GUARANTOR FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2013 |
Text Block [Abstract] | ' |
GUARANTOR FINANCIAL STATEMENTS | ' |
NOTE 20 – GUARANTOR FINANCIAL STATEMENTS: |
Stone Offshore is an unconditional guarantor (the “Guarantor Subsidiary”) of the 2017 Convertible Notes and 2022 Notes. Our other subsidiaries (the “Non-Guarantor Subsidiaries”) have not provided guarantees. The following presents consolidating financial information as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 on an issuer (parent company), Guarantor Subsidiary, Non-Guarantor Subsidiaries, and consolidated basis. Elimination entries presented are necessary to combine the entities. |
CONDENSED CONSOLIDATING BALANCE SHEET |
31-Dec-13 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 246,294 | | | $ | 84,290 | | | $ | 640 | | | $ | — | | | $ | 331,224 | |
Accounts receivable | | | 74,887 | | | | 97,128 | | | | — | | | | (44 | ) | | | 171,971 | |
Fair value of hedging contracts | | | — | | | | 4,549 | | | | — | | | | — | | | | 4,549 | |
Current income tax receivable | | | 7,366 | | | | — | | | | — | | | | — | | | | 7,366 | |
Deferred taxes * | | | 8,659 | | | | 23,051 | | | | — | | | | — | | | | 31,710 | |
Inventory | | | 3,440 | | | | 283 | | | | — | | | | — | | | | 3,723 | |
Other current assets | | | 1,874 | | | | — | | | | — | | | | — | | | | 1,874 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 342,520 | | | | 209,301 | | | | 640 | | | | (44 | ) | | | 552,417 | |
Oil and gas properties, full cost method: | | | | | | | | | | | | | | | | | | | | |
Proved | | | 1,309,527 | | | | 6,494,590 | | | | — | | | | — | | | | 7,804,117 | |
Less: accumulated DD&A | | | (459,932 | ) | | | (5,448,828 | ) | | | — | | | | — | | | | (5,908,760 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net proved oil and gas properties | | | 849,595 | | | | 1,045,762 | | | | — | | | | — | | | | 1,895,357 | |
Unevaluated | | | 325,113 | | | | 388,643 | | | | 10,583 | | | | — | | | | 724,339 | |
Other property and equipment, net | | | 26,178 | | | | — | | | | — | | | | — | | | | 26,178 | |
Fair value of hedging contracts | | | — | | | | 1,378 | | | | — | | | | — | | | | 1,378 | |
Other assets, net | | | 45,410 | | | | 1,349 | | | | 2,128 | | | | — | | | | 48,887 | |
Investment in subsidiary | | | 747,472 | | | | — | | | | 12,711 | | | | (760,183 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,336,288 | | | $ | 1,646,433 | | | $ | 26,062 | | | | ($760,227 | ) | | $ | 3,248,556 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable to vendors | | $ | 173,147 | | | $ | 22,530 | | | $ | 44 | | | | ($44 | ) | | $ | 195,677 | |
Undistributed oil and gas proceeds | | | 34,386 | | | | 2,643 | | | | — | | | | — | | | | 37,029 | |
Accrued interest | | | 9,022 | | | | — | | | | — | | | | — | | | | 9,022 | |
Fair value of hedging contracts | | | — | | | | 7,753 | | | | — | | | | — | | | | 7,753 | |
Asset retirement obligations | | | — | | | | 67,161 | | | | — | | | | — | | | | 67,161 | |
Other current liabilities | | | 53,682 | | | | 838 | | | | — | | | | — | | | | 54,520 | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 270,237 | | | | 100,925 | | | | 44 | | | | (44 | ) | | | 371,162 | |
Long-term debt | | | 1,027,084 | | | | — | | | | — | | | | — | | | | 1,027,084 | |
Deferred taxes * | | | 10,227 | | | | 380,466 | | | | — | | | | — | | | | 390,693 | |
Asset retirement obligations | | | 4,945 | | | | 430,407 | | | | — | | | | — | | | | 435,352 | |
Fair value of hedging contracts | | | — | | | | 470 | | | | — | | | | — | | | | 470 | |
Other long-term liabilities | | | 53,509 | | | | — | | | | — | | | | — | | | | 53,509 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,366,002 | | | | 912,268 | | | | 44 | | | | (44 | ) | | | 2,278,270 | |
| | | | | | | | | | | | | | | | | | | | |
Commitments and contingencies Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 488 | | | | — | | | | — | | | | — | | | | 488 | |
