Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2014 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Condensed Consolidating Financial Information | ' |
Note 15. Condensed Consolidating Financial Information |
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Samson Resources Corporation and specified 100% owned subsidiaries (Geodyne Resources, Inc., Samson Contour Energy Co., Samson Contour Energy E&P, LLC, Samson Holdings, Inc., Samson Lone Star, LLC, Samson Resources Company, and Samson-International, Ltd. (collectively the “Subsidiary Guarantors” and, together with Samson Resources Corporation, the “Guarantors”)) of Samson Investment Company (the “Issuer”), a 100% owned subsidiary of Samson Resources Corporation, fully and unconditionally guarantee obligations under the Senior Notes. These guarantees are joint and several obligations of the Guarantors. |
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Any guarantee by a Subsidiary Guarantor will be automatically and unconditionally released and discharged upon (1)(A) the sale, exchange or transfer of the capital stock of the Subsidiary Guarantor or (B) the sale, exchange or transfer of all, or substantially all, of the assets of such Subsidiary Guarantor, (2) the release or discharge of the guarantee by the Subsidiary Guarantor with respect to the RBL Revolver, (3) the designation of it as an “Unrestricted Subsidiary” in compliance with the indenture governing the Senior Notes, (4) the legal or covenant defeasance or discharge of the indenture governing the Senior Notes or (5) the merger or consolidation of any Subsidiary Guarantor with and into the Issuer or another Guarantor, all in compliance with the provisions of the indenture governing the Senior Notes. There are no release provisions under the indenture governing the Senior Notes with respect to the parent guarantee provided by Samson Resources Corporation. |
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We have prepared condensed consolidating financial statements in order to quantify assets, results of operations and cash flows of Samson Resources Corporation, the Issuer, the Subsidiary Guarantors and non-guarantor subsidiaries. The following condensed consolidating balance sheets, condensed consolidating statements of income (loss) and comprehensive income (loss) and condensed consolidating statements of cash flows for the periods presented, present financial information for Samson Resources Corporation, as the parent of the Issuer on a stand-alone basis (carrying any investment in subsidiaries under the equity method), financial information for the Issuer on a stand-alone basis (carrying any investment in subsidiaries under the equity method), financial information for the Subsidiary Guarantors on a stand-alone basis, the financial information of our non-guarantor subsidiaries on a stand-alone basis, and the consolidation and elimination entries necessary to arrive at the financial information on a condensed consolidated basis. As Samson Resources Corporation, the Issuer, and the Subsidiary Guarantors are separate taxable entities, income taxes are provided with respect to the individual operations of each entity (excluding any equity pick up) only, and deferred income taxes are recorded separately. |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING BALANCE SHEET |
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AS OF JUNE 30, 2014 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Cash and cash equivalents | | $ | — | | | $ | 254 | | | $ | 12,894 | | | $ | 162 | | | $ | — | | | $ | 13,310 | |
Accounts receivable, net | | | — | | | | — | | | | 217,564 | | | | — | | | | — | | | | 217,564 | |
Intercompany receivables | | | 4,088 | | | | 83,269 | | | | — | | | | — | | | | (87,357 | ) | | | — | |
Other current assets | | | — | | | | 36 | | | | 52,271 | | | | — | | | | — | | | | 52,307 | |
Oil and gas properties, net | | | — | | | | — | | | | 6,631,068 | | | | — | | | | — | | | | 6,631,068 | |
Other property and equipment | | | — | | | | — | | | | 295,680 | | | | — | | | | — | | | | 295,680 | |
Investment in subsidiaries | | | 1,492,861 | | | | 4,901,370 | | | | — | | | | — | | | | (6,394,231 | ) | | | — | |
