Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash flows from operating activities:    
Net income (loss) $ 3,182 $ 32,445
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation, depletion and amortization 37,005 36,501
Accretion expense 1,709 1,767
Non-cash gain on acquired assets 0 (4,979)
Amortization of non-cash debt related items 293 338
Amortization of deferred credit (2,304) (2,361)
Non-cash gain on early extinguishment of debt (1,366) (1,942)
Equity in earnings of Medusa Spar LLC (180) (597)
Deferred income tax expense 1,508 11,987
Valuation allowance 0 (14,668)
Non-cash derivative income due to hedge ineffectiveness (40) (189)
Non-cash unrealized gain on mark-to-market derivative instruments, net (1,977) 0
Non-cash charge related to compensation plans 1,901 1,122
Payments to settle asset retirement obligations (1,136) (2,428)
Changes in current assets and liabilities    
Accounts receivable (1,260) (5,280)
Other current assets 244 37
Current liabilities 4,965 6,334
Change in natural gas balancing receivable (96) 198
Change in natural gas balancing payable (152) (29)
Change in other long-term liabilities 0 100
Change in other assets, net (911) (427)
Cash provided by operating activities 41,385 57,929
Cash flows from investing activities:    
Capital expenditures (115,401) (74,388)
Investment in restricted assets for plugging and abandonment 0 (112)
Proceeds from sale of mineral interest and equipment 526 7,559
Distribution from Medusa Spar LLC 1,423 1,107
Cash used in investing activities (113,452) (65,834)
Cash flows from financing activities:    
Draw on senior secured credit facility 43,000 0
Payments on senior secured credit facility (3,000) 0
Redemption of 13% senior notes (10,225) (35,062)
Issuance of common stock 0 73,765
Equity issued related to employee stock plans (18) 0
Cash provided by financing activities 29,757 38,703
Net change in cash and cash equivalents (42,310) 30,798
Beginning of period cash and cash equivalents 43,795 17,436
End of period cash and cash equivalents $ 1,485 $ 48,234