Quarter Ended

Nine Months Ended

Financial Data

September 30

September 30

(Data in $ thousands, except per share amounts)

2007

2006

2007

2006

Revenues:

Oil and gas

$

200,311

$

228,077

$

631,233

$

708,056

Other

761

4,042

4,309

5,265

Total

201,072

232,119

635,542

713,321

Operating Expenses:

Lease operating

37,980

45,771

134,542

132,224

General and administrative

27,363

31,835

84,257

73,282

Exploration

5,586

3,092

19,588

4,766

Dry hole and impairment

7,765

32,381

59,431

68,289

Depreciation, depletion and amortization

79,476

72,065

243,432

199,321

Production and other taxes

14,000

19,632

46,947

47,624

(Gain) loss on property sales

(2,433

)

3,031

(131,915

)

(305,330

)

Other

16,696

(2,620

)

29,824

8,003

Total

186,433

205,187

486,106

228,179

Operating Income (Loss)

14,639

26,932

149,436

485,142

Interest:

Charges

(31,418

)

(41,323

)

(115,166

)

(105,612

)

Income

10,341

60

10,430

278

Capitalized

13,514

21,617

53,456

56,442

Total Interest Expense

(7,563

)

(19,646

)

(51,280

)

(48,892

)

Loss on Debt Extinguishment

(6,930

)

—

(6,930

)

—

Commodity Derivative Income (Expense)

(1,699

)

10,545

(6,346

)

6,752

Foreign Currency Transaction Gain (Loss)

(25

)

2

—

25

Income (Loss) From Operations Before Income Taxes

(1,578

)

17,833

84,880

443,027

Income Tax Expense (Benefit)

(1,289

)

6,720

22,890

49,493

Net Income from continuing operations

(289

)

11,113

61,990

393,534

Income (loss) from discontinued operations, net of tax

(45,607

)

22,225

(173,894

)

69,158

Net income (loss)

$

(45,896

)

$

33,338

$

(111,904

)

$

462,692

Basic earnings per share

Income from continuing operations

$

—

$

0.19

$

1.07

$

6.83

Income (loss) from discontinued operations

(0.79

)

0.39

(3.00

)

1.21

Basic earnings (loss) per share

$

(0.79

)

$

0.58

$

(1.93

)

$

8.04

Diluted earnings per share

Income from continuing operations

$

—

$

0.19

$

1.06

$

6.78

Income (loss) from discontinued operations

(0.79

)

0.39

(2.97

)

1.19

Diluted earnings (loss) per share

$

(0.79

)

$

0.58

$

(1.91

)

$

7.97

Weighted Average Number of Common Shares

and Potential Common Shares Outstanding:

Basic shares

58,164

57,618

58,074

57,578

Diluted shares

58,164

57,863

58,492

58,047

Discretionary Cash Flow:

Net Income (loss)

$

(45,896

)

$

33,338

$

(111,904

)

$

462,692

(Income) loss from discontinued operations, net of tax

45,607

(22,225

)

173,894

(69,158

)

Depreciation, depletion and amortization

79,476

72,065

243,432

199,321

Deferred taxes

21,848

56,440

(53,138

)

(45,814

)

Dry hole and impairment

7,765

32,381

59,431

68,289

Exploration

5,586

3,092

19,588

4,766

(Gain) loss on property sales

(2,433

)

3,031

(131,915

)

(305,330

)

Other noncash

8,137

(33,144

)

8,499

(55,029

)

Discretionary cash flow from operationsbefore changes in assets and liabilities

120,090

144,978

207,887

259,737

Discretionary cash flow from discontinued operations

(29,323

)

75,276

131,110

229,545

Total

$

90,767

$

220,254

$

338,997

$

489,282