Coterra Energy (CTRA) 10-K 26 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	CABOT OIL & GAS CORP
Entity Central Index Key	0000858470
Document Type	10-K
Document Period End Date	2009-12-31
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			3.2
Entity Common Stock, Shares Outstanding		103,821,454

Consolidated Statement of Opera

Consolidated Statement of Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING REVENUES
Natural Gas Production	$729,734	$758,755	$581,640
Brokered Natural Gas	75,283	114,220	93,215
Crude Oil and Condensate	69,936	69,711	55,243
Other	4,323	3,105	2,072
Total Operating Revenues	879,276	945,791	732,170
OPERATING EXPENSES
Brokered Natural Gas Cost	67,030	100,449	81,819
Direct Operations - Field and Pipeline	93,985	91,839	77,170
Exploration	50,784	31,200	39,772
Depreciation, Depletion and Amortization	221,270	185,403	143,951
Impairment of Unproved Properties	29,990	41,512	19,042
Impairment of Oil & Gas Properties and Other Assets	17,622	35,700	4,614
General and Administrative	68,374	74,185	50,775
Taxes Other Than Income	44,649	66,540	53,782
Total Operating Expenses	593,704	626,828	470,925
Gain/(Loss) on Sale of Assets	(3,303)	1,143	13,448
Gain on Settlement of Dispute (Note 7)	0	51,906	0
INCOME FROM OPERATIONS	282,269	372,012	274,693
Interest Expense and Other	58,979	36,389	17,161
Income Before Income Taxes	223,290	335,623	257,532
Income Tax Expense	74,947	124,333	90,109
NET INCOME	$148,343	$211,290	$167,423
Basic Earnings Per Share	1.43	2.1	1.73
Diluted Earnings Per Share	1.42	2.08	1.71
Weighted-Average Common Shares Outstanding	103,616	100,737	96,978
Diluted Common Shares (Note 12)	104,683	101,726	98,130

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and Cash Equivalents	$40,158	$28,101
Accounts Receivable, Net (Note 3)	80,362	109,087
Income Taxes Receivable	8,909	526
Inventories (Note 3)	27,990	45,677
Current Derivative Contracts (Note 11)	114,686	264,660
Other Current Assets (Note 3)	9,397	12,500
Total Current Assets	281,502	460,551
Properties and Equipment, Net (Successful Efforts Method) (Note 2)	3,358,199	3,135,828
Long-Term Derivative Contracts (Note 11)	0	90,542
Investment in Equity Securites (Note 2)	20,636	0
Other Assets (Note 3)	23,064	14,743
Total Assets	3,683,401	3,701,664
Current Liabilities
Accounts Payable (Note 3)	215,588	222,985
Current Portion of Long-Term Debt (Note 4)	0	35,857
Deferred Income Taxes	35,104	63,985
Income Taxes Payable	0	5,535
Accrued Liabilities (Note 3)	58,049	50,551
Total Current Liabilities	308,741	378,913
Long-Term Liability for Pension and Postretirement Benefits (Note 5)	54,835	54,714
Long-Term Debt (Note 4)	805,000	831,143
Deferred Income Taxes	644,801	599,106
Other Liabilities (Note 3)	57,510	47,226
Total Liabilities	1,870,887	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 - 103,856,447 Shares and 103,561,268 Shares in 2009 and 2008, respectively	10,386	10,356
Additional Paid-in Capital	705,569	675,568
Retained Earnings	1,057,472	921,561
Accumulated Other Comprehensive Income (Note 13)	42,436	186,426
Less Treasury Stock, at Cost: (Note 9) 202,200 Shares in 2009 and 2008, respectively	(3,349)	(3,349)
Total Stockholders' Equity	1,812,514	1,790,562
Total Liabilities and Stockholders' Equity	$3,683,401	$3,701,664

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
	Dec. 31, 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)	103,856,447	103,561,268
Treasury Stock, Shares (actual number)	202,200	202,200

