| Document and Company Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Document and Company Information [Abstract] | |||
| Entity Registrant Name | Ultra Petroleum Corp. | ||
| Entity Central Index Key | 0001022646 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2009-06-30 | ||
| Amendment Flag | false | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | $15,086,678,210 | ||
| Entity Common Stock, Shares Outstanding (actual number) | 151,440,114 |
| Consolidated Statement of Operations (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Revenues: | ||||
| Natural gas sales | $115,079 | $277,446 | $273,908 | $526,568 |
| Oil sales | 15,262 | 30,794 | 24,386 | 52,809 |
| Total operating revenues | 130,341 | 308,240 | 298,294 | 579,377 |
| Expenses: | ||||
| Lease operating expenses | 10,144 | 8,562 | 20,387 | 19,299 |
| Production taxes | 12,738 | 35,776 | 30,089 | 66,711 |
| Gathering fees | 11,573 | 8,766 | 22,364 | 18,764 |
| Transportation charges | 13,185 | 12,013 | 26,540 | 21,671 |
| Depletion and depreciation | 44,974 | 42,780 | 105,635 | 85,030 |
| Write-down of proved oil and gas properties | 0 | 0 | 1,037,000 | 0 |
| General and administrative | 5,650 | 4,449 | 10,224 | 8,794 |
| Total operating expenses | 98,264 | 112,346 | 1,252,239 | 220,269 |
| Operating income (loss) | 32,077 | 195,894 | (953,945) | 359,108 |
| Other income (expense), net: | ||||
| Interest expense | (9,897) | (4,543) | (17,195) | (9,814) |
| (Loss) gain on commodity derivatives | (60,698) | (11,596) | 145,730 | (39,269) |
| Other (expense) income, net | (505) | 609 | (3,117) | 692 |
| Total other (expense) income, net | (71,100) | (15,530) | 125,418 | (48,391) |
| (Loss) income before income tax (benefit) provision | (39,023) | 180,364 | (828,527) | 310,717 |
| Income tax (benefit) provision | (13,497) | 63,489 | (290,413) | 110,510 |
| Net (loss) income | ($25,526) | $116,875 | ($538,114) | $200,207 |
| Net (loss) income per common share - basic | -0.17 | 0.76 | -3.56 | 1.31 |
| Net (loss) income per common share - fully diluted | -0.17 | 0.74 | -3.56 | 1.27 |
| Weighted average common shares outstanding - basic | 151,331 | 153,061 | 151,285 | 152,781 |
| Weighted average common shares outstanding - fully diluted | 151,331 | 157,818 | 151,285 | 157,905 |
| Consolidated Balance Sheets (USD $) | ||
| In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
| Current assets: | ||
| Cash and cash equivalents | $9,299 | $14,157 |
| Restricted cash | 1,682 | 2,727 |
| Accounts receivable | 117,235 | 126,710 |
| Derivative assets | 125,652 | 39,939 |
| Inventory | 6,575 | 8,522 |
| Prepaid drilling costs and other current assets | 2,778 | 6,163 |
| Total current assets | 263,221 | 198,218 |
| Oil and gas properties, net, using the full cost method of accounting: | ||
| Proved | 1,594,200 | 2,294,982 |
| Unproved properties not being amortized | 0 | 55,544 |
| Property, plant and equipment | 5,972 | 5,770 |
| Long-term derivative assets | 2,441 | 0 |
| Deferred financing costs and other | 7,656 | 3,648 |
| Total assets | 1,873,490 | 2,558,162 |
| Current liabilities: | ||
| Accounts payable and accrued liabilities | 106,374 | 163,902 |
| Production taxes payable | 73,069 | 61,416 |
| Derivative liabilities | 3,665 | 1,712 |
| Capital cost accrual | 60,759 | 120,543 |
| Total current liabilities | 243,867 | 347,573 |
| Long-term debt | 764,000 | 570,000 |
| Deferred income tax liability | 206,358 | 503,597 |
| Long-term derivative liabilities | 72,592 | 0 |
| Other long-term obligations | 29,415 | 46,206 |
| Shareholders' equity: | ||
| Common stock - no par value; authorized - unlimited; issued and outstanding - 151,440,114 and 151,232,545, respectively | 356,535 | 346,832 |
| Treasury stock | (31,075) | (45,740) |
| Retained earnings | 224,373 | 774,117 |
| Accumulated other comprehensive income | 7,425 | 15,577 |
| Total shareholders' equity | 557,258 | 1,090,786 |
| Total liabilities and shareholders' equity | $1,873,490 | $2,558,162 |
| Consolidated Balance Sheets (Parenthetical) (USD $) | ||
| Jun. 30, 2009
| Dec. 31, 2008
| |
| Common stock, no par value | 0 | 0 |
| Common stock, shares authorized | unlimited | unlimited |
| Common stock, shares issued | 151,440,114 | 151,232,545 |
| Common stock, shares outstanding | 151,440,114 | 151,232,545 |
| Consolidated Statements of Cash Flows (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Operating activities: | ||
| Net (loss) income for the period | ($538,114) | $200,207 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Income from discontinued operations, net of tax provision of $225 | 0 | (415) |
| Depletion and depreciation | 105,635 | 85,030 |
| Write-down of proved oil and gas properties | 1,037,000 | 0 |
| Deferred income taxes | (290,436) | 110,704 |
| Unrealized (gain) loss on commodity derivatives | (26,169) | 25,150 |
| Excess tax benefit from stock based compensation | (2,394) | (62,627) |
| Stock compensation | 4,819 | 2,755 |
| Other | 720 | 189 |
