Clayton Williams Energy, Inc. (NASDAQ: CWEI) today filed a Form 8-K
with the Securities and Exchange Commission to provide financial
guidance disclosures for the year ending December 31, 2008. This
guidance was furnished to provide public disclosure of the
estimates being used by the Company to model its anticipated
results of operations for the periods presented. A copy of these
disclosures accompanies this release or may be obtained
electronically by accessing the Company's website at
www.claytonwilliams.com. Clayton Williams Energy, Inc. is an
independent energy company located in Midland, Texas. Except for
historical information, statements made in this release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These statements are based on assumptions and
estimates that management believes are reasonable based on
currently available information; however, management's assumptions
and the Company's future performance are subject to a wide range of
business risks and uncertainties, and there is no assurance that
these goals and projections can or will be met. Any number of
factors could cause actual results to differ materially from those
in the forward-looking statements, including, but not limited to,
production variance from expectations, volatility of oil and gas
prices, the need to develop and replace reserves, the substantial
capital expenditures required to fund operations, exploration
risks, uncertainties about estimates of reserves, competition,
government regulation, costs and results of drilling new projects,
and mechanical and other inherent risks associated with oil and gas
production. These risks and uncertainties are described in the
Company's filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements. Financial Guidance Disclosures Follow
CLAYTON WILLIAMS ENERGY, INC. FINANCIAL GUIDANCE DISCLOSURES FOR
2008 Overview Clayton Williams Energy, Inc. and its subsidiaries
have prepared this document to provide public disclosure of certain
financial and operating estimates in order to permit the
preparation of models to forecast our operating results for each
quarter during the year ending December 31, 2008. These estimates
are based on information available to us as of the date of this
filing, and actual results may vary materially from these
estimates. We do not undertake any obligation to update these
estimates as conditions change or as additional information becomes
available. The estimates provided in this document are based on
assumptions that we believe are reasonable. Until our actual
results of operations for these periods have been compiled and
released, all of the estimates and assumptions set forth herein
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, included in
this document that address activities, events or developments that
we expect, project, believe or anticipate will or may occur in the
future, or may have occurred through the date of this filing,
including such matters as production of oil and gas, product
prices, oil and gas reserves, drilling and completion results,
capital expenditures and other such matters, are forward-looking
statements. Such forward-looking statements involve known and
unknown risks, uncertainties, and other factors that may cause our
actual results, performance, or achievements to be materially
different from the results, performance, or achievements expressed
or implied by such forward-looking statements. Such factors
include, among others, the following: the volatility of oil and gas
prices, the unpredictable nature of our exploratory drilling
results; the reliance upon estimates of proved reserves; operating
hazards and uninsured risks; competition; government regulation;
and other factors referenced in filings made by us with the
Securities and Exchange Commission. As a matter of policy, we
generally do not attempt to provide guidance on: (a) production
which may be obtained through future exploratory drilling; (b) dry
hole and abandonment costs that may result from future exploratory
drilling; (c) the effects of Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and
Hedging Activities"; (d) gains or losses from sales of property and
equipment unless the sale has been consummated prior to the filing
of financial guidance; (e) capital expenditures related to
completion activities on exploratory wells or acquisitions of
proved properties until the expenditures are estimable and likely
to occur; and (f) revenues, expenses and minority interest related
to our investment in Larclay JV. As discussed in "Capital
Expenditures," approximately 32% of our planned 2008 exploration
and development expenditures relate to exploratory prospects.