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$148,343	$211,290	$167,423
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization	221,270	185,403	143,951
Impairment of Unproved Properties	29,990	41,512	19,042
Impairment of Oil & Gas Properties and Other Assets	17,622	35,700	4,614
Deferred Income Tax Expense	101,815	120,851	95,152
(Gain) / Loss on Sale of Assets	3,303	(1,143)	(13,448)
Gain on Settlement of Dispute	0	(31,706)	0
Exploration Expense	50,784	31,200	39,772
Unrealized Loss on Derivatives	1,954	0	0
Stock-Based Compensation Expense and Other	29,559	15,623	16,241
Changes in Assets and Liabilities:
Accounts Receivable, Net	28,725	(3,928)	6,854
Income Taxes Receivable	5,893	34,521	14,456
Inventories	17,687	(18,324)	5,644
Other Current Assets	3,103	10,816	(14,908)
Other Assets	(168)	5,698	(29,795)
Accounts Payable and Accrued Liabilities	(27,202)	3,321	1,052
Income Taxes Payable	(5,535)	3,580	(1,281)
Other Liabilities	699	724	7,368
Stock-Based Compensation Tax Benefit	(13,790)	(10,691)	0
Net Cash Provided by Operating Activities	614,052	634,447	462,137
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures	(560,029)	(817,440)	(553,229)
Acquisitions	(394)	(605,748)	(3,982)
Proceeds from Sale of Assets	80,180	2,099	7,061
Exploration Expense	(50,784)	(31,200)	(39,772)
Net Cash Used in Investing Activities	(531,027)	(1,452,289)	(589,922)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from Debt	105,000	892,000	175,000
Repayments of Debt	(167,000)	(375,000)	(65,000)
Net Proceeds from Sale of Common Stock	83	316,230	5,099
Stock-Based Compensation Tax Benefit	13,790	10,691	0
Dividends Paid	(12,432)	(12,073)	(10,670)
Capitalized Debt Issuance Costs	(10,409)	(4,403)	0
Net Cash (Used in) / Provided by Financing Activities	(70,968)	827,445	104,429
Net Increase / (Decrease) in Cash and Cash Equivalents	12,057	9,603	(23,356)
Cash and Cash Equivalents, Beginning of Period	28,101	18,498	41,854
Cash and Cash Equivalents, End of Period	$40,158	$28,101	$18,498

Consolidated Statement of Stock

Consolidated Statement of Stockholders Equity (USD $)
In Thousands	Common Stock	Treasury Stock	Paid-In Capital	Accumulated Other Comprehensive Income / (Loss)(1)		Retained Earnings	Total
Beginning Balance, shares at Dec. 31, 2006	101,418	5,205
Beginning Balance at Dec. 31, 2006	$10,142	($85,690)	$417,995	$37,160	[1]	$565,591	$945,198
Net Income						167,423	167,423
Exercise of Stock Options	62		5,005				5,067
Exercise of Stock Options, shares	619
Stock Amortization and Vesting	43		7,503				7,546
Stock Amortization and Vesting, shares	430
Stock Held in Rabbi Trust	21		(6,274)				(6,253)
Stock Held in Rabbi Trust, shares	214
Cash Dividends at $0.11, $0.12, $0.12 per share for the year 2007, 2008, 2009 respectively.						(10,670)	(10,670)
Other Comprehensive Income				(38,054)	[1]		(38,054)
Ending Balance at Dec. 31, 2007	10,268	(85,690)	424,229	(894)	[1]	722,344	1,070,257
Ending Balance, shares at Dec. 31, 2007	102,681	5,205
Net Income						211,290	211,290
Exercise of Stock Options	33		2,692				2,725
Exercise of Stock Options, shares	328
Retirement of Treasury Stock	(500)	82,341	(81,841)
Retirement of Treasury Stock, shares	(5,003)	(5,003)
Tax Benefit of Stock-Based Compensation			10,691				10,691
Stock Amortization and Vesting	42		6,545				6,587
Stock Amortization and Vesting, shares	418
Stock Held in Rabbi Trust	6		(3,198)				(3,192)
Stock Held in Rabbi Trust, shares	64
Stock Issued for Drilling Company Acquisition	7		3,493				3,500
Stock Issued for Drilling Company Acquisition, shares	70
Issuance of Common Stock	500		312,957				313,457
Issuance of Common Stock, shares	5,003
Cash Dividends at $0.11, $0.12, $0.12 per share for the year 2007, 2008, 2009 respectively.						(12,073)	(12,073)
Other Comprehensive Income				187,320	[1]		187,320
Ending Balance at Dec. 31, 2008	10,356	(3,349)	675,568	186,426	[1]	921,561	1,790,562
Ending Balance, shares at Dec. 31, 2008	103,561	202
Net Income						148,343	148,343
Exercise of Stock Options	2		53				55
Exercise of Stock Options, shares	14
Tax Benefit of Stock-Based Compensation			13,790				13,790
Stock Amortization and Vesting	28		14,898				14,926
Stock Amortization and Vesting, shares	281
Sale of Stock Held in Rabbi Trust	0		1,260				1,260
Sale of Stock Held in Rabbi Trust, shares	0
Cash Dividends at $0.11, $0.12, $0.12 per share for the year 2007, 2008, 2009 respectively.						(12,432)	(12,432)
Other Comprehensive Income				(143,990)	[1]		(143,990)
Ending Balance at Dec. 31, 2009	$10,386	($3,349)	$705,569	$42,436	[1]	$1,057,472	$1,812,514
Ending Balance, shares at Dec. 31, 2009	103,856	202
[1]For further details on the components of Accumulated Other Comprehensive Income and Loss, refer to Note 13 of the Notes to the Consolidated Financial Statements.

