Cash flow

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,
(in thousands) 2012 2011 2012 2011
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.

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