Exploratory prospects involve a higher degree of risk than
development prospects. To offset the higher risk, we generally
strive to achieve a higher reserve potential and rate of return on
investments in exploratory prospects. Actual results from our
exploratory drilling activities, when ultimately reported, may have
a material impact on the estimates of oil and gas production and
exploration costs stated in this guidance. Summary of Estimates The
following table sets forth certain estimates being used by us to
model our anticipated results of operations for each quarter during
the fiscal year ending December 31, 2008. When a single value is
provided, such value represents the mid-point of the approximate
range of estimates. Otherwise, each range of values provided
represents the expected low and high estimates for such financial
or operating factor. See "Supplementary Information." -0- *T Year
Ending December 31, 2008
-------------------------------------------- Actual Estimated First
Quarter Second Quarter --------------------- --------------------
(Dollars in thousands, except per unit data) Average Daily
Production (a): Gas (Mcf) 60,967 43,000 to 47,000 Oil (Bbls) 7,516
7,900 to 8,100 Natural gas liquids (Bbls) 637 575 to 625 Total gas
equivalents (Mcfe) 109,885 93,850 to 99,350 Differentials: Gas
(Mcf) (b) $0.99 $(0.25) to $(0.50) Oil (Bbls) $(1.53) $(1.50) to
$(2.00) Natural gas liquids (Bbls) $(37.90) $(32.00) to $(38.00)
Costs Variable by Production ($/Mcfe): Production expenses
(including production taxes) $2.06 $2.10 to $2.40 DD&A - Oil
and gas properties $2.77 $2.40 to $2.80 Other Revenues (Expenses):
Natural gas services: Revenues $2,538 $2,500 to $2,700 Operating
costs $(2,515) $(2,400) to $(2,600) Exploration costs: Abandonments
and impairments $(297) $(1,000) to $(3,000) Seismic and other
$(3,675) $(1,500) to $(3,500) DD&A - Other (c) $(247) $(250) to
$(350) General and administrative (c) $(3,211) $(5,500) to $(5,700)
Interest expense (c) $(6,352) $(5,000) to $(5,200) Other income
$655 $250 to $350 Gain on sales of property and equipment, net (d)
$560 $33,300 Effective Federal and State Income Tax Rate: Current
1% 1% Deferred 36% 36% Weighted Average Shares Outstanding (In
thousands): Basic 11,387 11,400 to 12,000 Diluted 11,643 11,400 to
12,600 Year Ending December 31, 2008
-------------------------------------------- Estimated Estimated
Third Quarter Fourth Quarter -----------------------
-------------------- (Dollars in thousands, except per unit data)
Average Daily Production (a): Gas (Mcf) 43,000 to 47,000 42,000 to
46,000 Oil (Bbls) 9,450 to 9,650 10,550 to 10,750 Natural gas
liquids (Bbls) 550 to 600 525 to 575 Total gas equivalents (Mcfe)
103,000 to 108,500 108,450 to 113,950 Differentials: Gas (Mcf) (b)
$(0.25) to $(0.50) $(0.25) to $(0.50) Oil (Bbls) $(1.50) to $(2.00)
$(1.50) to $(2.00) Natural gas liquids (Bbls) $(32.00) to $(38.00)
$(32.00) to $(38.00) Costs Variable by Production ($/Mcfe):
Production expenses (including production taxes) $2.10 to $2.30
$2.00 to $2.20 DD&A - Oil and gas properties $2.50 to $2.90
$2.50 to $2.90 Other Revenues (Expenses): Natural gas services:
Revenues $2,500 to $2,700 $2,500 to $2,700 Operating costs $(2,400)
to $(2,600) $(2,400) to $(2,600) Exploration costs: Abandonments
and impairments $(1,000) to $(3,000) $(1,000) to $(3,000) Seismic
and other $(5,500) to $(7,500) $(5,500) to $(7,500) DD&A -
Other (c) $(250) to $(350) $(250) to $(350) General and
administrative (c) $(4,600) to $(4,800) $(5,200) to $(5,400)
Interest expense (c) $(5,000) to $(5,200) $(5,450) to $(5,650)
Other income $250 to $350 $250 to $350 Gain on sales of property
and equipment, net (d) - - Effective Federal and State Income Tax
Rate: Current 1% 1% Deferred 36% 36% Weighted Average Shares
Outstanding (In thousands): Basic 11,400 to 12,000 11,400 to 12,000
Diluted 11,400 to 12,600 11,400 to 12,600
-------------------------------------------------------------- (a)
Production estimates for the quarters subsequent to March 31, 2008