Treasury stock | | | (860 | ) | | | — | | | | — | | | | — | | | | (860 | ) |
Additional paid-in capital | | | 1,397,885 | | | | 1,309,563 | | | | 27,403 | | | | (1,336,966 | ) | | | 1,397,885 | |
Accumulated deficit | | | (425,165 | ) | | | (574,003 | ) | | | (52 | ) | | | 574,055 | | | | (425,165 | ) |
Accumulated other comprehensive loss | | | (2,062 | ) | | | (1,395 | ) | | | (1,333 | ) | | | 2,728 | | | | (2,062 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 970,286 | | | | 734,165 | | | | 26,018 | | | | (760,183 | ) | | | 970,286 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,336,288 | | | $ | 1,646,433 | | | $ | 26,062 | | | | ($760,227 | ) | | $ | 3,248,556 | |
| | | | | | | | | | | | | | | | | | | | |
|
* | Deferred income taxes have been allocated to Guarantor Subsidiary where related oil and gas properties reside. | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING BALANCE SHEET |
31-Dec-12 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 228,398 | | | $ | 51,128 | | | $ | — | | | $ | — | | | $ | 279,526 | |
Accounts receivable | | | 59,213 | | | | 108,075 | | | | — | | | | — | | | | 167,288 | |
Fair value of hedging contracts | | | — | | | | 39,655 | | | | — | | | | — | | | | 39,655 | |
Current income tax receivable | | | 10,027 | | | | — | | | | — | | | | — | | | | 10,027 | |
Deferred taxes * | | | 5,947 | | | | 9,567 | | | | — | | | | — | | | | 15,514 | |
Inventory | | | 3,924 | | | | 283 | | | | — | | | | — | | | | 4,207 | |
Other current assets | | | 3,626 | | | | — | | | | — | | | | — | | | | 3,626 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 311,135 | | | | 208,708 | | | | — | | | | — | | | | 519,843 | |
Oil and gas properties, full cost method: | | | | | | | | | | | | | | | | | | | | |
Proved | | | 1,004,808 | | | | 6,239,658 | | | | — | | | | — | | | | 7,244,466 | |
Less: accumulated DD&A | | | (370,111 | ) | | | (5,140,055 | ) | | | — | | | | — | | | | (5,510,166 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net proved oil and gas properties | | | 634,697 | | | | 1,099,603 | | | | — | | | | — | | | | 1,734,300 | |
Unevaluated | | | 254,757 | | | | 193,038 | | | | — | | | | — | | | | 447,795 | |
Other property and equipment, net | | | 22,115 | | | | — | | | | — | | | | — | | | | 22,115 | |
Fair value of hedging contracts | | | — | | | | 9,199 | | | | — | | | | — | | | | 9,199 | |
Other assets, net | | | 41,679 | | | | 1,500 | | | | — | | | | — | | | | 43,179 | |
Investment in subsidiary | | | 736,331 | | | | — | | | | — | | | | (736,331 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,000,714 | | | $ | 1,512,048 | | | $ | — | | | | ($736,331 | ) | | $ | 2,776,431 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable to vendors | | $ | 74,503 | | | $ | 19,858 | | | $ | — | | | $ | — | | | $ | 94,361 | |
Undistributed oil and gas proceeds | | | 21,841 | | | | 1,573 | | | | — | | | | — | | | | 23,414 | |
Accrued interest | | | 18,546 | | | | — | | | | — | | | | — | | | | 18,546 | |
Fair value of hedging contracts | | | — | | | | 149 | | | | — | | | | — | | | | 149 | |
Asset retirement obligations | | | — | | | | 66,260 | | | | — | | | | — | | | | 66,260 | |
Other current liabilities | | | 16,765 | | | | — | | | | — | | | | — | | | | 16,765 | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 131,655 | | | | 87,840 | | | | — | | | | — | | | | 219,495 | |
Long-term debt | | | 914,126 | | | | — | | | | — | | | | — | | | | 914,126 | |
Deferred taxes * | | | 47,758 | | | | 263,072 | | | | — | | | | — | | | | 310,830 | |
Asset retirement obligations | | | 5,479 | | | | 416,563 | | | | — | | | | — | | | | 422,042 | |
Fair value of hedging contracts | | | — | | | | 1,530 | | | | — | | | | — | | | | 1,530 | |
Other long-term liabilities | | | 29,563 | | | | 6,712 | | | | — | | | | — | | | | 36,275 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,128,581 | | | | 775,717 | | | | — | | | | — | | | | 1,904,298 | |
