----

----

| Comparative      Results                      |   | Three      Months Ended |   | Nine      Months Ended |
|-----------------------------------------------|--------|-------------------------|--------|------------------------|
| (In      thousands, except per share amounts) |   | September      30,      |   | September      30,     |
|                                          |   | (unaudited)             |   | (unaudited)            |
|                                          |   | 2008                    |   | 2007                   |   | 2008 |   | 2007 |
| Revenues                                      |   | $326,804                |   | $76,275                |   | $413,954 |   | $210,132 |
| Net      income                               |   | $126,896                |   | $4,459                 |   | $72,256 |   | $25,011 |
| Basic      earnings per common share          |   | $8.59                   |   | $0.30                  |   | $4.90 |   | $1.70 |
| Diluted      earnings per common share        |   | $8.55                   |   | $0.30                  |   | $4.86 |   | $1.68 |

| Reconciliation      of Adjusted Net Income (a non-GAAP measure) |
|-----------------------------------------------------------------|
| See      Page 7 for explanation.                                |
|                                                            |   | Three      Months Ended |   | Nine      Months Ended |
|                                                            |   | September      30, |   | September      30, |
|                                                            |   | (unaudited) |   | (unaudited) |
|                                                            |   | 2008 |   | 2007 |   | 2008 |   | 2007 |
|                                                            |   |   |   |   |   |   |   |   |
| Net      income                                                 |   | $126,896 |   | $4,459 |   | $72,256 |   | $25,011 |
| Unrealized      derivative gain                                 |   | (172,154) |   | (3,854) |   | (45,811) |   | (1,344) |
| Litigation      provision                                       |   | (170) |   | 1,500 |   | 4,025 |   | 1,500 |
| Tax      effect*                                                |   | 61,520 |   | 1,572 |   | 18,489 |   | 507 |
| Adjusted      net income                                        |   | $16,092 |   | $3,677 |   | $48,959 |   | $25,674 |
| Weighted      average diluted shares outstanding                |   | 14,835 |   | 14,827 |   | 14,858 |   | 14,845 |
| Adjusted      diluted earnings per share                        |   | $1.08 |   | $0.25 |   | $3.30 |   | $1.73 |
|                                                            |   |   |   |   |   |   |   |   |
|   *      Tax rate exclusive of discrete items         |   |   |   |   |   |   |   |   |
|                                                            |
|                                                            |   |   |   |   |   |   |

----

| Reconciliation      of Adjusted Cash Flow from Operations (a non-GAAP  measure) |
|---------------------------------------------------------------------------------|
| See      Page 7 for explanation.                                                |
|                                                                            |   | Three      Months Ended |   | Nine      Months Ended |
|                                                                            |   | September      30, |   | September      30, |
|                                                                            |   | (unaudited) |   | (unaudited) |
|                                                                            |   | 2008 |   | 2007 |   | 2008 |   | 2007 |
|                                                                            |   |   |   |   |   |   |   |   |
| Net      Cash provided by (used in) Operating Activities                        |   | $36,062 |   | $43,585 |   | $103,792 |   | ($32,800) |
| Changes      in Assets and Liabilities                                          |   | 23,046 |   | (11,947) |   | 54,911 |   | 101,003 |
|    Related      to Operations                                    |
| Adjusted      Cash Flow from Operations                                         |   | $59,108 |   | $31,638 |   | $158,703 |   | $68,203 |
| Weighted      average diluted shares outstanding                                |   | 14,835 |   | 14,827 |   | 14,858 |   | 14,845 |
| Adjusted      diluted cash flow per share                                       |   | $3.98 |   | $2.13 |   | $10.68 |   | $4.59 |
|                                                                            |   |   |   |   |   |   |   |   |

