Coterra Energy (CTRA) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Millions, except Share data	9 Months Ended Sep. 30, 2009	Oct. 20, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	CABOT OIL & GAS CORP
Entity Central Index Key	0000858470
Document Type	10-Q
Document Period End Date	2009-09-30
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			$6,999
Entity Common Stock, Shares Outstanding (actual number)		103,654,113

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
OPERATING REVENUES
Natural Gas Production	$177,807	$200,279	$538,542	$569,527
Brokered Natural Gas	9,032	23,855	54,117	86,663
Crude Oil and Condensate	19,574	20,002	50,026	55,089
Other	608	684	3,099	2,046
Total Operating Revenues	207,021	244,820	645,784	713,325
OPERATING EXPENSES
Brokered Natural Gas Cost	7,786	20,891	48,219	75,321
Direct Operations-Field and Pipeline	23,012	24,974	71,564	65,101
Exploration	14,395	6,413	31,258	18,764
Depreciation, Depletion and Amortization	54,886	48,895	165,779	132,893
Impairment of Unproved Properties	7,151	8,512	23,188	19,182
General and Administrative	14,921	(209)	49,103	60,841
Taxes Other Than Income	10,719	20,627	34,531	56,749
Total Operating Expenses	132,870	130,103	423,642	428,851
Gain / (Loss) on Sale of Assets	572	0	(3,283)	401
INCOME FROM OPERATIONS	74,723	114,717	218,859	284,875
Interest Expense and Other	14,857	10,486	44,129	22,684
Income Before Income Taxes	59,866	104,231	174,730	262,191
Income Tax Expense	20,969	37,241	62,751	94,601
NET INCOME	$38,897	$66,990	$111,979	$167,590
Basic Earnings Per Share	0.38	0.65	1.08	1.68
Diluted Earnings Per Share	0.37	0.64	1.07	1.66
Weighted-Average Common Shares Outstanding	103,647	103,351	103,603	99,858
Diluted Common Shares	104,917	104,495	104,583	100,901

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Current Assets
Cash and Cash Equivalents	$35,670	$28,101
Accounts Receivable, Net	52,613	109,087
Income Taxes Receivable	33,103	526
Inventories	36,769	45,677
Current Derivative Contracts	166,787	264,660
Other Current Assets	10,065	12,500
Total Current Assets	335,007	460,551
Properties and Equipment, Net (Successful Efforts Method)	3,184,305	3,135,828
Long-Term Derivative Contracts	24,349	90,542
Investment in Equity Securites	20,636	0
Other Assets	24,757	14,743
Total Assets	3,589,054	3,701,664
Current Liabilities
Accounts Payable	115,940	222,985
Current Portion of Long-Term Debt	20,000	35,857
Deferred Income Taxes	58,862	63,985
Income Taxes Payable	6,649	5,535
Accrued Liabilities	45,721	50,551
Total Current Liabilities	247,172	378,913
Long-Term Liability for Pension and Postretirement Benefits	49,755	54,714
Long-Term Debt	790,000	831,143
Deferred Income Taxes	623,946	599,106
Other Liabilities	54,367	47,226
Total Liabilities	1,765,240	1,911,102
Stockholders' Equity
Common Stock: Authorized - 240,000,000 Shares of $0.10 Par Value in 2009 and 120,000,000 Shares of $0.10 Par Value in 2008 Issued - 103,856,313 Shares and 103,561,268 Shares in 2009 and 2008, respectively	10,386	10,356
Additional Paid-in Capital	699,971	675,568
Retained Earnings	1,024,217	921,561
Accumulated Other Comprehensive Income	92,589	186,426
Less Treasury Stock, at Cost: 202,200 Shares in 2009 and 2008, respectively	(3,349)	(3,349)
Total Stockholders' Equity	1,823,814	1,790,562
Total Liabilities and Stockholders' Equity	$3,589,054	$3,701,664

