Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'WTI | ' |
Entity Registrant Name | 'W&T OFFSHORE INC | ' |
Entity Central Index Key | '0001288403 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 75,656,558 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $23,847 | $15,800 |
Receivables: | ' | ' |
Oil and natural gas sales | 94,417 | 96,752 |
Joint interest and other | 26,584 | 27,984 |
Income tax | 120 | 3,120 |
Total receivables | 121,121 | 127,856 |
Prepaid expenses and other assets | 38,644 | 29,946 |
Total current assets | 183,612 | 173,602 |
Property and equipment - at cost: | ' | ' |
Oil and natural gas properties and equipment (full cost method, of which $122,713 at June 30, 2014 and $116,612 at December 31, 2013 were excluded from amortization) | 7,628,208 | 7,339,097 |
Furniture, fixtures and other | 21,660 | 21,431 |
Total property and equipment | 7,649,868 | 7,360,528 |
Less accumulated depreciation, depletion and amortization | 5,326,074 | 5,084,704 |
Net property and equipment | 2,323,794 | 2,275,824 |
Restricted deposits for asset retirement obligations | 23,723 | 37,421 |
Other assets | 18,643 | 20,455 |
Total assets | 2,549,772 | 2,507,302 |
Current liabilities: | ' | ' |
Accounts payable | 140,495 | 145,212 |
Undistributed oil and natural gas proceeds | 39,202 | 42,107 |
Asset retirement obligations | 69,923 | 77,785 |
Accrued liabilities | 31,299 | 28,000 |
Total current liabilities | 280,919 | 293,104 |
Long-term debt, less current maturities | 1,224,262 | 1,205,421 |
Asset retirement obligations, less current portion | 287,680 | 276,637 |
Deferred income taxes | 189,902 | 178,142 |
Other liabilities | 13,622 | 13,388 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $0.00001 par value; 20,000,000 shares authorized; 0 issued at June 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.00001 par value; 118,330,000 shares authorized; 78,525,731 issued and 75,656,558 outstanding at June 30, 2014; 78,460,872 issued and 75,591,699 outstanding at December 31, 2013 | 1 | 1 |
Additional paid-in capital | 410,642 | 403,564 |
Retained earnings | 166,911 | 161,212 |
Treasury stock, at cost | -24,167 | -24,167 |
Total shareholders' equity | 553,387 | 540,610 |
Total liabilities and shareholders' equity | $2,549,772 | $2,507,302 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Oil and natural gas properties and equipment - full cost method, amount excluded from amortization | $122,713 | $116,612 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 118,330,000 | 118,330,000 |
Common stock, issued | 78,525,731 | 78,460,872 |
Common stock, outstanding | 75,656,558 | 75,591,699 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues | $262,994 | $235,383 | $517,510 | $494,605 |
Operating costs and expenses: | ' | ' | ' | ' |
Lease operating expenses | 61,765 | 68,248 | 117,384 | 127,590 |
Production taxes | 1,842 | 1,780 | 3,834 | 3,569 |
Gathering and transportation | 3,985 | 4,608 | 9,281 | 9,052 |
Depreciation, depletion, amortization and accretion | 128,236 | 99,896 | 251,542 | 208,767 |
General and administrative expenses | 19,682 | 19,868 | 43,270 | 40,955 |
Derivative (gain) loss | 13,079 | -12,840 | 20,571 | -9,473 |
Total costs and expenses | 228,589 | 181,560 | 445,882 | 380,460 |
Operating income | 34,405 | 53,823 | 71,628 | 114,145 |
Interest expense: | ' | ' | ' | ' |
Incurred | 21,454 | 21,536 | 42,912 | 42,770 |
Capitalized | -2,159 | -2,532 | -4,231 | -4,964 |
Income before income tax expense | 15,110 | 34,819 | 32,947 | 76,339 |
Income tax expense | 5,273 | 12,423 | 11,921 | 27,325 |
Net income | $9,837 | $22,396 | $21,026 | $49,014 |
Basic and diluted earnings per common share | $0.13 | $0.29 | $0.28 | $0.64 |
Dividends declared per common share | $0.10 | $0.09 | $0.20 | $0.17 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement Of Changes In Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock |
In Thousands, except Share data | |||||
Beginning Balances at Dec. 31, 2013 | $540,610 | $1 | $403,564 | $161,212 | ($24,167) |
Beginning Balances (in shares) at Dec. 31, 2013 | 75,591,699 | 75,592,000 | ' | ' | 2,869,000 |
Cash dividends | -15,129 | ' | ' | -15,129 | ' |
Share-based compensation | 7,644 | ' | 7,644 | ' | ' |
Share-based compensation (in shares) | ' | 65,000 | ' | ' | ' |
Other | -764 | ' | -566 | -198 | ' |
Net income | 21,026 | ' | ' | 21,026 | ' |
Ending Balances at Jun. 30, 2014 | $553,387 | $1 | $410,642 | $166,911 | ($24,167) |
Ending Balances (in shares) at Jun. 30, 2014 | 75,656,558 | 75,657,000 | ' | ' | 2,869,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income | $21,026 | $49,014 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion, amortization and accretion | 251,542 | 208,767 |
Amortization of debt issuance costs and premium | 366 | 910 |
Share-based compensation | 7,644 | 4,950 |
Derivative (gain) loss | 20,571 | -9,473 |
Cash payments on derivative settlements (realized) | -14,310 | -2,310 |
Deferred income taxes | 11,921 | 23,726 |
Changes in operating assets and liabilities: | ' | ' |
Oil and natural gas receivables | 2,335 | 17,063 |
Joint interest and other receivables | 3,550 | 38,635 |
Income taxes | 2,918 | 8,579 |
Prepaid expenses and other assets | 4,439 | -12,381 |
Asset retirement obligation settlements | -30,338 | -32,886 |
Accounts payable, accrued liabilities and other | -10,614 | 2,768 |
Net cash provided by operating activities | 271,050 | 297,362 |
Investing activities: | ' | ' |
Acquisition of property interest in oil and natural gas properties | -53,363 | ' |
Investment in oil and natural gas properties and equipment | -212,680 | -299,213 |
Purchases of furniture, fixtures and other | -1,715 | -981 |
Net cash used in investing activities | -267,758 | -300,194 |
Financing activities: | ' | ' |
Borrowings of long-term debt - revolving bank credit facility | 220,000 | 252,000 |
Repayments of long-term debt - revolving bank credit facility | -200,000 | -239,000 |
Dividends to shareholders | -15,129 | -12,795 |
Other | -116 | -342 |
Net cash provided by (used in) financing activities | 4,755 | -137 |
Increase (decrease) in cash and cash equivalents | 8,047 | -2,969 |
Cash and cash equivalents, beginning of period | 15,800 | 12,245 |
Cash and cash equivalents, end of period | $23,847 | $9,276 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
Operations. W&T Offshore, Inc. and subsidiaries, referred to herein as “W&T” or the “Company,” is an independent oil and natural gas producer focused primarily in the Gulf of Mexico and onshore Texas. The Company is active in the exploration, development and acquisition of oil and natural gas properties. Our interest in fields, leases, structures and equipment are primarily owned by W&T Offshore, Inc. (the “Parent Company”) and our wholly-owned subsidiary, W&T Energy VI, LLC (“Energy VI”). | |
Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim periods and the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements for annual periods. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. | |
Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Reclassifications. Certain reclassifications have been made to prior periods’ financial statements to conform to the current presentation. The change in Insurance receivables was combined with the change in Joint interest and other receivables on the Condensed Consolidated Statement of Cash Flows. | |
Transactions between Entities Under Common Control. The prior period financial information presented in Note 13, Supplemental Guarantor Information, has been retrospectively adjusted due to transactions between entities under common control, as required under authoritative guidance. | |
Allowance for doubtful accounts. Historically, we have had only minor issues collecting our receivables. For situations where collectability is uncertain, and for joint-interest arrangements where the ability to recover receivables from future net revenues is uncertain, we establish an allowance for doubtful accounts. As of June 30, 2014, we had an immaterial amount recorded in the allowance for doubtful accounts. No allowance for doubtful accounts was recorded at December 31, 2013. | |
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Adjustment related to additional volumes. In January 2014, we identified that we had been receiving an erroneous conversion factor from a third party that had the effect of understating natural gas production at our Viosca Knoll 783 field (Tahoe). The incorrect conversion factor had been used on all natural gas production from the field since we acquired it in 2011. The effect of using this incorrect conversion factor did not affect revenues, operating cash flows or royalty payments to the federal government but did impact reported natural gas production and the calculation of depletion expense. We performed an analysis of the information, assessing both quantitative and qualitative factors, and determined that the impact on our net income reported for quarters in 2013, as well as the impact to our earnings trend, was not material to the previously reported results, thus the adjustment was recognized in the fourth quarter of 2013. The amounts included in the adjustment recognized in the fourth quarter 2013 period which relate to the second quarter of 2013 were: an increase in natural gas production volumes of 254 million cubic feet (“MMcf”) (with no corresponding increase in revenue); an increase to depreciation, depletion, amortization and accretion expense (“DD&A”) of $0.7 million; and a decrease to net income of $0.5 million. The amounts included in the adjustment recognized in the fourth quarter 2013 period which relate to the first half of 2013 were: an increase in natural gas production volumes of 518 MMcf (with no corresponding increase in revenue); an increase to DD&A of $1.5 million; and a decrease to net income of $1.0 million. | |
Recent Accounting Developments. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Summary and Amendments That Create Revenue from Contracts and Customers (Topic 606). ASU 2014-09 amends and replaces current revenue recognition requirements, including most industry-specific guidance. The revised guidance establishes a five step approach to be utilized in determining when, and if, revenue should be recognized. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Upon application, an entity may elect one of two methods, either restatement of prior periods presented or recording a cumulative adjustment in the initial period of application. We have not determined the effect ASU 2014-09 will have on the recognition of our revenue, if any, nor have we determined the method we will utilize upon adoption, which would be in the first quarter of 2017. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Acquisitions and Divestitures | ' | |||||||||||||||||||
2. Acquisitions and Divestitures | ||||||||||||||||||||
2014 Acquisition | ||||||||||||||||||||
On May 20, 2014, Energy VI entered into a purchase and sale agreement to acquire certain oil and natural gas property interests from Woodside Energy (USA) Inc. (“Woodside”). The properties acquired from Woodside (the “Woodside Properties”) consisted of a 20% non-operated working interest in the producing Neptune field (deepwater Atwater Valley blocks 574, 575 and 618), along with an interest in associated production facilities and various interests in 24 other non-operated fields. All of the Woodside Properties are located in the Gulf of Mexico. The effective date of the transaction was November 1, 2013. The transaction included customary adjustments for the effective date, certain closing adjustments and our assumption of the related asset retirement obligations (“ARO”). The purchase price is expected to be finalized during 2014. The acquisition was funded from borrowings under our revolving bank credit facility and cash on hand. | ||||||||||||||||||||
The following table presents the preliminary purchase price allocation, including estimated adjustments, for the acquisition of the Woodside Properties (in thousands): | ||||||||||||||||||||
Cash consideration: | ||||||||||||||||||||
Evaluated properties including equipment | $ | 50,703 | ||||||||||||||||||
Unevaluated properties | 2,660 | |||||||||||||||||||
Sub-total cash consideration | 53,363 | |||||||||||||||||||
Non-cash consideration: | ||||||||||||||||||||
Asset retirement obligations - current | 782 | |||||||||||||||||||
Asset retirement obligations - non-current | 10,543 | |||||||||||||||||||
Sub-total non-cash consideration | 11,325 | |||||||||||||||||||
Total consideration | $ | 64,688 | ||||||||||||||||||
The acquisition was recorded at fair value, which was determined by applying the market and income approaches using Level 3 inputs. The Level 3 inputs were: (i) analysis of comparable transactions obtained from various third-parties, (ii) estimates of ultimate recoveries of reserves and (iii) estimates of discounted cash flows based on estimated reserve quantities, reserve categories, timing of production, costs to produce and develop reserves, future prices, ARO and discount rates. The estimates and assumptions were determined by management and third-parties. The fair value is based on subjective estimates and assumptions, which are inherently imprecise, and the actual realized values could vary significantly from these estimates. No goodwill was recorded in connection with the Woodside Properties acquisition. | ||||||||||||||||||||
2014 Acquisition — Revenues, Net Income and Pro Forma Financial Information | ||||||||||||||||||||
The Woodside Properties were not included in our consolidated results until the property transfer date, which occurred in May 2014. For the three and six months ended June 30, 2014, the Woodside Properties accounted for $6.9 million of revenues, $0.7 million of direct operating expenses, $2.2 million of DD&A and $1.4 million of income taxes, resulting in $2.6 million of net income. Also, we incurred $0.1 million of expenses associated with acquisition and transition activities related to the acquisition of the Woodside Properties for the three and six months ended June 30, 2014. The net income attributable to the Woodside Properties does not reflect certain expenses, such as general and administrative expenses (“G&A”) and interest expense; therefore, this information is not intended to report results as if these operations were managed on a stand-alone basis. In addition, the Woodside Properties are not recorded in a separate entity for tax purposes; therefore, income tax was estimated using the federal statutory tax rate. | ||||||||||||||||||||
In accordance with the applicable accounting guidance, the unaudited pro forma financial information was computed as if the acquisition of the Woodside Properties had been completed on January 1, 2013. The financial information was derived from W&T’s audited historical consolidated financial statements for annual periods, W&T’s unaudited historical condensed consolidated financial statements for interim periods, and the Woodside Properties’ unaudited historical financial statements for the annual and interim periods. | ||||||||||||||||||||
The pro forma adjustments were based on estimates by management and information believed to be directly related to the purchase of the Woodside Properties. The pro forma financial information is not necessarily indicative of the results of operations had the purchase occurred on January 1, 2013. Had we owned the Woodside Properties during the periods indicated, the results may have been substantially different. For example, we may have operated the assets differently than Woodside; the realized sales prices for oil, natural gas liquids (“NGLs”) and natural gas may have been different; and the costs of operating the Woodside Properties may have been different. | ||||||||||||||||||||
The following table presents a summary of our pro forma financial information (in thousands, except earnings per share): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | $ | 272,022 | $ | 251,361 | $ | 540,397 | $ | 528,291 | ||||||||||||
Net income | 12,206 | 27,602 | 27,236 | 60,470 | ||||||||||||||||
Basic and diluted earnings per common share | 0.16 | 0.36 | 0.36 | 0.79 | ||||||||||||||||
For the pro forma financial information, certain information was derived from our financial records, Woodside’s financial records and certain information was estimated. | ||||||||||||||||||||
The following table presents incremental items included in the pro forma information reported above for the Woodside Properties (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenues (a) | $ | 9,028 | $ | 15,978 | $ | 22,887 | $ | 33,686 | ||||||||||||
Direct operating expenses (a) | 1,805 | 2,591 | 4,417 | 4,990 | ||||||||||||||||
DD&A (b) | 3,305 | 4,917 | 8,218 | 10,204 | ||||||||||||||||
G&A (c) | 200 | 200 | 400 | 400 | ||||||||||||||||
Interest expense (d) | 80 | 240 | 320 | 480 | ||||||||||||||||
Capitalized interest (e) | (6 | ) | 20 | (22 | ) | (13 | ) | |||||||||||||
Income taxes expense (f) | 1,275 | 2,804 | 3,344 | 6,169 | ||||||||||||||||
The sources of information and significant assumptions are described below: | ||||||||||||||||||||
(a) | Revenues and direct operating expenses for the Woodside Properties were derived from the historical financial records of Woodside. | |||||||||||||||||||
(b) | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside Properties’ costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||||||||||||||
(c) | Estimated insurance costs related to the Woodside Properties. | |||||||||||||||||||
(d) | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $53.4 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. | |||||||||||||||||||
(e) | The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses. | |||||||||||||||||||
(f) | Income tax expense was computed using the 35% federal statutory rate. | |||||||||||||||||||
The pro forma adjustments do not include adjustments related to any other acquisitions or divestitures. | ||||||||||||||||||||
2013 Acquisition | ||||||||||||||||||||
On October 17, 2013, W&T Offshore, Inc. entered into a purchase and sale agreement to acquire certain oil and natural gas property interests from Callon Petroleum Operating Company (“Callon”). Pursuant to the purchase and sale agreement, transfers of certain properties that had no preferential rights were consummated on November 5, 2013 and transfers of certain properties subject to preferential rights, of which third-parties declined to exercise their preferential rights, were consummated on December 4, 2013. The properties acquired from Callon (the “Callon Properties”) consist of a 15% working interest in the Medusa field (deepwater Mississippi Canyon blocks 582 and 583), interest in associated production facilities and various interests in other non-operated fields. All of the Callon Properties are located in the Gulf of Mexico. The effective date of the transaction was July 1, 2013. The transaction included customary adjustments for the effective date, certain closing adjustments and we assumed the related ARO. An upward net purchase price adjustment of $0.6 million was recorded during the six months ended June 30, 2014 and the purchase price was finalized in the second quarter of 2014. The acquisition was funded from borrowings under our revolving bank credit facility and cash on hand. | ||||||||||||||||||||
The following table presents the purchase price allocation, including adjustments, for the acquisition of the Callon Properties (in thousands): | ||||||||||||||||||||
Cash consideration: | ||||||||||||||||||||
Evaluated properties including equipment | $ | 73,752 | ||||||||||||||||||
Unevaluated properties | 9,248 | |||||||||||||||||||
Sub-total cash consideration | 83,000 | |||||||||||||||||||
Non-cash consideration: | ||||||||||||||||||||
Asset retirement obligations - current | 90 | |||||||||||||||||||
Asset retirement obligations - non-current | 4,143 | |||||||||||||||||||
Sub-total non-cash consideration | 4,233 | |||||||||||||||||||
Total consideration | $ | 87,233 | ||||||||||||||||||
