0001509991 2012-01-01 2012-12-31 0001509991 2013-02-18 0001509991 2012-06-30 0001509991 2012-12-31 0001509991 2011-12-31 0001509991 kos:ChevronGlobalEnergyIncMember kos:Block42AndBlock45Member 2012-01-01 2012-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-01-01 2012-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2012-01-01 2012-12-31 0001509991 2011-01-01 2011-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember us-gaap:SeriesCPreferredStockMember 2010-01-01 2010-12-31 0001509991 2010-01-01 2010-12-31 0001509991 2011-05-17 2011-12-31 0001509991 us-gaap:CommonStockMember 2012-01-01 2012-12-31 0001509991 kos:ThreewayCollars3Member kos:TermJanuary2013ToDecember2013Member 2012-12-31 0001509991 kos:ServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2011-05-17 2011-12-31 0001509991 2010-12-31 0001509991 2009-12-31 0001509991 us-gaap:GeneralPartnerMember 2009-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2009-12-31 0001509991 us-gaap:RetainedEarningsMember 2009-12-31 0001509991 us-gaap:GeneralPartnerMember 2010-12-31 0001509991 us-gaap:RetainedEarningsMember 2010-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-12-31 0001509991 us-gaap:CommonStockMember 2011-12-31 0001509991 us-gaap:CommonStockMember 2012-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0001509991 us-gaap:RetainedEarningsMember 2011-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2012-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-12-31 0001509991 us-gaap:TreasuryStockMember 2011-12-31 0001509991 us-gaap:ParentCompanyMember 2011-01-01 2011-12-31 0001509991 us-gaap:RetainedEarningsMember 2012-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-12-31 0001509991 us-gaap:TreasuryStockMember 2012-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2010-12-31 0001509991 us-gaap:GeneralPartnerMember 2010-01-01 2010-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2010-01-01 2010-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-01-01 2010-12-31 0001509991 us-gaap:RetainedEarningsMember 2010-01-01 2010-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2012-01-01 2012-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-01-01 2012-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2012-12-31 0001509991 us-gaap:TreasuryStockMember 2012-01-01 2012-12-31 0001509991 us-gaap:RetainedEarningsMember 2012-01-01 2012-12-31 0001509991 us-gaap:GeneralPartnerMember 2011-01-01 2011-12-31 0001509991 us-gaap:AdditionalPaidInCapitalMember 2011-01-01 2011-12-31 0001509991 us-gaap:RetainedEarningsMember 2011-01-01 2011-12-31 0001509991 us-gaap:CommonStockMember 2011-01-01 2011-12-31 0001509991 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-01-01 2011-12-31 0001509991 us-gaap:TreasuryStockMember 2011-01-01 2011-12-31 0001509991 us-gaap:CashAndCashEquivalentsMember kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-01-01 2012-12-31 0001509991 us-gaap:CashAndCashEquivalentsMember kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-12-31 0001509991 us-gaap:CashAndCashEquivalentsMember kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2011-12-31 0001509991 us-gaap:CashAndCashEquivalentsMember us-gaap:PerformanceGuaranteeMember 2012-12-31 0001509991 us-gaap:CashAndCashEquivalentsMember us-gaap:PerformanceGuaranteeMember 2011-12-31 0001509991 us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 us-gaap:LeaseholdImprovementsMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 us-gaap:LeaseholdImprovementsMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 kos:OfficeFurnitureFixturesAndComputerEquipmentMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 kos:OfficeFurnitureFixturesAndComputerEquipmentMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 us-gaap:VehiclesMember 2012-01-01 2012-12-31 0001509991 us-gaap:CapitalizedInterestCostsMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2012-12-31 0001509991 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2011-12-31 0001509991 kos:FloatingProductionStorageAndOffloadingVesselMember 2011-12-29 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember kos:WestCapeThreePointsBlockMember 2009-07-01 2009-07-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember kos:DeepwaterTanoBlockMember 2009-07-01 2009-07-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember kos:WestCapeThreePointsBlockMember 2011-10-01 2011-10-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember 2011-10-01 2011-10-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember 2011-01-01 2011-12-31 0001509991 kos:TullowMember kos:WestCapeThreePointsBlockPetroleumAgreementsMember 2011-07-22 0001509991 kos:EOGroupMember kos:WestCapeThreePointsBlockPetroleumAgreementsMember 2011-04-01 2011-06-30 0001509991 kos:JubileeFieldMember 2011-07-01 2011-07-31 0001509991 kos:JubileeFieldMember kos:GhanaNationalPetroleumCorporationMember 2011-07-01 2011-07-31 0001509991 kos:WestCapeThreePointsBlockPetroleumAgreementsMember kos:WestCapeThreePointsBlockMember 2011-07-01 2011-07-31 0001509991 kos:MahoganyEastAreaMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0001509991 kos:Teak1DiscoveryMember 2012-01-01 2012-12-31 0001509991 kos:Teak2DiscoveryMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 kos:Teak1DiscoveryMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 kos:AkasaDiscoveryMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2011-01-01 2011-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2011-03-31 0001509991 kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 2011-03-01 2011-03-31 0001509991 kos:LongTermIncentivePlanMember 2011-01-01 2011-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember us-gaap:MinimumMember 2012-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember us-gaap:MaximumMember 2012-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2011-01-01 2011-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2010-01-01 2010-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember 2012-01-01 2012-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember 2011-01-01 2011-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember 2010-01-01 2010-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:DerivativeMember 2012-01-01 2012-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:DerivativeMember 2011-01-01 2011-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:DerivativeMember 2010-01-01 2010-12-31 0001509991 us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2012-01-01 2012-12-31 0001509991 us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2011-01-01 2011-12-31 0001509991 us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2010-01-01 2010-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2012-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2011-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2012-01-01 2012-12-31 0001509991 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2012-12-31 0001509991 us-gaap:InterestRateContractMember us-gaap:NondesignatedMember 2011-12-31 0001509991 us-gaap:NondesignatedMember 2012-12-31 0001509991 us-gaap:NondesignatedMember 2011-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2013ToDecember2013Member 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2014ToDecember2014Member 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2015ToDecember2015Member 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2016ToJune2016Member 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2013ToDecember2013Member 2012-01-01 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2014ToDecember2014Member 2012-01-01 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2015ToDecember2015Member 2012-01-01 2012-12-31 0001509991 us-gaap:InterestRateSwapMember kos:TermJanuary2016ToJune2016Member 2012-01-01 2012-12-31 0001509991 kos:ThreewayCollars1Member kos:TermJanuary2013ToDecember2013Member 2012-12-31 0001509991 kos:ThreewayCollarsMember kos:TermJanuary2013ToDecember2013Member 2012-12-31 0001509991 kos:ThreewayCollars2Member kos:TermJanuary2013ToDecember2013Member 2012-12-31 0001509991 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2012-12-31 0001509991 us-gaap:SubsidiariesMember us-gaap:ConvertiblePreferredStockMember 2011-05-15 2011-05-16 0001509991 kos:CommonUnitsMember us-gaap:SubsidiariesMember 2011-05-15 2011-05-16 0001509991 2011-05-15 2011-05-16 0001509991 us-gaap:RestrictedStockMember 2011-05-15 2011-05-16 0001509991 2011-06-01 2011-06-30 0001509991 2011-05-17 2011-06-30 0001509991 kos:ChevronGlobalEnergyIncMember kos:Block42AndBlock45Member 2012-11-01 2012-11-30 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CommodityContractMember 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CommodityContractMember 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:CommodityContractMember 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CommodityContractMember 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:InterestRateContractMember 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:InterestRateContractMember 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member us-gaap:InterestRateContractMember 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:InterestRateContractMember 2011-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2012-12-31 0001509991 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2011-12-31 0001509991 us-gaap:CommodityContractMember 2012-12-31 0001509991 us-gaap:InterestRateContractMember 2012-12-31 0001509991 us-gaap:InterestRateContractMember 2011-12-31 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesAPreferredStockMember 2011-05-01 2011-05-31 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesBPreferredStockMember 2011-05-01 2011-05-31 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesCPreferredStockMember 2011-05-01 2011-05-31 0001509991 us-gaap:ConvertiblePreferredStockMember 2011-05-01 2011-05-31 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesAPreferredStockMember 2011-05-16 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesBPreferredStockMember 2011-05-16 0001509991 us-gaap:SubsidiariesMember us-gaap:SeriesCPreferredStockMember 2011-05-16 0001509991 us-gaap:SubsidiariesMember us-gaap:ConvertiblePreferredStockMember 2011-05-01 2011-05-31 0001509991 us-gaap:SubsidiariesMember us-gaap:ConvertiblePreferredStockMember 2011-01-01 2011-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember us-gaap:MinimumMember 2011-01-01 2011-05-16 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember us-gaap:MaximumMember 2011-01-01 2011-05-16 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2011-05-16 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2010-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2011-01-01 2011-05-16 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2012-01-01 2012-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember kos:FoundingManagementAndDirectorsMember 2012-01-01 2012-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember kos:EmployeesMember 2012-01-01 2012-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2011-01-01 2011-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember kos:EmployeesMember 2011-01-01 2011-05-16 0001509991 us-gaap:RestrictedStockMember kos:LongTermIncentivePlanMember 2011-01-01 2011-05-16 0001509991 kos:LongTermIncentivePlanMember 2011-05-17 2012-12-31 0001509991 kos:LongTermIncentivePlanMember 2011-04-02 0001509991 kos:LongTermIncentivePlanMember 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2011-05-17 2011-12-31 0001509991 kos:ServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2011-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2011-12-31 0001509991 kos:ServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 kos:ServiceVestingRestrictedStockUnitsMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockUnitsMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 kos:ServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember 2012-12-31 0001509991 kos:ServiceVestingRestrictedStockUnitsMember kos:LongTermIncentivePlanMember 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockUnitsMember kos:LongTermIncentivePlanMember 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember us-gaap:MaximumMember 2011-05-17 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockUnitsMember kos:LongTermIncentivePlanMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0001509991 kos:MarketAndServiceVestingRestrictedStockAwardsMember kos:LongTermIncentivePlanMember us-gaap:MinimumMember 2011-05-17 2012-12-31 0001509991 country:US 2012-01-01 2012-12-31 0001509991 country:US 2011-01-01 2011-12-31 0001509991 country:US 2010-01-01 2010-12-31 0001509991 kos:OtherForeignCountriesMember 2012-01-01 2012-12-31 0001509991 kos:OtherForeignCountriesMember 2011-01-01 2011-12-31 0001509991 kos:OtherForeignCountriesMember 2010-01-01 2010-12-31 0001509991 country:GH 2010-01-01 2010-12-31 0001509991 country:GH 2012-12-31 0001509991 country:GH 2011-12-31 0001509991 us-gaap:ParentCompanyMember 2012-12-31 0001509991 country:GH 2011-01-01 2011-12-31 0001509991 kos:CameroonMoroccoSurinameAndMauritaniaMember 2012-01-01 2012-12-31 0001509991 country:MA 2012-01-01 2012-12-31 0001509991 country:MA 2012-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2011-03-01 2011-03-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-11-01 2012-11-30 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-11-30 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2011-01-01 2011-12-31 0001509991 us-gaap:RevolvingCreditFacilityMember 2012-12-31 0001509991 us-gaap:RevolvingCreditFacilityMember 2012-01-01 2012-12-31 0001509991 kos:ThreewayCollarsMember kos:TermJanuary2014ToDecember2014Member 2012-12-31 0001509991 us-gaap:CommodityContractMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2012-01-01 2012-12-31 0001509991 us-gaap:ParentCompanyMember 2011-12-31 0001509991 us-gaap:ParentCompanyMember 2012-01-01 2012-12-31 0001509991 us-gaap:ParentCompanyMember 2010-01-01 2010-12-31 0001509991 us-gaap:ParentCompanyMember 2009-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2011-12-31 0001509991 us-gaap:AllowanceForTradeReceivablesMember 2011-01-01 2011-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2012-01-01 2012-12-31 0001509991 us-gaap:AllowanceForTradeReceivablesMember 2010-12-31 0001509991 us-gaap:AllowanceForTradeReceivablesMember 2010-01-01 2010-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2010-01-01 2010-12-31 0001509991 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2009-12-31 0001509991 2011-05-16 0001509991 country:GH 2010-12-31 0001509991 country:GH 2009-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-01-01 2010-12-31 0001509991 us-gaap:CashFlowHedgingMember us-gaap:InterestRateContractMember us-gaap:InterestExpenseMember 2010-01-01 2010-12-31 0001509991 kos:LineOfCreditFacilityRevolvingCreditConversionToTermLoanMember 2012-02-29 0001509991 us-gaap:SeriesCPreferredStockMember 2010-01-01 2010-12-31 0001509991 us-gaap:SubsidiariesMember us-gaap:ConvertiblePreferredStockMember 2010-01-01 2010-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember us-gaap:ChiefExecutiveOfficerMember 2010-10-01 2010-10-31 0001509991 country:BM 2011-01-01 2011-12-31 0001509991 country:BM 2012-01-01 2012-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember us-gaap:ChiefExecutiveOfficerMember 2010-12-16 2010-12-17 0001509991 us-gaap:RestrictedStockMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 us-gaap:RestrictedStockUnitsRSUMember kos:LongTermIncentivePlanMember 2012-01-01 2012-12-31 0001509991 kos:JubileeUnitizationAndUnitOperatingAgreementMember kos:DeepwaterTanoBlockMember 2011-10-01 2011-10-31 0001509991 us-gaap:CommodityContractMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2011-01-01 2011-12-31 0001509991 kos:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember 2012-12-31 0001509991 kos:RestrictedStockAwardsAndRestrictedStockUnitsRSUMember 2012-01-01 2012-12-31 0001509991 kos:TermJanuary2014ToDecember2014Member kos:ThreewayCollars1Member 2013-01-31 0001509991 2011-01-01 2011-05-16 0001509991 us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2011-01-01 2011-12-31 0001509991 us-gaap:SubsidiariesMember kos:ProfitUnitsMember 2010-01-01 2010-12-31 0001509991 us-gaap:RevolvingCreditFacilityMember 2012-11-30 iso4217:USD xbrli:shares xbrli:pure utr:MBbls kos:item kos:Project kos:segment kos:vote iso4217:USD xbrli:shares iso4217:USD utr:bbl Kosmos Energy Ltd. 0001509991 10-K 2012-12-31 false --12-31 Yes Large Accelerated Filer 388593342 2012 FY 778343016 Yes No <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>1. Organization</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Kosmos Energy&#160;Ltd. was incorporated pursuant to the laws of Bermuda in January 2011 to become a holding company for Kosmos Energy Holdings. Kosmos Energy Holdings is a privately held Cayman Islands company that was formed in March 2004. As a holding company, Kosmos Energy&#160;Ltd.'s management operations are conducted through a wholly owned subsidiary, Kosmos Energy,&#160;LLC. The terms "Kosmos," the "Company," "we," "us," "our," "ours," and similar terms when used in the present tense or prospectively or for historical periods since May&#160;16, 2011 refer to Kosmos Energy&#160;Ltd. and its wholly owned subsidiaries and for historical periods prior to May&#160;16, 2011 refer to Kosmos Energy Holdings and its wholly owned subsidiaries, unless the context indicates otherwise.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are a leading independent oil and gas exploration and production company focused on frontier and emerging areas in Africa and South America. Our asset portfolio includes existing production and other major project developments offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Mauritania, Morocco and Suriname and onshore Cameroon.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2011, contemporaneous with Kosmos Energy&#160;Ltd.'s initial public offering ("IPO"), the Series&#160;A Convertible Preferred Units, Series&#160;B Convertible Preferred Units and Series&#160;C Convertible Preferred Units (collectively the "Convertible Preferred Units") and common units of Kosmos Energy Holdings were exchanged into common shares of Kosmos Energy&#160;Ltd. based on the pre-offering equity value of such interests in our corporate reorganization (the "corporate reorganization"). This resulted in the Convertible Preferred Units and the common units being exchanged into 277.7&#160;million and 63.5&#160;million common shares of Kosmos Energy&#160;Ltd., respectively, or 341.2&#160;million common shares in the aggregate. The 341.2&#160;million common shares included 10.0&#160;million service vesting restricted stock awards issued to management and employees in exchange for unvested profit units in connection with our corporate reorganization. The common shares have one vote per share and a par value of $0.01. As a result of this corporate reorganization, Kosmos Energy Holdings became wholly owned by Kosmos Energy&#160;Ltd. Subsequent to this exchange, we have one class of common stock with issued and outstanding shares.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Kosmos Energy&#160;Ltd. completed its IPO of 33.0&#160;million common shares on May&#160;16, 2011. In June 2011, the Company closed the sale of an additional 1.5&#160;million common shares pursuant to the over-allotment option exercised by the underwriters of the IPO. This partial exercise of the over-allotment option brings the total number of common shares sold in the offering to 34.5&#160;million. Our net proceeds from the sale of 34.5&#160;million common shares, after underwriting discounts and commissions and offering expenses, were $580.4&#160;million.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We have one reportable segment, which is the exploration and production of oil and natural gas. Substantially all of our long-lived assets and product sales are related to production located offshore Ghana.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>2. Accounting Policies</b></font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Principles of Consolidation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The accompanying consolidated financial statements include the accounts of Kosmos Energy&#160;Ltd. and its wholly owned subsidiaries. All intercompany transactions have been eliminated.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Use of Estimates</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Actual results could differ from these estimates.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Reclassifications</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or shareholders equity.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Cash and Cash Equivalents</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Cash and cash equivalents includes demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Restricted Cash</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In accordance with our commercial debt facility, we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period. As of December&#160;31, 2012 and 2011, we had $21.3&#160;million and $23.7&#160;million, respectively, in current restricted cash to meet this requirement. Additionally, as of December&#160;31, 2012 and 2011, we had $29.9&#160;million and $3.8&#160;million, respectively, of long-term restricted cash used to cash collateralize performance guarantees related to our petroleum agreements.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Receivables</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our receivables consist of joint interest billings, oil sales and other receivables for which the Company generally does not require collateral security. Receivables from joint interest owners are stated at amounts due, net of any allowances for doubtful accounts. We determine our allowance by considering the length of time past due, future net revenues of the debtor's ownership interest in oil and natural gas properties we operate, and the owner's ability to pay its obligation, among other things. We did not have any allowances for doubtful accounts as of December&#160;31, 2012 and 2011.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Inventories</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Inventories consisted of $33.1&#160;million and $26.9&#160;million of materials and supplies and $0.2&#160;million and $0.2&#160;million of hydrocarbons as of December&#160;31, 2012 and 2011, respectively. The Company's materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges (including depletion) directly and indirectly incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Exploration and Development Costs</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company follows the successful efforts method of accounting for its oil and gas properties. Acquisition costs for proved and unproved properties are capitalized when incurred. Costs of unproved properties are transferred to proved properties when a determination that proved reserves have been found. Exploration costs, including geological and geophysical costs and costs of carrying unproved properties, are expensed as incurred. Exploratory drilling costs are capitalized when incurred. If exploratory wells are determined to be commercially unsuccessful or dry holes, the applicable costs are expensed and recorded in exploration expense on the consolidated statement of operations. Costs incurred to drill and equip development wells, including unsuccessful development wells, are capitalized. Costs incurred to operate and maintain wells and equipment and to lift oil and natural gas to the surface are expensed as oil and gas production expense.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company evaluates unproved property, other than well related costs, periodically for impairment. These costs are generally related to the acquisition of leasehold costs. The impairment assessment considers results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If the quantity of potential future reserves determined by such evaluations is not sufficient to fully recover the cost invested in each project, the Company will recognize an impairment loss at that time.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Depletion, Depreciation and Amortization</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Proved properties and support equipment and facilities are depleted using the unit-of-production method based on estimated proved oil and natural gas reserves. Capitalized exploratory drilling costs that result in a discovery of proved reserves and development costs are amortized using the unit-of-production method based on estimated proved oil and natural gas reserves for the related field.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Depreciation and amortization of other property is computed using the straight-line method over the assets' estimated useful lives (not to exceed the lease term for leasehold improvements), ranging from one to eight years.</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="center" width="56"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Years<br /> Depreciated</b></font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Leasehold improvements</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">1 to 8</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Office furniture, fixtures and computer equipment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">3 to 7</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vehicles</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">5</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Amortization of deferred financing costs is computed using the straight-line method over the life of the related debt.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Capitalized Interest</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest costs from external borrowings are capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying assets.