of December 31, 2013, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.54 263.60 Td ($9.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.33 263.60 Td ( is included in accounts payable and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.40 Td (accrued expenses as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.31 250.40 Td ($13.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 200.59 250.40 Td ( was paid in 2013. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 224.00 Td (Note 7 Compensation Plans) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 198.80 Td (Cash Bonus Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 173.60 Td (The Company has a cash bonus plan based on a performance measurement framework whereby selected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.40 Td (eligible employee participants may be awarded an annual cash bonus. ) Tj ET Q q 0 0 0 rg BT 361.97 160.40 Td (The plan document provides that no ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.20 Td (participant may receive an annual bonus under the plan of more than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.83 147.20 Td (200 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.45 147.20 Td ( of his or her base salary) Tj ET Q q 0 0 0 rg BT 513.25 147.20 Td (. ) Tj ET Q q 0 0 0 rg BT 520.89 147.20 Td (As the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.00 Td (plan is currently administered, any awards under the plan are based on Company and regional performance and are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.80 Td (then further refined by individual performance. ) Tj ET Q q 0 0 0 rg BT 263.00 120.80 Td (The Company accrues cash bonus expense based upon the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 107.60 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 107.60 Td (s current year performance. Included in general and administrative expense, lease operating expense, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 94.40 Td (exploration expense in the accompanying statements of operations are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.25 94.40 Td ($41.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.54 94.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.04 94.40 Td ($16.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.32 94.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.45 94.40 Td ($23.9 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 81.20 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 81.20 Td ( of cash bonus expense related to the specific performance years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.37 81.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.81 81.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.31 81.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.31 81.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.44 81.20 Td (201) Tj ET Q q 0 0 0 rg BT 550.53 81.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.03 81.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 68.00 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 68.00 Td (.) Tj ET Q endstream endobj 233 0 obj <> endobj 234 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (16) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Equity Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (There are several components to the Company) Tj ET Q q 0 0 0 rg BT 293.71 709.20 Td (s Equity Plan that are described in this section. ) Tj ET Q q 0 0 0 rg BT 504.60 709.20 Td (V) Tj ET Q q 0 0 0 rg BT 511.33 709.20 Td (arious ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (types of equity awards have been granted by the Company in dif) Tj ET Q q 0 0 0 rg BT 333.58 696.00 Td (ferent periods. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 670.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 670.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 670.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.83 670.80 Td (3.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.11 670.80 Td ( shares of common stock remained available for grant under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.60 Td (Equity Plan. ) Tj ET Q q 0 0 0 rg BT 109.69 657.60 Td (The issuance of a direct share benefit such as a share of common stock, a stock option, a restricted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.40 Td (share, a RSU, or a PSU counts as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.10 644.40 Td (one) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.98 644.40 Td ( share against the number of shares available to be granted under the Equity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 631.20 Td (Plan. Each PSU has the potential to count as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.72 631.20 Td (two) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.22 631.20 Td ( shares against the number of shares available to be granted under ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (the Equity Plan based on the final performance multiplier) Tj ET Q q 0 0 0 rg BT 302.32 618.00 Td (. Stock options were issued out of the St. Mary Land & ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (Exploration Company Stock Option Plan and the St. Mary Land & Exploration Company Incentive Stock Option ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (Plan, both predecessors to the Equity Plan. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (Performance Shar) Tj ET Q q 0 0 0 rg BT 130.55 566.40 Td (e Units Under the Equity Incentive Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 541.20 Td (The Company grants PSUs to eligible employees as a part of its equity compensation program. ) Tj ET Q q 0 0 0 rg BT 508.91 541.20 Td (The PSU ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (factor is based on the Company) Tj ET Q q 0 0 0 rg BT 192.05 528.00 Td (s performance after completion of a three-year performance period. ) Tj ET Q q 0 0 0 rg BT 493.89 528.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (performance criteria for the PSUs are based on a combination of the Company) Tj ET Q q 0 0 0 rg BT 398.22 514.80 Td (s annualized ) Tj ET Q q 0 0 0 rg BT 455.44 514.80 Td (T) Tj ET Q q 0 0 0 rg BT 461.39 514.80 Td (otal Shareholder ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (Return \(TSR\) for the performance period and the relative performance of the Company) Tj ET Q q 0 0 0 rg BT 446.45 501.60 Td (s ) Tj ET Q q 0 0 0 rg BT 453.28 501.60 Td (TSR compared with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (annualized ) Tj ET Q q 0 0 0 rg BT 100.19 488.40 Td (TSR of certain peer companies for the performance period. PSUs are recognized as general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (administrative and exploration expense over the vesting period of the award. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 450.00 Td ( ) Tj ET Q q 0 0 0 rg BT 88.55 450.00 Td (The fair value of PSUs was measured at the grant date with a stochastic process method using the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (Geometric Brownian Motion Model \(GBM Model\). ) Tj ET Q q 0 0 0 rg BT 293.18 436.80 Td (A) Tj ET Q q 0 0 0 rg BT 300.52 436.80 Td ( stochastic process is a mathematically defined equation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (that can create a series of outcomes over time. ) Tj ET Q q 0 0 0 rg BT 258.40 423.60 Td (These outcomes are not deterministic in nature, which means that by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (iterating the equations multiple times, dif) Tj ET Q q 0 0 0 rg BT 231.26 410.40 Td (ferent results will be obtained for those iterations. In the case of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 397.20 Td (s PSUs, the Company cannot predict with certainty the path its stock price or the stock prices of its peers ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (will take over the three-year performance period. By using a stochastic simulation, the Company can create ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 370.80 Td (multiple prospective stock pathways, statistically analyze these simulations, and ultimately make inferences ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (regarding the most likely path the stock price will take. ) Tj ET Q q 0 0 0 rg BT 297.44 357.60 Td (As such, because future stock prices are stochastic, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 344.40 Td (probabilistic with some direction in nature, the stochastic method, specifically the GBM Model, is deemed an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.20 Td (appropriate method by which to determine the fair value of the PSUs. Significant assumptions used in this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (simulation include the Company) Tj ET Q q 0 0 0 rg BT 196.34 318.00 Td (s expected volatility) Tj ET Q q 0 0 0 rg BT 284.21 318.00 Td (, dividend yield, and risk-free interest rate based on U.S. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 304.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.33 304.80 Td (reasury yield curve rates with maturities consistent with a three-year vesting period, as well as the volatilities and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 291.60 Td (dividend yields for each of the Company) Tj ET Q q 0 0 0 rg BT 232.68 291.60 Td (s peers. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 266.40 Td (T) Tj ET Q q 0 0 0 rg BT 91.95 266.40 Td (otal expense recorded for PSUs was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.24 266.40 Td ($16.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.52 266.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.02 266.40 Td ($18.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.30 266.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.43 266.40 Td ($19.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.71 266.40 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 253.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.94 253.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.94 253.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.07 253.20 Td (201) Tj ET Q q 0 0 0 rg BT 204.17 253.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.67 253.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 267.59 253.20 Td (. ) Tj ET Q q 0 0 0 rg BT 275.24 253.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.12 253.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.57 253.20 Td (, there was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.66 253.20 Td ($18.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.94 253.20 Td ( of total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (unrecognized expense related to PSUs, which is being amortized through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.72 240.00 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.72 240.00 Td (.) Tj ET Q endstream endobj 235 0 obj <> endobj 236 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (17) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 734.40 Td ( summary of the status and activity of non-vested PSUs is presented in the following table:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 708.9 m 224.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 708.9 m 230.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 708.9 m 285.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 708.9 m 291.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 708.9 m 353.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 708.9 m 359.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 708.9 m 417.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 708.9 m 423.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 708.9 m 481.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 708.9 m 487.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 708.9 m 545.5 708.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 694.9 m 230.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 694.9 m 285.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 694.9 m 353.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 694.9 m 359.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 694.9 m 417.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 694.9 m 481.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 694.9 m 487.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 694.9 m 545.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 694.9 m 224.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 628.9 m 224.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 694.9 m 230.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 694.9 m 285.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 628.9 m 285.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 628.9 m 353.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 694.9 m 359.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 694.9 m 417.5 694.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 628.9 m 417.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 628.9 m 481.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 628.9 m 545.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 628.9 m 224.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 628.9 m 285.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 628.9 m 353.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 628.9 m 417.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 628.9 m 481.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 628.9 m 545.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 557.9 m 224.5 557.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 533.9 m 224.5 533.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 531.9 m 224.5 531.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 557.9 m 353.5 557.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 533.9 m 353.5 533.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 531.9 m 353.5 531.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 557.9 m 481.5 557.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 533.9 m 481.5 533.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 531.9 m 481.5 531.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 268.00 713.80 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 208.50 698.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 343.00 698.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 473.30 698.95 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 176.45 633.80 Td (PSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 233.35 677.80 Td (Weighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 238.35 666.80 Td (Average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 241.30 655.80 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 235.15 644.80 Td (Date Fair) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 244.25 633.80 Td (Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 309.45 633.80 Td (PSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.85 677.80 Td (Weighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 368.85 666.80 Td (Average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 371.80 655.80 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 365.65 644.80 Td (Date Fair) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 374.75 633.80 Td (Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 440.45 633.80 Td (PSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 491.85 677.80 Td (Weighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 496.85 666.80 Td (Average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 499.80 655.80 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 493.65 644.80 Td (Date Fair) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 502.75 633.80 Td (Value) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.00 617.82 Td (Non-vested at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.00 606.82 Td (beginning of year) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 131.59 611.81 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.50 606.82 Td (669,308) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 606.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 606.82 Td (63.91) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.50 606.82 Td (885,894) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 606.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 606.82 Td (57.52) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.25 606.82 Td (1,110,666) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 606.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.50 606.82 Td (39.48) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.00 591.77 Td (Granted) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 116.43 596.76 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.50 591.77 Td (274,831) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 591.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 591.77 Td (64.13) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.50 591.77 Td (314,853) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 591.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 591.77 Td (51.98) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.50 591.77 Td (266,282) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 591.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.50 591.77 Td (91.45) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.00 576.82 Td (V) Tj ET Q q 0 0 0 rg BT 87.72 576.82 Td (ested) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 110.33 581.81 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.85 576.82 Td (\(345,005) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.30 576.82 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 576.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 576.82 Td (60.06) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.85 576.82 Td (\(493,679) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 576.82 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 576.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 576.82 Td (44.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.85 576.82 Td (\(364,172) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.30 576.82 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 576.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.50 576.82 Td (35.74) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.00 561.77 Td (Forfeited) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 121.32 566.76 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.35 561.77 Td (\(26,665) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.30 561.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 561.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 561.77 Td (69.74) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.35 561.77 Td (\(37,760) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 561.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 561.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 561.77 Td (65.35) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.85 561.77 Td (\(126,882) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.30 561.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 561.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.50 561.77 Td (33.32) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.00 547.77 Td (Non-vested at end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.00 536.77 Td (year) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 72.93 541.76 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 184.50 537.82 Td (572,469) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 537.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.50 537.82 Td (66.07) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.50 537.82 Td (669,308) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 537.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.50 537.82 Td (63.91) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.50 537.82 Td (885,894) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.00 537.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.50 537.82 Td (57.52) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 521.40 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 521.40 Td (The number of awards assumes a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 203.51 521.40 Td (one) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.95 521.40 Td ( multiplier) Tj ET Q q 0 0 0 rg BT 259.34 521.40 Td (. ) Tj ET Q q 0 0 0 rg BT 266.66 521.40 Td (The final number of shares of common stock issued may vary depending ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 509.40 Td (on the ending ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 124.93 509.40 Td (three) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.92 509.40 Td (-year performance multiplier) Tj ET Q q 0 0 0 rg BT 260.02 509.40 Td (, which ranges from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.49 509.40 Td (zero) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.70 509.40 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.48 509.40 Td (two) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.48 509.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 484.20 Td (The fair value of the PSUs granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.79 484.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.79 484.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.29 484.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.29 484.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.42 484.20 Td (201) Tj ET Q q 0 0 0 rg BT 342.51 484.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.01 484.20 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.62 484.20 Td ($17.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.90 484.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.40 484.20 Td ($16.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.68 484.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.81 484.20 Td ($24.3 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 471.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 471.00 Td ( for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.30 471.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.30 471.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.80 471.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.80 471.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.93 471.00 Td (201) Tj ET Q q 0 0 0 rg BT 206.02 471.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 211.52 471.00 Td ( grants, respectively) Tj ET Q q 0 0 0 rg BT 299.08 471.00 Td (. ) Tj ET Q q 0 0 0 rg BT 307.13 471.00 Td (The PSUs granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.23 471.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.23 471.00 Td ( will remain unvested until the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 457.80 Td (third anniversary date of their issuance, at which time they will fully vest. ) Tj ET Q q 0 0 0 rg BT 379.71 457.80 Td (The PSUs granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 473.81 457.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.81 457.80 Td ( will vest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.89 457.80 Td (1/3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.95 457.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 444.60 Td (on each of the first three anniversary dates of their issuance. PSUs granted prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.08 444.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.08 444.60 Td ( vest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.30 444.60 Td (1/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 477.36 449.58 Td (th) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.92 444.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.42 444.60 Td (2/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 502.47 449.58 Td (ths) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.82 444.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 534.95 444.60 Td (4/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 549.01 449.58 Td (ths) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 557.35 444.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 431.40 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 431.40 Td (, on the first three anniversary dates of their issuances. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 406.20 Td (The total fair value of PSUs that vested during the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.59 406.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.03 406.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.53 406.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.53 406.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 502.66 406.20 Td (201) Tj ET Q q 0 0 0 rg BT 518.75 406.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.25 406.20 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.00 Td ($20.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.28 393.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.78 393.00 Td ($22.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.06 393.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.19 393.00 Td ($13.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.47 393.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 315.40 393.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 367.80 Td ( During the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.54 367.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.99 367.80 Td (, the Company settled PSUs that were granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.28 367.80 Td (2010) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.28 367.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.60 Td (which had earned a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.96 354.60 Td (1.725) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 162.71 354.60 Td (-times multiplier) Tj ET Q q 0 0 0 rg BT 235.89 354.60 Td (, by issuing a net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.89 354.60 Td (387,461) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.64 354.60 Td ( shares of the Company) Tj ET Q q 0 0 0 rg BT 455.56 354.60 Td (s common stock in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 341.40 Td (accordance with the terms of the PSU awards. ) Tj ET Q q 0 0 0 rg BT 258.12 341.40 Td (The Company and the majority of grant participants mutually agreed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.20 Td (to net share settle the awards to cover income and payroll tax withholdings as provided for in the plan document ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.00 Td (and award agreements. ) Tj ET Q q 0 0 0 rg BT 155.98 315.00 Td (As a result, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 208.53 315.00 Td (200,050) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.28 315.00 Td ( shares were withheld to satisfy income and payroll tax withholding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.80 Td (obligations that occurred upon delivery of the shares underlying those PSUs for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.15 301.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.15 301.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 276.60 Td (During the year ended December31, 2012, the Company settled PSUs that were granted in 2009, which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.40 Td (earned a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.69 263.40 Td (2.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.44 263.40 Td (-times multiplier) Tj ET Q q 0 0 0 rg BT 176.63 263.40 Td (, by issuing a net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.62 263.40 Td (812,562) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 289.37 263.40 Td ( shares of the Company) Tj ET Q q 0 0 0 rg BT 396.30 263.40 Td (s common stock in accordance with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.20 Td (the terms of the PSU awards. ) Tj ET Q q 0 0 0 rg BT 183.61 250.20 Td (The Company and the majority of grant participants mutually agreed to net share ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.00 Td (settle the awards to cover income and payroll tax withholdings as provided for in the plan document and award ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 223.80 Td (agreements. ) Tj ET Q q 0 0 0 rg BT 107.73 223.80 Td (As a result, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.27 223.80 Td (406,866) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.02 223.80 Td ( shares were withheld to satisfy income and payroll tax withholding obligations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 210.60 Td (that occurred upon delivery of the shares underlying those PSUs for 2012. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 185.40 Td (During the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.79 185.40 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 267.33 185.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.83 185.40 Td (, the Company settled PSUs that were granted in 2008, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.20 Td (which had earned a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.96 172.20 Td (0.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.71 172.20 Td (-times multiplier) Tj ET Q q 0 0 0 rg BT 224.89 172.20 Td (, by issuing a net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.89 172.20 Td (206,468) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 337.64 172.20 Td ( shares of the Company) Tj ET Q q 0 0 0 rg BT 444.56 172.20 Td (s common stock in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.00 Td (accordance with the terms of the PSU awards. ) Tj ET Q q 0 0 0 rg BT 258.12 159.00 Td (The Company and the majority of grant participants mutually agreed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.80 Td (to net share settle the awards to cover income and payroll tax withholdings as provided for in the plan document ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.60 Td (and award agreements. ) Tj ET Q q 0 0 0 rg BT 155.98 132.60 Td (As a result, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 208.53 132.60 Td (98,955) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.78 132.60 Td ( shares were withheld to satisfy income and payroll tax withholding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.40 Td (obligations that occurred upon delivery of the shares underlying those PSUs for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.15 119.40 Td (201) Tj ET Q q 0 0 0 rg BT 419.24 119.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.74 119.40 Td (.) Tj ET Q endstream endobj 237 0 obj <> endobj 238 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (18) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Restricted Stock Units Under the Equity Incentive Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company grants RSUs to eligible employees as a part of its equity incentive compensation program. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Restrictions and vesting periods for the awards are determined by the Compensation Committee of the Board of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Directors and are set forth in the award agreements. Each RSU represents a right for one share of the Company) Tj ET Q q 0 0 0 rg BT 544.52 682.80 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (common stock to be delivered upon settlement of the award at the end of a specified period. RSUs are recognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (as general and administrative and exploration expense over the vesting period of the award. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 631.20 Td (The total expense associated with RSUs for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.76 631.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.20 631.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.70 631.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.70 631.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 489.83 631.20 Td (201) Tj ET Q q 0 0 0 rg BT 505.92 631.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.42 631.20 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.78 631.20 Td ($13.1 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 618.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 618.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 87.28 618.00 Td ($9.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.06 618.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.19 618.00 Td ($5.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.97 618.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 276.90 618.00 Td (. ) Tj ET Q q 0 0 0 rg BT 284.54 618.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.43 618.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.88 618.00 Td (, there was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.97 618.00 Td ($19.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.25 618.00 Td ( of total ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (unrecognized expense related to unvested RSU awards, which is being amortized through ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.41 604.80 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.41 604.80 Td (. ) Tj ET Q q 0 0 0 rg BT 477.46 604.80 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (records compensation expense associated with the issuance of RSUs based on the fair value of the awards as of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (date of grant. ) Tj ET Q q 0 0 0 rg BT 113.64 578.40 Td (The fair value of an RSU is equal to the closing price of the Company) Tj ET Q q 0 0 0 rg BT 424.61 578.40 Td (s common stock on the day of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (grant. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 540.00 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 540.00 Td ( summary of the status and activity of non-vested RSUs is presented below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 502.5 m 220.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 502.5 m 234.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 502.5 m 291.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 502.5 m 305.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 502.5 m 357.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 502.5 m 371.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 502.5 m 428.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 502.5 m 442.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 502.5 m 491.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 502.5 m 504.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 502.5 m 562.5 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 488.5 m 220.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 488.5 m 234.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 488.5 m 291.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 488.5 m 357.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 488.5 m 371.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 488.5 m 428.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 488.5 m 491.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 488.5 m 504.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 488.5 m 562.5 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 426.5 m 220.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 426.5 m 291.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 426.5 m 357.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 426.5 m 428.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 426.5 m 491.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 426.5 m 562.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 426.5 m 220.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 426.5 m 291.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 426.5 m 357.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 426.5 m 428.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 426.5 m 491.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 426.5 m 562.5 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 358.5 m 220.5 358.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 333.5 m 220.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 168.5 331.5 m 220.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 358.5 m 357.5 358.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 333.5 m 357.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 331.5 m 357.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 358.5 m 491.5 358.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 333.5 m 491.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 331.5 m 491.5 331.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 283.50 507.40 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 218.50 492.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 355.50 492.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 491.30 492.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 180.85 431.40 Td (RSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 238.35 475.40 Td (W) Tj ET Q q 0 0 0 rg BT 248.74 475.40 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 243.35 464.40 Td (A) Tj ET Q q 0 0 0 rg BT 250.48 464.40 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 246.30 453.40 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 251.50 442.40 Td (Date) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 237.95 431.40 Td (Fair) Tj ET Q q 0 0 0 rg BT 257.91 431.40 Td ( ) Tj ET Q q 0 0 0 rg BT 260.46 431.40 Td (V) Tj ET Q q 0 0 0 rg BT 267.39 431.40 Td (alue) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 317.85 431.40 Td (RSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 375.35 475.40 Td (W) Tj ET Q q 0 0 0 rg BT 385.74 475.40 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.35 464.40 Td (A) Tj ET Q q 0 0 0 rg BT 387.48 464.40 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 383.30 453.40 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.50 442.40 Td (Date) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 374.95 431.40 Td (Fair) Tj ET Q q 0 0 0 rg BT 394.91 431.40 Td ( ) Tj ET Q q 0 0 0 rg BT 397.46 431.40 Td (V) Tj ET Q q 0 0 0 rg BT 404.39 431.40 Td (alue) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 453.35 431.40 Td (RSUs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 508.85 475.40 Td (W) Tj ET Q q 0 0 0 rg BT 519.24 475.40 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 513.85 464.40 Td (A) Tj ET Q q 0 0 0 rg BT 520.98 464.40 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 516.80 453.40 Td (Grant-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 522.00 442.40 Td (Date) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 508.45 431.40 Td (Fair) Tj ET Q q 0 0 0 rg BT 528.41 431.40 Td ( ) Tj ET Q q 0 0 0 rg BT 530.96 431.40 Td (V) Tj ET Q q 0 0 0 rg BT 537.89 431.40 Td (alue) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 416.37 Td (Non-vested at beginning) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 405.37 Td (of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.50 405.42 Td (496,244) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 405.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.50 405.42 Td (51.81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.50 405.42 Td (308,877) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 405.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.50 405.42 Td (44.33) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.50 405.42 Td (333,359) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.00 405.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 405.42 Td (31.16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 390.37 Td (Granted) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.50 390.37 Td (329,939) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 390.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.50 390.37 Td (60.01) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.50 390.37 Td (379,332) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 390.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.50 390.37 Td (49.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.00 390.37 Td (98,952) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.00 390.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 390.37 Td (72.69) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 376.37 Td (Vested) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.85 376.37 Td (\(207,376) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.30 376.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 376.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.50 376.37 Td (49.73) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.85 376.37 Td (\(166,672) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.30 376.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 376.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.50 376.37 Td (32.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.85 376.37 Td (\(105,820) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.30 376.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.00 376.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 376.37 Td (30.61) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.00 362.37 Td (Forfeited) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.35 362.37 Td (\(38,376) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.30 362.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 362.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.50 362.37 Td (54.37) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.35 362.37 Td (\(25,293) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.30 362.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 362.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.50 362.37 Td (51.06) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.35 362.37 Td (\(17,614) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.30 362.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.00 362.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 362.37 Td (36.80) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 348.37 Td (Non-vested at end of) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 337.37 Td (year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.50 337.42 Td (580,431) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 337.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.50 337.42 Td (57.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.50 337.42 Td (496,244) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.00 337.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.50 337.42 Td (51.81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.50 337.42 Td (308,877) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.00 337.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 337.42 Td (44.33) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 307.80 Td (The fair value of RSUs granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.82 307.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 259.82 307.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.32 307.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 287.32 307.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.45 307.80 Td (201) Tj ET Q q 0 0 0 rg BT 327.54 307.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.04 307.80 Td ( was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.65 307.80 Td ($19.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.93 307.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.43 307.80 Td ($18.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.71 307.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.84 307.80 Td ($7.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 557.63 307.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 294.60 Td (. ) Tj ET Q q 0 0 0 rg BT 110.48 294.60 Td (The RSUs granted in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.80 294.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.80 294.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.18 294.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.18 294.60 Td ( will vest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.26 294.60 Td (1/3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.32 294.60 Td ( on each of the first three anniversary dates of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 281.40 Td (awards. RSUs granted prior to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.00 281.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 211.00 281.40 Td ( vest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.22 281.40 Td (1/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 248.28 286.38 Td (th) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.84 281.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 259.34 281.40 Td (2/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 273.40 286.38 Td (ths) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.74 281.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.87 281.40 Td (4/7) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 319.93 286.38 Td (ths) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.27 281.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 386.20 281.40 Td (, on the first three anniversary dates of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 268.20 Td (their issuances. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 243.00 Td (The total fair value of RSUs that vested during the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.81 243.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.25 243.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.75 243.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.75 243.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.88 243.00 Td (201) Tj ET Q q 0 0 0 rg BT 519.97 243.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.47 243.00 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 229.80 Td ($10.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.28 229.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.78 229.80 Td ($5.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.56 229.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.69 229.80 Td ($3.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.47 229.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 304.40 229.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 204.60 Td (During the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 191.07 204.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.52 204.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.02 204.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.02 204.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.15 204.60 Td (201) Tj ET Q q 0 0 0 rg BT 345.24 204.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 350.74 204.60 Td (, the Company settled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.42 204.60 Td (207,378) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.17 204.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.67 204.60 Td (166,670) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 526.42 204.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 191.40 Td (105,820) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.75 191.40 Td ( RSUs, respectively) Tj ET Q q 0 0 0 rg BT 172.11 191.40 Td (. ) Tj ET Q q 0 0 0 rg BT 180.16 191.40 Td (The Company and the majority of grant participants mutually agreed to net share ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 178.20 Td (settle the awards to cover income and payroll tax withholdings as provided for in the plan document and award ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 165.00 Td (agreements. ) Tj ET Q q 0 0 0 rg BT 107.73 165.00 Td (As a result, the Company issued net shares of common stock of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.71 165.00 Td (139,391) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.46 165.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.96 165.00 Td (1) Tj ET Q q 0 0 0 rg BT 436.05 165.00 Td (16,813) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.30 165.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.43 165.00 Td (72,305) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.68 165.00 Td ( for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 151.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 151.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 77.50 151.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.50 151.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 123.63 151.80 Td (201) Tj ET Q q 0 0 0 rg BT 139.72 151.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.22 151.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 203.15 151.80 Td (. ) Tj ET Q q 0 0 0 rg BT 211.20 151.80 Td (The remaining ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.40 151.80 Td (67,987) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.65 151.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.15 151.80 Td (49,857) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.40 151.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.53 151.80 Td (33,515) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.78 151.80 Td ( shares were withheld to satisfy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.60 Td (income and payroll tax withholding obligations that occurred upon the delivery of the shares underlying those ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 125.40 Td (RSUs for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.01 125.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.01 125.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 121.51 125.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.51 125.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 167.64 125.40 Td (201) Tj ET Q q 0 0 0 rg BT 183.73 125.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.23 125.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 247.16 125.40 Td (.) Tj ET Q endstream endobj 239 0 obj <> endobj 240 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 38.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 38.60 Td (19) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Stock Option Grants Under the Equity Incentive Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.20 Td (The Company has previously granted stock options under the St. Mary Land & Exploration Company Stock ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Option Plan and the St. Mary Land & Exploration Company Incentive Stock Option Plan. ) Tj ET Q q 0 0 0 rg BT 450.94 696.00 Td (The last issuance of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (stock options occurred on December 31, 2004. Stock options to purchase shares of the Company) Tj ET Q q 0 0 0 rg BT 481.05 682.80 Td (s common stock ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (had been granted to eligible employees and members of the Board of Directors. ) Tj ET Q q 0 0 0 rg BT 404.64 669.60 Td (All options granted under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (option plans were granted at exercise prices equal to the respective closing market price of the Company) Tj ET Q q 0 0 0 rg BT 513.05 656.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (underlying common stock on the grant dates. ) Tj ET Q q 0 0 0 rg BT 253.16 643.20 Td (All stock options granted under the option plans are exercisable for a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (period of up to ten years from the date of grant. ) Tj ET Q q 0 0 0 rg BT 263.52 630.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.40 630.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.85 630.00 Td (, there was no unrecognized ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (compensation expense related to stock option awards.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 590.40 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 590.40 Td ( summary of activity associated with the Company) Tj ET Q q 0 0 0 rg BT 319.71 590.40 Td (s Stock Option Plans during the last three years is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.20 Td (presented in the following table:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 498.70000000000005 m 318.5 498.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 498.70000000000005 m 404.5 498.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 498.70000000000005 m 490.5 498.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 442.70000000000005 m 318.5 442.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 442.70000000000005 m 318.5 442.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 429.70000000000005 m 318.5 429.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 427.70000000000005 m 318.5 427.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 429.70000000000005 m 490.5 429.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 427.70000000000005 m 490.5 427.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 413.70000000000005 m 318.5 413.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 411.70000000000005 m 318.5 411.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 413.70000000000005 m 490.5 413.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 411.70000000000005 m 490.5 411.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 356.70000000000005 m 318.5 356.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 356.70000000000005 m 318.5 356.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 343.70000000000005 m 318.5 343.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 341.70000000000005 m 318.5 341.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 343.70000000000005 m 490.5 343.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 341.70000000000005 m 490.5 341.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 329.70000000000005 m 318.5 329.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 327.70000000000005 m 318.5 327.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 329.70000000000005 m 490.5 329.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 327.70000000000005 m 490.5 327.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 272.70000000000005 m 318.5 272.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 272.70000000000005 m 318.5 272.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 260.70000000000005 m 318.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 258.70000000000005 m 318.5 258.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 260.70000000000005 m 490.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 258.70000000000005 m 490.5 258.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 246.70000000000005 m 318.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 244.70000000000005 m 318.5 244.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 246.70000000000005 m 490.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 244.70000000000005 m 490.5 244.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 342.45 544.75 Td (Weighted -) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 348.85 530.75 Td (Average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 429.95 530.75 Td (Aggregate) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 348.20 516.75 Td (Exercise) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 433.80 516.75 Td (Intrinsic) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 268.20 502.75 Td (Shares) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 355.75 502.75 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 440.75 502.75 Td (Value) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 488.57 Td (For the year ended December 31, 2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 474.57 Td (Outstanding, start of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 474.57 Td (920,765) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 474.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 474.57 Td (13.11) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 460.57 Td (Exercised) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.85 460.57 Td (\(412,551) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 460.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 460.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 460.57 Td (12.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 460.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.75 460.57 Td (24,359,240) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 446.57 Td (Forfeited) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.30 446.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 446.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.30 446.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 432.57 Td (Outstanding, end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 432.57 Td (508,214) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 432.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 432.57 Td (13.86) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 432.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.75 432.57 Td (30,109,110) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 417.62 Td (Vested and exercisable at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 417.62 Td (508,214) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 417.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 417.62 Td (13.86) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 417.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.75 417.62 Td (30,109,110) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 402.57 Td (For the year ended December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 388.57 Td (Outstanding, start of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 388.57 Td (508,214) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 388.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 388.57 Td (13.86) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 374.57 Td (Exercised) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.85 374.57 Td (\(240,368) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 374.