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheet (Parenthetical) (Unaudited) (USD $)
	Sep. 30, 2009	Dec. 31, 2008
Stockholders' Equity
Common shares, par value	0.1	0.1
Common Stock, Shares Authorized (actual number)	240,000,000	120,000,000
Common Stock, Shares Issued (actual number)	103,856,313	103,561,268
Treasury Stock, Shares (actual number)	202,200	202,200

2_Condensed Consolidated Statem

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$111,979	$167,590
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization	165,779	132,893
Impairment of Unproved Properties	23,188	19,182
Deferred Income Tax Expense	74,773	96,459
(Gain) / Loss on Sale of Assets	3,283	(401)
Exploration Expense	31,258	18,764
Unrealized Loss on Derivatives	418	1,649
Stock-Based Compensation Expense and Other	19,894	10,371
Changes in Assets and Liabilities:
Accounts Receivable, Net	56,474	(9,869)
Income Taxes Receivable	(19,406)	1,650
Inventories	8,908	(24,799)
Other Current Assets	2,435	7,420
Other Assets	(173)	5,694
Accounts Payable and Accrued Liabilities	(49,097)	11,054
Income Taxes Payable	1,572	(942)
Other Liabilities	(1,070)	(976)
Stock-Based Compensation Tax Benefit	(13,085)	(11,011)
Net Cash Provided by Operating Activities	417,130	424,728
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures	(394,525)	(558,931)
Acquisitions	(394)	(605,408)
Proceeds from Sale of Assets	80,180	1,150
Exploration Expense	(31,258)	(18,764)
Net Cash Used in Investing Activities	(345,997)	(1,181,953)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from Debt	90,000	735,000
Repayments of Debt	(147,000)	(265,000)
Net Proceeds from Sale of Common Stock	83	316,229
Stock-Based Compensation Tax Benefit	13,085	11,011
Dividends Paid	(9,323)	(8,973)
Capitalized Debt Issuance Costs	(10,409)	(2,166)
Net Cash (Used in) / Provided by Financing Activities	(63,564)	786,101
Net Increase in Cash and Cash Equivalents	7,569	28,876
Cash and Cash Equivalents, Beginning of Period	28,101	18,498
Cash and Cash Equivalents, End of Period	$35,670	$47,374

Financial Statement Presentatio

Financial Statement Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Financial Statement Presentation [Abstract]
FINANCIAL STATEMENT PRESENTATION	1. FINANCIAL STATEMENT PRESENTATION During interim periods, Cabot Oil Gas Corporation (the Company) follows the same accounting policies used in its 2008 Annual Report to Stockholders and its Annual Report on Form 10-K for the year ended December31, 2008 (Form 10-K) filed with the Securities and Exchange Commission (SEC). The interim financial statements should be read in conjunction with the notes to the financial statements and information presented in the Form 10-K. In managements opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. Subsequent events have been evaluated through October29, 2009, which is also the date that the financial statements were issued. Certain prior year amounts have been reclassified to reflect changes in presenting the geographic areas for which the Company conducts its operations. These areas consist of the North (comprised of the East and Rocky Mountain areas), South (comprised of the Gulf Coast and Anadarko areas) and Canada. In previous periods, the Company presented the geographic areas as East, Gulf Coast, West and Canada. With respect to the unaudited financial information of the Company as of September30, 2009 and for the three and nine month periods ended September30, 2009 and 2008, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated October29, 2009 appearing herein states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a report or a part of the registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections7 and 11 of the Act. Recently Adopted Accounting Standards In July2009, the Financial Accounting Standards Board (FASB)issued Accounting Standards Codification (ASC)105, Generally Accepted Accounting Principles, establishing the accounting standards codification and the hierarchy of generally accepted accounting principles (GAAP)as the sole source of authoritative non-governmental U.S. GAAP. The Codification was not intended to change U.S. GAAP; however, references to various accounting pronouncements and literature will now differ from what was previously being used in practice. Authoritative literature is now referenced by topic rather than by type of standard. As of July1, 2009, the FASB no longer issues Statements, Interpretations, Staff Positions or EITF Abstracts. The FASB now communicates new accounting standards by issuing an Accounting Standards Upda