Other non-current assets | | | 21,677 | | | | 350,238 | | | | 18,973 | | | | 30,359 | | | | (275,294 | ) | | | 145,953 | |
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Total assets | | $ | 1,518,626 | | | $ | 5,335,167 | | | $ | 7,228,450 | | | $ | 30,521 | | | $ | (6,756,882 | ) | | $ | 7,355,882 | |
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Accounts payable | | $ | — | | | $ | — | | | $ | 35,914 | | | $ | 29 | | | $ | — | | | $ | 35,943 | |
Intercompany payables | | | — | | | | — | | | | 59,744 | | | | 27,613 | | | | (87,357 | ) | | | — | |
Accrued and other current liabilities | | | — | | | | 92,306 | | | | 230,429 | | | | 1,614 | | | | — | | | | 324,349 | |
Other current liabilities | | | — | | | | — | | | | 190,935 | | | | — | | | | — | | | | 190,935 | |
Long-term debt | | | — | | | | 3,750,000 | | | | — | | | | — | | | | — | | | | 3,750,000 | |
Deferred income tax liabilities | | | — | | | | — | | | | 1,725,000 | | | | — | | | | (275,294 | ) | | | 1,449,706 | |
Cumulative preferred stock subject to mandatory redemption | | | 196,859 | | | | — | | | | — | | | | — | | | | — | | | | 196,859 | |
Puttable common stock | | | 1,000 | | | | — | | | | — | | | | — | | | | — | | | | 1,000 | |
Other non-current liabilities | | | — | | | | — | | | | 86,323 | | | | — | | | | — | | | | 86,323 | |
Shareholders’ equity | | | 1,320,767 | | | | 1,492,861 | | | | 4,900,105 | | | | 1,265 | | | | (6,394,231 | ) | | | 1,320,767 | |
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Total liabilities and shareholders’ equity | | $ | 1,518,626 | | | $ | 5,335,167 | | | $ | 7,228,450 | | | $ | 30,521 | | | $ | (6,756,882 | ) | | $ | 7,355,882 | |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING BALANCE SHEET |
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AS OF DECEMBER 31, 2013 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Cash and cash equivalents | | $ | — | | | $ | 238 | | | $ | 399 | | | $ | 90 | | | $ | — | | | $ | 727 | |
Accounts receivable, net | | | 10 | | | | — | | | | 174,979 | | | | — | | | | — | | | | 174,989 | |
Intercompany receivables | | | — | | | | 22,204 | | | | 19,791 | | | | — | | | | (41,995 | ) | | | — | |
Other current assets | | | — | | | | 14,392 | | | | 30,192 | | | | 52 | | | | — | | | | 44,636 | |
Oil and gas properties, net | | | — | | | | — | | | | 6,738,239 | | | | — | | | | — | | | | 6,738,239 | |
Other property and equipment | | | — | | | | — | | | | 302,693 | | | | — | | | | — | | | | 302,693 | |
Investment in subsidiaries | | | 1,696,448 | | | | 5,051,279 | | | | — | | | | — | | | | (6,747,727 | ) | | | — | |
Other non-current assets | | | 10,569 | | | | 309,373 | | | | 71,296 | | | | 53,230 | | | | (268,066 | ) | | | 176,402 | |
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Total assets | | $ | 1,707,027 | | | $ | 5,397,486 | | | $ | 7,337,589 | | | $ | 53,372 | | | $ | (7,057,788 | ) | | $ | 7,437,686 | |
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Accounts payable | | $ | — | | | $ | — | | | $ | 36,255 | | | $ | 12 | | | $ | — | | | $ | 36,267 | |
Intercompany payables | | | — | | | | — | | | | — | | | | 41,995 | | | | (41,995 | ) | | | — | |
Accrued and other current liabilities | | | — | | | | 95,268 | | | | 244,046 | | | | 1,920 | | | | — | | | | 341,234 | |
Other current liabilities | | | — | | | | 40,529 | | | | 117,296 | | | | — | | | | — | | | | 157,825 | |
Long-term debt | | | — | | | | 3,554,000 | | | | — | | | | — | | | | — | | | | 3,554,000 | |
Deferred income tax liabilities | | | — | | | | — | | | | 1,824,483 | | | | 7,558 | | | | (268,066 | ) | | | 1,563,975 | |
Cumulative preferred stock subject to mandatory redemption | | | 191,035 | | | | — | | | | — | | | | — | | | | — | | | | 191,035 | |
Puttable common stock | | | 3,250 | | | | — | | | | — | | | | — | | | | — | | | | 3,250 | |
Other non-current liabilities | | | — | | | | 11,241 | | | | 66,117 | | | | — | | | | — | | | | 77,358 | |
Shareholders’ equity | | | 1,512,742 | | | | 1,696,448 | | | | 5,049,392 | | | | 1,887 | | | | (6,747,727 | ) | | | 1,512,742 | |