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 374.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 374.57 Td (12.65) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 374.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.75 374.57 Td (11,842,575) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 360.57 Td (Forfeited) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.30 360.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 360.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.30 360.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 346.57 Td (Outstanding, end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 346.57 Td (267,846) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 346.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 346.57 Td (14.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 346.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.25 346.57 Td (9,983,177) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 332.57 Td (Vested and exercisable at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 332.57 Td (267,846) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 332.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 332.57 Td (14.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 332.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.25 332.57 Td (9,983,177) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 318.57 Td (For the year ended December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 304.57 Td (Outstanding, start of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.50 304.57 Td (267,846) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 304.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 304.57 Td (14.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 290.57 Td (Exercised) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.85 290.57 Td (\(228,758) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 290.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 290.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 290.57 Td (13.92) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 290.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.75 290.57 Td (12,326,994) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 276.57 Td (Forfeited) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.30 276.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 276.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.30 276.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 262.62 Td (Outstanding, end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.05 262.62 Td (39,088) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 262.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 262.62 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 262.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.25 262.62 Td (2,432,837) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 249.57 Td (Vested and exercisable at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.05 249.57 Td (39,088) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 249.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.55 249.57 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 249.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.25 249.57 Td (2,432,837) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 221.00 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 221.00 Td ( summary of additional information related to options outstanding as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.14 221.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.58 221.00 Td (, follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 184.5 m 313.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 184.5 m 336.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 184.5 m 428.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 184.5 m 313.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 184.5 m 336.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 184.5 m 428.5 184.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 138.5 114.5 m 208.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 114.5 m 313.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 114.5 m 428.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 138.5 114.5 m 208.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 114.5 m 313.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 114.5 m 428.5 114.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 100.5 m 313.5 100.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 87.5 m 313.5 87.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 85.5 m 313.5 85.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 236.40 188.55 Td (Options Outstanding and Exercisable) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 247.50 174.55 Td (Number) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 357.85 174.55 Td (Weighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 240.85 160.55 Td (Of Options) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 362.85 160.55 Td (Average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 237.65 146.55 Td (Outstanding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 356.30 146.55 Td (Remaining) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 153.20 132.55 Td (Exercise) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 258.10 132.55 Td (and) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 353.55 132.55 Td (Contractual) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 156.60 118.55 Td (Price) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 181.02 123.53 Td (\(1\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 239.90 118.55 Td (Exercisable) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 349.00 118.55 Td (Life \(in years\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.00 104.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.55 104.37 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.05 104.37 Td (39,088) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.25 104.37 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.00 90.37 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.05 90.37 Td (39,088) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 63.00 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 63.00 Td ( \(1\) Exercise price is equal to the weighted average exercise price.) Tj ET Q endstream endobj 241 0 obj <> endobj 242 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (120) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The fair value of options was measured at the date of grant using the Black-Scholes-Merton option-pricing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (model.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.00 Td (Cash flows resulting from excess tax benefits are classified as part of cash flows from financing activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (Excess tax benefits are realized tax benefits from tax deductions for vested RSUs, settled PSUs, and exercised ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. ) Tj ET Q q 0 0 0 rg BT 522.37 669.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (Company recorded ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.75 656.40 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.75 656.40 Td ( excess tax benefits for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.45 656.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.90 656.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.40 656.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.40 656.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.53 656.40 Td (201) Tj ET Q q 0 0 0 rg BT 476.62 656.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.12 656.40 Td (. Cash received ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (from exercises under all share-based payment arrangements for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.76 643.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 489.21 643.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.71 643.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.71 643.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 630.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 630.00 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.95 630.00 Td ($3.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 150.73 630.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.23 630.00 Td ($3.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.01 630.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.14 630.00 Td ($5.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 287.92 630.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 345.85 630.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (Dir) Tj ET Q q 0 0 0 rg BT 64.87 604.80 Td (ector Shar) Tj ET Q q 0 0 0 rg BT 110.60 604.80 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 579.60 Td (In ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 97.91 579.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.91 579.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.41 579.60 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.41 579.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 171.55 579.60 Td (201) Tj ET Q q 0 0 0 rg BT 187.64 579.60 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.14 579.60 Td (, the Company issued ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.60 579.60 Td (28,169) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.85 579.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.35 579.60 Td (30,486) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.60 579.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.73 579.60 Td (21,568) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.98 579.60 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 499.15 579.60 Td (, of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 566.40 Td (s common stock held as treasury shares to its non-employee directors pursuant to the Company) Tj ET Q q 0 0 0 rg BT 517.41 566.40 Td (s Equity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.20 Td (Plan. ) Tj ET Q q 0 0 0 rg BT 77.61 553.20 Td (The Company recorded compensation expense related to these issuances of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.77 553.20 Td ($1.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.55 553.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.05 553.20 Td ($1.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.83 553.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td ($1.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.78 540.00 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.27 540.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.71 540.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 285.21 540.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.21 540.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.34 540.00 Td (201) Tj ET Q q 0 0 0 rg BT 347.44 540.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.94 540.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 410.86 540.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (Employee Stock Pur) Tj ET Q q 0 0 0 rg BT 138.78 514.80 Td (chase Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 489.60 Td (Under the Company) Tj ET Q q 0 0 0 rg BT 178.26 489.60 Td (s Employee Stock Purchase Plan \(ESPP\), eligible employees may purchase shares of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 476.40 Td (the Company) Tj ET Q q 0 0 0 rg BT 112.02 476.40 Td (s common stock through payroll deductions of up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.52 476.40 Td (15 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.63 476.40 Td ( of eligible compensation, without ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.20 Td (accruing in excess of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.29 463.20 Td ($25,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.04 463.20 Td ( in fair market value from purchases for each calendar year) Tj ET Q q 0 0 0 rg BT 440.02 463.20 Td (. ) Tj ET Q q 0 0 0 rg BT 448.07 463.20 Td (The purchase price of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 450.00 Td (stock is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.06 450.00 Td (85 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 132.17 450.00 Td ( of the lower of the fair market value of the stock on the first or last day of the purchase period. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (All shares issued under the ESPP) Tj ET Q q 0 0 0 rg BT 195.94 436.80 Td ( on or after December 31, 201) Tj ET Q q 0 0 0 rg BT 327.79 436.80 Td (1, have no minimum restriction period. ) Tj ET Q q 0 0 0 rg BT 505.08 436.80 Td (The ESPP) Tj ET Q q 0 0 0 rg BT 549.60 436.80 Td ( is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (intended to qualify under Section 423 of the IRC. ) Tj ET Q q 0 0 0 rg BT 273.12 423.60 Td (The Company has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.91 423.60 Td (1.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.19 423.60 Td ( shares available under the ESPP) Tj ET Q q 0 0 0 rg BT 548.28 423.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 410.40 Td (for issuance as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 129.42 410.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.86 410.40 Td (. Shares issued under the ESPP) Tj ET Q q 0 0 0 rg BT 355.08 410.40 Td ( totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.52 410.40 Td (77,427) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.77 410.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.82 410.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.82 410.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.32 410.40 Td (66,485) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.57 410.40 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.63 410.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.63 410.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 397.20 Td (41,358) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 80.25 397.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.31 397.20 Td (201) Tj ET Q q 0 0 0 rg BT 110.40 397.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 115.90 397.20 Td (. ) Tj ET Q q 0 0 0 rg BT 123.95 397.20 Td (T) Tj ET Q q 0 0 0 rg BT 129.90 397.20 Td (otal proceeds to the Company for the issuance of these shares were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.41 397.20 Td ($3.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.19 397.20 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.25 397.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 517.25 397.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.75 397.20 Td ($2.8 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.78 384.00 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 95.84 384.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.84 384.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.97 384.00 Td ($2.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.75 384.00 Td ( in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.81 384.00 Td (201) Tj ET Q q 0 0 0 rg BT 225.90 384.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.40 384.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 358.80 Td (The fair value of ESPP) Tj ET Q q 0 0 0 rg BT 187.01 358.80 Td ( shares was measured at the date of grant using the Black-Scholes-Merton option-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 345.60 Td (pricing model. Expected volatility was calculated based on the Company) Tj ET Q q 0 0 0 rg BT 376.55 345.60 Td (s historical daily common stock price, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.40 Td (and the risk-free interest rate is based on U.S. ) Tj ET Q q 0 0 0 rg BT 252.93 332.40 Td (T) Tj ET Q q 0 0 0 rg BT 259.26 332.40 Td (reasury yield curve rates with maturities consistent with a six month ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.20 Td (vesting period. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 294.00 Td (The fair value of ESPP) Tj ET Q q 0 0 0 rg BT 187.01 294.00 Td ( shares issued during the periods reported were estimated using the following ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 280.80 Td (weighted-average assumptions:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256.5 244.29999999999995 m 317.5 244.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 244.29999999999995 m 331.5 244.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 244.29999999999995 m 381.5 244.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 244.29999999999995 m 395.5 244.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 244.29999999999995 m 449.5 244.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256.5 230.29999999999995 m 317.5 230.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 230.29999999999995 m 381.5 230.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 230.29999999999995 m 449.5 230.29999999999995 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.00 248.35 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 275.50 234.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 345.00 234.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 411.30 234.35 Td (2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 220.17 Td (Risk free interest rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.05 220.17 Td (0.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.80 220.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.00 220.17 Td (0.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.80 220.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.00 220.17 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.80 220.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 206.17 Td (Dividend yield) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.05 206.17 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.80 206.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.00 206.17 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.80 206.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.00 206.17 Td (0.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.80 206.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 192.17 Td (Volatility factor of the expected market) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 178.17 Td (price of the Companys common stock) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.55 178.17 Td (41.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.80 178.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.50 178.17 Td (47.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.80 178.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.50 178.17 Td (36.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.80 178.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 164.17 Td (Expected life \(in years\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.25 164.17 Td (0.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.25 164.17 Td (0.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.25 164.17 Td (0.5) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 135.60 Td (The Company expensed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 195.05 135.60 Td ($1.1 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.84 135.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.34 135.60 Td ($948,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.59 135.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.72 135.60 Td ($682,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.97 135.60 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.46 135.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.90 135.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 122.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 122.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.13 122.40 Td (201) Tj ET Q q 0 0 0 rg BT 112.22 122.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.72 122.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 175.65 122.40 Td (, based on the estimated fair value of grants.) Tj ET Q endstream endobj 243 0 obj <> endobj 244 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (121) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (401\(k\) Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.20 Td (The Company has a defined contribution pension plan \(the 401\(k\) Plan\) that is subject to the Employee ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Retirement Income Security ) Tj ET Q q 0 0 0 rg BT 176.16 696.00 Td (Act of 1974. ) Tj ET Q q 0 0 0 rg BT 236.75 696.00 Td (The 401\(k\) Plan allows eligible employees to contribute a maximum of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 682.80 Td (60 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.12 682.80 Td ( of their base salaries up to the contribution limits established under the IRC. ) Tj ET Q q 0 0 0 rg BT 439.29 682.80 Td (The Company matches ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (each employee) Tj ET Q q 0 0 0 rg BT 118.71 669.60 Td (s contribution up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.32 669.60 Td (six percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.27 669.60 Td ( of the employee) Tj ET Q q 0 0 0 rg BT 331.94 669.60 Td (s base salary and may make additional contributions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (at its discretion. Beginning in 2014, the Company will also match employee contributions up to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.88 656.40 Td (six percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.84 656.40 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (employee's bonus paid pursuant to the Company's cash bonus plan. ) Tj ET Q q 0 0 0 rg BT 350.72 643.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 416.41 643.20 Td (s matching contributions to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (401\(k\) Plan were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 128.50 630.00 Td ($4.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.28 630.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 187.78 630.00 Td ($3.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.57 630.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.70 630.00 Td ($2.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.48 630.00 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.97 630.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.41 630.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.91 630.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.91 630.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 616.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 616.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 129.52 616.80 Td (. No discretionary contributions were made by the Company to the 401\(k\) Plan for any of these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (years.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 578.40 Td (Net Pr) Tj ET Q q 0 0 0 rg BT 78.62 578.40 Td (ofits Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 553.20 Td (Under the Company) Tj ET Q q 0 0 0 rg BT 178.26 553.20 Td (s Net Profits Plan, all oil and gas wells that were completed or acquired during each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (year were designated within a specific pool. Key employees recommended by senior management and designated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.80 Td (as participants by the Compensation Committee of the Company) Tj ET Q q 0 0 0 rg BT 337.78 526.80 Td (s Board of Directors and employed by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (Company on the last day of that year became entitled to payments under the Net Profits Plan after the Company has ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 500.40 Td (received net cash flows returning ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 198.75 500.40 Td (100 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.36 500.40 Td ( of all costs associated with that pool. ) Tj ET Q q 0 0 0 rg BT 420.63 500.40 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 465.99 500.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.49 500.40 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 517.60 500.40 Td ( of future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 487.20 Td (net cash flows generated by the pool are allocated among the participants and distributed at least annually) Tj ET Q q 0 0 0 rg BT 514.18 487.20 Td (. ) Tj ET Q q 0 0 0 rg BT 522.23 487.20 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 474.00 Td (portion of net cash flows from the pool to be allocated among the participants increases to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.94 474.00 Td (20 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.05 474.00 Td ( after the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td (Company has recovered ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.04 460.80 Td (200 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.66 460.80 Td ( of the total costs for the pool, including payments made under the Net Profits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (Plan at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.18 447.60 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.30 447.60 Td ( level. In December 2007, the Board of Directors discontinued the creation of new pools ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (under the Net Profits Plan. ) Tj ET Q q 0 0 0 rg BT 171.90 434.40 Td (As a result, the 2007 pool was the last Net Profits Plan pool established by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 421.20 Td (Company) Tj ET Q q 0 0 0 rg BT 92.06 421.20 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 396.00 Td (Cash payments made or accrued under the Net Profits Plan that have been recorded as either general and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 382.80 Td (administrative expense or exploration expense are detailed in the table below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 345.29999999999995 m 362.5 345.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 345.29999999999995 m 376.5 345.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 345.29999999999995 m 453.5 345.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 345.29999999999995 m 467.5 345.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 345.29999999999995 m 539.5 345.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 331.29999999999995 m 362.5 331.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 331.29999999999995 m 453.5 331.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 331.29999999999995 m 539.5 331.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 290.29999999999995 m 453.5 290.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 290.29999999999995 m 362.5 290.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 277.29999999999995 m 362.5 277.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 275.29999999999995 m 362.5 275.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 290.29999999999995 m 453.5 290.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 277.29999999999995 m 453.5 277.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 275.29999999999995 m 453.5 275.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 290.29999999999995 m 539.5 290.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 277.29999999999995 m 539.5 277.29999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 275.29999999999995 m 539.5 275.29999999999995 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 326.00 350.20 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 308.00 335.35 Td (2013) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.50 335.98 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 492.30 335.35 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 374.00 321.35 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 308.17 Td (General and administrative expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 308.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.05 308.17 Td (13,734) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.00 308.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.05 308.17 Td (15,565) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.00 308.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 505.05 308.17 Td (19,326) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 294.17 Td (Exploration expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.55 294.17 Td (1,310) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.55 294.17 Td (1,751) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.55 294.17 Td (2,091) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 280.17 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 280.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.05 280.17 Td (15,044) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.00 280.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.05 280.17 Td (17,316) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.00 280.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 505.05 280.17 Td (21,417) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 251.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 140.89 251.60 Td (, the Company made or accrued cash payments under the Net Profits Plan of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.66 251.60 Td ($10.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 538.94 251.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 238.40 Td ($2.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.78 238.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.91 238.40 Td ($6.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.69 238.40 Td ( for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.18 238.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.62 238.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.12 238.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.12 238.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.26 238.40 Td (201) Tj ET Q q 0 0 0 rg BT 425.35 238.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.85 238.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 488.78 238.40 Td (, as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.20 Td (divestiture proceeds. ) Tj ET Q q 0 0 0 rg BT 146.33 225.20 Td (The cash payments are accounted for as a reduction in the gain \(loss\) on divestiture activity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.00 Td (line item in the accompanying statements of operations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 186.80 Td (The Company records changes in the present value of estimated future payments under the Net Profits Plan ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 173.60 Td (as a separate line item in the accompanying statements of operations. ) Tj ET Q q 0 0 0 rg BT 359.22 173.60 Td (The change in the estimated liability is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.40 Td (recorded as a non-cash expense or benefit in the current period. ) Tj ET Q q 0 0 0 rg BT 334.15 160.40 Td (The amount recorded as an expense or benefit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.20 Td (associated with the change in the estimated liability is not allocated to general and administrative expense or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.00 Td (exploration expense because it is associated with the future net cash flows from oil and gas properties in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.80 Td (respective pools rather than results being realized through current period production. If the Company allocated the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 107.60 Td (change in liability to these specific functional line items, based on the current allocation of actual distributions made ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 94.40 Td (by the Company) Tj ET Q q 0 0 0 rg BT 122.00 94.40 Td (, such expenses or benefits would predominately be allocated to general and administrative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 81.20 Td (expense. ) Tj ET Q q 0 0 0 rg BT 93.48 81.20 Td (The amount that would be allocated to exploration expense is minimal in comparison. Over time, less of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 68.00 Td (the amount distributed relates to prospective exploration ef) Tj ET Q q 0 0 0 rg BT 309.14 68.00 Td (forts as more of the amount distributed is paid to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 54.80 Td (employees that have terminated employment and do not provide ongoing exploration support to the Company) Tj ET Q q 0 0 0 rg BT 532.57 54.80 Td (.) Tj ET Q endstream endobj 245 0 obj <> endobj 246 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (122) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Note 8 Pension Benefits) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (The Company has a non-contributory defined benefit pension plan covering substantially all employees ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (who meet age and service requirements \(the Qualified Pension Plan\). ) Tj ET Q q 0 0 0 rg BT 369.30 696.20 Td (The Company also has a supplemental non-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (contributory pension plan covering certain management employees \(the Nonqualified Pension Plan and together ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (with the Qualified Pension Plan, the Pension Plans\).) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 644.60 Td (Obligations and Funded Status for Both Pension Plans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 619.40 Td (The Company recognizes the funded status, \(i.e. the dif) Tj ET Q q 0 0 0 rg BT 329.26 619.40 Td (ference between the fair value of plan assets and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 606.20 Td (projected benefit obligation\) of the Company) Tj ET Q q 0 0 0 rg BT 251.92 606.20 Td (s Pension Plans in the accompanying balance sheets as either an asset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 593.00 Td (or a liability and recognizes a corresponding adjustment to accumulated other comprehensive income, net of tax. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.80 Td (The projected benefit obligation is the actuarial present value of the benefits earned to date by plan participants ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.60 Td (based on employee service and compensation including the ef) Tj ET Q q 0 0 0 rg BT 322.27 566.60 Td (fect of assumed future salary increases. ) Tj ET Q q 0 0 0 rg BT 500.44 566.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 553.40 Td (accumulated benefit obligation uses the same factors as the projected benefit obligation but excludes the ef) Tj ET Q q 0 0 0 rg BT 519.88 553.40 Td (fects of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 540.20 Td (assumed future salary increases. ) Tj ET Q q 0 0 0 rg BT 197.02 540.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 262.71 540.20 Td (s measurement date for plan assets and obligations is December 31.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 503.70000000000005 m 380.5 503.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 503.70000000000005 m 394.5 503.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 503.70000000000005 m 480.5 503.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 489.70000000000005 m 380.5 489.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 503.70000000000005 m 480.5 503.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 489.70000000000005 m 480.5 489.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 377.70000000000005 m 380.5 377.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 363.70000000000005 m 380.5 363.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 377.70000000000005 m 480.5 377.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 363.70000000000005 m 480.5 363.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 279.70000000000005 m 380.5 279.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 279.70000000000005 m 480.5 279.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 279.70000000000005 m 380.5 279.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 265.70000000000005 m 380.5 265.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 279.70000000000005 m 480.5 279.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 265.70000000000005 m 480.5 265.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 265.70000000000005 m 380.5 265.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 252.70000000000005 m 380.5 252.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 250.70000000000005 m 380.5 250.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 265.70000000000005 m 480.5 265.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 252.70000000000005 m 480.5 252.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 250.70000000000005 m 480.5 250.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 305.50 507.75 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 326.00 493.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.00 493.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 353.50 479.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 465.57 Td (Change in benefit obligation:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 451.57 Td (Projected benefit obligation at beginning of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.05 451.57 Td (40,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.05 451.57 Td (29,480) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 437.57 Td (Service cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.55 437.57 Td (6,291) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.55 437.57 Td (4,934) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 423.57 Td (Interest cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.55 423.57 Td (1,627) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.55 423.57 Td (1,374) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 409.57 Td (Plan amendments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.30 409.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 409.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 395.57 Td (Actuarial loss \(gain\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.85 395.57 Td (\(1,577) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 395.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.55 395.57 Td (5,467) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 381.57 Td (Benefits paid) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.85 381.57 Td (\(3,293) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 381.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.85 381.57 Td (\(1,018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.30 381.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 367.57 Td (Projected benefit obligation at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.05 367.57 Td (43,285) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.05 367.57 Td (40,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 339.57 Td (Change in plan assets:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 325.57 Td (Fair value of plan assets at beginning of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.05 325.57 Td (20,254) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.05 325.57 Td (13,940) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 311.57 Td (Actual return on plan assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.55 311.57 Td (2,726) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.55 311.57 Td (1,952) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 297.57 Td (Employer contribution) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.55 297.57 Td (4,971) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.55 297.57 Td (5,380) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 283.57 Td (Benefits paid) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.85 283.57 Td (\(3,293) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 283.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.85 283.57 Td (\(1,018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.30 283.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 269.57 Td (Fair value of plan assets at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.05 269.57 Td (24,658) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.05 269.57 Td (20,254) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 255.57 Td (Funded status at end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.00 255.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.35 255.57 Td (\(18,627) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.30 255.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.00 255.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.35 255.57 Td (\(19,983) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.30 255.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 225.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 225.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 225.80 Td (s underfunded status for the Pension Plans for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.54 225.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 513.98 225.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.36 225.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 557.36 225.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 212.60 Td (is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 60.09 212.60 Td ($18.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.37 212.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 140.75 212.60 Td ($20.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 200.03 212.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 257.96 212.60 Td (, and is recognized in the accompanying balance sheets as a portion ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 199.40 Td (of other noncurrent liabilities. No plan assets of the Qualified Pension Plan were returned to the Company during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 186.20 Td (the fiscal year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.45 186.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.89 186.20 Td (. ) Tj ET Q q 0 0 0 rg BT 237.95 186.20 Td (There are no plan assets in the Nonqualified Pension Plan. ) Tj ET Q q 0 0 0 rg BT 499.85 186.20 Td (The plan was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 173.00 Td (amended in 201) Tj ET Q q 0 0 0 rg BT 119.85 173.00 Td (1 to increase the vesting percent to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.32 173.00 Td (40 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.44 173.00 Td ( after attaining ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.33 173.00 Td (two) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.83 173.00 Td ( years of service and increasing by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.80 Td (20 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 96.12 159.80 Td ( per year until fully vested. ) Tj ET Q endstream endobj 247 0 obj <> endobj 248 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (123) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Information for Pension Plan with ) Tj ET Q q 0 0 0 rg BT 204.11 734.40 Td (Accumulated Benefit Obligation in Excess of Plan ) Tj ET Q q 0 0 0 rg BT 427.22 734.40 Td (Assets for Both Plans) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 697.9 m 393.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 697.9 m 407.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 697.9 m 493.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 683.9 m 393.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 683.9 m 493.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 656.9 m 393.5 656.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 654.9 m 393.5 654.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 656.9 m 493.5 656.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 654.9 m 493.5 654.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 613.9 m 393.5 613.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 600.9 m 393.5 600.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 598.9 m 393.5 598.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 613.9 m 493.5 613.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 600.9 m 493.5 600.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 598.9 m 493.5 598.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 354.55 701.95 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.00 687.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 439.00 687.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 366.50 673.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 659.77 Td (Projected benefit obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.05 659.77 Td (43,285) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.05 659.77 Td (40,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 631.77 Td (Accumulated benefit obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.00 631.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.05 631.77 Td (32,396) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.00 631.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.05 631.77 Td (29,437) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 617.77 Td (Less: Fair value of plan assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.35 617.77 Td (\(24,658) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.30 617.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.35 617.77 Td (\(20,254) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 489.30 617.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 603.77 Td (Underfunded accumulated benefit obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.00 603.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.55 603.77 Td (7,738) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.00 603.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.55 603.77 Td (9,183) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 575.20 Td (Pension expense is determined based upon the annual service cost of benefits \(the actuarial cost of benefits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 562.00 Td (earned during a period\) and the interest cost on those liabilities, less the expected return on plan assets. ) Tj ET Q q 0 0 0 rg BT 507.69 562.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 548.80 Td (expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 535.60 Td (changes in fair value over a five-year period. ) Tj ET Q q 0 0 0 rg BT 252.59 535.60 Td (This practice is intended to reduce year) Tj ET Q q 0 0 0 rg BT 425.24 535.60 Td (-to-year volatility in pension ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 522.40 Td (expense, but it can have the ef) Tj ET Q q 0 0 0 rg BT 182.66 522.40 Td (fect of delaying recognition of dif) Tj ET Q q 0 0 0 rg BT 331.21 522.40 Td (ferences between actual returns on assets and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 509.20 Td (expected returns based on long-term rate of return assumptions. ) Tj ET Q q 0 0 0 rg BT 335.00 509.20 Td (Amortization of unrecognized net gain or loss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 496.00 Td (resulting from actual experience dif) Tj ET Q q 0 0 0 rg BT 206.79 496.00 Td (ferent from that assumed and from changes in assumptions \(excluding asset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 482.80 Td (gains and losses not yet reflected in market-related value\) is included as a component of net periodic benefit cost for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 469.60 Td (a year) Tj ET Q q 0 0 0 rg BT 75.95 469.60 Td (. If, as of the beginning of the year) Tj ET Q q 0 0 0 rg BT 230.38 469.60 Td (, the unrecognized net gain or loss exceeds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.28 469.60 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.40 469.60 Td ( of the greater of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 456.40 Td (projected benefit obligation and the market-related value of plan assets, then the amortization is the excess divided ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 443.20 Td (by the average remaining service period of participating employees expected to receive benefits under the plan.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 418.00 Td (Pre-tax amounts not yet recognized in net periodic pension costs, but rather recognized in accumulated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 404.80 Td (other comprehensive loss as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.38 404.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.82 404.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.21 404.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.21 404.80 Td (, consist of:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 368.3 m 376.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 368.3 m 390.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 368.3 m 485.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 368.3 m 376.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 354.3 m 376.5 354.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 368.3 m 390.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 368.3 m 485.5 368.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 354.3 m 485.5 354.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 298.3 m 376.5 298.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 298.3 m 485.5 298.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 298.3 m 376.5 298.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 285.3 m 376.5 285.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 283.3 m 376.5 283.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 298.3 m 485.5 298.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 285.3 m 485.5 285.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 283.3 m 485.5 283.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 332.55 372.35 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.50 358.35 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.50 358.35 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 344.50 344.35 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 330.17 Td (Unrecognized actuarial losses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.00 330.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.55 330.17 Td (8,439) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.00 330.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.05 330.17 Td (12,427) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 316.17 Td (Unrecognized prior service costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 355.80 316.17 Td (136) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.80 316.17 Td (153) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 302.17 Td (Unrecognized transition obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 361.30 302.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.30 302.17 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 288.17 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.00 288.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.55 288.17 Td (8,575) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.00 288.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.05 288.17 Td (12,580) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 259.60 Td (The estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.40 Td (benefit cost over the next fiscal year is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.27 246.40 Td ($436,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.52 246.40 Td (.) Tj ET Q endstream endobj 249 0 obj <> endobj 250 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (124) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Pre-tax changes recognized in other comprehensive income \(loss\) during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.47 734.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.47 734.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.97 734.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.97 734.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.11 734.40 Td (201) Tj ET Q q 0 0 0 rg BT 499.20 734.40 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.70 734.40 Td (, were as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 684.7 m 323.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 684.7 m 337.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 684.7 m 423.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 684.7 m 437.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 684.7 m 518.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 684.7 m 323.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 670.7 m 323.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 684.7 m 337.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 684.7 m 423.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 670.7 m 423.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 684.7 m 518.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 670.7 m 518.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 586.7 m 323.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 586.7 m 423.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 586.7 m 518.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 586.7 m 323.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 571.7 m 323.5 571.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 569.7 m 323.5 569.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 586.7 m 423.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 571.7 m 423.5 571.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 569.7 m 423.5 569.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 586.7 m 518.5 586.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 571.7 m 518.5 571.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 569.7 m 518.5 569.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 298.50 688.75 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.50 674.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 369.00 674.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 466.80 674.75 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 346.50 660.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 646.57 Td (Net actuarial gain \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.55 646.57 Td (2,766) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.85 646.57 Td (\(4,680) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 646.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.85 646.57 Td (\(3,014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 646.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 632.57 Td (Prior service cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.30 632.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.30 632.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.10 632.57 Td (\(170) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 632.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 618.57 Td (Less: Amortization of:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 604.57 Td (Prior service cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.60 604.57 Td (\(17) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.30 604.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.60 604.57 Td (\(17) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 604.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.30 604.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 590.57 Td (Actuarial loss) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.85 590.57 Td (\(1,222) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.30 590.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.10 590.57 Td (\(754) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 590.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.10 590.57 Td (\(405) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 590.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 575.62 Td (Total other comprehensive income \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.00 575.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.55 575.62 Td (4,005) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.00 575.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.85 575.62 Td (\(3,909) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.30 575.62 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.00 575.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 485.85 575.62 Td (\(2,779) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 575.62 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 546.00 Td (Components of Net Periodic Benefit Cost for Both Pension Plans) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 509.5 m 321.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 509.5 m 335.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 509.5 m 403.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 509.5 m 417.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 509.5 m 492.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 495.5 m 321.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 495.5 m 403.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 495.5 m 492.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 384.5 m 321.5 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 371.5 m 321.5 371.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 369.5 m 321.5 369.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 384.5 m 403.5 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 371.5 m 403.5 371.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 369.5 m 403.5 369.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 384.5 m 492.5 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 371.5 m 492.5 371.