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43
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Financial Data
The following table sets forth certain information regarding the production volumes, natural gas, oil and natural
gas liquids (NGL) sales, average sales prices received, other operating income and expenses for the periods indicated:
Years Ended December 31,
2012 2011 2010
Net Production:
Natural gas (bcf) .................................................................................... 1,128.8 1,004.1 924.9
Oil (mmbbl) ............................................................................................ 31.3 17.0 10.9
NGL (mmbbl) ......................................................................................... 17.6 14.7 7.5
Natural gas equivalent (bcfe)(a) .................................................................... 1,422.1 1,194.2 1,035.2
Natural Gas, Oil and NGL Sales ($ in millions):
Natural gas sales ................................................................................... $ 2,004 $ 3,133 $ 3,169
Natural gas derivatives – realized gains (losses) .................................. 328 1,656 1,982
Natural gas derivatives – unrealized gains (losses) .............................. (331) (669) 425
Total natural gas sales ...................................................................... 2,001 4,120 5,576
Oil sales ................................................................................................. 2,829 1,523 822
Oil derivatives – realized gains (losses) ................................................ 39 (60) 74
Oil derivatives – unrealized gains (losses) ............................................ 857 (128) (1,033)
Total oil sales .................................................................................... 3,725 1,335 (137)
NGL sales .............................................................................................. 526 603 257
NGL derivatives – realized gains (losses) ............................................. (9) (42) —
NGL derivatives – unrealized gains (losses) ......................................... 35 8 (49)
Total NGL sales ................................................................................. 552 569 208
Total natural gas, oil and NGL sales ............................................. $ 6,278 $ 6,024 $ 5,647
Average Sales Price (excluding gains (losses) on derivatives):
Natural gas ($ per mcf) .......................................................................... $ 1.77 $ 3.12 $ 3.43
Oil ($ per bbl) ......................................................................................... $ 90.49 $ 89.80 $ 75.29
NGL ($ per bbl) ...................................................................................... $ 29.89 $ 40.96 $ 34.38
Natural gas equivalent ($ per mcfe) ...................................................... $ 3.77 $ 4.40 $ 4.10
Average Sales Price (excluding unrealized gains (losses) on
derivatives):
Natural gas ($ per mcf) .......................................................................... $ 2.07 $ 4.77 $ 5.57
Oil ($ per bbl) ......................................................................................... $ 91.74 $ 86.25 $ 82.10
NGL ($ per bbl) ...................................................................................... $ 29.37 $ 38.12 $ 34.38
Natural gas equivalent ($ per mcfe) ...................................................... $ 4.02 $ 5.70 $ 6.09
Other Operating Income(b) ($ in millions):
Marketing, gathering and compression net margin................................ $ 119 $ 123 $ 127
Oilfield services net margin ................................................................... $ 142 $ 119 $ 32
Other Operating Income(b) ($ per mcfe):
Marketing, gathering and compression net margin................................ $ 0.08 $ 0.10 $ 0.12
Oilfield services net margin ................................................................... $ 0.10 $ 0.10 $ 0.03