| Net changes in non-cash working capital: | ||
| Restricted cash | 1,045 | (34) |
| Accounts receivable | 9,475 | (41,560) |
| Prepaid expenses and other | 3,876 | (1,702) |
| Other non-current assets | (2,868) | 0 |
| Accounts payable and accrued liabilities | (45,519) | 76,058 |
| Other long-term obligations | (16,670) | 20,424 |
| Current taxes payable | 0 | (10,839) |
| Net cash provided by operating activities | 240,400 | 403,340 |
| Investing activities: | ||
| Oil and gas property expenditures | (382,366) | (409,089) |
| Post-closing adjustments on sale of subsidiary | 0 | 640 |
| Change in capital cost accrual | (59,784) | 29,639 |
| Inventory | 1,947 | 6,600 |
| Other | (704) | 0 |
| Purchase of capital assets | (667) | (461) |
| Net cash used in investing activities | (441,574) | (372,671) |
| Financing activities: | ||
| Borrowings on long-term debt | 676,000 | 332,000 |
| Payments on long-term debt | (482,000) | (322,000) |
| Deferred financing costs | (1,283) | (1,580) |
| Repurchased shares | 0 | (68,635) |
| Excess tax benefit from stock based compensation | 2,394 | 62,627 |
| Proceeds from exercise of options | 1,205 | 16,631 |
| Net cash provided by financing activities | 196,316 | 19,043 |
| (Decrease)/increase in cash during the period | (4,858) | 49,712 |
| Cash and cash equivalents, beginning of period | 14,157 | 10,632 |
| Cash and cash equivalents, end of period | $9,299 | $60,344 |
| Consolidated Statements of Cash Flows (Parenthetical) (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Provision for tax on discontinued operations | $0 | $225 |
| Description of the Business | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Description Of The Business [Abstract] | |
| DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESS: Ultra Petroleum Corp. (the Company) is an independent oil and gas company engaged in the acquisition, exploration, development, and production of oil and gas properties. The Company is incorporated under the laws of the Yukon Territory, Canada. The Companys principal business activities are conducted in the Green River Basin of Southwest Wyoming. |
| Significant Accounting Policies | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Significant Accounting Policies [Abstract] | |
| SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES: The accompanying financial statements, other than the balance sheet data as of December31, 2008, are unaudited and were prepared from the Companys records. Balance sheet data as of December31, 2008 was derived from the Companys audited financial statements, but does not include all disclosures required by U.S.Generally Accepted Accounting Principles (GAAP). The Companys management believes that these financial statements include all adjustments necessary for a fair presentation of the Companys financial position and results of operations. All adjustments are of a normal and recurring nature unless specifically noted. The Company prepared these statements on a basis consistent with the Companys annual audited statements and RegulationS-X. RegulationS-X allows the Company to omit some of the footnote and policy disclosures required by generally accepted accounting principles and normally included in annual reports on Form10-K. You should read these interim financial statements together with the financial statements, summary of significant accounting policies and notes to the Companys most recent annual report on Form10-K. (a)Basis of presentation and principles of consolidation:The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries UP Energy Corporation and Ultra Resources, Inc. The Company presents its financial statements in accordance with GAAP. All inter-company transactions and balances have been eliminated upon consolidation. (b)Cash and cash equivalents:We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. (c)Restricted cash:Restricted cash represents cash received by the Company from production sold where the final division of ownership of the production is unknown or in dispute. Wyoming law requires that these funds be held in a federally insured bank in Wyoming. (d)Capital assets other than oil and gas properties:Capital assets are recorded at cost and depreciated using the declining-balance method based on a seven-year useful life. (e)Oil and natural gas properties:The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (SEC). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. This includes any internal costs that are directly related to exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. The carrying amount of oil and natural gas properties also includes estimated asset retirement costs recorded based on the fair value of the asset retirement obligation when incurred. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. The sum of net cap |
| Oil and Gas Properties | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Oil and Gas Properties [Abstract] | |