1_Consolidated Statement of Sto

Consolidated Statement of Stockholders Equity (Parenthetical) (USD $)
	Retained Earnings	Total
Per share amount at Cash Dividends	0.11	0.11
Per share amount at Cash Dividends	0.12	0.12
Per share amount at Cash Dividends	0.12	0.12

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statement of Comprehensive Income [Abstract]
Net Income	$148,343	$211,290	$167,423
Other Comprehensive Income / (Loss), net of taxes
Reclassification Adjustment for Settled Contracts, net of taxes of $147,048, $4,844 and $29,801, respectively	(247,979)	(8,177)	(49,241)
Changes in Fair Value of Hedge Positions, net of taxes of $(57,303), $(134,259) and $(1,777), respectively	96,783	226,692	2,555
Defined Benefit Pension and Postretirement Plans:
Net Loss Arising During the Year, net of taxes of $1,773, $10,445 and $1,034, respectively	(3,009)	(17,629)	(1,733)
Amortization of Net Obligation at Transition, net of taxes of $(236), $(234) and $(238), respectively	396	398	394
Amortization of Prior Service Cost, net of taxes of $(267), $(373) and $(413), respectively	450	630	681
Amortization of Net Loss, net of taxes of $(1,432), $(603) and $(483), respectively	2,422	1,020	799
Total Defined Benefit Pension and Postretirement Plans	259	(15,581)	141
Foreign Currency Translation Adjustment, net of taxes of $(4,116), $9,292, and $(5,072), respectively	6,947	(15,614)	8,491
Total Other Comprehensive Income / (Loss)	(143,990)	187,320	(38,054)
Comprehensive Income	$4,353	$398,610	$129,369

2_Consolidated Statement of Com

Consolidated Statement of Comprehensive Income (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Other Comprehensive Income / (Loss), net of taxes
Taxes on, Reclassification Adjustment for Settled Contracts	$147,048	$4,844	$29,801
Taxes on, Changes in Fair Value of Hedge Positions	(57,303)	(134,259)	(1,777)
Defined Benefit Pension and Postretirement Plans:
Taxes on, Net Loss Arising During the Year	1,773	10,445	1,034
Taxes on, Amortization of Net Obligation at Transition	(236)	(234)	(238)
Taxes on, Amortization of Prior Service Cost	(267)	(373)	(413)
Taxes on, Amortization of Net Loss	(1,432)	(603)	(483)
Taxes on, Foreign Currency Translation Adjustment	($4,116)	$9,292	($5,072)

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation and Nature of Operations Cabot Oil Gas Corporation and its subsidiaries are engaged in the development, exploitation, exploration, production and marketing of natural gas and, to a lesser extent, crude oil and natural gas liquids. The Company also transports, stores, gathers and purchases natural gas for resale. The Company operates in one segment, natural gas and oil development, exploitation and exploration, exclusively within the continental United States. The Companys exploration activities are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. In April2009, the Company sold substantially all of its assets located in Canada. The consolidated financial statements contain the accounts of the Company and its subsidiaries after eliminating all significant intercompany balances and transactions. In 2009, the Company restructured its operations by combining the Rocky Mountain and Appalachian areas to form the North Region and by combining the Anadarko Basin with its Texas and Louisiana areas to form the South Region. Certain prior year amounts and historical descriptions have been reclassified to reflect this reorganization. In previous periods, the Company presented the geographic areas as East, Gulf Coast, West and Canada. On February23, 2007, the Board of Directors declared a 2-for-1 split of the Companys common stock in the form of a stock distribution. The stock dividend was distributed on March30, 2007 to stockholders of record on March16, 2007. All common stock accounts and per share data have been retroactively adjusted to give effect to the 2-for-1 split of the Companys common stock. Subsequent events have been evaluated through February26, 2010, which is also the date that the financial statements were issued. Recently Adopted Accounting Pronouncements 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 Update (ASU). All guidance in the Codification has an equal level of authority. ASC 105 is effective for financial statements that cover interim and annual periods ending after September15, 2009, and supersedes all accounting standards in U.S. GAAP, aside from those issued by the SEC. There was no impact on the Companys financial position, results of operations or cash flows as a result of the Codification. In February2008,

