Superior Execution of Business Strategies:
Our overriding strategic goal is to maximize long-term shareholder return. We plan to achieve this goal by continually executing two tactical objectives:

• Investing shareholder operating cash flow into capital projects that produce rates of return that exceed our weighted average cost of capital; and
• Further boosting shareholder returns beyond that provided by capital expenditures by utilizing free cash to acquire assets, pay dividends, or repurchase our shares.

In order to successfully achieve the strategy and apply the tactics above, it is necessary to focus on the following ten core competencies:

• Working accident free within our employee and contractor base;
• Applying and enforcing clear internal controls;
• Applying proactive environmental stewardship;
• Attracting and retaining talented and focused professionals;
• Continuing our legacy of technical leadership with regard to coal bed methane extraction;
• Demonstrating effective cost control;
• Developing our proved undeveloped reserves and unproven reserves efficiently;
• Optimizing the advantages associated with our midstream gathering segment;
• Developing best in class capital budgeting, long-range planning, and valuation processes and procedures; and
• Maintaining avenues of liquidity and a strong balance sheet.

Subsequent impacts of the strategy, tactics, and core competencies may be increased reserves, higher capital expenditures levels, increased production, and higher net income. However, these are not stand-alone or over-riding objectives but instead residual results of efficient execution.