Supplemental Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2013 |
Supplemental Condensed Consolidating Financial Information [Abstract] | ' |
Supplemental Condensed Consolidating Financial Information | ' |
(16) Supplemental Condensed Consolidating Financial Information |
In connection with issuing the 8.25% Senior Notes described in Note 7, all of our existing direct and indirect domestic subsidiaries (other than immaterial subsidiaries) each of which is 100% owned by EPL Oil & Gas, Inc. (the “Guarantor Subsidiaries”) jointly and severally guaranteed the payment obligations under our 8.25% Senior Notes. The guarantees are full and unconditional, as those terms are used in Rule 3-10 of Regulation S-X, except that a Guarantor Subsidiary can be automatically released and relieved of its obligations under certain customary circumstances contained in the 2011 Indenture. So long as other applicable provisions of the indenture are adhered to, these customary circumstances include: when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, when the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, or when the Guarantor Subsidiary is sold or sells all of its assets. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of operations and cash flow information for EPL Oil & Gas, Inc. (Parent Company Only) and for the Guarantor Subsidiaries. We have not presented separate financial statements and other disclosures concerning the Guarantor Subsidiaries, or for any individual Guarantor Subsidiary, because management has determined that such information is not material to investors. |
The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements. Certain reclassifications were made to conform all of the financial information to the financial presentation on a consolidated basis. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenues and expenses. |
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Supplemental Condensed Consolidating Balance Sheet |
As of December 31, 2013 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
ASSETS | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 8,812 | | $ | - | | $ | - | | $ | 8,812 |
Trade accounts receivable - net | | | 70,520 | | | 187 | | | - | | | 70,707 |
Intercompany receivables | | | 39,085 | | | - | | | -39,085 | | | - |
Fair value of commodity derivative instruments | | | 501 | | | - | | | - | | | 501 |
Deferred tax asset | | | 8,949 | | | - | | | - | | | 8,949 |
Prepaid expenses | | | 6,868 | | | - | | | - | | | 6,868 |
Total current assets | | | 134,735 | | | 187 | | | -39,085 | | | 95,837 |
Property and equipment | | | 2,041,689 | | | 313,530 | | | - | | | 2,355,219 |
Less accumulated depreciation, depletion, amortization and impairments | | | -526,736 | | | -92,052 | | | - | | | -618,788 |
Net property and equipment | | | 1,514,953 | | | 221,478 | | | - | | | 1,736,431 |
Investment in affiliates | | | 122,697 | | | - | | | -122,697 | | | - |
Deposit for Nexen Acquisition | | | 7,040 | | | - | | | - | | | 7,040 |
Restricted cash | | | 6,023 | | | - | | | - | | | 6,023 |
Fair value of commodity derivative instruments | | | 238 | | | - | | | - | | | 238 |
Deferred financing costs | | | 10,106 | | | - | | | - | | | 10,106 |
Other assets | | | 2,067 | | | 89 | | | - | | | 2,156 |
Total assets | | $ | 1,797,859 | | $ | 221,754 | | $ | -161,782 | | $ | 1,857,831 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | |
Accounts payable | | $ | 58,758 | | $ | 673 | | $ | - | | $ | 59,431 |
Intercompany payables | | | - | | | 39,085 | | | -39,085 | | | - |
Accrued expenses | | | 131,111 | | | 14 | | | - | | | 131,125 |
Asset retirement obligations | | | 51,601 | | | - | | | - | | | 51,601 |