Properties and Equipment, Net

Properties and Equipment, Net
	12 Months Ended Dec. 31, 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: December 31, (In thousands) 2009 2008 Unproved Oil and Gas Properties $ 423,373 $ 315,782 Proved Oil and Gas Properties 4,118,005 3,813,014 Gathering and Pipeline Systems 294,755 274,192 Land, Building and Other Equipment 77,474 68,606 4,913,607 4,471,594 Accumulated Depreciation, Depletion and Amortization (1,555,408 ) (1,335,766 ) $ 3,358,199 $ 3,135,828 The provisions of ASC 932-235-50-1B, Continued Capitalization of Exploratory Well Costs, require that, in order for costs to be capitalized, a sufficient quantity of reserves must be discovered in the well to justify its completion as a producing well and that sufficient progress must be made in assessing the wells economic and operating feasibility. If both of these requirements are not met, the costs should be expensed. The following table reflects the net changes in capitalized exploratory well costs during 2009, 2008 and 2007. December 31, (In thousands) 2009 2008 2007 Beginning balance at January 1 $ 5,990 $ 2,161 $ 8,428 Additions to capitalized exploratory well costs pending the determination of proved reserves 4,179 5,990 2,161 Reclassifications to wells, facilities, and equipment based on the determination of proved reserves (762 ) (1,259 ) (8,011 ) Capitalized exploratory well costs charged to expense (5,228 ) (902 ) (417 ) Ending balance at December 31 $ 4,179 $ 5,990 $ 2,161 At December31, 2009, 2008 and 2007, 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. The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed and the number of wells for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling: December 31, (In thousands) 2009 2008 2007 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ 4,179 $ 5,990 $ 2,161 Capitalized exploratory well costs that have been capitalized for a period greater than one year Balance at December 31 $ 4,179 $ 5,990 $ 2,161 Number of projects that have exploratory well costs that have been capitalized for a period greater than one year During 2009, the Company recorded $17.6million of impairments of oil and gas properties. The Company recorded an impairment of $12.0million in the Fossil Federal field in San Miguel County, Colorado in the North region resulting from lower well performance and $5.6million in the Beaurline field in Hidalgo Count

Additional Balance Sheet Inform

Additional Balance Sheet Information
	12 Months Ended Dec. 31, 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: December 31, (In thousands) 2009 2008 ACCOUNTS RECEIVABLE, NET Trade Accounts $ 78,656 $ 94,164 Joint Interest Accounts 3,564 16,454 Other Accounts 1,756 1,987 83,976 112,605 Allowance for Doubtful Accounts (3,614 ) (3,518 ) $ 80,362 $ 109,087 INVENTORIES Natural Gas in Storage $ 14,434 $ 27,478 Tubular Goods and Well Equipment 14,420 16,439 Pipeline Imbalances (864 ) 1,760 $ 27,990 $ 45,677 OTHER CURRENT ASSETS Drilling Advances $ 3,417 $ 4,869 Prepaid Balances 5,980 7,631 $ 9,397 $ 12,500 OTHER ASSETS Rabbi Trust Deferred Compensation Plan $ 10,031 $ 8,651 Deferred Charges for Credit Agreements 11,621 4,847 Other Accounts 1,412 1,245 $ 23,064 $ 14,743 ACCOUNTS PAYABLE Trade Accounts $ 17,434 $ 44,088 Natural Gas Purchases 3,558 5,346 Royalty and Other Owners 40,080 42,349 Capital Costs 141,122 117,029 Taxes Other Than Income 4,267 5,617 Drilling Advances 864 1,289 Wellhead Gas Imbalances 4,140 3,354 Other Accounts 4,123 3,913 $ 215,588 $ 222,985 ACCRUED LIABILITIES Employee Benefits $ 11,222 $ 10,807 Current Liability for Pension Benefits 488 245 Current Liability for Postretirement Benefits 981 642 Taxes Other Than Income 22,780 16,582 Interest Payable 20,205 20,684 Derivative Contracts 425 Other Accounts 1,948 1,591 $ 58,049 $ 50,551 OTHER LIABILITIES Rabbi Trust Deferred Compensation Plan $ 19,087 $ 14,531 Accrued Plugging and Abandonment Liability 29,676 27,978 Derivative Contracts 1,954 Other Accounts 6,793 4,717 $ 57,510 $ 47,226

Debt and Credit Agreements

Debt and Credit Agreements
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Credit Agreements [Abstract]
Debt and Credit Agreements	4. Debt and Credit Agreements The Companys debt consisted of the following as of: December 31, December 31, (In thousands) 2009 2008 Long-Term Debt 7.19% Notes $ $ 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 143,000 185,000 Current Maturities 7.19% Notes (20,000 ) Credit Facility (15,857 ) Total Current Maturities (35,857 ) Long-Term Debt, excluding Current Maturities $ 805,000 $ 831,143 7.19% Notes In November1997, the Company issued an aggregate principal amount of $100million of its 12-year 7.19% Notes (7.19% Notes) to a group of six institutional investors in a private placement. The 7.19% Notes required five annual $20million principal payments beginning in November2005. In November2009, the final installment of the 7.19% Notes was repaid in full. 7.33% Weighted-Average Fixed Rate Notes In July2001, the Company issued $170million of Notes to a group of seven institutional investors in a private placement. Prior to the determination of the Notes interest rates, the Company entered into a treasury lock in order to reduce the risk of rising interest rates. Interest rates rose during the pricing period, resulting in a $0.7million gain that is being amortized over the life of the Notes, and thereby reducing the effective interest rate by 5.5 basis points. The Notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 75,000,000 10-year July 2011 7.26 % Tranche 2 $ 75,000,000 12-year July 2013 7.36 % Tranche 3 $ 20,000,000 15-year July 2016 7.46 % The 7.33% weighted-average fixed rate notes contain restrictions on the merger of the Company or any subsidiary with a third party other than under certain limited conditions. There are also various other restrictive covenants customarily found in such debt instruments. Those covenants include a required asset coverage ratio (present value of proved reserves to debt and other liabilities) of at least 1.5 to 1.0, and a minimum annual coverage ratio of operating cash flow to interest expense for the trailing four quarters of 2.8 to 1.0. 6.51% Weighted-Average Fixed Rate Notes In July2008, the Company issued $425million of senior unsecured fixed-rate notes to a group of 41 institutional investors in a private placement. The Notes have bullet maturities and were issued in three separate tranches as follows: Principal Term Maturity Date Coupon Tranche 1 $ 245,000,000 10-year July 2018 6.44 % Tranche 2 $ 100,000,000 12-year July 2020 6.54 % Tranche 3 $ 80,000,000 15-year July 2023 6.69 % Interest on each series of the 6.51% weighted-average fixed