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 369.5 m 492.5 369.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 289.00 513.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 274.00 499.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 358.00 499.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 443.80 499.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 337.00 485.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 471.37 Td (Components of net periodic benefit cost:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 457.37 Td (Service cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.55 457.37 Td (6,291) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 457.37 Td (4,934) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.55 457.37 Td (3,800) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 443.37 Td (Interest cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.55 443.37 Td (1,627) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.25 443.37 Td (1,374) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.55 443.37 Td (1,184) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 428.42 Td (Expected return on plan assets that) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 93.00 417.42 Td (reduces periodic pension cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.85 417.42 Td (\(1,538) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.30 417.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.85 417.42 Td (\(1,165) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.30 417.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.10 417.42 Td (\(880) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.30 417.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 402.37 Td (Amortization of prior service cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 306.30 402.37 Td (17) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.30 402.37 Td (17) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.30 402.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 388.37 Td (Amortization of net actuarial loss) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.55 388.37 Td (1,222) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.50 388.37 Td (754) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.50 388.37 Td (405) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 374.37 Td (Net periodic benefit cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.00 374.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.55 374.37 Td (7,619) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.00 374.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 374.37 Td (5,914) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.00 374.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.55 374.37 Td (4,509) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 345.80 Td (Gains and losses in excess of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 216.75 345.80 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.87 345.80 Td ( of the greater of the benefit obligation and the market-related value ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.60 Td (of assets are amortized over the average remaining service period of active participants.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 307.40 Td (Pension Plan ) Tj ET Q q 0 0 0 rg BT 111.52 307.40 Td (Assumptions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 282.20 Td (W) Tj ET Q q 0 0 0 rg BT 95.50 282.20 Td (eighted-average assumptions to measure the Company) Tj ET Q q 0 0 0 rg BT 338.35 282.20 Td (s projected benefit obligation and net periodic ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 269.00 Td (benefit cost are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 232.5 m 316.5 232.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 232.5 m 325.5 232.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 232.5 m 397.5 232.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 232.5 m 406.5 232.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 232.5 m 478.5 232.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 218.5 m 316.5 218.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 218.5 m 397.5 218.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 218.5 m 478.5 218.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 218.5 m 316.5 218.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 315.55 236.55 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.00 222.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 350.00 222.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 431.30 222.55 Td (2011) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 57 206.90673828125 m 179.18701171875 206.90673828125 l s q 0 0 0 rg BT 57.00 208.37 Td (Projected benefit obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 194.37 Td (Discount rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.50 194.37 Td (5.0%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 194.37 Td (3.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.50 194.37 Td (4.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 180.37 Td (Rate of compensation increase) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.50 180.37 Td (6.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 180.37 Td (6.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.50 180.37 Td (6.2%) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 57 164.90673828125 m 165.431640625 164.90673828125 l s q 0 0 0 rg BT 57.00 166.37 Td (Net periodic benefit cost) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 152.37 Td (Discount rate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.50 152.37 Td (3.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 152.37 Td (4.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.50 152.37 Td (5.3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 138.37 Td (Expected return on plan assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.50 138.37 Td (7.5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 138.37 Td (7.5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.50 138.37 Td (7.5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 75.00 124.37 Td (Rate of compensation increase) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.50 124.37 Td (6.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.50 124.37 Td (6.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.50 124.37 Td (6.2%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 95.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 95.80 Td (s pension investment policy includes various guidelines and procedures designed to ensure ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 82.60 Td (that assets are prudently invested in a manner necessary to meet the future benefit obligation of the Pension Plans. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 69.40 Td (The policy does not permit the direct investment of plan assets in the Company) Tj ET Q q 0 0 0 rg BT 401.62 69.40 Td (s securities. ) Tj ET Q q 0 0 0 rg BT 458.24 69.40 Td (The Qualified Pension ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 56.20 Td (Plan's investment horizon is long-term and accordingly the tar) Tj ET Q q 0 0 0 rg BT 323.05 56.20 Td (get asset allocations encompass a strategic, long-term ) Tj ET Q endstream endobj 251 0 obj <> endobj 252 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (125) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (perspective of capital markets, expected risk and return behavior and perceived future economic conditions. ) Tj ET Q q 0 0 0 rg BT 529.64 734.40 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (key investment principles of diversification, assessment of risk, and tar) Tj ET Q q 0 0 0 rg BT 362.31 721.20 Td (geting the optimal expected returns for given ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (levels of risk are applied.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 682.80 Td (The Qualified Pension Plan's investment portfolio contains a diversified blend of investments, which may ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.60 Td (reflect varying rates of return. ) Tj ET Q q 0 0 0 rg BT 186.93 669.60 Td (The investments are further diversified within each asset classification. ) Tj ET Q q 0 0 0 rg BT 504.71 669.60 Td (This ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.40 Td (portfolio diversification provides protection against a single security or class of securities having a disproportionate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (impact on aggregate investment performance. ) Tj ET Q q 0 0 0 rg BT 256.58 643.20 Td (The actual asset allocations are reviewed and rebalanced on a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.00 Td (periodic basis to maintain the tar) Tj ET Q q 0 0 0 rg BT 193.68 630.00 Td (get allocations. ) Tj ET Q q 0 0 0 rg BT 265.57 630.00 Td (The weighted-average asset allocation of the Qualified Pension ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (Plan is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 581.3 m 295.5 581.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295.5 581.3 m 304.5 581.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 581.3 m 367.5 581.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 566.3 m 150.5 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 150.5 566.3 m 218.5 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 566.3 m 295.5 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 566.3 m 367.5 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 566.3 m 295.5 566.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 150.5 521.3 m 218.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 521.3 m 295.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 521.3 m 367.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 150.5 521.3 m 218.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 150.5 507.3 m 218.5 507.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 150.5 505.3 m 218.5 505.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 521.3 m 295.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 507.3 m 295.5 507.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 505.3 m 295.5 505.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 521.3 m 367.5 521.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 507.3 m 367.5 507.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304.5 505.3 m 367.5 505.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 168.60 584.35 Td (Target) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 251.55 584.35 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 58.00 571.20 Td (Asset Category) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 173.00 571.20 Td (2014) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 250.00 571.20 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 324.50 571.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 556.17 Td (Equity securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.55 556.17 Td (44.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.80 556.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.55 556.17 Td (43.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.80 556.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.50 556.17 Td (42.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.80 556.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 541.17 Td (Debt securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.55 541.17 Td (33.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.80 541.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.55 541.17 Td (32.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.80 541.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.50 541.17 Td (32.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.80 541.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 58.00 526.17 Td (Other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 183.55 526.17 Td (23.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.80 526.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.55 526.17 Td (24.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.80 526.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.50 526.17 Td (24.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.80 526.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 511.17 Td (Total) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 178.00 511.17 Td (100.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.80 511.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.00 511.17 Td (100.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.80 511.17 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 511.17 Td (100.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.80 511.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 481.60 Td (There is no asset allocation of the Nonqualified Pension Plan since there are no plan assets in that plan. ) Tj ET Q q 0 0 0 rg BT 544.52 481.60 Td (An ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 468.40 Td (expected return on plan assets of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.61 468.40 Td (7.5 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.48 468.40 Td ( was used to calculate the Company) Tj ET Q q 0 0 0 rg BT 406.16 468.40 Td (s obligation under the Qualified ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 455.20 Td (Pension Plan for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 125.47 455.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.47 455.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.85 455.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.85 455.20 Td (. Factors considered in determining the expected rate of return include the long-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 442.00 Td (term historical rate of return provided by the equity and debt securities markets and input from the investment ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 428.80 Td (consultants and trustees managing the plan assets. ) Tj ET Q q 0 0 0 rg BT 274.95 428.80 Td (The dif) Tj ET Q q 0 0 0 rg BT 306.82 428.80 Td (ference in investment income using the projected rate of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 415.60 Td (return compared to the actual rates of return for the past two years was not material and is not expected to have a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 402.40 Td (material ef) Tj ET Q q 0 0 0 rg BT 97.13 402.40 Td (fect on the accompanying statements of operations or cash flows from operating activities in future years.) Tj ET Q endstream endobj 253 0 obj <> endobj 254 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (126) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Fair V) Tj ET Q q 0 0 0 rg BT 77.81 734.40 Td (alue ) Tj ET Q q 0 0 0 rg BT 99.30 734.40 Td (Assumptions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.20 Td (The fair value of the Company) Tj ET Q q 0 0 0 rg BT 224.37 709.20 Td (s Qualified Pension Plan assets as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.82 709.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.27 709.20 Td (, utilizing the fair ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (value hierarchy discussed in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 177.07 696.00 Td (Note 1) Tj ET Q q 0 0 0 rg BT 205.28 696.00 Td (1 Fair V) Tj ET Q q 0 0 0 rg BT 249.58 696.00 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 304.47 696.00 Td (ements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.02 696.00 Td ( is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 670.5 m 416.5 670.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 670.5 m 433.5 670.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 670.5 m 489.5 670.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 670.5 m 506.5 670.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 670.5 m 562.5 670.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 632.5 m 214.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 632.5 m 270.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 632.5 m 287.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 632.5 m 343.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 632.5 m 360.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 632.5 m 416.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 632.5 m 433.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 632.5 m 489.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 632.5 m 506.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 632.5 m 562.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 604.5 m 270.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 604.5 m 343.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 604.5 m 416.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 604.5 m 489.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 604.5 m 562.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 604.5 m 562.5 604.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 562.5 m 489.5 562.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 562.5 m 270.5 562.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 548.5 m 270.5 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 562.5 m 343.5 562.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 548.5 m 343.5 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 562.5 m 416.5 562.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 548.5 m 416.5 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 548.5 m 489.5 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 562.5 m 562.5 562.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 548.5 m 562.5 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 492.5 m 270.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 478.5 m 270.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 492.5 m 343.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 478.5 m 343.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 492.5 m 416.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 478.5 m 416.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 492.5 m 489.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 478.5 m 489.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 492.5 m 562.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 478.5 m 562.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 478.5 m 562.5 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 408.5 m 416.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 408.5 m 489.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 408.5 m 562.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 408.5 m 270.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 394.5 m 270.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 408.5 m 343.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 394.5 m 343.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 408.5 m 416.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 394.5 m 416.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 408.5 m 489.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 394.5 m 489.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 408.5 m 562.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 394.5 m 562.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 394.5 m 270.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 381.5 m 270.5 381.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 379.5 m 270.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 394.5 m 343.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 381.5 m 343.5 381.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 379.5 m 343.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 394.5 m 416.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 381.5 m 416.5 381.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 379.5 m 416.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 394.5 m 489.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 381.5 m 489.5 381.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 379.5 m 489.5 379.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 394.5 m 562.5 394.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 381.5 m 562.5 381.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 379.5 m 562.5 379.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 385.05 675.50 Td (Fair Value Measurements Using:) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 227.40 659.40 Td (Actual) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 229.45 648.40 Td (Asset) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 217.85 637.40 Td (Allocation) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.95 637.40 Td (Total) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 372.00 648.40 Td (Level 1) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 372.70 637.40 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 444.00 648.40 Td (Level 2) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 445.70 637.40 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 518.00 648.40 Td (Level 3) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 518.70 637.40 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 391.00 622.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 608.37 Td (Cash) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.80 608.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 608.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.00 608.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.30 608.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.00 608.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 608.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 608.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 608.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.00 608.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 608.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 594.37 Td (Equity Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 580.37 Td (Domestic ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 109.91 585.36 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 580.37 Td (29.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 580.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 580.37 Td (7,371) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 580.37 Td (4,888) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.50 580.37 Td (2,483) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 580.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 566.37 Td (International ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 123.95 571.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 566.37 Td (13.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 566.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 566.37 Td (3,373) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 566.37 Td (3,373) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 566.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 566.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 552.37 Td (Total Equity Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 552.37 Td (43.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 552.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.00 552.37 Td (10,744) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 552.37 Td (8,261) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.50 552.37 Td (2,483) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 552.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 538.37 Td (Fixed Income Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 524.37 Td (High-Y) Tj ET Q q 0 0 0 rg BT 98.00 524.37 Td (ield Bonds ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 148.11 529.36 Td (\(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.05 524.37 Td (5.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 524.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 524.37 Td (1,448) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 524.37 Td (1,448) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 524.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 524.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 510.37 Td (Core Fixed Income ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 152.67 515.36 Td (\(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 510.37 Td (20.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 510.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 510.37 Td (5,006) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 510.37 Td (5,006) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 510.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 510.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 496.37 Td (Floating Rate Corp Loans ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 181.71 501.36 Td (\(5\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.05 496.37 Td (6.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 496.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 496.37 Td (1,483) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 496.37 Td (1,483) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 496.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 496.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 482.37 Td (Total Fixed Income Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 482.37 Td (32.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 482.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 482.37 Td (7,937) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 482.37 Td (7,937) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 482.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 482.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 468.37 Td (Other Securities:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 454.37 Td (Commodities ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 127.03 459.36 Td (\(6\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.05 454.37 Td (3.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 454.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.80 454.37 Td (945) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.80 454.37 Td (945) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 454.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 454.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 440.37 Td (Real Estate ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 117.53 445.36 Td (\(7\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.05 440.37 Td (3.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 440.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.80 440.37 Td (859) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 440.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 440.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 541.80 440.37 Td (859) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 426.37 Td (Hedge Fund ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 121.83 431.36 Td (\(8\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 426.37 Td (14.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 426.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 426.37 Td (3,517) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.80 426.37 Td (955) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.30 426.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 426.37 Td (2,562) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 412.37 Td (Collective Investment ) Tj ET Q q 0 0 0 rg BT 164.39 412.37 Td (T) Tj ET Q q 0 0 0 rg BT 170.72 412.37 Td (rusts ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 194.25 417.36 Td (\(9\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.05 412.37 Td (2.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 412.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 322.80 412.37 Td (656) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.30 412.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.80 412.37 Td (656) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 412.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 398.37 Td (Total Other Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.50 398.37 Td (24.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 398.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.50 398.37 Td (5,977) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.50 398.37 Td (1,900) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.80 398.37 Td (656) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 398.37 Td (3,421) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 384.37 Td (Total Investments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.00 384.37 Td (100.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.80 384.37 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.00 384.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.00 384.37 Td (24,658) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.00 384.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.00 384.37 Td (18,098) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 384.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.50 384.37 Td (3,139) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.00 384.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.50 384.37 Td (3,421) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 369.00 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 369.00 Td (Level 1 equity securities consist of United States lar) Tj ET Q q 0 0 0 rg BT 276.10 369.00 Td (ge and small capitalization companies, which are actively traded ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 357.00 Td (securities that can be sold upon demand. Level 2 equity securities are investments in a collective investment fund that is ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 345.00 Td (valued at net asset value based on the value of the underlying investments and total units outstanding on a daily basis. ) Tj ET Q q 0 0 0 rg BT 543.55 345.00 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 333.00 Td (objective of this fund is to approximate the S&P) Tj ET Q q 0 0 0 rg BT 260.93 333.00 Td ( 500 by investing in one or more collective investment funds.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.00 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 321.00 Td (International equity securities consists of a well-diversified portfolio of holdings of mostly lar) Tj ET Q q 0 0 0 rg BT 443.29 321.00 Td (ge issuers or) Tj ET Q q 0 0 0 rg BT 493.10 321.00 Td (ganized in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 309.00 Td (developed countries with liquid markets, commingled with investments in equity securities of issuers located in emer) Tj ET Q q 0 0 0 rg BT 536.60 309.00 Td (ging ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 297.00 Td (markets and believed to have strong sustainable financial productivity at attractive valuations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 285.00 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 285.00 Td (High-yield bonds consist of non-investment grade fixed income securities. ) Tj ET Q q 0 0 0 rg BT 370.81 285.00 Td (The investment objective is to obtain high ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 273.00 Td (current income. Due to the increased level of default risk, security selection focuses on credit-risk analysis. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 261.00 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 261.00 Td (The objective is to achieve value added from sector or issue selection by constructing a portfolio to approximate the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 249.00 Td (investment results of the Barclay's Capital ) Tj ET Q q 0 0 0 rg BT 238.65 249.00 Td (Aggregate Bond Index with a modest amount of variability in duration around ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 237.00 Td (the index. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 225.00 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 225.00 Td (Investments consist of floating rate bank loans. ) Tj ET Q q 0 0 0 rg BT 261.39 225.00 Td (Theinterestrates on theseloans are typically reset on a periodic basis to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 213.00 Td (account for changes in the level of interest rates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 201.00 Td (\(6\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 201.00 Td (Investments with exposure to commodity price movements, primarily through the use of futures, swaps and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 189.00 Td (commodity-linked securities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 177.00 Td (\(7\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 177.00 Td (The investment objective of direct real estate is to provide current income with the potential for long-term capital ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 165.00 Td (appreciation. Ownership in real estate entails a long-term time horizon, periodic valuations, and potentially low liquidity) Tj ET Q q 0 0 0 rg BT 551.94 165.00 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 153.00 Td (\(8\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 153.00 Td (The hedge fund portfolio includes an investment in an actively traded global mutual fund that focuses on alternative ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 141.00 Td (investments and a hedge fund of funds that invests both long and short using a variety of investment strategies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.00 Td (\(9\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 129.00 Td (Collective investment trusts invest in short-term investments and are valued at the net asset value of the collective ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 117.00 Td (investment trust. ) Tj ET Q q 0 0 0 rg BT 139.48 117.00 Td (The net asset value, as provided by the trustee, is used as a practical expedient to estimate fair value. ) Tj ET Q q 0 0 0 rg BT 546.10 117.00 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 105.00 Td (net asset value is based on the fair value of the underlying investments held by the fund less its liabilities.) Tj ET Q endstream endobj 255 0 obj <> endobj 256 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (127) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Included below is a summary of the changes in Level 3 plan assets \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 664.9 m 490.5 664.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 650.9 m 490.5 650.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 648.9 m 490.5 648.9 l s BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 713.77 Td (December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 713.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.50 713.77 Td (2,384) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 698.77 Td (Purchases) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.80 698.77 Td (742) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 684.77 Td (Realized gain on assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.80 684.77 Td (161) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 669.77 Td (Unrealized gain on assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.80 669.77 Td (134) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 654.77 Td (December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 654.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.50 654.77 Td (3,421) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 625.20 Td (The fair value of the Company) Tj ET Q q 0 0 0 rg BT 224.37 625.20 Td (s pension plan assets as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.30 625.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.74 625.20 Td (, is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 599.7 m 406.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 599.7 m 423.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 599.7 m 480.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 599.7 m 497.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 599.7 m 554.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 559.7 m 201.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 559.7 m 258.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 559.7 m 275.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 559.7 m 332.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 559.7 m 349.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 559.7 m 406.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 559.7 m 423.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 559.7 m 480.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 559.7 m 497.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 559.7 m 554.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 559.7 m 201.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 559.7 m 258.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 559.7 m 275.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 559.7 m 332.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 559.7 m 349.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 559.7 m 406.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 559.7 m 423.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 559.7 m 480.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 559.7 m 497.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 559.7 m 554.5 559.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 531.7 m 258.5 531.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 531.7 m 332.5 531.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 531.7 m 406.5 531.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 531.7 m 480.5 531.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 531.7 m 554.5 531.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 489.7 m 258.5 489.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 475.7 m 258.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 489.7 m 332.5 489.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 475.7 m 332.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 489.7 m 406.5 489.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 475.7 m 406.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 489.7 m 480.5 489.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 475.7 m 480.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 489.7 m 554.5 489.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 475.7 m 554.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 419.7 m 258.5 419.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 405.7 m 258.5 405.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 419.7 m 332.5 419.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 405.7 m 332.5 405.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 419.7 m 406.5 419.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 405.7 m 406.5 405.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 419.7 m 480.5 419.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 405.7 m 480.5 405.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 419.7 m 554.5 419.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 405.7 m 554.5 405.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 349.7 m 258.5 349.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 335.7 m 258.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 349.7 m 332.5 349.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 335.7 m 332.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 349.7 m 406.5 349.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 335.7 m 406.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 349.7 m 480.5 349.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 335.7 m 480.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 349.7 m 554.5 349.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 335.7 m 554.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 335.7 m 258.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 322.7 m 258.5 322.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 320.7 m 258.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 335.7 m 332.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 322.7 m 332.5 322.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 320.7 m 332.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 335.7 m 406.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 322.7 m 406.5 322.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 320.7 m 406.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 335.7 m 480.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 322.7 m 480.5 322.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 320.7 m 480.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 335.7 m 554.5 335.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 322.7 m 554.5 322.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 320.7 m 554.5 320.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 375.55 604.70 Td (Fair Value Measurements Using:) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 214.90 586.60 Td (Actual) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 216.95 575.60 Td (Asset) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 205.35 564.60 Td (Allocation) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.45 564.60 Td (Total) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 361.50 575.60 Td (Level 1) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 362.20 564.60 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 434.50 575.60 Td (Level 2) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 436.20 564.60 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 509.50 575.60 Td (Level 3) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 510.20 564.60 Td (Inputs) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.00 549.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 535.57 Td (Cash and Money Market Funds) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 535.57 Td (3.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 535.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 535.57 Td (778) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.80 535.57 Td (778) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 535.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 535.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 521.57 Td (Equity Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 507.57 Td (Domestic) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 107.16 512.56 Td ( \(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 507.57 Td (29.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 507.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 507.57 Td (5,920) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 507.57 Td (5,920) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 507.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 507.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 493.57 Td (International) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 121.20 498.56 Td ( \(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 493.57 Td (13.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 493.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 493.57 Td (2,740) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 493.57 Td (2,740) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 493.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 493.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 479.57 Td (Total Equity Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 479.57 Td (42.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 479.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 479.57 Td (8,660) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 479.57 Td (8,660) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 479.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 479.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 465.57 Td (Fixed Income Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 451.57 Td (High-Y) Tj ET Q q 0 0 0 rg BT 98.00 451.57 Td (ield Bonds) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 145.36 456.56 Td ( \(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 451.57 Td (6.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 451.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 451.57 Td (1,240) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 451.57 Td (1,240) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 451.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 451.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 437.57 Td (Core Fixed Income) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 149.92 442.56 Td ( \(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 437.57 Td (20.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 437.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 437.57 Td (4,204) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 437.57 Td (4,204) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 437.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 437.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 423.57 Td (Floating Rate Corp Loans) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 178.96 428.56 Td ( \(5\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 423.57 Td (5.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 423.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 423.57 Td (1,186) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 423.57 Td (1,186) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 423.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 423.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 409.57 Td (Total Fixed Income Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 409.57 Td (32.8) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 409.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 409.57 Td (6,630) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 409.57 Td (6,630) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 409.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 409.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 395.57 Td (Other Securities:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 381.57 Td (Commodities) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 124.28 386.56 Td ( \(6\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 381.57 Td (3.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 381.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 381.57 Td (669) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.80 381.57 Td (669) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 381.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.30 381.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 367.57 Td (Real Estate ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 117.53 372.56 Td (\(7\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.05 367.57 Td (3.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 367.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.80 367.57 Td (783) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 391.30 367.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 367.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.80 367.57 Td (783) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 353.57 Td (Hedge Fund) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 119.08 358.56 Td ( \(8\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 353.57 Td (13.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 353.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 353.57 Td (2,734) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 353.57 Td (1,133) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 353.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.50 353.57 Td (1,601) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 65.00 339.57 Td (Total Other Securities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.50 339.57 Td (20.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 339.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.50 339.57 Td (4,186) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.50 339.57 Td (1,802) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 339.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.50 339.57 Td (2,384) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 325.57 Td (Total Investments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 325.57 Td (100.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.80 325.57 Td (%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.00 325.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.00 325.57 Td (20,254) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.00 325.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.00 325.57 Td (17,870) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.00 325.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.30 325.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.00 325.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 525.50 325.57 Td (2,384) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.20 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 298.20 Td (Equity securities of United States lar) Tj ET Q q 0 0 0 rg BT 214.73 298.20 Td (ge and small capitalization companies, which are actively traded securities that can be ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 286.20 Td (sold upon demand.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.20 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 274.20 Td (International equity securities consists of a well-diversified portfolio of holdings of mostly lar) Tj ET Q q 0 0 0 rg BT 443.29 274.20 Td (ge issuers or) Tj ET Q q 0 0 0 rg BT 493.10 274.20 Td (ganized in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 262.20 Td (developed countries with liquid markets, commingled with investments in equity securities of issuers located in emer) Tj ET Q q 0 0 0 rg BT 536.60 262.20 Td (ging ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 250.20 Td (markets and believed to have strong sustainable financial productivity at attractive valuations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 238.20 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 238.20 Td (High-yield bonds consist of non-investment grade fixed income securities. ) Tj ET Q q 0 0 0 rg BT 370.81 238.20 Td (The investment objective is to obtain high ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 226.20 Td (current income. Due to the increased level of default risk, security selection focuses on credit-risk analysis. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.20 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 214.20 Td (The objective is to achieve value added from sector or issue selection by constructing a portfolio to approximate the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 202.20 Td (investment results of the Barclay's Capital ) Tj ET Q q 0 0 0 rg BT 238.65 202.20 Td (Aggregate Bond Index with a modest amount of variability in duration around ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 190.20 Td (the index. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.20 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 178.20 Td (Investments consist of floating rate bank loans. ) Tj ET Q q 0 0 0 rg BT 261.39 178.20 Td (Theinterestrates on theseloans are typically reset on a periodic basis to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 166.20 Td (account for changes in the level of interest rates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.20 Td (\(6\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 154.20 Td (Investments with exposure to commodity price movements, primarily through the use of futures, swaps and other ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 142.20 Td (commodity-linked securities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.20 Td (\(7\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 130.20 Td (The investment objective of direct real estate is to provide current income with the potential for long-term capital ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 118.20 Td (appreciation. Ownership in real estate entails a long-term time horizon, periodic valuations, and potentially low liquidity) Tj ET Q q 0 0 0 rg BT 551.94 118.20 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.20 Td (\(8\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 106.20 Td (The hedge fund portfolio includes an investment in an actively traded global mutual fund that focuses on alternative ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 94.20 Td (investments and a hedge fund of funds that invests both long and short using a variety of investment strategies. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 82.20 Td ( ) Tj ET Q endstream endobj 257 0 obj <> endobj 258 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (128) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (Included below is a summary of the changes in Level 3 plan assets \(in thousands\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 679.9 m 490.5 679.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 679.9 m 490.5 679.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 665.9 m 490.5 665.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 663.9 m 490.5 663.9 l s BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 713.77 Td (December 31, 2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 713.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.30 713.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 698.77 Td (Purchases) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.50 698.77 Td (2,329) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 684.77 Td (Investment Returns) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.30 684.77 Td (55) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 669.77 Td (December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.00 669.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.50 669.77 Td (2,384) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 640.20 Td (Contributions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 615.00 Td (The Company contributed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 204.22 615.00 Td ($5.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.00 615.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 263.50 615.00 Td ($5.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.28 615.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.42 615.00 Td ($5.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.20 615.00 Td (, to the Pension Plans in the years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 601.80 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 601.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 601.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.96 601.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.96 601.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.09 601.80 Td (201) Tj ET Q q 0 0 0 rg BT 233.18 601.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.68 601.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 296.61 601.80 Td (. ) Tj ET Q q 0 0 0 rg BT 304.66 601.80 Td (The Company is expected to make a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.47 601.80 Td ($4.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 521.25 601.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 588.60 Td (contribution to the Pension Plans in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 209.49 588.60 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.49 588.60 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 563.40 Td (Benefit Payments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 538.20 Td (The Pension Plans made actual benefit payments of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.72 538.20 Td ($3.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.50 538.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.00 538.20 Td ($1.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.78 538.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.91 538.20 Td ($1.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.69 538.20 Td ( in the years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.00 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 525.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 525.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.96 525.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.96 525.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.09 525.00 Td (201) Tj ET Q q 0 0 0 rg BT 233.18 525.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.68 525.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 296.61 525.00 Td (. Expected benefit payments over the next 10 years are as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.80 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 86.5 474.3 m 224.5 474.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 474.3 m 309.5 474.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 90.00 479.20 Td (Years Ending December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 238.00 479.20 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 464.17 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 464.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.55 464.17 Td (2,120) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 449.17 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 449.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.55 449.17 Td (2,837) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 435.17 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 435.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.55 435.17 Td (3,287) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 420.17 Td (2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 420.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.55 420.17 Td (3,993) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 405.17 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 405.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.55 405.17 Td (4,407) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 390.17 Td (2019 through 2023) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 237.00 390.