Fair value of commodity derivative instruments | | | 29,636 | | | - | | | - | | | 29,636 |
Total current liabilities | | | 271,106 | | | 39,772 | | | -39,085 | | | 271,793 |
Long-term debt | | | 627,355 | | | - | | | - | | | 627,355 |
Asset retirement obligations | | | 160,466 | | | 43,383 | | | - | | | 203,849 |
Deferred tax liabilities | | | 106,910 | | | 15,902 | | | - | | | 122,812 |
Fair value of commodity derivative instruments | | | 2,136 | | | - | | | - | | | 2,136 |
Other | | | 673 | | | - | | | - | | | 673 |
Total liabilities | | | 1,168,646 | | | 99,057 | | | -39,085 | | | 1,228,618 |
Stockholders’ equity: | | | | | | | | | | | | |
Preferred stock | | | - | | | - | | | - | | | - |
Common stock | | | 41 | | | - | | | - | | | 41 |
Additional paid-in capital | | | 519,114 | | | 85,479 | | | -85,479 | | | 519,114 |
Treasury stock, at cost | | | -31,157 | | | - | | | - | | | -31,157 |
Retained earnings | | | 141,215 | | | 37,218 | | | -37,218 | | | 141,215 |
Total stockholders’ equity | | | 629,213 | | | 122,697 | | | -122,697 | | | 629,213 |
Total liabilities and stockholders' equity | | $ | 1,797,859 | | $ | 221,754 | | $ | -161,782 | | $ | 1,857,831 |
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Supplemental Condensed Consolidating Balance Sheet |
As of December 31, 2012 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
ASSETS | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 1,521 | | $ | - | | $ | - | | $ | 1,521 |
Trade accounts receivable - net | | | 66,994 | | | 997 | | | - | | | 67,991 |
Intercompany receivables | | | 55,575 | | | - | | | -55,575 | | | - |
Fair value of commodity derivative instruments | | | 3,302 | | | - | | | | | | 3,302 |
Deferred tax asset | | | 3,322 | | | - | | | - | | | 3,322 |
Prepaid expenses | | | 9,873 | | | - | | | | | | 9,873 |
Total current assets | | | 140,587 | | | 997 | | | -55,575 | | | 86,009 |
Property and equipment | | | 1,754,294 | | | 271,353 | | | - | | | 2,025,647 |
Less accumulated depreciation, depletion, amortization and impairments | | | -353,526 | | | -74,054 | | | - | | | -427,580 |
Net property and equipment | | | 1,400,768 | | | 197,299 | | | - | | | 1,598,067 |
Investment in affiliates | | | 111,191 | | | - | | | -111,191 | | | - |
Restricted cash | | | 6,023 | | | - | | | - | | | 6,023 |
Fair value of commodity derivative instruments | | | 211 | | | - | | | - | | | 211 |
Deferred financing costs | | | 12,386 | | | - | | | - | | | 12,386 |
Other assets | | | 2,841 | | | 90 | | | - | | | 2,931 |
Total assets | | $ | 1,674,007 | | $ | 198,386 | | $ | -166,766 | | $ | 1,705,627 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | |
Accounts payable | | $ | 34,740 | | $ | 32 | | $ | - | | $ | 34,772 |
Intercompany payables | | | - | | | 55,575 | | | -55,575 | | | - |
Accrued expenses | | | 117,245 | | | 127 | | | - | | | 117,372 |
Asset retirement obligations | | | 23,982 | | | 6,197 | | | - | | | 30,179 |
Fair value of commodity derivative instruments | | | 10,026 | | | - | | | - | | | 10,026 |
Total current liabilities | | | 185,993 | | | 61,931 | | | -55,575 | | | 192,349 |
Long-term debt | | | 689,911 | | | - | | | - | | | 689,911 |
Asset retirement obligations | | | 187,790 | | | 17,141 | | | - | | | 204,931 |
Deferred tax liabilities | | | 59,571 | | | 8,123 | | | - | | | 67,694 |
Fair value of commodity derivative instruments | | | 3,637 | | | - | | | - | | | 3,637 |
Other | | | 1,132 | | | - | | | - | | | 1,132 |
Total liabilities | | | 1,128,034 | | | 87,195 | | | -55,575 | | | 1,159,654 |
Stockholders’ equity: | | | | | | | | | | | | |
Preferred stock | | | - | | | - | | | - | | | - |
Common stock | | | 40 | | | - | | | - | | | 40 |
Additional paid-in capital | | | 510,469 | | | 85,479 | | | -85,479 | | | 510,469 |