| Reconciliation      of Adjusted EBITDA (a non-GAAP measure) |
|-------------------------------------------------------------|
| See      Page 7 for explanation.                            |
|                                                        |   | Three      Months Ended |   | Nine      Months Ended |
|                                                        |   | September      30, |   | September      30, |
|                                                        |   | (unaudited) |   | (unaudited) |
|                                                        |   | 2008 |   | 2007 |   | 2008 |   | 2007 |
| Net      Income                                             |   | $126,896 |   | $4,459 |   | $72,256 |   | $25,011 |
| Unrealized      derivative gain                             |   | (172,154) |   | (3,854) |   | (45,811) |   | (1,344) |
| Litigation      provision                                   |   | (170) |   | 1,500 |   | 4,025 |   | 1,500 |
| Interest,      net                                          |   | 7,666 |   | 2,082 |   | 18,646 |   | 2,766 |
| Income      Taxes                                           |   | 68,233 |   | 3,326 |   | 37,222 |   | 15,511 |
| Depreciation                                                |   | 28,645 |   | 20,354 |   | 71,881 |   | 50,857 |
| Adjusted      EBITDA                                        |   | $59,116 |   | $27,867 |   | $158,219 |   | $94,301 |
|                                                        |   |   |   |   |   |   |   |   |

----

| Wells      Drilled                |
|-----------------------------------|
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | Three      Months Ended September 30 |   | Nine      Months Ended September 30 |
|                              | 2008 |   | 2007 |   | 2008 |   | 2007 |
|                              | Gross |   | Net |   | Gross |   | Net |   | Gross |   | Net |   | Gross |   | Net |
|  Rocky      Mountain Region: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg                        | 36.0 |   | 36.0 |   | 41.0 |   | 29.4 |   | 116.0 |   | 91.3 |   | 109.0 |   | 79.5 |
| Piceance                          | 18.0 |   | 18.0 |   | 11.0 |   | 8.5 |   | 50.0 |   | 42.4 |   | 41.0 |   | 36.6 |
| NECO                              | 21.0 |   | 19.6 |   | 39.0 |   | 38.9 |   | 88.0 |   | 78.2 |   | 106.0 |   | 97.9 |
| North      Dakota                 | 1.0 |   | 0.3 |   | 0.0 |   | 0.0 |   | 2.0 |   | 0.5 |   | 2.0 |   | 0.6 |
| Total      Rocky Mountain         | 76.0 |   | 73.9 |   | 91.0 |   | 76.8 |   | 256.0 |   | 212.4 |   | 258.0 |   | 214.6 |
|  Appalachian      Basin      | 18.0 |   | 18.0 |   | 4.0 |   | 4.0 |   | 36.0 |   | 36.0 |   | 4.0 |   | 4.0 |
|  Michigan                    | 1.0 |   | 0.8 |   | 0.0 |   | 0.0 |   | 2.0 |   | 1.6 |   | 2.0 |   | 1.8 |
|  New      York               | 0.0 |   | 0.0 |   | 0.0 |   | 0.0 |   | 1.0 |   | 1.0 |   | 0.0 |   | 0.0 |
|  Fort      Worth Basin       | 1.0 |   | 1.0 |   | 0.0 |   | 0.0 |   | 3.0 |   | 3.0 |   | 0.0 |   | 0.0 |
|  Total                       | 96.0 |   | 93.7 |   | 95.0 |   | 80.8 |   | 298.0 |   | 254.0 |   | 264.0 |   | 220.4 |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Condensed Consolidated Statementsof Operations