have been reduced to give effect to the sale of certain properties
in South Louisiana that was consummated in April 2008. (b) Our
actual realized gas price for the first quarter of 2008 was $.99
per Mcf higher than the average NYMEX price for the same period due
primarily to abnormal variances between NYMEX and daily spot prices
for natural gas. Since we cannot predict the likelihood that this
condition will continue throughout the remainder of 2008, we are
estimating differentials to be more in line with historical
averages. (c) Excludes amounts derived from Larclay JV. (d) We
expect to record a gain of approximately $33 million in connection
with the sale described in note (a). In addition, we sold a surplus
well servicing unit in April 2008 and expect to record a gain of
approximately $300,000. *T Capital Expenditures The following table
sets forth, by area, certain information about our actual and
planned exploration and development activities for 2008. -0- *T
Actual Planned Expenditures Expenditures Year 2008 Three Months
Ended Year Ending Percentage March 31, 2008 December 31, 2008 of
Total ------------------ ----------------- ---------- (In
thousands) Permian Basin $21,500 $168,000 49% North Louisiana
14,800 62,600 18% Austin Chalk (Trend) 10,800 55,400 16% East Texas
Bossier 6,900 28,600 8% South Louisiana 2,700 18,700 6%
Utah/California 900 10,900 3% Other 100 300 - ------------------
----------------- ---------- $57,700 $344,500 100%
================== ================= ========== *T We have
increased our estimates for planned exploration and development
expenditures for fiscal 2008 by $88 million from $256.5 million to
$344.5 million. Strong cash flow from operations resulting from
higher commodity prices and rising oil and gas production have
afforded us the opportunity to make this upward change. The
increase in capital spending relates primarily to activities in the
Permian Basin and North Louisiana, including an exploratory well on
the Winnsboro prospect to test the pressured Bossier interval in
this area. Our actual expenditures during fiscal 2008 may be
substantially higher or lower than these estimates since our plans
for exploration and development activities may change during the
year. Other factors, such as prevailing product prices and the
availability of capital resources, could also increase or decrease
the ultimate level of expenditures during fiscal 2008. In 2008, we
plan to allocate a majority of our capital resources to
developmental drilling activities in oil-prone areas such as the
Permian Basin and the Austin Chalk (Trend). In addition, we plan to
continue drilling developmental gas wells in North Louisiana,
primarily on our Terryville prospect. Based on these current
estimates, approximately 68% of our expenditures for exploration
and development activities for fiscal 2008 will relate to
developmental prospects, as compared to approximately 49% in fiscal
2007. Supplementary Information Oil and Gas Production The
following table summarizes, by area, our estimated daily net
production for each quarter during the year ending December 31,
2008. These estimates represent the approximate mid-point of the
estimated production range. -0- *T Daily Net Production for 2008
-------------------------------------- Actual Estimated Estimated
Estimated First Second Third Fourth Quarter Quarter Quarter Quarter
-------- --------- --------- --------- Gas (Mcf): Permian Basin
15,562 15,297 15,771 16,348 North Louisiana 13,596 13,769 14,391
14,011 South Louisiana 23,552 8,527 7,826 6,989 Austin Chalk
(Trend) 2,460 2,132 2,175 2,184 Cotton Valley Reef Complex 5,270
4,813 4,380 4,011 Other 527 462 457 457 -------- ---------
--------- --------- Total 60,967 45,000 45,000 44,000 ========
========= ========= ========= Oil (Bbls): Permian Basin 3,494 4,231
5,217 5,913 North Louisiana 343 330 337 315 South Louisiana 985 132
272 315 Austin Chalk (Trend) 2,635 3,241 3,659 4,042 Other 59 66 65
