Outlook

In 2011, we expect to produce 790 to 840 million cubic feet equivalent of natural gas, which is up 7 percent above 2010 levels. Our activities in 2011 will focus on four core programs—Eagle Ford, Haynesville, Altamont and Wolfcamp. Our capital budget will be in line with 2010 levels at approximately $1.3 billion, 90 to 95 percent of which will be allocated to domestic programs. More than half of our domestic capital will be allocated to oil programs. The remainder of domestic capital will be focused primarily on the Haynesville shale program, which provides solid returns even in a low natural gas price environment.

*Cautionary Statement Regarding Forward-looking Statements