Properties and Equipment, Net

Properties and Equipment, Net
	9 Months Ended Sep. 30, 2009 USD / shares
Properties and Equipment, Net [Abstract]
PROPERTIES AND EQUIPMENT, NET	2. PROPERTIES AND EQUIPMENT, NET Properties and equipment, net are comprised of the following: September 30, December 31, (In thousands) 2009 2008 Unproved Oil and Gas Properties $ 301,992 $ 315,782 Proved Oil and Gas Properties 4,010,954 3,813,014 Gathering and Pipeline Systems 277,120 274,192 Land, Building and Other Equipment 72,372 68,606 4,662,438 4,471,594 Accumulated Depreciation, Depletion and Amortization (1,478,133 ) (1,335,766 ) $ 3,184,305 $ 3,135,828 At September30, 2009, the Company did not have any projects that had exploratory well costs that were capitalized for a period of greater than one year after drilling. In April2009, the Company sold its Canadian properties to a private Canadian company. Total consideration received from the sale was $84.4million, consisting of $64.3million in cash and $20.1million in common stock of the Canadian company (included on the Condensed Consolidated Balance Sheet as Investment in Equity Securities at September30, 2009). The common stock investment is being accounted for using the cost method. The total net book value of the Canadian properties sold was $95.0million. At December31, 2008, the Company recorded 40.4 Bcfe of proved reserves (two percent of total proved reserves) related to these properties. The Company recognized a $3.9million aggregate loss on sale of assets in the first nine months of 2009. During 2009, the Company recorded a $10.5million (net of taxes of $6.1million) loss on sale of assets, primarily due to the sale of the Canadian properties described above. In addition, the Company recognized a $12.7million gain on sale of assets during the first nine months of 2009 primarily related to the first quarter 2009 sale of Thornwood properties in the East. Cash proceeds of $11.4million were received from the sale of the Thornwood properties.

Additional Balance Sheet Inform

Additional Balance Sheet Information
	9 Months Ended Sep. 30, 2009 USD / shares
Additional Balance Sheet Information [Abstract]
ADDITIONAL BALANCE SHEET INFORMATION	3. ADDITIONAL BALANCE SHEET INFORMATION Certain balance sheet amounts are comprised of the following: September 30, December 31, (In thousands) 2009 2008 ACCOUNTS RECEIVABLE, NET Trade Accounts $ 44,987 $ 94,164 Joint Interest Accounts 9,522 16,454 Other Accounts 1,813 1,987 56,322 112,605 Allowance for Doubtful Accounts (3,709 ) (3,518 ) $ 52,613 $ 109,087 INVENTORIES Natural Gas in Storage $ 20,022 $ 27,478 Tubular Goods and Well Equipment 16,298 16,439 Pipeline Imbalances 449 1,760 $ 36,769 $ 45,677 OTHER CURRENT ASSETS Drilling Advances $ 2,773 $ 4,869 Prepaid Balances 7,292 7,631 $ 10,065 $ 12,500 OTHER ASSETS Rabbi Trust Deferred Compensation Plan $ 10,644 $ 8,651 Deferred Charges for Credit Agreements 12,694 4,847 Other Accounts 1,419 1,245 $ 24,757 $ 14,743 ACCOUNTS PAYABLE Trade Accounts $ 15,078 $ 44,088 Natural Gas Purchases 4,427 5,346 Royalty and Other Owners 31,409 42,349 Capital Costs 53,425 117,029 Taxes Other Than Income 3,403 5,617 Drilling Advances 1,089 1,289 Wellhead Gas Imbalances 4,096 3,354 Other Accounts 3,013 3,913 $ 115,940 $ 222,985 ACCRUED LIABILITIES Employee Benefits $ 7,025 $ 10,807 Current Liability for Pension Benefits 245 245 Current Liability for Postretirement Benefits 642 642 Taxes Other Than Income 23,893 16,582 Interest Payable 11,665 20,684 Other Accounts 2,251 1,591 $ 45,721 $ 50,551 OTHER LIABILITIES Rabbi Trust Deferred Compensation Plan $ 18,824 $ 14,531 Accrued Plugging and Abandonment Liability 29,229 27,978 Derivative Contracts 757 Other Accounts 5,557 4,717 $ 54,367 $ 47,226

