Our Returns
By proactively hedging the prices we receive for a majority of our production and by minimizing lease operating costs and general and administrative expenses through focused activities and increased scale, we have been able to deliver attractive profit margins and financial returns through all phases of the commodity price cycle. Our low-cost structure is the result of management's effective cost-control programs, a high-quality asset base, extensive and competitive services and natural gas processing and transportation infrastructures that exist in our key operating areas.
Cost Control
To control costs and service provider quality, we have made significant investments in our drilling rig and trucking service operations and in our midstream gathering and compression operations. As of June 30, 2010, we operated approximately 25,200 of our 44,400 wells, which delivered approximately 84% of our daily production volume. This large percentage of operated properties provides us with a high degree of operating flexibility and cost control.