65 -------- --------- --------- --------- Total 7,516 8,000 9,550
10,650 ======== ========= ========= ========= Natural Gas Liquids
(Bbls): Permian Basin 215 165 163 163 Austin Chalk (Trend) 272 226
227 191 Other 150 209 185 196 -------- --------- ---------
--------- Total 637 600 575 550 ======== ========= =========
========= *T Accounting for Derivatives The following summarizes
information concerning our net positions in open commodity
derivatives applicable to periods subsequent to March 31, 2008. The
settlement prices of commodity derivatives are based on NYMEX
futures prices. Collars: -0- *T Gas Oil -----------------------
---------------------- MMBtu (a) Floor Ceiling Bbls Floor Ceiling
--------- ----- ------- ------- ------ ------- Production Period:
2nd Quarter 2008 426,000 $4.00 $5.15 132,000 $23.00 $25.07 3rd
Quarter 2008 419,000 $4.00 $5.15 128,000 $23.00 $25.07 ---------
------- 845,000 260,000 ========= ======= *T Swaps: -0- *T Gas Oil
---------------- ---------------- MMBtu (a) Price Bbls Price
---------- ----- --------- ------ Production Period: 2nd Quarter
2008 4,650,000 $9.20 330,000 $79.84 3rd Quarter 2008 4,200,000
$9.15 310,000 $78.96 4th Quarter 2008 4,200,000 $9.15 400,000
$82.21 2009 3,600,000 $9.33 1,440,000 $85.30 ---------- ---------
16,650,000 2,480,000 ========== =========
------------------------------------- (a) One MMBtu equals one Mcf
at a Btu factor of 1,000. *T In September 2007, the Company
terminated certain fixed-priced oil swaps covering 90,000 barrels
at a price of $76.65 from April 2008 through December 2008,
resulting in an aggregate loss of approximately $995,000, which
will be paid to the counterparty monthly during 2008. Interest
Rates The following summarizes information concerning our net
positions in open interest rate swaps applicable to periods
subsequent to March 31, 2008. Interest Rate Swaps: -0- *T Fixed
Principal Libor Balance Rates ------------- ----------- Period:
April 1, 2008 to September 24, 2008(a) $100,000,000 4.73% April 1,
2008 to November 3, 2008 $45,000,000 5.73%
--------------------------------------------- (a) In April 2008,
the Company terminated this $100 million interest rate swap for a
cash payment of $899,000. *T We did not designate any of the
derivatives shown in the preceding tables as cash flow hedges under
SFAS 133; therefore, all changes in the fair value of these
contracts prior to maturity, plus any realized gains or losses at
maturity, are recorded as other income (expense). Clayton Williams
Energy, Inc. (NASDAQ: CWEI) today filed a Form 8-K with the
Securities and Exchange Commission to provide financial guidance
disclosures for the year ending December 31, 2008. This guidance
was furnished to provide public disclosure of the estimates being
used by the Company to model its anticipated results of operations
for the periods presented. A copy of these disclosures accompanies
this release or may be obtained electronically by accessing the
Company�s website at www.claytonwilliams.com. Clayton Williams
Energy, Inc. is an independent energy company located in Midland,
Texas. Except for historical information, statements made in this
release are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are based on
assumptions and estimates that management believes are reasonable
based on currently available information; however, management's
assumptions and the Company's future performance are subject to a
wide range of business risks and uncertainties, and there is no
assurance that these goals and projections can or will be met. Any
number of factors could cause actual results to differ materially
from those in the forward-looking statements, including, but not
limited to, production variance from expectations, volatility of
oil and gas prices, the need to develop and replace reserves, the
substantial capital expenditures required to fund operations,
exploration risks, uncertainties about estimates of reserves,
competition, government regulation, costs and results of drilling