The acquisition was recorded at fair value, which was determined by applying the market and income approaches using Level 3 inputs. The Level 3 inputs were: (i) analysis of comparable transactions obtained from various third-parties, (ii) estimates of ultimate recoveries of reserves and (iii) estimates of discounted cash flows based on estimated reserve quantities, reserve categories, timing of production, costs to produce and develop reserves, future prices, ARO and discount rates. The estimates and assumptions were determined by management and third-parties. The fair value is based on subjective estimates and assumptions, which are inherently imprecise, and the actual realized values could vary significantly from these estimates. No goodwill was recorded in connection with the Callon Properties acquisition. | ||||||||||||||||||||
2013 Acquisition — Revenues, Net Income and Pro Forma Financial Information | ||||||||||||||||||||
The Callon Properties were not included in our consolidated results until the respective property transfer dates, which occurred during the fourth quarter of 2013. For the three months ended June 30, 2014, the Callon Properties accounted for $8.7 million of revenues, $1.0 million of direct operating expenses, $1.6 million of DD&A and $2.1 million of income taxes, resulting in $4.0 million of net income. For the six months ended June 30, 2014, the Callon Properties accounted for $17.4 million of revenues, $2.0 million of direct operating expenses, $7.0 million of DD&A and $2.9 million of income taxes, resulting in $5.5 million of net income. The net income attributable to the Callon Properties does not reflect certain expenses, such as G&A and interest expense; therefore, this information is not intended to report results as if these operations were managed on a stand-alone basis. In addition, the Callon Properties are not recorded in a separate entity for tax purposes; therefore, income tax was estimated using the federal statutory tax rate. There were no expenses associated with acquisition activities and transition activities related to the acquisition of the Callon Properties for the three or six months ended June 30, 2013. | ||||||||||||||||||||
Consistent with the computation of pro forma financial information presented in Item 8, Financial Statements and Supplementary Data, in the Annual Report on Form 10-K for the year end December 31, 2013, the unaudited pro forma financial information was computed as if the acquisition of the Callon Properties had been completed on January 1, 2012. The financial information was derived from W&T’s audited historical consolidated financial statements for annual periods, W&T’s unaudited historical condensed consolidated financial statements for interim periods, the Callon Properties’ audited historical financial statement for 2012 and the Callon Properties’ unaudited historical financial statements for interim periods. | ||||||||||||||||||||
The pro forma adjustments were based on estimates by management and information believed to be directly related to the purchase of the Callon Properties. The pro forma financial information is not necessarily indicative of the results of operations had the purchase occurred on January 1, 2012. Had we owned the Callon Properties during the periods indicated, the results may have been substantially different. For example, we may have operated the assets differently than Callon; the realized sales prices for oil, NGLs and natural gas may have been different; and the costs of operating the Callon Properties may have been different. | ||||||||||||||||||||
The following table presents a summary of our pro forma financial information (in thousands, except earnings per share): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||
Revenue | $ | 243,840 | $ | 514,415 | ||||||||||||||||
Net income | 24,020 | 53,722 | ||||||||||||||||||
Basic and diluted earnings per common share | 0.32 | 0.71 | ||||||||||||||||||
For the pro forma financial information, certain information was derived from our financial records, Callon’s financial records and certain information was estimated. | ||||||||||||||||||||
The following table presents incremental items included in the pro forma information reported above for the Callon Properties (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||
Revenues (a) | $ | 8,457 | $ | 19,810 | ||||||||||||||||
Direct operating expenses (a) | 1,886 | 3,930 | ||||||||||||||||||
DD&A (b) | 3,714 | 7,945 | ||||||||||||||||||
Interest expense (c) | 415 | 830 | ||||||||||||||||||
Capitalized interest (d) | (56 | ) | (138 | ) | ||||||||||||||||
Income taxes expense (e) | 874 | 2,535 | ||||||||||||||||||
The sources of information and significant assumptions are described below: | ||||||||||||||||||||
(a) | Revenues and direct operating expenses for the Callon Properties were derived from the historical financial records of Callon. | |||||||||||||||||||
(b) | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon Properties’ costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||||||||||||||
(c) | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $83.0 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. | |||||||||||||||||||
(d) | The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses. | |||||||||||||||||||
(e) | Income tax expense was computed using the 35% federal statutory rate. | |||||||||||||||||||
The pro forma adjustments do not include adjustments related to any other acquisitions or divestitures. | ||||||||||||||||||||
2013 Divestitures. On July 11, 2013, we sold our non-operated working interest in two offshore fields located in the Gulf of Mexico; the Green Canyon 60 field and the Green Canyon 19 field. The effective date was October 1, 2011 and we retained the deep rights in both fields. Due to the length of time from the effective date, we paid $4.3 million to sell the properties as revenues exceeded operating expenses and the purchase price for the period between the effective date and the close date. In connection with the sale, we reversed $15.6 million of our ARO. | ||||||||||||||||||||
On September 26, 2013, we sold our working interests in the West Delta area block 29 with an effective date of January 1, 2013. The property is located in the Gulf of Mexico. Including adjustments for the effective date, the net proceeds were $14.7 million, which includes a $1.7 million post-effective-date repayment that occurred during the six months ended June 30, 2014. The transaction was structured as a like-kind exchange under the Internal Revenue Code (“IRC”) Section 1031 and other applicable regulations, with funds held by a qualified intermediary until replacement purchases are made. Replacement purchases were made in 2013, which were within the replacement periods as defined under the IRC. In connection with this sale, we reversed $3.9 million of ARO. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Asset Retirement Obligations | ' | |||
3. Asset Retirement Obligations | ||||
Our ARO primarily represents the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. | ||||
A summary of the changes to our ARO is as follows (in thousands): | ||||
Balance, December 31, 2013 | $ | 354,422 | ||
Liabilities settled | (30,338 | ) | ||
Accretion of discount | 10,112 | |||
Liabilities assumed through acquisition (1) | 15,086 | |||
Liabilities incurred | 755 | |||
Revisions of estimated liabilities (2) | 7,566 | |||
Balance, June 30, 2014 | 357,603 | |||
Less current portion | 69,923 | |||
Long-term | $ | 287,680 | ||
(1) Includes the Woodside Properties acquisition and another immaterial acquisition. | ||||
(2) Revisions were primarily due to increased estimates related to work requiring coiled tubing at two locations and removal of a platform at one location. | ||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Derivative Financial Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our market risk exposure relates primarily to commodity prices and interest rates. From time to time, we use various derivative instruments to manage our exposure to commodity price risk from sales of our oil and natural gas and interest rate risk from floating interest rates on our revolving bank credit facility. All of the derivative counterparties are also lenders or affiliates of lenders participating in our revolving bank credit facility. We are exposed to credit loss in the event of nonperformance by the derivative counterparties; however, we currently anticipate that each of our derivative counterparties will be able to fulfill their contractual obligations. Additional collateral is not required by us due to the derivative counterparties’ collateral rights as lenders and we do not require collateral from our derivative counterparties. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In accordance with GAAP, we record each derivative contract on the balance sheet as an asset or a liability at its fair value. For additional information about fair value measurements, refer to Note 6. We have elected not to designate our commodity derivative contracts as hedging instruments; therefore, all changes in the fair value of derivative contracts are recognized currently in earnings. The cash flows of all of our commodity derivative contracts are included in Net cash provided by operating activities on the statements of cash flows. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Derivatives. We have entered into commodity swap contracts to manage a portion of our exposure to commodity price risk from sales of oil through December 2014. While these contracts are intended to reduce the effects of price volatility, they may also limit future income from favorable price movements. During the six months ended June 30, 2014 and during 2013, our derivative contracts consisted entirely of crude oil swap contracts. The crude oil swap contracts are comprised of a portion based on Brent crude oil prices, a portion based on West Texas Intermediate (“WTI”) crude oil prices and a portion based on Light Louisiana Sweet (“LLS”) crude oil prices. The Brent based swap contracts are priced off the Brent crude oil price quoted on the IntercontinentalExchange, known as ICE. The WTI based swap contracts are priced off the New York Mercantile Exchange, known as NYMEX. The LLS based swap contracts are priced from data provided by Argus, an independent media organization. Although our Gulf of Mexico crude oil is based off the WTI crude oil price plus or minus a differential, the realized prices received for our Gulf of Mexico crude oil, up until October 2013, have been closer to the Brent crude oil price because of competition with foreign supplied crude oil, which is based off the Brent crude oil price. Therefore, a portion of the oil swap contracts are priced off the Brent crude oil price to mitigate a portion of the price risk associated with our Gulf of Mexico crude oil production. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014, our open commodity derivative contracts were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps – Oil | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Priced off Brent | Priced off WTI | Priced off LLS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(ICE) | (NYMEX) | (ARGUS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional | Average | Notional | Average | Notional | Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Quantity | Contract | Quantity | Contract | Quantity | Contract | |||||||||||||||||||||||||||||||||||||||||||||||||
Termination Period | (Bbls) | Price | (Bbls) | Price | (Bbls) | Price | ||||||||||||||||||||||||||||||||||||||||||||||||
2014:00:00 | 3rd Quarter | 165,600 | $ | 97.38 | 62,000 | $ | 97.01 | 828,000 | $ | 97.69 | ||||||||||||||||||||||||||||||||||||||||||||
4th Quarter | 156,400 | 97.37 | — | — | 460,000 | 98.12 | ||||||||||||||||||||||||||||||||||||||||||||||||
322,000 | $ | 97.37 | 62,000 | $ | 97.01 | 1,288,000 | $ | 97.84 | ||||||||||||||||||||||||||||||||||||||||||||||
Bbls =160;barrels | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following balance sheet line items include amounts related to the estimated fair value of our open derivative contracts as indicated in the following table (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid and other assets | $ | — | $ | 141 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 15,543 | 9,423 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the fair value of our commodity derivative contracts are recognized currently in earnings and were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (gain) loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized | $ | 9,640 | $ | (1,961 | ) | $ | 14,310 | $ | 2,310 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | 3,439 | (10,879 | ) | 6,261 | (11,783 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 13,079 | $ | (12,840 | ) | $ | 20,571 | $ | (9,473 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Offsetting Commodity Derivatives. As of June 30, 2014 and December 31, 2013, all of our derivative agreements allowed for netting of derivative gains and losses upon settlement. In general, the terms of the agreements provide for offsetting of amounts payable or receivable between us and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. If an event of default were to occur causing an acceleration of payment under our revolving bank credit facility, that event may also trigger an acceleration of settlement of our derivative instruments. If we were required to settle all of our open derivative instruments, we would be able to net payments and receipts per counterparty pursuant to the derivative agreements. Although our derivative agreements allow for netting, which would allow for recording assets and liabilities per counterparty on a net basis, we account for our derivative contracts on a gross basis per contract as either an asset or liability. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of the gross assets and liabilities reflected in the balance sheet and the potential effects of master netting agreements on the fair value of open derivative contracts (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross amounts presented in the balance sheet | $ | — | $ | 15,543 | $ | 141 | $ | 9,423 | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts not offset in the balance sheet | — | — | (141 | ) | (141 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Amounts | $ | — | $ | 15,543 | $ | — | $ | 9,282 | ||||||||||||||||||||||||||||||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Long-Term Debt | ' | |||||||||||
5. Long-Term Debt | ||||||||||||
Our long-term debt was as follows (in thousands): | ||||||||||||
June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
8.50% Senior Notes | $ | 900,000 | $ | 900,000 | ||||||||
Debt premium, net of amortization | 14,262 | 15,421 | ||||||||||
Revolving bank credit facility | 310,000 | 290,000 | ||||||||||
Total long-term debt | 1,224,262 | 1,205,421 | ||||||||||
Current maturities of long-term debt | — | — | ||||||||||
Long term debt, less current maturities | $ | 1,224,262 | $ | 1,205,421 | ||||||||
At June 30, 2014 and December 31, 2013, the balance outstanding of our senior notes, which bear an annual interest rate of 8.50% and mature on June 15, 2019 (the “8.50% Senior Notes”), was classified as long-term at their carrying value. Interest on the 8.50% Senior Notes is payable semi-annually in arrears on June 15 and December 15. The estimated annual effective interest rate on the 8.50% Senior Notes is 8.4%, which includes amortization of debt issuance costs and premiums. We are subject to various financial and other covenants under the indenture governing the 8.50% Senior Notes and we were in compliance with those covenants as of June 30, 2014. | ||||||||||||
The Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) governs our revolving bank credit facility and terminates on November 8, 2018. Borrowings under our revolving bank credit facility are secured by our oil and natural gas properties. Availability under such facility is subject to a semi-annual redetermination of our borrowing base that occurs in the spring and fall of each year and is calculated by our lenders based on their evaluation of our proved reserves and their own internal criteria. | ||||||||||||
At June 30, 2014 and December 31, 2013, we had $0.6 million and $0.4 million, respectively, of letters of credit outstanding under the revolving bank credit facility. The estimated annual effective interest rate was 2.9% for the six months ended June 30, 2014 for borrowings under the revolving bank credit facility. The estimated annual effective interest rate includes amortization of debt issuance costs and excludes commitment fees and other costs. As of June 30, 2014, our borrowing base was $750.0 million and our borrowing availability was $439.4 million. | ||||||||||||
Under the Credit Agreement, we are subject to various financial covenants calculated as of the last day of each fiscal quarter, including a minimum current ratio and a maximum leverage ratio, each as defined in the Credit Agreement. We were in compliance with all applicable covenants of the Credit Agreement as of June 30, 2014. | ||||||||||||
For information about fair value measurements for our 8.50% Senior Notes and revolving bank credit facility, refer to Note 6. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||
6. Fair Value Measurements | ||||||||||||||||||||||
We measure the fair value of our derivative financial instruments by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy. The inputs used for the fair value measurement of our derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity futures prices. The fair value of our 8.50% Senior Notes is based on quoted prices, although the market is not an active market; therefore, the fair value is classified within Level 2. The carrying amount of debt under our revolving bank credit facility approximates fair value because the interest rates are variable and reflective of market rates. | ||||||||||||||||||||||
The following table presents the fair value of our derivative financial instruments, 8.50% Senior Notes and revolving bank credit facility (in thousands): | ||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||
Hierarchy | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Derivatives | Level 2 | $ | — | $ | 15,543 | $ | 141 | $ | 9,423 | |||||||||||||
8.50% Senior Notes | Level 2 | — | 974,250 | — | 962,460 | |||||||||||||||||
Revolving bank credit facility | Level 2 | — | 310,000 | — | 290,000 | |||||||||||||||||
As described in Note 4, our derivative financial instruments are reported in the balance sheet at fair value and changes in fair value are recognized currently in earnings. The 8.50% Senior Notes and revolving bank credit facility are reported in the balance sheet at their carrying value as described in Note 5. |
ShareBased_Compensation_and_Ca
Share-Based Compensation and Cash-Based Incentive Compensation | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Share-Based Compensation and Cash-Based Incentive Compensation | ' | |||||||||||||||||||
7. Share-Based Compensation and Cash-Based Incentive Compensation | ||||||||||||||||||||
In 2010, the W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan (the “Plan”) was approved by our shareholders, and amendments to the Plan were approved by our shareholders in May 2013. As allowed by the Plan, during the six months ended June 30, 2014, and in 2013 and 2012, the Company granted restricted stock units (“RSUs”) to certain of its employees. RSUs are a long-term compensation component of the Plan, which are granted to only certain employees, and are subject to adjustments at the end of the applicable performance period based on the achievement of certain predetermined criteria. In addition to share-based compensation, the Company may grant to its employees cash-based incentive awards, which are a short-term component of the Plan and are based on the Company and the employee achieving certain pre-defined performance criteria. | ||||||||||||||||||||
During the six months ended June 30, 2014, RSUs granted were subject to a combination of performance criteria, which was comprised of: (i) net income before income tax expense, net interest expense, depreciation, depletion, amortization, accretion and certain other items (“Adjusted EBITDA”) for 2014 and (ii) Adjusted EBITDA as a percent of total revenue (“Adjusted EBITDA Margin”) for 2014. Adjustments range from 0% to 100% dependent upon actual results compared against pre-defined performance levels. | ||||||||||||||||||||
