Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2012

Variable Interest Entity [Line Items]

The following distributions will be paid on March 1, 2013 to holders of record as of the close of business on February 14, 2013 (in thousands):



Royalty Trust	Total Distribution		Amount to be Distributed to Third-Party Unitholders
Mississippian Trust I	$	18,221	$	13,322
Permian Trust	31,659		22,011
Mississippian Trust II	26,481		15,923
Total	$	76,361	$	51,256

Grey Ranch Plant, L.P

Variable Interest Entity [Line Items]

Assets and Liabilities Included in Consolidated Balance Sheets

GRLP’s assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheets at December 31, 2012 and 2011 consisted of the following (in thousands):



	December 31,
	2012		2011
Cash and cash equivalents	$	1,080	$	1,702
Accounts receivable, net	20		24
Inventory	109		109
Prepaid expenses	64		176
Total current assets	1,273		2,011
Other property, plant and equipment, net	1,246		14,985
Total assets	$	2,519	$	16,996
Accounts payable and accrued expenses	$	274	$	280
Total liabilities	$	274	$	280

Royalty Trusts

Variable Interest Entity [Line Items]

Royalty Trust Initial Public Offerings

The following table summarizes information about each Royalty Trust upon completion of its initial public offering:



	Mississippian Trust I			Permian Trust			Mississippian Trust II
Net proceeds of offering (in millions)	$	336.9		$	580.6		$	587.1
Total outstanding common units	21,000,000			39,375,000			37,293,750
Total outstanding subordinated units	7,000,000			13,125,000			12,431,250
Beneficial interest owned by Company(1)	38.4		%	34.3		%	39.9		%
Liquidation date(2)	12/31/2030			3/31/2031			12/31/2031

____________________


(1)	During the year ended December 31, 2012, the Company sold common units of the Mississippian Trust I and the Permian Trust it owned in transactions exempt from registration under Rule 144 under the Securities Act. These transactions decreased the Company’s beneficial interests in the Royalty Trusts. See further discussion of the unit sales below.


(2)	At the time each Royalty Trust terminates, 50% of the royalty interests conveyed to the Royalty Trust will automatically revert back to the Company, and the remaining 50% will be sold with the proceeds distributed to Royalty Trust unitholders.

Royalty Trusts Distributions

The Royalty Trusts declared and paid quarterly distributions during the years ended December 31, 2012 and 2011 as follows (in millions):



	Year Ended December 31,
	2012		2011
Total distributions	$	275.0	$	91.2
Distributions to third-party unitholders	$	181.7	$	57.4

Open Oil and Natural Gas Commodity Derivative Contracts

The combined volume in the tables below reflects the total volume of the Royalty Trusts’ open oil and natural gas commodity derivative contracts. See Note 14 for further discussion of the derivatives agreement between the Company and each Royalty Trust.

Oil Price Swaps Underlying the Royalty Trust Derivatives Agreements



	Notional (MBbls)	Weighted Average Fixed Price
January 2013 — December 2013	1,814	$	103.03
January 2014 — December 2014	2,053	$	100.78
January 2015 — December 2015	667	$	101.02

Natural Gas Collars Underlying the Royalty Trust Derivatives Agreements



	Notional (MMcf)	Collar Range
January 2013 — December 2013	858	$	4.00	—	$	7.15
January 2014 — December 2014	937	$	4.00	—	$	7.78
January 2015 — December 2015	1,010	$	4.00	—	$	8.55

Oil Price Swaps Underlying the Derivatives Agreements and Novated to the Royalty Trusts



	Notional (MBbls)	Weighted Average Fixed Price
January 2013 — December 2013	1,021	$	103.35
January 2014 — December 2014	799	$	100.59
January 2015 — March 2015	104	$	100.90

Assets and Liabilities Included in Consolidated Balance Sheets

The Royalty Trusts’ assets and liabilities, after considering the effects of intercompany eliminations, included in the accompanying consolidated balance sheets at December 31, 2012 and 2011 consisted of the following (in thousands):



	December 31,
	2012			2011
Cash and cash equivalents(1)	$	7,445		$	3,151
Accounts receivable	28,596			18,357
Derivative contracts	10,286			1,499
Total current assets	46,327			23,007
Investment in royalty interests(2)	1,325,942			858,795
Less: accumulated depletion	(103,746		)	(24,404		)
	1,222,196			834,391
Derivative contracts	7,660			5,668
Total assets	$	1,276,183		$	863,066
Accounts payable and accrued expenses	$	1,101		$	486
Total liabilities	$	1,101		$	486

____________________


(1)	Includes $3.0 million and $2.0 million held by the trustee at December 31, 2012 and 2011, respectively, as reserves for future general and administrative expenses.


(2)	Investment in royalty interests is included in oil and natural gas properties in the accompanying consolidated balance sheets, and was determined by allocating the historical net book value of the Company’s full cost pool based on the fair value of each Royalty Trust’s royalty interests relative to the fair value of the Company’s full cost pool.

Royalty Trusts Ownership Interest

The Company’s beneficial interests in the Royalty Trusts at December 31, 2012 and 2011 were as follows:



	December 31,
	2012		2011
Mississippian Trust I	26.9	%	38.4	%
Permian Trust	30.5	%	34.3	%
Mississippian Trust II	39.9	%	N/A

Pinon Gathering Company LLC

Variable Interest Entity [Line Items]

Amounts Due To/From PGC

The amounts due from and due to PGC as of December 31, 2012 and 2011 included in the accompanying consolidated balance sheets are as follows (in thousands):



	December 31,
	2012		2011
Accounts receivable due from PGC	$	1,976	$	3,205
Accounts payable due to PGC	$	8,444	$	4,603