new projects, and mechanical and other inherent risks associated
with oil and gas production. These risks and uncertainties are
described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update
or revise any forward-looking statements. Financial Guidance
Disclosures Follow CLAYTON WILLIAMS ENERGY, INC. FINANCIAL GUIDANCE
DISCLOSURES FOR 2008 Overview Clayton Williams Energy, Inc. and its
subsidiaries have prepared this document to provide public
disclosure of certain financial and operating estimates in order to
permit the preparation of models to forecast our operating results
for each quarter during the year ending December�31, 2008. These
estimates are based on information available to us as of the date
of this filing, and actual results may vary materially from these
estimates. We do not undertake any obligation to update these
estimates as conditions change or as additional information becomes
available. The estimates provided in this document are based on
assumptions that we believe are reasonable. Until our actual
results of operations for these periods have been compiled and
released, all of the estimates and assumptions set forth herein
constitute �forward-looking statements� within the meaning of
Section�27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, included in
this document that address activities, events or developments that
we expect, project, believe or anticipate will or may occur in the
future, or may have occurred through the date of this filing,
including such matters as production of oil and gas, product
prices, oil and gas reserves, drilling and completion results,
capital expenditures and other such matters, are forward-looking
statements. Such forward-looking statements involve known and
unknown risks, uncertainties, and other factors that may cause our
actual results, performance, or achievements to be materially
different from the results, performance, or achievements expressed
or implied by such forward-looking statements. Such factors
include, among others, the following: the volatility of oil and gas
prices, the unpredictable nature of our exploratory drilling
results; the reliance upon estimates of proved reserves; operating
hazards and uninsured risks; competition; government regulation;
and other factors referenced in filings made by us with the
Securities and Exchange Commission. As a matter of policy, we
generally do not attempt to provide guidance on: (a) production
which may be obtained through future exploratory drilling; (b) dry
hole and abandonment costs that may result from future exploratory
drilling; (c) the effects of Statement of Financial Accounting
Standards No.�133, �Accounting for Derivative Instruments and
Hedging Activities�; (d) gains or losses from sales of property and
equipment unless the sale has been consummated prior to the filing
of financial guidance; (e) capital expenditures related to
completion activities on exploratory wells or acquisitions of
proved properties until the expenditures are estimable and likely
to occur; and (f) revenues, expenses and minority interest related
to our investment in Larclay JV. As discussed in �Capital
Expenditures,� approximately 32% of our planned 2008 exploration
and development expenditures relate to exploratory prospects.
Exploratory prospects involve a higher degree of risk than
development prospects. To offset the higher risk, we generally
strive to achieve a higher reserve potential and rate of return on
investments in exploratory prospects. Actual results from our
exploratory drilling activities, when ultimately reported, may have
a material impact on the estimates of oil and gas production and
exploration costs stated in this guidance. Summary of Estimates The
following table sets forth certain estimates being used by us to
model our anticipated results of operations for each quarter during
the fiscal year ending December 31, 2008. When a single value is
provided, such value represents the mid-point of the approximate