During 2013, RSUs granted were subject to a combination of performance criteria, which was comprised of: (i) Adjusted EBITDA for 2013; (ii) Adjusted EBITDA Margin for 2013; and (iii) the Company’s total shareholder return (“TSR”) ranking against peer companies’ TSR for 2013, 2014 and January 1, 2015 to October 31, 2015. TSR is determined based upon the change in the entity’s stock price plus dividends for the applicable performance period. For 2013, the Company exceeded the target for Adjusted EBITDA, was approximately at target for 2013 Adjusted EBITDA Margin and was below target for TSR ranking. | ||||||||||||||||||||
During 2012, RSUs granted were subject to a combination of performance criteria, which was comprised of: (i) earnings per share for 2012; and (ii) the Company’s TSR ranking against peer companies’ TSR for 2012, 2013 and January 1, 2014 to October 31, 2014. Pursuant to the Plan, discretionary authority was exercised for certain non-executive employees, which reduced the forfeitures that would have occurred through application of the pre-defined performance measurement. | ||||||||||||||||||||
All RSUs granted to date are subject to employment-based criteria and vesting occurs in December of the second year after the grant. For example, the RSUs granted during 2012 will vest in December 2014 to eligible employees. | ||||||||||||||||||||
The 2014 annual incentive plan award for the Chief Executive Officer (“CEO”) will be settled in shares of common stock based on a price of $14.66 per share, subject to pre-defined performance measures and approval of the Compensation Committee. As the number of shares cannot be determined and a grant has not yet been made, the CEO’s 2014 award is accounted for as a liability award and adjusted to fair value using the Company’s closing price at the end of each reporting period. The compensation related to the 2013 annual incentive plan for the CEO was determined based on pre-defined company and individual performance measures pursuant to the terms of his award and was settled in shares of common stock in March 2014. The performance measures for the CEO’s award were the same as the performance measures established for the other eligible Company employees for 2014 and 2013, respectively. | ||||||||||||||||||||
Under the Director Compensation Plan, shares of restricted stock (“Restricted Shares”) were granted to the Company’s non-employee directors during 2014 and prior years. The Restricted Shares are subject to service conditions and vesting occurs at the end of specified service periods. | ||||||||||||||||||||
At June 30, 2014, there were 5,032,939 shares of common stock available for issuance in satisfaction of awards under the Plan and 500,564 shares of common stock available for issuance in satisfaction of awards under the Director Compensation Plan. The shares available for both plans are reduced when Restricted Shares or shares of common stock are granted. RSUs will reduce the shares available in the Plan only when RSUs are settled in shares of common stock. Although the Company has the option to settle RSUs in stock or cash at vesting, only common stock has been used to settle vested RSUs to date. | ||||||||||||||||||||
We recognize compensation cost for share-based payments to employees and non-employee directors over the period during which the recipient is required to provide service in exchange for the award, based on the fair value of the equity instrument on the date of grant. We are also required to estimate forfeitures, resulting in the recognition of compensation cost only for those awards that are expected to actually vest. | ||||||||||||||||||||
Awards Based on Restricted Stock to Non-Employee Directors. As of June 30, 2014, all of the unvested shares of Restricted Shares outstanding were issued to the non-employee directors. Restricted Shares are subject to forfeiture until vested and cannot be sold, transferred or disposed of during the restricted period. The holders of Restricted Shares generally have the same rights as a shareholder of the Company with respect to such Restricted Shares, including the right to vote and receive dividends or other distributions paid with respect to the Restricted Shares. The fair value of Restricted Shares was estimated by using the Company’s closing price on the grant date. | ||||||||||||||||||||
A summary of activity in 2014 related to Restricted Shares awarded to non-employee directors is as follows: | ||||||||||||||||||||
Restricted Shares | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Grant Date Fair | ||||||||||||||||||||
Shares | Value Per Share | |||||||||||||||||||
Nonvested, December 31, 2013 | 43,840 | $ | 15.96 | |||||||||||||||||
Granted | 18,815 | 18.6 | ||||||||||||||||||
Vested | (19,445 | ) | 18 | |||||||||||||||||
Nonvested, June 30, 2014 | 43,210 | $ | 16.2 | |||||||||||||||||
Subject to the satisfaction of service conditions, the outstanding Restricted Shares issued to the non-employee directors as of June 30, 2014 are expected to vest as follows: | ||||||||||||||||||||
Restricted Shares | ||||||||||||||||||||
2015 | 21,520 | |||||||||||||||||||
2016 | 15,420 | |||||||||||||||||||
2017 | 6,270 | |||||||||||||||||||
Total | 43,210 | |||||||||||||||||||
The grant date fair value of Restricted Shares granted during the six months ended June 30, 2014 and 2013 was $0.3 million and $0.3 million, respectively. The fair value of Restricted Shares that vested during the six months ended June 30, 2014 and 2013 was $0.3 million and $0.4 million, respectively. | ||||||||||||||||||||
Awards Based on Restricted Stock Units. As of June 30, 2014, the Company had outstanding RSUs issued to certain employees. As described above, the RSUs granted during the six months ended June 30, 2014 are subject to pre-defined performance measures which cannot be determined at this time; therefore, no portion has been determined to be eligible for vesting as of June 30, 2014. A portion of the RSUs granted during 2013 and 2012 remains subject to certain pre-defined performance measures of TSR for the defined periods in 2014 and 2015; therefore, the number of RSUs may be adjusted upon determination of the respective performance. These RSU adjustments related to TSR performance will not affect unrecognized expense, as the fair value of the portion related to market-based awards was established at the date of grant (described below) and actual performance does not affect expense recognition for this portion. The portion of RSUs subject to performance measurement and adjustment ranges are disclosed in the second table below. | ||||||||||||||||||||
The fair value for the RSUs granted during the six months ended June 30, 2014 was determined using the Company’s closing price on the grant date. The fair value for the 2013 RSUs was determined separately for the component related to the Company specific performance measures (Adjusted EBITDA and Adjusted EBITDA Margin) and the component related to TSR targets. The fair value of the 2013 RSUs component related to the Company specific performance measures was determined using the Company’s closing price on the grant date. The fair value for the 2013 RSUs component related to TSR targets was determined by using a Monte Carlo simulation probabilistic model. The inputs used in the probabilistic model for the Company and the peer companies were: average closing stock prices during January 2013; risk-free interest rates using the London Interbank Offered Rate (“LIBOR”) ranging from 0.27% to 0.91% over the service period; expected volatilities ranging from 30% to 63%; expected dividend yields ranging from 0.0% to 3.1%; and correlation factors ranging from (84%) to 95%. The expected volatilities, expected dividends and correlation factors were developed using historical data. | ||||||||||||||||||||
A methodology similar to that employed for the 2013 RSUs was used to determine the fair value for the 2012 RSUs. The inputs used in the probabilistic model for the Company and the peer companies were: average closing stock prices during January 2012; risk-free interest rates using the LIBOR ranging from 0.15% to 0.72% over the service period; expected volatilities ranging from 33% to 74%; expected dividend yields ranging from 0.0% to 2.5%; and correlation factors ranging from (67%) to 94%. The expected volatilities, expected dividends and correlation factors were developed using historical data. | ||||||||||||||||||||
All RSUs awarded are subject to forfeiture until vested and cannot be sold, transferred or otherwise disposed of during the restricted period. Dividend equivalents are earned at the same rate as dividends paid on our common stock after achieving the specified performance requirement for that component of the RSUs. | ||||||||||||||||||||
A summary of activity in 2014 related to RSUs is as follows: | ||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Grant Date Fair | ||||||||||||||||||||
Units | Value Per Unit | |||||||||||||||||||
Nonvested, December 31, 2013 | 1,331,753 | $ | 14.96 | |||||||||||||||||
Granted | 1,178,326 | 16.86 | ||||||||||||||||||
Vested | (4,662 | ) | 16.26 | |||||||||||||||||
Forfeited | (36,099 | ) | 15.54 | |||||||||||||||||
Nonvested, June 30, 2014 | 2,469,318 | $ | 15.85 | |||||||||||||||||
All of the outstanding RSUs are subject to the satisfaction of service conditions and a portion of the outstanding RSUs are also subject to pre-defined performance measurements. The RSUs outstanding as of June 30, 2014 potentially eligible to vest are listed in the table below: | ||||||||||||||||||||
RSUs | ||||||||||||||||||||
2014 - subject to service requirements | 350,319 | |||||||||||||||||||
2014 - subject to service and other requirements (1) | 66,723 | |||||||||||||||||||
2015 - subject to service requirements | 705,176 | |||||||||||||||||||
2015 - subject to service and other requirements (2) | 180,211 | |||||||||||||||||||
2016 - subject to service requirements | 3,400 | |||||||||||||||||||
2016 - subject to service and other requirements (3) | 1,163,489 | |||||||||||||||||||
Total | 2,469,318 | |||||||||||||||||||
-1 | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 150% of amounts granted. | |||||||||||||||||||
-2 | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 200% of amounts granted. | |||||||||||||||||||
-3 | In addition to service requirements, these RSUs are also subject to Company specific performance requirements not yet measureable, with awards ranging from 0% to 100% of amounts granted. | |||||||||||||||||||
The grant date fair value of RSUs granted during the six months ended June 30, 2014 and 2013 was $19.9 million and $12.8 million, respectively. The fair value of RSUs that vested during the six months ended June 30, 2014 was $0.1 million. During the six months ended June 30, 2013, there was no vesting of RSUs. | ||||||||||||||||||||
Awards Based on Common Stock. A grant and issuance of 42,547 shares of common stock was made in March 2014 to the CEO pursuant to the terms of his 2013 annual incentive compensation award. The number of shares was determined after deductions for withholding and payroll taxes and the shares were valued at the Company’s closing price as of the date of grant. | ||||||||||||||||||||
Share-Based Compensation. A summary of incentive compensation expense under share-based payment arrangements and the related tax benefit is as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Share-based compensation expense from: | ||||||||||||||||||||
Restricted stock | $ | 84 | $ | 99 | $ | 183 | $ | 198 | ||||||||||||
Restricted stock units | 3,625 | 2,596 | 6,161 | 4,752 | ||||||||||||||||
Common shares | 178 | — | 1,300 | — | ||||||||||||||||
Total | $ | 3,887 | $ | 2,695 | $ | 7,644 | $ | 4,950 | ||||||||||||
Share-based compensation tax benefit: | ||||||||||||||||||||
Tax benefit computed at the statutory rate | $ | 1,360 | $ | 943 | $ | 2,675 | $ | 1,733 | ||||||||||||
Unrecognized Share-Based Compensation. As of June 30, 2014, unrecognized share-based compensation expense related to our awards of Restricted Shares, RSUs and common stock was $0.7 million, $23.8 million and $0.6 million, respectively. Unrecognized share-based compensation expense will be recognized through April 2017 for Restricted Shares, November 2016 for RSUs and February 2015 for awards based on common shares. | ||||||||||||||||||||
Cash-Based Incentive Compensation. As defined by the Plan, annual incentive awards may be granted to eligible employees and payable in cash. (In the case of the award to the CEO, the awards for 2014 and 2013 are paid in shares of common stock as described above.) These awards are performance-based awards consisting of one or more business criteria or individual performance criteria and a targeted level or levels of performance with respect to each of such criteria. Generally, the performance period is the calendar year and determination and payment is made in cash in the first quarter of the following year. | ||||||||||||||||||||
Share-Based Compensation and Cash-Based Incentive Compensation Expense. A summary of incentive compensation expense is as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Share-based compensation included in: | ||||||||||||||||||||
General and administrative (1) | $ | 3,887 | $ | 2,695 | $ | 7,644 | $ | 4,950 | ||||||||||||
Cash-based incentive compensation included in: | ||||||||||||||||||||
Lease operating expense | 475 | 747 | 1,777 | 2,140 | ||||||||||||||||
General and administrative (1) | 1,532 | 2,024 | 3,313 | 5,554 | ||||||||||||||||
Total charged to operating income | $ | 5,894 | $ | 5,466 | $ | 12,734 | $ | 12,644 | ||||||||||||
-1 | Reclassified $0.7 million from cash-based incentive compensation expense to share-based compensation expense in the six months ended June 30, 2014 related to the CEO’s 2013 award. | |||||||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
8. Income Taxes | |
Income tax expense of $5.3 million and $11.9 million was recorded during the three and six months ended June 30, 2014, respectively. Our effective tax rate for the three and six months ended June 30, 2014 was 34.9% and 36.2%, respectively. The rate for the three months ended June 30, 2014 differed from the federal statutory rate of 35.0% primarily as a result of adjustments to a revised full-year forecasted rate. The rate for the six months ended June 30, 2014 differed from the federal statutory rate primarily as a result of state income taxes and other permanent items. Income tax expense of $12.4 million and $27.3 million was recorded during the three and six months ended June 30, 2013, respectively. The effective tax rate for the three and six months ended June 30, 2013 was 35.7% and 35.8%, respectively, and differed from the federal statutory rate primarily as a result of state income taxes. | |
During the six months ended June 30, 2014, we received $3.0 million of refunds. During 2013, we received refunds of $59.1 million, of which $9.5 million of these refunds have been accounted for as unrecognized tax benefits. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. During the three and six months ended June 30, 2014 and 2013, we had less than $0.1 million of accrued interest expense related to our unrecognized tax benefit. As of June 30, 2014 and December 31, 2013, we had a valuation allowance related to state net operating losses. The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions in which those temporary differences or net operating losses are deductible. The tax years from 2010 through 2013 remain open to examination by the tax jurisdictions to which we are subject. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||
9. Earnings Per Share | ||||||||||||||||||||
The following table presents the calculation of basic and diluted earnings per common share (in thousands, except per share amounts): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net income | $ | 9,837 | $ | 22,396 | $ | 21,026 | $ | 49,014 | ||||||||||||
Less portion allocated to nonvested shares | 100 | 275 | 219 | 556 | ||||||||||||||||
Net income allocated to common shares | $ | 9,737 | $ | 22,121 | $ | 20,807 | $ | 48,458 | ||||||||||||
Weighted average common shares outstanding | 75,605 | 75,223 | 75,581 | 75,215 | ||||||||||||||||
Basic and diluted earnings per common share | $ | 0.13 | $ | 0.29 | $ | 0.28 | $ | 0.64 | ||||||||||||
Shares excluded due to being anti-dilutive (weighted-average) | — | 859 | — | 864 | ||||||||||||||||
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2014 | |
Dividends | ' |
10. Dividends | |
During the six months ended June 30, 2014 and 2013, we paid regular cash dividends per common share of $0.20 and $0.17, respectively. On August 6, 2014, our board of directors declared a cash dividend of $0.10 per common share, payable on September 12, 2014 to shareholders of record on August 22, 2014. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Contingencies | ' |
11. Contingencies | |
Notice of Suspension and Debarment. In November 2013, W&T Offshore, Inc., the Parent Company, received a Notice of Suspension and Proposed Debarment and a Notice of Clean Water Act Listing from the U.S. Environmental Protection Agency (the “EPA”). The Notices were directed to only the Parent Company and do not name or apply to our wholly-owned subsidiaries. The first Notice suspended the Parent Company and proposed a three year debarment from participation in future federal contracts, including future federal oil and gas leases, and assistance activities and renders the Parent Company ineligible to receive any federal contracts or approved subcontracts or to act as an agent or representative on behalf of another in such transaction, or receive certain federal benefits. The second Notice provided a narrower prohibition on federal contracts or benefits for the Parent Company. The Notices stemmed from the Parent Company’s previously disclosed plea agreement and corporate conviction on two criminal counts as described in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year end December 31, 2013. | |
The Notices prevented the Parent Company from obtaining federal oil and gas leases, whether at a future lease sale or an existing lease by assignment. The Notices did not affect current or future drilling or production operations of the existing lease ownership of the Parent Company. | |
During the third quarter of 2014, the EPA Suspension and Debarment Official removed the suspension and proposed debarment and reinstated the Parent Company from the prohibition in the second Notice after the Parent Company filed submissions to contest the limitations in both Notices and to demonstrate that it corrected the violations and is a responsible operator. See Note 12, Subsequent Events, regarding the lifting the suspension and proposed debarment received from the EPA on August 5, 2014. | |
Waiver concerning certain supplement bonding requirements from the Bureau of Ocean Energy Management (“BOEM”). In November and December 2013, W&T Offshore, Inc. received letters from the BOEM claiming that it no longer qualified for a waiver of certain supplemental bonding requirements for potential offshore decommissioning, plugging, and abandonment liabilities. These letters pertain to the Parent Company’s prior supplemental bonding waiver. Our wholly-owned subsidiary, Energy VI, is not exempt from supplemental bonding under BOEM’s procedures and therefore such wholly-owned subsidiary provides supplemental bonding for its plugging and abandonment liabilities. The supplemental bonding requirements are separate and distinct from the suspension and debarment issue described above. The letters notified the Parent Company that it must provide supplemental bonding on certain of its offshore leases, rights of way and rights of use and easement in the Gulf of Mexico. | |
In response, in January 2014, the Company filed a Petition for Stay Pending Appeal and Request for Interim Relief with the U.S. Department of Interior's Board of Land Appeals ("IBLA"). In addition, we provided additional information to the BOEM and had numerous discussions with the BOEM staff. On May 8, 2014, an order was issued by the IBLA in which it set aside the November 2013 BOEM order and remanded the case to the BOEM for its consideration. On May 16, 2014, the Parent Company was informed by the BOEM that under applicable federal regulations it now qualifies for a waiver of certain supplemental bonding requirements for potential offshore decommissioning liabilities (including plugging and abandonment). | |