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Asset Retirement Obligations</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company accounts for asset retirement obligations as required by ASC 410&#8212;Asset Retirement and Environmental Obligations. Under these standards, the fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement obligation is incurred, the liability is recognized when a reasonable estimate of fair value can be made. If a tangible long-lived asset with an existing asset retirement obligation is acquired, a liability for that obligation is recognized at the asset's acquisition date. In addition, a liability for the fair value of a conditional asset retirement obligation is recorded if the fair value of the liability can be reasonably estimated. We capitalize the asset retirement costs by increasing the carrying amount of the related long-lived asset by the same amount as the liability. We record increases in the discounted abandonment liability resulting from the passage of time in depletion and depreciation in the consolidated statement of operations.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Variable Interest Entity</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A variable interest entity ("VIE"), as defined by ASC 810&#8212;Consolidation, is an entity that by design has insufficient equity to permit it to finance its activities without additional subordinated financial support or equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's performance and will absorb losses or receive benefits from the VIE that could potentially be significant to the VIE.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our wholly owned subsidiary, Kosmos Energy Finance International, meets the definition of a VIE. The Company is the primary beneficiary of this VIE, which is consolidated in these financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Prior to the incorporation of Kosmos Energy Finance International on March&#160;18, 2011, Kosmos Energy Finance International did not have any financial statement activity. Kosmos Energy Finance International's following assets and liabilities are shown on the face of the consolidated balance sheet as of December&#160;31, 2012 and 2011: current restricted cash; deferred financing costs; long-term debt; and long-term derivatives liabilities. At December&#160;31, 2012, Kosmos Energy Finance International had $118.8&#160;million in cash and cash equivalents, $0.2&#160;million in prepaid expenses and other, $0.5&#160;million in accrued liabilities and $6.6&#160;million in other long-term liabilities. At December&#160;31, 2011, Kosmos Energy Finance International had $231.6&#160;million in cash and cash equivalents, $0.1&#160;million in other receivables, $1.2&#160;million in accrued liabilities and $3.0&#160;million in other long-term liabilities.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Impairment of Long-lived Assets</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company reviews its long-lived assets for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360&#8212;Property, Plant and Equipment requires an impairment loss to be recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment shall be based on the carrying amount of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Assets to be disposed of and assets not expected to provide any future service potential to the Company are recorded at the lower of carrying amount or fair value less cost to sell.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Derivative Instruments and Hedging Activities</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We utilize oil derivative contracts to mitigate our exposure to commodity price risk associated with our anticipated future oil production. These derivative contracts consist of three-way collars. We also use interest rate swap contracts to mitigate our exposure to interest rate fluctuations related to our long-term debt. Our derivative financial instruments are recorded on the balance sheet as either assets or liabilities and are measured at fair value. We do not apply hedge accounting to our oil derivative contracts. Effective June&#160;1, 2010, we discontinued hedge accounting on our interest rate swap contracts. Therefore, from that date forward, the changes in the fair value of the instruments are recognized in earnings during the period of change. The effective portions of the discontinued hedges as of May&#160;31, 2010, are included in accumulated other comprehensive income or loss ("AOCI") in the equity section of the accompanying consolidated balance sheets, and are being transferred to earnings when the hedged transaction settles. See Note&#160;10&#8212;Derivative Financial Instruments.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Estimates of Proved Oil and Natural Gas Reserves</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Reserve quantities and the related estimates of future net cash flows affect our periodic calculations of depletion and assessment of impairment of our oil and natural gas properties. Proved oil and natural gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic and operating conditions. As additional proved reserves are discovered, reserve quantities and future cash flows will be estimated by independent petroleum consultants and prepared in accordance with guidelines established by the Securities and Exchange Commission ("SEC") and the FASB. The accuracy of these reserve estimates is a function of:</font></p> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the engineering and geological interpretation of available data;</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">estimates of the amount and timing of future operating cost, production taxes, development cost and workover cost;</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the accuracy of various mandated economic assumptions; and</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the judgments of the persons preparing the estimates.</font></dd></dl></li></ul> <p style="FONT-FAMILY: times"><font size="2"><b>Revenue Recognition</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We use the sales method of accounting for oil and gas revenues. Under this method, we recognize revenues on the volumes sold based on the provisional sales prices. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property. These differences result in a condition known in the industry as a production imbalance. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves on such property. As of December&#160;31, 2012 and 2011, we had no oil and gas imbalances recorded in our consolidated financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our oil and gas revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month after the sale occurs.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Equity-based Compensation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For equity-based compensation awards, compensation expense is recognized in the Company's financial statements over the awards' vesting periods based on their grant date fair value. The Company utilizes (i)&#160;the closing stock price on the date of grant to determine the fair value of service vesting restricted stock awards and restricted stock units and (ii)&#160;a Monte Carlo simulation to determine the fair value of restricted stock awards and restricted stock units with a combination of market and service vesting criteria.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Treasury Stock</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We record treasury stock purchases at cost. All of our treasury stock purchases are from our employees that surrendered shares to the Company to satisfy their minimum tax withholding requirements and were not part of a formal stock repurchase plan. Additionally, treasury stock includes forfeited restricted stock awards granted under our long-term incentive plan.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Income Taxes</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company accounts for income taxes as required by ASC 740&#8212;Income Taxes. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the technical merits of the position. Accordingly, we measure tax benefits from such positions based on the most likely outcome to be realized.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Foreign Currency Translation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The U.S. dollar is the functional currency for the Company's foreign operations. Foreign currency transaction gains and losses and adjustments resulting from translating monetary assets and liabilities denominated in foreign currencies are included in other expenses. Cash balances held in foreign currencies are not significant, and as such, the effect of exchange rate changes is not material to any reporting period.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Concentration of Credit Risk</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;There are a variety of factors which affect the market for oil, including the proximity and capacity of transportation facilities, demand for oil, the marketing of competitive fuels and the effects of government regulations on oil production and sales. Our revenue can be materially affected by current economic conditions and the price of oil. However, based on the current demand for crude oil and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agent and/or any of the purchasers identified by our marketing agent would not have a long-term material adverse effect on our financial position or results of operations. We have required our marketing agent to post a letter of credit covering the estimated proceeds from our revenue transactions, until such proceeds are received.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Recent Accounting Standards</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In December 2011, the FASB issued ASU No.&#160;2011-11, "Disclosures about Offsetting Assets and Liabilities," to improve reporting and transparency of offsetting (netting) assets and liabilities and the related effects on the financial statements. This ASU is effective for fiscal years and interim periods within those years beginning on or after January&#160;1, 2013. We do not expect the adoption of this ASU will have a material effect on our consolidated financial statements.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>3. Acquisition of FPSO</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Effective May&#160;7, 2010, Tullow Ghana Limited, a subsidiary of Tullow Oil&#160;plc, ("Tullow") as Unit Operator for and on behalf of the Jubilee Unit partners under the Unitization and Unit Operating Agreement ("Jubilee UUOA"), entered into the Advance Payments Agreement with MODEC,&#160;Inc. ("MODEC") related to partial funding of the construction of the FPSO. The maturity date of the Advance Payments Agreement was extended from September&#160;15, 2011 through the acquisition date of the FPSO.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On December&#160;29, 2011, the Jubilee Unit partners acquired the FPSO we are using to produce hydrocarbons from the Jubilee Field from MODEC at a cost of $202.6&#160;million net to Kosmos. At the time of the acquisition of the FPSO, our note receivable under the Advance Payments Agreement was $102.8&#160;million. To fund the purchase, we paid $99.8&#160;million in cash and applied the note receivable due under the Advance Payments Agreement to the purchase. As of December&#160;31, 2011 the remaining balance under the Advance Payments Agreement was zero. The acquisition was recorded as an increase to oil and gas property. Prior to the acquisition of the FPSO, the Jubilee Unit partners leased the FPSO from MODEC and the lease costs were recorded as oil and gas production costs.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>4. Jubilee Field Unitization</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Jubilee Field in Ghana covers an area within both the West Cape Three Points ("WCTP") and Deepwater Tano ("DT") Blocks. Consistent with the Ghanaian Petroleum Law, the WCTP and DT Petroleum Agreements ("PAs") and as required by Ghana's Ministry of Energy, it was agreed the Jubilee Field would be unitized for optimal resource recovery. Kosmos and its partners negotiated a comprehensive unit operating agreement, the Jubilee UUOA, to unitize the Jubilee Field and govern each party's respective rights and duties in the Jubilee Unit. The Jubilee UUOA was executed by all parties and was effective July&#160;16, 2009. The tract participations were 50% for each block. Tullow is the Unit Operator, and Kosmos is the Technical Operator for the development of the Jubilee Field. Pursuant to the terms of the Jubilee UUOA, the tract participations are subject to a process of redetermination. The initial redetermination process was completed on October&#160;14, 2011. Any party to the Jubilee UUOA with more than a 10% Jubilee Unit Interest may call for a second redetermination after December&#160;1, 2013. As a result of the initial redetermination process, the tract participation was determined to be 54.36660% for the WCTP Block and 45.63340% for the DT Block. Our Unit Interest was increased from 23.50868% (our percentage after Tullow's acquisition of EO Group Limited ("EO Group")&#8212;see Note&#160;5&#8212;Joint Interest Billings) to 24.07710%. The consolidated financial statements are based on these re-determined tract participations for 2011 and 2012. The 2010 financial statements are based on the tract participation in effect during such year. As a result of the change in our Unit Interest in 2011, we recorded increases in joint interest billings receivables, oil and gas properties, notes receivable, inventories, oil and gas production expenses and general and administrative expenses of $67.6&#160;million, $22.1&#160;million, $2.5&#160;million, $0.4&#160;million, $1.6&#160;million and $0.6&#160;million, respectively, and an increase of $94.9&#160;million in accounts payable as of December&#160;31, 2011. Our capital costs related to the increased Unit Interest was paid during 2012. Although the Jubilee Field is unitized, our participating interest in each block outside the Jubilee Unit area did not change. We remain operator of the WCTP Block outside the Jubilee Unit area.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>5. Joint Interest Billings</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company's joint interest billings consist of receivables from partners with interests in common oil and gas properties operated by the Company. Joint interest billings are classified on the face of the consolidated balance sheets as current receivables based on when collection is expected to occur. As of December&#160;31, 2012 and 2011, we had $21.5&#160;million and $199.7&#160;million, respectively, included in current joint interest billings receivable.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;EO Group's share of costs under the WCTP PA incurred attributable to its WCTP Block interest were paid by Kosmos until first production. EO Group was required to reimburse Kosmos for all development costs paid on EO Group's behalf upon commencement of production in 2010.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On July&#160;22, 2011, Tullow acquired EO Group's entire 3.5% interest in the WCTP PA, including the correlative interest in the Jubilee Unit. As a result of the transaction, we received full repayment of the long-term joint interest billing receivable related to Jubilee Field development costs we paid on EO Group's behalf. The related valuation allowance of $39.8&#160;million was reversed during the second quarter of 2011. In addition, our participation interest in the Jubilee Unit increased 0.01738%. This resulted from the elimination of EO Group's carry by the other Jubilee owners of Ghana National Petroleum Corporation's ("GNPC") additional paying interest of 3.75% in the Jubilee Unit. Our participating interest in the remainder of the WCTP Block was not changed by the transaction and remains 30.875% (before giving effect to GNPC's optional additional paying interest).</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>6. Property and Equipment</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Property and equipment is stated at cost and consisted of the following:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December 31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Oil and gas properties:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Proved properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">682,276</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">607,338</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unproved properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">454,391</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">294,701</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Support equipment and facilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">687,835</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">600,848</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total oil and gas properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,824,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,502,887</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: accumulated depletion</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(314,190</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(135,622</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Oil and gas properties, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,510,312</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,367,265</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 11pt; MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other property</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 27,316</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 17,844</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: accumulated depreciation</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(11,866</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,068</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other property, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,450</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,776</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Property and equipment, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,525,762</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,377,041</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recorded depletion expense of $178.6&#160;million, $135.5&#160;million and zero for the years ended December&#160;31, 2012, 2011 and 2010, respectively. The Company had depletion costs of nil included in crude oil inventory and other receivables as of December&#160;31, 2012 and 2011.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In November 2012, Kosmos finalized the assignment of a 50% participating interest in our blocks offshore Suriname, Block 42 and Block 45, to Chevron Global Energy&#160;Inc. ("Chevron"). Kosmos retains a 50% participating interest in the blocks and remains the operator for the exploration phase of the petroleum contracts. In the fourth quarter of 2012, we received $23.7&#160;million in reimbursement of previously incurred expenses as a result of closing the transaction. Accordingly, exploration expense and general and administrative expense were reduced by $22.7&#160;million and $1.0&#160;million, respectively.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>7. Suspended Well Costs</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table reflects the Company's capitalized exploratory well costs on completed wells as of and during years ended December&#160;31, 2012, 2011 and 2010. The table excludes $29.6&#160;million, $51.4&#160;million and $56.0&#160;million in costs that were capitalized and subsequently expensed during the same year for the years ended December&#160;31, 2012, 2011 and 2010, respectively.</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Beginning balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">114,307</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Additions to capitalized exploratory well costs pending the determination of proved reserves</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">107,527</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">139,949</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">55,706</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Reclassification due to determination of proved reserves</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Capitalized exploratory well costs charged to expense</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,627</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(39,868</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">372,492</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table provides aging of capitalized exploratory well costs based on the date drilling was completed and the number of projects for which exploratory well costs have been capitalized for more than one year since the completion of drilling:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands, except well counts)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exploratory well costs capitalized for a period of one year or less</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">106,635</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">132,838</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">49,022</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exploratory well costs capitalized for a period one to three years</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">265,857</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">134,754</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">118,489</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">372,492</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Number of projects that have exploratory well costs that have been capitalized for a period greater than one year</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, the projects with exploratory well costs capitalized for more than one year since the completion of drilling are related to Mahogany, Teak-1, Teak-2 and Akasa discoveries in the WCTP Block and the Tweneboa, Enyenra and Ntomme discoveries in the DT Block, which are all in Ghana.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Mahogany&#8212;Mahogany, a combined area covering parts of the Mahogany East discovery and the Mahogany Deep discovery, was declared commercial in September 2010, and a PoD was submitted to Ghana's Ministry of Energy as of May&#160;2, 2011. In a letter dated May&#160;16, 2011, the Ministry of Energy did not approve the PoD and requested that the WCTP Block partners take certain steps regarding notifications of discovery and commerciality; and requested other information. The WCTP Block partners believe the combined submission was proper and have held meetings with GNPC which resolved issues relating to the PoD work program. From May 2011, the Ministry of Energy, GNPC and the WCTP Block partners continued working to resolve other differences; however, the WCTP PA contains specific timelines for PoD approval and discussions, which expired at the end of June 2011. On June&#160;30, 2011, we, as Operator of the WCTP Block and on behalf of the WCTP Block partners, delivered a Notice of Dispute to the Ministry of Energy and GNPC as provided under the WCTP PA, which is the initial step in triggering the formal dispute resolution process under the WCTP PA with the government of Ghana regarding approval of the Mahogany PoD. This Notice of Dispute establishes a process for negotiation and consultation for a period of 30&#160;days (or longer if mutually agreed) among senior representatives from the Ministry of Energy, GNPC and the WCTP Block partners to resolve the matter. We and the WCTP Block partners are in discussions with the Ministry of Energy and GNPC to resolve differences on the PoD.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Teak-1 Discovery&#8212;Two appraisal wells have been drilled. Following additional appraisal and evaluation, a decision regarding commerciality of the Teak-1 discovery is expected to be made by the WCTP Block partners in 2013. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana's Ministry of Energy, as required under the WCTP PA.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Teak-2 Discovery&#8212;We have performed a gauge installation on the well and are reprocessing seismic data. Following additional appraisal and evaluation, a decision regarding commerciality of the Teak-2 discovery is expected to be made by the WCTP Block partners in 2013. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana's Ministry of Energy, as required under the WCTP PA.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Akasa Discovery&#8212;We have performed a drill stem test and gauge installation on the well and are analyzing the data. Following additional appraisal and evaluation, a decision regarding commerciality of the Akasa discovery is expected to be made by the WCTP Block partners in 2013. Within six months of such a declaration, a PoD would be prepared and submitted to Ghana's Ministry of Energy, as required under the WCTP PA.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Ntomme Discovery&#8212;During 2012, we submitted a declaration of commerciality and PoD over the Tweneboa, Enyenra and Ntomme ("TEN") discoveries and are awaiting approval from the government of Ghana.