| | | | | | | | | | | | | | | | | | | | |
Commitments and contingencies Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 484 | | | | — | | | | — | | | | — | | | | 484 | |
Treasury stock | | | (860 | ) | | | — | | | | — | | | | — | | | | (860 | ) |
Additional paid-in capital | | | 1,386,475 | | | | 1,496,510 | | | | — | | | | (1,496,510 | ) | | | 1,386,475 | |
Accumulated deficit | | | (542,799 | ) | | | (789,012 | ) | | | — | | | | 789,012 | | | | (542,799 | ) |
Accumulated other comprehensive income | | | 28,833 | | | | 28,833 | | | | — | | | | (28,833 | ) | | | 28,833 | |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 872,133 | | | | 736,331 | | | | — | | | | (736,331 | ) | | | 872,133 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,000,714 | | | $ | 1,512,048 | | | $ | — | | | | ($736,331 | ) | | $ | 2,776,431 | |
| | | | | | | | | | | | | | | | | | | | |
|
* | Deferred income taxes have been allocated to Guarantor Subsidiary where related oil and gas properties reside. | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME |
YEAR ENDED DECEMBER 31, 2013 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 30,475 | | | $ | 684,629 | | | $ | — | | | $ | — | | | $ | 715,104 | |
Gas production | | | 68,895 | | | | 121,685 | | | | — | | | | — | | | | 190,580 | |
Natural gas liquids production | | | 32,293 | | | | 28,394 | | | | — | | | | — | | | | 60,687 | |
Other operational income | | | 7,163 | | | | 645 | | | | — | | | | — | | | | 7,808 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 138,826 | | | | 835,353 | | | | — | | | | — | | | | 974,179 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 14,680 | | | | 186,473 | | | | — | | | | — | | | | 201,153 | |
Transportation, processing, and gathering expenses | | | 28,322 | | | | 13,850 | | | | — | | | | — | | | | 42,172 | |
Production taxes | | | 6,229 | | | | 8,800 | | | | — | | | | — | | | | 15,029 | |
Depreciation, depletion, amortization | | | 93,579 | | | | 256,995 | | | | — | | | | — | | | | 350,574 | |
Accretion expense | | | 372 | | | | 33,203 | | | | — | | | | — | | | | 33,575 | |
Salaries, general and administrative | | | 59,473 | | | | 5 | | | | 46 | | | | — | | | | 59,524 | |
Franchise tax settlement | | | 12,590 | | | | — | | | | — | | | | — | | | | 12,590 | |
Incentive compensation expense | | | 15,340 | | | | — | | | | — | | | | — | | | | 15,340 | |
Other operational expenses | | | 38 | | | | 113 | | | | — | | | | — | | | | 151 | |
Derivative expense, net | | | — | | | | 2,090 | | | | — | | | | — | | | | 2,090 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 230,623 | | | | 501,529 | | | | 46 | | | | — | | | | 732,198 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (91,797 | ) | | | 333,824 | | | | (46 | ) | | | — | | | | 241,981 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 32,816 | | | | 21 | | | | — | | | | — | | | | 32,837 | |
Interest income | | | (1,480 | ) | | | (195 | ) | | | (20 | ) | | | — | | | | (1,695 | ) |
Other income | | | (875 | ) | | | (1,924 | ) | | | — | | | | — | | | | (2,799 | ) |
Loss on early extinguishment of debt | | | 27,279 | | | | — | | | | — | | | | — | | | | 27,279 | |
(Income) loss from investment in subsidiaries | | | (214,983 | ) | | | — | | | | 26 | | | | 214,957 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (157,243 | ) | | | (2,098 | ) | | | 6 | | | | 214,957 | | | | 55,622 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | 65,446 | | | | 335,922 | | | | (52 | ) | | | (214,957 | ) | | | 186,359 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | (10,904 | ) | | | — | | | | — | | | | — | | | | (10,904 | ) |
Deferred | | | (41,284 | ) | | | 120,913 | | | | — | | | | — | | | | 79,629 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (52,188 | ) | | | 120,913 | | | | — | | | | — | | | | 68,725 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 117,634 | | | $ | 215,009 | | | | ($52 | ) | | | ($214,957 | ) | | $ | 117,634 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 86,739 | | | $ | 215,009 | | | | ($52 | ) | | | ($214,957 | ) | | $ | 86,739 | |
| | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME |
YEAR ENDED DECEMBER 31, 2012 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 26,149 | | | $ | 735,155 | | | $ | — | | | $ | — | | | $ | 761,304 | |
Gas production | | | 34,331 | | | | 100,408 | | | | — | | | | — | | | | 134,739 | |
Natural gas liquids production | | | 15,264 | | | | 33,234 | | | | — | | | | — | | | | 48,498 | |
Other operational income | | | 2,766 | | | | 397 | | | | 357 | | | | — | | | | 3,520 | |
Derivative income, net | | | — | | | | 3,428 | | | | — | | | | — | | | | 3,428 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 78,510 | | | | 872,622 | | | | 357 | | | | — | | | | 951,489 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 19,914 | | | | 195,105 | | | | (16 | ) | | | — | | | | 215,003 | |
Transportation, processing and gathering expenses | | | 12,049 | | | | 9,733 | | | | — | | | | — | | | | 21,782 | |
Production taxes | | | 3,330 | | | | 6,685 | | | | — | | | | — | | | | 10,015 | |
Depreciation, depletion, amortization | | | 63,022 | | | | 281,152 | | | | 191 | | | | — | | | | 344,365 | |
Accretion expense | | | 561 | | | | 32,513 | | | | 257 | | | | — | | | | 33,331 | |
Salaries, general and administrative | | | 54,641 | | | | 7 | | | | — | | | | — | | | | 54,648 | |
Incentive compensation expense | | | 8,113 | | | | — | | | | — | | | | — | | | | 8,113 | |
Other operational expenses | | | 173 | | | | 94 | | | | — | | | | — | | | | 267 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 161,803 | | | | 525,289 | | | | 432 | | | | — | | | | 687,524 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (83,293 | ) | | | 347,333 | | | | (75 | ) | | | — | | | | 263,965 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 30,446 | | | | (71 | ) | | | — | | | | — | | | | 30,375 | |
Interest income | | | (285 | ) | | | (315 | ) | | | — | | | | — | | | | (600 | ) |
Other income | | | (144 | ) | | | (1,661 | ) | | | — | | | | — | | | | (1,805 | ) |
Loss on early extinguishment of debt | | | 1,972 | | | | — | | | | — | | | | — | | | | 1,972 | |
(Income) loss from investment in subsidiaries | | | (223,555 | ) | | | 75 | | | | — | | | | 223,480 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (191,566 | ) | | | (1,972 | ) | | | — | | | | 223,480 | | | | 29,942 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | 108,273 | | | | 349,305 | | | | (75 | ) | | | (223,480 | ) | | | 234,023 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | 15,022 | | | | — | | | | — | | | | — | | | | 15,022 | |
Deferred | | | (56,175 | ) | | | 125,750 | | | | — | | | | — | | | | 69,575 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (41,153 | ) | | | 125,750 | | | | — | | | | — | | | | 84,597 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 149,426 | | | $ | 223,555 | | | | ($75 | ) | | | ($223,480 | ) | | $ | 149,426 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 156,391 | | | $ | 223,555 | | | | ($75 | ) | | | ($223,480 | ) | | $ | 156,391 | |
| | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME |
YEAR ENDED DECEMBER 31, 2011 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 5,675 | | | $ | 658,283 | | | $ | — | | | $ | — | | | $ | 663,958 | |
Gas production | | | 19,470 | | | | 151,141 | | | | — | | | | — | | | | 170,611 | |
Natural gas liquids production | | | — | | | | 29,996 | | | | — | | | | — | | | | 29,996 | |
Other operational income | | | 3,085 | | | | 249 | | | | 604 | | | | — | | | | 3,938 | |
Derivative income, net | | | — | | | | 1,418 | | | | — | | | | — | | | | 1,418 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 28,230 | | | | 841,087 | | | | 604 | | | | — | | | | 869,921 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 6,632 | | | | 169,018 | | | | 231 | | | | — | | | | 175,881 | |