Treasury stock | | | -20,477 | | | - | | | - | | | -20,477 |
Retained earnings | | | 55,941 | | | 25,712 | | | -25,712 | | | 55,941 |
Total stockholders’ equity | | | 545,973 | | | 111,191 | | | -111,191 | | | 545,973 |
Total liabilities and stockholders' equity | | $ | 1,674,007 | | $ | 198,386 | | $ | -166,766 | | $ | 1,705,627 |
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Supplemental Condensed Consolidating Statement of Operations |
Year Ended December 31, 2013 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Revenue: | | | | | | | | | | | | |
Oil and natural gas | | $ | 606,743 | | $ | 82,000 | | $ | - | | $ | 688,743 |
Other | | | 689 | | | 3,606 | | | - | | | 4,295 |
Total revenue | | | 607,432 | | | 85,606 | | | - | | | 693,038 |
Costs and expenses: | | | | | | | | | | | | |
Lease operating | | | 140,605 | | | 25,236 | | | - | | | 165,841 |
Transportation | | | 3,548 | | | 20 | | | - | | | 3,568 |
Exploration expenditures and dry hole costs | | | 22,265 | | | 4,290 | | | - | | | 26,555 |
Impairments | | | 2,937 | | | - | | | - | | | 2,937 |
Depreciation, depletion and amortization | | | 178,427 | | | 21,932 | | | - | | | 200,359 |
Accretion of liability for asset retirement obligations | | | 23,196 | | | 5,103 | | | - | | | 28,299 |
General and administrative | | | 28,137 | | | - | | | - | | | 28,137 |
Taxes, other than on earnings | | | 1,084 | | | 10,406 | | | - | | | 11,490 |
Gain on sale of assets | | | -28,219 | | | -462 | | | - | | | -28,681 |
Other | | | 34,072 | | | 870 | | | - | | | 34,942 |
Total costs and expenses | | | 406,052 | | | 67,395 | | | - | | | 473,447 |
Income from operations | | | 201,380 | | | 18,211 | | | - | | | 219,591 |
Other income (expense): | | | | | | | | | | | | |
Interest income | | | 99 | | | - | | | - | | | 99 |
Interest expense | | | -52,368 | | | - | | | - | | | -52,368 |
Loss on derivative instruments | | | -32,361 | | | - | | | - | | | -32,361 |
Income from equity investments | | | 11,506 | | | - | | | -11,506 | | | - |
Total other income (expense) | | | -73,124 | | | - | | | -11,506 | | | -84,630 |
Income before provision for income taxes | | | 128,256 | | | 18,211 | | | -11,506 | | | 134,961 |
Deferred income tax expense | | | -42,982 | | | -6,705 | | | - | | | -49,687 |
Net income | | $ | 85,274 | | $ | 11,506 | | $ | -11,506 | | $ | 85,274 |
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Supplemental Condensed Consolidating Statement of Operations |
Year Ended December 31, 2012 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Revenue: | | | | | | | | | | | | |
Oil and natural gas | | $ | 318,749 | | $ | 103,780 | | $ | - | | $ | 422,529 |
Other | | | 15,152 | | | 952 | | | -15,000 | | | 1,104 |
Total revenue | | | 333,901 | | | 104,732 | | | -15,000 | | | 423,633 |
Costs and expenses: | | | | | | | | | | | | |
Lease operating | | | 71,002 | | | 23,848 | | | - | | | 94,850 |
Transportation | | | 611 | | | 4 | | | - | | | 615 |
Exploration expenditures and dry hole costs | | | 18,790 | | | 9 | | | - | | | 18,799 |
Impairments | | | 8,883 | | | - | | | - | | | 8,883 |
Depreciation, depletion and amortization | | | 92,689 | | | 20,892 | | | - | | | 113,581 |
Accretion of liability for asset retirement obligations | | | 10,551 | | | 5,014 | | | - | | | 15,565 |
General and administrative | | | 22,845 | | | 15,363 | | | -15,000 | | | 23,208 |
Taxes, other than on earnings | | | 1,162 | | | 11,845 | | | - | | | 13,007 |
Other | | | 5,496 | | | -818 | | | - | | | 4,678 |
Total costs and expenses | | | 232,029 | | | 76,157 | | | -15,000 | | | 293,186 |
Income from operations | | | 101,872 | | | 28,575 | | | - | | | 130,447 |
Other income (expense): | | | | | | | | | | | | |