Long Term Debt

Long Term Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Long-Term Debt [Abstract]
LONG-TERM DEBT	4. LONG-TERM DEBT The Companys debt consisted of the following: September 30, December 31, (In thousands) 2009 2008 Long-Term Debt 7.19% Notes $ 20,000 $ 20,000 7.33% Weighted-Average Fixed Rate Notes 170,000 170,000 6.51% Weighted-Average Fixed Rate Notes 425,000 425,000 9.78% Notes 67,000 67,000 Credit Facility 128,000 185,000 Current Maturities 7.19% Notes (20,000 ) (20,000 ) Credit Facility (15,857 ) Total Current Maturities (20,000 ) (35,857 ) Long-Term Debt, excluding Current Maturities $ 790,000 $ 831,143 In April2009, the Company entered into a new revolving credit facility and terminated its prior credit facility. The credit facility provides for an available credit line of $500million and contains an accordion feature allowing the Company to increase the available credit line to $600 million, if any one or more of the existing banks or new banks agree to provide such increased commitment amount. The term of the facility expires in April2012. In conjunction with entering into the new credit facility, the Company incurred $10.4million of debt issuance costs which were capitalized and will be amortized over the term of the credit facility. Additionally, $1.5million in unamortized costs associated with the prior credit facility will be amortized over the term of the new credit facility in accordance with ASC 470-50, Debt-Modifications and Extinguishments. The credit facility is unsecured. The available credit line is subject to adjustment from time to time on the basis of (1)the projected present value (as determined by the banks based on the Companys reserve reports and engineering reports) of estimated future net cash flows from certain proved oil and gas reserves and certain other assets of the Company (the Borrowing Base) and (2) the outstanding principal balance of the Companys senior notes. Under the credit facility, the Borrowing Base is initially set at $1.35billion, to be periodically redetermined as described above. While the Company does not expect a reduction in the available credit line, in the event that it is adjusted below the outstanding level of borrowings in connection with scheduled redetermination or due to a termination of hedge positions, the Company has a period of six months to reduce its outstanding debt in equal monthly installments to the adjusted credit line available. Interest rates under the credit facility are based on Euro-Dollars (LIBOR)or Base Rate (Prime) indications, plus a margin. These associated margins increase if the total indebtedness under the credit facility and the Companys senior notes is greater than 25%, greater than 50%, greater than 75% or greater than 90% of the Borrowing Base, as shown below: Debt Percentage 25% 25% 50% 50% 75% 75% 90% 90% Eurodollar Margin 2.000 % 2.250 % 2.500 % 2.750 % 3.000 % Base Rate Margin 1.125 % 1.375 % 1.625 %

