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Concentrations of Credit Risk
 12 Months Ended
Jun. 30, 2012
Concentrations of Credit Risk  
Concentrations of Credit Risk

 

Note 15 — Concentrations of Credit Risk

 

Major Customers.  We market all of our oil and natural gas production from the properties we operate.  The majority of our operated gas, oil and condensate production is sold to a variety of purchasers under short-term (less than 12 months) contracts at market-based prices. The following table identifies customers from whom we derived 10 percent or more our net oil and natural gas revenues during the years ended June 30, 2012, 2011 and 2010.  Based on the current demand for oil and natural gas and availability of other customers, we do not believe the loss of any of these customers would have a significant effect on our operations or financial condition.

 

 

 

Percent of Total Revenue

 

Customer

 

Year
Ended
June 30,
2012

 

Year
Ended
June 30,
2011

 

Year
Ended
June 30,
2010

 

 

 

 

 

 

 

 

 

Plains Marketing L.P. (includes Delhi production)

 

84

%

60

%

12

%

Enterprise Crude Oil LLC

 

7

%

15

%

31

%

ETC Texas Pipeline, LTD.

 

3

%

12

%

19

%

DCP Midstream, LP

 

2

%

6

%

15

%

Copano Field Services/Upper Gulf Coast, L.P.

 

3

%

7

%

23

%

Flint Hills Resources, LP

 

1

%

—

%

—

%

 

Accounts Receivable.  Substantially all of our accounts receivable result from uncollateralized oil and natural gas sales to third parties in the oil and natural gas industry. This concentration of customers may impact our overall credit risk in that these entities may be similarly affected by changes in economic and other conditions.

 

Cash and Cash Equivalents and Certificates of Deposit.  We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents in high quality money market funds. At times cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”).  Our certificates of deposit are below or at the maximum federally insured limit set by the FDIC.