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Tweneboa Discovery&#8212;During 2012, we submitted a declaration of commerciality and PoD over the TEN discoveries and are awaiting approval from the government of Ghana.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Enyenra Discovery&#8212;During 2012, we submitted a declaration of commerciality and PoD over the TEN discoveries and are awaiting approval from the government of Ghana.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>8. Accounts Payable and Accrued Liabilities</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At December&#160;31, 2012 and 2011, $128.9&#160;million and $278.0&#160;million, respectively, were recorded for invoices received but not paid. Accrued liabilities were $41.0&#160;million and $37.2&#160;million at December&#160;31, 2012 and 2011, respectively, and consisted of the following:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued exploration, development and production</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,616</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">27,666</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued general and administrative expenses</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,089</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,159</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued taxes other than income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,124</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,095</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued interest</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,208</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income taxes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,192</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,066</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">41,021</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">37,194</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>9. Debt</b></font></p> <p style="FONT-FAMILY: times"><font size="2"><i>Facility</i></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In March 2011, the Company secured a $2.0&#160;billion commercial debt facility (the "Facility") from a number of financial institutions and extinguished the then existing commercial debt facilities. The Facility was syndicated to certain participants of the existing facilities, as well as new participants. The Facility supports our oil and gas exploration, appraisal and development programs and corporate activities.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As part of the debt refinancing in March 2011, the repayment of borrowings under the existing facility attributable to financial institutions that did not participate in the Facility was accounted for as an extinguishment of debt, and existing unamortized debt issuance costs attributable to those participants were expensed. For participants in the existing facility that participated in the Facility, an analysis was performed to determine if an exchange of debt instruments with substantially different terms had occurred. As a result, we recorded a $59.6&#160;million loss on the extinguishment of debt. Additionally, we had $61.3&#160;million of deferred financing costs related to the Facility, which were being amortized over the term of the Facility.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In February 2012, the Company amended the Facility. The terms and conditions of the Facility remained consistent with the original terms and conditions, however, the International Finance Corporation entered the Facility. The total commitment under the Facility remained unchanged at $2.0&#160;billion.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In November 2012, the Company again amended the Facility. As part of the amendment, we cancelled $500.0&#160;million of unused commitments from the Facility, reducing the total commitments to $1.5&#160;billion. As a result of the transaction, $5.3&#160;million of deferred financing costs were written off as a loss on extinguishment of debt. As of December&#160;31, 2012, we have $55.8&#160;million of deferred financing costs related to the Facility, which are being amortized over the term of the Facility.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, borrowings under the Facility totaled $1.0&#160;billion and the undrawn availability under the Facility was $340.4&#160;million. Interest expense was $31.6&#160;million, $45.2&#160;million and $39.0&#160;million (net of capitalized interest of $10.3&#160;million, $4.2&#160;million and $9.8&#160;million) and commitment fees were $6.7&#160;million, $8.0&#160;million and $8.2&#160;million for the years ended December&#160;31, 2012, 2011 and 2010, respectively.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest is the aggregate of the applicable margin (3.25% to 4.75%, depending on the amount of the Facility that is being utilized and the length of time that has passed from the date the Facility was entered into); LIBOR; and mandatory cost (if any, as defined in the Facility). Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six-month intervals after the first day of the interest period). We pay commitment fees on the undrawn and unavailable portion of the total commitments. Commitment fees are equal to 40% per annum of the then-applicable respective margin when a commitment is available for utilization and, equal to 20% per annum of the then-applicable respective margin when a commitment is not available for utilization. We recognize interest expense in accordance with ASC 835&#8212;Interest, which requires interest expense to be recognized using the effective interest method. We determined the effective interest rate based on the estimated level of borrowings under the Facility. Accordingly, we recognized $3.6&#160;million, $3.0&#160;million and zero of additional interest expense, which is included in the Facility interest expense amounts disclosed above, during the years ended December&#160;31, 2012, 2011 and 2010, respectively.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Facility provides a revolving-credit and letter of credit facility for an availability period that expires on May&#160;15, 2014 (in the case of the revolving-credit facility) and on the final maturity date (in the case of the letter of credit facility). The available facility amount is subject to borrowing base constraints and is also constrained by an amortization schedule (once repayments under the Facility begin). Beginning on May&#160;15, 2014, outstanding borrowings will be subject to an amortization schedule. The first required payment could be as early as March&#160;31, 2014, subject to the level of outstanding borrowings and the borrowing base constraints. The Facility has a final maturity date of March&#160;29, 2018.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Kosmos has the right to cancel all the undrawn commitments under the Facility. The amount of funds available to be borrowed under the Facility, also known as the borrowing base amount, is determined each year on March&#160;31 and September&#160;30 as part of a forecast that is prepared by and agreed to by us and the Technical and Modeling Banks. The formula to calculate the borrowing base amount is based, in part, on the sum of the net present values of net cash flows and relevant capital expenditures reduced by certain percentages.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If an event of default exists under the Facility, the lenders can accelerate the maturity and exercise other rights and remedies, including the enforcement of security granted pursuant to the Facility over certain assets held by us.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We were in compliance with the financial covenants contained in the Facility as of the October&#160;15, 2012 (the most recent assessment date).</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In connection with the November 2012 amendment to the Facility, certain terms of the Facility were amended as follows:</font></p> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the addition of certain financial covenants to allow proceeds from any project permitted to be funded by the Facility to be used, in accordance with certain payment priority provisions, to pay amounts of interest due under, and fees and expenses related to, the $300.0&#160;million revolving credit facility ("Corporate Revolver"&#8212;see below) and certain other debt that may be incurred by the Company;</font></dd></dl> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the cancellation of the right of the Company to increase the Facility commitments beyond $2.0&#160;billion (i.e.&#160;the cancellation of the uncommitted $1.0&#160;billion accordion);</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">to permit (i)&#160;subsidiaries of the Company (other than certain of the Company's indirect subsidiaries which hold interests in Kosmos Energy Ghana HC) to incur certain indebtedness and guarantees, and grant certain liens over their assets, and (ii)&#160;the Ghana Obligors to guarantee the Corporate Revolver and certain other debt that may be incurred by the Company on a subordinated basis, in each case to the extent permitted by the Amended and Restated Facility Agreement and the intercreditor agreement entered into by us and the lenders under the Facility and the Corporate Revolver;</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the exclusion of certain of the Company's subsidiaries doing business in Cameroon and Morocco from (i)&#160;the restrictions contained in the charge granted to the lenders under the Facility over the Company's subsidiary, Kosmos Energy Operating, being the intermediate parent of such subsidiaries doing business in Cameroon and Morocco, and (ii)&#160;the receipt of funds from draws under the Facility; and</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">to make certain other amendments to the terms of the Facility.</font></dd></dl></li></ul> <p style="FONT-FAMILY: times"><font size="2"><i>Corporate Revolver</i></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In November 2012, we secured a Corporate Revolver from a number of financial institutions. As of December&#160;31, 2012, we had $260.0&#160;million of commitments under the Corporate Revolver. Availability under the Corporate Revolver may be increased up to $300.0&#160;million if existing lenders increase their commitments or if commitments from new financial institutions are added. The Corporate Revolver is available for all subsidiaries for general corporate purposes and for oil and gas exploration, appraisal and development programs and corporate activities. As of December&#160;31, 2012, we have $8.3&#160;million of deferred financing costs related to the Corporate Revolver, which are being amortized over its term.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, there were no borrowings outstanding under the Corporate Revolver and the undrawn availability under the Corporate Revolver was $260.0&#160;million. Commitment fees were $0.7&#160;million for the year ended December&#160;31, 2012.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest is the aggregate of the applicable margin (6.0%); LIBOR; and mandatory cost (if any, as defined in the Corporate Revolver). Interest is payable on the last day of each interest period (and, if the interest period is longer than six months, on the dates falling at six-month intervals after the first day of the interest period). We pay commitment fees on the undrawn portion of the total commitments. Commitment fees for the lenders are equal to 40% per annum of the respective margin when a commitment is available for utilization.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Corporate Revolver has a 3-year availability period that expires on November&#160;20, 2015. The available amount is not subject to borrowing base constraints. Kosmos has the right to cancel all the undrawn commitments under the Corporate Revolver. The Company is required to repay certain amounts due under the Corporate Revolver with sales of certain subsidiaries or sales of certain assets. If an event of default exists under the Corporate Revolver, the lenders can accelerate the maturity and exercise other rights and remedies, including the enforcement of security granted pursuant to the Corporate Revolver over certain assets held by us.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We were in compliance with the financial covenants contained in the Corporate Revolver as of the November&#160;23, 2012 (the most recent assessment date).</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At December&#160;31, 2012, the scheduled maturities of debt during the five year period and thereafter are as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="36"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="17"><font size="1"><b>Payments Due by Year</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2013</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2014</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2015</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2016</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2017</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Thereafter</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="17"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Facility(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">191,185</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">162,668</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">229,481</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">333,333</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">83,333</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">The scheduled maturities of debt are based on the level of borrowings and the available borrowing base as of December&#160;31, 2012. Any increases or decreases in the level of borrowings or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>10. Derivative Financial Instruments</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We use financial derivative contracts to manage exposures to commodity price and interest rate fluctuations. We do not hold or issue derivative financial instruments for trading purposes.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We apply the provisions of ASC 815&#8212;Derivatives and Hedging, which require each derivative instrument to be recorded on the balance sheet at fair value. If a derivative has not been designated as a hedge or does not otherwise qualify for hedge accounting, it must be adjusted to fair value through earnings. We do not apply hedge accounting treatment to our oil derivative contracts and, therefore, the change in the fair value of these instruments are recognized in earnings in the period the change occurred. These fair value changes are shown in our statement of operations.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Effective June&#160;1, 2010, we discontinued hedge accounting on all interest rate derivative instruments. Therefore, from that date forward, changes in the fair value of the instruments are recognized in earnings during the period of change. The effective portions of the discontinued hedges as of May&#160;31, 2010, are included in AOCI in the equity section of the accompanying consolidated balance sheets, and are being transferred to earnings when the hedged transaction settles.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Oil Derivative Contracts</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We enter into various oil derivative contracts to mitigate our exposure to commodity price risk associated with anticipated future oil production. These contracts currently consist of three-way collars.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We manage market and counterparty credit risk in accordance with our policies and guidelines. In accordance with these policies and guidelines, our management determines the appropriate timing and extent of derivative transactions. We have included an estimate of nonperformance risk in the fair value measurement of our commodity derivative contracts as required by ASC 820&#8212;Fair Value Measurements and Disclosures.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table sets forth the volumes in barrels underlying the Company's outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of December&#160;31, 2012.</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 62%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"130%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="130%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="101"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="32"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Weighted Average Price per Bbl</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 28pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Term(1) <!-- COMMAND=ADD_SCROPPEDRULE,28pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Type of Contract</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>MBbl</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Deferred<br /> Premium</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Floor</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Ceiling</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Calls</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4.82</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">95.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">105.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">125.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,004</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">87.50</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,000</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">90.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.39</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,000</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">90.08</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.22</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">85.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">140.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">In January 2013, we entered into costless three-way collar contracts for 1.0 MMBbl from January 2014 through December 2014 with a floor price of $85.00 per Bbl, a weighted average ceiling price of $115.01 per Bbl and a call price of $140.00 per Bbl. The three-way collar contracts are indexed to Dated Brent prices.</font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2"><b>Provisional Oil Sales</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At December&#160;31, 2012, we had sales volumes of 995.9 MBbl priced at an average of $110.51 per Bbl, after differentials, which are subject to final pricing over the next month.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Interest Rate Swaps Derivative Contracts</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table summarizes our open interest rate swaps, whereby we pay a fixed rate of interest and the counterparty pays a variable LIBOR-based rate, as of December&#160;31, 2012:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="center" width="96"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 18pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Term <!-- COMMAND=ADD_SCROPPEDRULE,18pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted Average<br /> Notional Amount</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted Average<br /> Fixed Rate</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Floating Rate</b></font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2013&#8212;December 2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">227,103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.06</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2014&#8212;December 2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">133,434</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.99</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2015&#8212;December 2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45,319</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.03</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2016&#8212;June 2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">12,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.27</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Effective June&#160;1, 2010, the Company discontinued hedge accounting on all existing interest rate derivative instruments. Prior to June&#160;1, 2010, any ineffectiveness on the interest rate swaps was immaterial; therefore, no amount was recorded in earnings for ineffectiveness. We have included an estimate of nonperformance risk in the fair value measurement of our interest rate derivative contracts as required by ASC 820&#8212;Fair Value Measurements and Disclosures.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following tables disclose the Company's derivative instruments as of December&#160;31, 2012 and 2011 and gain/(loss) from derivatives during the years ended December&#160;31 2012, 2011 and 2010:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="185"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Estimated Fair Value<br /> Asset (Liability)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 59pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Type of Contract <!-- COMMAND=ADD_SCROPPEDRULE,59pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Balance Sheet Location</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives not designated as hedging instruments:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivative asset:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives assets&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivative liability:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(1)(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(17,005</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(20,303</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,372</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,104</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(3)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;long-term</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(659</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,457</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;long-term</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,567</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,970</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 40pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives not designated as hedging instruments&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(22,542</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(32,834</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes $3.4&#160;million and $3.2&#160;million, as of December&#160;31, 2012 and December&#160;31, 2011, respectively of cash settlements made on our purchased puts and swaps with calls which were settled in the month subsequent to period end.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes deferred premiums of $7.6&#160;million and $22.4&#160;million related to commodity derivative contracts as of December&#160;31, 2012 and December&#160;31, 2011, respectively.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(3)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes deferred premiums of $2.4&#160;million and $6.6&#160;million related to commodity derivative contracts as of December&#160;31, 2012 and December&#160;31, 2011, respectively.</font></dd></dl></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="115"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Amount of Gain/(Loss)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times" rowspan="2"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8" rowspan="2"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times" rowspan="2"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" rowspan="2"><font size="1"><b>Location of Gain/<br /> (Loss)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 59pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Type of Contract <!-- COMMAND=ADD_SCROPPEDRULE,59pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives in cash flow hedging relationships:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">AOCI</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">588</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Interest expense</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(163</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,934</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,426</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives in cash flow hedging relationships</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(163</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,934</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,838</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives not designated as hedging instruments:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Oil and gas revenue</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15,652</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,246</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives, net</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(31,490</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(11,777</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(28,319</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Interest expense</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,464</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(9,548</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,967</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives not designated as hedging instruments&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(18,302</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(18,079</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(35,286</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Amounts were reclassified from AOCI into earnings upon settlement.