Notification by ONRR of fine for non-compliance. In December 2013 and January 2014, we were notified by the Office of Natural Resources Revenue (“ONRR”) of an underpayment of royalties on certain Federal offshore oil and gas leases that cumulatively approximated $30,000 over several years, which represents 0.0045% of royalty payments paid by us during the same period of the underpayment. In March 2014, we received notice from the ONRR of a statutory fine of $2.3 million relative to such underpayment. We believe the fine is excessive and extreme considering the circumstances and in relation to the amount of underpayment. On April 23, 2014, we filed a request for a hearing on the record and a general denial of ONRR’s allegations contained in the notice. We intend to contest the fine to the fullest extent possible. The ultimate resolution may result in a waiver of the fine, a reduction of the fine, or payment of the full amount plus interest covering several years. As no amount has been determined as more likely than any other within the range of possible resolutions, no amount has been accrued as of June 30, 2014 per authoritative guidance. However, we cannot state with certainty that our estimate of the exposure is accurate concerning this matter. | |
Insurance Claims. During the fourth quarter of 2012, underwriters of W&T’s excess liability policies (“Excess Policies”) (Indemnity Insurance Company of North America, New York Marine & General Insurance Company, Navigators Insurance Company, XL Specialty Insurance Company and Liberty Mutual Insurance Co.) filed declaratory judgment actions in the United States District Court for the Southern District of Texas seeking a determination that our Excess Policies do not cover removal-of-wreck and debris claims arising from Hurricane Ike to the extent we have first exhausted the limits of our Energy Package (defined as certain insurance policies relating to our oil and gas properties which includes named windstorm coverage) with only removal-of-wreck and debris claims. The court consolidated the various suits filed by the underwriters. In January 2013, we filed a motion for summary judgment seeking the court’s determination that such Excess Policies do not require us to exhaust the limits of our Energy Package policies with only removal-of-wreck and debris claims. In July 2013, the District Court ruled in favor of the underwriters, adopting their position that the Excess Policies cover removal-of-wreck and debris claims only to the extent the limits of our Energy Package policies have been exhausted with removal-of-wreck and debris claims. We appealed the decision in the United States Court of Appeals for the Fifth Circuit and, in June 2014, the Court reversed the District Court’s ruling and ruled in our favor. The underwriters filed three separate briefs requesting a rehearing or a certification to the Texas Supreme Court, all of which the Court denied. As the limits of the Energy Package have been exhausted, we have filed and anticipate filing claims of up to approximately $46.3 million under the Excess Policies and ultimately expect to receive recovery of claims. Removal-of-wreck costs are recorded in Oil and natural gas properties and equipment on the Condensed Consolidated Balance Sheets and recoveries from claims made on these Excess Policies will be recorded as reductions in this line item, which will reduce our future DD&A rate. | |
Royalties. In 2009, the Company recognized $5.3 million in allowable reductions of cash payments for royalties owed to the ONRR for transportation of their deepwater production through our subsea pipeline systems. In 2010, the ONRR audited the calculations and support related to this usage fee, and in the third quarter of 2010, we were notified that the ONRR had disallowed approximately $4.7 million of the reductions taken. We recorded a reduction to other revenue of $4.7 million in the third quarter of 2010 to reflect this disallowance; however, we disagree with the position taken by the ONRR and we are pursuing our claim to resolve the matter. | |
Other Claims. We are a party to various pending or threatened claims and complaints seeking damages or other remedies concerning our commercial operations and other matters in the ordinary course of our business. In addition, claims or contingencies may arise related to matters occurring prior to our acquisition of properties or related to matters occurring subsequent to our sale of properties. In certain cases, we have indemnified the sellers of properties we have acquired, and in other cases, we have indemnified the buyers of properties we have sold. We are also subject to federal and state administrative proceedings conducted in the ordinary course of business. Although we can give no assurance about the outcome of pending legal and federal or state administrative proceedings and the effect such an outcome may have on us, we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. | |
Contingent Liability Recorded. During the three and six months ended June 30, 2014, $0.4 million and $0.3 million of expenses recognized related to claims, complaints and fines. During the three and six months ended June 30, 2013, expenses related to claims, complaints and fines were less than $0.1 million. As of June 30, 2014 and December 31, 2013, we have recorded $0.5 million and $0.2 million, respectively, which are included in Accrued liabilities on the Condensed Consolidated Balance Sheets, for the loss contingencies matters in the normal course of business. | |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events | ' |
12. Subsequent Events | |
On August 5, 2014, the Parent Company received notice that the EPA lifted the suspension and proposed debarment, and removed the statutory disqualification, previously imposed by the EPA. This action is subject to the condition that the Parent Company continue to comply with the conditions of its existing probation resulting from environmental violations relating to our Ewing Banks 910 platform in the Gulf of Mexico, as described in Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for the year end December 31, 2013. The EPA’s action allows full participation by the Parent Company in future federal contracts, including future federal oil and gas leases, assistance activities and federal oil and gas leasing activities. |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Supplemental Guarantor Information | ' | |||||||||||||||
W&T OFFSHORE, INC. AND SUBSIDIARIES | ||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
13. Supplemental Guarantor Information | ||||||||||||||||
Our payment obligations under the 8.50% Senior Notes and the Credit Agreement (see Note 5) are fully and unconditionally guaranteed by certain of our wholly-owned subsidiaries, including W&T Energy VI, LLC and W&T Energy VII, LLC (together, the “Guarantor Subsidiaries”). W&T Energy VII, LLC does not currently have any active operations or contain any assets. Guarantees of the 8.50% Senior Notes will be released under certain circumstances, including: | ||||||||||||||||
(1) in connection with any sale or other disposition of all or substantially all of the assets of a Guarantor Subsidiary (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary (as such term is defined in the indenture governing the 8.50% Senior Notes) of the Company, if the sale or other disposition does not violate the “Asset Sales” provisions of the indenture; | ||||||||||||||||
(2) in connection with any sale or other disposition of the capital stock of such Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, if the sale or other disposition does not violate the “Asset Sales” provisions of the indenture and the Guarantor Subsidiary ceases to be a subsidiary of the Company as a result of such sales or disposition; | ||||||||||||||||
(3) if such Guarantor Subsidiary is a Restricted Subsidiary and the Company designates such Guarantor Subsidiary as an Unrestricted Subsidiary in accordance with the applicable provisions of the indenture; | ||||||||||||||||
(4) upon Legal Defeasance or Covenant Defeasance (as such terms are defined in the indenture) or upon satisfaction and discharge of the indenture; | ||||||||||||||||
(5) upon the liquidation or dissolution of such Guarantor Subsidiary, provided no event of default has occurred and is continuing; or | ||||||||||||||||
(6) at such time as such Guarantor Subsidiary is no longer required to be a Guarantor Subsidiary of the 8.50% Senior Notes as described in the indenture, provided no event of default has occurred and is continuing. | ||||||||||||||||
The following condensed consolidating financial information presents the financial condition, results of operations and cash flows of the Parent Company and the Guarantor Subsidiaries, together with consolidating adjustments necessary to present the Company’s results on a consolidated basis. Transfers of property, including related ARO, were made from the Parent Company to the Guarantor Subsidiaries to assist the Parent Company to continue to qualify for a waiver of certain supplemental bonding requirements from the BOEM. See Note 11 for additional information. As these transfers were transactions between entities under common control, the prior period financial information has been retrospectively adjusted for comparability purposes, as prescribed under authoritative guidance. These adjustments had no impact on the consolidated results for the current or prior periods presented. | ||||||||||||||||
Condensed Consolidating Balance Sheet as of June 30, 2014 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 23,847 | $ | — | $ | — | $ | 23,847 | ||||||||
Receivables: | ||||||||||||||||
Oil and natural gas sales | 53,737 | 40,680 | — | 94,417 | ||||||||||||
Joint interest and other | 26,584 | — | — | 26,584 | ||||||||||||
Income tax | 144,976 | — | (144,856 | ) | 120 | |||||||||||
Total receivables | 225,297 | 40,680 | (144,856 | ) | 121,121 | |||||||||||
Prepaid expenses and other assets | 34,462 | 4,182 | — | 38,644 | ||||||||||||
Total current assets | 283,606 | 44,862 | (144,856 | ) | 183,612 | |||||||||||
Property and equipment – at cost: | ||||||||||||||||
Oil and natural gas properties and equipment | 5,817,544 | 1,810,664 | — | 7,628,208 | ||||||||||||
Furniture, fixtures and other | 21,660 | — | — | 21,660 | ||||||||||||
Total property and equipment | 5,839,204 | 1,810,664 | — | 7,649,868 | ||||||||||||
Less accumulated depreciation, depletion and | 4,295,168 | 1,030,906 | — | 5,326,074 | ||||||||||||
amortization | ||||||||||||||||
Net property and equipment | 1,544,036 | 779,758 | — | 2,323,794 | ||||||||||||
Restricted deposits for asset retirement obligations | 23,723 | — | — | 23,723 | ||||||||||||
Other assets | 1,160,693 | 566,950 | (1,709,000 | ) | 18,643 | |||||||||||
Total assets | $ | 3,012,058 | $ | 1,391,570 | $ | (1,853,856 | ) | $ | 2,549,772 | |||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 134,748 | $ | 5,747 | $ | — | $ | 140,495 | ||||||||
Undistributed oil and natural gas proceeds | 38,591 | 611 | — | 39,202 | ||||||||||||
Asset retirement obligations | 61,509 | 8,414 | — | 69,923 | ||||||||||||
Accrued liabilities | 59,800 | 116,355 | (144,856 | ) | 31,299 | |||||||||||
Total current liabilities | 294,648 | 131,127 | (144,856 | ) | 280,919 | |||||||||||
Long-term debt, less current maturities | 1,224,262 | — | — | 1,224,262 | ||||||||||||
Asset retirement obligations, less current portion | 172,999 | 114,681 | — | 287,680 | ||||||||||||
Deferred income taxes | 106,175 | 83,727 | — | 189,902 | ||||||||||||
Other liabilities | 660,588 | — | (646,966 | ) | 13,622 | |||||||||||
Shareholders’ equity: | ||||||||||||||||
Common stock | 1 | — | — | 1 | ||||||||||||
Additional paid-in capital | 410,641 | 842,802 | (842,801 | ) | 410,642 | |||||||||||
Retained earnings | 166,911 | 219,233 | (219,233 | ) | 166,911 | |||||||||||
Treasury stock, at cost | (24,167 | ) | — | — | (24,167 | ) | ||||||||||
Total shareholders’ equity | 553,386 | 1,062,035 | (1,062,034 | ) | 553,387 | |||||||||||
Total liabilities and shareholders’ equity | $ | 3,012,058 | $ | 1,391,570 | $ | (1,853,856 | ) | $ | 2,549,772 | |||||||
Condensed Consolidating Balance Sheet as of December 31, 2013 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 15,800 | $ | — | $ | — | $ | 15,800 | ||||||||
Receivables: | ||||||||||||||||
Oil and natural gas sales | 61,373 | 35,379 | — | 96,752 | ||||||||||||
Joint interest and other | 27,984 | — | — | 27,984 | ||||||||||||
Income taxes | 95,611 | — | (92,491 | ) | 3,120 | |||||||||||
Total receivables | 184,968 | 35,379 | (92,491 | ) | 127,856 | |||||||||||
Prepaid expenses and other assets | 23,674 | 6,272 | — | 29,946 | ||||||||||||
Total current assets | 224,442 | 41,651 | (92,491 | ) | 173,602 | |||||||||||
Property and equipment – at cost: | ||||||||||||||||
Oil and natural gas properties and equipment | 5,667,389 | 1,671,708 | — | 7,339,097 | ||||||||||||
Furniture, fixtures and other | 21,431 | — | — | 21,431 | ||||||||||||
Total property and equipment | 5,688,820 | 1,671,708 | — | 7,360,528 | ||||||||||||
Less accumulated depreciation, depletion and amortization | 4,166,359 | 918,345 | — | 5,084,704 | ||||||||||||
Net property and equipment | 1,522,461 | 753,363 | — | 2,275,824 | ||||||||||||
Restricted deposits for asset retirement obligations | 37,421 | — | — | 37,421 | ||||||||||||
Other assets | 951,203 | 479,820 | (1,410,568 | ) | 20,455 | |||||||||||
Total assets | $ | 2,735,527 | $ | 1,274,834 | $ | (1,503,059 | ) | $ | 2,507,302 | |||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 144,492 | $ | 720 | $ | — | $ | 145,212 | ||||||||
Undistributed oil and natural gas proceeds | 41,735 | 372 | — | 42,107 | ||||||||||||
Asset retirement obligations | 65,329 | 12,456 | — | 77,785 | ||||||||||||
Accrued liabilities | 28,000 | 92,491 | (92,491 | ) | 28,000 | |||||||||||
Total current liabilities | 279,556 | 106,039 | (92,491 | ) | 293,104 | |||||||||||
Long-term debt, less current maturities | 1,205,421 | — | — | 1,205,421 | ||||||||||||
Asset retirement obligations, less current portion | 189,507 | 87,130 | — | 276,637 | ||||||||||||
Deferred income taxes | 79,424 | 98,718 | — | 178,142 | ||||||||||||
Other liabilities | 441,009 | — | (427,621 | ) | 13,388 | |||||||||||
Shareholders’ equity: | ||||||||||||||||
Common stock | 1 | — | — | 1 | ||||||||||||
Additional paid-in capital | 403,564 | 784,104 | (784,104 | ) | 403,564 | |||||||||||
Retained earnings | 161,212 | 198,843 | (198,843 | ) | 161,212 | |||||||||||
Treasury stock, at cost | (24,167 | ) | — | — | (24,167 | ) | ||||||||||
Total shareholders’ equity | 540,610 | 982,947 | (982,947 | ) | 540,610 | |||||||||||
Total liabilities and shareholders’ equity | $ | 2,735,527 | $ | 1,274,834 | $ | (1,503,059 | ) | $ | 2,507,302 | |||||||
Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2014 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 162,071 | $ | 100,923 | $ | — | $ | 262,994 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Lease operating expenses | 40,612 | 21,153 | — | 61,765 | ||||||||||||
Production taxes | 1,842 | — | — | 1,842 | ||||||||||||
Gathering and transportation | 2,218 | 1,767 | — | 3,985 | ||||||||||||
Depreciation, depletion, amortization and accretion | 71,327 | 56,909 | — | 128,236 | ||||||||||||
General and administrative expenses | 10,638 | 9,044 | — | 19,682 | ||||||||||||
Derivative loss | 13,079 | — | — | 13,079 | ||||||||||||
Total costs and expenses | 139,716 | 88,873 | — | 228,589 | ||||||||||||
Operating income | 22,355 | 12,050 | — | 34,405 | ||||||||||||
Earnings of affiliates | 7,939 | — | (7,939 | ) | — | |||||||||||
Interest expense: | ||||||||||||||||
Incurred | 20,617 | 837 | — | 21,454 | ||||||||||||
Capitalized | (1,322 | ) | (837 | ) | — | (2,159 | ) | |||||||||
Income before income tax expense | 10,999 | 12,050 | (7,939 | ) | 15,110 | |||||||||||
Income tax expense (benefit) | 1,162 | 4,111 | — | 5,273 | ||||||||||||
Net income | $ | 9,837 | $ | 7,939 | $ | (7,939 | ) | $ | 9,837 | |||||||
Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2014 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 306,057 | $ | 211,453 | $ | — | $ | 517,510 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Lease operating expenses | 79,724 | 37,660 | — | 117,384 | ||||||||||||
Production taxes | 3,834 | — | — | 3,834 | ||||||||||||
Gathering and transportation | 5,556 | 3,725 | — | 9,281 | ||||||||||||
Depreciation, depletion, amortization and accretion | 133,758 | 117,784 | — | 251,542 | ||||||||||||
General and administrative expenses | 22,083 | 21,187 | — | 43,270 | ||||||||||||
Derivative loss | 20,571 | — | — | 20,571 | ||||||||||||
Total costs and expenses | 265,526 | 180,356 | — | 445,882 | ||||||||||||
Operating income | 40,531 | 31,097 | — | 71,628 | ||||||||||||
Earnings of affiliates | 20,390 | — | (20,390 | ) | — | |||||||||||
Interest expense: | ||||||||||||||||
Incurred | 41,294 | 1,618 | — | 42,912 | ||||||||||||
Capitalized | (2,613 | ) | (1,618 | ) | — | (4,231 | ) | |||||||||
Income before income tax expense | 22,240 | 31,097 | (20,390 | ) | 32,947 | |||||||||||
Income tax expense (benefit) | 1,214 | 10,707 | — | 11,921 | ||||||||||||
Net income | $ | 21,026 | $ | 20,390 | $ | (20,390 | ) | $ | 21,026 | |||||||
Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2013 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 147,070 | $ | 88,313 | $ | — | $ | 235,383 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Lease operating expenses | 51,406 | 16,842 | — | 68,248 | ||||||||||||
Production taxes | 1,780 | — | — | 1,780 | ||||||||||||
Gathering and transportation | 2,833 | 1,775 | — | 4,608 | ||||||||||||
Depreciation, depletion, amortization and accretion | 55,706 | 44,190 | — | 99,896 | ||||||||||||
General and administrative expenses | 11,473 | 8,395 | — | 19,868 | ||||||||||||
Derivative loss | (12,840 | ) | — | — | (12,840 | ) | ||||||||||
Total costs and expenses | 110,358 | 71,202 | — | 181,560 | ||||||||||||
Operating income | 36,712 | 17,111 | — | 53,823 | ||||||||||||
Earnings of affiliates | 11,143 | — | (11,143 | ) | — | |||||||||||
Interest expense: | ||||||||||||||||
Incurred | 20,789 | 747 | — | 21,536 | ||||||||||||
Capitalized | (1,785 | ) | (747 | ) | — | (2,532 | ) | |||||||||
Income before income tax expense | 28,851 | 17,111 | (11,143 | ) | 34,819 | |||||||||||
Income tax expense | 6,455 | 5,968 | — | 12,423 | ||||||||||||
Net income | $ | 22,396 | $ | 11,143 | $ | (11,143 | ) | $ | 22,396 | |||||||
Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2013 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues | $ | 317,611 | $ | 176,994 | $ | — | $ | 494,605 | ||||||||
Operating costs and expenses: | ||||||||||||||||
Lease operating expenses | 94,676 | 32,914 | — | 127,590 | ||||||||||||
Production taxes | 3,569 | — | — | 3,569 | ||||||||||||
Gathering and transportation | 5,112 | 3,940 | — | 9,052 | ||||||||||||
Depreciation, depletion, amortization and accretion | 118,908 | 89,859 | — | 208,767 | ||||||||||||
General and administrative expenses | 23,885 | 17,070 | — | 40,955 | ||||||||||||
Derivative loss | (9,473 | ) | — | — | (9,473 | ) | ||||||||||
Total costs and expenses | 236,677 | 143,783 | — | 380,460 | ||||||||||||
Operating income | 80,934 | 33,211 | — | 114,145 | ||||||||||||
Earnings of affiliates | 21,641 | — | (21,641 | ) | — | |||||||||||
Interest expense: | ||||||||||||||||
Incurred | 41,307 | 1,463 | — | 42,770 | ||||||||||||
Capitalized | (3,501 | ) | (1,463 | ) | — | (4,964 | ) | |||||||||
Income before income tax expense | 64,769 | 33,211 | (21,641 | ) | 76,339 | |||||||||||
Income tax expense | 15,755 | 11,570 | — | 27,325 | ||||||||||||
Net income | $ | 49,014 | $ | 21,641 | $ | (21,641 | ) | $ | 49,014 | |||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2014 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Operating activities: | ||||||||||||||||
Net income | $ | 21,026 | $ | 20,390 | $ | (20,390 | ) | $ | 21,026 | |||||||
Adjustments to reconcile net income to net cash | ||||||||||||||||
provided by operating activities: | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 133,758 | 117,784 | — | 251,542 | ||||||||||||
Amortization of debt issuance costs and premium | 366 | — | — | 366 | ||||||||||||
Share-based compensation | 7,644 | — | — | 7,644 | ||||||||||||
Derivative loss | 20,571 | — | — | 20,571 | ||||||||||||
Cash payments on derivative settlements (realized) | (14,310 | ) | — | — | (14,310 | ) | ||||||||||