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans [Abstract]
Employee Benefit Plans	5. Employee Benefit Plans Pension Plan The Company has an underfunded non-contributory, defined benefit pension plan for all full-time employees. Plan benefits are based primarily on years of service and salary level near retirement. Plan assets are mainly equity securities and fixed income investments. The Company complies with the Employee Retirement Income Security Act (ERISA)of 1974 and Internal Revenue Code limitations when funding the plan. The Company has an unfunded non-qualified equalization plan to ensure payments to certain executive officers of amounts to which they are already entitled under the provisions of the pension plan, but which are subject to limitations imposed by federal tax laws. Obligations and Funded Status The funded status represents the difference between the projected benefit obligation of the Companys qualified and non-qualified pension plans and the fair value of the qualified pension plans assets at December31. The change in the combined projected benefit obligation of the Companys qualified and non-qualified pension plans and the change in the Companys qualified plan assets at fair value during the last three years are as follows: (In thousands) 2009 2008 2007 Change in Benefit Obligation Benefit Obligation at Beginning of Year $ 63,008 $ 51,603 $ 45,475 Service Cost 3,443 3,313 2,931 Interest Cost 3,712 3,272 2,769 Actuarial Loss 6,262 5,683 1,314 Benefits Paid (1,333 ) (863 ) (886 ) Benefit Obligation at End of Year 75,092 63,008 51,603 Change in Plan Assets Fair Value of Plan Assets at Beginning of Year 34,295 44,744 38,189 Actual Return on Plan Assets 10,903 (13,682 ) 3,179 Employer Contributions 10,136 5,000 5,000 Benefits Paid (1,333 ) (863 ) (886 ) Expenses Paid (821 ) (904 ) (738 ) Fair Value of Plan Assets at End of Year 53,180 34,295 44,744 Funded Status at End of Year $ (21,912 ) $ (28,713 ) $ (6,859 ) Amounts Recognized in the Balance Sheet Amounts recognized in the balance sheet at December31 consist of the following: (In thousands) 2009 2008 2007 Current Liabilities $ (488 ) $ (245 ) $ (116 ) Long-Term Liabilities (21,424 ) (28,468 ) (6,743 ) $ (21,912 ) $ (28,713 ) $ (6,859 ) Amounts Recognized in Accumulated Other Comprehensive Income Amounts recognized in accumulated other comprehensive income at December31 consist of the following: (In thousands) 2009 2008 2007 Prior Service Cost $ 92 $ 143 $ 194 Net Actuarial Loss 32,061 36,373 13,744 $ 32,153 $ 36,516 $ 13,938 Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (In thousan