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.05 390.17 Td (33,031) Tj ET Q BT /F2 10.00 Tf ET BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 348.60 Td (Note 9 ) Tj ET Q q 0 0 0 rg BT 90.63 348.60 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 142.66 348.60 Td (ement Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 323.40 Td (The Company recognizes an estimated liability for future costs associated with the abandonment of its oil ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 310.20 Td (and gas properties. ) Tj ET Q q 0 0 0 rg BT 137.67 310.20 Td (A) Tj ET Q q 0 0 0 rg BT 145.01 310.20 Td ( liability for the fair value of an asset retirement obligation and a corresponding increase to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 297.00 Td (carrying value of the related long-lived asset are recorded at the time a well is completed or acquired. ) Tj ET Q q 0 0 0 rg BT 501.22 297.00 Td (The increase ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 283.80 Td (in carrying value is included in proved oil and gas properties in the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 485.39 283.80 Td (The Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 270.60 Td (depletes the amount added to proved oil and gas property costs and recognizes expense in connection with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 257.40 Td (accretion of the discounted liability over the remaining estimated economic lives of the respective oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 244.20 Td (properties. Cash paid to settle asset retirement obligations is included in the operating section of the Company) Tj ET Q q 0 0 0 rg BT 540.00 244.20 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 231.00 Td (accompanying statements of cash flows.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 205.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 205.80 Td (s estimated asset retirement obligation liability is based on historical experience in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 192.60 Td (abandoning wells, estimated economic lives, estimates as to the cost to abandon the wells in the future, and federal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 179.40 Td (and state regulatory requirements. ) Tj ET Q q 0 0 0 rg BT 204.97 179.40 Td (The liability is discounted using the credit-adjusted risk-free rate estimated at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 166.20 Td (time the liability is incurred or revised. ) Tj ET Q q 0 0 0 rg BT 226.67 166.20 Td (The credit-adjusted risk-free rates used to discount the Company) Tj ET Q q 0 0 0 rg BT 514.42 166.20 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 153.00 Td (abandonment liabilities range from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 207.01 153.00 Td (5.5 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.87 153.00 Td ( to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.93 153.00 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.05 153.00 Td (. Revisions to the liability could occur due to changes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 139.80 Td (in estimated abandonment costs or well economic lives or if federal or state regulators enact new requirements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 126.60 Td (regarding the abandonment of wells.) Tj ET Q endstream endobj 259 0 obj <> endobj 260 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (129) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (A) Tj ET Q q 0 0 0 rg BT 93.34 734.40 Td ( reconciliation of the Company) Tj ET Q q 0 0 0 rg BT 233.24 734.40 Td (s asset retirement obligation liability is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 697.9 m 348.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 697.9 m 362.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 697.9 m 457.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 697.9 m 348.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 683.9 m 348.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 697.9 m 457.5 697.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 683.9 m 457.5 683.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 599.9 m 348.5 599.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 586.9 m 348.5 586.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 584.9 m 348.5 584.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 599.9 m 457.5 599.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 586.9 m 457.5 586.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 584.9 m 457.5 584.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.05 701.95 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 292.00 687.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 398.50 687.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 324.00 673.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 659.77 Td (Beginning asset retirement obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.55 659.77 Td (120,518) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.00 659.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.05 659.77 Td (95,906) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 645.77 Td (Liabilities incurred) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.05 645.77 Td (18,682) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.05 645.77 Td (13,050) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 631.77 Td (Liabilities settled) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.35 631.77 Td (\(33,129) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.30 631.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.85 631.77 Td (\(8,101) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.30 631.77 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 617.77 Td (Accretion expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.55 617.77 Td (5,997) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.55 617.77 Td (4,679) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 603.77 Td (Revision to estimated cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.55 603.77 Td (9,118) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.05 603.77 Td (14,984) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 589.77 Td (Ending asset retirement obligation) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.00 589.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.55 589.77 Td (121,186) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.00 589.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.55 589.77 Td (120,518) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 561.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 561.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 561.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.71 561.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 242.71 561.20 Td (, the Company had ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.56 561.20 Td ($3.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.34 561.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.72 561.20 Td ($1.4 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.50 561.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 515.43 561.20 Td (, of asset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 548.00 Td (retirement obligation associated with the oil and gas properties held for sale included in a separate line item on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 534.80 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 534.80 Td (s accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 240.61 534.80 Td (Additionally) Tj ET Q q 0 0 0 rg BT 295.51 534.80 Td (, as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.83 534.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.28 534.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.66 534.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.66 534.80 Td (, accounts payable and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 521.60 Td (accrued expenses contain ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 164.53 521.60 Td ($2.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.31 521.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.69 521.60 Td ($6.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.47 521.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.40 521.60 Td (, related to the Company) Tj ET Q q 0 0 0 rg BT 462.90 521.60 Td (s current asset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 508.40 Td (retirement obligation liability for estimated plugging and abandonment costs associated with platforms that are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 495.20 Td (being relinquished or retired. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 470.00 Td (Note 10 Derivative Financial Instruments) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 444.80 Td (Summary of Oil, Gas, and NGL) Tj ET Q q 0 0 0 rg BT 188.84 444.80 Td ( Derivative Contracts in Place) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 419.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 419.60 Td (The Company has entered into various commodity derivative contracts to mitigate a portion of the exposure ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 406.40 Td (to potentially adverse market changes in commodity prices and the associated impact on cash flows. ) Tj ET Q q 0 0 0 rg BT 496.09 406.40 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 393.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 393.20 Td (s derivative contracts in place include swap and collar arrangements for oil, gas, and NGLs. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 368.00 Td (As of December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 368.00 Td (, the Company has commodity derivative contracts outstanding through the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 354.80 Td (second quarter of 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 151.11 354.80 Td ( for a total of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 211.28 354.80 Td (18.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 265.06 354.80 Td ( Bbls of oil production, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.17 354.80 Td (265.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.45 354.80 Td ( MMBtu of gas production, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 341.60 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.63 341.60 Td (2.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 116.91 341.60 Td ( Bbls of NGL) Tj ET Q q 0 0 0 rg BT 176.70 341.60 Td ( production. ) Tj ET Q q 0 0 0 rg BT 234.75 341.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.64 341.60 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.60 341.60 Td (, the Company had commodity derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.40 Td (contracts in place through the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.87 328.40 Td (second quarter of 2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.98 328.40 Td ( for a total of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.15 328.40 Td (17.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.93 328.40 Td ( Bbls of oil, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.63 328.40 Td (237.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.91 328.40 Td ( MMBtu ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.20 Td (of gas, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 100.71 315.20 Td (4.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 148.99 315.20 Td ( Bbls of NGLs. ) Tj ET Q q 0 0 0 rg BT 221.52 315.20 Td (These volumes are net of scheduled January ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.53 315.20 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.53 315.20 Td ( settlements, as well as the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.00 Td (early settlement of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.61 302.00 Td (18.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 188.39 302.00 Td ( MMBtu of gas swaps and collars in January ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.27 302.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.27 302.00 Td ( due to the divestiture of assets in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 288.80 Td (our Mid-Continent region at the end of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.82 288.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 245.82 288.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 263.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 263.60 Td (In a typical commodity swap agreement, if the agreed upon published third-party index price is lower than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 250.40 Td (the swap fixed price, the Company receives the dif) Tj ET Q q 0 0 0 rg BT 273.08 250.40 Td (ference between the index price and the agreed upon swap fixed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 237.20 Td (price. If the index price is higher than the swap fixed price, the Company pays the dif) Tj ET Q q 0 0 0 rg BT 425.51 237.20 Td (ference.For collar ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 224.00 Td (agreements, the Company receives the dif) Tj ET Q q 0 0 0 rg BT 234.29 224.00 Td (ference between an agreed upon index and the floor price if the index ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 210.80 Td (price is below the floor price. ) Tj ET Q q 0 0 0 rg BT 184.81 210.80 Td (The Company pays the dif) Tj ET Q q 0 0 0 rg BT 301.31 210.80 Td (ference between the agreed upon ceiling price and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 197.60 Td (index price if the index price is above the ceiling price. No amounts are paid or received if the index price is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 184.40 Td (between the floor and ceiling prices.) Tj ET Q endstream endobj 261 0 obj <> endobj 262 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (130) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (The following tables summarize the approximate volumes and average contract prices of contracts the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (Company had in place as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 175.24 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 261.69 721.20 Td (: ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 696.00 Td (Oil Contracts) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 669.33369140625 m 95.53076171875 669.33369140625 l s q 0 0 0 rg BT 50.00 670.80 Td (Oil Swaps) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 604.3 m 229.5 604.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 604.3 m 340.5 604.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 604.3 m 451.5 604.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 604.3 m 340.5 604.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 604.3 m 451.5 604.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 506.3 m 340.5 506.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 506.3 m 340.5 506.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 493.3 m 340.5 493.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 491.3 m 340.5 491.3 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 609.20 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 270.00 609.20 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 376.85 642.20 Td (W) Tj ET Q q 0 0 0 rg BT 387.24 642.20 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.85 631.20 Td (A) Tj ET Q q 0 0 0 rg BT 388.98 631.20 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.90 620.20 Td (Contract) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.75 609.20 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 275.90 594.35 Td (\(Bbls\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.85 594.35 Td (\(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 580.17 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 580.17 Td (2,600,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 580.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 580.17 Td (96.92) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 566.17 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 566.17 Td (2,373,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 566.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 566.17 Td (94.95) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 552.17 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 552.17 Td (973,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 552.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 552.17 Td (95.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 538.17 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 538.17 Td (891,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 538.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 538.17 Td (95.16) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 524.17 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 524.17 Td (2,911,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 524.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 524.17 Td (89.06) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 510.17 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 510.17 Td (2,704,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 510.17 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 510.17 Td (85.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 496.17 Td (All oil swaps*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 496.17 Td (12,452,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 467.60 Td (*Oil swaps are comprised of NYMEX ) Tj ET Q q 0 0 0 rg BT 221.49 467.60 Td (WTI \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.67 467.60 Td (97%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.83 467.60 Td (\) and ) Tj ET Q q 0 0 0 rg BT 293.27 467.60 Td (Ar) Tj ET Q q 0 0 0 rg BT 304.68 467.60 Td (gus LLS \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.68 467.60 Td (3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 363.34 467.60 Td (\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 455.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 428.93369140625 m 98.58154296875 428.93369140625 l s q 0 0 0 rg BT 50.00 430.40 Td (Oil Collars) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 369.9 m 149.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 369.9 m 250.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 369.9 m 353.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 369.9 m 455.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 369.9 m 250.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 369.9 m 353.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 369.9 m 455.5 369.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 285.9 m 250.5 285.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 272.9 m 250.5 272.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 270.9 m 250.5 270.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 374.80 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 171.60 385.80 Td (NYMEX ) Tj ET Q q 0 0 0 rg BT 215.70 385.80 Td (WTI) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 185.00 374.80 Td (V) Tj ET Q q 0 0 0 rg BT 191.93 374.80 Td (olumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 282.85 407.80 Td (W) Tj ET Q q 0 0 0 rg BT 293.24 407.80 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 287.85 396.80 Td (A) Tj ET Q q 0 0 0 rg BT 294.98 396.80 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 294.25 385.80 Td (Floor) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 294.75 374.80 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 385.35 407.80 Td (W) Tj ET Q q 0 0 0 rg BT 395.74 407.80 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 390.35 396.80 Td (A) Tj ET Q q 0 0 0 rg BT 397.48 396.80 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 392.65 385.80 Td (Ceiling) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 397.25 374.80 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 190.90 359.95 Td (\(Bbls\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 285.85 359.95 Td (\(per Bbl\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.35 359.95 Td (\(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 345.77 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.55 345.77 Td (694,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.00 345.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 345.77 Td (80.97) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.00 345.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.05 345.77 Td (115.07) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 331.77 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.55 331.77 Td (431,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.00 331.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 331.77 Td (85.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.00 331.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.05 331.77 Td (102.50) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 317.77 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.55 317.77 Td (973,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.00 317.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 317.77 Td (85.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.00 317.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.05 317.77 Td (102.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 303.77 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.55 303.77 Td (923,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.00 303.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 303.77 Td (85.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.00 303.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.05 303.77 Td (102.63) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 289.77 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.30 289.77 Td (3,366,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 264.00 289.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.55 289.77 Td (85.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 367.00 289.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.55 289.77 Td (94.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 275.77 Td (All oil collars) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 202.30 275.77 Td (6,387,000) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 263 0 obj <> endobj 264 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (131) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Natural Gas Contracts) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 706.53369140625 m 98.58154296875 706.53369140625 l s q 0 0 0 rg BT 50.00 708.00 Td (Gas Swaps) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 651.5 m 229.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 651.5 m 340.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 651.5 m 451.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 651.5 m 340.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 651.5 m 451.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 525.5 m 340.5 525.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 512.5 m 340.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 510.5 m 340.5 510.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 656.40 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 270.00 656.40 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 376.85 687.55 Td (W) Tj ET Q q 0 0 0 rg BT 387.24 687.55 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.85 676.55 Td (A) Tj ET Q q 0 0 0 rg BT 388.98 676.55 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.90 665.55 Td (Contract) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.75 654.55 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 267.35 641.55 Td (\(MMBtu\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 369.15 641.55 Td (\(per MMBtu\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 627.37 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 627.37 Td (33,651,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 627.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 627.37 Td (4.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 613.37 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 613.37 Td (25,729,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 613.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 613.37 Td (3.96) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 599.37 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 599.37 Td (26,398,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 599.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 599.37 Td (4.01) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 585.37 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 585.37 Td (23,965,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 585.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 585.37 Td (4.01) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 571.37 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 571.37 Td (63,317,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 571.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 571.37 Td (4.03) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 557.37 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 557.37 Td (39,014,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 557.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 557.37 Td (4.18) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 543.37 Td (2017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 543.37 Td (23,430,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 543.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 543.37 Td (4.21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 529.37 Td (2018) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.80 529.37 Td (10,200,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 529.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.05 529.37 Td (4.31) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 515.37 Td (All gas swaps*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.30 515.37 Td (245,704,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.80 Td (*Natural gas swaps are comprised of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.95 486.80 Td (IF El Paso Permian) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.19 486.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 306.60 486.80 Td (3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.27 486.80 Td (\),) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.43 486.80 Td (IF HSC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.36 486.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.77 486.80 Td (77%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.94 486.80 Td (\),) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.10 486.80 Td (IF NGPL) Tj ET Q q 0 0 0 rg BT 440.95 486.80 Td ( ) Tj ET Q q 0 0 0 rg BT 443.50 486.80 Td (TXOK) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.05 486.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 480.46 486.80 Td (3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.12 486.80 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.29 486.80 Td (IF NNG ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 473.60 Td (V) Tj ET Q q 0 0 0 rg BT 56.72 473.60 Td (entura) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 84.21 473.60 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 90.62 473.60 Td (2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.28 473.60 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.45 473.60 Td (IF PEPL) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.24 473.60 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.66 473.60 Td (6%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.32 473.60 Td (\),) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.48 473.60 Td (IF Reliant N/S) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.65 473.60 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.06 473.60 Td (8%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.73 473.60 Td (\),and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.52 473.60 Td (IF NGPL) Tj ET Q q 0 0 0 rg BT 336.37 473.60 Td ( MidCon) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.79 473.60 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.21 473.60 Td (1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.87 473.60 Td (\).) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 445.73369140625 m 101.63232421875 445.73369140625 l s q 0 0 0 rg BT 50.00 447.20 Td (Gas Collars) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 388.7 m 162.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 388.7 m 260.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 388.7 m 358.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 388.7 m 456.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 388.7 m 260.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 388.7 m 358.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 388.7 m 456.5 388.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 332.7 m 260.5 332.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 332.7 m 260.5 332.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 319.7 m 260.5 319.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173.5 317.7 m 260.5 317.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 393.60 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 196.50 393.60 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 290.35 426.60 Td (W) Tj ET Q q 0 0 0 rg BT 300.74 426.60 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 295.35 415.60 Td (A) Tj ET Q q 0 0 0 rg BT 302.48 415.60 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 301.75 404.60 Td (Floor) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 302.25 393.60 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.35 426.60 Td (W) Tj ET Q q 0 0 0 rg BT 398.74 426.60 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 393.35 415.60 Td (A) Tj ET Q q 0 0 0 rg BT 400.48 415.60 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 395.65 404.60 Td (Ceiling) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 400.25 393.60 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 193.85 378.75 Td (\(MMBtu\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 282.65 378.75 Td (\(per MMBtu\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.65 378.75 Td (\(per MMBtu\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 364.57 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.30 364.57 Td (1,540,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.00 364.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.05 364.57 Td (4.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.00 364.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.05 364.57 Td (5.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 350.57 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.30 350.57 Td (4,194,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.00 350.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.05 350.57 Td (4.38) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.00 350.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.05 350.57 Td (5.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 336.57 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 206.80 336.57 Td (14,480,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.00 336.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.05 336.57 Td (3.96) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.00 336.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.05 336.57 Td (4.30) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 322.57 Td (All gas collars*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 206.80 322.57 Td (20,214,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 294.00 Td (*Natural gas collars are comprised of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.38 294.00 Td (IF El Paso Permian) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.62 294.00 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.04 294.00 Td (2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.70 294.00 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 332.86 294.00 Td (IF HSC) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 366.79 294.00 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 373.21 294.00 Td (57%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.37 294.00 Td (\),) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.53 294.00 Td (IF NGPL) Tj ET Q q 0 0 0 rg BT 443.38 294.00 Td ( ) Tj ET Q q 0 0 0 rg BT 445.93 294.00 Td (TXOK) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.48 294.00 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.89 294.00 Td (3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.56 294.00 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.72 294.00 Td (IF NNG ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 280.80 Td (V) Tj ET Q q 0 0 0 rg BT 56.72 280.80 Td (entura) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 84.21 280.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 90.62 280.80 Td (5%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.28 280.80 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.45 280.80 Td (IF PEPL) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.24 280.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.66 280.80 Td (7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.32 280.80 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 182.48 280.80 Td (IF Reliant N/S) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.65 280.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.06 280.80 Td (14%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.23 280.80 Td (\), and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.02 280.80 Td (IF ) Tj ET Q q 0 0 0 rg BT 313.36 280.80 Td (TETCO STX) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.32 280.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.74 280.80 Td (12%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.90 280.80 Td (\).) Tj ET Q endstream endobj 265 0 obj <> endobj 266 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (132) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (NGL) Tj ET Q q 0 0 0 rg BT 71.20 734.40 Td ( Contracts) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 707.73369140625 m 103.67333984375 707.73369140625 l s q 0 0 0 rg BT 50.00 709.20 Td (NGL) Tj ET Q q 0 0 0 rg BT 72.20 709.20 Td ( Swaps) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 650.7 m 229.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 650.7 m 340.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 650.7 m 451.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 650.7 m 340.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 650.7 m 451.5 650.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 580.7 m 340.5 580.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 567.7 m 340.5 567.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 565.7 m 340.5 565.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 655.60 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 270.00 655.60 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 376.85 688.60 Td (W) Tj ET Q q 0 0 0 rg BT 387.24 688.60 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.85 677.60 Td (A) Tj ET Q q 0 0 0 rg BT 388.98 677.60 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.90 666.60 Td (Contract) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.75 655.60 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 275.90 640.75 Td (\(Bbls\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.85 640.75 Td (\(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 626.57 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 626.57 Td (913,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 626.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 626.57 Td (59.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 612.57 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 612.57 Td (565,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 612.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 612.57 Td (63.22) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 598.57 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 598.57 Td (544,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 598.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 598.57 Td (62.34) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 584.57 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.55 584.57 Td (527,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.00 584.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.55 584.57 Td (61.57) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 570.57 Td (All NGL swaps*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 292.30 570.57 Td (2,549,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 542.00 Td (*NGL) Tj ET Q q 0 0 0 rg BT 77.70 542.00 Td ( swaps are comprised of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.75 542.00 Td (OPIS IsoButane Mt Belv Non ) Tj ET Q q 0 0 0 rg BT 321.30 542.00 Td (TET) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.26 542.00 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.67 542.00 Td (2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.33 542.00 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.50 542.00 Td (OPIS Natural Gasoline Mt Belv Non ) Tj ET Q q 0 0 0 rg BT 536.28 542.00 Td (TET) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 556.24 542.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.80 Td (\() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.66 528.80 Td (34%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 73.83 528.80 Td (\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 82.99 528.80 Td (OPIS NButane Mt Belv Non ) Tj ET Q q 0 0 0 rg BT 212.04 528.80 Td (TET) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 232.00 528.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.41 528.80 Td (3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 253.08 528.80 Td (\), and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 280.87 528.80 Td (OPIS Propane Mt Belv ) Tj ET Q q 0 0 0 rg BT 385.17 528.80 Td (TET) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.13 528.80 Td ( \() Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.54 528.80 Td (61%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.71 528.80 Td (\).) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 503.60 Td (Commodity Derivative Contracts Enter) Tj ET Q q 0 0 0 rg BT 235.84 503.60 Td (ed into ) Tj ET Q q 0 0 0 rg BT 270.07 503.60 Td (After) Tj ET Q q 0 0 0 rg BT 294.91 503.60 Td ( ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 297.66 503.60 Td (December) Tj ET Q q 0 0 0 rg BT 345.09 503.60 Td (31, 2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 386.34 503.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 477.20 Td (The following tables summarize all commodity derivative contracts entered between ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.09 477.20 Td (January1, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.05 477.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 464.00 Td (February12, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 130.96 464.00 Td (:) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 438.80 Td (Gas Contracts) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 410.93369140625 m 98.58154296875 410.93369140625 l s q 0 0 0 rg BT 50.00 412.40 Td (Gas Swaps) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 354.9 m 325.5 354.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 354.9 m 444.5 354.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 354.9 m 562.5 354.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 256.9 m 444.5 256.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 256.9 m 444.5 256.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 243.89999999999998 m 444.5 243.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 241.89999999999998 m 444.5 241.89999999999998 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 359.80 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 370.00 359.80 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 484.35 391.95 Td (W) Tj ET Q q 0 0 0 rg BT 494.74 391.95 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 489.35 380.95 Td (A) Tj ET Q q 0 0 0 rg BT 496.48 380.95 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 487.40 369.95 Td (Contract) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 496.25 358.95 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 367.35 344.95 Td (\(MMBtu\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 476.65 344.95 Td (\(per MMBtu\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 330.77 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 330.77 Td (261,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 330.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 330.77 Td (4.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 316.77 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 316.77 Td (365,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 316.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 316.77 Td (3.84) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 302.77 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 302.77 Td (341,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 302.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 302.77 Td (3.89) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 288.77 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 288.77 Td (321,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 288.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 288.77 Td (3.97) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 274.77 Td (2015) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.30 274.77 Td (1,133,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 274.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 274.77 Td (3.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 260.77 Td (2016) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.05 260.77 Td (69,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.00 260.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 260.77 Td (4.12) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 246.77 Td (All gas swaps*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.30 246.77 Td (2,490,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 218.20 Td (*Natural gas swaps are comprised of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.95 218.20 Td (IF NNG ) Tj ET Q q 0 0 0 rg BT 253.86 218.20 Td (V) Tj ET Q q 0 0 0 rg BT 260.58 218.20 Td (entura) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.07 218.20 Td ( \() Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.90 218.20 Td (30%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.23 218.20 Td (\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.06 218.20 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.69 218.20 Td (IF CIG N System) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 218.20 Td ( \() Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.83 218.20 Td (70%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.16 218.20 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.49 218.20 Td (.) Tj ET Q endstream endobj 267 0 obj <> endobj 268 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (133) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (NGL) Tj ET Q q 0 0 0 rg BT 71.20 734.40 Td ( Contracts) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 707.73369140625 m 103.67333984375 707.73369140625 l s q 0 0 0 rg BT 50.00 709.20 Td (NGL) Tj ET Q q 0 0 0 rg BT 72.20 709.20 Td ( Swaps) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 651.7 m 324.5 651.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 651.7 m 443.5 651.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 651.7 m 562.5 651.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 581.7 m 443.5 581.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 568.7 m 443.5 568.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 566.7 m 443.5 566.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 656.60 Td (Contract Period) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 369.00 656.60 Td (Volumes) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 483.85 688.75 Td (W) Tj ET Q q 0 0 0 rg BT 494.24 688.75 Td (eighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 488.85 677.75 Td (A) Tj ET Q q 0 0 0 rg BT 495.98 677.75 Td (verage) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 486.90 666.75 Td (Contract) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 495.75 655.75 Td (Price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 374.90 641.75 Td (\(Bbls\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 486.85 641.75 Td (\(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 627.57 Td (First quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.55 627.57 Td (516,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.00 627.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 627.57 Td (54.85) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 613.57 Td (Second quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.55 613.57 Td (531,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.00 613.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 613.57 Td (52.53) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 599.57 Td (Third quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.55 599.57 Td (416,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.00 599.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 599.57 Td (52.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 585.57 Td (Fourth quarter 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.55 585.57 Td (334,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.00 585.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 585.57 Td (52.52) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 571.57 Td (All NGL swaps*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.30 571.57 Td (1,797,000) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.80 Td (*NGL) Tj ET Q q 0 0 0 rg BT 77.70 541.80 Td ( swaps are comprised of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.75 541.80 Td (OPIS Natural Gasoline Mt Belv Non ) Tj ET Q q 0 0 0 rg BT 351.53 541.80 Td (TET) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.69 541.80 Td ( \() Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.52 541.80 Td (17%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.85 541.80 Td (\) and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.62 541.80 Td (OPIS Propane Mt Belv ) Tj ET Q q 0 0 0 rg BT 513.44 541.80 Td (TET) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.58 541.80 Td ( \() Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 537.41 541.80 Td (83%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 555.74 541.80 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 559.07 541.80 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 515.40 Td (Derivative ) Tj ET Q q 0 0 0 rg BT 98.97 515.40 Td (Assets and Liabilities Fair V) Tj ET Q q 0 0 0 rg BT 223.65 515.40 Td (alue) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 490.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 490.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 490.20 Td (s commodity derivatives are measured at fair value and are included in the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 477.00 Td (balance sheets as derivative assets and liabilities. ) Tj ET Q q 0 0 0 rg BT 270.64 477.00 Td (The fair value of the commodity derivative contracts was a net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 463.80 Td (asset of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.05 463.80 Td ($21.5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.33 463.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.71 463.80 Td ($38.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.99 463.80 Td ( at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.43 463.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.87 463.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.25 463.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.25 463.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 427.18 463.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 437.40 Td (The following tables detail the fair value of derivatives recorded in the accompanying balance sheets, by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 424.20 Td (category:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 399.7 m 321.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 399.7 m 326.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 399.7 m 387.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 399.7 m 392.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 399.7 m 496.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 399.7 m 501.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 399.7 m 562.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 399.7 m 321.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 385.7 m 321.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 399.7 m 326.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 385.7 m 326.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 399.7 m 387.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 385.7 m 387.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 399.7 m 496.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 385.7 m 496.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 399.7 m 501.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 385.7 m 501.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 399.7 m 562.5 399.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 385.7 m 562.5 385.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 362.7 m 321.5 362.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 362.7 m 387.5 362.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 362.7 m 496.5 362.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 362.7 m 562.5 362.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 320.7 m 387.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 320.7 m 562.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 320.7 m 387.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 297.7 m 387.5 297.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 295.7 m 387.5 295.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 320.7 m 562.5 320.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 297.7 m 562.5 297.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 295.7 m 562.5 295.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.70 403.75 Td (As of December 31, 2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.80 389.75 Td (Derivative Assets) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 427.65 389.75 Td (Derivative Liabilities) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 244.15 375.75 Td (Balance Sheet) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 243.80 364.80 Td ( Classification) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 331.95 367.60 Td (Fair Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 411.15 375.75 Td (Balance Sheet) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 410.80 364.80 Td ( Classification) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 506.95 367.60 Td (Fair Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.00 352.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 338.57 Td (Commodity Contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.00 338.57 Td (Current assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.00 338.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 338.57 Td (21,559) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.00 338.57 Td (Current liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.00 338.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 338.57 Td (26,380) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 324.57 Td (Commodity Contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.00 324.57 Td (Noncurrent assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 324.57 Td (30,951) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.00 324.57 Td (Noncurrent liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 324.57 Td (4,640) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 310.57 Td (Derivatives not designated as hedging) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 299.62 Td (instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.00 301.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 301.62 Td (52,510) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.00 301.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 301.62 Td (31,020) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 260.70000000000005 m 321.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 260.70000000000005 m 326.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 260.70000000000005 m 387.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 260.70000000000005 m 392.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 260.70000000000005 m 496.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 260.70000000000005 m 501.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 260.70000000000005 m 562.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 260.70000000000005 m 321.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 246.70000000000005 m 321.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 260.70000000000005 m 326.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 246.70000000000005 m 326.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 260.70000000000005 m 387.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 246.70000000000005 m 387.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 260.70000000000005 m 496.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 246.70000000000005 m 496.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 260.70000000000005 m 501.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 246.70000000000005 m 501.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 260.70000000000005 m 562.5 260.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 246.70000000000005 m 562.5 246.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 223.70000000000005 m 321.5 223.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 223.70000000000005 m 387.5 223.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 223.70000000000005 m 496.5 223.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 223.70000000000005 m 562.5 223.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 181.70000000000005 m 387.5 181.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 181.70000000000005 m 562.5 181.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 158.70000000000005 m 387.5 158.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 156.70000000000005 m 387.5 156.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 158.70000000000005 m 562.5 158.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 156.70000000000005 m 562.5 156.70000000000005 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.70 264.75 Td (As of December 31, 2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.80 250.75 Td (Derivative Assets) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 390.00 250.75 Td () Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 427.65 250.75 Td (Derivative Liabilities) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 244.15 236.75 Td (Balance Sheet) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 243.80 225.80 Td ( Classification) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 331.95 228.60 Td (Fair Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 411.15 236.75 Td (Balance Sheet) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 410.80 225.80 Td ( Classification) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 506.95 228.60 Td (Fair Value) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.00 213.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 199.57 Td (Commodity Contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.00 199.57 Td (Current assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.00 199.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 199.57 Td (37,873) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.00 199.57 Td (Current liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.00 199.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 199.57 Td (8,999) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 185.57 Td (Commodity Contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 236.00 185.57 Td (Noncurrent assets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 185.57 Td (16,466) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 395.00 185.57 Td (Noncurrent liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 185.57 Td (6,645) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 171.57 Td (Derivatives not designated as hedging) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 160.62 Td (instruments) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.00 162.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.00 162.62 Td (54,339) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 504.00 162.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 162.62 Td (15,644) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 269 0 obj <> endobj 270 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (134) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Offsetting of Derivative ) Tj ET Q q 0 0 0 rg BT 156.42 734.40 Td (Assets and Liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 708.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 708.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 708.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.71 708.