range of estimates. Otherwise, each range of values provided
represents the expected low and high estimates for such financial
or operating factor. See �Supplementary Information.� � Year Ending
December 31, 2008 Actual � Estimated � Estimated � Estimated First
Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in
thousands, except per unit data) Average Daily Production (a): Gas
(Mcf) 60,967 43,000 to 47,000 43,000 to 47,000 42,000 to 46,000 Oil
(Bbls) 7,516 7,900 to 8,100 9,450 to 9,650 10,550 to 10,750 Natural
gas liquids (Bbls) 637 575 to 625 550 to 600 525 to 575 Total gas
equivalents (Mcfe) 109,885 93,850 to 99,350 103,000 to 108,500
108,450 to 113,950 � Differentials: Gas (Mcf) (b) $ 0.99 $(0.25) to
$(0.50) $(0.25) to $(0.50) $(0.25) to $(0.50) Oil (Bbls) $ (1.53)
$(1.50) to $(2.00) $(1.50) to $(2.00) $(1.50) to $(2.00) Natural
gas liquids (Bbls) $ (37.90) $(32.00) to $(38.00) $(32.00) to
$(38.00) $(32.00) to $(38.00) � Costs Variable by Production
($/Mcfe): Production expenses (including production taxes) $ 2.06
$2.10 to $2.40 $2.10 to $2.30 $2.00 to $2.20 DD&A � Oil and gas
properties $ 2.77 $2.40 to $2.80 $2.50 to $2.90 $2.50 to $2.90 �
Other Revenues (Expenses): Natural gas services: Revenues $ 2,538
$2,500 to $2,700 $2,500 to $2,700 $2,500 to $2,700 Operating costs
$ (2,515) $(2,400) to $(2,600) $(2,400) to $(2,600) $(2,400) to
$(2,600) Exploration costs: Abandonments and impairments $ (297)
$(1,000) to $(3,000) $(1,000) to $(3,000) $(1,000) to $(3,000)
Seismic and other $ (3,675) $(1,500) to $(3,500) $(5,500) to
$(7,500) $(5,500) to $(7,500) DD&A � Other (c) $ (247) $(250)
to $(350) $(250) to $(350) $(250) to $(350) General and
administrative (c) $ (3,211) $(5,500) to $(5,700) $(4,600) to
$(4,800) $(5,200) to $(5,400) Interest expense (c) $ (6,352)
$(5,000) to $(5,200) $(5,000) to $(5,200) $(5,450) to $(5,650)
Other income $ 655 $250 to $350 $250 to $350 $250 to $350 Gain on
sales of property and equipment, net (d) $ 560 $33,300 - -
Effective Federal and State Income Tax Rate: Current 1% 1% 1% 1%
Deferred 36% 36% 36% 36% � Weighted Average Shares Outstanding (In
thousands): Basic 11,387 11,400 to 12,000 11,400 to 12,000 11,400
to 12,000 Diluted 11,643 11,400 to 12,600 11,400 to 12,600 11,400
to 12,600 � (a) Production estimates for the quarters subsequent to
March 31, 2008 have been reduced to give effect to the sale of
certain properties in South Louisiana that was consummated in April
2008. (b) Our actual realized gas price for the first quarter of
2008 was $.99 per Mcf higher than the average NYMEX price for the
same period due primarily to abnormal variances between NYMEX and
daily spot prices for natural gas. Since we cannot predict the
likelihood that this condition will continue throughout the
remainder of 2008, we are estimating differentials to be more in
line with historical averages. (c) Excludes amounts derived from
Larclay JV. (d) We expect to record a gain of approximately $33
million in connection with the sale described in note (a).��In
addition, we sold a surplus well servicing unit in April 2008 and
expect to record a gain of approximately $300,000.�� Capital
Expenditures The following table sets forth, by area, certain
information about our actual and planned exploration and
development activities for 2008. Actual � Planned � Expenditures
Expenditures Year 2008 Three Months Ended Year Ending Percentage
March 31, 2008 December 31, 2008 of Total (In thousands) Permian
Basin $ 21,500 $ 168,000 49% North Louisiana 14,800 62,600 18%
Austin Chalk (Trend) 10,800 55,400 16% East Texas Bossier 6,900
28,600 8% South Louisiana 2,700 18,700 6% Utah/California 900
10,900 3% Other 100 300 - $ 57,700 $ 344,500 100% We have increased
our estimates for planned exploration and development expenditures
for fiscal 2008 by $88�million from $256.5�million to
$344.5�million. Strong cash flow from operations resulting from
higher commodity prices and rising oil and gas production have
afforded us the opportunity to make this upward change. The