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	6. Income Taxes Income tax expense / (benefit)is summarized as follows: Year Ended December 31, (In thousands) 2009 2008 2007 Current Federal $ (26,323 ) $ 2,631 $ (1,424 ) State (545 ) 30 (3,619 ) Total (26,868 ) 2,661 (5,043 ) Deferred Federal 100,896 116,127 91,257 State 919 5,545 3,895 Total 101,815 121,672 95,152 Total Income Tax Expense $ 74,947 $ 124,333 $ 90,109 Total income taxes were different than the amounts computed by applying the statutory federal income tax rate as follows: Year Ended December 31, (Dollars in thousands) 2009 2008 2007 Statutory Federal Income Tax Rate 35 % 35 % 35 % Computed Expected Federal Income Tax $ 78,153 $ 117,468 $ 90,137 State Income Tax, Net of Federal Income Tax Benefit 4,476 6,581 5,452 Sale of Foreign Assets (1,656 ) Benefit Related to Favorable State Tax Determination (1) (2,831 ) Deferred Tax Benefit Related to Reduction in Overall State Tax Rate (3,925 ) (1,453 ) (1,378 ) Other, Net (2,101 ) 1,737 (1,271 ) Total Income Tax Expense $ 74,947 $ 124,333 $ 90,109 (1) In November2007, the Company received a favorable ruling letter related to the computation of income taxes for 2006. The tax effects of temporary differences that resulted in significant portions of the deferred tax liabilities and deferred tax assets as of December31 were as follows: Year Ended December 31, (In thousands) 2009 2008 Deferred Tax Liabilities Property, Plant and Equipment $ 765,811 $ 644,347 Hedging Liabilities / Receivables 42,243 132,474 Prepaid Expenses and Other 1,635 6,540 Total 809,689 783,361 Deferred Tax Assets Alternative Minimum Tax Credit 38,835 17,764 Net Operating Loss 31,719 40,339 Pension and Other Post-Retirement Benefits 20,914 22,347 Items Accrued for Financial Reporting Purposes and Other 38,316 39,820 Total 129,784 120,270 Net Deferred Tax Liabilities $ 679,905 $ 663,091 As of December31, 2009, the Company had alternative minimum tax credit carryforwards of $38.8 million that do not expire and can be used to offset regular income taxes in future years to the extent that regular income taxes exceed the alternative minimum tax in any such year. The Company also had net operating loss carryforwards of $62.5million for federal reporting purposes and $188.2million for state reporting purposes. The majority of the state net operating loss carryforwards will expire between 2016 and 2029. It is expected that these deferred tax benefits will be utilized prior to their expiration. Uncertain Tax Positions

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies 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 its Canadian properties (discussed in Note 2). Future obligations under firm gas transportation agreements in effect at December31, 2009 are as follows: (In thousands) 2010 $ 10,977 2011 10,961 2012 10,638 2013 3,373 2014 3,373 Thereafter 41,081 $ 80,403 Drilling Rig Commitments The Company has two drilling rigs in the South region that are under contracts with initial terms of greater than one year. As of December31, 2009, the Company is obligated under these contracts to pay $6.4million during 2010. Lease Commitments The Company leases certain transportation vehicles, warehouse facilities, office space, and machinery and equipment under cancelable and non-cancelable leases. During 2008, the Company entered into a lease for new office space in Houston. The new lease commenced in August2009 and will expire approximately six years from commencement. All other operating leases expire within the next five years, and some of these leases may be renewed. Rent expense under such arrangements totaled $17.4million, $14.6million and $12.3million for the years ended December31, 2009, 2008 and 2007, respectively. Future minimum rental commitments under non-cancelable leases in effect at December31, 2009 are as follows: (In thousands) 2010 $ 5,845 2011 5,159 2012 4,870 2013 4,502 2014 3,941 Thereafter 2,459 $ 26,776 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 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 cou

Cash Flow Information

Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
Cash Flow Information [Abstract]
Cash Flow Information	8. Cash Flow Information Cash paid / (received)for interest and income taxes is as follows: Year Ended December 31, (In thousands) 2009 2008 2007 Interest $ 56,301 $ 23,089 $ 20,257 Income Taxes 27,080 (33,753 ) (20,099 )

Capital Stock

Capital Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Capital Stock [Abstract]
Capital Stock	9. Capital Stock Incentive Plans Under the Companys 2004 Incentive Plan, incentive and non-statutory stock options, stock appreciation rights (SARs), stock awards, cash awards and performance awards may be granted to key employees, consultants and officers of the Company. Non-employee directors of the Company may be granted discretionary awards under the 2004 Incentive Plan consisting of stock options or stock awards. In the first quarter of 2007, the Board of Directors eliminated the automatic award of an option to purchase 30,000 shares of common stock on the date the non-employee directors first join the Board of Directors. In its place, the Board of Directors considers an annual fixed dollar stock award which is competitive with the Companys peer group. A total of 5,100,000 shares of common stock may be issued under the 2004 Incentive Plan. Under the 2004 Incentive Plan, no more than 1,800,000 shares may be used for stock awards that are not subject to the achievement of performance based goals, and no more than 3,000,000 shares may be issued pursuant to incentive stock options. Stock Issuance On June20, 2008, the Company entered into an underwriting agreement, pursuant to which the Company sold an aggregate of 5,002,500 shares of common stock at a price to the Company of $62.66 per share. On June25, 2008, the Company closed the public offering and received $313.5million in net proceeds, after deducting underwriting discounts and commissions. These net proceeds were used temporarily to reduce outstanding borrowings under the Companys revolving credit facility prior to funding a portion of the purchase price of the Companys east Texas acquisition, which closed in the third quarter of 2008. Immediately prior to (and in connection with) this issuance, the Company retired 5,002,500 shares of its treasury stock, which had a weighted-average purchase price of $16.46, representing $82.3 million. In accordance with the Companys policy, the excess of cost of the treasury stock over its par value was charged entirely to additional paid-in capital. Stock Split On February23, 2007, the Board of Directors declared a 2-for-1 split of the Companys common stock in the form of a stock distribution. The stock dividend was distributed on March30, 2007 to stockholders of record on March16, 2007. All common stock accounts and per share data have been retroactively adjusted to give effect to the 2-for-1 split of the Companys common stock. 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. Treasury Stock The Board of Directors has authorized a share repurchase program under which the Company may purchase shares of common stock in the open market or in negotiated transactions. The timing and amount of these stock purchases are determined at the discretion of management. The Company may use the repurchased shares to fund stock compensation programs presently in existence, or for other corporate purposes. All purchases executed to date have been through open market transactions. There is n