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 242.71 708.00 Td (, all derivative instruments held by the Company were subject to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (enforceable master netting arrangements held by various financial institutions. In general, the terms of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 681.60 Td (s agreements provide for of) Tj ET Q q 0 0 0 rg BT 216.59 681.60 Td (fsetting of amounts payable or receivable between it and the counterparty) Tj ET Q q 0 0 0 rg BT 539.03 681.60 Td (, at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (the election of both parties, for transactions that occur on the same date and in the same currency) Tj ET Q q 0 0 0 rg BT 475.68 668.40 Td (. ) Tj ET Q q 0 0 0 rg BT 483.73 668.40 Td (The Company) Tj ET Q q 0 0 0 rg BT 549.42 668.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (agreements also provide that in the event of an early termination, the counterparties have the right to of) Tj ET Q q 0 0 0 rg BT 503.70 655.20 Td (fset amounts ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.00 Td (owed or owing under that and any other agreement with the same counterparty) Tj ET Q q 0 0 0 rg BT 395.67 642.00 Td (. ) Tj ET Q q 0 0 0 rg BT 403.72 642.00 Td (The Company's accounting policy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (is to not of) Tj ET Q q 0 0 0 rg BT 97.16 628.80 Td (fset these positions in its accompanying balance sheets. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 602.40 Td (The following table provides a reconciliation between the gross assets and liabilities reflected on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.20 Td (accompanying balance sheets and the potential ef) Tj ET Q q 0 0 0 rg BT 267.27 589.20 Td (fects of master netting arrangements on the fair value of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (Company's derivative contracts:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 550.5 m 391.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 550.5 m 395.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 550.5 m 448.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 550.5 m 505.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 550.5 m 509.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 550.5 m 562.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 550.5 m 391.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 535.5 m 391.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 535.5 m 395.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 550.5 m 448.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 535.5 m 448.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 550.5 m 505.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 535.5 m 505.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 550.5 m 509.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 535.5 m 509.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 550.5 m 562.5 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 535.5 m 562.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 514.5 m 334.5 514.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 535.5 m 391.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 514.5 m 391.5 514.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 535.5 m 448.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 514.5 m 448.5 514.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 535.5 m 505.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 514.5 m 505.5 514.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 535.5 m 509.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 535.5 m 562.5 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 514.5 m 562.5 514.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 467.5 m 391.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 467.5 m 448.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 467.5 m 505.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 467.5 m 562.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 467.5 m 391.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 453.5 m 391.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 451.5 m 391.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 467.5 m 448.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 453.5 m 448.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 451.5 m 448.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 467.5 m 505.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 453.5 m 505.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 451.5 m 505.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 467.5 m 562.5 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 453.5 m 562.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 451.5 m 562.5 451.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 352.80 555.40 Td (Derivative Assets) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 457.65 555.40 Td (Derivative Liabilities) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 347.55 540.40 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 461.55 540.40 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 519.40 Td (Offsetting of Derivative Assets and Liabilities) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 353.50 519.40 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 410.50 519.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 467.50 519.40 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 524.50 519.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 416.50 504.40 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 488.42 Td (Gross amounts presented in the accompanying balance sheets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 488.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.00 488.42 Td (52,510) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.00 488.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.00 488.42 Td (54,339) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.00 488.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.35 488.42 Td (\(31,020) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.30 488.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.00 488.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 488.42 Td (\(15,644) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 488.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 472.42 Td (Amounts not offset in the accompanying balance sheets) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.35 472.42 Td (\(30,652) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.30 472.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.35 472.42 Td (\(13,400) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.30 472.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 471.00 472.42 Td (30,652) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 472.42 Td (13,400) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 457.37 Td (Net amounts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.00 457.37 Td (21,858) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.00 457.37 Td (40,939) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.10 457.37 Td (\(368) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.30 457.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.00 457.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 529.85 457.37 Td (\(2,244) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 457.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 426.60 Td (Discontinuance of Cash Flow Hedge ) Tj ET Q q 0 0 0 rg BT 215.09 426.60 Td (Accounting) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 400.20 Td (Prior to January 1, 201) Tj ET Q q 0 0 0 rg BT 186.11 400.20 Td (1, the Company designated its commodity derivative contracts as cash flow hedges, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 387.00 Td (for which unrealized changes in fair value were recorded to ) Tj ET Q q 0 0 0 rg BT 313.88 387.00 Td (AOCIL, to the extent the hedges were ef) Tj ET Q q 0 0 0 rg BT 492.06 387.00 Td (fective. ) Tj ET Q q 0 0 0 rg BT 529.62 387.00 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 373.80 Td (January 1, 201) Tj ET Q q 0 0 0 rg BT 114.05 373.80 Td (1, the Company elected to de-designate all of its commodity derivative contracts that had been ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 360.60 Td (previously designated as cash flow hedges at December31, 2010. ) Tj ET Q q 0 0 0 rg BT 344.17 360.60 Td (As a result, subsequent to December31, 2010, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 347.40 Td (the Company recognizes all gains and losses from changes in commodity derivative fair values immediately in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 334.20 Td (earnings rather than deferring any such amounts in ) Tj ET Q q 0 0 0 rg BT 275.43 334.20 Td (AOCIL. ) Tj ET Q q 0 0 0 rg BT 317.09 334.20 Td (The Company had no derivatives designated as cash ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 321.00 Td (flow hedges for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.95 321.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.39 321.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 303.52 321.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.52 321.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 294.60 Td (As a result of discontinuing hedge accounting on January1,201) Tj ET Q q 0 0 0 rg BT 368.17 294.60 Td (1, fair values at December31, 2010, were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 281.40 Td (frozen in ) Tj ET Q q 0 0 0 rg BT 91.54 281.40 Td (AOCIL) Tj ET Q q 0 0 0 rg BT 124.74 281.40 Td ( as of the de-designation date and were reclassified into earnings as the original derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 268.20 Td (transactions settled. ) Tj ET Q q 0 0 0 rg BT 141.65 268.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 168.53 268.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.98 268.20 Td (, all commodity derivative contracts that had been previously ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 255.00 Td (designated as cash flow hedges have settled and have been reclassified into earnings from ) Tj ET Q q 0 0 0 rg BT 447.08 255.00 Td (AOCIL. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 241.80 Td (Note 1) Tj ET Q q 0 0 0 rg BT 78.21 241.80 Td (1 - Fair V) Tj ET Q q 0 0 0 rg BT 120.68 241.80 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 175.57 241.80 Td (ements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 206.11 241.80 Td ( for more information regarding the Company) Tj ET Q q 0 0 0 rg BT 411.39 241.80 Td (s derivative instruments, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 228.60 Td (including its valuation techniques.) Tj ET Q endstream endobj 271 0 obj <> endobj 272 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (135) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (The following table summarizes the components of derivative \(gain\) loss presented in the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (statements of operations:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 683.7 m 364.5 683.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 683.7 m 372.5 683.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 683.7 m 456.5 683.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 683.7 m 464.5 683.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 683.7 m 548.5 683.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 668.7 m 364.5 668.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 668.7 m 456.5 668.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 668.7 m 548.5 668.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 599.7 m 548.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 599.7 m 364.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 599.7 m 456.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 599.7 m 548.5 599.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 515.7 m 364.5 515.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 515.7 m 456.5 515.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 515.7 m 548.5 515.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 502.7 m 364.5 502.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 500.7 m 364.5 500.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 502.7 m 456.5 502.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 500.7 m 456.5 500.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 515.7 m 548.5 515.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 502.7 m 548.5 502.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 500.7 m 548.5 500.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 332.50 688.60 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 311.00 673.60 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 403.00 673.60 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 495.30 673.60 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 380.50 658.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 645.57 Td (Derivative cash settlement \(gain\) loss:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 631.57 Td (Oil contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.00 631.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.05 631.57 Td (15,161) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.00 631.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.05 631.57 Td (11,893) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.00 631.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.05 631.57 Td (22,633) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 617.57 Td (Gas contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.35 617.57 Td (\(30,338) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.30 617.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.35 617.57 Td (\(47,270) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 617.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.35 617.57 Td (\(10,711) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.30 617.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 603.57 Td (NGL contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.85 603.57 Td (\(6,885) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.30 603.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.85 603.57 Td (\(8,887) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 603.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.05 603.57 Td (13,749) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 589.57 Td (T) Tj ET Q q 0 0 0 rg BT 58.95 589.57 Td (otal derivative cash settlement \(gain\) loss ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 244.06 594.56 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 326.35 589.57 Td (\(22,062) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.30 589.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.35 589.57 Td (\(44,264) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 589.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.05 589.57 Td (25,671) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 561.57 Td (Derivative \(gain\) loss:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 547.57 Td (Oil contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.10 547.57 Td (\(496) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.30 547.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.35 547.57 Td (\(31,981) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 547.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.85 547.57 Td (\(3,391) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.30 547.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 533.57 Td (Gas contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.05 533.57 Td (16,285) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.05 533.57 Td (31,777) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.35 533.57 Td (\(64,310) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.30 533.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 59.00 519.57 Td (NGL contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.55 519.57 Td (3,193) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.35 519.57 Td (\(11,162) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 519.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 519.55 519.57 Td (4,944) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 54.50 505.57 Td (T) Tj ET Q q 0 0 0 rg BT 60.45 505.57 Td (otal derivative gain ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 148.11 510.56 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.00 505.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.85 505.57 Td (\(3,080) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.30 505.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.00 505.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 418.35 505.57 Td (\(55,630) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.30 505.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.00 505.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.35 505.57 Td (\(37,086) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.30 505.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 50.00 494.73 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 57.58 490.20 Td ( ) Tj ET Q q 0 0 0 rg BT 68.00 490.20 Td (T) Tj ET Q q 0 0 0 rg BT 73.41 490.20 Td (otal derivative cash settlement gain \(loss\) is reported in the derivative cash settlement gain \(loss\) line item on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 478.20 Td (consolidated statements of cash flows within net cash provided by operating activities. ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 50.00 470.73 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 57.58 466.20 Td ( ) Tj ET Q q 0 0 0 rg BT 68.00 466.20 Td (T) Tj ET Q q 0 0 0 rg BT 73.41 466.20 Td (otal derivative gain is reported in the derivative gain line item on the consolidated statements of cash flows within net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 454.20 Td (cash provided by operating activities. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 441.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 427.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 427.80 Td (The following table details the ef) Tj ET Q q 0 0 0 rg BT 231.50 427.80 Td (fect of derivative instruments on ) Tj ET Q q 0 0 0 rg BT 376.60 427.80 Td (AOCIL) Tj ET Q q 0 0 0 rg BT 409.80 427.80 Td ( and the accompanying statements ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 414.60 Td (of operations \(net of income tax\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 371.1 m 458.5 371.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 371.1 m 463.5 371.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 371.1 m 510.5 371.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 371.1 m 515.5 371.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 371.1 m 562.5 371.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 357.1 m 322.5 357.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 357.1 m 405.5 357.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 357.1 m 458.5 357.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 357.1 m 510.5 357.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 357.1 m 562.5 357.1 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.00 394.15 Td (Locationon) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 330.85 383.15 Td (Accompanying) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 334.05 372.15 Td (Statements of) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.70 361.15 Td (Operations) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 437.85 387.00 Td (For the Years Ended) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 454.00 376.00 Td (December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 261.40 361.15 Td (Derivatives) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 423.00 361.15 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 475.50 361.15 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 527.80 361.15 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 452.50 347.00 Td (\(inthousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 319.02 Td (Amount reclassified from) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.02 319.02 Td ( ) Tj ET Q q 0 0 0 rg BT 168.17 319.02 Td (AOCIL) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.00 330.02 Td (Commodity) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.00 319.02 Td (Contracts) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.00 330.02 Td (Realized hedge) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 330.00 319.02 Td (gain \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.00 319.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.50 319.02 Td (1,115) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.00 319.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.85 319.02 Td (\(2,264) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.30 319.02 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.00 319.02 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.00 319.02 Td (12,997) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 301.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 288.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 288.20 Td (The realized net hedge loss for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.93 288.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.38 288.20 Td (, net hedge gain for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 275.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 275.00 Td (, and net hedge loss for the year ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.10 275.00 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 388.64 275.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 394.14 275.00 Td (, shown net of income tax in the table ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 261.80 Td (above, are comprised of realized cash settlements on commodity derivative contracts that were previously ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 248.60 Td (designated as cash flow hedges. Realized hedge gains or losses from the settlement of commodity derivatives ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 235.40 Td (previously designated as cash flow hedges are reported in the total operating revenues and other income section of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 222.20 Td (the accompanying statements of operations. ) Tj ET Q q 0 0 0 rg BT 248.05 222.20 Td (The Company realized a pre-tax net loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.48 222.20 Td ($1.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.26 222.20 Td (, a pre-tax net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 209.00 Td (gain of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.60 209.00 Td ($3.9 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.38 209.00 Td (, and a pre-tax net loss of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.01 209.00 Td ($20.7 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.29 209.00 Td ( from its commodity derivative contracts for the years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 195.80 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 195.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 195.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 170.96 195.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.96 195.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.09 195.80 Td (201) Tj ET Q q 0 0 0 rg BT 233.18 195.80 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.68 195.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 296.61 195.80 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 169.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 169.40 Td (As noted above, ef) Tj ET Q q 0 0 0 rg BT 168.27 169.40 Td (fective January1, 201) Tj ET Q q 0 0 0 rg BT 265.00 169.40 Td (1, the Company elected to de-designate all of its commodity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 156.20 Td (derivative contracts that had been previously designated as cash flow hedges. No new gains or losses are deferred ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 143.00 Td (in ) Tj ET Q q 0 0 0 rg BT 60.70 143.00 Td (AOCIL) Tj ET Q q 0 0 0 rg BT 93.90 143.00 Td ( at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 107.34 143.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.78 143.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.91 143.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.91 143.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 297.84 143.00 Td (.) Tj ET Q endstream endobj 273 0 obj <> endobj 274 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (136) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (Cr) Tj ET Q q 0 0 0 rg BT 61.21 734.40 Td (edit Related Contingent Featur) Tj ET Q q 0 0 0 rg BT 197.97 734.40 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 708.00 Td (As of December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 708.00 Td (, and through the filing date of this report, all of the Company) Tj ET Q q 0 0 0 rg BT 474.27 708.00 Td (s derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (counterparties were members of the Company) Tj ET Q q 0 0 0 rg BT 256.18 694.80 Td (s credit facility syndicate. ) Tj ET Q q 0 0 0 rg BT 374.49 694.80 Td (The Company) Tj ET Q q 0 0 0 rg BT 440.18 694.80 Td (s obligations under its ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (credit facility and derivative contracts are secured by liens on substantially all of the Company) Tj ET Q q 0 0 0 rg BT 469.08 681.60 Td (s proved oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (properties.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 643.20 Td (Convertible Note Derivative Instrument) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 618.00 Td (The contingent interest provision of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 262.57 618.00 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.98 618.00 Td ( Senior Convertible Notes was an embedded derivative ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 604.80 Td (instrument. ) Tj ET Q q 0 0 0 rg BT 105.10 604.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.95 604.80 Td (3.50%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 153.37 604.80 Td ( Senior Convertible Notes were settled during the second quarter of 2012. Please refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 591.60 Td (Note 5 - Long-term Debt) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 158.76 591.60 Td ( for additional discussion.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 566.40 Td (Note 1) Tj ET Q q 0 0 0 rg BT 79.63 566.40 Td (1 Fair) Tj ET Q q 0 0 0 rg BT 116.09 566.40 Td ( ) Tj ET Q q 0 0 0 rg BT 118.64 566.40 Td (V) Tj ET Q q 0 0 0 rg BT 125.58 566.40 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 183.73 566.40 Td (ements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 541.20 Td (The Company follows fair value measurement authoritative accounting guidance for all assets and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (liabilities measured at fair value. ) Tj ET Q q 0 0 0 rg BT 199.16 528.00 Td (That authoritative accounting guidance defines fair value as the price that would ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 514.80 Td (be received to sell an asset or paid to transfer a liability \(an exit price\) in an orderly transaction between market ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.40 Td (assumptions based on hypothetical transactions in the absence of market inputs. ) Tj ET Q q 0 0 0 rg BT 406.30 488.40 Td (The fair value hierarchy for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.20 Td (grouping these assets and liabilities is based on the significance level of the following inputs:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 450.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 450.00 Td (Level 1 quoted prices in active markets for identical assets or liabilities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 424.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 424.80 Td (Level 2 quoted prices in active markets for similar assets or liabilities, quoted prices for identical or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 411.60 Td (similar instruments in markets that are not active, and model-derived valuations whose inputs are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 398.40 Td (observable or whose significant value drivers are observable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 373.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 104.00 373.20 Td (Level 3 significant inputs to the valuation model are unobservable) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 348.00 Td (The following table is a listing of the Company) Tj ET Q q 0 0 0 rg BT 297.41 348.00 Td (s assets and liabilities that are measured at fair value and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 334.80 Td (where they were classified within the fair value hierarchy as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.46 334.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.91 334.80 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 297.1 m 329.5 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 297.1 m 426.5 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 297.1 m 524.5 297.1 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 269.50 301.15 Td (Level 1) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 366.50 301.15 Td (Level 2) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 464.50 301.15 Td (Level 3) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 350.50 287.15 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 271.50673828125 m 84.78076171875 271.50673828125 l s q 0 0 0 rg BT 53.00 272.97 Td (Assets:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 258.97 Td (Derivatives ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 124.45 263.96 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 258.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 258.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 258.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.05 258.97 Td (52,510) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 258.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.30 258.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 244.97 Td (Proved oil and gas properties ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 202.05 249.96 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 244.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 244.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 244.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.30 244.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 244.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.05 244.97 Td (62,178) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 230.97 Td (Unproved oil and gas properties ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 214.88 235.96 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 230.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 230.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 230.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.30 230.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 230.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.55 230.97 Td (3,280) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 216.97 Td (Oil and gas properties held for sale ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 227.70 221.96 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 216.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 216.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 216.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.30 216.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 216.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 503.80 216.97 Td (650) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 201.50673828125002 m 100.65771484375 201.50673828125002 l s q 0 0 0 rg BT 53.00 202.97 Td (Liabilities:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 188.97 Td (Derivatives) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 121.70 193.96 Td ( \(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 188.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 188.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 188.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.05 188.97 Td (31,020) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 188.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.30 188.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 174.97 Td (Net Profits Plan ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 144.03 179.96 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 174.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.30 174.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 344.00 174.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.30 174.97 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.00 174.97 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.05 174.97 Td (56,985) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.40 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 68.13 158.40 Td (This represents a financial asset or liability that is measured at fair value on a recurring basis.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.20 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 68.13 145.20 Td (This represents a non-financial asset that is measured at fair value on a nonrecurring basis.) Tj ET Q endstream endobj 275 0 obj <> endobj 276 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (137) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (The following table is a listing of the Company) Tj ET Q q 0 0 0 rg BT 297.41 734.40 Td (s assets and liabilities that are measured at fair value and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (where they were classified within the hierarchy as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.88 721.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.32 721.20 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241.5 683.5 m 326.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 683.5 m 423.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 683.5 m 521.5 683.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 266.50 687.55 Td (Level 1) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 363.50 687.55 Td (Level 2) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 461.50 687.55 Td (Level 3) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 347.50 673.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 657.90673828125 m 84.78076171875 657.90673828125 l s q 0 0 0 rg BT 53.00 659.37 Td (Assets:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 645.37 Td (Derivatives ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 124.45 650.36 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.30 645.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.05 645.37 Td (54,339) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.30 645.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 631.37 Td (Proved oil and gas properties ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 202.05 636.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 631.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.30 631.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 631.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.30 631.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 631.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.55 631.37 Td (209,959) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 617.37 Td (Unproved oil and gas properties ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 214.88 622.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 617.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.30 617.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 617.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.30 617.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 617.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.05 617.37 Td (42,765) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 601.90673828125 m 100.65771484375 601.90673828125 l s q 0 0 0 rg BT 53.00 603.37 Td (Liabilities:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 589.37 Td (Derivatives) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 121.70 594.36 Td ( \(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 589.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.30 589.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 589.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.05 589.37 Td (15,644) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 589.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 506.30 589.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 575.37 Td (Net Profits Plan ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 144.03 580.36 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.00 575.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.30 575.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.00 575.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.30 575.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.00 575.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.05 575.37 Td (78,827) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 558.80 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 68.13 558.80 Td (This represents a financial asset or liability that is measured at fair value on a recurring basis.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 545.60 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 68.13 545.60 Td (This represents a non-financial asset that is measured at fair value on a nonrecurring basis.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 519.20 Td (Both financial and non-financial assets and liabilities are categorized within the above fair value hierarchy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 506.00 Td (based on the lowest level of input that is significant to the fair value measurement. ) Tj ET Q q 0 0 0 rg BT 417.89 506.00 Td (The following is a description of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 492.80 Td (the valuation methodologies used by the Company as well as the general classification of such instruments pursuant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 479.60 Td (to the above fair value hierarchy) Tj ET Q q 0 0 0 rg BT 191.91 479.60 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 454.40 Td (Derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 429.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 429.20 Td (The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 440.25 429.20 Td ( commodity derivatives. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 416.00 Td (Fair values are based upon interpolated data. ) Tj ET Q q 0 0 0 rg BT 251.70 416.00 Td (The Company derives internal valuation estimates taking into ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 402.80 Td (consideration forward commodity price curves, counterparties) Tj ET Q q 0 0 0 rg BT 326.53 402.80 Td ( credit ratings, the Company) Tj ET Q q 0 0 0 rg BT 454.52 402.80 Td (s credit rating, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 389.60 Td (time value of money) Tj ET Q q 0 0 0 rg BT 140.01 389.60 Td (. ) Tj ET Q q 0 0 0 rg BT 148.06 389.60 Td (These valuations are then compared to the respective counterparties) Tj ET Q q 0 0 0 rg BT 449.00 389.60 Td ( mark-to-market ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 376.40 Td (statements. ) Tj ET Q q 0 0 0 rg BT 104.48 376.40 Td (The considered factors result in an estimated exit-price that management believes provides a reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 363.20 Td (and consistent methodology for valuing derivative instruments. ) Tj ET Q q 0 0 0 rg BT 333.61 363.20 Td (The derivative instruments utilized by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 350.00 Td (Company are not considered by management to be complex, structured, or illiquid. ) Tj ET Q q 0 0 0 rg BT 420.65 350.00 Td (The oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 518.61 350.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 336.80 Td (commodity derivative markets are highly active. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 310.40 Td (Generally) Tj ET Q q 0 0 0 rg BT 128.65 310.40 Td (, market quotes assume that all counterparties have near zero, or low) Tj ET Q q 0 0 0 rg BT 429.41 310.40 Td (, default rates and have equal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 297.20 Td (credit quality) Tj ET Q q 0 0 0 rg BT 107.63 297.20 Td (. However) Tj ET Q q 0 0 0 rg BT 155.75 297.20 Td (, an adjustment may be necessary to reflect the credit quality of a specific counterparty to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 284.00 Td (determine the fair value of the instrument. ) Tj ET Q q 0 0 0 rg BT 240.71 284.00 Td (The Company monitors the credit ratings of its counterparties and may ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 270.80 Td (require counterparties to post collateral if their ratings deteriorate. Currently) Tj ET Q q 0 0 0 rg BT 386.79 270.80 Td (, one counterparty posts collateral ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 257.60 Td (when requested by the Company) Tj ET Q q 0 0 0 rg BT 193.47 257.60 Td (. In some instances the Company will attempt to novate the trade to a more stable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 244.40 Td (counterparty) Tj ET Q q 0 0 0 rg BT 104.87 244.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 218.00 Td (V) Tj ET Q q 0 0 0 rg BT 92.72 218.00 Td (aluation adjustments are necessary to reflect the ef) Tj ET Q q 0 0 0 rg BT 314.57 218.00 Td (fect of the Company) Tj ET Q q 0 0 0 rg BT 407.73 218.00 Td (s credit quality on the fair value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 204.80 Td (any derivative liability position. ) Tj ET Q q 0 0 0 rg BT 195.83 204.80 Td (This adjustment takes into account any credit enhancements, such as collateral ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 191.60 Td (mar) Tj ET Q q 0 0 0 rg BT 66.90 191.60 Td (gin that the Company may have posted with a counterparty) Tj ET Q q 0 0 0 rg BT 326.15 191.60 Td (, as well as any letters of credit between the parties. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 178.40 Td (The methodology to determine this adjustment is consistent with how the Company evaluates counterparty credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 165.20 Td (risk and takes into account the Company) Tj ET Q q 0 0 0 rg BT 232.07 165.20 Td (s credit rating, current credit facility mar) Tj ET Q q 0 0 0 rg BT 410.54 165.20 Td (gins, and any change in such ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 152.00 Td (mar) Tj ET Q q 0 0 0 rg BT 66.90 152.00 Td (gins since the last measurement date. ) Tj ET Q q 0 0 0 rg BT 234.91 152.00 Td (All of the Company) Tj ET Q q 0 0 0 rg BT 325.65 152.00 Td (s derivative counterparties are members of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.80 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 138.80 Td (s credit facility bank syndicate.) Tj ET Q endstream endobj 277 0 obj <> endobj 278 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (138) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The methods described above may result in a fair value estimate that may not be indicative of net realizable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (value or may not be reflective of future fair values and cash flows. ) Tj ET Q q 0 0 0 rg BT 347.60 721.20 Td (While the Company believes that the valuation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (methods utilized are appropriate and consistent with accounting authoritative guidance and with other marketplace ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (participants, the Company recognizes that third parties may use dif) Tj ET Q q 0 0 0 rg BT 344.27 694.80 Td (ferent methodologies or assumptions to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (determine the fair value of certain financial instruments that could result in a dif) Tj ET Q q 0 0 0 rg BT 401.98 681.60 Td (ferent estimate of fair value at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (reporting date.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 642.00 Td (Refer to ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 124.48 642.00 Td (Note 10 - Derivative Financial Instruments ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.56 642.00 Td (for more information regarding the Company) Tj ET Q q 0 0 0 rg BT 520.09 642.00 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 628.80 Td (derivative instruments.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 602.40 Td (Net Pr) Tj ET Q q 0 0 0 rg BT 78.62 602.40 Td (ofits Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 577.20 Td (The Net Profits Plan is a standalone liability for which there is no available market price, principal market, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (or market participants. ) Tj ET Q q 0 0 0 rg BT 154.57 564.00 Td (The inputs available for this instrument are unobservable and are therefore classified as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 550.80 Td (Level 3 inputs. ) Tj ET Q q 0 0 0 rg BT 120.98 550.80 Td (The Company employs the income valuation technique, which converts expected future cash flow ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 537.60 Td (amounts to a single present value amount. ) Tj ET Q q 0 0 0 rg BT 240.12 537.60 Td (This technique uses the estimate of future cash payments, expectations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 524.40 Td (of possible variations in the amount and/or timing of cash flows, the risk premium, and nonperformance risk to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.20 Td (calculate the fair value. ) Tj ET Q q 0 0 0 rg BT 157.91 511.20 Td (There is a direct correlation between realized oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 437.26 511.20 Td ( commodity prices driving ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.00 Td (net cash flows and the Net Profits Plan liability) Tj ET Q q 0 0 0 rg BT 257.03 498.00 Td (. Generally) Tj ET Q q 0 0 0 rg BT 307.93 498.00 Td (, higher commodity prices result in a lar) Tj ET Q q 0 0 0 rg BT 483.68 498.00 Td (ger Net Profits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 484.80 Td (Plan liability and lower commodity prices result in a smaller Net Profits Plan liability) Tj ET Q q 0 0 0 rg BT 425.36 484.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 458.40 Td (The Company records the estimated fair value of the long-term liability for estimated future payments ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 445.20 Td (under the Net Profits Plan based on the discounted value of estimated future payments associated with each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.00 Td (individual pool. ) Tj ET Q q 0 0 0 rg BT 124.96 432.00 Td (The calculation of this liability is a significant management estimate. ) Tj ET Q q 0 0 0 rg BT 433.49 432.00 Td (A) Tj ET Q q 0 0 0 rg BT 440.83 432.00 Td ( discount rate of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.75 432.00 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 560.87 432.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 418.80 Td (is used to calculate this liability) Tj ET Q q 0 0 0 rg BT 188.28 418.80 Td (, which is intended to represent the Company's best estimate of the present value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 405.60 Td (expected future payments under the Net Profits Plan.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 379.20 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 379.20 Td (s estimate of its liability is highly dependent on commodity prices, cost assumptions, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 366.00 Td (discount rates, and overall market conditions. ) Tj ET Q q 0 0 0 rg BT 255.39 366.00 Td (The Company regularly assesses the current market environment. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 352.80 Td (The Net Profits Plan liability is determined using price assumptions of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.54 352.80 Td (five) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.64 352.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.39 352.80 Td (one) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 398.27 352.80 Td (-year strip prices with the fifth year) Tj ET Q q 0 0 0 rg BT 554.45 352.80 Td () Tj ET Q q 0 0 0 rg BT 557.51 352.80 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 339.60 Td (pricing then carried out indefinitely) Tj ET Q q 0 0 0 rg BT 205.68 339.60 Td (. ) Tj ET Q q 0 0 0 rg BT 213.73 339.60 Td (The average price is adjusted for realized price dif) Tj ET Q q 0 0 0 rg BT 434.63 339.60 Td (ferentials and to include the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.40 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 326.40 Td (fects of the forecasted production covered by derivatives contracts in the relevant periods. ) Tj ET Q q 0 0 0 rg BT 459.19 326.40 Td (The non-cash expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.20 Td (associated with this significant management estimate is highly volatile from period to period due to fluctuations that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (occur in the oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 182.78 300.00 Td ( commodity markets.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 273.60 Td (If the commodity prices used in the calculation changed by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.69 273.60 Td (five percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.91 273.60 Td (, the liability recorded at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 260.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 260.40 Td (, would dif) Tj ET Q q 0 0 0 rg BT 184.21 260.40 Td (fer by approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.21 260.40 Td ($5 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.74 260.40 Td (. ) Tj ET Q q 0 0 0 rg BT 332.38 260.40 Td (A) Tj ET Q q 0 0 0 rg BT 339.72 260.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.47 260.40 Td (one percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.47 260.40 Td ( increase in the discount rate would ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 247.20 Td (decrease the liability by approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 223.80 247.20 Td ($2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.33 247.20 Td (, whereas a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.25 247.20 Td (one percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.24 247.20 Td ( decrease in the discount rate would ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 234.00 Td (increase the liability by approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.97 234.00 Td ($2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.50 234.00 Td (. ) Tj ET Q q 0 0 0 rg BT 275.15 234.00 Td (Actual cash payments to be made to participants in future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 220.80 Td (periods are dependent on realized actual production, realized commodity prices, and actual costs associated with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (properties in each individual pool of the Net Profits Plan. Consequently) Tj ET Q q 0 0 0 rg BT 367.01 207.60 Td (, actual cash payments are inherently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 194.40 Td (dif) Tj ET Q q 0 0 0 rg BT 62.02 194.40 Td (ferent from the amounts estimated.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 168.00 Td (No published market quotes exist on which to base the Company) Tj ET Q q 0 0 0 rg BT 375.01 168.00 Td (s estimate of fair value of its Net Profits ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 154.80 Td (Plan liability) Tj ET Q q 0 0 0 rg BT 105.81 154.80 Td (. ) Tj ET Q q 0 0 0 rg BT 113.45 154.80 Td (As such, the recorded fair value is based entirely on management estimates that are described within ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 141.60 Td (this footnote. ) Tj ET Q q 0 0 0 rg BT 113.35 141.60 Td (While some inputs to the Company) Tj ET Q q 0 0 0 rg BT 271.92 141.60 Td (s calculation of fair value of the Net Profits Plan) Tj ET Q q 0 0 0 rg BT 487.88 141.60 Td (s future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 128.40 Td (payments are from published sources, others, such as the discount rate and the expected future cash flows, are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 115.20 Td (derived from the Company) Tj ET Q q 0 0 0 rg BT 171.89 115.20 Td (s own calculations and estimates.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 102.00 Td ( ) Tj ET Q endstream endobj 279 0 obj <> endobj 280 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (139) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 734.40 Td (The following table reflects the activity for the Company) Tj ET Q q 0 0 0 rg BT 340.14 734.40 Td (s Net Profits Plan liability measured at fair value ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (using Level 3 inputs:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 683.5 m 328.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 683.5 m 332.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 683.5 m 414.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 683.5 m 418.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 683.5 m 496.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 683.5 m 328.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 669.5 m 328.5 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 683.5 m 332.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 683.5 m 414.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 669.5 m 414.5 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 683.5 m 418.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 683.5 m 496.5 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 669.5 m 496.5 669.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 595.5 m 328.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 595.5 m 414.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 595.5 m 496.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 595.5 m 328.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 582.5 m 328.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 580.5 m 328.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 595.5 m 414.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 582.5 m 414.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 580.5 m 414.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 595.5 m 496.5 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 582.5 m 496.5 582.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 580.5 m 496.5 580.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 288.50 687.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 275.00 673.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 362.00 673.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 446.30 673.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 336.50 659.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 645.37 Td (Beginning balance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.05 645.37 Td (78,827) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 645.37 Td (107,731) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 645.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.55 645.37 Td (135,850) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.00 630.42 Td (Net increase \(decrease\) in liability ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 231.62 635.41 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.55 630.42 Td (3,527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 381.85 630.42 Td (\(9,251) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.30 630.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.55 630.42 Td (2,269) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.00 614.42 Td (Net settlements ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 148.87 619.41 Td (\(1\) \(2\) \(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 290.35 614.42 Td (\(25,369) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.30 614.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.35 614.42 Td (\(19,653) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.30 614.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.35 614.42 Td (\(30,388) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.30 614.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.00 599.37 Td (Transfers in \(out\) of Level 3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.30 599.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.30 599.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 599.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 585.37 Td (Ending balance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 585.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.05 585.37 Td (56,985) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.00 585.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.05 585.37 Td (78,827) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.00 585.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.55 585.37 Td (107,731) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 568.80 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 68.00 568.80 Td (Net changes in the Net Profits Plan liability are shown in the Change in Net Profits Plan liability line item of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 555.60 Td (accompanying statements of operations.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 542.40 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 68.00 542.40 Td (Settlements represent cash payments made or accrued under the Net Profits Plan. ) Tj ET Q q 0 0 0 rg BT 432.83 542.40 Td (The amounts in the table ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 529.20 Td (include cash payments made or accrued under the Net Profits Plan of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.68 529.20 Td ($10.