Deferred income taxes | 25,078 | (13,157 | ) | — | 11,921 | |||||||||||
Earnings of affiliates | (20,390 | ) | — | 20,390 | — | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Oil and natural gas receivables | 7,636 | (5,301 | ) | — | 2,335 | |||||||||||
Joint interest and other receivables | 3,550 | — | — | 3,550 | ||||||||||||
Income taxes | (20,947 | ) | 23,865 | — | 2,918 | |||||||||||
Prepaid expenses and other assets | (127,910 | ) | (86,875 | ) | 219,224 | 4,439 | ||||||||||
Asset retirement obligations settlements | (18,583 | ) | (11,755 | ) | — | (30,338 | ) | |||||||||
Accounts payable, accrued liabilities and other | 203,344 | 5,266 | (219,224 | ) | (10,614 | ) | ||||||||||
Net cash provided by operating activities | 220,833 | 50,217 | — | 271,050 | ||||||||||||
Investing activities: | ||||||||||||||||
Acquisition of property interest in oil and natural gas properties | — | (53,363 | ) | — | (53,363 | ) | ||||||||||
Investment in oil and natural gas properties and equipment | (157,128 | ) | (55,552 | ) | — | (212,680 | ) | |||||||||
Investment in subsidiary | (58,698 | ) | — | 58,698 | — | |||||||||||
Purchases of furniture, fixtures and other | (1,715 | ) | — | — | (1,715 | ) | ||||||||||
Net cash used in investing activities | (217,541 | ) | (108,915 | ) | 58,698 | (267,758 | ) | |||||||||
Financing activities: | ||||||||||||||||
Borrowings of long-term debt – revolving bank credit facility | 220,000 | — | — | 220,000 | ||||||||||||
Repayments of long-term debt – revolving bank credit | (200,000 | ) | — | — | (200,000 | ) | ||||||||||
facility | ||||||||||||||||
Dividends to shareholders | (15,129 | ) | — | — | (15,129 | ) | ||||||||||
Other | (116 | ) | — | — | (116 | ) | ||||||||||
Investment from parent | — | 58,698 | (58,698 | ) | — | |||||||||||
Net cash provided (used) in financing activities | 4,755 | 58,698 | (58,698 | ) | 4,755 | |||||||||||
Increase in cash and cash equivalents | 8,047 | — | — | 8,047 | ||||||||||||
Cash and cash equivalents, beginning of period | 15,800 | — | — | 15,800 | ||||||||||||
Cash and cash equivalents, end of period | $ | 23,847 | $ | — | $ | — | $ | 23,847 | ||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2013 | ||||||||||||||||
Consolidated | ||||||||||||||||
Parent | Guarantor | W&T | ||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | |||||||||||||
(In thousands) | ||||||||||||||||
Operating activities: | ||||||||||||||||
Net income | $ | 49,014 | $ | 21,641 | $ | (21,641 | ) | $ | 49,014 | |||||||
Adjustments to reconcile net income to net cash | ||||||||||||||||
provided by operating activities: | ||||||||||||||||
Depreciation, depletion, amortization and accretion | 118,908 | 89,859 | — | 208,767 | ||||||||||||
Amortization of debt issuance costs and premium | 910 | — | — | 910 | ||||||||||||
Share-based compensation | 4,950 | — | — | 4,950 | ||||||||||||
Derivative gain | (9,473 | ) | — | — | (9,473 | ) | ||||||||||
Cash payments on derivative settlements | (2,310 | ) | — | — | (2,310 | ) | ||||||||||
Deferred income taxes | 11,357 | 12,369 | — | 23,726 | ||||||||||||
Earnings of affiliates | (21,641 | ) | — | 21,641 | — | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Oil and natural gas receivables | 15,673 | 1,390 | — | 17,063 | ||||||||||||
Joint interest and other receivables | 38,635 | — | — | 38,635 | ||||||||||||
Income taxes | 9,378 | (799 | ) | — | 8,579 | |||||||||||
Prepaid expenses and other assets | (26,487 | ) | (27,054 | ) | 41,160 | (12,381 | ) | |||||||||
Asset retirement obligations | (29,740 | ) | (3,146 | ) | — | (32,886 | ) | |||||||||
Accounts payable, accrued liabilities and other | 44,054 | (126 | ) | (41,160 | ) | 2,768 | ||||||||||
Net cash provided by operating activities | 203,228 | 94,134 | — | 297,362 | ||||||||||||
Investing activities: | ||||||||||||||||
Investment in oil and natural gas properties and equipment | (205,079 | ) | (94,134 | ) | — | (299,213 | ) | |||||||||
Purchases of furniture, fixtures and other | (981 | ) | — | — | (981 | ) | ||||||||||
Net cash used in investing activities | (206,060 | ) | (94,134 | ) | — | (300,194 | ) | |||||||||
Financing activities: | ||||||||||||||||
Borrowings of long-term debt – revolving bank credit facility | 252,000 | — | — | 252,000 | ||||||||||||
Repayments of long-term debt – revolving bank credit facility | (239,000 | ) | — | — | (239,000 | ) | ||||||||||
Dividends to shareholders | (12,795 | ) | — | — | (12,795 | ) | ||||||||||
Other | (342 | ) | — | — | (342 | ) | ||||||||||
Net cash used in financing activities | (137 | ) | — | — | (137 | ) | ||||||||||
Increase in cash and cash equivalents | (2,969 | ) | — | — | (2,969 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 12,245 | — | — | 12,245 | ||||||||||||
Cash and cash equivalents, end of period | $ | 9,276 | $ | — | $ | — | $ | 9,276 | ||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Operations | ' |
Operations. W&T Offshore, Inc. and subsidiaries, referred to herein as “W&T” or the “Company,” is an independent oil and natural gas producer focused primarily in the Gulf of Mexico and onshore Texas. The Company is active in the exploration, development and acquisition of oil and natural gas properties. Our interest in fields, leases, structures and equipment are primarily owned by W&T Offshore, Inc. (the “Parent Company”) and our wholly-owned subsidiary, W&T Energy VI, LLC (“Energy VI”). | |
Interim Financial Statements | ' |
Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim periods and the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements for annual periods. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. | |
Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Reclassifications | ' |
Reclassifications. Certain reclassifications have been made to prior periods’ financial statements to conform to the current presentation. The change in Insurance receivables was combined with the change in Joint interest and other receivables on the Condensed Consolidated Statement of Cash Flows. | |
Transactions between Entities Under Common Control | ' |
Transactions between Entities Under Common Control. The prior period financial information presented in Note 13, Supplemental Guarantor Information, has been retrospectively adjusted due to transactions between entities under common control, as required under authoritative guidance. | |
Allowance for doubtful accounts | ' |
Allowance for doubtful accounts. Historically, we have had only minor issues collecting our receivables. For situations where collectability is uncertain, and for joint-interest arrangements where the ability to recover receivables from future net revenues is uncertain, we establish an allowance for doubtful accounts. As of June 30, 2014, we had an immaterial amount recorded in the allowance for doubtful accounts. No allowance for doubtful accounts was recorded at December 31, 2013. | |
Use of Estimates | ' |
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Adjustment Related to Additional Volumes | ' |
Adjustment related to additional volumes. In January 2014, we identified that we had been receiving an erroneous conversion factor from a third party that had the effect of understating natural gas production at our Viosca Knoll 783 field (Tahoe). The incorrect conversion factor had been used on all natural gas production from the field since we acquired it in 2011. The effect of using this incorrect conversion factor did not affect revenues, operating cash flows or royalty payments to the federal government but did impact reported natural gas production and the calculation of depletion expense. We performed an analysis of the information, assessing both quantitative and qualitative factors, and determined that the impact on our net income reported for quarters in 2013, as well as the impact to our earnings trend, was not material to the previously reported results, thus the adjustment was recognized in the fourth quarter of 2013. The amounts included in the adjustment recognized in the fourth quarter 2013 period which relate to the second quarter of 2013 were: an increase in natural gas production volumes of 254 million cubic feet (“MMcf”) (with no corresponding increase in revenue); an increase to depreciation, depletion, amortization and accretion expense (“DD&A”) of $0.7 million; and a decrease to net income of $0.5 million. The amounts included in the adjustment recognized in the fourth quarter 2013 period which relate to the first half of 2013 were: an increase in natural gas production volumes of 518 MMcf (with no corresponding increase in revenue); an increase to DD&A of $1.5 million; and a decrease to net income of $1.0 million. | |
Recent Accounting Developments | ' |
Recent Accounting Developments. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Summary and Amendments That Create Revenue from Contracts and Customers (Topic 606). ASU 2014-09 amends and replaces current revenue recognition requirements, including most industry-specific guidance. The revised guidance establishes a five step approach to be utilized in determining when, and if, revenue should be recognized. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. Upon application, an entity may elect one of two methods, either restatement of prior periods presented or recording a cumulative adjustment in the initial period of application. We have not determined the effect ASU 2014-09 will have on the recognition of our revenue, if any, nor have we determined the method we will utilize upon adoption, which would be in the first quarter of 2017. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Woodside Properties | ' | |||||||||||||||||||
Purchase Price Allocation for Acquisition | ' | |||||||||||||||||||
The following table presents the preliminary purchase price allocation, including estimated adjustments, for the acquisition of the Woodside Properties (in thousands): | ||||||||||||||||||||
Cash consideration: | ||||||||||||||||||||
Evaluated properties including equipment | $ | 50,703 | ||||||||||||||||||
Unevaluated properties | 2,660 | |||||||||||||||||||
Sub-total cash consideration | 53,363 | |||||||||||||||||||
Non-cash consideration: | ||||||||||||||||||||
Asset retirement obligations - current | 782 | |||||||||||||||||||
Asset retirement obligations - non-current | 10,543 | |||||||||||||||||||
Sub-total non-cash consideration | 11,325 | |||||||||||||||||||
Total consideration | $ | 64,688 | ||||||||||||||||||
Summary of Proforma Financial Information for Acquisition | ' | |||||||||||||||||||
The following table presents a summary of our pro forma financial information (in thousands, except earnings per share): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | $ | 272,022 | $ | 251,361 | $ | 540,397 | $ | 528,291 | ||||||||||||
Net income | 12,206 | 27,602 | 27,236 | 60,470 | ||||||||||||||||
Basic and diluted earnings per common share | 0.16 | 0.36 | 0.36 | 0.79 | ||||||||||||||||
Business Acquisition Pro Forma Information Incremental Item | ' | |||||||||||||||||||
The following table presents incremental items included in the pro forma information reported above for the Woodside Properties (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenues (a) | $ | 9,028 | $ | 15,978 | $ | 22,887 | $ | 33,686 | ||||||||||||
Direct operating expenses (a) | 1,805 | 2,591 | 4,417 | 4,990 | ||||||||||||||||
DD&A (b) | 3,305 | 4,917 | 8,218 | 10,204 | ||||||||||||||||
G&A (c) | 200 | 200 | 400 | 400 | ||||||||||||||||
Interest expense (d) | 80 | 240 | 320 | 480 | ||||||||||||||||
Capitalized interest (e) | (6 | ) | 20 | (22 | ) | (13 | ) | |||||||||||||
Income taxes expense (f) | 1,275 | 2,804 | 3,344 | 6,169 | ||||||||||||||||
The sources of information and significant assumptions are described below: | ||||||||||||||||||||
(a) | Revenues and direct operating expenses for the Woodside Properties were derived from the historical financial records of Woodside. | |||||||||||||||||||
(b) | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside Properties’ costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||||||||||||||
(c) | Estimated insurance costs related to the Woodside Properties. | |||||||||||||||||||
(d) | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $53.4 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. | |||||||||||||||||||
(e) | The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses. | |||||||||||||||||||
(f) | Income tax expense was computed using the 35% federal statutory rate. | |||||||||||||||||||
Callon Properties | ' | |||||||||||||||||||
Purchase Price Allocation for Acquisition | ' | |||||||||||||||||||
The following table presents the purchase price allocation, including adjustments, for the acquisition of the Callon Properties (in thousands): | ||||||||||||||||||||
Cash consideration: | ||||||||||||||||||||
Evaluated properties including equipment | $ | 73,752 | ||||||||||||||||||
Unevaluated properties | 9,248 | |||||||||||||||||||
Sub-total cash consideration | 83,000 | |||||||||||||||||||
Non-cash consideration: | ||||||||||||||||||||
Asset retirement obligations - current | 90 | |||||||||||||||||||
Asset retirement obligations - non-current | 4,143 | |||||||||||||||||||
Sub-total non-cash consideration | 4,233 | |||||||||||||||||||
Total consideration | $ | 87,233 | ||||||||||||||||||
Summary of Proforma Financial Information for Acquisition | ' | |||||||||||||||||||
The following table presents a summary of our pro forma financial information (in thousands, except earnings per share): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||
Revenue | $ | 243,840 | $ | 514,415 | ||||||||||||||||
Net income | 24,020 | 53,722 | ||||||||||||||||||
Basic and diluted earnings per common share | 0.32 | 0.71 | ||||||||||||||||||
Business Acquisition Pro Forma Information Incremental Item | ' | |||||||||||||||||||
The following table presents incremental items included in the pro forma information reported above for the Callon Properties (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||||||
Revenues (a) | $ | 8,457 | $ | 19,810 | ||||||||||||||||
Direct operating expenses (a) | 1,886 | 3,930 | ||||||||||||||||||
DD&A (b) | 3,714 | 7,945 | ||||||||||||||||||
Interest expense (c) | 415 | 830 | ||||||||||||||||||
Capitalized interest (d) | (56 | ) | (138 | ) | ||||||||||||||||
Income taxes expense (e) | 874 | 2,535 | ||||||||||||||||||
The sources of information and significant assumptions are described below: | ||||||||||||||||||||
(a) | Revenues and direct operating expenses for the Callon Properties were derived from the historical financial records of Callon. | |||||||||||||||||||
(b) | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon Properties’ costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||||||||||||||
(c) | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $83.0 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. | |||||||||||||||||||
(d) | The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses. | |||||||||||||||||||
(e) | Income tax expense was computed using the 35% federal statutory rate. |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Reconciliation of Asset Retirement Obligations Liability | ' | |||
A summary of the changes to our ARO is as follows (in thousands): | ||||
Balance, December 31, 2013 | $ | 354,422 | ||
Liabilities settled | (30,338 | ) | ||
Accretion of discount | 10,112 | |||
Liabilities assumed through acquisition (1) | 15,086 | |||
Liabilities incurred | 755 | |||
Revisions of estimated liabilities (2) | 7,566 | |||
Balance, June 30, 2014 | 357,603 | |||
Less current portion | 69,923 | |||
Long-term | $ | 287,680 | ||
(1) Includes the Woodside Properties acquisition and another immaterial acquisition. | ||||
(2) Revisions were primarily due to increased estimates related to work requiring coiled tubing at two locations and removal of a platform at one location. | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Open Commodity Derivatives | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2014, our open commodity derivative contracts were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Swaps – Oil | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Priced off Brent | Priced off WTI | Priced off LLS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(ICE) | (NYMEX) | (ARGUS) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional | Average | Notional | Average | Notional | Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Quantity | Contract | Quantity | Contract | Quantity | Contract | |||||||||||||||||||||||||||||||||||||||||||||||||
Termination Period | (Bbls) | Price | (Bbls) | Price | (Bbls) | Price | ||||||||||||||||||||||||||||||||||||||||||||||||
2014:00:00 | 3rd Quarter | 165,600 | $ | 97.38 | 62,000 | $ | 97.01 | 828,000 | $ | 97.69 | ||||||||||||||||||||||||||||||||||||||||||||
4th Quarter | 156,400 | 97.37 | — | — | 460,000 | 98.12 | ||||||||||||||||||||||||||||||||||||||||||||||||
322,000 | $ | 97.37 | 62,000 | $ | 97.01 | 1,288,000 | $ | 97.84 | ||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Derivative Contracts | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The following balance sheet line items include amounts related to the estimated fair value of our open derivative contracts as indicated in the following table (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid and other assets | $ | — | $ | 141 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 15,543 | 9,423 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value of Commodity Derivative Contracts Recognized in Earnings | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the fair value of our commodity derivative contracts are recognized currently in earnings and were as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (gain) loss: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized | $ | 9,640 | $ | (1,961 | ) | $ | 14,310 | $ | 2,310 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized | 3,439 | (10,879 | ) | 6,261 | (11,783 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 13,079 | $ | (12,840 | ) | $ | 20,571 | $ | (9,473 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Gross Assets and Liabilities and Netting Agreements on Fair Value of Open Derivative Contracts | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of the gross assets and liabilities reflected in the balance sheet and the potential effects of master netting agreements on the fair value of open derivative contracts (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross amounts presented in the balance sheet | $ | — | $ | 15,543 | $ | 141 | $ | 9,423 | ||||||||||||||||||||||||||||||||||||||||||||||
Amounts not offset in the balance sheet | — | — | (141 | ) | (141 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Amounts | $ | — | $ | 15,543 | $ | — | $ | 9,282 | ||||||||||||||||||||||||||||||||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Long-Term Debt | ' | |||||||||||
Our long-term debt was as follows (in thousands): | ||||||||||||
June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
8.50% Senior Notes | $ | 900,000 | $ | 900,000 | ||||||||
Debt premium, net of amortization | 14,262 | 15,421 | ||||||||||
Revolving bank credit facility | 310,000 | 290,000 | ||||||||||
Total long-term debt | 1,224,262 | 1,205,421 | ||||||||||
Current maturities of long-term debt | — | — | ||||||||||
Long term debt, less current maturities | $ | 1,224,262 | $ | 1,205,421 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Schedule of Fair Value of Derivatives Financial Instruments and Long-Term Senior Notes | ' | |||||||||||||||||||||
The following table presents the fair value of our derivative financial instruments, 8.50% Senior Notes and revolving bank credit facility (in thousands): | ||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||
Hierarchy | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Derivatives | Level 2 | $ | — | $ | 15,543 | $ | 141 | $ | 9,423 | |||||||||||||
8.50% Senior Notes | Level 2 | — | 974,250 | — | 962,460 | |||||||||||||||||
Revolving bank credit facility | Level 2 | — | 310,000 | — | 290,000 | |||||||||||||||||
ShareBased_Compensation_and_Ca1
Share-Based Compensation and Cash-Based Incentive Compensation (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||||||
A summary of activity in 2014 related to Restricted Shares awarded to non-employee directors is as follows: | ||||||||||||||||||||