Stock Based Compensation

Stock Based Compensation
	12 Months Ended Dec. 31, 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 discussed below) for the years ended December31, 2009, 2008 and 2007 was $25.1million, $34.5million and $15.3million, respectively, and is included in General and Administrative Expense in the Consolidated Statement of Operations. For the year ended December31, 2009, the Company realized a $13.8million 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, state tax deductions for 2007. For regular federal income tax purposes, the Company was in a net operating loss position in 2008. 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. 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. For the year ended December31, 2008, the Company realized a $10.7million tax benefit related to the 2007 federal tax deduction in excess of book compensation cost related to employee stock-based compensation. Such income tax benefit related to the stock-based compensation was recorded in 2008 as the Company carried back net operating losses concurrent with the 2007 tax return filing. The Company did not recognize a tax benefit related to stock-based compensation in 2007 as a result of the tax net operating loss position for the year. Under ASC 718, the tax benefits resulting from tax deductions in excess of expense are reported as an operating cash outflow and a financing cash inflow. For the years ended December31, 2009 and 2008, $13.8million and $10.7million were reported in these two separate line items in the Consolidated Statement of Cash Flows. Restricted Stock Awards Most restricted stock awards vest either at the end of a three year service period, or on a graded-vesting basis of one-third at each anniversary date over a three year service period. Under the graded-vesting approach, the Company recognizes compensation cost over the three year requisite service period for each separately vesting tranche as though the awards are, in substance, multiple awards. For awards that vest at the end of the three year service period, expense is recognized ratably using a straight-line expensing approach over three years. For all restricted stock awards, vesting is dependent upon the employees continued service with the Company, with the exception of employment termination due to death, disability or retirement. The fair value of restricted stock grants is based on the average of the high and low stock price on the grant date. The maximum contractual term is four years. In accordance with ASC 718, the Company accelerated the vesting period for retirement-eligible employees for purposes of recognizing compensation expense in accordance with the vesting provisions of the Companys stock-based compensation programs for awards issued after the adoption of ASC 718. The Company used an an

Financial Instruments

Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments [Abstract]
Financial Instruments	11. Financial Instruments Adoption of ASC 820 In September2006, the FASB issued ASC 820, Fair Value Measurements and Disclosures, which establishes 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. ASC 820 discusses present value techniques in measuring fair value. Additional disclosures are also required for transactions measured at fair value. ASC 820 was effective for fiscal years beginning after November15, 2007, and interim periods within those fiscal years. In February2008, the FASB 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 to comply with ASC 820. Effective January1, 2009, the Company applied all of the provisions of ASC 820 and there was not a material impact on the Companys financial statements except for the Companys impairment of oil and gas properties (refer to Note 2). 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. 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 valuation techniques that can be used under ASC 820 are the market approach, income approach or cost approach. The market approach uses prices and other information for market transactions involving identical or comparable assets or liabilities, such as matrix pricing. The income approach uses valuation techniques to convert future amounts to a single discounted present value amount based on current market conditions about those future amounts, such as present value techniques, option pricing models (i.e. Black-Scholes model) and binomial models (i.e. Monte-Carlo model). The cost approach is based on current replacement cost to replace an asset. 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,

Earnings per Common Share

Earnings per Common Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings per Common Share [Abstract]
Earnings per Common Share	12. 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 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 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 years ended December31, 2009, 2008 and 2007: December 31, 2009 2008 2007 (1) Weighted-Average Shares Basic 103,615,971 100,736,562 96,977,634 Dilution Effect of Stock Options and Awards at End of Period 1,066,776 989,936 1,152,673 Weighted-Average Shares Diluted 104,682,747 101,726,498 98,130,307 Weighted-Average Stock Awards and Shares Excluded from Diluted Earnings per Share due to the Anti-Dilutive Effect 260,818 258,074 21,639 (1) Reflects the 2-for-1 split of the Companys common stock (refer to Note 9).