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.96 529.20 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 439.46 529.20 Td ($2.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 493.24 529.20 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 517.37 529.20 Td ($6.3 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 516.00 Td (million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.78 516.00 Td ( relating to divestiture proceeds for the years ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.94 516.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.39 516.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.89 516.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.89 516.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.02 516.00 Td (201) Tj ET Q q 0 0 0 rg BT 482.11 516.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.61 516.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 545.54 516.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 502.80 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 68.00 502.80 Td (During 201) Tj ET Q q 0 0 0 rg BT 118.00 502.80 Td (1, the Company elected to cash out several Net Profits Plan pools with a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.47 502.80 Td ($2.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.25 502.80 Td ( direct ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 489.60 Td (payment. ) Tj ET Q q 0 0 0 rg BT 113.52 489.60 Td (As a result, the Company reduced its Net Profits Plan liability by that amount. ) Tj ET Q q 0 0 0 rg BT 462.52 489.60 Td (There was no impact ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 476.40 Td (on the accompanying statements of operations for the period ended December31, 201) Tj ET Q q 0 0 0 rg BT 446.66 476.40 Td (1, related to these ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 463.20 Td (settlements. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 436.80 Td (Long-term Debt) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 411.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 411.60 Td (The following table reflects the fair value of the Senior Notes measured at fair value using Level 1 inputs ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 398.40 Td (based on quoted secondary market trading prices. ) Tj ET Q q 0 0 0 rg BT 270.34 398.40 Td (The Senior Notes were not presented at fair value on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 385.20 Td (accompanying balance sheets as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 206.69 385.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.13 385.20 Td ( or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 307.79 385.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.79 385.20 Td (, as they are recorded at historical value.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 347.5 m 344.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 347.5 m 348.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 347.5 m 474.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 333.5 m 344.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 333.5 m 474.5 333.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 302.05 351.55 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.50 337.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 400.00 337.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 314.00 323.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 309.37 Td (2019 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 309.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.55 309.37 Td (374,290) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.00 309.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 309.37 Td (371,875) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 295.37 Td (2021 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 295.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.55 295.37 Td (373,625) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.00 295.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 295.37 Td (371,070) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 280.42 Td (2023 Notes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 280.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.55 280.42 Td (422,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.00 280.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 434.55 280.42 Td (424,200) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 264.42 Td (2024 Notes ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 106.16 269.41 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 224.00 264.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 304.55 264.42 Td (475,315) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.00 264.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.30 264.42 Td () Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.80 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 65.38 246.80 Td (The 2024 Notes were issued on May 20, 2013.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 220.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 220.40 Td (The carrying value of the Company) Tj ET Q q 0 0 0 rg BT 245.75 220.40 Td (s credit facility approximates its fair value, as the applicable interest ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.20 Td (rates are floating, based on prevailing market rates. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 180.80 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.59 180.80 Td (oved and Unpr) Tj ET Q q 0 0 0 rg BT 126.17 180.80 Td (oved Oil and Gas Pr) Tj ET Q q 0 0 0 rg BT 216.81 180.80 Td (operties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 154.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 154.40 Td (Proved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 141.20 Td (indication that the carrying costs may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 307.29 141.20 Td (The Company uses Level 3 inputs and the income ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 128.00 Td (valuation technique, which converts future amounts to a single present value amount, to measure the fair value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 114.80 Td (proved properties through an application of discount rates and price forecasts selected by the Company) Tj ET Q q 0 0 0 rg BT 506.35 114.80 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 101.60 Td (management. ) Tj ET Q q 0 0 0 rg BT 114.25 101.60 Td (The calculation of the discount rate is based on the best information available and was estimated to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 88.40 Td (be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 63.13 88.40 Td (12 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.25 88.40 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.82 88.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.27 88.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 246.40 88.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.40 88.40 Td (. ) Tj ET Q q 0 0 0 rg BT 276.45 88.40 Td (The Company believes that the discount rate is representative of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 75.20 Td (current market conditions and takes into account estimates of future cash payments, expectations of possible ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 62.00 Td (variations in the amount and/or timing of cash flows, the risk premium, and nonperformance risk. ) Tj ET Q q 0 0 0 rg BT 484.51 62.00 Td (The prices for oil ) Tj ET Q endstream endobj 281 0 obj <> endobj 282 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (140) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td (and gas are forecasted based on NYMEX strip pricing, adjusted for basis dif) Tj ET Q q 0 0 0 rg BT 385.51 734.40 Td (ferentials, for the first ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 484.17 734.40 Td (five) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.27 734.40 Td ( years, after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (which a flat terminal price is used for each commodity stream. ) Tj ET Q q 0 0 0 rg BT 330.51 721.20 Td (The prices for NGLs are forecasted using OPIS ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (pricing, adjusted for basis dif) Tj ET Q q 0 0 0 rg BT 178.41 708.00 Td (ferentials, for as long as the market is actively trading, after which a flat terminal price ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (is used. Future operating costs are also adjusted as deemed appropriate for these estimates. Proved properties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (classified as held for sale are valued using a market approach, based on an estimated selling price, as evidenced by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (the most current bid prices received from third parties. If an estimated selling price is not available, the Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.20 Td (utilizes the income valuation technique discussed above.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 630.00 Td (As a result of asset write-downs, the proved oil and gas properties measured at fair value within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 616.80 Td (accompanying balance sheets totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.54 616.80 Td ($62.2 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 274.82 616.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.21 616.80 Td ($210.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.99 616.80 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.56 616.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.00 616.80 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.14 616.80 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.14 616.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 603.60 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 578.40 Td (Unproved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 565.20 Td (indication that the carrying costs may not be recoverable. ) Tj ET Q q 0 0 0 rg BT 307.29 565.20 Td (T) Tj ET Q q 0 0 0 rg BT 313.24 565.20 Td (o measure the fair value of unproved properties, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (Company uses a market approach, which takes into account the following significant assumptions: future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.80 Td (development plans, risk weighted potential resource recovery) Tj ET Q q 0 0 0 rg BT 319.61 538.80 Td (, and estimated reserve values. Unproved properties ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.60 Td (classified as held for sale are valued using a market approach, based on an estimated selling price, as evidenced by ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.40 Td (the most current bid prices received from third parties. If an estimated selling price is not available, the Company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 499.20 Td (utilizes a market approach, which estimates acreage value based on the price received for similar acreage in recent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.00 Td (transactions by the Company or other market participants in the principal market.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 460.80 Td (As a result of asset write-downs, unproved oil and gas properties measured at fair value within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.60 Td (accompanying balance sheets totaled ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 215.54 447.60 Td ($3.3 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.32 447.60 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.90 447.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.34 447.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.72 447.60 Td ($42.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.00 447.60 Td ( at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.44 447.60 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 434.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 434.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 408.00 Td (Acquisitions of proved and unproved properties are measured at fair value as of the acquisition date using a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.80 Td (discounted cash flow model similar to the Company) Tj ET Q q 0 0 0 rg BT 282.49 394.80 Td (s approach in measuring the fair value of proved and unproved ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (properties, as discussed in the paragraphs above. Due to the unobservable characteristics of the inputs, the fair ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 368.40 Td (value of acquired properties are considered Level 3 within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 410.90 368.40 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (Materials Inventory) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 315.60 Td (Materials inventory is valued at the lower of cost or market. ) Tj ET Q q 0 0 0 rg BT 354.91 315.60 Td (The Company uses Level 2 inputs to measure ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.40 Td (the fair value of materials inventory) Tj ET Q q 0 0 0 rg BT 207.20 302.40 Td (, which is primarily comprised of tubular goods. ) Tj ET Q q 0 0 0 rg BT 424.82 302.40 Td (The Company uses third party ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.20 Td (market quotes and compares the quotes to the book value of the materials inventory) Tj ET Q q 0 0 0 rg BT 417.37 289.20 Td (. If the book value exceeds the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (quoted market price, the Company reduces the book value to the market price. ) Tj ET Q q 0 0 0 rg BT 399.85 276.00 Td (The considered factors result in an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.80 Td (estimated exit-price. Management believes this approach provides a reasonable and consistent methodology for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 249.60 Td (valuing materials inventory) Tj ET Q q 0 0 0 rg BT 170.25 249.60 Td (. ) Tj ET Q q 0 0 0 rg BT 178.30 249.60 Td (There were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 230.82 249.60 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 241.82 249.60 Td ( materials inventory measured at fair value within the accompanying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 236.40 Td (balance sheets at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 126.66 236.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.10 236.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 234.48 236.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 256.48 236.40 Td (. ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 97.56 211.20 Td (ement Obligations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 186.00 Td (The Company utilizes the income valuation technique to determine the fair value of the asset retirement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 172.80 Td (obligation liability at the point of inception by applying a credit-adjusted risk-free rate, which takes into account the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 159.60 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 159.60 Td (s credit risk, the time value of money) Tj ET Q q 0 0 0 rg BT 258.85 159.60 Td (, and the current economic state, to the undiscounted expected ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 146.40 Td (abandonment cash flows. Given the unobservable nature of the inputs, the initial measurement of the asset ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 133.20 Td (retirement obligation liability is deemed to use Level 3 inputs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.72 133.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.72 133.20 Td (There were ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 381.23 133.20 Td (no) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.23 133.20 Td ( asset retirement obligations measured ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (at fair value within the accompanying balance sheets at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.87 120.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.31 120.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.70 120.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.70 120.00 Td (.) Tj ET Q endstream endobj 283 0 obj <> endobj 284 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (141) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 94.30 734.60 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 235.17 734.60 Td (Agr) Tj ET Q q 0 0 0 rg BT 253.30 734.60 Td (eement) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 708.20 Td (In June 201) Tj ET Q q 0 0 0 rg BT 136.92 708.20 Td (1, the Company entered into an ) Tj ET Q q 0 0 0 rg BT 277.14 708.20 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 411.25 708.20 Td (Agreement with Mitsui. Pursuant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 695.00 Td (to the ) Tj ET Q q 0 0 0 rg BT 76.89 695.00 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 211.00 695.00 Td (Agreement, the Company agreed to transfer to Mitsui a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 457.21 695.00 Td (12.5 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.58 695.00 Td ( working ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.80 Td (interest in certain non-operated oil and gas assets representing approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.11 681.80 Td (39,000) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.36 681.80 Td ( net acres in Dimmit, LaSalle, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.60 Td (Maverick, and ) Tj ET Q q 0 0 0 rg BT 116.08 668.60 Td (W) Tj ET Q q 0 0 0 rg BT 125.58 668.60 Td (ebb Counties, ) Tj ET Q q 0 0 0 rg BT 188.63 668.60 Td (T) Tj ET Q q 0 0 0 rg BT 194.58 668.60 Td (exas. ) Tj ET Q q 0 0 0 rg BT 221.77 668.60 Td (As consideration for the oil and gas interests transferred, Mitsui agreed to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 655.40 Td (pay) Tj ET Q q 0 0 0 rg BT 65.17 655.40 Td (, or carry) Tj ET Q q 0 0 0 rg BT 104.46 655.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 109.96 655.40 Td (90 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.07 655.40 Td ( of certain drilling and completion costs attributable to the Company) Tj ET Q q 0 0 0 rg BT 460.34 655.40 Td (s remaining interest in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 642.20 Td (these assets until Mitsui has expended an aggregate) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.10 642.20 Td ($680.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 343.88 642.20 Td ( on behalf of the Company) Tj ET Q q 0 0 0 rg BT 460.78 642.20 Td (. Based on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 629.00 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 629.00 Td (s forecast of the operator) Tj ET Q q 0 0 0 rg BT 205.58 629.00 Td () Tj ET Q q 0 0 0 rg BT 208.64 629.00 Td (s drilling plans, the carry will be fully utilized in early 2014. ) Tj ET Q q 0 0 0 rg BT 479.40 629.00 Td (The ) Tj ET Q q 0 0 0 rg BT 498.65 629.00 Td (Acquisition ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 615.80 Td (and Development ) Tj ET Q q 0 0 0 rg BT 130.03 615.80 Td (Agreement also provided for reimbursement of capital expenditures and other costs, net of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 602.60 Td (revenues, paid by the Company that were attributable to the transferred interest during the period between the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 589.40 Td (ef) Tj ET Q q 0 0 0 rg BT 58.35 589.40 Td (fective date and the closing date, which the parties agreed would be applied over the carry period to cover the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 576.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.83 576.20 Td (s remaining ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 150.21 576.20 Td (10 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.32 576.20 Td ( of drilling and completion costs for the af) Tj ET Q q 0 0 0 rg BT 381.86 576.20 Td (fected acreage. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 563.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 549.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.89 549.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 199.33 549.80 Td (, the Company held ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 288.23 549.80 Td ($95.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.51 549.80 Td ( in cash that is contractually restricted for use in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 536.60 Td (the development of assets covered by the ) Tj ET Q q 0 0 0 rg BT 232.97 536.60 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 367.09 536.60 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 424.01 536.60 Td (This cash relates to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 523.40 Td (reimbursement of net costs for the period between the ef) Tj ET Q q 0 0 0 rg BT 298.13 523.40 Td (fective date and closing date, as discussed above, as well as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 510.20 Td (an estimate of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.45 510.20 Td (90 percent) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.56 510.20 Td ( of two months of activity of the Company) Tj ET Q q 0 0 0 rg BT 351.21 510.20 Td (s proportionate share of estimated drilling and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 497.00 Td (completion costs. ) Tj ET Q q 0 0 0 rg BT 132.29 497.00 Td (This restricted cash is classified as a noncurrent asset in the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 534.67 497.00 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 483.80 Td (Company has recorded a corresponding liability equal to the restricted cash balance. ) Tj ET Q q 0 0 0 rg BT 426.11 483.80 Td (The portion of the liability ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.60 Td (related to development operations expected to occur within the next year is recorded in accounts payable and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 457.40 Td (accrued expenses within the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 314.61 457.40 Td (The portion of the liability related to development ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 444.20 Td (operations expected to occur more than one year in the future is recorded in other noncurrent liabilities within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 431.00 Td (accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 187.75 431.00 Td (As the remaining development operations are expected to be completed within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 417.80 Td (next year) Tj ET Q q 0 0 0 rg BT 90.18 417.80 Td (, the entire amount is recorded in accounts payable and accrued expenses within the accompanying balance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 404.60 Td (sheets as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.46 404.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.90 404.60 Td (. ) Tj ET Q q 0 0 0 rg BT 197.95 404.60 Td (There was no net impact on the accompanying statements of cash flows as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 391.40 Td (restricted cash was of) Tj ET Q q 0 0 0 rg BT 144.79 391.40 Td (fset against the corresponding liability in investing activities. ) Tj ET Q q 0 0 0 rg BT 418.31 391.40 Td (There is no direct impact to the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 378.20 Td (accompanying statements of operations as a result of the ) Tj ET Q q 0 0 0 rg BT 300.79 378.20 Td (Acquisition and Development ) Tj ET Q q 0 0 0 rg BT 434.90 378.20 Td (Agreement, with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 365.00 Td (exception of legal and commission costs associated with the execution of the arrangement which were expensed in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 351.80 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 351.80 Td (1. Of the original ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.35 351.80 Td ($680.0 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 212.13 351.80 Td ( carry amount, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 278.72 351.80 Td ($573.8 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 343.50 351.80 Td ( had been spent as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.19 351.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.63 351.80 Td (. ) Tj ET Q endstream endobj 285 0 obj <> endobj 286 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (142) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Note 13 - Suspended ) Tj ET Q q 0 0 0 rg BT 148.21 734.60 Td (W) Tj ET Q q 0 0 0 rg BT 158.60 734.60 Td (ell Costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 709.40 Td (The following table reflects the net changes in capitalized exploratory well costs during ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.23 709.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.23 709.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.73 709.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 523.73 709.40 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (201) Tj ET Q q 0 0 0 rg BT 66.09 696.20 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.59 696.20 Td (. ) Tj ET Q q 0 0 0 rg BT 79.64 696.20 Td (The table does not include amounts that were capitalized and either subsequently expensed or reclassified to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (producing well costs in the same year:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 646.5 m 386.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 646.5 m 400.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 646.5 m 474.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 646.5 m 488.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 646.5 m 562.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 631.5 m 386.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 631.5 m 474.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 646.5 m 562.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 631.5 m 562.5 631.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 534.5 m 386.5 534.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 520.5 m 386.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 518.5 m 386.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 534.5 m 474.5 534.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 520.5 m 474.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 518.5 m 474.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 534.5 m 562.5 534.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 520.5 m 562.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 518.5 m 562.5 518.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 355.50 650.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 338.00 636.40 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 426.00 636.40 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 514.30 636.40 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 403.50 621.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 606.42 Td (Beginning balance on January 1,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.00 606.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.55 606.42 Td (9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.00 606.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.05 606.42 Td (18,600) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.00 606.42 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 606.42 Td (35,862) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 591.37 Td (Additions to capitalized exploratory well costs pending) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 580.37 Td (the determination of proved reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.05 580.42 Td (34,527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.55 580.42 Td (9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 580.42 Td (15,618) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 565.37 Td (Reclassifications to wells, facilities, and equipment based) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 554.37 Td (on the determination of proved reserves) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.85 554.42 Td (\(9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.30 554.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.85 554.42 Td (\(5,865) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.30 554.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 554.42 Td (\(32,880) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 554.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 539.37 Td (Capitalized exploratory well costs charged to expense) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 371.30 539.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.35 539.37 Td (\(12,735) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.30 539.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 539.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 524.37 Td (Ending balance at December 31,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.00 524.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 352.05 524.37 Td (34,527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.00 524.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.55 524.37 Td (9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.00 524.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 524.37 Td (18,600) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 494.80 Td (The following table provides an aging of capitalized exploratory well costs based on the date the drilling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 481.60 Td (was completed and the number of projects for which exploratory well costs have been capitalized for more than one ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 468.40 Td (year since the completion of drilling:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 431.9 m 394.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 431.9 m 408.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 431.9 m 478.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 431.9 m 492.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 431.9 m 562.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 417.9 m 394.5 417.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 417.9 m 478.5 417.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 431.9 m 562.5 431.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 417.9 m 562.5 417.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 375.9 m 394.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 362.9 m 394.5 362.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 360.9 m 394.5 360.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 375.9 m 478.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 362.9 m 478.5 362.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 360.9 m 478.5 360.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 375.9 m 562.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 362.9 m 562.5 362.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 360.9 m 562.5 360.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 336.9 m 394.5 336.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 334.9 m 394.5 334.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 336.9 m 478.5 336.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 334.9 m 478.5 334.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 336.9 m 562.5 336.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 334.9 m 562.5 334.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 397.55 435.95 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 348.00 421.95 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 432.00 421.95 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 516.30 421.95 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 409.50 407.95 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 393.77 Td (Exploratory well costs capitalized for one year or less) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 393.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.05 393.77 Td (34,527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.00 393.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.55 393.77 Td (9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.00 393.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 393.77 Td (15,618) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 379.77 Td (Exploratory well costs capitalized for more than one year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.30 379.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.30 379.77 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 379.77 Td (2,982) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 365.77 Td (Ending balance at December 31,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.00 365.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 360.05 365.77 Td (34,527) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.00 365.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 449.55 365.77 Td (9,100) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.00 365.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 365.77 Td (18,600) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 351.77 Td (Number of projects with exploratory well costs that have) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 340.77 Td (been capitalized more than a year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.30 340.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 463.30 340.82 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.80 340.82 Td (2) Tj ET Q BT /F2 10.00 Tf ET BT /F4 11.00 Tf ET q 0 0 0 rg BT 72.00 311.20 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 311.20 Td (I) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.33 311.20 Td (n the third quarter of 2012, the Company expensed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.00 311.20 Td ($3.6 million) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.78 311.20 Td ( of costs related to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.17 311.20 Td (two) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.67 311.20 Td ( exploratory wells ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 298.00 Td (that had been disclosed at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.77 298.00 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 246.30 298.00 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.80 298.00 Td (, as suspended well costs being capitalized for more than one year) Tj ET Q q 0 0 0 rg BT 541.37 298.00 Td (.) Tj ET Q endstream endobj 287 0 obj <> endobj 288 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (143) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Supplemental Oil and Gas Information \(unaudited\)) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 709.40 Td (Costs Incurr) Tj ET Q q 0 0 0 rg BT 104.90 709.40 Td (ed in Oil and Gas Pr) Tj ET Q q 0 0 0 rg BT 196.46 709.40 Td (oducing ) Tj ET Q q 0 0 0 rg BT 234.45 709.40 Td (Activities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 684.20 Td (Costs incurred in oil and gas property acquisition, exploration and development activities, whether ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 671.00 Td (capitalized or expensed, are summarized as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 634.5 m 358.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 634.5 m 372.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 634.5 m 460.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 634.5 m 474.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 634.5 m 562.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 620.5 m 358.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 634.5 m 460.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 620.5 m 460.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 634.5 m 562.5 634.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 620.5 m 562.5 620.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 536.5 m 358.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 536.5 m 460.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 536.5 m 562.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 536.5 m 358.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 523.5 m 358.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 521.5 m 358.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 536.5 m 460.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 523.5 m 460.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 521.5 m 460.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 536.5 m 562.5 536.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 523.5 m 562.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 521.5 m 562.5 521.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 334.50 638.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.00 624.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 405.00 624.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 507.30 624.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 382.50 610.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 596.37 Td (Development costs ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 139.76 601.36 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.00 596.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.30 596.37 Td (1,350,116) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.00 596.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 596.37 Td (1,346,216) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.00 596.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 596.37 Td (1,320,627) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 582.37 Td (Exploration costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.55 582.37 Td (168,612) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.55 582.37 Td (220,921) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.55 582.37 Td (177,465) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 568.37 Td (Acquisitions) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 554.37 Td (Proved properties) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.05 554.37 Td (29,859) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 431.55 554.37 Td (5,773) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 554.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.00 540.37 Td (Unproved properties ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 164.47 545.36 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 318.55 540.37 Td (172,546) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 420.55 540.37 Td (114,971) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 540.37 Td (55,237) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 526.37 Td (T) Tj ET Q q 0 0 0 rg BT 58.95 526.37 Td (otal, including asset retirement obligation ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 244.68 531.36 Td (\(3\)\(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.00 526.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.30 526.37 Td (1,721,133) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 375.00 526.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 526.37 Td (1,687,881) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 477.00 526.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 526.37 Td (1,553,329) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 511.00 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 511.00 Td (Includes facility costs of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.53 511.00 Td ($49.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.42 511.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.42 511.00 Td ($62.2 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.31 511.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.25 511.00 Td ($1) Tj ET Q q 0 0 0 rg BT 312.88 511.00 Td (12.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.77 511.00 Td ( for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.12 511.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.71 511.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.71 511.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 546.71 511.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 499.00 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.94 499.00 Td (201) Tj ET Q q 0 0 0 rg BT 99.57 499.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.57 499.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 157.23 499.00 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 487.00 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 487.00 Td (Includes ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.38 487.00 Td ($58.5 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.27 487.00 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.71 487.00 Td ($3.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.60 487.00 Td ( of unproved properties acquired as part of a proved property acquisition for the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 475.00 Td (years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 117.98 475.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.56 475.00 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.00 475.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.00 475.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 288.66 475.00 Td (. ) Tj ET Q q 0 0 0 rg BT 295.98 475.00 Td (The remaining balance relates to leasing activity) Tj ET Q q 0 0 0 rg BT 489.14 475.00 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 463.00 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 463.00 Td (Includes capitalized interest of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 192.95 463.00 Td ($1) Tj ET Q q 0 0 0 rg BT 202.58 463.00 Td (1.0 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.47 463.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.47 463.00 Td ($12.1 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.36 463.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.30 463.00 Td ($10.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.19 463.00 Td ( for the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.54 463.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 541.13 463.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 451.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 88.00 451.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 109.94 451.00 Td (201) Tj ET Q q 0 0 0 rg BT 124.57 451.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 129.57 451.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 182.23 451.00 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 439.00 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 439.00 Td (Includes amounts relating to estimated asset retirement obligations of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.21 439.00 Td ($26.8 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.10 439.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.10 439.00 Td ($30.6 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.99 439.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.93 439.00 Td ($19.3 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.82 439.00 Td ( for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 427.00 Td (the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 132.69 427.00 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.28 427.00 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.28 427.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.28 427.00 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.21 427.00 Td (201) Tj ET Q q 0 0 0 rg BT 272.84 427.00 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.84 427.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 330.50 427.00 Td (.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 401.80 Td (Oil and Gas Reserve Quantities) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 376.60 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 376.60 Td (The reserve estimates presented below were made in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 424.62 376.60 Td ( requirements for disclosures ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 363.40 Td (about oil and gas producing activities and SEC rules for oil and gas reporting reserve estimation and disclosure. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 337.00 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 337.00 Td (Proved reserves are the estimated quantities of oil, gas, and NGLs, which, by analysis of geoscience and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 323.80 Td (engineering data, can be estimated with reasonable certainty to be economically producible from a given date ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 310.60 Td (forward, from known reservoirs, and under existing economic conditions, operating methods, and government ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 297.40 Td (regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 284.20 Td (renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 271.00 Td (estimation. Existing economic conditions include prices and costs at which economic producibility from a reservoir ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 257.80 Td (is to be determined, and the price to be used is the average price during the 12-month period prior to the ending date ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 244.60 Td (of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 231.40 Td (price for each month within such period, unless prices are defined by contractual arrangements, excluding ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 218.20 Td (escalations based upon future conditions. ) Tj ET Q q 0 0 0 rg BT 236.04 218.20 Td (All of the Company) Tj ET Q q 0 0 0 rg BT 326.78 218.20 Td (s estimated proved reserves are located in the United ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 205.00 Td (States.) Tj ET Q endstream endobj 289 0 obj <> endobj 290 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (144) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The table below presents a summary of changes in the Company) Tj ET Q q 0 0 0 rg BT 373.14 734.40 Td (s estimated proved reserves for each of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (years in the three-year period ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 210.64 721.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.09 721.20 Td (. ) Tj ET Q q 0 0 0 rg BT 305.14 721.20 Td (The Company engaged R) Tj ET Q q 0 0 0 rg BT 416.81 721.20 Td (yder Scott to audit internal ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (engineering estimates for at least 80 percent of the PV) Tj ET Q q 0 0 0 rg BT 287.55 708.00 Td (-10 value of its estimated proved reserves in each year ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (presented. ) Tj ET Q q 0 0 0 rg BT 100.20 694.80 Td (The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (discoveries and undeveloped locations are more imprecise than estimates of established producing oil and gas ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (properties. ) Tj ET Q q 0 0 0 rg BT 101.63 668.40 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 155.90 668.40 Td (, these estimates are expected to change as future information becomes available.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 628.9 m 184.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184.5 628.9 m 188.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 628.9 m 227.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 628.9 m 231.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 628.9 m 278.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 628.9 m 282.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 628.9 m 329.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 628.9 m 333.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 628.9 m 372.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 628.9 m 376.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 628.9 m 423.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 628.9 m 427.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 628.9 m 474.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 628.9 m 478.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 628.9 m 517.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 628.9 m 521.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 628.9 m 568.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 628.9 m 184.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 614.9 m 184.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184.5 628.9 m 188.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184.5 614.9 m 188.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 628.9 m 227.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 614.9 m 227.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 628.9 m 231.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 614.9 m 231.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 628.9 m 278.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 614.9 m 278.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 628.9 m 329.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 614.9 m 329.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 628.9 m 333.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 614.9 m 333.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 628.9 m 372.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 614.9 m 372.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 628.9 m 376.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 614.9 m 376.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 628.9 m 423.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 614.9 m 423.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 628.9 m 474.5 628.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 614.9 m 474.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 614.9 m 478.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 614.9 m 517.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 614.9 m 521.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 614.9 m 568.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 592.9 m 184.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 592.9 m 227.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 614.9 m 278.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 592.9 m 278.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 614.9 m 329.5 614.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 592.9 m 329.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 592.9 m 372.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 592.9 m 423.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 592.9 m 474.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 592.9 m 517.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 592.9 m 568.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 592.9 m 278.5 592.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 553.9 m 137.5 553.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 390.9 m 184.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 390.9 m 227.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 390.9 m 278.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 390.9 m 329.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 390.9 m 372.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 390.9 m 423.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 390.9 m 474.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 390.9 m 517.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 390.9 m 568.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 390.9 m 184.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 377.9 m 184.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 375.9 m 184.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 390.9 m 227.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 377.9 m 227.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 375.9 m 227.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 390.9 m 278.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 377.9 m 278.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231.5 375.9 m 278.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 390.9 m 329.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 377.9 m 329.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 375.9 m 329.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 390.9 m 372.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 377.9 m 372.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 375.9 m 372.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 390.9 m 423.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 377.9 m 423.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 375.9 m 423.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 390.9 m 474.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 377.9 m 474.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 375.9 m 474.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 390.9 m 517.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 377.9 m 517.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 375.9 m 517.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 390.9 m 568.5 390.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 377.9 m 568.5 377.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 375.9 m 568.5 375.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 351.9 m 137.5 351.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 287.9 m 137.5 287.9 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 278.40 633.58 Td (For the Years Ended December 31,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 192.45 619.58 Td (2013 ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 214.95 624.11 Td (\(1\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 337.45 619.58 Td (2012 ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 359.95 624.11 Td (\(2\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 482.70 619.58 Td (201) Tj ET Q q 0 0 0 rg BT 497.15 619.58 Td (1 ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 504.65 624.11 Td (\(3\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 153.80 597.58 Td (Oil) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 199.15 597.58 Td (Gas) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 241.70 597.58 Td (NGLs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.80 597.58 Td (Oil) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 344.15 597.58 Td (Gas) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 386.70 597.58 Td (NGLs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 443.80 597.58 Td (Oil) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 489.15 597.58 Td (Gas) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 531.70 597.58 Td (NGLs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 140.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 196.95 583.58 Td (\(Bcf\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 285.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 341.95 583.58 Td (\(Bcf\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 379.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 430.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 486.95 583.58 Td (\(Bcf\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 524.20 583.58 Td (\(MMBbl\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 568.57 Td (Total proved) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 558.57 Td (reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 544.47 Td (Beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 544.47 Td (92.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 544.47 Td (833.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 544.47 Td (62.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 544.47 Td (71.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 544.47 Td (664.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 544.47 Td (27.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 544.47 Td (57.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 544.47 Td (640.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.65 544.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 529.57 Td (Revisions of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 519.57 Td (previous estimate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 164.80 519.57 Td (\(5.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 180.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 206.15 519.57 Td (68.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.80 519.57 Td (\(1.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.80 519.62 Td (\(4.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.80 519.62 Td (\(123.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 519.62 Td (\(2.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 519.62 Td (\(0.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.80 519.62 Td (\(76.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 513.65 519.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.15 519.57 Td (15.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 504.57 Td (Discoveries and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 494.57 Td (extensions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 494.57 Td (34.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 494.57 Td (399.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 494.57 Td (39.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 494.57 Td (17.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 494.57 Td (297.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 494.57 Td (30.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 494.57 Td (26.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 494.57 Td (223.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.15 494.57 Td (17.