Interest income | | | 136 | | | - | | | - | | | 136 |
Interest expense | | | -28,568 | | | - | | | - | | | -28,568 |
Loss on derivative instruments | | | -13,305 | | | - | | | - | | | -13,305 |
Income from equity investments | | | 18,945 | | | - | | | -18,945 | | | - |
Total other income (expense) | | | -22,792 | | | - | | | -18,945 | | | -41,737 |
Income before provision for income taxes | | | 79,080 | | | 28,575 | | | -18,945 | | | 88,710 |
Deferred income tax expense | | | -20,270 | | | -9,630 | | | - | | | -29,900 |
Net income | | $ | 58,810 | | $ | 18,945 | | $ | -18,945 | | $ | 58,810 |
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Supplemental Condensed Consolidating Statement of Operations |
Year Ended December 31, 2011 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Revenue: | | | | | | | | | | | | |
Oil and natural gas | | $ | 245,567 | | $ | 102,640 | | $ | - | | $ | 348,207 |
Other | | | 15,007 | | | 113 | | | -15,000 | | | 120 |
Total revenue | | | 260,574 | | | 102,753 | | | -15,000 | | | 348,327 |
Costs and expenses: | | | | | | | | | | | | |
Lease operating | | | 51,618 | | | 18,663 | | | - | | | 70,281 |
Transportation | | | 766 | | | 13 | | | - | | | 779 |
Exploration expenditures and dry hole costs | | | 14,045 | | | 223 | | | - | | | 14,268 |
Impairments | | | 32,532 | | | -66 | | | - | | | 32,466 |
Depreciation, depletion and amortization | | | 82,168 | | | 22,456 | | | | | | 104,624 |
Accretion of liability for asset retirement obligations | | | 9,013 | | | 6,929 | | | | | | 15,942 |
General and administrative | | | 18,281 | | | 15,460 | | | -15,000 | | | 18,741 |
Taxes, other than on earnings | | | -733 | | | 15,098 | | | - | | | 14,365 |
Other | | | 9,940 | | | -205 | | | - | | | 9,735 |
Total costs and expenses | | | 217,630 | | | 78,571 | | | -15,000 | | | 281,201 |
Income from operations | | | 42,944 | | | 24,182 | | | - | | | 67,126 |
Other income (expense): | | | | | | | | | | | | |
Interest income | | | 102 | | | - | | | - | | | 102 |
Interest expense | | | -17,548 | | | - | | | - | | | -17,548 |
Loss on derivative instruments | | | -5,870 | | | - | | | - | | | -5,870 |
Loss on early extinguishment of debt | | | -2,377 | | | - | | | - | | | -2,377 |
Loss from equity investments | | | 15,532 | | | - | | | -15,532 | | | - |
Total other income (expense) | | | -10,161 | | | - | | | -15,532 | | | -25,693 |
Loss before provision for income taxes | | | 32,783 | | | 24,182 | | | -15,532 | | | 41,433 |
Deferred income tax expense | | | -6,172 | | | -8,650 | | | - | | | -14,822 |
Net income | | $ | 26,611 | | $ | 15,532 | | $ | -15,532 | | $ | 26,611 |
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Supplemental Condensed Consolidating Statement of Cash Flows |
Year Ended December 31, 2013 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Net cash provided by operating activities | | $ | 356,597 | | $ | 30,962 | | $ | - | | $ | 387,559 |
Cash flows provided by (used in) investing activities: | | | | | | | | | | | | |
Property acquisitions | | | -27,560 | | | - | | | - | | | -27,560 |
Deposit for Nexen Acquisition | | | -7,040 | | | - | | | - | | | -7,040 |
Exploration and development expenditures | | | -284,073 | | | -37,967 | | | - | | | -322,040 |
Other property and equipment additions | | | -2,016 | | | - | | | - | | | -2,016 |
Proceeds from sale of assets | | | 45,312 | | | 7,005 | | | - | | | 52,317 |
Net cash used in investing activities | | | -275,377 | | | -30,962 | | | - | | | -306,339 |
Cash flows provided by (used in) financing activities: | | | | | | | | | | | | |
Repayments of indebtedness | | | -65,000 | | | - | | | - | | | -65,000 |
Deferred financing costs | | | -674 | | | - | | | - | | | -674 |