Restricted Shares | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Grant Date Fair | ||||||||||||||||||||
Shares | Value Per Share | |||||||||||||||||||
Nonvested, December 31, 2013 | 43,840 | $ | 15.96 | |||||||||||||||||
Granted | 18,815 | 18.6 | ||||||||||||||||||
Vested | (19,445 | ) | 18 | |||||||||||||||||
Nonvested, June 30, 2014 | 43,210 | $ | 16.2 | |||||||||||||||||
Schedule of Restricted Stock Awards Outstanding | ' | |||||||||||||||||||
Subject to the satisfaction of service conditions, the outstanding Restricted Shares issued to the non-employee directors as of June 30, 2014 are expected to vest as follows: | ||||||||||||||||||||
Restricted Shares | ||||||||||||||||||||
2015 | 21,520 | |||||||||||||||||||
2016 | 15,420 | |||||||||||||||||||
2017 | 6,270 | |||||||||||||||||||
Total | 43,210 | |||||||||||||||||||
Summary of Share Activity Related to Restricted Stock Units | ' | |||||||||||||||||||
A summary of activity in 2014 related to RSUs is as follows: | ||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||
Weighted Average | ||||||||||||||||||||
Grant Date Fair | ||||||||||||||||||||
Units | Value Per Unit | |||||||||||||||||||
Nonvested, December 31, 2013 | 1,331,753 | $ | 14.96 | |||||||||||||||||
Granted | 1,178,326 | 16.86 | ||||||||||||||||||
Vested | (4,662 | ) | 16.26 | |||||||||||||||||
Forfeited | (36,099 | ) | 15.54 | |||||||||||||||||
Nonvested, June 30, 2014 | 2,469,318 | $ | 15.85 | |||||||||||||||||
Schedule of Restricted Stock Awards Outstanding | ' | |||||||||||||||||||
All of the outstanding RSUs are subject to the satisfaction of service conditions and a portion of the outstanding RSUs are also subject to pre-defined performance measurements. The RSUs outstanding as of June 30, 2014 potentially eligible to vest are listed in the table below: | ||||||||||||||||||||
RSUs | ||||||||||||||||||||
2014 - subject to service requirements | 350,319 | |||||||||||||||||||
2014 - subject to service and other requirements (1) | 66,723 | |||||||||||||||||||
2015 - subject to service requirements | 705,176 | |||||||||||||||||||
2015 - subject to service and other requirements (2) | 180,211 | |||||||||||||||||||
2016 - subject to service requirements | 3,400 | |||||||||||||||||||
2016 - subject to service and other requirements (3) | 1,163,489 | |||||||||||||||||||
Total | 2,469,318 | |||||||||||||||||||
-1 | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 150% of amounts granted. | |||||||||||||||||||
-2 | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 200% of amounts granted. | |||||||||||||||||||
-3 | In addition to service requirements, these RSUs are also subject to Company specific performance requirements not yet measureable, with awards ranging from 0% to 100% of amounts granted. | |||||||||||||||||||
Summary of Compensation Expense under Share-Based Payment Arrangements and Related Tax Benefit | ' | |||||||||||||||||||
Share-Based Compensation. A summary of incentive compensation expense under share-based payment arrangements and the related tax benefit is as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Share-based compensation expense from: | ||||||||||||||||||||
Restricted stock | $ | 84 | $ | 99 | $ | 183 | $ | 198 | ||||||||||||
Restricted stock units | 3,625 | 2,596 | 6,161 | 4,752 | ||||||||||||||||
Common shares | 178 | — | 1,300 | — | ||||||||||||||||
Total | $ | 3,887 | $ | 2,695 | $ | 7,644 | $ | 4,950 | ||||||||||||
Share-based compensation tax benefit: | ||||||||||||||||||||
Tax benefit computed at the statutory rate | $ | 1,360 | $ | 943 | $ | 2,675 | $ | 1,733 | ||||||||||||
Summary of Incentive Compensation Expense | ' | |||||||||||||||||||
Share-Based Compensation and Cash-Based Incentive Compensation Expense. A summary of incentive compensation expense is as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Share-based compensation included in: | ||||||||||||||||||||
General and administrative (1) | $ | 3,887 | $ | 2,695 | $ | 7,644 | $ | 4,950 | ||||||||||||
Cash-based incentive compensation included in: | ||||||||||||||||||||
Lease operating expense | 475 | 747 | 1,777 | 2,140 | ||||||||||||||||
General and administrative (1) | 1,532 | 2,024 | 3,313 | 5,554 | ||||||||||||||||
Total charged to operating income | $ | 5,894 | $ | 5,466 | $ | 12,734 | $ | 12,644 | ||||||||||||
-1 | Reclassified $0.7 million from cash-based incentive compensation expense to share-based compensation expense in the six months ended June 30, 2014 related to the CEO’s 2013 award. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Schedule of Calculation of Basic and Diluted Earnings Per Common Share | ' | |||||||||||||||||||
The following table presents the calculation of basic and diluted earnings per common share (in thousands, except per share amounts): | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Net income | $ | 9,837 | $ | 22,396 | $ | 21,026 | $ | 49,014 | ||||||||||||
Less portion allocated to nonvested shares | 100 | 275 | 219 | 556 | ||||||||||||||||
Net income allocated to common shares | $ | 9,737 | $ | 22,121 | $ | 20,807 | $ | 48,458 | ||||||||||||
Weighted average common shares outstanding | 75,605 | 75,223 | 75,581 | 75,215 | ||||||||||||||||
Basic and diluted earnings per common share | $ | 0.13 | $ | 0.29 | $ | 0.28 | $ | 0.64 | ||||||||||||
Shares excluded due to being anti-dilutive (weighted-average) | — | 859 | — | 864 | ||||||||||||||||
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet as of June 30, 2014 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 23,847 | $ | — | $ | — | $ | 23,847 | |||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Oil and natural gas sales | 53,737 | 40,680 | — | 94,417 | |||||||||||||||||||||||
Joint interest and other | 26,584 | — | — | 26,584 | |||||||||||||||||||||||
Income tax | 144,976 | — | (144,856 | ) | 120 | ||||||||||||||||||||||
Total receivables | 225,297 | 40,680 | (144,856 | ) | 121,121 | ||||||||||||||||||||||
Prepaid expenses and other assets | 34,462 | 4,182 | — | 38,644 | |||||||||||||||||||||||
Total current assets | 283,606 | 44,862 | (144,856 | ) | 183,612 | ||||||||||||||||||||||
Property and equipment – at cost: | |||||||||||||||||||||||||||
Oil and natural gas properties and equipment | 5,817,544 | 1,810,664 | — | 7,628,208 | |||||||||||||||||||||||
Furniture, fixtures and other | 21,660 | — | — | 21,660 | |||||||||||||||||||||||
Total property and equipment | 5,839,204 | 1,810,664 | — | 7,649,868 | |||||||||||||||||||||||
Less accumulated depreciation, depletion and | 4,295,168 | 1,030,906 | — | 5,326,074 | |||||||||||||||||||||||
amortization | |||||||||||||||||||||||||||
Net property and equipment | 1,544,036 | 779,758 | — | 2,323,794 | |||||||||||||||||||||||
Restricted deposits for asset retirement obligations | 23,723 | — | — | 23,723 | |||||||||||||||||||||||
Other assets | 1,160,693 | 566,950 | (1,709,000 | ) | 18,643 | ||||||||||||||||||||||
Total assets | $ | 3,012,058 | $ | 1,391,570 | $ | (1,853,856 | ) | $ | 2,549,772 | ||||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable | $ | 134,748 | $ | 5,747 | $ | — | $ | 140,495 | |||||||||||||||||||
Undistributed oil and natural gas proceeds | 38,591 | 611 | — | 39,202 | |||||||||||||||||||||||
Asset retirement obligations | 61,509 | 8,414 | — | 69,923 | |||||||||||||||||||||||
Accrued liabilities | 59,800 | 116,355 | (144,856 | ) | 31,299 | ||||||||||||||||||||||
Total current liabilities | 294,648 | 131,127 | (144,856 | ) | 280,919 | ||||||||||||||||||||||
Long-term debt, less current maturities | 1,224,262 | — | — | 1,224,262 | |||||||||||||||||||||||
Asset retirement obligations, less current portion | 172,999 | 114,681 | — | 287,680 | |||||||||||||||||||||||
Deferred income taxes | 106,175 | 83,727 | — | 189,902 | |||||||||||||||||||||||
Other liabilities | 660,588 | — | (646,966 | ) | 13,622 | ||||||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||||||
Common stock | 1 | — | — | 1 | |||||||||||||||||||||||
Additional paid-in capital | 410,641 | 842,802 | (842,801 | ) | 410,642 | ||||||||||||||||||||||
Retained earnings | 166,911 | 219,233 | (219,233 | ) | 166,911 | ||||||||||||||||||||||
Treasury stock, at cost | (24,167 | ) | — | — | (24,167 | ) | |||||||||||||||||||||
Total shareholders’ equity | 553,386 | 1,062,035 | (1,062,034 | ) | 553,387 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,012,058 | $ | 1,391,570 | $ | (1,853,856 | ) | $ | 2,549,772 | ||||||||||||||||||
Condensed Consolidating Balance Sheet as of December 31, 2013 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 15,800 | $ | — | $ | — | $ | 15,800 | |||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Oil and natural gas sales | 61,373 | 35,379 | — | 96,752 | |||||||||||||||||||||||
Joint interest and other | 27,984 | — | — | 27,984 | |||||||||||||||||||||||
Income taxes | 95,611 | — | (92,491 | ) | 3,120 | ||||||||||||||||||||||
Total receivables | 184,968 | 35,379 | (92,491 | ) | 127,856 | ||||||||||||||||||||||
Prepaid expenses and other assets | 23,674 | 6,272 | — | 29,946 | |||||||||||||||||||||||
Total current assets | 224,442 | 41,651 | (92,491 | ) | 173,602 | ||||||||||||||||||||||
Property and equipment – at cost: | |||||||||||||||||||||||||||
Oil and natural gas properties and equipment | 5,667,389 | 1,671,708 | — | 7,339,097 | |||||||||||||||||||||||
Furniture, fixtures and other | 21,431 | — | — | 21,431 | |||||||||||||||||||||||
Total property and equipment | 5,688,820 | 1,671,708 | — | 7,360,528 | |||||||||||||||||||||||
Less accumulated depreciation, depletion and amortization | 4,166,359 | 918,345 | — | 5,084,704 | |||||||||||||||||||||||
Net property and equipment | 1,522,461 | 753,363 | — | 2,275,824 | |||||||||||||||||||||||
Restricted deposits for asset retirement obligations | 37,421 | — | — | 37,421 | |||||||||||||||||||||||
Other assets | 951,203 | 479,820 | (1,410,568 | ) | 20,455 | ||||||||||||||||||||||
Total assets | $ | 2,735,527 | $ | 1,274,834 | $ | (1,503,059 | ) | $ | 2,507,302 | ||||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||
Accounts payable | $ | 144,492 | $ | 720 | $ | — | $ | 145,212 | |||||||||||||||||||
Undistributed oil and natural gas proceeds | 41,735 | 372 | — | 42,107 | |||||||||||||||||||||||
Asset retirement obligations | 65,329 | 12,456 | — | 77,785 | |||||||||||||||||||||||
Accrued liabilities | 28,000 | 92,491 | (92,491 | ) | 28,000 | ||||||||||||||||||||||
Total current liabilities | 279,556 | 106,039 | (92,491 | ) | 293,104 | ||||||||||||||||||||||
Long-term debt, less current maturities | 1,205,421 | — | — | 1,205,421 | |||||||||||||||||||||||
Asset retirement obligations, less current portion | 189,507 | 87,130 | — | 276,637 | |||||||||||||||||||||||
Deferred income taxes | 79,424 | 98,718 | — | 178,142 | |||||||||||||||||||||||
Other liabilities | 441,009 | — | (427,621 | ) | 13,388 | ||||||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||||||
Common stock | 1 | — | — | 1 | |||||||||||||||||||||||
Additional paid-in capital | 403,564 | 784,104 | (784,104 | ) | 403,564 | ||||||||||||||||||||||
Retained earnings | 161,212 | 198,843 | (198,843 | ) | 161,212 | ||||||||||||||||||||||
Treasury stock, at cost | (24,167 | ) | — | — | (24,167 | ) | |||||||||||||||||||||
Total shareholders’ equity | 540,610 | 982,947 | (982,947 | ) | 540,610 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,735,527 | $ | 1,274,834 | $ | (1,503,059 | ) | $ | 2,507,302 | ||||||||||||||||||
Condensed Consolidating Statement of Income | ' | ||||||||||||||||||||||||||
Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Revenues | $ | 162,071 | $ | 100,923 | $ | — | $ | 262,994 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Lease operating expenses | 40,612 | 21,153 | — | 61,765 | |||||||||||||||||||||||
Production taxes | 1,842 | — | — | 1,842 | |||||||||||||||||||||||
Gathering and transportation | 2,218 | 1,767 | — | 3,985 | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 71,327 | 56,909 | — | 128,236 | |||||||||||||||||||||||
General and administrative expenses | 10,638 | 9,044 | — | 19,682 | |||||||||||||||||||||||
Derivative loss | 13,079 | — | — | 13,079 | |||||||||||||||||||||||
Total costs and expenses | 139,716 | 88,873 | — | 228,589 | |||||||||||||||||||||||
Operating income | 22,355 | 12,050 | — | 34,405 | |||||||||||||||||||||||
Earnings of affiliates | 7,939 | — | (7,939 | ) | — | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||
Incurred | 20,617 | 837 | — | 21,454 | |||||||||||||||||||||||
Capitalized | (1,322 | ) | (837 | ) | — | (2,159 | ) | ||||||||||||||||||||
Income before income tax expense | 10,999 | 12,050 | (7,939 | ) | 15,110 | ||||||||||||||||||||||
Income tax expense (benefit) | 1,162 | 4,111 | — | 5,273 | |||||||||||||||||||||||
Net income | $ | 9,837 | $ | 7,939 | $ | (7,939 | ) | $ | 9,837 | ||||||||||||||||||
Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Revenues | $ | 306,057 | $ | 211,453 | $ | — | $ | 517,510 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Lease operating expenses | 79,724 | 37,660 | — | 117,384 | |||||||||||||||||||||||
Production taxes | 3,834 | — | — | 3,834 | |||||||||||||||||||||||
Gathering and transportation | 5,556 | 3,725 | — | 9,281 | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 133,758 | 117,784 | — | 251,542 | |||||||||||||||||||||||
General and administrative expenses | 22,083 | 21,187 | — | 43,270 | |||||||||||||||||||||||
Derivative loss | 20,571 | — | — | 20,571 | |||||||||||||||||||||||
Total costs and expenses | 265,526 | 180,356 | — | 445,882 | |||||||||||||||||||||||
Operating income | 40,531 | 31,097 | — | 71,628 | |||||||||||||||||||||||
Earnings of affiliates | 20,390 | — | (20,390 | ) | — | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||
Incurred | 41,294 | 1,618 | — | 42,912 | |||||||||||||||||||||||
Capitalized | (2,613 | ) | (1,618 | ) | — | (4,231 | ) | ||||||||||||||||||||
Income before income tax expense | 22,240 | 31,097 | (20,390 | ) | 32,947 | ||||||||||||||||||||||
Income tax expense (benefit) | 1,214 | 10,707 | — | 11,921 | |||||||||||||||||||||||
Net income | $ | 21,026 | $ | 20,390 | $ | (20,390 | ) | $ | 21,026 | ||||||||||||||||||
Condensed Consolidating Statement of Income for the Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Revenues | $ | 147,070 | $ | 88,313 | $ | — | $ | 235,383 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Lease operating expenses | 51,406 | 16,842 | — | 68,248 | |||||||||||||||||||||||
Production taxes | 1,780 | — | — | 1,780 | |||||||||||||||||||||||
Gathering and transportation | 2,833 | 1,775 | — | 4,608 | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 55,706 | 44,190 | — | 99,896 | |||||||||||||||||||||||
General and administrative expenses | 11,473 | 8,395 | — | 19,868 | |||||||||||||||||||||||
Derivative loss | (12,840 | ) | — | — | (12,840 | ) | |||||||||||||||||||||
Total costs and expenses | 110,358 | 71,202 | — | 181,560 | |||||||||||||||||||||||
Operating income | 36,712 | 17,111 | — | 53,823 | |||||||||||||||||||||||
Earnings of affiliates | 11,143 | — | (11,143 | ) | — | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||
Incurred | 20,789 | 747 | — | 21,536 | |||||||||||||||||||||||
Capitalized | (1,785 | ) | (747 | ) | — | (2,532 | ) | ||||||||||||||||||||
Income before income tax expense | 28,851 | 17,111 | (11,143 | ) | 34,819 | ||||||||||||||||||||||
Income tax expense | 6,455 | 5,968 | — | 12,423 | |||||||||||||||||||||||
Net income | $ | 22,396 | $ | 11,143 | $ | (11,143 | ) | $ | 22,396 | ||||||||||||||||||
Condensed Consolidating Statement of Income for the Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Revenues | $ | 317,611 | $ | 176,994 | $ | — | $ | 494,605 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Lease operating expenses | 94,676 | 32,914 | — | 127,590 | |||||||||||||||||||||||
Production taxes | 3,569 | — | — | 3,569 | |||||||||||||||||||||||
Gathering and transportation | 5,112 | 3,940 | — | 9,052 | |||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 118,908 | 89,859 | — | 208,767 | |||||||||||||||||||||||
General and administrative expenses | 23,885 | 17,070 | — | 40,955 | |||||||||||||||||||||||
Derivative loss | (9,473 | ) | — | — | (9,473 | ) | |||||||||||||||||||||
Total costs and expenses | 236,677 | 143,783 | — | 380,460 | |||||||||||||||||||||||
Operating income | 80,934 | 33,211 | — | 114,145 | |||||||||||||||||||||||
Earnings of affiliates | 21,641 | — | (21,641 | ) | — | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||
Incurred | 41,307 | 1,463 | — | 42,770 | |||||||||||||||||||||||
Capitalized | (3,501 | ) | (1,463 | ) | — | (4,964 | ) | ||||||||||||||||||||
Income before income tax expense | 64,769 | 33,211 | (21,641 | ) | 76,339 | ||||||||||||||||||||||
Income tax expense | 15,755 | 11,570 | — | 27,325 | |||||||||||||||||||||||
Net income | $ | 49,014 | $ | 21,641 | $ | (21,641 | ) | $ | 49,014 | ||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||||
Net income | $ | 21,026 | $ | 20,390 | $ | (20,390 | ) | $ | 21,026 | ||||||||||||||||||
Adjustments to reconcile net income to net cash | |||||||||||||||||||||||||||
provided by operating activities: | |||||||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 133,758 | 117,784 | — | 251,542 | |||||||||||||||||||||||
Amortization of debt issuance costs and premium | 366 | — | — | 366 | |||||||||||||||||||||||
Share-based compensation | 7,644 | — | — | 7,644 | |||||||||||||||||||||||
Derivative loss | 20,571 | — | — | 20,571 | |||||||||||||||||||||||
Cash payments on derivative settlements (realized) | (14,310 | ) | — | — | (14,310 | ) | |||||||||||||||||||||
Deferred income taxes | 25,078 | (13,157 | ) | — | 11,921 | ||||||||||||||||||||||
Earnings of affiliates | (20,390 | ) | — | 20,390 | — | ||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Oil and natural gas receivables | 7,636 | (5,301 | ) | — | 2,335 | ||||||||||||||||||||||
Joint interest and other receivables | 3,550 | — | — | 3,550 | |||||||||||||||||||||||
Income taxes | (20,947 | ) | 23,865 | — | 2,918 | ||||||||||||||||||||||
Prepaid expenses and other assets | (127,910 | ) | (86,875 | ) | 219,224 | 4,439 | |||||||||||||||||||||
Asset retirement obligations settlements | (18,583 | ) | (11,755 | ) | — | (30,338 | ) | ||||||||||||||||||||
Accounts payable, accrued liabilities and other | 203,344 | 5,266 | (219,224 | ) | (10,614 | ) | |||||||||||||||||||||
Net cash provided by operating activities | 220,833 | 50,217 | — | 271,050 | |||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||||
Acquisition of property interest in oil and natural gas properties | — | (53,363 | ) | — | (53,363 | ) | |||||||||||||||||||||
Investment in oil and natural gas properties and equipment | (157,128 | ) | (55,552 | ) | — | (212,680 | ) | ||||||||||||||||||||
Investment in subsidiary | (58,698 | ) | — | 58,698 | — | ||||||||||||||||||||||
Purchases of furniture, fixtures and other | (1,715 | ) | — | — | (1,715 | ) | |||||||||||||||||||||
Net cash used in investing activities | (217,541 | ) | (108,915 | ) | 58,698 | (267,758 | ) | ||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||
Borrowings of long-term debt – revolving bank credit facility | 220,000 | — | — | 220,000 | |||||||||||||||||||||||
Repayments of long-term debt – revolving bank credit | (200,000 | ) | — | — | (200,000 | ) | |||||||||||||||||||||
facility | |||||||||||||||||||||||||||
Dividends to shareholders | (15,129 | ) | — | — | (15,129 | ) | |||||||||||||||||||||
Other | (116 | ) | — | — | (116 | ) | |||||||||||||||||||||
Investment from parent | — | 58,698 | (58,698 | ) | — | ||||||||||||||||||||||
Net cash provided (used) in financing activities | 4,755 | 58,698 | (58,698 | ) | 4,755 | ||||||||||||||||||||||
Increase in cash and cash equivalents | 8,047 | — | — | 8,047 | |||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 15,800 | — | — | 15,800 | |||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 23,847 | $ | — | $ | — | $ | 23,847 | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||
Parent | Guarantor | W&T | |||||||||||||||||||||||||
Company | Subsidiaries | Eliminations | Offshore, Inc. | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||||
Net income | $ | 49,014 | $ | 21,641 | $ | (21,641 | ) | $ | 49,014 | ||||||||||||||||||
Adjustments to reconcile net income to net cash | |||||||||||||||||||||||||||
provided by operating activities: | |||||||||||||||||||||||||||
Depreciation, depletion, amortization and accretion | 118,908 | 89,859 | — | 208,767 | |||||||||||||||||||||||