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income Loss
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income / (Loss) [Abstract]
Accumulated Other Comprehensive Income / (Loss)	13. Accumulated Other Comprehensive Income / (Loss) Changes in the components of accumulated other comprehensive income / (loss), net of taxes, for the years ended December31, 2009, 2008 and 2007 were as follows: Defined Benefit Foreign Net Gains / Pension and Currency Accumulated Other Comprehensive Income / (Losses) on Cash Postretirement Translation (Loss), net of taxes (In thousands) Flow Hedges Plans Adjustment Total Balance at December31, 2006 $ 51,239 $ (14,168 ) $ 89 $ 37,160 Net change in unrealized gains on cash flow hedges, net of taxes of $28,024 (46,686 ) (46,686 ) Net change in defined benefit pension and postretirement plans, net of taxes of $(100) 141 141 Change in foreign currency translation adjustment, net of taxes of $(5,072) 8,491 8,491 Balance at December31, 2007 $ 4,553 $ (14,027 ) $ 8,580 $ (894 ) Net change in unrealized gain on cash flow hedges, net of taxes of $(129,415) 218,515 218,515 Net change in defined benefit pension and postretirement plans, net of taxes of $9,235 (15,581 ) (15,581 ) Change in foreign currency translation adjustment, net of taxes of $9,292 (15,614 ) (15,614 ) Balance at December31, 2008 $ 223,068 $ (29,608 ) $ (7,034 ) $ 186,426 Net change in unrealized gain on cash flow hedges, net of taxes of $89,745 (151,196 ) (151,196 ) Net change in defined benefit pension and postretirement plans, net of taxes of $(162) 259 259 Change in foreign currency translation adjustment, net of taxes of $(4,116) 6,947 6,947 Balance at December31, 2009 $ 71,872 $ (29,349 ) $ (87 ) $ 42,436

Supplemental Oil and Gas Inform

Supplemental Oil and Gas Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Oil and Gas Information (Unaudited) [Abstract]
Supplemental Oil and Gas Information (Unaudited)	SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) Oil and Gas Reserves Users of this information should be aware that the process of estimating quantities of proved and proved developed natural gas and crude oil reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various reservoirs make these estimates generally less precise than other estimates included in the financial statement disclosures. Proved reserves represent estimated quantities of natural gas, crude oil and condensate that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions and government regulations in effect when the estimates were made. Proved developed reserves are proved reserves expected to be recovered through existing wells, equipment and operating methods when the estimates were made and through installed extraction equipment and infrastructure operational if the extraction is by means not involving a well. Proved undeveloped reserves are proved reserves expected to be recovered through new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Estimates of total proved reserves at December31, 2009, 2008, and 2007 were based on studies performed by the Companys petroleum engineering staff. The 2009 estimates were computed using the 12-month average oil and gas index prices, calculated as the unweighted arithmetic average for the first day of the month price for each month during 2009, as prescribed under the revised rules codified in ASC 932, Extractive ActivitiesOil and Gas. The 2008 and 2007 estimates were computed based on year end prices for oil, natural gas, and natural gas liquids. The estimates were reviewed by Miller and Lents, Ltd., who indicated in their letter dated February12, 2010, that based on their investigation and subject to the limitations described in their letter, they believe the results of those estimates and projections were reasonable in the aggregate. No major discovery or other favorable or unfavorable event after December31, 2009, is believed to have caused a material change in the estimates of proved or proved developed reserves as of that date. As of December 31, 2009, the Company adopted the FASBs authoratative guidance related to oil and gas reserve estimation and disclosures in conjunction with year end reserve reporting as a change in accounting principle that is insepar

Selected Data

Selected Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Data (Unaudited) [Abstract]
Selected Data (Unaudited)	SELECTED DATA (UNAUDITED) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (In thousands, except per share amounts) First Second Third Fourth Total 2009 Operating Revenues $ 233,939 $ 204,824 $ 207,021 $ 233,492 $ 879,276 Impairment of Oil Gas Properties and Other Assets (1) 17,622 17,622 Operating Income (2) 89,897 54,239 74,723 63,410 282,269 Net Income (2) 47,580 25,502 38,897 36,364 148,343 Basic Earnings per Share 0.46 0.25 0.38 0.34 1.43 Diluted Earnings per Share 0.46 0.24 0.37 0.35 1.42 2008 Operating Revenues $ 219,651 $ 248,854 $ 244,820 $ 232,466 $ 945,791 Impairment of Oil Gas Properties and Other Assets (1) 35,700 35,700 Operating Income 76,072 94,086 114,717 87,137 372,012 Net Income 45,975 54,625 66,990 43,700 211,290 Basic Earnings per Share 0.47 0.55 0.65 0.42 2.10 Diluted Earnings per Share 0.46 0.55 0.64 0.42 2.08 (1) For discussion of impairment of oil and gas properties, refer to Note 2 of the Notes to the Consolidated Financial Statements. (2) Operating Income and Net Income in the first and second quarters of 2009 contain a $12.7million gain on the disposition of Thornwood properties and a $16.0million loss on the sale of Canadian properties, respectively.