Purchase of shares into treasury | | | -9,640 | | | - | | | - | | | -9,640 |
Exercise of stock options | | | 1,385 | | | - | | | - | | | 1,385 |
Net cash used in financing activities | | | -73,929 | | | - | | | - | | | -73,929 |
Net decrease in cash and cash equivalents | | | 7,291 | | | - | | | - | | | 7,291 |
Cash and cash equivalents at beginning of period | | | 1,521 | | | - | | | - | | | 1,521 |
Cash and cash equivalents at end of period | | $ | 8,812 | | $ | - | | $ | - | | $ | 8,812 |
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Supplemental Condensed Consolidating Statement of Cash Flows |
Year Ended December 31, 2012 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Net cash provided by operating activities | | $ | 190,851 | | $ | 23,020 | | $ | - | | $ | 213,871 |
Cash flows provided by (used in) investing activities: | | | | | | | | | | | | |
Property acquisitions | | | -575,372 | | | -3,000 | | | - | | | -578,372 |
Exploration and development expenditures | | | -165,308 | | | -19,542 | | | - | | | -184,850 |
Other property and equipment additions | | | -1,265 | | | -478 | | | - | | | -1,743 |
Net cash used in investing activities | | | -741,945 | | | -23,020 | | | - | | | -764,965 |
Cash flows provided by (used in) financing activities: | | | | | | | | | | | | |
Proceeds from indebtedness | | | 509,313 | | | - | | | - | | | 509,313 |
Repayments of indebtedness | | | -20,000 | | | - | | | - | | | -20,000 |
Deferred financing costs | | | -8,469 | | | - | | | - | | | -8,469 |
Purchase of shares into treasury | | | -8,798 | | | - | | | - | | | -8,798 |
Exercise of stock options | | | 441 | | | - | | | - | | | 441 |
Net cash provided by financing activities | | | 472,487 | | | - | | | - | | | 472,487 |
Net increase in cash and cash equivalents | | | -78,607 | | | - | | | - | | | -78,607 |
Cash and cash equivalents at beginning of period | | | 80,128 | | | - | | | - | | | 80,128 |
Cash and cash equivalents at end of period | | $ | 1,521 | | $ | - | | $ | - | | $ | 1,521 |
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Supplemental Condensed Consolidating Statement of Cash Flows |
Year Ended December 31, 2011 |
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| | Parent | | | | | | |
| | Company | | Guarantor | | | | |
| | Only | | Subsidiaries | | Eliminations | | Consolidated |
| | (In thousands) |
Net cash provided by operating activities | | $ | 136,245 | | $ | 35,007 | | $ | - | | $ | 171,252 |
Cash flows provided by (used in) investing activities: | | | | | | | | | | | | |
Decrease in restricted cash | | | 2,466 | | | - | | | - | | | 2,466 |
Property acquisitions | | | -235,486 | | | - | | | - | | | -235,486 |
Exploration and development expenditures | | | -40,996 | | | -35,007 | | | - | | | -76,003 |
Other property and equipment additions | | | -1,568 | | | - | | | - | | | -1,568 |
Net cash used in investing activities | | | -275,584 | | | -35,007 | | | - | | | -310,591 |
Cash flows provided by (used in) financing activities: | | | | | | | | | | | | |
Proceeds from indebtedness | | | 203,794 | | | - | | | - | | | 203,794 |
Deferred financing costs | | | -6,646 | | | - | | | - | | | -6,646 |
Purchase of shares into treasury | | | -11,353 | | | - | | | - | | | -11,353 |
Exercise of stock options | | | 119 | | | - | | | - | | | 119 |
Net cash provided by financing activities | | | 185,914 | | | - | | | - | | | 185,914 |
Net increase in cash and cash equivalents | | | 46,575 | | | - | | | - | | | 46,575 |
Cash and cash equivalents at beginning of period | | | 33,553 | | | - | | | - | | | 33,553 |
Cash and cash equivalents at end of period | | $ | 80,128 | | $ | - | | $ | - | | $ | 80,128 |
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