Amortization of debt issuance costs and premium | 910 | — | — | 910 | |||||||||||||||||||||||
Share-based compensation | 4,950 | — | — | 4,950 | |||||||||||||||||||||||
Derivative gain | (9,473 | ) | — | — | (9,473 | ) | |||||||||||||||||||||
Cash payments on derivative settlements | (2,310 | ) | — | — | (2,310 | ) | |||||||||||||||||||||
Deferred income taxes | 11,357 | 12,369 | — | 23,726 | |||||||||||||||||||||||
Earnings of affiliates | (21,641 | ) | — | 21,641 | — | ||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Oil and natural gas receivables | 15,673 | 1,390 | — | 17,063 | |||||||||||||||||||||||
Joint interest and other receivables | 38,635 | — | — | 38,635 | |||||||||||||||||||||||
Income taxes | 9,378 | (799 | ) | — | 8,579 | ||||||||||||||||||||||
Prepaid expenses and other assets | (26,487 | ) | (27,054 | ) | 41,160 | (12,381 | ) | ||||||||||||||||||||
Asset retirement obligations | (29,740 | ) | (3,146 | ) | — | (32,886 | ) | ||||||||||||||||||||
Accounts payable, accrued liabilities and other | 44,054 | (126 | ) | (41,160 | ) | 2,768 | |||||||||||||||||||||
Net cash provided by operating activities | 203,228 | 94,134 | — | 297,362 | |||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||||
Investment in oil and natural gas properties and equipment | (205,079 | ) | (94,134 | ) | — | (299,213 | ) | ||||||||||||||||||||
Purchases of furniture, fixtures and other | (981 | ) | — | — | (981 | ) | |||||||||||||||||||||
Net cash used in investing activities | (206,060 | ) | (94,134 | ) | — | (300,194 | ) | ||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||
Borrowings of long-term debt – revolving bank credit facility | 252,000 | — | — | 252,000 | |||||||||||||||||||||||
Repayments of long-term debt – revolving bank credit facility | (239,000 | ) | — | — | (239,000 | ) | |||||||||||||||||||||
Dividends to shareholders | (12,795 | ) | — | — | (12,795 | ) | |||||||||||||||||||||
Other | (342 | ) | — | — | (342 | ) | |||||||||||||||||||||
Net cash used in financing activities | (137 | ) | — | — | (137 | ) | |||||||||||||||||||||
Increase in cash and cash equivalents | (2,969 | ) | — | — | (2,969 | ) | |||||||||||||||||||||
Cash and cash equivalents, beginning of period | 12,245 | — | — | 12,245 | |||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 9,276 | $ | — | $ | — | $ | 9,276 | |||||||||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
MMcf | MMcf | ||
Basis Of Presentation [Line Items] | ' | ' | ' |
Allowance for doubtful accounts receivable | ' | ' | $0 |
Increase in natural gas production volumes | 254 | 518 | ' |
Adjustment to depreciation, depletion, amortization and accretion | 0.7 | 1.5 | ' |
Reduction in net income | $0.50 | $1 | ' |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||||
Jul. 11, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 20-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 17, 2013 | Sep. 26, 2013 | Jun. 30, 2014 | |
Woodside Properties | Woodside Properties | Woodside Properties | Callon Properties | Callon Properties | Callon Properties | Callon Properties | Callon Properties | West Delta Area Block Twenty Nine | West Delta Area Block Twenty Nine | |||||||
Post Effective Date Repayment | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of non-operating working interest sold | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, less current maturities | ' | $1,224,262,000 | ' | $1,224,262,000 | ' | $1,205,421,000 | ' | $53,400,000 | $53,400,000 | ' | $83,000,000 | ' | $83,000,000 | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | 1.80% | 1.80% | ' | 2.00% | ' | 2.00% | ' | ' | ' |
Federal statutory income tax rate | ' | 35.00% | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | 35.00% | ' | ' | ' |
Percentage of working interest include in producing interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Adjustments to purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' |
Expenses associated with acquisition activities and transition activities | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' | 0 | ' | 0 | ' | ' | ' |
Revenues | ' | 262,994,000 | 235,383,000 | 517,510,000 | 494,605,000 | ' | ' | 6,900,000 | 6,900,000 | 8,700,000 | ' | 17,400,000 | ' | ' | ' | ' |
Lease operating expenses | ' | 61,765,000 | 68,248,000 | 117,384,000 | 127,590,000 | ' | ' | 700,000 | 700,000 | 1,000,000 | ' | 2,000,000 | ' | ' | ' | ' |
Depreciation, depletion, amortization and accretion | ' | 128,236,000 | 99,896,000 | 251,542,000 | 208,767,000 | ' | ' | 2,200,000 | 2,200,000 | 1,600,000 | ' | 7,000,000 | ' | ' | ' | ' |
Income tax expense | ' | 5,273,000 | 12,423,000 | 11,921,000 | 27,325,000 | ' | ' | 1,400,000 | 1,400,000 | 2,100,000 | ' | 2,900,000 | ' | ' | ' | ' |
Net income | ' | 9,837,000 | 22,396,000 | 21,026,000 | 49,014,000 | ' | ' | 2,600,000 | 2,600,000 | 4,000,000 | ' | 5,500,000 | ' | ' | ' | ' |
Reversal of asset retirement obligation | 15,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' |
Adjustment for effective date to sell properties | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of non-operating working interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,700,000 | $1,700,000 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation for Acquisition (Details) (USD $) | 20-May-14 | 20-May-14 | 20-May-14 | Oct. 17, 2013 | Oct. 17, 2013 | Oct. 17, 2013 |
In Thousands, unless otherwise specified | Woodside Properties | Woodside Properties | Woodside Properties | Callon Properties | Callon Properties | Callon Properties |
Evaluated Properties | Unevaluated Properties | Evaluated Properties | Unevaluated Properties | |||
Cash consideration: | ' | ' | ' | ' | ' | ' |
Oil and natural gas properties and equipment | $53,363 | $50,703 | $2,660 | $83,000 | $73,752 | $9,248 |
Non-cash consideration: | ' | ' | ' | ' | ' | ' |
Asset retirement obligations - current | 782 | ' | ' | 90 | ' | ' |
Asset retirement obligations - non-current | 10,543 | ' | ' | 4,143 | ' | ' |
Sub-total non-cash consideration | 11,325 | ' | ' | 4,233 | ' | ' |
Total consideration | $64,688 | ' | ' | $87,233 | ' | ' |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Summary of Proforma Financial Information for Acquisition (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Woodside Properties | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Revenue | $272,022 | $251,361 | $540,397 | $528,291 |
Net income | 12,206 | 27,602 | 27,236 | 60,470 |
Basic and diluted earnings per common share | $0.16 | $0.36 | $0.36 | $0.79 |
Callon Properties | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Revenue | ' | 243,840 | ' | 514,415 |
Net income | ' | $24,020 | ' | $53,722 |
Basic and diluted earnings per common share | ' | $0.32 | ' | $0.71 |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures - Business Acquisition Pro Forma Information Incremental Item (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | $262,994 | $235,383 | $517,510 | $494,605 | ||||
Lease operating expenses | 61,765 | 68,248 | 117,384 | 127,590 | ||||
DD&A | 128,236 | 99,896 | 251,542 | 208,767 | ||||
G&A | 19,682 | 19,868 | 43,270 | 40,955 | ||||
Interest expense | 21,454 | 21,536 | 42,912 | 42,770 | ||||
Capitalized interest | 2,159 | 2,532 | 4,231 | 4,964 | ||||
Income tax expense | 5,273 | 12,423 | 11,921 | 27,325 | ||||
Woodside Properties | ' | ' | ' | ' | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | 6,900 | ' | 6,900 | ' | ||||
Lease operating expenses | 700 | ' | 700 | ' | ||||
DD&A | 2,200 | ' | 2,200 | ' | ||||
Income tax expense | 1,400 | ' | 1,400 | ' | ||||
Woodside Properties | Pro Forma | ' | ' | ' | ' | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | 9,028 | [1] | 15,978 | [1] | 22,887 | [1] | 33,686 | [1] |
Lease operating expenses | 1,805 | [1] | 2,591 | [1] | 4,417 | [1] | 4,990 | [1] |
DD&A | 3,305 | [2] | 4,917 | [2] | 8,218 | [2] | 10,204 | [2] |
G&A | 200 | [3] | 200 | [3] | 400 | [3] | 400 | [3] |
Interest expense | 80 | [4] | 240 | [4] | 320 | [4] | 480 | [4] |
Capitalized interest | -6 | [5] | 20 | [5] | -22 | [5] | -13 | [5] |
Income tax expense | 1,275 | [6] | 2,804 | [6] | 3,344 | [6] | 6,169 | [6] |
Callon Properties | ' | ' | ' | ' | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | 8,700 | ' | 17,400 | ' | ||||
Lease operating expenses | 1,000 | ' | 2,000 | ' | ||||
DD&A | 1,600 | ' | 7,000 | ' | ||||
Income tax expense | 2,100 | ' | 2,900 | ' | ||||
Callon Properties | Pro Forma | ' | ' | ' | ' | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ||||
Revenues | ' | 8,457 | [7] | ' | 19,810 | [7] | ||
Lease operating expenses | ' | 1,886 | [7] | ' | 3,930 | [7] | ||
DD&A | ' | 3,714 | [8] | ' | 7,945 | [8] | ||
Interest expense | ' | 415 | [9] | ' | 830 | [9] | ||
Capitalized interest | ' | -56 | [5] | ' | -138 | [5] | ||
Income tax expense | ' | $874 | [6] | ' | $2,535 | [6] | ||
[1] | Revenues and direct operating expenses for the Woodside Properties were derived from the historical financial records of Woodside. | |||||||
[2] | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside Propertiesb costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||
[3] | Estimated insurance costs related to the Woodside Properties. | |||||||
[4] | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $53.4 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. | |||||||
[5] | The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses. | |||||||
[6] | Income tax expense was computed using the 35% federal statutory rate. | |||||||
[7] | Revenues and direct operating expenses for the Callon Properties were derived from the historical financial records of Callon. | |||||||
[8] | DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon Propertiesb costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management. | |||||||
[9] | The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $83.0 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility. |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Reconciliation of Asset Retirement Obligations Liability (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' | |
Asset retirement obligations, beginning of period | $354,422 | ' | |
Liabilities settled | -30,338 | ' | |
Accretion of discount | 10,112 | ' | |
Liabilities assumed through acquisition | 15,086 | [1] | ' |
Liabilities incurred | 755 | ' | |
Revisions of estimated liabilities | 7,566 | [2] | ' |
Asset retirement obligations, end of period | 357,603 | ' | |
Less current portion | 69,923 | 77,785 | |
Long-term | $287,680 | $276,637 | |
[1] | Includes the Woodside Properties acquisition and another immaterial acquisition. | ||
[2] | Revisions were primarily due to increased estimates related to work requiring coiled tubing at two locations and removal of a platform at one location. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Open Commodity Derivatives (Details) (Swaps - Oil) | 6 Months Ended |
Jun. 30, 2014 | |
bbl | |
Ice Brent Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 322,000 |
Weighted Average Contract Price | 97.37 |
Nymex Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 62,000 |
Weighted Average Contract Price | 97.01 |
Argus Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 1,288,000 |
Weighted Average Contract Price | 97.84 |
2014: 3rd Quarter | ' |
Derivatives Fair Value [Line Items] | ' |
Termination Period | '3rd Quarter |
2014: 3rd Quarter | Ice Brent Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 165,600 |
Weighted Average Contract Price | 97.38 |
2014: 3rd Quarter | Nymex Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 62,000 |
Weighted Average Contract Price | 97.01 |
2014: 3rd Quarter | Argus Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 828,000 |
Weighted Average Contract Price | 97.69 |
2014: 4th Quarter | ' |
Derivatives Fair Value [Line Items] | ' |
Termination Period | '4th Quarter |
2014: 4th Quarter | Ice Brent Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 156,400 |
Weighted Average Contract Price | 97.37 |
2014: 4th Quarter | Argus Crude Oil Futures | ' |
Derivatives Fair Value [Line Items] | ' |
Notional Quantity (Bbls) | 460,000 |
Weighted Average Contract Price | 98.12 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Estimated Fair Value of Derivative Contracts (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ' | ' |
Fair value of commodity derivative contracts | ' | $141 |
Fair value of commodity derivative contracts | 15,543 | 9,423 |
Prepaid And Other Assets | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Fair value of commodity derivative contracts | ' | 141 |
Accrued Liabilities | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Fair value of commodity derivative contracts | $15,543 | $9,423 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments -Changes in Fair Value of Commodity Derivative Contracts Recognized in Earnings (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative (gain) loss: | ' | ' | ' | ' |
Realized | $9,640 | ($1,961) | $14,310 | $2,310 |
Unrealized | 3,439 | -10,879 | 6,261 | -11,783 |
Total | $13,079 | ($12,840) | $20,571 | ($9,473) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments -Reconciliation of Gross Assets and Liabilities and Netting Agreements on Fair Value of Open Derivative Contracts (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets | ' | ' |
Fair value of commodity derivative contracts | ' | $141 |
Amounts not offset in the balance sheet | ' | -141 |
Derivative Liabilities | ' | ' |
Fair value of commodity derivative contracts | 15,543 | 9,423 |
Amounts not offset in the balance sheet | ' | -141 |
Net Amounts | $15,543 | $9,282 |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt - Long-Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
8.50% Senior Notes | $900,000 | $900,000 |
Debt premium, net of amortization | 14,262 | 15,421 |
Revolving bank credit facility | 310,000 | 290,000 |
Total long-term debt | 1,224,262 | 1,205,421 |
Current maturities of long-term debt | ' | ' |
Long term debt, less current maturities | $1,224,262 | $1,205,421 |
LongTerm_Debt_LongTerm_Debt_Pa
Long-Term Debt - Long-Term Debt (Parenthetical) (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 8.50% | 8.50% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 8.50% | 8.50% |
Senior notes payment terms | 'Interest on the 8.50% Senior Notes is payable semi-annually in arrears on June 15 and December 15. | 'Interest on the 8.50% Senior Notes is payable semi-annually in arrears on June 15 and December 15. |
Senior notes maturity date | 15-Jun-19 | ' |
Letters of credit outstanding | $0.60 | $0.40 |
Revolving bank credit facility borrowing base | 750 | ' |
Line of credit, borrowing availability | $439.40 | ' |
Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Effective interest rate | 2.90% | ' |
Credit Agreement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit agreement expiration date | 8-Nov-18 | ' |
Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Effective interest rate | 8.40% | 8.40% |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value of Derivatives Financial Instruments and Long-Term Senior Notes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | ' | $141 |
Derivative liabilities | 15,543 | 9,423 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | ' | 141 |
Derivative liabilities | 15,543 | 9,423 |
8.50% Senior Notes | 974,250 | 962,460 |
Revolving bank credit facility | $310,000 | $290,000 |
ShareBased_Compensation_and_Ca2
Share-Based Compensation and Cash-Based Incentive Compensation - Additional Information (Details) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | CEO's 2013 Award | Directors Compensation Plan | Restricted Stock | Restricted Stock | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | ||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted EBITDA margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 100.00% | ' | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | $14.66 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock available for award under plans | 5,032,939 | ' | ' | ' | ' | ' | ' | ' | ' | 500,564 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted, grant date fair value | ' | ' | $19.90 | $12.80 | ' | ' | ' | ' | ' | ' | $0.30 | $0.30 | ' | ' | ' | ' | ' | ' |
Shares vested, vested date fair value | ' | ' | 0.1 | 0 | ' | ' | ' | ' | ' | ' | 0.3 | 0.4 | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum | ' | ' | ' | ' | ' | ' | 0.27% | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, maximum | ' | ' | ' | ' | ' | ' | 0.91% | 0.72% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility, minimum | ' | ' | ' | ' | 30.00% | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility, maximum | ' | ' | ' | ' | 63.00% | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | 3.10% | 2.50% |
Correlation of movement of total shareholder return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -84.00% | -67.00% | ' | 95.00% | 94.00% |
Number of shares granted | 18,815 | ' | 1,178,326 | ' | ' | ' | ' | ' | 42,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 42,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation expense | ' | $0.60 | $23.80 | ' | ' | ' | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' |
Recognition period for unrecognized compensation expense | ' | '2015-02 | '2016-11 | ' | ' | ' | ' | ' | ' | ' | '2016-04 | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_and_Ca3
Share-Based Compensation and Cash-Based Incentive Compensation - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Nonvested, beginning of period | 43,840 |
Granted | 18,815 |
Vested | -19,445 |
Nonvested, end of period | 43,210 |
Weighted Average Grant Date Value, Beginning of period | $15.96 |
Weighted Average Grant Date Fair Value, Granted | $18.60 |
Weighted Average Grant Date Fair Value, Vested | $18 |
Weighted Average Grant Date Value, End of period | $16.20 |
ShareBased_Compensation_and_Ca4
Share-Based Compensation and Cash-Based Incentive Compensation - Schedule of Restricted Stock Awards Outstanding (Details) | 6 Months Ended | |
Jun. 30, 2014 | ||
Restricted Stock | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 43,210 | |
Restricted Stock Units (RSUs) | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 2,469,318 | |
2015 | Restricted Stock | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 21,520 | |
2015 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 705,176 | |
2015 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service and other requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 180,211 | [1] |
2016 | Restricted Stock | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 15,420 | |
2016 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 3,400 | |
2016 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service and other requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 1,163,489 | [2] |
2017 | Restricted Stock | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 6,270 | |
2014 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 350,319 | |
2014 | Restricted Stock Units (RSUs) | Restricted Stock Units subject to service and other requirements | ' | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | |
Awards expected to vest by period | 66,723 | [3] |
[1] | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 200% of amounts granted. | |
[2] | In addition to service requirements, these RSUs are also subject to Company specific performance requirements not yet measureable, with awards ranging from 0% to 100% of amounts granted. | |
[3] | In addition to service requirements, these RSUs are also subject to TSR performance requirements not yet measureable, with awards ranging from 0% to 150% of amounts granted. |
ShareBased_Compensation_and_Ca5
Share-Based Compensation and Cash-Based Incentive Compensation - Summary of Share Activity Related to Restricted Stock Units (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Nonvested, beginning of period | 43,840 |
Granted | 18,815 |
Vested | -19,445 |
Nonvested, end of period | 43,210 |
Weighted Average Grant Date Value, Beginning of period | $15.96 |
Weighted Average Grant Date Fair Value, Granted | $18.60 |
Weighted Average Grant Date Fair Value, Vested | $18 |
Weighted Average Grant Date Value, End of period | $16.20 |
Restricted Stock Units (RSUs) | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Nonvested, beginning of period | 1,331,753 |
Granted | 1,178,326 |
Vested | -4,662 |
Forfeited | -36,099 |
Nonvested, end of period | 2,469,318 |