Transportation, processing and gathering expenses | | | — | | | | 8,958 | | | | — | | | | — | | | | 8,958 | |
Production taxes | | | 1,434 | | | | 7,946 | | | | — | | | | — | | | | 9,380 | |
Depreciation, depletion, amortization | | | 17,860 | | | | 261,326 | | | | 834 | | | | — | | | | 280,020 | |
Accretion expense | | | 15 | | | | 30,385 | | | | 364 | | | | — | | | | 30,764 | |
Salaries, general and administrative | | | 40,073 | | | | 94 | | | | 2 | | | | — | | | | 40,169 | |
Incentive compensation expense | | | 11,600 | | | | — | | | | — | | | | — | | | | 11,600 | |
Other operational expenses | | | 1,404 | | | | 745 | | | | — | | | | — | | | | 2,149 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 79,018 | | | | 478,472 | | | | 1,431 | | | | — | | | | 558,921 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (50,788 | ) | | | 362,615 | | | | (827 | ) | | | — | | | | 311,000 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 9,043 | | | | 246 | | | | — | | | | — | | | | 9,289 | |
Interest income | | | (178 | ) | | | (242 | ) | | | — | | | | — | | | | (420 | ) |
Other income | | | (52 | ) | | | (1,890 | ) | | | — | | | | — | | | | (1,942 | ) |
Loss on early extinguishment of debt | | | 607 | | | | — | | | | — | | | | — | | | | 607 | |
(Income) loss from investment in subsidiary | | | (232,751 | ) | | | 827 | | | | — | | | | 231,924 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (223,331 | ) | | | (1,059 | ) | | | — | | | | 231,924 | | | | 7,534 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | 172,543 | | | | 363,674 | | | | (827 | ) | | | (231,924 | ) | | | 303,466 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | (20,386 | ) | | | — | | | | — | | | | — | | | | (20,386 | ) |
Deferred | | | (1,403 | ) | | | 130,923 | | | | — | | | | — | | | | 129,520 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (21,789 | ) | | | 130,923 | | | | — | | | | — | | | | 109,134 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 194,332 | | | $ | 232,751 | | | | ($827 | ) | | | ($231,924 | ) | | $ | 194,332 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 230,404 | | | $ | 232,751 | | | | ($827 | ) | | | ($231,924 | ) | | $ | 230,404 | |
| | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2013 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 117,634 | | | $ | 215,009 | | | | ($52 | ) | | | ($214,957 | ) | | $ | 117,634 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
Depreciation, depletion and amortization | | | 93,579 | | | | 256,995 | | | | — | | | | — | | | | 350,574 | |
Accretion expense | | | 372 | | | | 33,203 | | | | — | | | | — | | | | 33,575 | |
Deferred income tax provision (benefit) | | | (41,284 | ) | | | 120,913 | | | | — | | | | — | | | | 79,629 | |
Settlement of asset retirement obligations | | | — | | | | (83,854 | ) | | | — | | | | — | | | | (83,854 | ) |
Non-cash stock compensation expense | | | 10,347 | | | | — | | | | — | | | | — | | | | 10,347 | |
Excess tax benefits | | | (156 | ) | | | — | | | | — | | | | — | | | | (156 | ) |
Non-cash derivative expense | | | — | | | | 2,239 | | | | — | | | | — | | | | 2,239 | |
Loss on early extinguishment of debt | | | 27,279 | | | | — | | | | — | | | | — | | | | 27,279 | |
Non-cash interest expense | | | 16,219 | | | | — | | | | — | | | | — | | | | 16,219 | |
Non-cash (income) loss from investment in subsidiaries | | | (214,983 | ) | | | — | | | | 26 | | | | 214,957 | | | | — | |
Change in current income taxes | | | 2,767 | | | | — | | | | — | | | | — | | | | 2,767 | |
Change in intercompany receivables/payables | | | 186,903 | | | | (186,947 | ) | | | 44 | | | | — | | | | — | |
(Increase) decrease in accounts receivable | | | (15,630 | ) | | | 10,947 | | | | — | | | | — | | | | (4,683 | ) |
Decrease in other current assets | | | 1,752 | | | | — | | | | — | | | | — | | | | 1,752 | |