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Total liabilities and shareholders’ equity | | $ | 1,707,027 | | | $ | 5,397,486 | | | $ | 7,337,589 | | | $ | 53,372 | | | $ | (7,057,788 | ) | | $ | 7,437,686 | |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND |
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COMPREHENSIVE INCOME (LOSS) |
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FOR THE THREE MONTHS ENDED JUNE 30, 2014 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Total revenues | | $ | — | | | $ | — | | | $ | 260,798 | | | $ | — | | | $ | — | | | $ | 260,798 | |
Total operating expenses | | | 5,719 | | | | (225 | ) | | | 556,635 | | | | 123 | | | | — | | | | 562,252 | |
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Operating income (loss) | | | (5,719 | ) | | | 225 | | | | (295,837 | ) | | | (123 | ) | | | — | | | | (301,454 | ) |
Interest expense, net | | | (856 | ) | | | (20,532 | ) | | | (55 | ) | | | — | | | | — | | | | (21,443 | ) |
Equity in earnings of subsidiaries | | | (203,909 | ) | | | (191,863 | ) | | | — | | | | — | | | | 395,772 | | | | — | |
Other income (expense), net | | | — | | | | — | | | | (71 | ) | | | — | | | | — | | | | (71 | ) |
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Income (loss) before income taxes | | | (210,484 | ) | | | (212,170 | ) | | | (295,963 | ) | | | (123 | ) | | | 395,772 | | | | (322,968 | ) |
Income tax provision (benefit) | | | (2,662 | ) | | | (8,261 | ) | | | (104,159 | ) | | | (64 | ) | | | — | | | | (115,146 | ) |
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Net income (loss) | | | (207,822 | ) | | | (203,909 | ) | | | (191,804 | ) | | | (59 | ) | | | 395,772 | | | | (207,822 | ) |
Total other comprehensive income (loss) | | | (4,490 | ) | | | (4,490 | ) | | | (4,490 | ) | | | — | | | | 8,980 | | | | (4,490 | ) |
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Total comprehensive income (loss) | | $ | (212,312 | ) | | $ | (208,399 | ) | | $ | (196,294 | ) | | $ | (59 | ) | | $ | 404,752 | | | $ | (212,312 | ) |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND |
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COMPREHENSIVE INCOME (LOSS) |
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FOR THE THREE MONTHS ENDED JUNE 30, 2013 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Total revenues | | $ | — | | | $ | — | | | $ | 375,620 | | | $ | 316 | | | $ | — | | | $ | 375,936 | |
Total operating expenses | | | 5,535 | | | | — | | | | 242,456 | | | | 274 | | | | — | | | | 248,265 | |
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Operating income (loss) | | | (5,535 | ) | | | — | | | | 133,164 | | | | 42 | | | | — | | | | 127,671 | |
Interest income, net | | | — | | | | — | | | | — | | | | 8 | | | | — | | | | 8 | |
Equity in earnings of subsidiaries | | | 86,629 | | | | 86,629 | | | | — | | | | — | | | | (173,258 | ) | | | — | |
Other (expense) income, net | | | — | | | | — | | | | 1,396 | | | | 1 | | | | — | | | | 1,397 | |
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Income (loss) before income taxes | | | 81,094 | | | | 86,629 | | | | 134,560 | | | | 51 | | | | (173,258 | ) | | | 129,076 | |
Income tax provision (benefit) | | | (1,950 | ) | | | — | | | | 47,960 | | | | 22 | | | | — | | | | 46,032 | |
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Net income (loss) | | | 83,044 | | | | 86,629 | | | | 86,600 | | | | 29 | | | | (173,258 | ) | | | 83,044 | |
Total other comprehensive income (loss) | | | 23,854 | | | | 23,854 | | | | 23,854 | | | | — | | | | (47,708 | ) | | | 23,854 | |
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Total comprehensive income (loss) | | $ | 106,898 | | | $ | 110,483 | | | $ | 110,454 | | | $ | 29 | | | $ | (220,966 | ) | | $ | 106,898 | |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND |
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COMPREHENSIVE INCOME (LOSS) |
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FOR THE SIX MONTHS ENDED JUNE 30, 2014 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Total revenues | | $ | — | | | $ | — | | | $ | 511,726 | | | $ | — | | | $ | — | | | $ | 511,726 | |