|                                                                             | Three      Months EndedSeptember  30,                                                                                       |   | Nine      Months EndedSeptember      30,                                                                                  |
|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
|                                                                             | 2008                                                                                                                                  |   | 2007                                                                                                                      |   | 2008 |   | 2007 |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Revenues:                                                                        |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Oil      and gas sales                                                           |  $    99,422                                                                                                 |   |  $   44,437                                                                                           |   |  $  265,617 |   |  $    117,699 |
| Sales      from natural gas marketing activities                                 | 53,372                                                                                                                                |   |           19,934                                                        |   |      107,638 |   |             71,845 |
| Oil      and gas well drilling operations                                        |                1,232                                       |   |             1,573                                             |   |          7,202 |   |               7,342 |
| Well      operations and pipeline income                                         |                3,356                                       |   |             2,092                                             |   |          8,146 |   |               6,682 |
| Oil      and gas price risk management gain, net                                 |            169,402                                                             |   |             6,345                                             |   |        25,294 |   |               4,442 |
| Other                                                                            |                     20            |   |             1,894                                             |   |               57 |   |               2,122 |
| Total      revenues                                                              |            326,804                                                             |   |           76,275                                                        |   |      413,954 |   |           210,132 |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Costs      and expenses:Oil      & Gas production & well operations cost |              22,173                                                  |   |           12,645                                                        |   |        61,120 |   |             33,308 |
| Cost      of natural gas marketing activities                                    |              54,372                                                  |   |           19,810                                                        |   |      106,610 |   |             70,102 |
| Cost      of oil and gas well drilling operations                                |                   501                       |   |                749                             |   |          1,097 |   |               1,559 |
| Exploration      expense                                                         |              10,212                                                  |   |             5,337                                             |   |        17,962 |   |             14,795 |
| General      and administrative expense                                          |                8,106                                       |   |             7,513                                             |   |        27,160 |   |             21,823 |
| Depreciation,      depletion and amortization                                    |              28,645                                                  |   |           20,354                                                        |   |        71,881 |   |             50,857 |
| Total      costs and expenses                                                    |            124,009                                                             |   |           66,408                                                        |   |      285,830 |   |           192,444 |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Gain      on sale of leaseholds                                                  |                       - |   |                     - |   |                  - |   |             25,600 |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Income      from operations                                                      |            202,795                                                             |   |             9,867                                             |   |      128,124 |   |             43,288 |
| Interest      income                                                             |                   151                       |   |                462                             |   |             497 |   |               2,059 |
| Interest      expense                                                            |              (7,817)                                                 |   |            (2,544)                                                 |   |       (19,143) |   |             (4,825) |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Income      before income taxes                                                  |            195,129                                                             |   |             7,785                                             |   |      109,478 |   |             40,522 |
| Provision      for income taxes                                                  |              68,233                                                  |   |             3,326                                             |   |        37,222 |   |             15,511 |
| Net      income                                                                  |  $    126,896                                                                                                |   |  $      4,459                                                                          |   |  $    72,256 |   |  $       25,011 |
|                                                                             |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Earnings      per share                                                          |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Basic                                                                            |  $     8.59                                                                                             |   |  $      0.      30                                                                     |   |  $     4.90 |   |  $        1.70 |
| Diluted                                                                          |  $    8.55                                                                                                   |   |  $        0.30                                                               |   |  $     4.86 |   |  $        1.68 |
| Weighted      average common shares outstanding                                  |                                                                                                                                  |   |                                                                                                                      |   |   |   |   |
| Basic                                                                            |              14,767                                                  |   |           14,757                                                        |   |        14,749 |   |             14,739 |
| Diluted                                                                          |              14,835                                                  |   |           14,827                                                        |   |        14,858 |   |             14,845 |