Decrease in inventory | | | 583 | | | | — | | | | — | | | | — | | | | 583 | |
Increase (decrease) in accounts payable | | | (1,052 | ) | | | 1,454 | | | | — | | | | — | | | | 402 | |
Increase in other current liabilities | | | 40,543 | | | | 1,908 | | | | — | | | | — | | | | 42,451 | |
Other | | | 419 | | | | (2,972 | ) | | | — | | | | — | | | | (2,553 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 225,292 | | | | 368,895 | | | | 18 | | | | — | | | | 594,205 | |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Investment in oil and gas properties | | | (273,474 | ) | | | (378,254 | ) | | | (11,571 | ) | | | — | | | | (663,299 | ) |
Proceeds from sale of oil and gas properties, net of expenses | | | 6,300 | | | | 42,521 | | | | — | | | | — | | | | 48,821 | |
Investment in fixed and other assets | | | (6,816 | ) | | | — | | | | — | | | | — | | | | (6,816 | ) |
Change in restricted funds | | | — | | | | — | | | | (1,742 | ) | | | — | | | | (1,742 | ) |
Investment in subsidiaries | | | (14,000 | ) | | | — | | | | (13,404 | ) | | | 27,404 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (287,990 | ) | | | (335,733 | ) | | | (26,717 | ) | | | 27,404 | | | | (623,036 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of senior notes | | | 489,250 | | | | — | | | | — | | | | — | | | | 489,250 | |
Deferred financing costs | | | (9,065 | ) | | | — | | | | — | | | | — | | | | (9,065 | ) |
Redemption of senior notes | | | (396,014 | ) | | | — | | | | — | | | | — | | | | (396,014 | ) |
Excess tax benefits | | | 156 | | | | — | | | | — | | | | — | | | | 156 | |
Equity proceeds from parent | | | — | | | | — | | | | 27,404 | | | | (27,404 | ) | | | — | |
Net payments for share-based compensation | | | (3,733 | ) | | | — | | | | — | | | | — | | | | (3,733 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 80,594 | | | | — | | | | 27,404 | | | | (27,404 | ) | | | 80,594 | |
| | | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash | | | — | | | | — | | | | (65 | ) | | | — | | | | (65 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | | | 17,896 | | | | 33,162 | | | | 640 | | | | — | | | | 51,698 | |
Cash and cash equivalents, beginning of period | | | 228,398 | | | | 51,128 | | | | — | | | | — | | | | 279,526 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 246,294 | | | $ | 84,290 | | | $ | 640 | | | $ | — | | | $ | 331,224 | |
| | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2012 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 149,426 | | | $ | 223,555 | | | | ($75 | ) | | | ($223,480 | ) | | $ | 149,426 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
Depreciation, depletion and amortization | | | 63,022 | | | | 281,152 | | | | 191 | | | | — | | | | 344,365 | |
Accretion expense | | | 561 | | | | 32,513 | | | | 257 | | | | — | | | | 33,331 | |
Deferred income tax provision (benefit) | | | (56,175 | ) | | | 125,750 | | | | — | | | | — | | | | 69,575 | |
Settlement of asset retirement obligations | | | — | | | | (65,567 | ) | | | — | | | | — | | | | (65,567 | ) |
Non-cash stock compensation expense | | | 8,699 | | | | — | | | | — | | | | — | | | | 8,699 | |
Excess tax benefits | | | (949 | ) | | | — | | | | — | | | | — | | | | (949 | ) |
Non-cash derivative income | | | — | | | | (509 | ) | | | — | | | | — | | | | (509 | ) |
Loss on early extinguishment of debt | | | 1,972 | | | | — | | | | — | | | | — | | | | 1,972 | |
Non-cash interest expense | | | 13,085 | | | | — | | | | — | | | | — | | | | 13,085 | |
Non-cash (income) loss from investment in subsidiaries | | | (223,555 | ) | | | 75 | | | | — | | | | 223,480 | | | | — | |
Change in current income taxes | | | 10,618 | | | | — | | | | — | | | | — | | | | 10,618 | |
Change in intercompany receivables/payables | | | 275,819 | | | | (275,125 | ) | | | (694 | ) | | | — | | | | — | |
(Increase) decrease in accounts receivable | | | (22,750 | ) | | | (33,345 | ) | | | 224 | | | | — | | | | (55,871 | ) |