Total operating expenses | | | 11,367 | | | | — | | | | 782,344 | | | | 332 | | | | — | | | | 794,043 | |
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Operating income (loss) | | | (11,367 | ) | | | — | | | | (270,618 | ) | | | (332 | ) | | | — | | | | (282,317 | ) |
Interest expense, net | | | (1,456 | ) | | | (40,378 | ) | | | (85 | ) | | | — | | | | — | | | | (41,919 | ) |
Equity in earnings of subsidiaries | | | (200,590 | ) | | | (174,598 | ) | | | — | | | | — | | | | 375,188 | | | | — | |
Other income (expense), net | | | — | | | | — | | | | (6 | ) | | | (197 | ) | | | — | | | | (203 | ) |
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Income (loss) before income taxes | | | (213,413 | ) | | | (214,976 | ) | | | (270,709 | ) | | | (529 | ) | | | 375,188 | | | | (324,439 | ) |
Income tax provision (benefit) | | | (4,569 | ) | | | (14,386 | ) | | | (96,452 | ) | | | (188 | ) | | | — | | | | (115,595 | ) |
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Net income (loss) | | | (208,844 | ) | | | (200,590 | ) | | | (174,257 | ) | | | (341 | ) | | | 375,188 | | | | (208,844 | ) |
Total other comprehensive income (loss) | | | (10,344 | ) | | | (10,344 | ) | | | (10,344 | ) | | | — | | | | 20,688 | | | | (10,344 | ) |
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Total comprehensive income (loss) | | $ | (219,188 | ) | | $ | (210,934 | ) | | $ | (184,601 | ) | | $ | (341 | ) | | $ | 395,876 | | | $ | (219,188 | ) |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND |
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COMPREHENSIVE INCOME (LOSS) |
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FOR THE SIX MONTHS ENDED JUNE 30, 2013 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Total revenues | | $ | — | | | $ | — | | | $ | 587,621 | | | $ | 1,216 | | | $ | — | | | $ | 588,837 | |
Total operating expenses | | | 10,806 | | | | — | | | | 538,657 | | | | 1,302 | | | | — | | | | 550,765 | |
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Operating loss | | | (10,806 | ) | | | — | | | | 48,964 | | | | (86 | ) | | | — | | | | 38,072 | |
Interest income, net | | | — | | | | — | | | | — | | | | 13 | | | | — | | | | 13 | |
Equity in earnings of subsidiaries | | | 31,787 | | | | 31,787 | | | | — | | | | — | | | | (63,574 | ) | | | — | |
Other (expense) income, net | | | — | | | | — | | | | 2,053 | | | | (1,676 | ) | | | — | | | | 377 | |
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Income (loss) before income taxes | | | 20,981 | | | | 31,787 | | | | 51,017 | | | | (1,749 | ) | | | (63,574 | ) | | | 38,462 | |
Income tax provision (benefit) | | | (3,834 | ) | | | — | | | | 18,102 | | | | (621 | ) | | | — | | | | 13,647 | |
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Net income (loss) | | | 24,815 | | | | 31,787 | | | | 32,915 | | | | (1,128 | ) | | | (63,574 | ) | | | 24,815 | |
Total other comprehensive income (loss) | | | 1,004 | | | | 1,004 | | | | 1,004 | | | | — | | | | (2,008 | ) | | | 1,004 | |
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Total comprehensive income (loss) | | $ | 25,819 | | | $ | 32,791 | | | $ | 33,919 | | | $ | (1,128 | ) | | $ | (65,582 | ) | | $ | 25,819 | |
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SAMSON RESOURCES CORPORATION |
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CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
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FOR THE SIX MONTHS ENDED JUNE 30, 2014 |
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(In thousands) |
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Net cash provided by (used in) operating activities | | $ | (11,535 | ) | | $ | (14,112 | ) | | $ | 286,255 | | | $ | (206 | ) | | $ | — | | | $ | 260,402 | |
Investing activities: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures—oil and gas properties | | | — | | | | — | | | | (484,875 | ) | | | — | | | | — | | | | (484,875 | ) |
Capital expenditures—other property and equipment | | | — | | | | — | | | | (9,275 | ) | | | — | | | | — | | | | (9,275 | ) |
Proceeds from divestitures—oil and gas properties | | | — | | | | — | | | | 53,418 | | | | — | | | | — | | | | 53,418 | |
