Our cash flow from operations before changes in working capital was $105 million for the fourth quarter 2012. We use our cash flow and available borrowing capacity in our credit agreement to fund our drilling and development programs and acquire producing properties.
|Three Months Ended||Years Ended|
|December 31,||December 31,|
|Cash flow from operations, GAAP||$||100,009||$||73,209||$||514,786||$||428,543|
|Net change in working capital||(2,621||)||64,551||(126,937||)||103,973|
|Non-recurring other operating items||8,000||(474||)||16,625||21,339|
|Cash flow from operations before changes in working capital and non-recurring other operating items, non-GAAP measure (1)||$||105,388||$||137,286||$||404,474||$||553,855|
(1) Cash flow from operations before working capital changes and non-recurring other operating items are presented because management believes it is a useful financial indicator for companies in our industry. This non-GAAP disclosure is widely accepted as a measure of an oil and natural gas company’s ability to generate cash used to fund development and acquisition activities and service debt or pay dividends. Operating cash flow is not a measure of financial performance pursuant to GAAP and should not be used as an alternative to cash flows from operating, investing, or financing activities. Non-recurring other operating items have been excluded as they do not reflect our on-going operating activities.