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Amounts represent the mark-to-market portion of our provisional oil sales contracts.</font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In accordance with the mark-to-market method of accounting, the Company recognizes changes in fair values of its derivative contracts as gains or losses in earnings during the period in which they occur. The fair value of the effective portion of the interest rate derivative contracts on May&#160;31, 2010, is reflected in AOCI and is being transferred to interest expense over the remaining term of the contracts. The Company expects to reclassify $1.5&#160;million of gains from AOCI to interest expense within the next 12&#160;months. See Note&#160;11&#8212;Fair Value Measurements for additional information regarding the Company's derivative instruments.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>11. Fair Value Measurements</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In accordance with ASC 820&#8212;Fair Value Measurements and Disclosures, fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. We prioritize the inputs used in measuring fair value into the following fair value hierarchy:</font></p> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Level&#160;1&#8212;quoted prices for identical assets or liabilities in active markets.</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Level&#160;2&#8212;quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data by correlation or other means.</font></dd></dl></li></ul> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Level&#160;3&#8212;unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety.</font></dd></dl></li></ul> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following tables present the Company's assets and liabilities that are measured at fair value on a recurring basis as of December&#160;31, 2012 and 2011, for each fair value hierarchy level:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 67%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"120%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="120%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="87"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="86"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="96"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Fair Value Measurements Using:</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level&#160;1)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Significant Other<br /> Observable Inputs<br /> (Level&#160;2)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Significant<br /> Unobservable Inputs<br /> (Level&#160;3)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market accounts</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(17,664</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(17,664</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,939</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,939</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(22,542</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">150,199</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market accounts(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(24,760</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(24,760</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,074</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,074</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(32,834</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">456,927</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">As reported in our annual report on Form&#160;10-K for the year ended 2011, the Level&#160;1 fair value measurements excluded $27.5&#160;million of restricted cash. The table above has been revised to properly include this amount.</font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;All fair values have been adjusted for nonperformance risk resulting in a decrease of the commodity derivative liabilities of approximately $0.3&#160;million and a decrease of the interest rate derivatives of approximately of $0.2&#160;million as of December&#160;31, 2012. When the accumulated net present value for all of the derivative contracts with a counterparty is in an asset position, the Company uses the counterparty's credit default swap ("CDS") rates to estimate non-performance risk. When the accumulated net present value for all derivative contracts for a counterparty are in a liability position, we use our internal rate of borrowing to estimate our non-performance risk.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The book values of cash and cash equivalents and restricted cash approximate fair value based on Level&#160;1 inputs. Joint interest billings, oil sales and other receivables, and accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying values of our debt approximates fair value since they are subject to short-term floating interest rates that approximate the rates available to us for those periods. Our long-term receivables, if any, after any allowances for doubtful accounts approximate fair value. The estimates of fair value of these items are based on Level&#160;2 inputs.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Commodity Derivatives</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our commodity derivatives represent crude oil three-way collars for notional barrels of oil at fixed Dated Brent oil prices. The values attributable to the our oil derivatives are based on (i)&#160;the contracted notional volumes, (ii)&#160;independent active futures price quotes for Dated Brent, (iii)&#160;a credit-adjusted yield curve applicable to each counterparty by reference to the CDS market and (iv)&#160;an independently sourced estimate of volatility for Dated Brent. The volatility estimate was provided by certain independent brokers who are active in buying and selling oil options and was corroborated by market-quoted volatility factors. The deferred premium is included in the fair market value of the puts and compound options. See Note&#160;10&#8212;Derivative Financial Instruments for additional information regarding the Company's derivative instruments.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Provisional Oil Sales</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The value attributable to the provisional oil sales derivative is based on (i)&#160;the sales volumes subject to provisional pricing and (ii)&#160;an independently sourced forward curve over the term of the provisional pricing period.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Interest Rate Derivatives</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012 and 2011 the Company had interest rate swaps with notional amounts of $253.6&#160;million and $475.0&#160;million, whereby the Company pays a fixed rate of interest and the counterparty pays a variable LIBOR-based rate. The values attributable to the Company's interest rate derivative contracts are based on (i)&#160;the contracted notional amounts, (ii)&#160;LIBOR yield curves provided by independent third parties and corroborated with forward active market-quoted LIBOR yield curves and (iii)&#160;a credit-adjusted yield curve as applicable to each counterparty by reference to the CDS market.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>12. Asset Retirement Obligations</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table summarizes the changes in the Company's asset retirement obligations:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Asset retirement obligations:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Beginning asset retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,670</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,752</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities incurred during period</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,775</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,702</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Revisions in estimated retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,345</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities settled during period</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accretion expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,694</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,216</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending asset retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">27,484</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,670</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Ghanaian legal and regulatory regime regarding oil field abandonment and other environmental matters is evolving. Currently, no Ghanaian environmental regulations expressly require that companies abandon or remove offshore assets although under international industry standards we would do so. The Petroleum Law provides for restoration that includes removal of property and abandonment of wells, but further states the manner of such removal and abandonment will be as provided in the Regulations; however, such Regulations have not been promulgated. Under the Environmental Permit for the Jubilee Field, a decommissioning plan will be prepared and submitted to the Ghana Environmental Protection Agency. ASC 410&#8212;Asset Retirement and Environmental Obligations requires the Company to recognize this liability in the period in which the liability was incurred. We have recorded an asset retirement obligation for fields that have commenced production. Additional asset retirement obligations will be recorded in the period in which wells within such producing fields are commissioned.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>13. Convertible Preferred Units</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2011, contemporaneous with Kosmos Energy&#160;Ltd.'s IPO, the Series&#160;A Convertible Preferred Units ("Series&#160;A Units"), Series&#160;B Convertible Preferred Units ("Series&#160;B Units") and Series&#160;C Convertible Preferred Units ("Series&#160;C Units") of Kosmos Energy Holdings were exchanged into our common shares based on the pre-offering equity value of such interests. This resulted in the Series&#160;A Units, Series&#160;B Units and Series&#160;C Units being exchanged into 163.1&#160;million; 109.8&#160;million; and 4.8&#160;million common shares of Kosmos Energy&#160;Ltd., respectively, or 277.7&#160;million common shares in the aggregate. The common shares have one vote per share and a par value of $0.01. The exchange of the Convertible Preferred Units had the effect of increasing the book value of shareholders' equity by approximately $1.0&#160;billion. Accretion to redemption value of the Convertible Preferred Units was recorded through the date of the exchange. After the date of the exchange, the related accretion on the Convertible Preferred Units ceased to accrue and all rights of the holders with respect to the Convertible Preferred Units terminated, except for the right to receive shares of common shares issuable upon the exchange and the rights entitled to a holder of a common share. Subsequent to this exchange, we have one class of common stock with issued and outstanding shares.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Convertible Preferred Units were issued in separate series at an issue price of $10 per unit, $25 per unit, and $28.25 per unit, respectively. Under the Fourth Amended and Restated Operating Agreement of Kosmos Energy Holdings, as amended, (the "Agreement") governing Kosmos Energy Holdings, the Convertible Preferred Units received distributions, if any, equal to the "Accreted Value" of the units, prior to any distributions to the common unit holders. The Accreted Value was defined in the Agreement as the unit purchase price plus the preferred return amount per unit equal to 7% of the Accreted Value per annum (compounded quarterly) for the first nine years after the year of Kosmos Energy Holdings' initial operating agreement and 14% of the Accreted Value per annum (compounded quarterly) thereafter, unless a monetization event (as defined in the Agreement) occurred at which time the preferred return would revert to 7%. The holders of the Convertible Preferred Units received the accumulated preferred return upon the consummation of our IPO, as defined in the Agreement. The accumulated preferred return on the Convertible Preferred Units was recorded through the date of the offering. The amount was applied to additional paid-in capital first, with the remaining amount applied to the accumulated deficit. The Convertible Preferred Units were classified as mezzanine equity at December&#160;31, 2010, as Kosmos Energy Holdings could not solely control the type of consideration issuable on the exchange and the Convertible Preferred Unit holders controlled Kosmos Energy Holdings' Board of Directors.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recorded accretion on the Convertible Preferred Units of $24.4&#160;million and $77.3&#160;million for the years ended December&#160;31, 2011 and 2010, respectively.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>14. Equity-based Compensation</b></font></p> <p style="FONT-FAMILY: times"><font size="2"><i>Profit Units</i></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Prior to our corporate reorganization, Kosmos Energy Holdings issued common units designated as profit units with a threshold value ranging from $0.85 to $90 to employees, management and directors. Profit units, the defined term in the related agreements, were equity awards that were measured on the grant date and expensed over a vesting period of four years. Founding management and directors vested 20% as of the date of issuance and an additional 20% on the anniversary date for each of the next four years. Profit units issued to employees vested 50% on the second and fourth anniversaries of the issuance date.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following is a summary of the Kosmos Energy Holdings' profit unit activity immediately prior to the corporate reorganization:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Profit Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,910</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.76</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,783</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15.71</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Relinquished</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,503</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.12</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,190</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3.96</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A summary of the status of the Kosmos Energy Holdings' unvested profit units immediately prior to the corporate reorganization were as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Unvested<br /> Profit Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,464</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.60</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,783</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15.71</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,066</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.09</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Relinquished</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,253</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.10</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,928</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11.02</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Effective December&#160;31, 2010, James C. Musselman retired as the Company's Chairman and Chief Executive Officer. The Company entered into a retirement agreement with Mr.&#160;Musselman on December&#160;17, 2010. Pursuant to the retirement agreement, 1.2&#160;million profit units of Kosmos Energy Holdings that were unvested as of his retirement date became fully vested as of such date, resulting in unit-based compensation of $11.5&#160;million in the fourth quarter of 2010.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total profit unit compensation expense recognized in income was zero, $1.2&#160;million and $13.8&#160;million for the years ended December&#160;31, 2012, 2011 and 2010, respectively. There was no income tax benefit realized related to the profit unit compensation expense.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The significant assumptions used to calculate the fair values of the profit units granted over the past three years, as calculated using a binomial tree, were as follows: no dividend yield, expected volatility ranging from approximately 25% to 66%; risk-free interest rate ranging from 1.3% to 5.1%; expected life ranging from 1.2 to 8.1&#160;years; and projected turnover rate of 7.0% for employees and none for management.</font></p> <p style="FONT-FAMILY: times"><font size="2"><i>Restricted Stock Awards and Restricted Stock Units</i></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As part of the corporate reorganization, vested profit units were exchanged for 31.7&#160;million common shares of Kosmos Energy&#160;Ltd., unvested profit units were exchanged for 10.0&#160;million restricted stock awards and the $90 profit units were cancelled. Based on the terms and conditions of the corporate reorganization, the exchange of profit units for common shares of Kosmos Energy&#160;Ltd. resulted in no incremental compensation costs.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In April 2011, the Board of Directors approved a Long-Term Incentive Plan (the "LTIP"), which provides for the granting of incentive awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, among other award types. The LTIP provides for the issuance of 24.5&#160;million shares pursuant to awards under the plan, in addition to the 10.0&#160;million restricted stock awards exchanged for unvested profit units.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table shows the number of shares available for issuance pursuant to awards under the Company's LTIP at December&#160;31, 2012:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Shares</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Approved and authorized awards(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">24,503</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards issued after May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(18,507</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards forfeited(2)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">201</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards available for future grant</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,197</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Excludes 10.0&#160;million restricted stock awards that were exchanged for unvested profit units.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Excludes forfeited restricted stock awards issued in connection with our initial public offering, which include the May&#160;18, 2011 and June&#160;15, 2011 award tranches, as awards forfeited from these tranches are not available for future grant.</font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We record compensation expense equal to the fair value of share-based payments over the vesting periods of the LTIP awards. We recorded compensation expense from awards granted under our LTIP of $83.4&#160;million and $49.8&#160;million during the years ended December&#160;31, 2012 and 2011, respectively. The total tax benefit for the years ended December&#160;31, 2012 and 2011 was $28.8&#160;million and $17.3&#160;million, respectively. Additionally, we expensed a tax shortfall related to equity-based compensation of $8.1&#160;million and zero for the years ended December&#160;31, 2012 and 2011, respectively. Subsequent to May&#160;16, 2011, the Company granted both restricted stock awards and restricted stock units with service vesting criteria and granted both restricted stock awards and restricted stock units with a combination of market and service vesting criteria under the LTIP.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table reflects the outstanding restricted stock awards as of December&#160;31, 2012:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Service Vesting<br /> Restricted Stock<br /> Awards</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Market / Service<br /> Vesting<br /> Restricted Stock<br /> Awards</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exchanged</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10,033</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2.79</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">11,314</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">18.10</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,522</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.30</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(650</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2.70</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.36</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">17,195</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.36</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,522</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.21</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">590</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.05</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">303</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9.45</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(994</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.87</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(291</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.68</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,893</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8.05</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9,898</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">16.92</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,534</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.93</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following table reflects the outstanding restricted stock units as of December&#160;31, 2012:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Service Vesting<br /> Restricted Stock<br /> Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Market / Service<br /> Vesting<br /> Restricted Stock<br /> Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,070</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.60</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">854</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(47</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.88</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(29</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,023</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.59</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">825</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, total equity-based compensation to be recognized on unvested restricted stock awards and restricted stock units is $174.0&#160;million over a weighted average period of 2.55&#160;years.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For equity-based compensation awards, compensation expense is recognized in the Company's financial statements over the awards' vesting periods based on their grant date fair value. The Company utilizes (i)&#160;the closing stock price on the date of grant to determine the fair value of service vesting restricted stock awards and service vesting restricted stock units and (ii)&#160;a Monte Carlo simulation to determine the fair value of restricted stock awards and restricted stock units with a combination of market and service vesting criteria.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For restricted stock awards with a combination of market and service vesting criteria, the number of common shares to be issued is determined by comparing the Company's total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest in up to 100% of the awards granted. The grant date fair value of these awards ranged from $6.70 to $13.57 per award. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and ranged from 41.3% to 56.7%. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant and ranged from 0.5% to 1.1%.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For restricted stock units with a combination of market and service vesting criteria, the number of common shares to be issued is determined by comparing the Company's total shareholder return with the total shareholder return of a predetermined group of peer companies over the performance period and can vest in up to 200% of the awards granted. The grant date fair value of these awards was $15.81 per award. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. The expected volatility utilized in the model was estimated using our historical volatility and the historical volatilities of our peer companies and was 54.0%. The risk-free interest rate was based on the U.S. treasury rate for a term commensurate with the expected life of the grant and was 0.5%.