The table below summarizes our liquidity at September 30, 2012, and our liquidity at September 30, 2012, reflecting the October 2012 borrowing base increase to $280.0 million from $270.0 million.

Unaudited Liquidity Data

Liquidity at September 30, 2012

Liquidity with Borrowing Base Increase at September 30, 2012
(in thousands)
Borrowing base $ 270,000 $ 280,000
Cash and cash equivalents 841 841
Outstanding letters of credit (350 ) (350 )
Long-term debt   (47,600 )   (47,600 )
Liquidity $ 222,891   $ 232,891

Long-Term Debt-to-Capital

Long-term debt-to-capital ratio is calculated as of September 30, 2012, and by dividing long-term debt (GAAP) by the sum of total stockholders’ equity (GAAP) and long-term debt (GAAP). We use the long-term debt-to-capital ratio as a measurement of our overall financial leverage. However, this ratio has limitations. This ratio can vary from year-to-year for the Company and can vary among companies based on what is or is not included in the ratio on a company’s financial statements. This ratio is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website.

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