Earnings Per Common Share

Earnings Per Common Share
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings Per Common Share [Abstract]
EARNINGS PER COMMON SHARE	5. EARNINGS PER COMMON SHARE Effective January1, 2009, the Company adopted amendments that the FASB made to ASC 260, Earnings Per Share, regarding determining whether instruments granted in share-based payment transactions are participating securities. Under these amendments, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether they are paid or unpaid, are considered participating securities and should be included in the computation of earnings per share pursuant to the two-class method. These amendments became effective for financial statements issued for fiscal years beginning after December15, 2008, and interim periods within those years. In addition, all prior period earnings per share data presented are required to be retrospectively adjusted. Upon adoption, basic earnings per share (EPS)is required to be computed using the two-class method prescribed in ASC 260. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. ASC 260 defines participating securities as securities that may participate in dividends with common stocks according to a predetermined formula. ASC 260 provides that its provisions under the amendments discussed above need not be applied to immaterial items. The Company has concluded that there are no material items to consider for purposes of its shares outstanding and EPS calculations, and the treasury stock method will continue to be used, as described below. Basic EPS is computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding for the period (the denominator). Diluted EPS is similarly calculated except that the denominator is increased using the treasury stock method to reflect the potential dilution that could occur if stock options and stock awards outstanding at the end of the applicable period were exercised for common stock. The following is a calculation of basic and diluted weighted-average shares outstanding for the three and nine months ended September30, 2009 and 2008: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Weighted-Average Shares Basic 103,647,016 103,351,147 103,603,085 99,857,606 Dilution Effect of Stock Options and Awards at End of Period 1,269,683 1,144,096 980,043 1,043,650 Weighted-Average Shares Diluted 104,916,699 104,495,243 104,583,128 100,901,256 Weighted-Average Stock Awards and Shares Excluded from Diluted Earnings per Share due to the Anti-Dilutive Effect 213,480 233,489 149,524

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES Contingencies The Company is a defendant in various legal proceedings arising in the normal course of its business. All known liabilities are accrued based on managements best estimate of the potential loss. While the outcome and impact of such legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings through settlement or adverse judgment will not have a material adverse effect on the Companys condensed consolidated financial position or cash flow. Operating results, however, could be significantly impacted in the reporting periods in which such matters are resolved. Commitment and Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve involves an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur approximately $1.0million of additional loss with respect to those matters in which reserves have been established. Future changes in the facts and circumstances could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. While the outcome and impact on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings through settlement or adverse judgment will not have a material adverse effect on the condensed consolidated financial position or cash flow of the Company. Operating results, however, could be significantly impacted in the reporting periods in which such matters are resolved. Firm Gas Transportation Agreements The Company has incurred, and will incur over the next several years, demand charges on firm gas transportation agreements. These agreements provide firm transportation capacity rights on pipeline systems in the North region. The remaining terms on these agreements range from less than one year to approximately 20years and require the Company to pay transportation demand charges regardless of the amount of pipeline capacity utilized by the Company. If the Company does not utilize the capacity, it can release it to others, thus reducing its potential liability. The agreements that the Company previously had in place on pipeline systems in Canada were transferred in April2009 to the buyer in connection with the sale of our Canadian properties (discussed in Note 2). As previously disclosed in the Form 10-K, obligations under firm gas transportation agreements in effect at December31, 2008 were $94.7million. As of September30, 2009, obligations under firm gas transportation agreements were $92.2million. For further information on these future obligations, please refer to Note 7 of the Notes to the Consolidated Financial Statements in the Form 10-K. Drilling Rig Commitments In the Form 10-K, the Company disclosed that it had total commitments of $44.3million on eight drilling rigs in the South region that are under contracts with initial terms of greater than one year. The Com

Financial Instruments

Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Financial Instruments [Abstract]
FINANCIAL INSTRUMENTS	7. FINANCIAL INSTRUMENTS Fair Value Measurements In February2008, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosures, which granted a one year deferral (to fiscal years beginning after November15, 2008, and interim periods within those fiscal years) for certain non-financial assets and liabilities measured on a nonrecurring basis to comply with ASC 820. Effective January1, 2009, the Company applied these amendments of ASC 820 discussed above and there was no material impact on the Companys financial statements. In the future, areas that could cause an impact would primarily be limited to asset impairments including long-lived assets, asset retirement obligations and assets acquired and liabilities assumed in a business combination, if any. ASC 820 established a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by GAAP to be measured at fair value. As defined in ASC 820, fair value is 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 (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. ASC 820 establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to level 3 measurements, and accordingly, level 1 measurements should be used whenever possible. For further information regarding the fair value hierarchy and ASC 820, refer to Note 11 of the Notes to the Consolidated Financial Statements in the Form 10-K. In accordance with ASC 820, the Company has classified its assets and liabilities into these levels depending upon the data relied on to determine the fair values. The fair values of the Companys natural gas and crude oil price collars and swaps are designated as Level 3. The following fair value hierarchy table presents information about the Companys assets and liabilities measured at fair value on a recurring basis as of September30, 2009: Quoted Prices in Significant Active Markets for Other Significant Balance as of Identical Assets Observable Unobservable September 30, (In thousands) (Level 1) Inputs (Level 2) Inputs (Level 3) 2009 Assets