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>15. Income Taxes</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Kosmos Energy&#160;Ltd. is a Bermuda company that is not subject to taxation at the corporate level. We provide for income taxes based on the laws and rates in effect in the countries in which our operations are conducted. The relationship between our pre-tax income or loss from continuing operations and our income tax expense or benefit varies from period to period as a result of various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income is earned and the tax laws in those jurisdictions.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The components of income (loss) before income taxes were as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(11,651</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(4,826</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,342</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,808</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,476</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">31,465</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">95,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(324,256</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income (loss) before income taxes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">34,156</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">99,043</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(322,780</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The components of the provision for income taxes attributable to our income (loss) before income taxes consist of the following:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,148</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,229</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">506</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total current</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,148</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,229</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">506</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(7,908</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(16,857</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(143</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">87,944</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,314</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,471</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">80,036</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">56,457</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,614</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income tax expense (benefit)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">101,184</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">76,686</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,108</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our reconciliation of income expense (benefit) computed by applying our Bermuda statutory rate and the reported effective tax rate or income (loss) from continuing operations is as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax at Bermuda statutory rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign income taxed at different rates</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,277</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">52,922</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(74,841</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Change in valuation allowance</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,362</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,611</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Non-deductible and other items</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,669</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,402</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,344</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax shortfall on equity-based compensation</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,135</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total tax expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">101,184</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">76,686</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,108</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Effective tax rate(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 296.2</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 77.4</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 23.9</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">The effective tax rate during the years ended December&#160;31, 2012, 2011 and 2010 was also impacted by losses of $168.5&#160;million, $86.2&#160;million and $106.5&#160;million, respectively, incurred in jurisdictions in which we are not subject to taxes and, therefore, do not generate any income tax benefits.</font></dd></dl></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Deferred tax assets and liabilities, which are computed on the estimated income tax effect of temporary differences between financial and tax bases in assets and liabilities, are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31.</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax assets:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ghana foreign capitalized operating expenses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,240</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,355</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign net operating losses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">41,569</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">92,154</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equity compensation</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">26,033</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">17,282</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrealized derivative losses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,714</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,622</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">11,047</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,354</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax assets</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">88,603</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">130,767</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Valuation allowance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(63,605</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(49,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax assets, net</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">24,998</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">81,265</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax liabilities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Depletion, depreciation and amortization related to property and equipment</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(84,405</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(60,635</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(84,405</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(60,635</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net deferred tax asset (liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(59,407</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">20,630</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company had net deferred tax assets in Ghana totaling approximately $20.6&#160;million at December&#160;31, 2009 primarily relating to capitalized operating expenses incurred during the development phase of the Jubilee Field. Prior to the commencement of production from the Jubilee Field on November&#160;28, 2010, the Company maintained a full valuation allowance against its net deferred tax asset. However, at December&#160;31, 2010, the Company determined that it was more likely than not that the deferred tax asset for its Ghana operations would be recognized, resulting in the valuation allowance no longer being necessary. Therefore, we released the $20.6&#160;million deferred tax asset valuation allowance and recognized $56.9&#160;million of deferred tax assets generated during 2010.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, our Ghana operations are in a net deferred tax liability position and we expect to utilize the remainder of the Ghana net operating loss carryforward during 2013.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company has recorded a full valuation allowance against the net deferred tax assets in Cameroon, Morocco, Suriname and Mauritania. The net change in the valuation allowance of $14.1&#160;million is due to the additional losses generated in those countries.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company has entered into various petroleum agreements in Morocco. These agreements provide for a tax holiday, at a 0% tax rate, for a period of 10&#160;years beginning on the date of first production. The Company currently has recorded deferred tax assets of $20.4&#160;million, recorded at the Moroccan statutory rate of 30%, with an offsetting valuation allowance of $20.4&#160;million. We will re-evaluate our deferred tax position upon entering the tax holiday period and at such time may reduce the statutory rate applied to the deferred tax assets in Morocco to the extent those deferred tax assets are realized within the tax holiday period.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company has foreign net operating loss carryforwards of $72.7&#160;million, which began to expire in 2012, and $49.2&#160;million, which do not expire.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A subsidiary of the Company files&#160;a U.S. federal income tax return and a Texas margin tax return. In addition to the United States, the Company files income tax returns in the countries in which the Company operates. The Company is open to U.S. federal income tax examinations for tax years 2009 through 2012 and to Texas margin tax examinations for the tax years 2008 through 2012. In addition, the Company is open to income tax examinations for years 2004 through 2012 in its significant other foreign jurisdictions (Ghana, Cameroon and Morocco).</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, the Company had no material uncertain tax positions. The Company's policy is to recognize potential interest and penalties related to income tax matters in income tax expense, but has had no need to accrue any to date.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>16. Net Income (Loss) Per Share</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In the calculation of basic net income per common share attributable to common shareholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common shareholders, if any, after recognizing distributed earnings. We calculate basic net income per common share attributable to common shareholders under the two-class method. The Company's participating securities, which consist solely of service vesting restricted stock awards (See See Note&#160;14&#8212;Equity-based Compensation), do not participate in undistributed net losses because they are not contractually obligated to do so. The computation of diluted net income (loss) per share attributable to common shareholders reflects the potential dilution that could occur if securities or other contracts to issue common shares that are dilutive were exercised or converted into common shares or resulted in the issuance of common shares that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations attributable to common shareholders, securities would not be dilutive to net loss per share and conversion into common shares is assumed not to occur. Diluted net income (loss) per share attributable to common shareholders is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Basic net income (loss) per share attributable to common shareholders is computed as (i)&#160;net income (loss) attributable to common shareholders, (ii)&#160;less income allocable to participating securities (iii)&#160;divided by weighted average basic shares outstanding. The Company's diluted net income (loss) per share attributable to common shareholders is computed as (i)&#160;basic net income (loss) attributable to common shareholders, (ii)&#160;plus diluted adjustments to income allocable to participating securities (iii)&#160;divided by weighted average diluted shares outstanding.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In the periods prior to our Corporate Reorganization, we do not calculate net income per share attributable to common shareholders because we did not have common stock outstanding, as defined in accounting literature, in those periods. For the year ended December&#160;31, 2011, we have presented net income per share attributable to common shareholders from the date of our Corporate Reorganization, May&#160;16, 2011 to December&#160;31, 2011.</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="88"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="88"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 133pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>(In thousands, except per share data) <!-- COMMAND=ADD_SCROPPEDRULE,133pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Year Ended<br /> December&#160;31, 2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>May&#160;16, 2011 -<br /> December&#160;31, 2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net loss attributable to common shareholders/unit holders for the year ended December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,085</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net loss attributable to unit holders for the period from January&#160;1, 2011 to May&#160;15, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(38,191</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income attributable to common shareholders for the period May&#160;16, 2011 to December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">36,106</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Numerator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss) attributable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">36,106</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: Basic income allocable to participating securities(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,643</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic net income (loss) allocable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">34,463</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted adjustments to income allocable to participating securities(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted net income (loss) allocable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">34,472</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Denominator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Weighted average number of shares used to compute net income (loss) per share:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">371,847</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">368,474</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Restricted stock awards(1)(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">133</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">371,847</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">368,607</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss) per share attributable to common shareholders:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.18</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.18</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Our service vesting restricted stock awards represent participating securities because they participate in nonforfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income (loss) per common share calculation in periods we are in a net loss position.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">For the year ended December&#160;31, 2012 and for the period from May&#160;16, 2011 through December&#160;31, 2011, we excluded 15.3&#160;million and 20.5&#160;million outstanding restricted stock awards, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>17. Commitments and Contingencies</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We are involved in litigation, regulatory examinations and administrative proceedings primarily arising in the ordinary course of our business in jurisdictions in which we do business. Although the outcome of these matters cannot be predicted with certainty, management believes none of these matters, either individually or in the aggregate, would have a material effect upon the Company's financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company leases facilities under various operating leases that expire through 2019, including our office space. Rent expense under these agreements, was $4.3&#160;million, $2.3&#160;million and $1.4&#160;million for the years ended December&#160;31, 2012, 2011 and 2010, respectively.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Future minimum rental commitments under these leases at December&#160;31, 2012, are as follows:</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 62%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"130%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="130%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="20"><font size="1"><b>Payments Due By Year(1)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2013</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2014</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2015</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2016</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2017</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Thereafter</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="20"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Operating leases</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,562</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,821</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,921</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,022</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,122</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,223</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,453</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="CENTER" --> <hr style="COLOR: #000000" align="center" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>18. Subsequent Event</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Drilling of the Sapele-1 exploration well was completed in February 2013. The well is not considered a productive well and accordingly will be plugged and abandoned. The amount of costs related to this well which were capitalized at December 31, 2012 were immaterial.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2">Schedule&#160;I&#8212;Condensed Parent Company Financial Statements</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Under the terms of agreements governing the indebtedness of subsidiaries of Kosmos Energy&#160;Ltd. for 2012, 2011 and 2010 (collectively "KEL," the "Parent Company"), such subsidiaries are restricted from making dividend payments, loans or advances to KEL. Schedule&#160;I of Article&#160;5-04 of Regulation&#160;S-X requires the condensed financial information of the Parent Company to be filed when the restricted net assets of consolidated subsidiaries exceed 25&#160;percent of consolidated net assets as of the end of the most recently completed fiscal year.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The following condensed parent-only financial statements of KEL have been prepared in accordance with Rule&#160;12-04, Schedule&#160;I of Regulation&#160;S-X and included herein. The Parent Company's 100% investment in its subsidiaries has been recorded using the equity basis of accounting in the accompanying condensed parent-only financial statements. The condensed financial statements should be read in conjunction with the consolidated financial statements of Kosmos Energy&#160;Ltd. and subsidiaries and notes thereto.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The terms "Kosmos," the "Company," and similar terms when used in the present tense or prospectively or for historical periods since May&#160;16, 2011 refer to Kosmos Energy&#160;Ltd. and its wholly owned subsidiaries and for historical periods prior to May&#160;16, 2011 refer to Kosmos Energy Holdings and its wholly owned subsidiaries, unless the context indicates otherwise. Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or shareholders equity.</font></p> <p style="FONT-FAMILY: times" align="center"><font size="2"><br /></font><font size="2"><b>KOSMOS ENERGY&#160;LTD.<br /> <br /> CONDENSED PARENT COMPANY BALANCE SHEETS<br /> <br /> (In thousands, except share data)<br /></b></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Assets</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current assets:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cash and cash equivalents</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">132,574</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">352,872</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Receivables from subsidiaries</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">373</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Prepaid expenses and other</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">375</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">394</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total current assets</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">133,322</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">353,266</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Investment in subsidiaries at equity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> 888,473</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> 668,618</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred financing costs, net of accumulated amortization of $283 and zero, respectively</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> 7,992</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> &#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Total assets</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,029,787</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,021,884</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Liabilities and shareholders' equity</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current liabilities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accounts payable to subsidiaries</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,158</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">881</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total current liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">881</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,158</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Shareholders' equity:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Preference shares, $0.01 par value; 200,000,000 authorized shares; zero issued at December&#160;31, 2012 and 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Common shares, $0.01 par value; 2,000,000,000 authorized shares; 391,423,703 and 390,530,946 issued at December&#160;31, 2012 and 2011, respectively</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,914</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,905</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Additional paid-in capital</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,712,880</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,629,453</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accumulated deficit</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(683,176</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(616,148</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accumulated other comprehensive income</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,685</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,522</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Treasury stock, at cost, 2,731,941 and 649,818 shares at December&#160;31, 2012 and 2011, respectively</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(8,397</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total shareholders' equity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,028,906</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,020,726</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Total liabilities and shareholders' equity</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,029,787</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,021,884</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times" align="center"><font size="2"><br /></font><font size="2"><b>KOSMOS ENERGY&#160;LTD.