| OIL AND GAS PROPERTIES | 2. OIL AND GAS PROPERTIES: June30, December31, 2009 2008 Developed Properties: Acquisition, equipment, exploration, drilling and environmental costs $ 3,249,934 $ 2,809,082 Less accumulated depletion, depreciation and amortization (1,655,734 ) (514,100 ) 1,594,200 2,294,982 Unproven Properties*: Acquisition and exploration costs not being amortized 55,544 $ 1,594,200 $ 2,350,526 * The Company holds interests in unproven properties in which leasehold costs and seismic costs related to these interests of $55.5million were excluded from the amortization base at December31, 2008. Exclusion from amortization is permitted in order to avoid distortion in the amortization per unit that could result if the cost of unevaluated properties with no proved reserves attributed to them was included in the amortization base. Effective January1, 2009, the Company has determined that these costs are not significant enough to warrant exclusion from the amortization base and has begun amortizing the costs on a unit of production basis. During the first quarter of 2009, the Company recorded a $1.0billion ($673.0million net of tax) non-cash write-down of the carrying value of the Companys proved oil and gas properties as of March31, 2009, as a result of the ceiling test limitations, which is reflected as write-down of oil and gas properties in the accompanying consolidated statements of operations. The ceiling test was calculated based on March31, 2009wellhead prices of $2.47 per Mcf for natural gas and $33.91 per barrel for condensate. |
| Long Term Liabilities | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Long-Term Liabilities [Abstract] | |
| LONG-TERM LIABILITIES | 3. LONG-TERM LIABILITIES: June30, December31, 2009 2008 Bank indebtedness $ 229,000 $ 270,000 Senior notes 535,000 300,000 Other long-term obligations 29,415 46,206 $ 793,415 $ 616,206 Bank indebtedness:The Company (through its subsidiary) is a party to a revolving credit facility with a syndicate of banks led by JP Morgan Chase Bank, N.A. which matures in April 2012. This agreement provides an initial loan commitment of $500.0million and may be increased to a maximum aggregate amount of $750.0million at the request of the Company. Each bank has the right, but not the obligation, to increase the amount of its commitment as requested by the Company. In the event the existing banks increase their commitment to an amount less than the requested commitment amount, then it would be necessary to add new financial institutions to the credit facility. Loans under the credit facility are unsecured and bear interest, at our option, based on (A)a rate per annum equal to the higher of the prime rate or the weighted average fed funds rate on overnight transactions during the preceding business day plus 50basis points, or (B)a base Eurodollar rate, substantially equal to the LIBOR rate, plus a margin based on a grid of our consolidated leverage ratio (100.0basis points per annum as of June30, 2009). At June30, 2009, we had $229.0million in outstanding borrowings and $271.0million of available borrowing capacity under our credit facility. The facility has restrictive covenants that include the maintenance of a ratio of consolidated funded debt to EBITDAX (earnings before interest, taxes, DDA and exploration expense) not to exceed 31/2 times; and as long as our debt rating is below investment grade, the maintenance of an annual ratio of the net present value of our oil and gas properties to total funded debt of at least 1.75 to 1.00. At June30, 2009, we were in compliance with all of our debt covenants under our credit facility. Senior Notes, due 2016 and 2019:On March5, 2009, our wholly-owned subsidiary, Ultra Resources, Inc., issued $235.0million Senior Notes (the 2009 Senior Notes) pursuant to a Master Note Purchase Agreement dated March6, 2008 as supplemented by a First Supplement thereto dated March5, 2009 between the Company and the purchasers of the 2009 Senior Notes. The 2009 Senior Notes rank pari passu with the Companys bank credit facility. Payment of the 2009 Senior Notes is guaranteed by Ultra Petroleum Corp. and UP Energy Corporation. Of the 2009 Senior Notes, $173.0million are 7.77%senior notes due March1, 2019 and $62.0million are 7.31%senior notes due March1, 2016. Proceeds from the sale of the 2009 Senior Notes were used to repay bank debt, but did not reduce the borrowings available to us under the revolving credit facility. The 2009 Senior Notes are pre-payable in whole or in part at any time. The 2009 Senior Notes are subject to representations, warranties, covenants and events of default customa |
| Share Based Compensation | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Stock Based Compensation [Abstract] | |