Weighted Average Grant Date Value, Beginning of period | $14.96 |
Weighted Average Grant Date Fair Value, Granted | $16.86 |
Weighted Average Grant Date Fair Value, Vested | $16.26 |
Weighted Average Grant Date Fair Value, Forfeited | $15.54 |
Weighted Average Grant Date Value, End of period | $15.85 |
ShareBased_Compensation_and_Ca6
Share-Based Compensation and Cash-Based Incentive Compensation - Schedule of Restricted Stock Awards Outstanding (Parenthetical) (Details) (Restricted Stock Units (RSUs), Restricted Stock Units subject to service and other requirements) | 6 Months Ended |
Jun. 30, 2014 | |
Minimum | 2014 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 0.00% |
Minimum | 2015 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 0.00% |
Minimum | 2016 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 0.00% |
Maximum | 2014 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 150.00% |
Maximum | 2015 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 200.00% |
Maximum | 2016 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Restricted stock units adjustments, percentage | 100.00% |
ShareBased_Compensation_and_Ca7
Share-Based Compensation and Cash-Based Incentive Compensation - Summary of Compensation Expense under Share-Based Payment Arrangements and Related Tax Benefit (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation | $3,887 | $2,695 | $7,644 | $4,950 |
Tax benefit computed at the statutory rate | 1,360 | 943 | 2,675 | 1,733 |
Restricted Stock | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation | 84 | 99 | 183 | 198 |
Restricted Stock Units | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation | 3,625 | 2,596 | 6,161 | 4,752 |
Common Shares | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation | $178 | ' | $1,300 | ' |
ShareBased_Compensation_and_Ca8
Share-Based Compensation and Cash-Based Incentive Compensation - Summary of Incentive Compensation Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation charged to operating income | $3,887 | $2,695 | $7,644 | $4,950 | ||||
Total charged to operating income | 5,894 | 5,466 | 12,734 | 12,644 | ||||
General and Administrative | ' | ' | ' | ' | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Share-based compensation charged to operating income | 3,887 | [1] | 2,695 | [1] | 7,644 | [1] | 4,950 | [1] |
Cash-based incentive compensation charged to operating income | 1,532 | [1] | 2,024 | [1] | 3,313 | [1] | 5,554 | [1] |
Lease Operating Expense | ' | ' | ' | ' | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Cash-based incentive compensation charged to operating income | $475 | $747 | $1,777 | $2,140 | ||||
[1] | Reclassified $0.7 million from cash-based incentive compensation expense to share-based compensation expense in the six months ended June 30, 2014 related to the CEObs 2013 award. |
ShareBased_Compensation_and_Ca9
Share-Based Compensation and Cash-Based Incentive Compensation - Summary of Incentive Compensation Expense (Parenthetical) (Details) (CEO's 2013 Award, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
CEO's 2013 Award | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' |
Reclassification of incentive compensation | $0.70 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' | ' | ' |
Income tax expense | $5,273,000 | $12,423,000 | $11,921,000 | $27,325,000 | ' |
Effective tax rate | 34.90% | 35.70% | 36.20% | 35.80% | ' |
Federal statutory income tax rate | 35.00% | ' | ' | ' | ' |
Unrecognized Tax Benefits | ' | ' | ' | ' | 9,500,000 |
Proceeds from income tax refunds | ' | ' | 3,000,000 | ' | 59,100,000 |
Maximum | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' | ' | ' |
Accrued interest related to unrecognized tax benefit | $100,000 | $100,000 | $100,000 | $100,000 | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Calculation of Basic and Diluted Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share Basic and Diluted | ' | ' | ' | ' |
Net income | $9,837 | $22,396 | $21,026 | $49,014 |
Less portion allocated to nonvested shares | 100 | 275 | 219 | 556 |
Net income allocated to common shares | $9,737 | $22,121 | $20,807 | $48,458 |
Weighted average common shares outstanding | 75,605 | 75,223 | 75,581 | 75,215 |
Basic and diluted earnings per common share | $0.13 | $0.29 | $0.28 | $0.64 |
Shares excluded due to being anti-dilutive (weighted-average) | ' | 859 | ' | 864 |
Dividends_Additional_Informati
Dividends - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 06, 2014 | |
Subsequent Event | |||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' |
Paid cash dividends, per share | ' | ' | $0.20 | $0.17 | ' |
Dividends declared per common share | $0.10 | $0.09 | $0.20 | $0.17 | $0.10 |
Dividend payable, date declared, day month and year | ' | ' | ' | ' | 6-Aug-14 |
Dividends payable, date to be paid, day, month and year | ' | ' | ' | ' | 12-Sep-14 |
Dividends payable, date of record, day, month and year | ' | ' | ' | ' | 22-Aug-14 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2013 | Sep. 30, 2010 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Under payment of royalties | $30,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Under payment percentage of total royalty payments | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory fine payment relative to underpayment | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' |
Insurance claim expect to be recovered under the excess policies | ' | 46,300,000 | ' | ' | 46,300,000 | ' | ' | ' | ' |
Reduction in royalties for transportation services | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' |
Notified disallowed amount in reductions taken by ONRR | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 |
Expenses related to claims, complaints and fines | ' | 400,000 | ' | 100,000 | 300,000 | 100,000 | ' | ' | ' |
Liability loss contingency | ' | $500,000 | ' | ' | $500,000 | ' | ' | $200,000 | ' |
Supplement_Guarantor_Informati
Supplement Guarantor Information - Additional Information (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Senior notes interest rate | 8.50% | 8.50% |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $23,847 | $15,800 | $9,276 | $12,245 |
Receivables: | ' | ' | ' | ' |
Oil and natural gas sales | 94,417 | 96,752 | ' | ' |
Joint interest and other | 26,584 | 27,984 | ' | ' |
Income tax | 120 | 3,120 | ' | ' |
Total receivables | 121,121 | 127,856 | ' | ' |
Prepaid expenses and other assets | 38,644 | 29,946 | ' | ' |
Total current assets | 183,612 | 173,602 | ' | ' |
Property and equipment - at cost: | ' | ' | ' | ' |
Oil and natural gas properties and equipment | 7,628,208 | 7,339,097 | ' | ' |
Furniture, fixtures and other | 21,660 | 21,431 | ' | ' |
Total property and equipment | 7,649,868 | 7,360,528 | ' | ' |
Less accumulated depreciation, depletion and amortization | 5,326,074 | 5,084,704 | ' | ' |
Net property and equipment | 2,323,794 | 2,275,824 | ' | ' |
Restricted deposits for asset retirement obligations | 23,723 | 37,421 | ' | ' |
Other assets | 18,643 | 20,455 | ' | ' |
Total assets | 2,549,772 | 2,507,302 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 140,495 | 145,212 | ' | ' |
Undistributed oil and natural gas proceeds | 39,202 | 42,107 | ' | ' |
Asset retirement obligations | 69,923 | 77,785 | ' | ' |
Accrued liabilities | 31,299 | 28,000 | ' | ' |
Total current liabilities | 280,919 | 293,104 | ' | ' |
Long-term debt, less current maturities | 1,224,262 | 1,205,421 | ' | ' |
Asset retirement obligations, less current portion | 287,680 | 276,637 | ' | ' |
Deferred income taxes | 189,902 | 178,142 | ' | ' |
Other liabilities | 13,622 | 13,388 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Common stock | 1 | 1 | ' | ' |
Additional paid-in capital | 410,642 | 403,564 | ' | ' |
Retained earnings | 166,911 | 161,212 | ' | ' |
Treasury stock, at cost | -24,167 | -24,167 | ' | ' |
Total shareholdersb equity | 553,387 | 540,610 | ' | ' |
Total liabilities and shareholdersb equity | 2,549,772 | 2,507,302 | ' | ' |
Eliminations | ' | ' | ' | ' |
Receivables: | ' | ' | ' | ' |
Income tax | -144,856 | -92,491 | ' | ' |
Total receivables | -144,856 | -92,491 | ' | ' |
Total current assets | -144,856 | -92,491 | ' | ' |
Property and equipment - at cost: | ' | ' | ' | ' |
Other assets | -1,709,000 | -1,410,568 | ' | ' |
Total assets | -1,853,856 | -1,503,059 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued liabilities | -144,856 | -92,491 | ' | ' |
Total current liabilities | -144,856 | -92,491 | ' | ' |
Other liabilities | -646,966 | -427,621 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | -842,801 | -784,104 | ' | ' |
Retained earnings | -219,233 | -198,843 | ' | ' |
Total shareholdersb equity | -1,062,034 | -982,947 | ' | ' |
Total liabilities and shareholdersb equity | -1,853,856 | -1,503,059 | ' | ' |
Parent Company | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 23,847 | 15,800 | 9,276 | 12,245 |
Receivables: | ' | ' | ' | ' |
Oil and natural gas sales | 53,737 | 61,373 | ' | ' |
Joint interest and other | 26,584 | 27,984 | ' | ' |
Income tax | 144,976 | 95,611 | ' | ' |
Total receivables | 225,297 | 184,968 | ' | ' |
Prepaid expenses and other assets | 34,462 | 23,674 | ' | ' |
Total current assets | 283,606 | 224,442 | ' | ' |
Property and equipment - at cost: | ' | ' | ' | ' |
Oil and natural gas properties and equipment | 5,817,544 | 5,667,389 | ' | ' |
Furniture, fixtures and other | 21,660 | 21,431 | ' | ' |
Total property and equipment | 5,839,204 | 5,688,820 | ' | ' |
Less accumulated depreciation, depletion and amortization | 4,295,168 | 4,166,359 | ' | ' |
Net property and equipment | 1,544,036 | 1,522,461 | ' | ' |
Restricted deposits for asset retirement obligations | 23,723 | 37,421 | ' | ' |
Other assets | 1,160,693 | 951,203 | ' | ' |
Total assets | 3,012,058 | 2,735,527 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 134,748 | 144,492 | ' | ' |
Undistributed oil and natural gas proceeds | 38,591 | 41,735 | ' | ' |
Asset retirement obligations | 61,509 | 65,329 | ' | ' |
Accrued liabilities | 59,800 | 28,000 | ' | ' |
Total current liabilities | 294,648 | 279,556 | ' | ' |
Long-term debt, less current maturities | 1,224,262 | 1,205,421 | ' | ' |
Asset retirement obligations, less current portion | 172,999 | 189,507 | ' | ' |
Deferred income taxes | 106,175 | 79,424 | ' | ' |
Other liabilities | 660,588 | 441,009 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Common stock | 1 | 1 | ' | ' |
Additional paid-in capital | 410,641 | 403,564 | ' | ' |
Retained earnings | 166,911 | 161,212 | ' | ' |
Treasury stock, at cost | -24,167 | -24,167 | ' | ' |
Total shareholdersb equity | 553,386 | 540,610 | ' | ' |
Total liabilities and shareholdersb equity | 3,012,058 | 2,735,527 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Receivables: | ' | ' | ' | ' |
Oil and natural gas sales | 40,680 | 35,379 | ' | ' |
Total receivables | 40,680 | 35,379 | ' | ' |
Prepaid expenses and other assets | 4,182 | 6,272 | ' | ' |
Total current assets | 44,862 | 41,651 | ' | ' |
Property and equipment - at cost: | ' | ' | ' | ' |
Oil and natural gas properties and equipment | 1,810,664 | 1,671,708 | ' | ' |
Total property and equipment | 1,810,664 | 1,671,708 | ' | ' |
Less accumulated depreciation, depletion and amortization | 1,030,906 | 918,345 | ' | ' |
Net property and equipment | 779,758 | 753,363 | ' | ' |
Other assets | 566,950 | 479,820 | ' | ' |
Total assets | 1,391,570 | 1,274,834 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 5,747 | 720 | ' | ' |
Undistributed oil and natural gas proceeds | 611 | 372 | ' | ' |
Asset retirement obligations | 8,414 | 12,456 | ' | ' |
Accrued liabilities | 116,355 | 92,491 | ' | ' |
Total current liabilities | 131,127 | 106,039 | ' | ' |
Asset retirement obligations, less current portion | 114,681 | 87,130 | ' | ' |
Deferred income taxes | 83,727 | 98,718 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | 842,802 | 784,104 | ' | ' |
Retained earnings | 219,233 | 198,843 | ' | ' |
Total shareholdersb equity | 1,062,035 | 982,947 | ' | ' |
Total liabilities and shareholdersb equity | $1,391,570 | $1,274,834 | ' | ' |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information - Condensed Consolidating Statement of Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | $262,994 | $235,383 | $517,510 | $494,605 |
Operating costs and expenses: | ' | ' | ' | ' |
Lease operating expenses | 61,765 | 68,248 | 117,384 | 127,590 |
Production taxes | 1,842 | 1,780 | 3,834 | 3,569 |
Gathering and transportation | 3,985 | 4,608 | 9,281 | 9,052 |
Depreciation, depletion, amortization and accretion | 128,236 | 99,896 | 251,542 | 208,767 |
General and administrative expenses | 19,682 | 19,868 | 43,270 | 40,955 |
Derivative loss | -13,079 | 12,840 | -20,571 | 9,473 |
Total costs and expenses | 228,589 | 181,560 | 445,882 | 380,460 |
Operating income | 34,405 | 53,823 | 71,628 | 114,145 |
Interest expense: | ' | ' | ' | ' |
Incurred | 21,454 | 21,536 | 42,912 | 42,770 |
Capitalized | -2,159 | -2,532 | -4,231 | -4,964 |
Income before income tax expense | 15,110 | 34,819 | 32,947 | 76,339 |
Income tax expense | 5,273 | 12,423 | 11,921 | 27,325 |
Net income | 9,837 | 22,396 | 21,026 | 49,014 |
Eliminations | ' | ' | ' | ' |
Operating costs and expenses: | ' | ' | ' | ' |
Earnings of affiliates | -7,939 | -11,143 | -20,390 | -21,641 |
Interest expense: | ' | ' | ' | ' |
Income before income tax expense | -7,939 | -11,143 | -20,390 | -21,641 |
Net income | -7,939 | -11,143 | -20,390 | -21,641 |
Parent Company | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | 162,071 | 147,070 | 306,057 | 317,611 |
Operating costs and expenses: | ' | ' | ' | ' |
Lease operating expenses | 40,612 | 51,406 | 79,724 | 94,676 |
Production taxes | 1,842 | 1,780 | 3,834 | 3,569 |
Gathering and transportation | 2,218 | 2,833 | 5,556 | 5,112 |
Depreciation, depletion, amortization and accretion | 71,327 | 55,706 | 133,758 | 118,908 |
General and administrative expenses | 10,638 | 11,473 | 22,083 | 23,885 |
Derivative loss | -13,079 | 12,840 | -20,571 | 9,473 |
Total costs and expenses | 139,716 | 110,358 | 265,526 | 236,677 |
Operating income | 22,355 | 36,712 | 40,531 | 80,934 |
Earnings of affiliates | 7,939 | 11,143 | 20,390 | 21,641 |
Interest expense: | ' | ' | ' | ' |
Incurred | 20,617 | 20,789 | 41,294 | 41,307 |
Capitalized | -1,322 | -1,785 | -2,613 | -3,501 |
Income before income tax expense | 10,999 | 28,851 | 22,240 | 64,769 |
Income tax expense | 1,162 | 6,455 | 1,214 | 15,755 |
Net income | 9,837 | 22,396 | 21,026 | 49,014 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | 100,923 | 88,313 | 211,453 | 176,994 |
Operating costs and expenses: | ' | ' | ' | ' |
Lease operating expenses | 21,153 | 16,842 | 37,660 | 32,914 |
Gathering and transportation | 1,767 | 1,775 | 3,725 | 3,940 |
Depreciation, depletion, amortization and accretion | 56,909 | 44,190 | 117,784 | 89,859 |
General and administrative expenses | 9,044 | 8,395 | 21,187 | 17,070 |
Total costs and expenses | 88,873 | 71,202 | 180,356 | 143,783 |
Operating income | 12,050 | 17,111 | 31,097 | 33,211 |
Interest expense: | ' | ' | ' | ' |
Incurred | 837 | 747 | 1,618 | 1,463 |
Capitalized | -837 | -747 | -1,618 | -1,463 |
Income before income tax expense | 12,050 | 17,111 | 31,097 | 33,211 |
Income tax expense | 4,111 | 5,968 | 10,707 | 11,570 |
Net income | $7,939 | $11,143 | $20,390 | $21,641 |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income | $21,026 | $49,014 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion, amortization and accretion | 251,542 | 208,767 |
Amortization of debt issuance costs and premium | 366 | 910 |
Share-based compensation | 7,644 | 4,950 |
Derivative (gain) loss | 20,571 | -9,473 |
Cash payments on derivative settlements (realized) | -14,310 | -2,310 |
Deferred income taxes | 11,921 | 23,726 |
Changes in operating assets and liabilities: | ' | ' |
Oil and natural gas receivables | 2,335 | 17,063 |
Joint interest and other receivables | 3,550 | 38,635 |
Income taxes | 2,918 | 8,579 |
Prepaid expenses and other assets | 4,439 | -12,381 |
Asset retirement obligation settlements | -30,338 | -32,886 |
Accounts payable, accrued liabilities and other | -10,614 | 2,768 |
Net cash provided by operating activities | 271,050 | 297,362 |
Investing activities: | ' | ' |
Acquisition of property interest in oil and natural gas properties | -53,363 | ' |
Investment in oil and natural gas properties and equipment | -212,680 | -299,213 |
Purchases of furniture, fixtures and other | -1,715 | -981 |
Net cash used in investing activities | -267,758 | -300,194 |
Financing activities: | ' | ' |
Borrowings of long-term debt - revolving bank credit facility | 220,000 | 252,000 |
Repayments of long-term debt - revolving bank credit facility | -200,000 | -239,000 |
Dividends to shareholders | -15,129 | -12,795 |
Other | -116 | -342 |
Net cash provided (used) in financing activities | 4,755 | -137 |
Increase in cash and cash equivalents | 8,047 | -2,969 |
Cash and cash equivalents, beginning of period | 15,800 | 12,245 |
Cash and cash equivalents, end of period | 23,847 | 9,276 |
Eliminations | ' | ' |
Operating activities: | ' | ' |
Net income | -20,390 | -21,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Earnings of affiliates | 20,390 | 21,641 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other assets | 219,224 | 41,160 |
Accounts payable, accrued liabilities and other | -219,224 | -41,160 |
Investing activities: | ' | ' |
Investment in subsidiary | 58,698 | ' |
Net cash used in investing activities | 58,698 | ' |
Financing activities: | ' | ' |
Investment from parent | -58,698 | ' |
Net cash provided (used) in financing activities | -58,698 | ' |
Parent Company | ' | ' |
Operating activities: | ' | ' |
Net income | 21,026 | 49,014 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion, amortization and accretion | 133,758 | 118,908 |
Amortization of debt issuance costs and premium | 366 | 910 |
Share-based compensation | 7,644 | 4,950 |
Derivative (gain) loss | 20,571 | -9,473 |
Cash payments on derivative settlements (realized) | -14,310 | -2,310 |
Deferred income taxes | 25,078 | 11,357 |
Earnings of affiliates | -20,390 | -21,641 |
Changes in operating assets and liabilities: | ' | ' |
Oil and natural gas receivables | 7,636 | 15,673 |
Joint interest and other receivables | 3,550 | 38,635 |
Income taxes | -20,947 | 9,378 |
Prepaid expenses and other assets | -127,910 | -26,487 |
Asset retirement obligation settlements | -18,583 | -29,740 |
Accounts payable, accrued liabilities and other | 203,344 | 44,054 |
Net cash provided by operating activities | 220,833 | 203,228 |
Investing activities: | ' | ' |
Investment in oil and natural gas properties and equipment | -157,128 | -205,079 |
Investment in subsidiary | -58,698 | ' |
Purchases of furniture, fixtures and other | -1,715 | -981 |
Net cash used in investing activities | -217,541 | -206,060 |
Financing activities: | ' | ' |
Borrowings of long-term debt - revolving bank credit facility | 220,000 | 252,000 |
Repayments of long-term debt - revolving bank credit facility | -200,000 | -239,000 |
Dividends to shareholders | -15,129 | -12,795 |
Other | -116 | -342 |
Net cash provided (used) in financing activities | 4,755 | -137 |
Increase in cash and cash equivalents | 8,047 | -2,969 |
Cash and cash equivalents, beginning of period | 15,800 | 12,245 |
Cash and cash equivalents, end of period | 23,847 | 9,276 |
Guarantor Subsidiaries | ' | ' |
Operating activities: | ' | ' |
Net income | 20,390 | 21,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion, amortization and accretion | 117,784 | 89,859 |
Deferred income taxes | -13,157 | 12,369 |
Changes in operating assets and liabilities: | ' | ' |
Oil and natural gas receivables | -5,301 | 1,390 |
Income taxes | 23,865 | -799 |
Prepaid expenses and other assets | -86,875 | -27,054 |
Asset retirement obligation settlements | -11,755 | -3,146 |
Accounts payable, accrued liabilities and other | 5,266 | -126 |
Net cash provided by operating activities | 50,217 | 94,134 |
Investing activities: | ' | ' |
Acquisition of property interest in oil and natural gas properties | -53,363 | ' |
Investment in oil and natural gas properties and equipment | -55,552 | -94,134 |
Net cash used in investing activities | -108,915 | -94,134 |
Financing activities: | ' | ' |
Investment from parent | 58,698 | ' |
Net cash provided (used) in financing activities | $58,698 | ' |