<br /> <br /> CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS<br /> <br /> (In thousands)<br /></b></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Revenues and other income:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Oil and gas revenue</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">400</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">248</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">44</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total revenues and other income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">400</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">248</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">44</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Costs and expenses:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">General and administrative</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">93,472</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">54,442</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,187</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">General and administrative&#8212;related party</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(82,370</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(49,378</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,830</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization&#8212;deferred financing costs</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">283</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">659</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other expenses, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">10</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equity in (earnings) losses of subsidiaries</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">55,378</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(27,183</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">207,697</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total costs and expenses</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">67,428</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(22,109</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">245,716</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income (loss) before income taxes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> (67,028</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> )</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 22,357</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> (245,672</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> )</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income tax expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> $</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> (67,028</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> )</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> $</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 22,357</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> $</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> (245,672</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> )</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times" align="center"><font size="2"><br /></font><font size="2"><b>KOSMOS ENERGY&#160;LTD.<br /> <br /> CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS<br /> <br /> (In thousands)<br /></b></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Operating activities</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">22,357</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(245,672</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equity in (earnings) losses of subsidiaries</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">55,378</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(27,183</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">207,697</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equity-based compensation</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">83,423</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">50,966</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13,791</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Amortization</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">283</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Changes in assets and liabilities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">(Increase) decrease in prepaid expenses and other</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">19</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(394</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">(Increase) decrease due to/from related party</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(1,531</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,158</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,878</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Increase (decrease) in accrued liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">136</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(213</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net cash provided by (used in) operating activities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">70,680</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">46,904</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(20,504</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Investing activities</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Investment in subsidiaries</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(275,070</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(274,406</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(30,722</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other property</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net cash used in investing activities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(275,070</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(274,406</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(30,720</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2"><b>Financing activities</b></font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net proceeds from the initial public offering</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">580,374</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Purchase of treasury stock</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(8,378</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred financing costs</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(7,530</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net cash provided by financing activities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(15,908</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">580,374</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net increase (decrease) in cash and cash equivalents</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> (220,298</font></td> <td style="FONT-FAMILY: times"><font size="2"><br /> )</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> 352,872</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2"><br /> (51,224</font></td> <td style="FONT-FAMILY: times"><font size="2"><br /> )</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cash and cash equivalents at beginning of period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">352,872</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">51,224</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Cash and cash equivalents at end of period</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">132,574</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">352,872</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times" align="center"><font size="2"><b>Kosmos Energy&#160;Ltd.<br /> <br /> Valuation and Qualifying Accounts<br /> <br /> For the Years Ended December&#160;31, 2012, 2011 and 2010<br /></b></font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 73%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"110%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="110%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="54"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="55"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="53"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="64"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Additions</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance<br /> January&#160;1,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Charged to<br /> Costs and<br /> Expenses</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Charged To<br /> Other<br /> Accounts</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Deductions<br /> From<br /> Reserves</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Balance<br /> December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Description</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for doubtful receivables</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for deferred tax asset</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">49,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">63,605</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for doubtful receivables</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">39,782</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(39,782</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for deferred tax asset</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">30,140</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,362</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">49,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for doubtful receivables</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">39,782</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">39,782</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Allowance for deferred tax asset</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">33,749</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,609</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">30,140</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Schedules other than Schedule&#160;I and Schedule&#160;II have been omitted because they are not applicable or the required information is presented in the consolidated financial statements or the notes to consolidated financial statements.</font></p></div> 515164000 673092000 21341000 23747000 21539000 199699000 108995000 109475000 3682000 981000 1510312000 1367265000 33281000 27101000 10470000 13913000 1061000 <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 86.78%; PADDING-TOP: 0pt; POSITION: relative; HEIGHT: 147px"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="center" width="56"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Years<br /> Depreciated</b></font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Leasehold improvements</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">1 to 8</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Office furniture, fixtures and computer equipment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">3 to 7</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vehicles</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">5</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> 750118000 1112481000 15450000 9776000 1525762000 1377041000 29884000 3800000 50214000 54847000 2366123000 2551934000 128855000 278006000 41021000 37194000 20377000 24407000 190253000 339607000 1000000000 1110000000 3226000 8427000 27484000 23700000 0.20 -163000 20670000 104137000 47608000 12117000 4896000 1146964000 1191601000 3914000 3905000 1712880000 1629453000 -683176000 -616148000 3685000 3522000 8397000 6000 1028906000 1020726000 2366123000 2551934000 13922000 6582000 0.01 0.01 200000000 200000000 0 0 0.01 0.01 391423703 390530946 2731941 649818 667951000 666912000 1108000 11756000 19203000 9093000 4231000 3150000 775000 5109000 672209000 676780000 9340000 95109000 83551000 97712000 126409000 73126000 160027000 113579000 98967000 185707000 140469000 2423000 8984000 16193000 28827000 52207000 65749000 59582000 -31490000 -11777000 -28319000 -5342000 -59643000 39782000 -39782000 -1475000 -149000 -1094000 638053000 577737000 332120000 34156000 99043000 -322780000 101184000 76686000 -77108000 -67028000 22357000 -245672000 77313000 -67028000 36106000 -322985000 -0.18 -0.18 9000 371847000 371847000 163000 2934000 5426000 -1027000 1027000 1190000 1907000 588000 -65838000 24264000 -245084000 194691000 156662000 31250000 80036000 56457000 -77614000 32229000 91254000 59401000 -18465000 -21014000 -34545000 28594000 83423000 50966000 13791000 -7890000 -2953000 -721000 -176905000 122859000 100605000 7385000 -4176000 12699000 -3443000 635000 12429000 -126401000 89214000 65800000 -1486000 -7308000 11929000 368990000 478943000 444712000 371530000 364909000 -191800000 9994000 4303000 1452000 -13653000 61811000 23678000 -84453000 82000000 -402662000 -385140000 -589975000 1503000000 760000000 3502000 110000000 1438000000 580374000 8378000 8418000 52466000 17315000 -126796000 592908000 742685000 -157928000 572677000 -39090000 41234000 56845000 52472000 22020000 15550000 762000 -102783000 90197000 100415000 139505000 516000 18667000 19108000 -237480000 516000 19070000 -217856000 -615515000 588000 3905000 -614411000 0.36 3914000 1629453000 -616148000 1712880000 3522000 -6000 -49378000 -683176000 3685000 390531000 -8397000 30140000 391424000 411000 8000 13791000 13791000 588000 588000 21143000 132363000 153506000 -245672000 83423000 83423000 163000 163000 893000 63605000 -9000 -13000 13000 8378000 8378000 -67028000 1783000 2686000 1452000 22990000 24442000 345000 580029000 580374000 50966000 50966000 2934000 2934000 148000 14836000 -148000 -6000 6000 22357000 P6M 21300000 23700000 29900000 3800000 33100000 26900000 200000 200000 P1Y P8Y P1Y P8Y P3Y P7Y P5Y P1Y 200000 118800000 231600000 6600000 3000000 500000 1200000 100000 202600000 102800000 99800000 0.5 0.5 0.1 0.5436660 0.2350868 0.2407710 67600000 22100000 2500000 400000 1600000 600000 94900000 0.035 39800000 0.0001738 0.0375 0.30875 682276000 607338000 454391000 294701000 687835000 600848000 1824502000 1502887000 178600000 135500000 29600000 51400000 56000000 372492000 267592000 167511000 114307000 107527000 139949000 2627000 39868000 106635000 132838000 49022000 265857000 134754000 118489000 7 3 3 P30D 2 P6M P6M P6M 20616000 27666000 5089000 2159000 11124000 1095000 1208000 4192000 5066000 19362000 2000000000 8100000 -59600000 61300000 0 LIBOR 0.0325 0.0475 0.40 3600000 3000000 1000000000 340400000 6700000 8000000 8200000 10300000 4200000 9800000 31600000 45200000 39000000 1500000 -163000 -2934000 -4838000 -31490000 -11777000 -28319000 -2464000 -9548000 -6967000 -18302000 -18079000 -35286000 3400000 3200000 7600000 2400000 1061000 17005000 20303000 3372000 4104000 659000 4457000 2567000 3970000 -22542000 -32834000 227103000 133434000 45319000 12500000 0.0206 0.0199 0.0203 0.0227 6-month LIBOR 6-month LIBOR 6-month LIBOR 6-month LIBOR 110.51 4.82 95.00 87.50 135.00 90.00 125.00 115 105 115.39 135.00 277700000 63500000 341200000 10000000 1 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 62%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="130%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="20"><font size="1"><b>Payments Due By Year(1)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2013</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2014</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2015</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2016</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2017</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Thereafter</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="20"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Operating leases</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,562</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,821</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,921</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,022</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,122</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,223</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,453</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="CENTER" --> <hr style="COLOR: #000000" align="center" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts.</font></dd></dl></div></div> 1500000 34500000 580400000 0.50 0.50 172741000 172741000 489761000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 67%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="120%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="87"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="86"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="96"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Fair Value Measurements Using:</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level&#160;1)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Significant Other<br /> Observable Inputs<br /> (Level&#160;2)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Significant<br /> Unobservable Inputs<br /> (Level&#160;3)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Total</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market accounts</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(17,664</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(17,664</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,939</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(5,939</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">172,741</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(22,542</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">150,199</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Assets:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Money market accounts(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(24,760</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(24,760</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate derivatives</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,074</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,074</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">489,761</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(32,834</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">456,927</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">As reported in our annual report on Form&#160;10-K for the year ended 2011, the Level&#160;1 fair value measurements excluded $27.5&#160;million of restricted cash. The table above has been revised to properly include this amount.</font></dd></dl></div></div> 1061000 489761000 1061000 17664000 17664000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Asset retirement obligations:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Beginning asset retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,670</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">16,752</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities incurred during period</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,775</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,702</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Revisions in estimated retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,345</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Liabilities settled during period</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accretion expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,694</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,216</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending asset retirement obligations</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">27,484</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,670</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div></div> 24760000 24760000 5939000 5939000 16752000 8074000 8074000 172741000 -22542000 150199000 489761000 -32834000 456927000 27500000 300000 200000 253600000 475000000 1775000 1702000 2345000 2694000 2216000 163100000 109800000 4800000 1000000000 10 25 28.25 0.07 0.14 24400000 0.85 90 13190000 13910000 2503000 P4Y 0.20 0.20 0.50 3.96 1.76 0.12 2928000 3464000 1783000 1253000 1066000 11.02 1.60 15.71 0.10 1.09 0 1200000 0.25 0.66 0.013 0.051 P1Y2M12D P8Y1M6D 0.070 31700000 90 10000000 18507000 24503000 6197000 83400000 49800000 11314000 3522000 650000 17195000 3522000 590000 303000 1070000 854000 994000 291000 47000 29000 6893000 9898000 3534000 1023000 825000 13.36 13.21 16.92 12.93 10.59 15.81 18.10 2.70 12.05 9.45 10.60 15.81 13.87 12.68 8.05 10.88 15.81 1.00 2.00 0.005 0.011 0.413 0.567 6.70 13.57 0.540 0.005 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Profit Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,910</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.76</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,783</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15.71</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Relinquished</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(2,503</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.12</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">13,190</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3.96</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Shares</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Approved and authorized awards(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">24,503</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards issued after May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(18,507</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards forfeited(2)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">201</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Awards available for future grant</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">6,197</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Excludes 10.0&#160;million restricted stock awards that were exchanged for unvested profit units.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Excludes forfeited restricted stock awards issued in connection with our initial public offering, which include the May&#160;18, 2011 and June&#160;15, 2011 award tranches, as awards forfeited from these tranches are not available for future grant.</font></dd></dl></div></div> 1643000 -67028000 34463000 9000 -67028000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="56"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(11,651</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(4,826</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,342</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,808</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,476</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">31,465</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">95,061</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(324,256</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income (loss) before income taxes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">34,156</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">99,043</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(322,780</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="88"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="88"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 133pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>(In thousands, except per share data) <!-- COMMAND=ADD_SCROPPEDRULE,133pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Year Ended<br /> December&#160;31, 2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>May&#160;16, 2011 -<br /> December&#160;31, 2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net loss attributable to common shareholders/unit holders for the year ended December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,085</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net loss attributable to unit holders for the period from January&#160;1, 2011 to May&#160;15, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(38,191</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income attributable to common shareholders for the period May&#160;16, 2011 to December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">36,106</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Numerator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss) attributable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">36,106</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: Basic income allocable to participating securities(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,643</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic net income (loss) allocable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">34,463</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted adjustments to income allocable to participating securities(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted net income (loss) allocable to common shareholders</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(67,028</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">34,472</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Denominator:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Weighted average number of shares used to compute net income (loss) per share:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">371,847</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">368,474</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Restricted stock awards(1)(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">133</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">371,847</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">368,607</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net income (loss) per share attributable to common shareholders:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Basic</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.18</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Diluted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(0.18</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.09</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Our service vesting restricted stock awards represent participating securities because they participate in nonforfeitable dividends with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Our restricted stock awards with market and service vesting criteria and all restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per common share calculation. Our service vesting restricted stock awards do not participate in undistributed net losses and, therefore, are excluded from the basic net income (loss) per common share calculation in periods we are in a net loss position.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">For the year ended December&#160;31, 2012 and for the period from May&#160;16, 2011 through December&#160;31, 2011, we excluded 15.3&#160;million and 20.5&#160;million outstanding restricted stock awards, respectively, from the computations of diluted net income per share because the effect would have been anti-dilutive.