Discretionary cash flow is defined as operating income plus depreciation, depletion and amortization expenses, non-cash expenses and impairments, cash portion of other income (expense) less cash interest. The following table provides a reconciliation of discretionary cash flow to operating income for the periods presented.

    Three Months Ended     Six Months Ended

(In thousands)
June 30, June 30,
  2012         2011     2012         2011  
 
Operating income $ (23 ) $ 3,438 $ 2,201 $ 5,941
Depreciation, depletion and amortization 5,380 3,780 10,218 7,210
Impairment 1,306 1,306
Stock-based compensation 722 706 1,199 1,069
Realized gain (loss) on derivative contracts 914 (1,113 ) 866 (1,228 )
Cash interest       (1,150 )       (1,223 )       (2,228 )       (2,716 )
Discretionary cash flow     $ 7,149       $ 5,588       $ 13,562       $ 10,276  

EBITDA is defined as net income (loss) plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of EBITDA to operating income for the periods presented – see consolidated statements of operations for a reconciliation of net income (loss) to operating income.
    Three Months Ended     Six Months Ended

(In thousands)
June 30, June 30,
  2012         2011     2012       2011  
 
Operating income $ (23 ) $ 3,438 $ 2,201 $ 5,941
Depreciation, depletion and amortization 5,380 3,780 10,218 7,210
Impairment 1,306 1,306
Stock-based compensation 722 706 1,199 1,069
Realized gain (loss) on derivative contracts (a)       1,497         (522 )       2,024       (65 )
EBITDA     $ 8,882       $ 7,402       $ 16,948     $ 14,155  

(a) Excludes realized gain (loss) associated with interest rate derivative contract.

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