Felix Hernandez has yet to sign a contract extension with the Seattle Mariners. It's unclear where things are in contract negotiations and how serious both sides are, but right now nothing is happening. Felix should still be here in Seattle for awhile as long as the Mariners decide not to trade him.
Jeff Sullivan of Lookout Landing files this report on Hernandez's performance in 2012. Herndandez has struggled getting good strike zones. Although he's no Justin Masterson, Hernandez was next to last in terms of baseball stats in regards to getting good strike zones. Some of that has to do with how difficult it is to judge whether his pitches are strikes or balls. The movement is so unpredictable it's hard to tell where it's going.
There's no doubt Hernandez is one of the elite pitchers in Major League Baseball. If it was easier to umpire his pitches, he might be performing even better on a regular basis.