Comprehensive Income

Comprehensive Income (Loss)
	9 Months Ended Sep. 30, 2009 USD / shares
Comprehensive Income (Loss) [Abstract]
COMPREHENSIVE INCOME / (LOSS)	8. COMPREHENSIVE INCOME / (LOSS) Comprehensive Income / (Loss) includes Net Income and certain items recorded directly to Stockholders Equity and classified as Accumulated Other Comprehensive Income / (Loss). The following tables illustrate the calculation of Comprehensive Income / (Loss) for the three and nine month periods ended September30, 2009 and 2008: Three Months Ended September 30, (In thousands) 2009 2008 Accumulated Other Comprehensive Income / (Loss) Beginning of Period $ 158,273 $ (182,602 ) Net Income $ 38,897 $ 66,990 Other Comprehensive Income / (Loss), net of taxes: Reclassification Adjustment for Settled Contracts, net of taxes of $40,185 and $(3,758), respectively (67,843 ) 6,300 Changes in Fair Value of Hedge Positions, net of taxes of $(837) and $(171,149), respectively 1,415 291,061 Defined Benefit Pension and Postretirement Plans: Amortization of Net Obligation at Transition, net of taxes of $(59) and $(58), respectively $ 99 $ 100 Amortization of Prior Service Cost, net of taxes of $(66) and $(93), respectively 113 158 Amortization of Net Loss, net of taxes of $(358) and $(152), respectively 605 817 254 512 Foreign Currency Translation Adjustment, net of taxes of $43 and $1,864, respectively (73 ) (3,189 ) Total Other Comprehensive Income / (Loss) (65,684 ) (65,684 ) 294,684 294,684 Comprehensive Income / (Loss) $ (26,787 ) $ 361,674 Accumulated Other Comprehensive Income End of Period $ 92,589 $ 112,082 Nine Months Ended September 30, (In thousands) 2009 2008 Accumulated Other Comprehensive Income / (Loss) Beginning of Period $ 186,426 $ (894 ) Net Income $ 111,979 $ 167,590 Other Comprehensive Income / (Loss), net of taxes: Reclassification Adjustment for Settled Contracts,net of taxes of $113,598 and $(13,541), respectively (190,452 ) 22,957 Changes in Fair Value of Hedge Positions, net of taxes of $(52,441) and $(55,122), respectively 87,204 93,513 Defined Benefit Pension and Postretirement Plans:

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	9 Months Ended Sep. 30, 2009 USD / shares
Pension and Other Postretirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	9. PENSION AND OTHER POSTRETIREMENT BENEFITS The components of net periodic benefit costs for the three and nine months ended September30, 2009 and 2008 were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2009 2008 2009 2008 Qualified and Non-Qualified Pension Plans Current Period Service Cost $ 861 $ 828 $ 2,583 $ 2,485 Interest Cost 928 818 2,784 2,454 Expected Return on Plan Assets (671 ) (884 ) (2,013 ) (2,651 ) Amortization of Prior Service Cost 13 13 39 38 Amortization of Net Loss 794 294 2,382 881 Net Periodic Pension Cost $ 1,925 $ 1,069 $ 5,775 $ 3,207 Postretirement Benefits Other than Pension Plans Current Period Service Cost $ 320 $ 271 $ 960 $ 812 Interest Cost 398 345 1,195 1,035 Amortization of Prior Service Cost 167 238 500 714 Amortization of Net Loss 169 112 507 336 Amortization of Net Obligation at Transition 158 158 474 474 Total Postretirement Benefit Cost $ 1,212 $ 1,124 $ 3,636 $ 3,371 Employer Contributions The funding levels of the pension and postretirement plans are in compliance with standards set by applicable law or regulation. The Company does not have any required minimum funding obligations for its qualified pension plan in 2009. The Company previously disclosed in its financial statements for the year ended December31, 2008 that it expected to contribute $0.3million to its non-qualified pension plan and $0.8million to the postretirement benefit plan during 2009. It is anticipated that these contributions will be made prior to December31, 2009. In May2009, the Company made a contribution of $10million to its qualified pension plan.