| SHARE BASED COMPENSATION | 4. SHARE BASED COMPENSATION: Valuation and Expense Information under SFAS123R The following table summarizes share-based compensation expense for the three and six months ended June30, 2009 and 2008: Six Months Three Months Ended June30, Ended June30, 2009 2008 2009 2008 Total cost of share-based payment plans $ 4,690 $ 3,121 $ 8,432 $ 4,866 Amounts capitalized in fixed assets $ 1,996 $ 1,220 $ 3,613 $ 2,111 Amounts charged against income, before income tax benefit $ 2,694 $ 1,901 $ 4,819 $ 2,755 Amount of related income tax benefit recognized in income $ 945 $ 667 $ 1,690 $ 967 The fair value of each share option award is estimated on the date of grant using a Black-Scholes pricing. The Companys employee stock options have various restrictions including vesting provisions and restrictions on transfers and hedging, among others, and are often exercised prior to their contractual maturity. Expected volatilities used in the fair value estimates are based on historical volatility of the Companys stock. The Company uses historical data to estimate share option exercises, expected term and employee departure behavior used in the Black-Scholes pricing model. Groups of employees (executives and non-executives) that have similar historical behavior are considered separately for purposes of determining the expected term used to estimate fair value. The assumptions utilized result from differing pre- and post-vesting behaviors among executive and non-executive groups. The risk-free rate for periods within the contractual term of the share option is based on the U.S.Treasury yield curve in effect at the time of grant. There were no stock options granted during the six months ended June30, 2009. Changes in Stock Options and Stock Options Outstanding The following table summarizes the changes in stock options for the six months ended June30, 2009 and the year ended December31, 2008: Weighted Average Number of Exercise Price Options (US$) Balance, December31, 2007 7,589 $ 0.25 to $67.73 Granted 299 $ 51.14 to $98.87 Forfeited (80 ) $ 51.60 to $85.05 Exercised (3,595 ) $ 0.25 to $67.73 Balance, December31, 2008 4,213 $ 0.25 to $98.87 Granted Forfeited (43 ) $ 51.60 to $78.55 Exercised (163 ) $ 2.04 to $33.57 Balance, June30, 2009 4,007 $ 0.25 to $98.87 PERFORMANCE SHARE PLANS: Long Term Incentive Plans.Each year since 2005, the Company has adopted a Long Term Incentive Plan (LTIP) in order to further align the inte |
| Income Taxes | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Income Taxes [Abstract] | |
| INCOME TAXES | 5. INCOME TAXES: The following table summarizes the components of income tax (benefit) provision for the three and six months ended June30, 2009 and 2008: For the Three Months For the Six Months Ended June30, Ended June30, 2009 2008 2009 2008 $ Rate $ Rate $ Rate $ Rate Current State tax payments $ 0.0 % $ 6 0.0 % $ 23 0.0 % $ 16 0.0 % Current Federal tax credit 0.0 % 0.0 % 0.0 % (209 ) (0.1 )% Deferred tax (benefit) expense ( 13,497 ) (34.6 )% 63,483 35.3 % (290,436 ) (35.1 )% 110,703 35.7 % Income tax (benefit) provision $ ( 13,497 ) (34.6 )% $ 63,489 35.3 % $ (290,413 ) (35.1 )% $ 110,510 35.6 % |
| Derivative Financial Instruments | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Derivative Financial Instruments [Abstract] | |
| DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE FINANCIAL INSTRUMENTS: The Companys major market risk exposure is in the pricing applicable to its natural gas and oil production. Realized pricing is currently driven primarily by the prevailing price for the Companys Wyoming natural gas production. Historically, prices received for natural gas production have been volatile and unpredictable. Pricing volatility is expected to continue. Realized natural gas prices are derived from the financial statements which include the effects of realized gains and losses on commodity derivatives. The Company relies on derivative instruments to manage its exposure to commodity price risk and to provide a level of certainty in the Companys forward cash flows supporting the Companys capital investment program. The Company enters into fixed price to index price swap agreements in order to mitigate its commodity price exposure on a portion of its natural gas production. The natural gas reference prices of these commodity derivative contracts are typically referenced to natural gas index prices as published by independent third parties such as Inside FERC Gas Market Report. The Company also utilizes fixed price forward gas sales to manage its commodity price exposure. These fixed price forward gas sales are considered normal sales in the ordinary course of business and outside the scope of SFASNo.133. Under SFASNo.133, all derivative instruments are recorded on the balance sheet at fair value. Changes in the derivatives fair value are recognized currently in earnings unless specific hedge accounting criteria are met. For qualifying cash flow hedges, the unrealized gain or loss on the derivative is deferred in accumulated other comprehensive income (loss) to the extent the hedge is effective. Gains and losses on hedging instruments included in accumulated other