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Principles of Consolidation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The accompanying consolidated financial statements include the accounts of Kosmos Energy&#160;Ltd. and its wholly owned subsidiaries. All intercompany transactions have been eliminated.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Use of Estimates</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Actual results could differ from these estimates.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Reclassifications</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Certain prior period amounts have been reclassified to conform with the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or shareholders equity.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Cash and Cash Equivalents</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Cash and cash equivalents includes demand deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Restricted Cash</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In accordance with our commercial debt facility, we are required to maintain a restricted cash balance that is sufficient to meet the payment of interest and fees for the next six-month period. As of December&#160;31, 2012 and 2011, we had $21.3&#160;million and $23.7&#160;million, respectively, in current restricted cash to meet this requirement. Additionally, as of December&#160;31, 2012 and 2011, we had $29.9&#160;million and $3.8&#160;million, respectively, of long-term restricted cash used to cash collateralize performance guarantees related to our petroleum agreements.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Receivables</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our receivables consist of joint interest billings, oil sales and other receivables for which the Company generally does not require collateral security. Receivables from joint interest owners are stated at amounts due, net of any allowances for doubtful accounts. We determine our allowance by considering the length of time past due, future net revenues of the debtor's ownership interest in oil and natural gas properties we operate, and the owner's ability to pay its obligation, among other things. We did not have any allowances for doubtful accounts as of December&#160;31, 2012 and 2011.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Inventories</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Inventories consisted of $33.1&#160;million and $26.9&#160;million of materials and supplies and $0.2&#160;million and $0.2&#160;million of hydrocarbons as of December&#160;31, 2012 and 2011, respectively. The Company's materials and supplies inventory primarily consists of casing and wellheads and is stated at the lower of cost, using the weighted average cost method, or market.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Hydrocarbon inventory is carried at the lower of cost, using the weighted average cost method, or market. Hydrocarbon inventory costs include expenditures and other charges (including depletion) directly and indirectly incurred in bringing the inventory to its existing condition. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory costs.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Exploration and Development Costs</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company follows the successful efforts method of accounting for its oil and gas properties. Acquisition costs for proved and unproved properties are capitalized when incurred. Costs of unproved properties are transferred to proved properties when a determination that proved reserves have been found. Exploration costs, including geological and geophysical costs and costs of carrying unproved properties, are expensed as incurred. Exploratory drilling costs are capitalized when incurred. If exploratory wells are determined to be commercially unsuccessful or dry holes, the applicable costs are expensed and recorded in exploration expense on the consolidated statement of operations. Costs incurred to drill and equip development wells, including unsuccessful development wells, are capitalized. Costs incurred to operate and maintain wells and equipment and to lift oil and natural gas to the surface are expensed as oil and gas production expense.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company evaluates unproved property, other than well related costs, periodically for impairment. These costs are generally related to the acquisition of leasehold costs. The impairment assessment considers results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If the quantity of potential future reserves determined by such evaluations is not sufficient to fully recover the cost invested in each project, the Company will recognize an impairment loss at that time.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Depletion, Depreciation and Amortization</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Proved properties and support equipment and facilities are depleted using the unit-of-production method based on estimated proved oil and natural gas reserves. Capitalized exploratory drilling costs that result in a discovery of proved reserves and development costs are amortized using the unit-of-production method based on estimated proved oil and natural gas reserves for the related field.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Depreciation and amortization of other property is computed using the straight-line method over the assets' estimated useful lives (not to exceed the lease term for leasehold improvements), ranging from one to eight years.</font></p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times"><font size="2"><!-- COMMAND=ADD_TABLEWIDTH,"100%" --></font></p> <!-- User-specified TAGGED TABLE --> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="center" width="56"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Years<br /> Depreciated</b></font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Leasehold improvements</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">1 to 8</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Office furniture, fixtures and computer equipment</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">3 to 7</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vehicles</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">5</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Amortization of deferred financing costs is computed using the straight-line method over the life of the related debt.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Capitalized Interest</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest costs from external borrowings are capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying assets.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Asset Retirement Obligations</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company accounts for asset retirement obligations as required by ASC 410&#8212;Asset Retirement and Environmental Obligations. Under these standards, the fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement obligation is incurred, the liability is recognized when a reasonable estimate of fair value can be made. If a tangible long-lived asset with an existing asset retirement obligation is acquired, a liability for that obligation is recognized at the asset's acquisition date. In addition, a liability for the fair value of a conditional asset retirement obligation is recorded if the fair value of the liability can be reasonably estimated. We capitalize the asset retirement costs by increasing the carrying amount of the related long-lived asset by the same amount as the liability. We record increases in the discounted abandonment liability resulting from the passage of time in depletion and depreciation in the consolidated statement of operations.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Variable Interest Entity</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A variable interest entity ("VIE"), as defined by ASC 810&#8212;Consolidation, is an entity that by design has insufficient equity to permit it to finance its activities without additional subordinated financial support or equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's performance and will absorb losses or receive benefits from the VIE that could potentially be significant to the VIE.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our wholly owned subsidiary, Kosmos Energy Finance International, meets the definition of a VIE. The Company is the primary beneficiary of this VIE, which is consolidated in these financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Prior to the incorporation of Kosmos Energy Finance International on March&#160;18, 2011, Kosmos Energy Finance International did not have any financial statement activity. Kosmos Energy Finance International's following assets and liabilities are shown on the face of the consolidated balance sheet as of December&#160;31, 2012 and 2011: current restricted cash; deferred financing costs; long-term debt; and long-term derivatives liabilities. At December&#160;31, 2012, Kosmos Energy Finance International had $118.8&#160;million in cash and cash equivalents, $0.2&#160;million in prepaid expenses and other, $0.5&#160;million in accrued liabilities and $6.6&#160;million in other long-term liabilities. At December&#160;31, 2011, Kosmos Energy Finance International had $231.6&#160;million in cash and cash equivalents, $0.1&#160;million in other receivables, $1.2&#160;million in accrued liabilities and $3.0&#160;million in other long-term liabilities.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Impairment of Long-lived Assets</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company reviews its long-lived assets for impairment when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360&#8212;Property, Plant and Equipment requires an impairment loss to be recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment shall be based on the carrying amount of the asset at the date it is tested for recoverability, whether in use or under development. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Assets to be disposed of and assets not expected to provide any future service potential to the Company are recorded at the lower of carrying amount or fair value less cost to sell.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Derivative Instruments and Hedging Activities</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We utilize oil derivative contracts to mitigate our exposure to commodity price risk associated with our anticipated future oil production. These derivative contracts consist of three-way collars. We also use interest rate swap contracts to mitigate our exposure to interest rate fluctuations related to our long-term debt. Our derivative financial instruments are recorded on the balance sheet as either assets or liabilities and are measured at fair value. We do not apply hedge accounting to our oil derivative contracts. Effective June&#160;1, 2010, we discontinued hedge accounting on our interest rate swap contracts. Therefore, from that date forward, the changes in the fair value of the instruments are recognized in earnings during the period of change. The effective portions of the discontinued hedges as of May&#160;31, 2010, are included in accumulated other comprehensive income or loss ("AOCI") in the equity section of the accompanying consolidated balance sheets, and are being transferred to earnings when the hedged transaction settles. See Note&#160;10&#8212;Derivative Financial Instruments.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Estimates of Proved Oil and Natural Gas Reserves</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Reserve quantities and the related estimates of future net cash flows affect our periodic calculations of depletion and assessment of impairment of our oil and natural gas properties. Proved oil and natural gas reserves are the estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future periods from known reservoirs under existing economic and operating conditions. As additional proved reserves are discovered, reserve quantities and future cash flows will be estimated by independent petroleum consultants and prepared in accordance with guidelines established by the Securities and Exchange Commission ("SEC") and the FASB. The accuracy of these reserve estimates is a function of:</font></p> <ul> <li style="list-style: none"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the engineering and geological interpretation of available data;</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">estimates of the amount and timing of future operating cost, production taxes, development cost and workover cost;</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the accuracy of various mandated economic assumptions; and</font> <font size="2"><br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">&#8226;</font></dt> <dd style="FONT-FAMILY: times"><font size="2">the judgments of the persons preparing the estimates.</font></dd></dl></li></ul></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Revenue Recognition</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We use the sales method of accounting for oil and gas revenues. Under this method, we recognize revenues on the volumes sold based on the provisional sales prices. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property. These differences result in a condition known in the industry as a production imbalance. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves on such property. As of December&#160;31, 2012 and 2011, we had no oil and gas imbalances recorded in our consolidated financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our oil and gas revenues are based on provisional price contracts which contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from oil sales at the spot price on the date of sale. The embedded derivative, which is not designated as a hedge, is marked to market through oil and gas revenue each period until the final settlement occurs, which generally is limited to the month after the sale occurs.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Equity-based Compensation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For equity-based compensation awards, compensation expense is recognized in the Company's financial statements over the awards' vesting periods based on their grant date fair value. The Company utilizes (i)&#160;the closing stock price on the date of grant to determine the fair value of service vesting restricted stock awards and restricted stock units and (ii)&#160;a Monte Carlo simulation to determine the fair value of restricted stock awards and restricted stock units with a combination of market and service vesting criteria.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Treasury Stock</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We record treasury stock purchases at cost. All of our treasury stock purchases are from our employees that surrendered shares to the Company to satisfy their minimum tax withholding requirements and were not part of a formal stock repurchase plan. Additionally, treasury stock includes forfeited restricted stock awards granted under our long-term incentive plan.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Income Taxes</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The Company accounts for income taxes as required by ASC 740&#8212;Income Taxes. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary.</font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the technical merits of the position. Accordingly, we measure tax benefits from such positions based on the most likely outcome to be realized.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Foreign Currency Translation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The U.S. dollar is the functional currency for the Company's foreign operations. Foreign currency transaction gains and losses and adjustments resulting from translating monetary assets and liabilities denominated in foreign currencies are included in other expenses. Cash balances held in foreign currencies are not significant, and as such, the effect of exchange rate changes is not material to any reporting period.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Concentration of Credit Risk</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;There are a variety of factors which affect the market for oil, including the proximity and capacity of transportation facilities, demand for oil, the marketing of competitive fuels and the effects of government regulations on oil production and sales. Our revenue can be materially affected by current economic conditions and the price of oil. However, based on the current demand for crude oil and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agent and/or any of the purchasers identified by our marketing agent would not have a long-term material adverse effect on our financial position or results of operations. We have required our marketing agent to post a letter of credit covering the estimated proceeds from our revenue transactions, until such proceeds are received.</font></p></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times"><font size="2"><b>Recent Accounting Standards</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In December 2011, the FASB issued ASU No.&#160;2011-11, "Disclosures about Offsetting Assets and Liabilities," to improve reporting and transparency of offsetting (netting) assets and liabilities and the related effects on the financial statements. This ASU is effective for fiscal years and interim periods within those years beginning on or after January&#160;1, 2013. We do not expect the adoption of this ASU will have a material effect on our consolidated financial statements.</font></p></div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 82.42%; PADDING-TOP: 0pt; POSITION: relative; HEIGHT: 327px"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="61"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December 31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Oil and gas properties:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Proved properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">682,276</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">607,338</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unproved properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">454,391</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">294,701</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Support equipment and facilities</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">687,835</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">600,848</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total oil and gas properties</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,824,502</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,502,887</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: accumulated depletion</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(314,190</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(135,622</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Oil and gas properties, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,510,312</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,367,265</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 11pt; MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other property</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 27,316</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 17,844</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Less: accumulated depreciation</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(11,866</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(8,068</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other property, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15,450</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">9,776</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Property and equipment, net</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,525,762</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,377,041</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 80.79%; PADDING-TOP: 0pt; POSITION: relative; HEIGHT: 307px"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Beginning balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">114,307</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Additions to capitalized exploratory well costs pending the determination of proved reserves</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">107,527</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">139,949</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">55,706</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Reclassification due to determination of proved reserves</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Capitalized exploratory well costs charged to expense</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,627</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(39,868</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">372,492</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands, except well counts)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exploratory well costs capitalized for a period of one year or less</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">106,635</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">132,838</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">49,022</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exploratory well costs capitalized for a period one to three years</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">265,857</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">134,754</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">118,489</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ending balance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">372,492</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">267,592</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">167,511</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Number of projects that have exploratory well costs that have been capitalized for a period greater than one year</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div></div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 86.33%; PADDING-TOP: 0pt; POSITION: relative; HEIGHT: 281px"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued liabilities:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued exploration, development and production</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,616</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">27,666</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued general and administrative expenses</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,089</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,159</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued taxes other than income</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11,124</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,095</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Accrued interest</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,208</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income taxes</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,192</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,066</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times">&#160;</p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">41,021</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">37,194</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 84.23%; PADDING-TOP: 0pt; POSITION: relative; HEIGHT: 209px"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="36"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="17"><font size="1"><b>Payments Due by Year</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2013</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2014</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2015</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2016</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2017</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Thereafter</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="17"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Facility(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">191,185</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">162,668</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">229,481</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">333,333</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">83,333</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">The scheduled maturities of debt are based on the level of borrowings and the available borrowing base as of December&#160;31, 2012. Any increases or decreases in the level of borrowings or decreases in the available borrowing base would impact the scheduled maturities of debt during the next five years and thereafter.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 62%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="130%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="101"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="32"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="39"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="45"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="11"><font size="1"><b>Weighted Average Price per Bbl</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 28pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Term(1) <!