Proceeds (purchase) of other assets | | | — | | | | — | | | | 70 | | | | — | | | | — | | | | 70 | |
Advances to parent/subsidiary | | | — | | | | (180,905 | ) | | | — | | | | — | | | | 180,905 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | | | — | | | | (180,905 | ) | | | (440,662 | ) | | | — | | | | 180,905 | | | | (440,662 | ) |
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Financing activities: | | | | | | | | | | | | | | | | | | | | | | | | |
Advances from issuer | | | 13,725 | | | | — | | | | 166,902 | | | | 278 | | | | (180,905 | ) | | | — | |
Proceeds from revolver | | | — | | | | 264,000 | | | | — | | | | — | | | | — | | | | 264,000 | |
Repayment of revolver | | | — | | | | (68,000 | ) | | | — | | | | — | | | | — | | | | (68,000 | ) |
Debt issuance cost | | | — | | | | (967 | ) | | | — | | | | — | | | | — | | | | (967 | ) |
Repurchase of puttable common stock | | | (2,190 | ) | | | — | | | | — | | | | — | | | | — | | | | (2,190 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 11,535 | | | | 195,033 | | | | 166,902 | | | | 278 | | | | (180,905 | ) | | | 192,843 | |
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Net change in cash | | | — | | | | 16 | | | | 12,495 | | | | 72 | | | | — | | | | 12,583 | |
Cash and cash equivalents at beginning of period | | | — | | | | 238 | | | | 399 | | | | 90 | | | | — | | | | 727 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ | — | | | $ | 254 | | | $ | 12,894 | | | $ | 162 | | | $ | — | | | $ | 13,310 | |
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|
SAMSON RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
|
FOR THE SIX MONTHS ENDED JUNE 30, 2013 |
|
(In thousands) |
|
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| | Samson | | | Samson | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Resources | Investment | Subsidiaries | Guarantor |
Corporation | Company | | Subsidiaries |
(Parent | (Issuer) | | |
Guarantor) | | | |
Net cash provided by (used in) operating activities | | $ | (101 | ) | | $ | (94 | ) | | $ | 352,062 | | | $ | (19,555 | ) | | $ | — | | | $ | 332,312 | |
Investing activities: | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures—oil and gas properties | | | — | | | | — | | | | (509,545 | ) | | | — | | | | — | | | | (509,545 | ) |
Capital expenditures—other property and equipment | | | — | | | | — | | | | (23,785 | ) | | | — | | | | — | | | | (23,785 | ) |
Proceeds from divestitures—oil and gas properties | | | — | | | | — | | | | 107,422 | | | | — | | | | — | | | | 107,422 | |
Proceeds (purchase) of other assets | | | — | | | | — | | | | 2,021 | | | | — | | | | — | | | | 2,021 | |
Advances to parent/subsidiary | | | — | | | | (134,757 | ) | | | — | | | | — | | | | 134,757 | | | | — | |
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Net cash provided by (used in) investing activities | | | — | | | | (134,757 | ) | | | (423,887 | ) | | | — | | | | 134,757 | | | | (423,887 | ) |
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Financing activities: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from revolver | | | — | | | | 215,000 | | | | — | | | | — | | | | — | | | | 215,000 | |
Repayment of revolver | | | — | | | | (80,000 | ) | | | — | | | | — | | | | — | | | | (80,000 | ) |
Repurchase of puttable common stock | | | (950 | ) | | | — | | | | — | | | | — | | | | — | | | | (950 | ) |
Advances from issuer | | | 1,051 | | | | — | | | | 111,986 | | | | 21,720 | | | | (134,757 | ) | | | — | |
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Net cash provided by financing activities | | | 101 | | | | 135,000 | | | | 111,986 | | | | 21,720 | | | | (134,757 | ) | | | 134,050 | |
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Net change in cash | | | — | | | | 149 | | | | 40,161 | | | | 2,165 | | | | — | | | | 42,475 | |
Cash and cash equivalents at beginning of period | | | — | | | | 1,656 | | | | 1,155 | | | | 228 | | | | — | | | | 3,039 | |
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Cash and cash equivalents at end of period | | $ | — | | | $ | 1,805 | | | $ | 41,316 | | | $ | 2,393 | | | $ | — | | | $ | 45,514 | |
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