increase in capital spending relates primarily to activities in the
Permian Basin and North Louisiana, including an exploratory well on
the Winnsboro prospect to test the pressured Bossier interval in
this area. Our actual expenditures during fiscal 2008 may be
substantially higher or lower than these estimates since our plans
for exploration and development activities may change during the
year. Other factors, such as prevailing product prices and the
availability of capital resources, could also increase or decrease
the ultimate level of expenditures during fiscal 2008. In 2008, we
plan to allocate a majority of our capital resources to
developmental drilling activities in oil-prone areas such as the
Permian Basin and the Austin Chalk (Trend). In addition, we plan to
continue drilling developmental gas wells in North Louisiana,
primarily on our Terryville prospect. Based on these current
estimates, approximately 68% of our expenditures for exploration
and development activities for fiscal 2008 will relate to
developmental prospects, as compared to approximately 49% in fiscal
2007. Supplementary Information Oil and Gas Production The
following table summarizes, by area, our estimated daily net
production for each quarter during the year ending December 31,
2008. These estimates represent the approximate mid-point of the
estimated production range. Daily Net Production for 2008 Actual �
Estimated � Estimated � Estimated First Quarter Second Quarter
Third Quarter Fourth Quarter Gas (Mcf): Permian Basin 15,562 15,297
15,771 16,348 North Louisiana 13,596 13,769 14,391 14,011 South
Louisiana 23,552 8,527 7,826 6,989 Austin Chalk (Trend) 2,460 2,132
2,175 2,184 Cotton Valley Reef Complex 5,270 4,813 4,380 4,011
Other 527 462 457 457 Total 60,967 45,000 45,000 44,000 � Oil
(Bbls): Permian Basin 3,494 4,231 5,217 5,913 North Louisiana 343
330 337 315 South Louisiana 985 132 272 315 Austin Chalk (Trend)
2,635 3,241 3,659 4,042 Other 59 66 65 65 Total 7,516 8,000 9,550
10,650 � Natural Gas Liquids (Bbls): Permian Basin 215 165 163 163
Austin Chalk (Trend) 272 226 227 191 Other 150 209 185 196 Total
637 600 575 550 Accounting for Derivatives The following summarizes
information concerning our net positions in open commodity
derivatives applicable to periods subsequent to March 31, 2008. The
settlement prices of commodity derivatives are based on NYMEX
futures prices. Collars: Gas � Oil MMBtu (a) � Floor � Ceiling Bbls
� Floor � Ceiling Production Period: 2nd Quarter 2008 426,000 $
4.00 $ 5.15 132,000 $ 23.00 $ 25.07 3rd Quarter 2008 419,000 $ 4.00
$ 5.15 128,000 $ 23.00 $ 25.07 845,000 260,000 Swaps: Gas � Oil
MMBtu (a) � Price Bbls � Price Production Period: 2nd Quarter 2008
4,650,000 $ 9.20 330,000 $ 79.84 3rd Quarter 2008 4,200,000 $ 9.15
310,000 $ 78.96 4th Quarter 2008 4,200,000 $ 9.15 400,000 $ 82.21
2009 3,600,000 $ 9.33 1,440,000 $ 85.30 16,650,000 2,480,000 � (a)
One MMBtu equals one Mcf at a Btu factor of 1,000. In September
2007, the Company terminated certain fixed-priced oil swaps
covering 90,000 barrels at a price of $76.65 from April 2008
through December 2008, resulting in an aggregate loss of
approximately $995,000, which will be paid to the counterparty
monthly during 2008. Interest Rates The following summarizes
information concerning our net positions in open interest rate
swaps applicable to periods subsequent to March 31, 2008. Interest
Rate Swaps: � Fixed Principal Libor Balance Rates Period: April 1,
2008 to September 24, 2008(a) $ 100,000,000 4.73% April 1, 2008 to
November 3, 2008 $ 45,000,000 5.73% � (a) In April 2008, the
Company terminated this $100 million interest rate swap for a cash
payment of $899,000. We did not designate any of the derivatives
shown in the preceding tables as cash flow hedges under SFAS�133;
therefore, all changes in the fair value of these contracts prior
to maturity, plus any realized gains or losses at maturity, are
recorded as other income (expense).
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