-- COMMAND=ADD_SCROPPEDRULE,28pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Type of Contract</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>MBbl</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Deferred<br /> Premium</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Floor</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Ceiling</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Calls</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2013:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4.82</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">95.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">105.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">125.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,004</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">87.50</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,000</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">90.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.39</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,000</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">90.08</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">135.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">2014:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January&#8212;December</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">Three-way collars</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.22</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">85.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">115.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">140.00</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">In January 2013, we entered into costless three-way collar contracts for 1.0 MMBbl from January 2014 through December 2014 with a floor price of $85.00 per Bbl, a weighted average ceiling price of $115.01 per Bbl and a call price of $140.00 per Bbl. The three-way collar contracts are indexed to Dated Brent prices.</font></dd></dl></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="center" width="96"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 18pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Term <!-- COMMAND=ADD_SCROPPEDRULE,18pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted Average<br /> Notional Amount</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted Average<br /> Fixed Rate</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Floating Rate</b></font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2013&#8212;December 2013</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">227,103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.06</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2014&#8212;December 2014</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">133,434</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.99</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2015&#8212;December 2015</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">45,319</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.03</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">January 2016&#8212;June 2016</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">12,500</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2.27</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">%</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="center"><font size="2">6-month LIBOR</font></td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="185"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>Estimated Fair Value<br /> Asset (Liability)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31,</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 59pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Type of Contract <!-- COMMAND=ADD_SCROPPEDRULE,59pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center"><font size="1"><b>Balance Sheet Location</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives not designated as hedging instruments:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivative asset:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives assets&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,061</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivative liability:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(1)(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(17,005</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(20,303</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;current</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,372</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,104</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(3)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;long-term</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(659</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,457</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives liabilities&#8212;long-term</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,567</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,970</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 40pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives not designated as hedging instruments&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(22,542</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(32,834</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes $3.4&#160;million and $3.2&#160;million, as of December&#160;31, 2012 and December&#160;31, 2011, respectively of cash settlements made on our purchased puts and swaps with calls which were settled in the month subsequent to period end.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes deferred premiums of $7.6&#160;million and $22.4&#160;million related to commodity derivative contracts as of December&#160;31, 2012 and December&#160;31, 2011, respectively.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(3)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Includes deferred premiums of $2.4&#160;million and $6.6&#160;million related to commodity derivative contracts as of December&#160;31, 2012 and December&#160;31, 2011, respectively.</font></dd></dl></div></div> <div style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; WIDTH: 80%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="left" width="115"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="50"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="2">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Amount of Gain/(Loss)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times" rowspan="2"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8" rowspan="2"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times" rowspan="2"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" rowspan="2"><font size="1"><b>Location of Gain/<br /> (Loss)</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" nowrap="nowrap" align="left"> <div style="MARGIN-BOTTOM: 0pt; WIDTH: 59pt; BORDER-BOTTOM: #000000 1pt solid"><font size="1"><b>Type of Contract <!-- COMMAND=ADD_SCROPPEDRULE,59pt --></b></font></div></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives in cash flow hedging relationships:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">AOCI</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">588</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate(1)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Interest expense</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(163</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,934</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(5,426</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives in cash flow hedging relationships</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(163</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,934</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(4,838</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Derivatives not designated as hedging instruments:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity(2)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Oil and gas revenue</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15,652</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,246</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Commodity</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Derivatives, net</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(31,490</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(11,777</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(28,319</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Interest rate</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">Interest expense</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(2,464</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(9,548</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,967</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 30pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total derivatives not designated as hedging instruments&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(18,302</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(18,079</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(35,286</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 10%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Amounts were reclassified from AOCI into earnings upon settlement.<br /> <br /></font></dd> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(2)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">Amounts represent the mark-to-market portion of our provisional oil sales contracts.</font></dd></dl></div></div> 33000000 4300000 2300000 1400000 21562000 2821000 2921000 3022000 3122000 3223000 6453000 21148000 20229000 506000 21148000 20229000 506000 -7908000 87944000 -16857000 73314000 -143000 -77471000 0.239 73277000 52922000 -74841000 14103000 19362000 -3611000 5669000 4402000 1344000 8135000 -20600000 4240000 6355000 92154000 41569000 26033000 17282000 11047000 7354000 88603000 130767000 63605000 49502000 24998000 81265000 84405000 60635000 84405000 60635000 59407000 20630000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>December&#160;31.</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="5"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax assets:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Ghana foreign capitalized operating expenses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">4,240</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">6,355</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign net operating losses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">41,569</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">92,154</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Equity compensation</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">26,033</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">17,282</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Unrealized derivative losses</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">5,714</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,622</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Other</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">11,047</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">7,354</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax assets</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">88,603</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">130,767</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Valuation allowance</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(63,605</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(49,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax assets, net</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">24,998</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">81,265</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred tax liabilities:</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Depletion, depreciation and amortization related to property and equipment</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(84,405</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(60,635</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred tax liabilities</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(84,405</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(60,635</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Net deferred tax asset (liability)</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(59,407</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">20,630</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> 283000 P3Y 14100000 0.00 P10Y 0.30 20400000 72700000 49200000 59600000 500000000 1500000000 5300000 55800000 -2934000 0.060 LIBOR 333333000 1.22 85.00 115.00 140.00 15652000 2000000000 2000000000 55706000 2502000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="70"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="82"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Unvested<br /> Profit Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2010</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">3,464</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.60</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,783</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">15.71</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,066</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1.09</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Relinquished</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(1,253</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">0.10</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">2,928</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">11.02</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> 132574000 375000 133322000 1029787000 881000 3914000 1712880000 -683176000 8397000 1028906000 1029787000 352872000 394000 353266000 1021884000 1158000 1158000 3905000 1629453000 -616148000 6000 1020726000 1021884000 0.01 200000000 0 0.01 2000000000 391423703 2731941 0.01 200000000 0 0.01 2000000000 390530946 649818 400000 93472000 -82370000 -6000 -55378000 67428000 -67028000 -67028000 248000 248000 54442000 -10000 27183000 -22109000 22357000 22357000 44000 44000 21187000 16830000 -2000 -207697000 245716000 -245672000 -245672000 83423000 -19000 1531000 136000 70680000 275070000 -275070000 -15908000 -220298000 50966000 394000 -1158000 46904000 274406000 -274406000 580374000 580374000 352872000 13791000 -15000 -3878000 -213000 -20504000 30722000 -2000 -30720000 -51224000 51224000 49502000 -39782000 14103000 39872000 39782000 -3609000 33749000 1.00 0.01 -18167000 -516000 3412000 341177000 1000052000 1002948000 34518000 34585000 64473000 10145000 3765000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax at Bermuda statutory rate</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign income taxed at different rates</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,277</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">52,922</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(74,841</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Change in valuation allowance</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">14,103</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">19,362</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(3,611</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Non-deductible and other items</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">5,669</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">4,402</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">1,344</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Tax shortfall on equity-based compensation</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">8,135</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total tax expense</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">101,184</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">76,686</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,108</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Effective tax rate(1)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 296.2</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 77.4</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2"><br /> 23.9</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2"><br /> %</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" --> <hr style="COLOR: #000000" align="left" width="26%" noshade="noshade" size="1" /></div> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; PADDING-TOP: 0pt; POSITION: relative; TEXT-ALIGN: left"> <dl compact="compact"> <dt style="MARGIN-BOTTOM: -11pt; FONT-FAMILY: times"><font size="2">(1)</font></dt> <dd style="FONT-FAMILY: times"><font size="2">The effective tax rate during the years ended December&#160;31, 2012, 2011 and 2010 was also impacted by losses of $168.5&#160;million, $86.2&#160;million and $106.5&#160;million, respectively, incurred in jurisdictions in which we are not subject to taxes and, therefore, do not generate any income tax benefits.</font></dd></dl></div></div> 5714000 7622000 56900000 260000000 300000000 8300000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="51"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>Years Ended December&#160;31,</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2012</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2011</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>2010</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="8"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Current:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,148</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,229</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">506</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total current</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">21,148</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">20,229</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">506</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Deferred:</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Bermuda</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">United States</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(7,908</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(16,857</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(143</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Foreign&#8212;other</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">87,944</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">73,314</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,471</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="white"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Total deferred</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">80,036</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">56,457</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,614</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="top" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times" valign="bottom"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Income tax expense (benefit)</font></p></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">101,184</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">76,686</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" valign="bottom" align="right"><font size="2">(77,108</font></td> <td style="FONT-FAMILY: times" valign="bottom"><font size="2">)</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> 0 20600000 588000 15300000 -5426000 20400000 201000 191185000 162668000 2000000000 0 24442000 11756000 90.08 115.00 135.00 77300000 1783000 15.71 11500000 373000 881000 283000 659000 283000 8378000 7530000 400000 133000 700000 260000000 P3Y 229481000 10033000 2.79 -4826000 14342000 31465000 -11651000 8808000 95061000 1476000 -324256000 888473000 668618000 13.30 34472000 20500000 1200000 0.09 0.09 368474000 368607000 <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Service Vesting<br /> Restricted Stock<br /> Awards</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Market / Service<br /> Vesting<br /> Restricted Stock<br /> Awards</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Exchanged</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10,033</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2.79</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">11,314</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">18.10</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,522</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.30</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(650</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">2.70</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(3,502</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">0.36</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">17,195</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.36</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,522</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.21</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">590</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.05</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">303</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9.45</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(994</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">13.87</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(291</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.68</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(6,893</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">8.05</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">9,898</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">16.92</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">3,534</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">12.93</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> <div style='font-size:10.0pt;FONT-FAMILY: Times New Roman;'> <p style="FONT-FAMILY: times">&#160;</p> <div style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 15%; WIDTH: 70%; PADDING-TOP: 0pt; POSITION: relative"> <p style="FONT-FAMILY: times">&#160;</p> <div align="center"> <table cellspacing="0" cellpadding="0" width="100%" border="0"> <tr style="HEIGHT: 0px"><!-- TABLE COLUMN WIDTHS SET --> <td style="FONT-FAMILY: times" align="left"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td> <td style="FONT-FAMILY: times" align="right" width="7"></td> <td style="FONT-FAMILY: times" width="77"></td> <td style="FONT-FAMILY: times" width="12"></td><!-- TABLE COLUMN WIDTHS END --></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="2">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Service Vesting<br /> Restricted Stock<br /> Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Market / Service<br /> Vesting<br /> Restricted Stock<br /> Units</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>Weighted-<br /> Average<br /> Grant-Date<br /> Fair Value</b></font></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom"> <th style="FONT-FAMILY: times" align="left"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="center" colspan="2"><font size="1"><b>(In thousands)</b></font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th> <th style="FONT-FAMILY: times" align="left" colspan="2"><font size="1">&#160;</font><br /></th> <th style="FONT-FAMILY: times"><font size="1">&#160;</font></th></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at May&#160;16, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">$</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2011</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Granted</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,070</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.60</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">854</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Forfeited</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(47</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.88</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">(29</font></td> <td style="FONT-FAMILY: times"><font size="2">)</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="white"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 20pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Vested</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">&#8212;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr> <tr style="HEIGHT: 0px" valign="bottom" bgcolor="#CCEEFF"> <td style="FONT-FAMILY: times"> <p style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><font size="2">Outstanding at December&#160;31, 2012</font></p></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">1,023</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">10.59</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">825</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td> <td style="FONT-FAMILY: times" align="right"><font size="2">15.81</font></td> <td style="FONT-FAMILY: times"><font size="2">&#160;</font></td></tr> <tr style="FONT-SIZE: 1.5pt; HEIGHT: 0px" valign="top"> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times" valign="bottom" align="right" colspan="2">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom" align="right">&#160;</td> <td style="FONT-FAMILY: times" valign="bottom">&#160;</td></tr></table></div> <!-- end of user-specified TAGGED TABLE --></div></div> 0.4563340 7992000 83333000 3246000 314190000 135622000 27316000 17844000 11866000 8068000 174000000 28800000 17300000 P2Y6M18D 1 85.00 115.01 140.00 -2085000 1 -38191000 6600000 -4838000 22400000 2.962 0.774 168500000 86200000 106500000 -22700000 -1000000 1000000000 0.40 13800000 3685000 3522000 13800000 1000 1004 1500 1000 995.9 1500 1000