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Adjusted Net Income was $67.5 million, or $1.71 and $1.69 per basic and diluted share, respectively, during the year ended December 31, 2012, as compared to $38.7 million, or $0.99 and $0.98 per basic and diluted share, respectively, during the year ended December 31, 2011. The Company reported net income of $55.5 million, or $1.40 and $1.39 per basic and diluted share, respectively, for the year ended December 31, 2012, as compared to net income of $36.6 million, or $0.94 and $0.92 per basic and diluted share for the same period of 2011.

EBITDA was $319.0 million, or $8.06 and $7.97 per basic and diluted share, respectively, during the year ended December 31, 2012, as compared to $172.1 million, or $4.40 and $4.34 per basic and diluted share, respectively, for the same period of 2011.

Lease operating expenses were $31.5 million ($3.34 per Boe) for the year ended December 31, 2012 as compared to lease operating expenses of $28.3 million ($3.77 per Boe) for the year ended December 31, 2011. Lease operating expenses increased $3.2 million primarily due to increased production from new wells partially offset by the Atlas and KKR sales. The decrease in operating cost per Boe is due to the Atlas and KKR sales (which were higher operating cost per Boe properties as compared to our remaining Barnett properties) partially offset by the higher operating cost per Boe associated with oil production.

Production taxes were $13.5 million (or 3.7% of oil and gas revenues) for the year ended December 31, 2012 as compared to $5.7 million (or 2.8% of oil and gas revenues) for the year ended December 31, 2011. The increase in production taxes is due primarily to increased oil production. The increase in production taxes as a percentage of oil and gas revenues was primarily due to increased oil production, which has a higher effective production tax rate as compared to our natural gas production.

Ad valorem taxes increased to $9.8 million ($1.04 per Boe) for the year ended December 31, 2012 from $3.6 million ($0.48 per Boe) for the same period of 2011. The increase in ad valorem taxes is due primarily to new oil wells drilled in 2011 and the Commonwealth of Pennsylvania's February 2012 enactment of an "impact fee" on the drilling of unconventional natural gas wells. Because of the retroactive nature of the impact fee, approximately $1.0 million of ad valorem taxes recognized during 2012 is attributable to wells drilled prior to 2012. The increase in ad valorem taxes per Boe is due primarily to new oil wells drilled in 2011, which have higher property tax valuations as compared to our natural gas wells, as well as the recognition of the impact fee in 2012.

General and administrative expense was $32.6 million during the year ended December 31, 2012 as compared to $25.6 million during the year ended December 31, 2011. The increase was primarily due to increased compensation costs related to an increase in personnel in the year ended December 31, 2012 as compared to the same period of 2011.

DD&A expense for the year ended December 31, 2012 increased $81.0 million to $165.6 million ($17.55 per Boe) from the DD&A expense for the year ended December 31, 2011 of $84.6 million ($11.26 per Boe). The increase in DD&A is attributable to both the increase in production and an increase in the DD&A rate per Boe. The increase in the DD&A rate per Boe is largely due to the impact of the significant decrease in natural gas reserves in the Barnett as a result of the Atlas and KKR sales as well as the increase in crude oil reserves in the Eagle Ford that have been added during 2011 and 2012, which have a higher finding cost per Boe than our natural gas reserves.