Stock Based Compensation

Stock Based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION Compensation expense charged against income for stock-based awards (including the supplemental employee incentive plans) during the nine months ended September30, 2009 and 2008 was $16.6 million and $29.6million, respectively, and is included in General and Administrative Expense in the Condensed Consolidated Statement of Operations. During the third quarter of 2009, the Company realized a $13.1million tax benefit related primarily to the federal tax deduction in excess of book compensation cost for employee stock-based compensation for 2008 and, to a lesser extent, book compensation cost exceeding federal tax deduction for 2009 and state tax deductions for 2007. For regular federal income tax purposes, the Company was in a net operating loss position in 2008. In accordance with ASC 718, the Company is able to recognize this tax benefit only to the extent it reduces the Companys income taxes payable. As the Company carried back net operating losses concurrent with its 2008 tax return filing, the income tax benefit related to stock-based compensation was recorded in 2009. As disclosed in the Form 10-K, the Company realized a $10.7million tax benefit during the year ended December31, 2008 related to the 2007 federal tax deduction in excess of book compensation cost for employee stock-based compensation. For further information regarding Stock-Based Compensation or the Companys Incentive Plans, please refer to Note 10 of the Notes to the Consolidated Financial Statements in the Form 10-K. Restricted Stock Awards During the first nine months of 2009, the Compensation Committee granted 140,060 restricted stock awards with a weighted-average grant date per share value of $34.74. The fair value of restricted stock grants is based on the average of the high and low stock price on the grant date. During the first nine months of 2009, 39,240 restricted stock awards vested with a weighted-average grant date per share value of $27.29. Compensation expense recorded for all unvested restricted stock awards for the nine months ended September30, 2009 and 2008 was $0.7million and $1.2million, respectively. Compensation expense recorded for all unvested restricted stock awards for the third quarter of 2009 and 2008 was $0.3 million and $0.2million, respectively. The Company used an annual forfeiture rate ranging from 0% to 7.1% based on approximately ten years of the Companys history for this type of award to various employee groups. Restricted Stock Units During the nine months ended September30, 2009, 33,150 restricted stock units were granted to non-employee directors of the Company with a grant date per share value of $22.63. The fair value of these units is measured at the average of the high and low stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are paid out when the director ceases to be a director of the Company. The compensation cost, which reflects the total fair value of these units, recorded in the first nine months of both 2009 and 2008 was $0.8 million. There was no expense recorded in the third quarter of either 2009 or 2008

Increase in Authorized Shares

Increase in Authorized Shares
	9 Months Ended Sep. 30, 2009 USD / shares
Increase in Authorized Shares [Abstract]
INCREASE IN AUTHORIZED SHARES	11. INCREASE IN AUTHORIZED SHARES In April2009, the stockholders of the Company approved an increase in the authorized number of shares of common stock from 120million to 240million shares. The Company also decreased the number of shares of SeriesA Junior Participating Preferred Stock reserved for issuance from 1,200,000 to 800,000. The shares of SeriesA Junior Participating Preferred Stock are issuable pursuant to the Companys Preferred Stock Purchase Rights Plan.