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 479.57 Td (Infill reserves in an) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 469.57 Td (existing proved) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 459.57 Td (field) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 459.57 Td (21.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 459.57 Td (118.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 459.57 Td (13.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 459.57 Td (19.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 459.57 Td (125.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 459.57 Td (12.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 459.57 Td (2.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.15 459.57 Td (14.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 552.15 459.57 Td (0.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.00 444.57 Td (Sales of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.00 434.57 Td (reserves ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 90.26 439.10 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 164.80 434.57 Td (\(3.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 180.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.80 434.57 Td (\(85.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.80 434.57 Td (\(0.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.80 434.62 Td (\(1.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.80 434.62 Td (\(11.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.65 434.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 434.62 Td (\(6.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.80 434.62 Td (\(37.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 513.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.80 434.57 Td (\(2.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 564.65 434.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 419.57 Td (Purchases of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 409.57 Td (minerals in place) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.15 409.57 Td (0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.15 409.57 Td (3.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 264.65 409.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.15 409.57 Td (0.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.15 409.57 Td (1.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.65 409.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.65 409.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.65 409.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.65 409.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 395.47 Td (Production) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.80 395.47 Td (\(13.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 180.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.80 395.47 Td (\(149.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 223.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 258.80 395.47 Td (\(9.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.80 395.52 Td (\(10.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.80 395.52 Td (\(120.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 395.52 Td (\(6.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 395.52 Td (\(8.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.80 395.52 Td (\(100.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 513.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 548.80 395.47 Td (\(3.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 564.65 395.47 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 381.47 Td (End of year ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 102.15 386.00 Td (\(5\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.15 381.47 Td (126.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.60 381.47 Td (1,189.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.15 381.47 Td (103.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 381.47 Td (92.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 381.47 Td (833.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 381.47 Td (62.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 381.47 Td (71.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 381.47 Td (664.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.15 381.47 Td (27.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 366.57 Td (Proved developed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 356.57 Td (reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 342.47 Td (Beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 342.47 Td (58.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 342.47 Td (483.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 342.47 Td (27.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 342.47 Td (50.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 342.47 Td (451.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 342.47 Td (15.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 342.47 Td (46.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 342.47 Td (411.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.65 342.47 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 327.57 Td (End of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 327.57 Td (70.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 327.57 Td (569.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 327.57 Td (43.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 327.57 Td (58.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 327.57 Td (483.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 327.57 Td (27.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 327.57 Td (50.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 327.57 Td (451.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.15 327.57 Td (15.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 312.57 Td (Proved) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 302.57 Td (undeveloped) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.00 292.57 Td (reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 277.57 Td (Beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 277.57 Td (33.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 277.57 Td (350.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 277.57 Td (35.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 277.57 Td (21.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 277.57 Td (212.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 277.57 Td (12.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 277.57 Td (11.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 277.57 Td (229.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 554.65 277.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 263.47 Td (End of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.15 263.47 Td (56.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.10 263.47 Td (620.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.15 263.47 Td (60.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 263.47 Td (33.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.10 263.47 Td (350.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 263.47 Td (35.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.15 263.47 Td (21.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.10 263.47 Td (212.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.15 263.47 Td (12.3) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.40 Td (Note: ) Tj ET Q q 0 0 0 rg BT 74.17 248.40 Td (Amounts may not recalculate due to rounding. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 236.40 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 236.40 Td (For the year ended December31, 2013, of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.32 236.40 Td (5.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.82 236.40 Td ( MMBOE upward revision of a previous estimate, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.84 236.40 Td (0.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.34 236.40 Td ( MMBOE and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 224.40 Td (4.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 98.50 224.40 Td ( MMBOE relate to price and performance revisions, respectively) Tj ET Q q 0 0 0 rg BT 357.48 224.40 Td (. ) Tj ET Q q 0 0 0 rg BT 364.80 224.40 Td (The prices used in the calculation of proved ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 212.40 Td (reserve estimates as of December31, 2013, were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.25 212.40 Td ($96.94) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.75 212.40 Td ( per Bbl, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.97 212.40 Td ($3.67) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.47 212.40 Td ( per MMBtu, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.41 212.40 Td ($40.29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.91 212.40 Td ( per Bbl for oil, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 200.40 Td (natural gas, and NGLs respectively) Tj ET Q q 0 0 0 rg BT 226.14 200.40 Td (. ) Tj ET Q q 0 0 0 rg BT 233.46 200.40 Td (These prices were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.14 200.40 Td (two percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.06 200.40 Td ( higher) Tj ET Q q 0 0 0 rg BT 382.71 200.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.71 200.40 Td (33 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.63 200.40 Td ( higher) Tj ET Q q 0 0 0 rg BT 457.28 200.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.22 200.40 Td (12 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.14 200.40 Td ( lower) Tj ET Q q 0 0 0 rg BT 546.01 200.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 188.40 Td (respectively) Tj ET Q q 0 0 0 rg BT 133.66 188.40 Td (, than the prices used in 2012. ) Tj ET Q q 0 0 0 rg BT 257.90 188.40 Td (The Company added ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.71 188.40 Td (195.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.21 188.40 Td ( MMBOE from its drilling program, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 176.40 Td (majority of which related to activity in the Eagle Ford shale in South ) Tj ET Q q 0 0 0 rg BT 363.26 176.40 Td (T) Tj ET Q q 0 0 0 rg BT 368.67 176.40 Td (exas and Bakken/Three Forks plays in North ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 164.40 Td (Dakota. ) Tj ET Q q 0 0 0 rg BT 122.20 164.40 Td (These additions are included in discoveries and extensions and infill reserves. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 152.40 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 152.40 Td (For the year ended December31, 2012, of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.32 152.40 Td (27.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.82 152.40 Td ( MMBOE downward revision of a previous estimate, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.06 152.40 Td (12.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.56 152.40 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 140.40 Td (MMBOE and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 143.22 140.40 Td (15.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 160.72 140.40 Td ( MMBOE relate to price and performance revisions, respectively) Tj ET Q q 0 0 0 rg BT 419.70 140.40 Td (. ) Tj ET Q q 0 0 0 rg BT 427.02 140.40 Td (The prices used in the calculation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 128.40 Td (of proved reserve estimates as of December31, 2012, were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.35 128.40 Td ($94.71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.85 128.40 Td ( per Bbl, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.07 128.40 Td ($2.76) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.57 128.40 Td ( per MMBtu, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.51 128.40 Td ($45.65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.01 128.40 Td ( per Bbl for ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 116.40 Td (oil, natural gas, and NGLs respectively) Tj ET Q q 0 0 0 rg BT 241.69 116.40 Td (. ) Tj ET Q q 0 0 0 rg BT 249.01 116.40 Td (These prices were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.70 116.40 Td (two percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.62 116.40 Td ( lower) Tj ET Q q 0 0 0 rg BT 395.49 116.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.49 116.40 Td (33 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.41 116.40 Td ( lower) Tj ET Q q 0 0 0 rg BT 467.28 116.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.72 116.40 Td (23 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.64 116.40 Td ( lower) Tj ET Q q 0 0 0 rg BT 558.51 116.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 104.40 Td (respectively) Tj ET Q q 0 0 0 rg BT 133.66 104.40 Td (, than the prices used in 201) Tj ET Q q 0 0 0 rg BT 245.21 104.40 Td (1. ) Tj ET Q q 0 0 0 rg BT 257.53 104.40 Td (The Company added ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.34 104.40 Td (150.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.84 104.40 Td ( MMBOE from its drilling program, the majority ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 92.40 Td (of which related to activity in the Eagle Ford shale in South ) Tj ET Q q 0 0 0 rg BT 326.87 92.40 Td (T) Tj ET Q q 0 0 0 rg BT 332.28 92.40 Td (exas. ) Tj ET Q q 0 0 0 rg BT 357.37 92.40 Td (These additions are included in discoveries and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 80.40 Td (extensions and infill reserves. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 68.40 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 68.40 Td (For the year ended December31, 201) Tj ET Q q 0 0 0 rg BT 236.41 68.40 Td (1, of the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.95 68.40 Td (1.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.45 68.40 Td ( MMBOE upward revision of a previous estimate, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.47 68.40 Td (\(4.2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.63 68.40 Td ( MMBOE ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 56.40 Td (and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.94 56.40 Td (6.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 115.44 56.40 Td ( MMBOE relate to price and performance revisions, respectively) Tj ET Q q 0 0 0 rg BT 374.42 56.40 Td (. ) Tj ET Q q 0 0 0 rg BT 381.74 56.40 Td (The prices used in the calculation of proved ) Tj ET Q endstream endobj 291 0 obj <> endobj 292 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (145) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 735.10 Td (reserve estimates as of December31, 201) Tj ET Q q 0 0 0 rg BT 251.95 735.10 Td (1, were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.88 735.10 Td ($96.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.38 735.10 Td ( per Bbl and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.04 735.10 Td ($4.12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.54 735.10 Td ( per MMBtu, for oil and natural gas ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 723.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 133.66 723.10 Td (. ) Tj ET Q q 0 0 0 rg BT 140.98 723.10 Td (These prices were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.66 723.10 Td (21 percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.59 723.10 Td ( higher and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.07 723.10 Td (six percent) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.67 723.10 Td ( lower) Tj ET Q q 0 0 0 rg BT 373.53 723.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 426.20 723.10 Td (, than the prices used in 2010. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 711.10 Td (The per Bbl price used to estimate proved NGL) Tj ET Q q 0 0 0 rg BT 276.13 711.10 Td ( reserves as of December31, 201) Tj ET Q q 0 0 0 rg BT 408.76 711.10 Td (1 was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.31 711.10 Td ($59.37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.81 711.10 Td (. Performance revisions ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 699.10 Td (in 201) Tj ET Q q 0 0 0 rg BT 110.91 699.10 Td (1 resulted in a net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 184.50 699.10 Td (6.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.00 699.10 Td ( MMBOE increase in the estimate of proved reserves. ) Tj ET Q q 0 0 0 rg BT 417.03 699.10 Td (This increase includes the impact of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 687.10 Td (the Company's conversion to three stream production, which is partially of) Tj ET Q q 0 0 0 rg BT 384.50 687.10 Td (fset by downward engineering revisions due ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 675.10 Td (primarily to the failure of ) Tj ET Q q 0 0 0 rg BT 189.95 675.10 Td (W) Tj ET Q q 0 0 0 rg BT 198.59 675.10 Td (oodford shale wells in the Company's Mid-Continent region to satisfy internal economic ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 663.10 Td (hurdles. ) Tj ET Q q 0 0 0 rg BT 122.76 663.10 Td (The Company added ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.57 663.10 Td (87.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.07 663.10 Td ( MMBOE from its drilling program, the majority of which related to activity in the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 651.10 Td (Eagle Ford shale in South ) Tj ET Q q 0 0 0 rg BT 191.64 651.10 Td (T) Tj ET Q q 0 0 0 rg BT 197.05 651.10 Td (exas. ) Tj ET Q q 0 0 0 rg BT 222.14 651.10 Td (These additions are included in discoveries and extensions and infill reserves. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 639.10 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 639.10 Td (The Company divested of certain non-core assets during ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.27 639.10 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.27 639.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.27 639.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.27 639.10 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.21 639.10 Td (201) Tj ET Q q 0 0 0 rg BT 395.83 639.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.83 639.10 Td (. Please refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 468.03 639.10 Td (Note 3 - Divestitur) Tj ET Q q 0 0 0 rg BT 542.37 639.10 Td (es ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.00 627.10 Td (and ) Tj ET Q q 0 0 0 rg BT 103.32 627.10 Td (Assets Held for Sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 184.14 627.10 Td ( for additional information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 615.10 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 615.10 Td (For the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 167.08 615.10 Td (December31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.67 615.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.67 615.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.67 615.10 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.61 615.10 Td (201) Tj ET Q q 0 0 0 rg BT 307.24 615.10 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.24 615.10 Td (, amounts included approximately ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.81 615.10 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.81 615.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.81 615.10 Td (50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.81 615.10 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.75 615.10 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 507.75 615.10 Td ( MBOE ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 603.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 133.66 603.10 Td (, representing the Company) Tj ET Q q 0 0 0 rg BT 246.97 603.10 Td (s net underproduced gas balancing position.) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 50.00 576.70 Td (Standar) Tj ET Q q 0 0 0 rg BT 84.43 576.70 Td (dized Measur) Tj ET Q q 0 0 0 rg BT 143.60 576.70 Td (e of Discounted Futur) Tj ET Q q 0 0 0 rg BT 240.03 576.70 Td (e Net Cash Flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 551.50 Td (The Company computes a standardized measure of future net cash flows and changes therein relating to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.30 Td (estimated proved reserves in accordance with authoritative accounting guidance. Future cash inflows and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.10 Td (production and development costs are determined by applying prices and costs, including transportation, quality) Tj ET Q q 0 0 0 rg BT 542.64 525.10 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 511.90 Td (and basis dif) Tj ET Q q 0 0 0 rg BT 105.40 511.90 Td (ferentials, to the year) Tj ET Q q 0 0 0 rg BT 198.03 511.90 Td (-end estimated future reserve quantities. Each property the Company operates is ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.70 Td (also char) Tj ET Q q 0 0 0 rg BT 89.20 498.70 Td (ged with field-level overhead in the estimated reserve calculation. Estimated future income taxes are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 485.50 Td (computed using the current statutory income tax rates, including consideration for estimated future statutory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.30 Td (depletion. ) Tj ET Q q 0 0 0 rg BT 98.98 472.30 Td (The resulting future net cash flows are reduced to present value amounts by applying a 10 percent annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (discount factor) Tj ET Q q 0 0 0 rg BT 115.07 459.10 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 433.90 Td (Future operating costs are determined based on estimates of expenditures to be incurred in developing and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 420.70 Td (producing the proved reserves in place at the end of the period using year) Tj ET Q q 0 0 0 rg BT 372.64 420.70 Td (-end costs and assuming continuation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 407.50 Td (existing economic conditions, plus Company overhead incurred by the central administrative of) Tj ET Q q 0 0 0 rg BT 470.74 407.50 Td (fice attributable to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 394.30 Td (operating activities.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 369.10 Td (The assumptions used to compute the standardized measure are those prescribed by the F) Tj ET Q q 0 0 0 rg BT 477.71 369.10 Td (ASB and the SEC. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.90 Td (These assumptions do not necessarily reflect the Company) Tj ET Q q 0 0 0 rg BT 311.19 355.90 Td (s expectations of actual revenues to be derived from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 342.70 Td (those reserves, nor their present value. ) Tj ET Q q 0 0 0 rg BT 224.21 342.70 Td (The limitations inherent in the reserve quantity estimation process, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 329.50 Td (discussed previously) Tj ET Q q 0 0 0 rg BT 140.64 329.50 Td (, are equally applicable to the standardized measure computations since these reserve quantity ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 316.30 Td (estimates are the basis for the valuation process. ) Tj ET Q q 0 0 0 rg BT 267.29 316.30 Td (The following prices as adjusted for transportation, quality) Tj ET Q q 0 0 0 rg BT 525.01 316.30 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (basis dif) Tj ET Q q 0 0 0 rg BT 86.77 303.10 Td (ferentials were used in the calculation of the standardized measure:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177.5 265.6 m 243.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 243.5 265.6 m 257.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 265.6 m 323.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 265.6 m 337.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 265.6 m 403.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177.5 251.60000000000002 m 243.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 251.60000000000002 m 323.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 251.60000000000002 m 403.5 251.60000000000002 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 208.50 270.50 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 199.00 255.65 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 279.00 255.65 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 359.30 255.65 Td (2011) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 241.47 Td (Oil \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.00 241.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.55 241.47 Td (90.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.00 241.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.55 241.47 Td (86.80) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.00 241.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 241.47 Td (88.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 227.47 Td (Gas \(per Mcf\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.00 227.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 220.05 227.47 Td (3.99) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.00 227.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 300.05 227.47 Td (3.08) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.00 227.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.05 227.47 Td (4.72) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 213.47 Td (NGLs \(per Bbl\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 180.00 213.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 214.55 213.47 Td (35.92) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 260.00 213.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 294.55 213.47 Td (41.00) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 340.00 213.47 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.55 213.47 Td (51.95) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 293 0 obj <> endobj 294 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (146) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (The following summary sets forth the Company) Tj ET Q q 0 0 0 rg BT 300.47 734.40 Td (s future net cash flows relating to proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 561.25 734.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (reserves based on the standardized measure.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 684.7 m 321.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 684.7 m 335.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 684.7 m 416.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 684.7 m 430.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 684.7 m 502.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 670.7 m 321.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 684.7 m 416.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 670.7 m 416.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 684.7 m 430.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 684.7 m 502.5 684.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 670.7 m 502.5 670.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 600.7 m 321.5 600.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 600.7 m 416.5 600.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 600.7 m 502.5 600.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 572.7 m 321.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 572.7 m 416.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 572.7 m 502.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 572.7 m 321.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 547.7 m 321.5 547.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244.5 545.7 m 321.5 545.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 572.7 m 416.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 547.7 m 416.5 547.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 545.7 m 416.5 545.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 572.7 m 502.5 572.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 547.7 m 502.5 547.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 545.7 m 502.5 545.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 327.55 688.75 Td (As of December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 271.50 674.75 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 364.50 674.75 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 455.30 674.75 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 339.50 660.75 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 646.57 Td (Future cash inflows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.75 646.57 Td (19,895,360) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.75 646.57 Td (13,129,243) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.00 646.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.75 646.57 Td (10,871,281) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 632.57 Td (Future production costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.60 632.57 Td (\(7,771,747) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.30 632.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.60 632.57 Td (\(5,013,720) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 632.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.60 632.57 Td (\(3,786,887) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.30 632.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 618.57 Td (Future development costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.60 618.57 Td (\(2,891,325) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.30 618.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.60 618.57 Td (\(1,742,978) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 618.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.60 618.57 Td (\(1,036,352) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.30 618.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 604.57 Td (Future income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.60 604.57 Td (\(2,722,230) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.30 604.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.60 604.57 Td (\(1,609,397) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 604.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.60 604.57 Td (\(1,740,394) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.30 604.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 590.57 Td (Future net cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.25 590.57 Td (6,510,058) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.30 590.57 Td (4,763,148) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.25 590.57 Td (4,307,648) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 576.57 Td (10 percent annual discount) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.60 576.57 Td (\(2,500,619) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.30 576.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 364.60 576.57 Td (\(1,742,134) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 412.30 576.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.60 576.57 Td (\(1,727,608) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 498.30 576.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 562.57 Td (Standardized measure of discounted) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 551.57 Td (future net cash flows) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.00 551.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.25 551.62 Td (4,009,439) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 338.00 551.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.30 551.62 Td (3,021,014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 433.00 551.62 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.25 551.62 Td (2,580,040) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 522.00 Td (The principle sources of changes in the standardized measure of discounted future net cash flows are:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 485.5 m 353.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 485.5 m 367.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 485.5 m 444.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 485.5 m 458.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 485.5 m 535.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 471.5 m 353.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 485.5 m 444.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 471.5 m 444.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 485.5 m 535.5 485.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 471.5 m 535.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 251.5 m 353.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 251.5 m 444.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 251.5 m 535.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 251.5 m 353.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 238.5 m 353.5 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 236.5 m 353.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 251.5 m 444.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 238.5 m 444.5 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 236.5 m 444.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 251.5 m 535.5 251.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 238.5 m 535.5 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 236.5 m 535.5 236.5 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 324.00 489.55 Td (For the Years Ended December 31,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 303.50 475.55 Td (2013) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 394.50 475.55 Td (2012) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 485.80 475.55 Td (2011) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 372.00 461.55 Td (\(in thousands\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 447.37 Td (Standardized measure, beginning of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 447.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.25 447.37 Td (3,021,014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.00 447.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.25 447.37 Td (2,580,040) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 447.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.25 447.37 Td (1,666,367) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 433.37 Td (Sales of oil, gas, and NGLs produced, net of) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 422.37 Td (production costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.60 422.42 Td (\(1,602,505) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 422.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.60 422.42 Td (\(1,081,997) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 422.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 483.60 422.42 Td (\(1,042,281) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.30 422.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 407.37 Td (Net changes in prices and production costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.55 407.37 Td (142,199) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.85 407.37 Td (\(550,293) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 407.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.55 407.37 Td (454,646) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 392.42 Td (Extensions, discoveries and other including infill) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 381.42 Td (reserves in an existing proved field, net) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.00 370.42 Td (of related costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.25 370.42 Td (2,309,075) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.25 370.42 Td (1,872,810) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.25 370.42 Td (1,816,640) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 354.42 Td (Sales of reserves in place) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.85 354.42 Td (\(259,031) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 354.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.35 354.42 Td (\(41,020) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 354.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.85 354.42 Td (\(369,820) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.30 354.42 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 339.37 Td (Purchase of reserves in place) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.05 339.37 Td (30,771) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 415.55 339.37 Td (3,785) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 520.30 339.37 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 325.37 Td (Development costs incurred during the year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.55 325.37 Td (581,107) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 325.37 Td (163,937) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.05 325.37 Td (49,246) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 311.37 Td (Changes in estimated future development costs) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.05 311.37 Td (68,613) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.05 311.37 Td (47,980) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.35 311.37 Td (\(31,410) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.30 311.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 297.37 Td (Revisions of previous quantity estimates) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 319.05 297.37 Td (82,226) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.85 297.37 Td (\(452,454) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.30 297.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 501.05 297.37 Td (32,992) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 283.37 Td (Accretion of discount) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.55 283.37 Td (384,914) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 404.55 283.37 Td (346,118) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.55 283.37 Td (234,433) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 269.37 Td (Net change in income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 309.85 269.37 Td (\(690,953) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 269.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.05 269.37 Td (53,005) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 491.85 269.37 Td (\(203,169) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.30 269.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 255.37 Td (Changes in timing and other) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 315.35 255.37 Td (\(57,991) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 349.30 255.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.05 255.37 Td (79,103) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.35 255.37 Td (\(27,604) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.30 255.37 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 57.00 241.37 Td (Standardized measure, end of year) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 279.00 241.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.25 241.37 Td (4,009,439) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 370.00 241.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.25 241.37 Td (3,021,014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 461.00 241.37 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 487.25 241.37 Td (2,580,040) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 295 0 obj <> endobj 296 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (147) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (Quarterly Financial Information \(unaudited\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 709.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 709.40 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.68 709.40 Td (s quarterly financial information for fiscal years ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.18 709.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 387.18 709.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.57 709.40 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.57 709.40 Td ( is as follows \(in thousands, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td (except per share amounts\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 657.7 m 331.5 657.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 657.7 m 408.5 657.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 657.7 m 485.5 657.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 657.7 m 562.5 657.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 615.7 m 408.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 615.7 m 485.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 615.7 m 562.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 615.7 m 331.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 601.7 m 331.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 615.7 m 408.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 601.7 m 408.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 615.7 m 485.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 601.7 m 485.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 615.7 m 562.5 615.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 601.7 m 562.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 601.7 m 331.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 601.7 m 408.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 601.7 m 485.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 601.7 m 562.5 601.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 475.7 m 331.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 461.7 m 331.5 461.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 475.7 m 408.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 461.7 m 408.5 461.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 475.7 m 485.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 461.7 m 485.5 461.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 475.7 m 562.5 475.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 461.7 m 562.5 461.7 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 285.65 675.75 Td (First) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 356.65 675.75 Td (Second) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 436.70 675.75 Td (Third) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 505.45 675.75 Td (Fourth ) Tj ET Q BT /F3 11.00 Tf ET BT /F3 7.15 Tf ET q 0 0 0 rg BT 541.20 680.73 Td (\(2\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 277.85 661.75 Td (Quarter) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 354.35 661.75 Td (Quarter) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 431.35 661.75 Td (Quarter) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 508.35 661.75 Td (Quarter) Tj ET Q BT /F3 11.00 Tf ET 0 0 0 RG /GS0 gs 1.05 w 0 i [] 0 d 1 J 1 j 3 M 53 646.028857421875 m 199.55029296875 646.028857421875 l s q 0 0 0 rg BT 53.00 647.75 Td (Year Ended December 31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 633.57 Td (Total operating revenues) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 633.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 633.57 Td (484,180) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 633.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 633.57 Td (559,360) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 633.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 633.57 Td (613,107) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 633.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 633.57 Td (636,727) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 619.57 Td (Total operating expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 619.57 Td (437,982) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 619.57 Td (415,076) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 619.57 Td (475,623) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 619.57 Td (596,438) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 605.57 Td (Income from operations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 605.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 605.57 Td (46,198) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 605.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 605.57 Td (144,284) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 605.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 605.57 Td (137,484) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 605.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 605.57 Td (40,289) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 591.57 Td (Income before income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 591.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 591.57 Td (27,109) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 591.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 591.57 Td (122,727) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 591.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 591.57 Td (113,024) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 591.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 528.05 591.57 Td (15,751) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 577.57 Td (Net income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 577.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 577.57 Td (16,727) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 577.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.05 577.57 Td (76,522) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 577.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.05 577.57 Td (70,690) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 577.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 533.55 577.57 Td (6,996) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 563.57 Td (Basic net income per common share ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 217.50 568.56 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 563.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 563.57 Td (0.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 563.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.05 563.57 Td (1.15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 563.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.05 563.57 Td (1.06) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 563.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 563.57 Td (0.10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 549.57 Td (Diluted net income per common share ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 226.06 554.56 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 549.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 549.57 Td (0.25) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 549.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.05 549.57 Td (1.13) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 549.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.05 549.57 Td (1.04) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 549.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 539.05 549.57 Td (0.10) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 55.00 535.57 Td (Dividends declared per common share) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 535.57 Td (0.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.30 535.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.05 535.57 Td (0.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 535.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 535.57 Td () Tj ET Q BT /F3 11.00 Tf ET 0 0 0 RG /GS0 gs 1.05 w 0 i [] 0 d 1 J 1 j 3 M 53 506.028857421875 m 199.55029296875 506.028857421875 l s q 0 0 0 rg BT 53.00 507.75 Td (Year Ended December 31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 493.57 Td (Total operating revenues) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 493.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 493.57 Td (377,423) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 493.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 493.57 Td (304,420) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 493.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 493.57 Td (378,951) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 493.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 493.57 Td (444,308) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 479.57 Td (Total operating expenses) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 291.50 479.57 Td (321,198) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 368.50 479.57 Td (252,029) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.50 479.57 Td (421,787) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 522.50 479.57 Td (530,105) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 465.57 Td (Income \(loss\) from operations) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 465.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 465.57 Td (56,225) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 465.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.05 465.57 Td (52,391) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 465.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.35 465.57 Td (\(42,836) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 465.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 465.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 465.57 Td (\(85,797) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 465.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 451.57 Td (Income \(loss\) before income taxes) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 451.57 Td (42,017) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.05 451.57 Td (39,684) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.35 451.57 Td (\(61,072) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 451.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 451.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 518.85 451.57 Td (\(104,146) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 451.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 437.57 Td (Net income \(loss\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 437.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.05 437.57 Td (26,336) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 437.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.05 437.57 Td (24,889) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 437.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.35 437.57 Td (\(38,336) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 437.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 437.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 524.35 437.57 Td (\(67,138) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 437.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 423.57 Td (Basic net income \(loss\) per common share) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 239.95 428.56 Td ( \(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 423.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 423.57 Td (0.41) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 423.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.05 423.57 Td (0.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 423.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.35 423.57 Td (\(0.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 423.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 423.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.35 423.57 Td (\(1.02) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 423.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 409.57 Td (Diluted net income \(loss\) per common share ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 251.25 414.56 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 409.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 409.57 Td (0.39) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 409.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.05 409.57 Td (0.37) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 409.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.35 409.57 Td (\(0.58) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 481.30 409.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 409.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 535.35 409.57 Td (\(1.02) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 558.30 409.57 Td (\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 395.57 Td (Dividends declared per common share) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.00 395.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.05 395.57 Td (0.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.00 395.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 393.30 395.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 395.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.05 395.57 Td (0.05) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 496.00 395.57 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.30 395.57 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 564.00 392.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 379.00 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 65.58 379.00 Td (Amounts may not sum due to rounding or the impact of quarterly net losses when computing year) Tj ET Q q 0 0 0 rg BT 456.97 379.00 Td (-to-date dilutive shares. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 355.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 63.98 355.00 Td (The fourth quarter of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 150.61 355.00 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 170.61 355.00 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.05 355.00 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.05 355.00 Td ( included ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 249.48 355.00 Td ($1) Tj ET Q q 0 0 0 rg BT 259.11 355.00 Td (10.9 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 355.00 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.44 355.00 Td ($170.4 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.33 355.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 438.99 355.00 Td (, of impairment of proved ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 343.00 Td (properties expense. Please refer to the caption ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 238.54 343.00 Td (Impairment of Pr) Tj ET Q q 0 0 0 rg BT 307.60 343.00 Td (oved and Unpr) Tj ET Q q 0 0 0 rg BT 367.22 343.00 Td (oved Pr) Tj ET Q q 0 0 0 rg BT 398.23 343.00 Td (operties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.44 343.00 Td ( included in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 480.16 343.00 Td (Note 1 - Summary ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 331.00 Td (of Significant ) Tj ET Q q 0 0 0 rg BT 108.43 331.00 Td (Accounting Policies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.68 331.00 Td ( for additional discussion.) Tj ET Q endstream endobj 297 0 obj <> endobj 298 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (148) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 9. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (CHANGES IN ) Tj ET Q q 0 0 0 rg BT 193.52 734.60 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 319.23 734.60 Td (WITH ) Tj ET Q q 0 0 0 rg BT 352.54 734.60 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 407.34 734.60 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 458.07 734.60 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 536.61 734.60 Td (AND ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 122.00 721.40 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 183.73 721.40 Td ( DISCLOSURE) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 696.20 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 696.20 Td (On September 10, 2012, SM Ener) Tj ET Q q 0 0 0 rg BT 235.20 696.20 Td (gy's ) Tj ET Q q 0 0 0 rg BT 254.60 696.20 Td (Audit Committee of the Board of Directors approved the engagement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (of Ernst & ) Tj ET Q q 0 0 0 rg BT 98.78 683.00 Td (Y) Tj ET Q q 0 0 0 rg BT 105.62 683.00 Td (oung LLP) Tj ET Q q 0 0 0 rg BT 149.52 683.00 Td ( as the Company's independent registered accounting firm for the year ending December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (2013, replacing Deloitte & ) Tj ET Q q 0 0 0 rg BT 170.46 669.80 Td (T) Tj ET Q q 0 0 0 rg BT 176.41 669.80 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 224.58 669.80 Td ( \(D&T\). ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 656.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 643.40 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 643.40 Td (The report of D&T) Tj ET Q q 0 0 0 rg BT 169.80 643.40 Td ( on the Company's consolidated financial statements for the years ended December 31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.20 Td (2012, and 201) Tj ET Q q 0 0 0 rg BT 112.22 630.20 Td (1, did not contain an adverse or disclaimer opinions, and was not qualified or modified. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 603.80 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 603.80 Td (During the years ended December 31, 2012, and 201) Tj ET Q q 0 0 0 rg BT 317.74 603.80 Td (1, there were no disagreements with D&T) Tj ET Q q 0 0 0 rg BT 502.35 603.80 Td ( on any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 590.60 Td (matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 577.40 Td (disagreements, if not resolved to the satisfaction of D&T) Tj ET Q q 0 0 0 rg BT 299.37 577.40 Td (, would have caused D&T) Tj ET Q q 0 0 0 rg BT 414.33 577.40 Td ( to make reference to the subject ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 564.20 Td (matter of the disagreement in its report on the consolidated financial statements for such year) Tj ET Q q 0 0 0 rg BT 459.31 564.20 Td (. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (ITEM 9A. ) Tj ET Q q 0 0 0 rg BT 121.50 537.75 Td (CONTROLS ) Tj ET Q q 0 0 0 rg BT 185.38 537.75 Td (AND PROCEDURES) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 511.35 Td (Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 159.31 511.35 Td (e Contr) Tj ET Q q 0 0 0 rg BT 194.85 511.35 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 242.33 511.35 Td (ocedur) Tj ET Q q 0 0 0 rg BT 274.51 511.35 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 484.95 Td (W) Tj ET Q q 0 0 0 rg BT 95.00 484.95 Td (e maintain a system of disclosure controls and procedures that are designed to reasonably ensure that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 471.75 Td (information required to be disclosed in our SEC reports is recorded, processed, summarized, and reported within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 458.55 Td (time periods specified in the SEC) Tj ET Q q 0 0 0 rg BT 200.11 458.55 Td (s rules and forms, and to reasonably ensure that such information is accumulated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 445.35 Td (and communicated to our management, including the Chief Executive Of) Tj ET Q q 0 0 0 rg BT 371.87 445.35 Td (ficer and the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 511.87 445.35 Td (ficer) Tj ET Q q 0 0 0 rg BT 531.57 445.35 Td (, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 432.15 Td (appropriate, to allow for timely decisions regarding required disclosure. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 405.75 Td (Our management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 314.09 405.75 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 437.90 405.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 457.61 405.75 Td (, does not expect that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 392.55 Td (our disclosure controls and procedures \(as defined in Rules13a-15\(e\) and 15d-15\(e\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 496.38 392.55 Td (Act\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 379.35 Td (\(Disclosure Controls\) will prevent all errors and all fraud. ) Tj ET Q q 0 0 0 rg BT 318.00 379.35 Td (A) Tj ET Q q 0 0 0 rg BT 325.34 379.35 Td ( control system, no matter how well conceived and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 366.15 Td (operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 352.95 Td (Further) Tj ET Q q 0 0 0 rg BT 81.44 352.95 Td (, the design of a control system must reflect the fact that there are resource constraints, and the benefits of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 339.80 Td (controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 326.60 Td (evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any) Tj ET Q q 0 0 0 rg BT 510.33 326.60 Td (, within the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 313.40 Td (company have been detected. ) Tj ET Q q 0 0 0 rg BT 184.29 313.40 Td (These inherent limitations include the realities that judgments in decision-making can ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 300.20 Td (be faulty) Tj ET Q q 0 0 0 rg BT 87.58 300.20 Td (, and that breakdowns can occur because of simple error or mistake. ) Tj ET Q q 0 0 0 rg BT 391.49 300.20 Td (Additionally) Tj ET Q q 0 0 0 rg BT 446.39 300.20 Td (, controls can be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 287.00 Td (circumvented by the individual acts of some persons, by collusion of two or more people, or by management ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 273.80 Td (override of the control. ) Tj ET Q q 0 0 0 rg BT 156.21 273.80 Td (The design of any system of controls also is based in part upon certain assumptions about ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 260.60 Td (the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 247.40 Td (goals under all potential future conditions. Because of the inherent limitations in a cost-ef) Tj ET Q q 0 0 0 rg BT 446.11 247.40 Td (fective control system, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 234.20 Td (misstatements due to error or fraud may occur and not be detected. ) Tj ET Q q 0 0 0 rg BT 348.64 234.20 Td (W) Tj ET Q q 0 0 0 rg BT 358.14 234.20 Td (e monitor our Disclosure Controls and make ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 220.95 Td (modifications as necessary; our intent in this regard is that the Disclosure Controls will be modified as systems ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 207.80 Td (change and conditions warrant. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 194.60 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 181.40 Td (An evaluation of the ef) Tj ET Q q 0 0 0 rg BT 186.71 181.40 Td (fectiveness of the design and operation of our Disclosure Controls was performed as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 168.20 Td (of the end of the period covered by this report. ) Tj ET Q q 0 0 0 rg BT 259.46 168.20 Td (This evaluation was performed under the supervision and with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 155.00 Td (participation of our management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 345.90 155.00 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 469.71 155.00 Td (ficer) Tj ET Q q 0 0 0 rg BT 489.25 155.00 Td (. Based upon ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 141.80 Td (that evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 222.80 141.80 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 346.61 141.80 Td (ficer concluded that these Disclosure Controls ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 128.60 Td (are ef) Tj ET Q q 0 0 0 rg BT 74.02 128.60 Td (fective at a reasonable assurance level. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 102.20 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 173.67 102.20 Td (ol Over) Tj ET Q q 0 0 0 rg BT 208.60 102.20 Td ( Financial Reporting) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.77 102.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 75.80 Td (There have been no changes during the fourth quarter of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.95 75.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.95 75.80 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 459.15 75.80 Td (fected, or are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 62.60 Td (reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 194.69 62.60 Td (fect, our internal control over financial reporting. ) Tj ET Q endstream endobj 299 0 obj <> endobj 300 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (149) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 49.50 734.60 Td (Management) Tj ET Q q 0 0 0 rg BT 114.46 734.60 Td (s Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 240.76 734.60 Td (ol over) Tj ET Q q 0 0 0 rg BT 272.63 734.60 Td ( Financial Reporting) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 709.40 Td (Management of the Company is responsible for establishing and maintaining adequate internal control over ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 696.20 Td (financial reporting as defined in Rules 13a-15\(f\) and 15d-15\(f\) under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 464.00 696.20 Td (Act of 1934, as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 683.00 Td (amended. ) Tj ET Q q 0 0 0 rg BT 97.25 683.00 Td (The Company) Tj ET Q q 0 0 0 rg BT 162.94 683.00 Td (s internal control over financial reporting is designed to provide reasonable assurance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 669.80 Td (regarding the reliability of financial reporting and the preparation of financial statements for external purposes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 656.60 Td (accordance with generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 311.34 656.60 Td (The Company) Tj ET Q q 0 0 0 rg BT 377.02 656.60 Td (s internal control over financial reporting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 643.40 Td (includes those policies and procedures that:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 618.20 Td (\(i\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 618.20 Td (pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 605.00 Td (transactions and dispositions of the assets of the Company;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 579.80 Td (\(ii\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 579.80 Td (provide reasonable assurance that transactions are recorded as necessary to permit preparation of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 566.60 Td (financial statements in accordance with generally accepted accounting principles, and that receipts and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 553.40 Td (expenditures of the Company are being made only in accordance with authorizations of management ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 540.20 Td (and directors of the Company; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 515.00 Td (\(iii\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 515.00 Td (provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 103.50 501.80 Td (or disposition of the Company) Tj ET Q q 0 0 0 rg BT 240.38 501.80 Td (s assets that have a material ef) Tj ET Q q 0 0 0 rg BT 373.35 501.80 Td (fect on the financial statements.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 476.60 Td (Because of the inherent limitations, internal controls over financial reporting may not prevent or detect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 463.40 Td (misstatements. Even those systems determined to be ef) Tj ET Q q 0 0 0 rg BT 294.00 463.40 Td (fective can provide only reasonable assurance with respect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 450.20 Td (to financial statement preparation and presentation. ) Tj ET Q q 0 0 0 rg BT 279.81 450.20 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 457.09 450.20 Td (fectiveness to future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 437.00 Td (periods are subject to the risk that controls may become inadequate because of the changes in conditions, or that the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 423.80 Td (degree of compliance with the policies and procedures may deteriorate.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 398.60 Td (Management assessed the ef) Tj ET Q q 0 0 0 rg BT 210.23 398.60 Td (fectiveness of the Company) Tj ET Q q 0 0 0 rg BT 335.78 398.60 Td (s internal control over financial reporting as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 385.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 135.94 385.40 Td (. In making this assessment, management used the criteria set forth by the Committee of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 372.20 Td (Sponsoring Or) Tj ET Q q 0 0 0 rg BT 113.78 372.20 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 194.52 372.20 Td (T) Tj ET Q q 0 0 0 rg BT 200.86 372.20 Td (readway Commission in ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 310.54 372.20 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 373.99 372.20 Td (ol-Integrated Framework) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 486.11 372.20 Td ( \(1992 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 359.00 Td (framework\)) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 101.42 359.00 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 333.80 Td (Based on our assessment and those criteria, management believes that the Company maintained ef) Tj ET Q q 0 0 0 rg BT 517.84 333.80 Td (fective ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 320.60 Td (internal control over financial reporting as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.17 320.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.62 320.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 85.50 295.40 Td (The Company) Tj ET Q q 0 0 0 rg BT 151.18 295.40 Td (s independent registered public accounting firm has issued an attestation report on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 282.20 Td (Company) Tj ET Q q 0 0 0 rg BT 95.33 282.20 Td (s internal controls over financial reporting. ) Tj ET Q q 0 0 0 rg BT 288.79 282.20 Td (That report immediately follows this report.) Tj ET Q endstream endobj 301 0 obj <> endobj 302 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (150) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.35 734.40 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 359.11 734.40 Td (Accounting Firm) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 703.00 Td (The Board of Directors and Stockholders of SM Ener) Tj ET Q q 0 0 0 rg BT 284.52 703.00 Td (gy Company and subsidiaries ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 684.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.00 684.80 Td (e have audited SM Ener) Tj ET Q q 0 0 0 rg BT 164.49 684.80 Td (gy Company and subsidiaries) Tj ET Q q 0 0 0 rg BT 297.18 684.80 Td ( internal control over financial reporting as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 500.61 684.80 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 671.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 71.50 671.60 Td (, based on criteria established in Internal Control-Integrated Framework issued by the Committee of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 658.40 Td (Sponsoring Or) Tj ET Q q 0 0 0 rg BT 113.78 658.40 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 194.52 658.40 Td (T) Tj ET Q q 0 0 0 rg BT 200.86 658.40 Td (readway Commission \(1992 framework\) \(the COSO criteria\). SM Ener) Tj ET Q q 0 0 0 rg BT 513.78 658.40 Td (gy ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 645.20 Td (Company and subsidiaries) Tj ET Q q 0 0 0 rg BT 168.44 645.20 Td ( management is responsible for maintaining ef) Tj ET Q q 0 0 0 rg BT 372.30 645.20 Td (fective internal control over financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 632.00 Td (reporting, and for its assessment of the ef) Tj ET Q q 0 0 0 rg BT 230.75 632.00 Td (fectiveness of internal control over financial reporting included in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 618.80 Td (accompanying Management) Tj ET Q q 0 0 0 rg BT 176.87 618.80 Td (s Report on Internal Control over Financial Reporting. Our responsibility is to express ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 605.60 Td (an opinion on the company) Tj ET Q q 0 0 0 rg BT 172.31 605.60 Td (s internal control over financial reporting based on our audit. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 587.40 Td (W) Tj ET Q q 0 0 0 rg BT 59.00 587.40 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 406.93 587.40 Td (Accounting Oversight Board ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 574.20 Td (\(United States\). ) Tj ET Q q 0 0 0 rg BT 121.09 574.20 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 561.00 Td (whether ef) Tj ET Q q 0 0 0 rg BT 96.02 561.00 Td (fective internal control over financial reporting was maintained in all material respects. Our audit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 547.80 Td (included obtaining an understanding of internal control over financial reporting, assessing the risk that a material ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 534.60 Td (weakness exists, testing and evaluating the design and operating ef) Tj ET Q q 0 0 0 rg BT 343.16 534.60 Td (fectiveness of internal control based on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 521.40 Td (assessed risk, and performing such other procedures as we considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 500.15 521.40 Td (W) Tj ET Q q 0 0 0 rg BT 509.65 521.40 Td (e believe ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 508.20 Td (that our audit provides a reasonable basis for our opinion.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 490.00 Td (A) Tj ET Q q 0 0 0 rg BT 56.84 490.00 Td ( company) Tj ET Q q 0 0 0 rg BT 102.96 490.00 Td (s internal control over financial reporting is a process designed to provide reasonable assurance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 476.80 Td (regarding the reliability of financial reporting and the preparation of financial statements for external purposes in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 463.60 Td (accordance with generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 308.18 463.60 Td (A) Tj ET Q q 0 0 0 rg BT 315.52 463.60 Td ( company) Tj ET Q q 0 0 0 rg BT 361.65 463.60 Td (s internal control over financial reporting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 450.40 Td (includes those policies and procedures that \(1\) pertain to the maintenance of records that, in reasonable detail, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 437.20 Td (accurately and fairly reflect the transactions and dispositions of the assets of the company; \(2\) provide reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 424.00 Td (assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 410.80 Td (with generally accepted accounting principles, and that receipts and expenditures of the company are being made ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 397.60 Td (only in accordance with authorizations of management and directors of the company; and \(3\) provide reasonable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 384.40 Td (assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company) Tj ET Q q 0 0 0 rg BT 555.97 384.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 371.20 Td (assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 202.62 371.20 Td (fect on the financial statements.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 353.00 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 339.80 Td (misstatements.) Tj ET Q q 0 0 0 rg BT 116.72 339.80 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 294.00 339.80 Td (fectiveness to future periods are subject to the risk that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 326.60 Td (controls may become inadequate because of changes in conditions, or that the degree of compliance with the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 313.40 Td (policies or procedures may deteriorate.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 295.20 Td (In our opinion, SM Ener) Tj ET Q q 0 0 0 rg BT 157.15 295.20 Td (gy Company and subsidiaries maintained, in all material respects, ef) Tj ET Q q 0 0 0 rg BT 457.23 295.20 Td (fective internal control ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 282.00 Td (over financial reporting as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 179.92 282.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 266.36 282.00 Td (, based on the COSO criteria.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 263.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.00 263.80 Td (e also have audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 398.68 263.80 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 250.60 Td (States\), the consolidated balance sheet of SM Ener) Tj ET Q q 0 0 0 rg BT 272.29 250.60 Td (gy Company and subsidiaries as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.71 250.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 515.15 250.60 Td (, and the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 237.40 Td (related consolidated statements of operations, comprehensive income \(loss\), stockholders) Tj ET Q q 0 0 0 rg BT 445.79 237.40 Td ( equity) Tj ET Q q 0 0 0 rg BT 475.32 237.40 Td (, and cash flows for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 224.20 Td (the year then ended and our report dated ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.70 224.20 Td (February19, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.66 224.20 Td ( expressed an unqualified opinion thereon) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 494.85 224.20 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 187.80 Td (/s/ Ernst & ) Tj ET Q q 0 0 0 rg BT 99.51 187.80 Td (Y) Tj ET Q q 0 0 0 rg BT 106.35 187.80 Td (oung LLP) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (Denver) Tj ET Q q 0 0 0 rg BT 81.43 174.60 Td (, Colorado) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 49.50 161.40 Td (February19, 2014) Tj ET Q BT /F2 11.00 Tf ET endstream endobj 303 0 obj <> endobj 304 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (151) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 722.60 Td (ITEM 9B. ) Tj ET Q q 0 0 0 rg BT 122.00 722.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 217.43 722.60 Td (TION) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 697.40 Td (None.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 283.90 672.15 Td (P) Tj ET Q q 0 0 0 rg BT 289.80 672.15 Td (AR) Tj ET Q q 0 0 0 rg BT 305.30 672.15 Td (T) Tj ET Q q 0 0 0 rg BT 312.44 672.15 Td ( III) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 647.00 Td (ITEM 10. ) Tj ET Q q 0 0 0 rg BT 122.00 647.00 Td (DIRECT) Tj ET Q q 0 0 0 rg BT 164.59 647.00 Td (ORS, EXECUTIVE OFFICERS, ) Tj ET Q q 0 0 0 rg BT 321.37 647.00 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 402.74 647.00 Td (TE GOVERNANCE) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 621.80 Td (The information required by this Item concerning SM Ener) Tj ET Q q 0 0 0 rg BT 346.06 621.80 Td (gy) Tj ET Q q 0 0 0 rg BT 360.12 621.80 Td (s Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 471.71 621.80 Td (ficers, and corporate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 608.55 Td (governance is incorporated by reference to the information provided under the captions Proposal 1 - Election of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 595.40 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 154.56 595.40 Td (ficers, and Corporate Governance in SM Ener) Tj ET Q q 0 0 0 rg BT 356.27 595.40 Td (gy) Tj ET Q q 0 0 0 rg BT 370.32 595.40 Td (s definitive proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 527.33 595.40 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 549.33 595.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 582.20 Td (annual meeting of stockholders to be filed within 120 days from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 335.02 582.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 421.46 582.20 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 556.95 Td (The information required by this Item concerning compliance with Section 16\(a\) of the Securities Exchange ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (Act of 1934 is incorporated by reference to the information provided under the caption Section 16\(a\) Beneficial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 530.55 Td (Ownership Reporting Compliance in SM Ener) Tj ET Q q 0 0 0 rg BT 254.19 530.55 Td (gy) Tj ET Q q 0 0 0 rg BT 268.24 530.55 Td (s definitive proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.26 530.55 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.26 530.55 Td ( annual meeting of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 517.35 Td (stockholders to be filed within 120 days from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.86 517.35 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 339.30 517.35 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 492.20 Td (ITEM 1) Tj ET Q q 0 0 0 rg BT 86.98 492.20 Td (1. ) Tj ET Q q 0 0 0 rg BT 122.00 492.20 Td (EXECUTIVE COMPENSA) Tj ET Q q 0 0 0 rg BT 252.28 492.20 Td (TION) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 467.00 Td (The information required by this Item is incorporated by reference to the information provided under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 453.80 Td (captions, Executive Compensation and Director Compensation in SM Ener) Tj ET Q q 0 0 0 rg BT 380.04 453.80 Td (gy) Tj ET Q q 0 0 0 rg BT 394.09 453.80 Td (s definitive proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 440.55 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 440.55 Td ( annual meeting of stockholders to be filed within 120 days from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.77 440.55 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.21 440.55 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 415.35 Td (ITEM 12. ) Tj ET Q q 0 0 0 rg BT 122.00 415.35 Td (SECURITY) Tj ET Q q 0 0 0 rg BT 178.44 415.35 Td ( OWNERSHIP) Tj ET Q q 0 0 0 rg BT 249.04 415.35 Td ( OF) Tj ET Q q 0 0 0 rg BT 266.65 415.35 Td ( CER) Tj ET Q q 0 0 0 rg BT 292.24 415.35 Td (T) Tj ET Q q 0 0 0 rg BT 298.76 415.35 Td (AIN BENEFICIAL) Tj ET Q q 0 0 0 rg BT 389.53 415.35 Td ( OWNERS ) Tj ET Q q 0 0 0 rg BT 443.33 415.35 Td (AND MANAGEMENT) Tj ET Q q 0 0 0 rg BT 552.82 415.35 Td ( ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 122.00 402.20 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 178.33 402.20 Td (TED ST) Tj ET Q q 0 0 0 rg BT 216.95 402.20 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 309.94 402.20 Td (TTERS) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 376.95 Td (The information required by this Item concerning security ownership of certain beneficial owners and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 363.80 Td (management is incorporated by reference to the information provided under the caption Security Ownership of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 350.55 Td (Certain Beneficial Owners and Management in SM Ener) Tj ET Q q 0 0 0 rg BT 299.36 350.55 Td (gy) Tj ET Q q 0 0 0 rg BT 313.42 350.55 Td (s definitive proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 470.43 350.55 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 492.43 350.55 Td ( annual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 337.35 Td (meeting of stockholders to be filed within 120 days from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.95 337.35 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 389.39 337.35 Td (.) Tj ET Q endstream endobj 305 0 obj <> endobj 306 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (152) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 734.40 Td (Securities ) Tj ET Q q 0 0 0 rg BT 131.93 734.40 Td (Authorized for Issuance Under Equity Compensation Plans. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 401.71 734.40 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 440.93 734.40 Td (gy has the Equity Plan ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 721.20 Td (under which options and shares of SM Ener) Tj ET Q q 0 0 0 rg BT 242.57 721.20 Td (gy common stock are authorized for grant or issuance as compensation ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 708.00 Td (to eligible employees, consultants, and members of the Board of Directors. Our stockholders have approved this ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 694.80 Td (plan. See ) Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 95.82 694.80 Td (Note 7 Compensation Plans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.21 694.80 Td ( included in Part II, Item 8 of this report for further information about the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 681.60 Td (material terms of our equity compensation plans. ) Tj ET Q q 0 0 0 rg BT 270.66 681.60 Td (The following table is a summary of the shares of common stock ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 668.40 Td (authorized for issuance under the equity compensation plans as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 342.63 668.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.08 668.40 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 517.9 m 279.5 517.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 517.9 m 365.5 517.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 517.9 m 452.5 517.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 517.9 m 562.5 517.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 433.9 m 365.5 433.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 419.9 m 365.5 419.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 433.9 m 452.5 433.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 419.9 m 452.5 419.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 433.9 m 562.5 433.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 419.9 m 562.5 419.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 419.9 m 562.5 419.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 379.9 m 365.5 379.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 366.9 m 365.5 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 364.9 m 365.5 364.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 379.9 m 452.5 379.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 366.9 m 452.5 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 364.9 m 452.5 364.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 379.9 m 562.5 379.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 366.9 m 562.5 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 364.9 m 562.5 364.9 l s BT /F3 11.00 Tf ET q 0 0 0 rg BT 320.05 635.95 Td (\(a\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 406.25 635.95 Td (\(b\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 505.35 635.95 Td (\(c\)) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 53.00 522.80 Td (Plan category) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 301.05 599.80 Td (Number of) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 291.65 588.80 Td (securities to be) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 298.80 577.80 Td (issued upon) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 302.00 566.80 Td (exercise of) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 298.65 555.80 Td (outstanding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 308.00 544.80 Td (options,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 293.45 533.80 Td (warrants, and) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 312.75 522.80 Td (rights) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 388.85 588.80 Td (Weighted-) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 394.65 577.80 Td (average) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 381.15 566.80 Td (exercise price) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.20 555.80 Td (of outstanding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 394.50 544.80 Td (options,) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 379.95 533.80 Td (warrants, and) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 399.25 522.80 Td (rights) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 486.05 610.80 Td (Number of) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 464.05 599.80 Td (securities remaining) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 466.15 588.80 Td (available for future) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 476.60 577.80 Td (issuance under) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 496.80 566.80 Td (equity) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 465.15 555.80 Td (compensation plans) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 487.05 544.80 Td (\(excluding) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 467.75 533.80 Td (securities reflected) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 478.50 522.80 Td (in column \(a\)\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 507.77 Td (Equity compensation plans approved by security) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.50 496.77 Td (holders:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 481.77 Td (Equity Incentive Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 67.00 466.82 Td (Stock options and incentive stock options ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 252.76 471.81 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.05 466.82 Td (39,088) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.00 466.82 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.55 466.82 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 67.00 451.77 Td (Restricted stock ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 140.32 456.76 Td (\(1\)\(3\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.55 451.77 Td (580,431) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.65 451.77 Td (N/A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 67.00 437.77 Td (Performance share units ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 176.04 442.76 Td (\(1\)\(3\)\(4\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.55 437.77 Td (807,406) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 430.65 437.77 Td (N/A) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 423.77 Td (Total for Equity Incentive Compensation Plan) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.25 423.77 Td (1,426,925) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.00 423.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.55 423.77 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 423.77 Td (3,813,900) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 409.77 Td (Employee Stock Purchase Plan ) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 192.92 414.76 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.60 409.77 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.30 409.77 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 409.77 Td (1,230,057) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 395.77 Td (Equity compensation plans not approved by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 66.50 384.77 Td (security holders) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.30 384.82 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.30 384.82 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 554.60 384.82 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 369.77 Td (Total for all plans) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.25 369.77 Td (1,426,925) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.00 369.77 Td ($) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 423.55 369.77 Td (20.87) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.30 369.77 Td (5,043,957) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 354.40 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.40 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 342.40 Td (In May 2006, the stockholders approved the Equity Plan to authorize the issuance of restricted stock, restricted stock units, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 330.40 Td (non-qualified stock options, incentive stock options, stock appreciation rights, performance shares, performance units, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 318.40 Td (stock-based awards to key employees, consultants, and members of the Board of Directors of SM Ener) Tj ET Q q 0 0 0 rg BT 479.10 318.40 Td (gy or any af) Tj ET Q q 0 0 0 rg BT 526.96 318.40 Td (filiate of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 306.40 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 103.65 306.40 Td (gy) Tj ET Q q 0 0 0 rg BT 113.00 306.40 Td (. ) Tj ET Q q 0 0 0 rg BT 120.32 306.40 Td (The Equity Plan serves as the successor to the St. Mary Land & Exploration Company Stock Option Plan, the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 294.40 Td (St. Mary Land & Exploration Company Incentive Stock Option Plan, the SM Ener) Tj ET Q q 0 0 0 rg BT 398.33 294.40 Td (gy Company Restricted Stock Plan, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 282.40 Td (the SM Ener) Tj ET Q q 0 0 0 rg BT 118.37 282.40 Td (gy Company Non-Employee Director Stock Compensation Plan \(collectively referred to as the Predecessor ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 270.40 Td (Plans\). ) Tj ET Q q 0 0 0 rg BT 104.39 270.40 Td (All grants of equity are now made under the Equity Plan, and no further grants will be made under the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 258.40 Td (Predecessor Plans. Each outstanding award under a Predecessor Plan immediately prior to the ef) Tj ET Q q 0 0 0 rg BT 455.76 258.40 Td (fective date of the Equity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 246.40 Td (Plan continues to be governed solely by the terms and conditions of the instruments evidencing such grants or issuances. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 234.40 Td (Our Board of Directors approved amendments to the Equity Plan in 2009, 2010, and 2013 and each amended plan was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 222.40 Td (approved by stockholders at the respective annual stockholders) Tj ET Q q 0 0 0 rg BT 323.01 222.40 Td ( meetings. ) Tj ET Q q 0 0 0 rg BT 368.93 222.40 Td (The awards granted in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.56 222.40 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.56 222.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.56 222.40 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 505.56 222.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 527.50 222.40 Td (201) Tj ET Q q 0 0 0 rg BT 542.13 222.40 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 547.13 222.40 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 210.40 Td (under the Equity Plan were ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 179.36 210.40 Td (632,939) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 211.86 210.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.86 210.40 Td (724,671) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 249.36 210.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.30 210.40 Td (386,802) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.80 210.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 356.46 210.40 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 198.40 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 198.40 Td (Under the SM Ener) Tj ET Q q 0 0 0 rg BT 145.86 198.40 Td (gy Company ESPP) Tj ET Q q 0 0 0 rg BT 221.43 198.40 Td (, eligible employees may purchase shares of our common stock through payroll ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 186.40 Td (deductions of up to 15 percent of their eligible compensation. ) Tj ET Q q 0 0 0 rg BT 318.86 186.40 Td (The purchase price of the stock is 85 percent of the lower of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 174.40 Td (the fair market value of the stock on the first or last day of the six-month of) Tj ET Q q 0 0 0 rg BT 369.40 174.40 Td (fering period, and shares issued under the ESPP) Tj ET Q q 0 0 0 rg BT 560.66 174.40 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 162.40 Td (on or after December 31, 201) Tj ET Q q 0 0 0 rg BT 185.36 162.40 Td (1, have no minimum restriction period. ) Tj ET Q q 0 0 0 rg BT 346.54 162.40 Td (The ESPP) Tj ET Q q 0 0 0 rg BT 387.00 162.40 Td ( is intended to qualify under Section 423 of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 150.40 Td (the Internal Revenue Code. Shares issued under the ESPP) Tj ET Q q 0 0 0 rg BT 301.47 150.40 Td ( totaled ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 333.68 150.40 Td (77,427) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.18 150.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.18 150.40 Td (66,485) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.68 150.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.62 150.40 Td (41,358) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.12 150.40 Td ( in ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.90 150.40 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.90 150.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.90 150.40 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.90 150.40 Td (, and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.84 150.40 Td (201) Tj ET Q q 0 0 0 rg BT 537.47 150.40 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 542.47 150.40 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 138.40 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 138.40 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 126.40 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 126.40 Td (RSUs and PSUs do not have exercise prices associated with them, but rather a weighted-average per share fair value, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 114.40 Td (which is presented in order to provide additional information regarding the potential dilutive ef) Tj ET Q q 0 0 0 rg BT 447.99 114.40 Td (fect of the awards. ) Tj ET Q q 0 0 0 rg BT 526.66 114.40 Td (The ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 102.40 Td (weighted-average grant date per share fair value for the outstanding RSUs and PSUs was ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.78 102.40 Td ($57.05) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.28 102.40 Td ( and $67.74, respectively) Tj ET Q q 0 0 0 rg BT 553.88 102.40 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 90.40 Td (Please refer to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 127.69 90.40 Td (Note 7 - Compensation Plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.47 90.40 Td ( for additional discussion. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 78.40 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 78.40 Td (The number of awards vested assumes a ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.56 78.40 Td (one) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.00 78.40 Td ( multiplier) Tj ET Q q 0 0 0 rg BT 287.38 78.40 Td (. ) Tj ET Q q 0 0 0 rg BT 294.70 78.40 Td (The final number of shares issued upon settlement may vary ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 66.40 Td (depending on the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 139.37 66.40 Td (three) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.36 66.40 Td (-year multiplier determined at the end of the performance period under the Equity Plan, which ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 54.40 Td (ranges from ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 118.54 54.40 Td (zero) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.74 54.40 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.52 54.40 Td (two) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.52 54.40 Td (.) Tj ET Q endstream endobj 307 0 obj <> endobj 308 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (153) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 734.60 Td (ITEM 13. ) Tj ET Q q 0 0 0 rg BT 122.00 734.60 Td (CER) Tj ET Q q 0 0 0 rg BT 144.84 734.60 Td (T) Tj ET Q q 0 0 0 rg BT 151.36 734.60 Td (AIN RELA) Tj ET Q q 0 0 0 rg BT 204.02 734.60 Td (TIONSHIPS ) Tj ET Q q 0 0 0 rg BT 266.07 734.60 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 322.40 734.60 Td (TED ) Tj ET Q q 0 0 0 rg BT 347.57 734.60 Td (TRANSACTIONS, ) Tj ET Q q 0 0 0 rg BT 439.87 734.60 Td (AND DIRECT) Tj ET Q q 0 0 0 rg BT 509.04 734.60 Td (OR ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 122.00 721.40 Td (INDEPENDENCE) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 696.20 Td (The information required by this Item is incorporated by reference to the information provided under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 683.00 Td (caption Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 237.67 683.00 Td (T) Tj ET Q q 0 0 0 rg BT 244.00 683.00 Td (ransactions, and Corporate Governance, in SM Ener) Tj ET Q q 0 0 0 rg BT 473.51 683.00 Td (gy) Tj ET Q q 0 0 0 rg BT 487.57 683.00 Td (s definitive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 669.80 Td (proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 155.08 669.80 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.08 669.80 Td ( annual meeting of stockholders to be filed within 120 days from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.85 669.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 551.29 669.80 Td (.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 644.55 Td (ITEM 14. ) Tj ET Q q 0 0 0 rg BT 122.00 644.55 Td (PRINCIP) Tj ET Q q 0 0 0 rg BT 167.02 644.55 Td (AL) Tj ET Q q 0 0 0 rg BT 181.69 644.55 Td ( ) Tj ET Q q 0 0 0 rg BT 183.83 644.55 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 238.63 644.55 Td (ANT) Tj ET Q q 0 0 0 rg BT 261.65 644.55 Td ( FEES ) Tj ET Q q 0 0 0 rg BT 294.06 644.55 Td (AND SER) Tj ET Q q 0 0 0 rg BT 341.65 644.55 Td (VICES) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 619.40 Td (The information required by this Item is incorporated by reference to the information provided under the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 606.15 Td (caption Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 222.29 606.15 Td (Accounting Firm and ) Tj ET Q q 0 0 0 rg BT 318.53 606.15 Td (Audit Committee Preapproval Policy and Procedures ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 593.00 Td (in SM Ener) Tj ET Q q 0 0 0 rg BT 100.52 593.00 Td (gy) Tj ET Q q 0 0 0 rg BT 114.58 593.00 Td (s definitive proxy statement for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.59 593.00 Td (2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 293.59 593.00 Td ( annual meeting of stockholders to be filed within 120 days ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (from ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 74.13 579.75 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.57 579.75 Td (.) 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Tj ET Q BT /F4 11.00 Tf ET q 0 0 0 rg BT 86.00 483.35 Td (\(b\) Exhibits. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.88 483.35 Td (The following exhibits are filed or furnished with or incorporated by reference into this report ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 470.20 Td (on Form 10-K:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 437.57 Td (Exhibit) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 53 425.10673828125005 m 89.04541015625 425.10673828125005 l s q 0 0 0 rg BT 53.00 426.57 Td (Number) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 124 424.15673828125006 m 175.32080078125 424.15673828125006 l s q 0 0 0 rg BT 124.00 425.62 Td (Description) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 406.57 Td (2.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 405.62 Td (Purchase and Sale Agreement dated June 9, 2011, among SM Energy Company, Statoil Texas) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 394.62 Td (Onshore Properties LLC, and Talisman Energy USA Inc. \(filed as Exhibit 2.1 to the registrants) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 383.62 Td (Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 and incorporated herein by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 372.62 Td (reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 357.57 Td (2.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 356.62 Td (Acquisition and Development Agreement dated June 29, 2011 between SM Energy Company and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 345.62 Td (Mitsui E&P Texas LP \(filed as Exhibit 2.2 to the registrants Quarterly Report on Form 10-Q for) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 334.62 Td (the quarter ended June 30, 2011 and incorporated herein by reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 319.57 Td (2.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 318.62 Td (First Amendment to Acquisition and Development Agreement dated October 13, 2011 between) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 307.62 Td (SM Energy Company and Mitsui E&P Texas \(filed as Exhibit 2.1 to the registrants Quarterly) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 296.62 Td (Report on Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 285.62 Td (reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 270.57 Td (2.4*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 270.57 Td (Purchase and Sale ) Tj ET Q q 0 0 0 rg BT 206.17 270.57 Td (Agreement dated November 4, 2013, among SM Ener) Tj ET Q q 0 0 0 rg BT 443.94 270.57 Td (gy Company) Tj ET Q q 0 0 0 rg BT 499.75 270.57 Td (, EnerV) Tj ET Q q 0 0 0 rg BT 532.74 270.57 Td (est ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 259.57 Td (Ener) Tj ET Q q 0 0 0 rg BT 144.57 259.57 Td (gy Institutional Fund XIII-A, L.P) Tj ET Q q 0 0 0 rg BT 290.00 259.57 Td (., EnerV) Tj ET Q q 0 0 0 rg BT 325.74 259.57 Td (est Ener) Tj ET Q q 0 0 0 rg BT 361.28 259.57 Td (gy Institutional Fund XIII-WIB, L.P) Tj ET Q q 0 0 0 rg BT 520.16 259.57 Td (., and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 248.57 Td (EnerV) Tj ET Q q 0 0 0 rg BT 151.49 248.57 Td (est Ener) Tj ET Q q 0 0 0 rg BT 187.02 248.57 Td (gy Institutional Fund XIII-WIC, L.P) Tj ET Q q 0 0 0 rg BT 345.90 248.57 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 232.57 Td (3.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 231.62 Td (Restated Certificate of Incorporation of SM Energy Company, as amended through June1,2010) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 220.62 Td (\(filed as Exhibit 3.1 to the registrants Quarterly Report on Form 10-Q for the quarter ended June) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 209.62 Td (30, 2010 and incorporated herein by reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 194.57 Td (3.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 193.62 Td (Amended and Restated By-Laws of SM Energy Company amended effective as of January 1,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 182.62 Td (2013 \(filed as Exhibit 3.1 to the registrants Current Report on Form 8-K filed on January 7,2013,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 171.62 Td (and incorporated herein by reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 156.57 Td (4.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 155.62 Td (Indenture related to the 3.50% Senior Convertible Notes due 2027, dated as of April 4, 2007,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 144.62 Td (between St. Mary Land & Exploration Company and Wells Fargo Bank, National Association, as) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 133.62 Td (trustee \(including the form of 3.50% Senior Convertible Note due 2027\) \(filed as Exhibit 4.1 to) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 122.62 Td (the registrants Current Report on Form 8-K filed on April 4, 2007 and incorporated 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Td (93) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.00 577.52 Td (94) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.00 563.52 Td (96) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 311 0 obj <> endobj 312 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (155) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 731.37 Td (4.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 730.42 Td (Indenture related to the 6.50% Senior Notes due 2021, dated as of November 8, 2011, by and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 719.42 Td (among SM Energy Company, as issuer, and U.S. Bank National Association, as Trustee \(filed as) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 708.42 Td (Exhibit 4.1 to the registrants Current Report on Form 8-K filed on November 10, 2011, and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 697.42 Td (incorporated herein by reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 682.37 Td (4.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 681.42 Td (Indenture related to the 6.50% Senior Notes due 2023, dated June 29, 2012, between SM Energy) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 670.42 Td (Company, as Issuer, and U.S. Bank National Association, as Trustee \(filed as Exhibit 4.1 to the) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 659.42 Td (registrants Current Report on Form 8-K filed on July 3, 2012, and incorporated herein by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 648.42 Td (reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 633.37 Td (4.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 632.42 Td (Indenture related to the 5.0% Senior Notes due 2024, dated May 20, 2013, by and between SM) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 621.42 Td (Energy Company, as issuer, and U.S. Bank National Association, as Trustee \(filed as Exhibit 4.1 to) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 610.42 Td (the registrant's Current Report on Form 8-K filed 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rg BT 53.00 579.37 Td (10.17***) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 578.42 Td (Gas Services Agreement effective as of July 1, 2010 between SM Energy Company and Eagle) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 567.42 Td (Ford Gathering LLC \(filed as Exhibit 10.3 to the registrants Quarterly Report on Form 10-Q for) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 556.42 Td (the quarter ended September 30, 2010 and incorporated herein by reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 541.37 Td (10.18) Tj ET Q /GS0 gs q 5.03 0 0 11.00 77.75 539.00 cm /I27 Do Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 540.42 Td (Cash Bonus Plan, As Amended on July30,2010 \(filed as Exhibit 10.5 to the registrants Quarterly) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 529.42 Td (Report on Form 10-Q for the quarter ended September 30, 2010 and incorporated herein by) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 518.42 Td (reference\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 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Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 201.37 Td (24.1*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 200.92 Td (Power of Attorney) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 185.37 Td (31.1*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 184.42 Td (Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 173.42 Td (2002) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 158.37 Td (31.2*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 157.42 Td (Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 146.42 Td (2002) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 131.37 Td (32.1**) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 130.42 Td (Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 119.42 Td (Sarbanes- Oxley Act of 2002) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 104.37 Td (99.1*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 103.92 Td (Ryder Scott Audit Letter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 88.37 Td (101.INS*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 87.92 Td (XBRL Instance Document) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 72.37 Td (101.SCH*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 71.92 Td (XBRL Schema Document) Tj ET Q endstream endobj 317 0 obj <> endobj 318 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 38.60 Td (158) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 730.37 Td (101.CAL*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 729.92 Td (XBRL Calculation Linkbase Document) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 714.37 Td (101.LAB*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 713.92 Td (XBRL Label Linkbase Document) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 698.37 Td (101.PRE*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 697.92 Td (XBRL Presentation Linkbase Document) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 53.00 682.37 Td (101.DEF*) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 124.00 681.92 Td (XBRL Taxonomy Extension Definition Linkbase Document) Tj ET Q BT /F2 10.00 Tf ET BT /F2 9.00 Tf ET 0 0 0 RG /GS0 gs 0.44 w 0 i [] 0 d 1 J 1 j 3 M 100 665.00029296875 m 230 665.00029296875 l s q 0 0 0 rg BT 100.00 666.20 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 666.20 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 666.20 Td ( ) Tj ET Q q 0 0 0 rg BT 194.00 666.20 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 100.00 655.40 Td (* ) Tj ET Q q 0 0 0 rg BT 122.00 655.40 Td (Filed with this Form 10-K.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 100.00 644.60 Td (** ) Tj ET Q q 0 0 0 rg BT 122.00 644.60 Td (Furnished with this Form 10-K.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 99.00 633.80 Td (*** ) Tj ET Q q 0 0 0 rg BT 122.00 633.80 Td (Certain portions of this exhibit have been redacted and are subject to a confidential treatment order granted by the ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 122.00 623.00 Td (Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 456.43 623.00 Td (Act of 1934.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 99.00 612.20 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 612.20 Td (Confidential ) Tj ET Q q 0 0 0 rg BT 169.08 612.20 Td (T) Tj ET Q q 0 0 0 rg BT 174.26 612.20 Td (reatment has been requested with respect to portions of the exhibit. Such portions have been redacted and ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 122.00 601.40 Td (filed separately with the SEC.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 99.00 590.60 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 590.60 Td (Exhibit constitutes a management contract or compensatory plan or agreement.) Tj ET Q /GS0 gs q 5.03 0 0 11.74 99.00 575.14 cm /I30 Do Q /GS0 gs q 17.97 0 0 11.74 104.03 575.14 cm /I31 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 122.00 577.40 Td (Exhibit constitutes a management contract or compensatory plan or agreement. ) Tj ET Q q 0 0 0 rg BT 411.24 577.40 Td (This document was amended on July 30, ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 122.00 566.60 Td (2010 primarily to reflect the recent change in the name of the registrant from St. Mary Land & Exploration Company to ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 122.00 555.80 Td (SM Ener) Tj ET Q q 0 0 0 rg BT 154.08 555.80 Td (gy Company) Tj ET Q q 0 0 0 rg BT 199.75 555.80 Td (. ) Tj ET Q q 0 0 0 rg BT 206.34 555.80 Td (There were no material changes to the substantive terms and conditions in this document.) 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