----

|                                                                                    | Three      Months Ended September 30,                                                   |   | Nine      Months Ended September 30,                                        |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                                                                                    | 2008                                                                                    |   | 2007                                                                        |   | %      Change |   | 2008 |   | 2007 |   | %      Change |
|                                                                                    |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Oil      (Bbls)                                                                         |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |            2,467                 |   |             602 |   | 309.8% |   |            5,105 |   |            3,816 |   | 33.8% |
| Michigan      Basin                                                                     |               944 |   |          1,003                 |   | -5.9% |   |            2,775 |   |            2,985 |   | -7.0% |
| Rocky      Mountain Region                                                              |        318,722                                       |   |      233,130                                       |   | 36.7% |   |        826,303 |   |        659,951 |   | 25.2% |
| Total                                                                                   |        322,133                                       |   |      234,735                                       |   | 37.2% |   |        834,183 |   |        666,752 |   | 25.1% |
|    Natural      gas (Mcf)                                                |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |        931,150                                       |   |      606,165                                       |   | 53.6% |   |     2,895,499 |   |     1,891,153 |   | 53.1% |
| Michigan      Basin                                                                     |        391,316                                       |   |      421,909                                       |   | -7.3% |   |     1,157,659 |   |     1,263,186 |   | -8.4% |
| Rocky      Mountain Region                                                              |     6,916,539                                                       |   |   5,284,103                                                       |   | 30.9% |   |   18,389,853 |   |   12,334,849 |   | 49.1% |
| Total                                                                                   |     8,239,005                                                       |   |   6,312,177                                                       |   | 30.5% |   |   22,443,011 |   |   15,489,188 |   | 44.9% |
|    Natural      gas equivalent (Mcfe)                                    |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |        945,952                                       |   |      609,777                                       |   | 55.1% |   |     2,926,129 |   |     1,914,049 |   | 52.9% |
| Michigan      Basin                                                                     |        396,980                                       |   |      427,927                                       |   | -7.2% |   |     1,174,309 |   |     1,281,096 |   | -8.3% |
| Rocky      Mountain Region                                                              |     8,828,871                                                       |   |   6,682,883                                                       |   | 32.1% |   |   23,347,671 |   |   16,294,555 |   | 43.3% |
| Total                                                                                   |   10,171,803                                                                  |   |   7,720,587                                                       |   | 31.7% |   |   27,448,109 |   |   19,489,700 |   | 40.8% |
|                                                                                    |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
|                                                                                    | Three      Months Ended September 30,                                                   |   | Nine      Months Ended September 30,                                        |
|                                                                                    | 2008                                                                                    |   | 2007                                                                        |   | %      Change |   | 2008 |   | 2007 |   | %      Change |
|  Average      Sales Price (excluding derivative gains/losses)                      |                                                                                    |   |                                                                        |   |   |   |   |   |
|    Oil      (per Bbl)                                                    |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |  $      108.68                                       |   |  $      68.19                            |   | 59.4% |   |  $      105.93 |   |  $        57.06 |   | 85.6% |
| Michigan      Basin                                                                     |          118.92                            |   |          71.90                 |   | 65.4% |   |          112.38 |   |            60.46 |   | 85.9% |
| Rocky      Mountain Region                                                              |          108.00                            |   |          63.63                 |   | 69.7% |   |          104.45 |   |            55.75 |   | 87.4% |
|           Weighted      average price |          108.04                            |   |          63.67                 |   | 69.7% |   |          104.48 |   |            55.78 |   | 87.3% |
|    Natural      gas (per Mcf)                                            |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |  $        10.40                            |   |  $        6.16                 |   | 68.8% |   |  $          9.99 |   |  $          6.76 |   | 47.8% |
| Michigan      Basin                                                                     |              9.67      |   |            5.24      |   | 84.5% |   |              9.24 |   |              6.04 |   | 53.0% |
| Rocky      Mountain Region                                                              |              7.37      |   |            4.45      |   | 65.6% |   |              7.78 |   |              4.87 |   | 59.8% |
|           Weighted      average price |              7.82      |   |            4.67      |   | 67.5% |   |              8.13 |   |              5.20 |   | 56.3% |
|    Natural      gas equivalent (Mcfe)                                    |                                                                                    |   |                                                                        |   |   |   |   |   |   |   |   |
| Appalachian      Basin                                                                  |  $        10.43                            |   |  $        6.18                 |   | 68.8% |   |  $        10.02 |   |  $          6.79 |   | 47.6% |
| Michigan      Basin                                                                     |              9.84      |   |            5.33      |   | 84.6% |   |              9.38 |   |              6.10 |   | 53.8% |
| Rocky      Mountain Region                                                              |              9.68      |   |            5.74      |   | 68.6% |   |              9.82 |   |              5.95 |   | 65.0% |
|           Weighted      average price |              9.76      |   |            5.76      |   | 69.4% |   |              9.82 |   |              6.04 |   | 62.6% |

----

----