comprehensive income (loss) are reclassified to oil and natural gas sales revenue in the period that the related production is delivered. Derivative contracts that do not qualify for hedge accounting treatment are recorded as derivative assets and liabilities at market value in the Consolidated Balance Sheets, and the associated unrealized gains and losses are recorded as current expense or income in the Consolidated Statements of Operations. Unrealized gains or losses on commodity derivatives represents the non-cash change in the fair value of these derivative instruments and does not impact operating cash flows on the Consolidated Statements of Cash Flows. Effective November3, 2008, the Company changed its method of accounting for natural gas commodity derivatives to reflect unrealized gains and losses on commodity derivative contracts in the income statement rather than on the balance sheet. The net gain or loss in accumulated other comprehensive income at November3, 2008 will remain on the balance sheet and the respective months gains or losses will continue to be reclassified from accumulated other comprehensive income to earnings as the counterparty settlements affect earnings (January through December 2009). It is still considered probable that the original forecasted transactions will occur; there |
| Fair Value Measurements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Fair Value Measurements [Abstract] | |
| FAIR VALUE MEASUREMENTS | 7. FAIR VALUE MEASUREMENTS: On September15, 2006, the FASB issued SFASNo.157, Fair Value Measurement. We adopted SFASNo.157 effective January1, 2008. SFASNo.157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three level hierarchy for measuring fair value. The statement requires fair value measurements be classified and disclosed in one of the following categories: Level1: Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date. Level2: Inputs other than quoted prices included within Level1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level2 include non-exchange traded derivatives such as over-the-counter forwards and swaps. Level3: Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. The valuation assumptions utilized to measure the fair value of the Companys commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs). The following table presents for each hierarchy level our assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis, as of June30, 2009. The company has no derivative instruments which qualify for cash flow hedge accounting. Level 1 Level 2 Level 3 Total Assets: Current derivative asset $ $ 125,652 $ $ 125,652 Non-current derivative asset $ $ 2,441 $ $ 2,441 Liabilities: Current derivative liability $ $ 3,665 $ $ 3,665 Non-current derivative liability $ $ 72,592 $ $ 72,592 In consideration of counterparty credit risk, the Company assessed the possibility of whether each counterparty to the derivative would default by failing to make any contractually required payments as scheduled in the derivative instrument in determining the fair value. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. For those non-financial assets and liabilities measured or disclosed at fa |
| Legal Proceedings | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Legal Proceedings [Abstract] | |
| LEGAL PROCEEDINGS | 8. LEGAL PROCEEDINGS: The Company is currently involved in various routine disputes and allegations incidental to its business operations. While it is not possible to determine the ultimate disposition of these matters, the Company believes that the resolution of all such pending or threatened litigation is not likely to have a material adverse effect on the Companys financial position or results of operations. |
| Subsequent Events | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENT | 9. SUBSEQUENT EVENTS: In May 2009, the FASB issued SFASNo.165, Subsequent Events (SFASNo.165), setting forth principles and requirements to be applied to the accounting for and disclosure of subsequent events. The statement sets forth the period after the balance sheet date during which management shall evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which events or transactions occurring after the balance sheet date shall be recognized in the financial statements and the required disclosures about events or transactions that occurred after the balance sheet date. SFASNo.165 is effective for interim or annual reporting periods ending after June15, 2009, and shall be applied prospectively. Accordingly, the Company has adopted this pronouncement for the quarter ended June30, 2009. The Company has evaluated the period subsequent to June30, 2009 and through August4, 2009 (the date the financial statements were available to be issued) for events that did not exist at the balance sheet date but arose after that date and determined that no subsequent events arose that should be disclosed in order to keep the financial statements from being misleading. |