Increase in other current assets | | | (2,836 | ) | | | — | | | | — | | | | — | | | | (2,836 | ) |
Decrease in inventory | | | 436 | | | | — | | | | — | | | | — | | | | 436 | |
Increase (decrease) in accounts payable | | | 5,348 | | | | (208 | ) | | | (39 | ) | | | — | | | | 5,101 | |
Decrease in other current liabilities | | | (5,311 | ) | | | (5,115 | ) | | | — | | | | — | | | | (10,426 | ) |
Other | | | 10,960 | | | | (1,661 | ) | | | — | | | | — | | | | 9,299 | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | | | 228,370 | | | | 281,515 | | | | (136 | ) | | | — | | | | 509,749 | |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Investment in oil and gas properties | | | (324,542 | ) | | | (231,313 | ) | | | — | | | | — | | | | (555,855 | ) |
Proceeds from sale of oil and gas properties, net of expenses | | | 403 | | | | — | | | | — | | | | — | | | | 403 | |
Sale of fixed assets | | | 134 | | | | — | | | | — | | | | — | | | | 134 | |
Investment in fixed and other assets | | | (13,370 | ) | | | — | | | | — | | | | — | | | | (13,370 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (337,375 | ) | | | (231,313 | ) | | | — | | | | — | | | | (568,688 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from bank borrowings | | | 25,000 | | | | — | | | | — | | | | — | | | | 25,000 | |
Repayment of bank borrowings | | | (70,000 | ) | | | — | | | | — | | | | — | | | | (70,000 | ) |
Proceeds from issuance of senior convertible notes | | | 300,000 | | | | — | | | | — | | | | — | | | | 300,000 | |
Deferred financing costs of senior convertible notes | | | (8,855 | ) | | | — | | | | — | | | | — | | | | (8,855 | ) |
Proceeds from sold warrants | | | 40,170 | | | | — | | | | — | | | | — | | | | 40,170 | |
Payments for purchased call options | | | (70,830 | ) | | | — | | | | — | | | | — | | | | (70,830 | ) |
Proceeds from issuance of senior notes | | | 300,000 | | | | — | | | | — | | | | — | | | | 300,000 | |
Deferred financing costs | | | (11,966 | ) | | | — | | | | — | | | | — | | | | (11,966 | ) |
Redemption of senior subordinated notes | | | (200,681 | ) | | | — | | | | — | | | | — | | | | (200,681 | ) |
Excess tax benefits | | | 949 | | | | — | | | | — | | | | — | | | | 949 | |
Net payments for share-based compensation | | | (3,773 | ) | | | — | | | | — | | | | — | | | | (3,773 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 300,014 | | | | — | | | | — | | | | — | | | | 300,014 | |
| | | | | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | | | 191,009 | | | | 50,202 | | | | (136 | ) | | | — | | | | 241,075 | |
Cash and cash equivalents, beginning of period | | | 37,389 | | | | 926 | | | | 136 | | | | — | | | | 38,451 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 228,398 | | | $ | 51,128 | | | $ | — | | | $ | — | | | $ | 279,526 | |
| | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
YEAR ENDED DECEMBER 31, 2011 |
(In thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non-Guarantor | | | Eliminations | | | Consolidated | |
Subsidiary | Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 194,332 | | | $ | 232,751 | | | | ($827 | ) | | | ($231,924 | ) | | $ | 194,332 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
Depreciation, depletion and amortization | | | 17,860 | | | | 261,326 | | | | 834 | | | | — | | | | 280,020 | |
Accretion expense | | | 15 | | | | 30,385 | | | | 364 | | | | — | | | | 30,764 | |
Deferred income tax provision (benefit) | | | (1,403 | ) | | | 130,923 | | | | — | | | | — | | | | 129,520 | |
Settlement of asset retirement obligations | | | — | | | | (63,391 | ) | | | — | | | | — | | | | (63,391 | ) |
Non-cash stock compensation expense | | | 5,905 | | | | — | | | | — | | | | — | | | | 5,905 | |
Excess tax benefits | | | (1,493 | ) | | | — | | | | — | | | | — | | | | (1,493 | ) |
Non-cash derivative income | | | — | | | | (2,216 | ) | | | — | | | | — | | | | (2,216 | ) |
Loss on early extinguishment of debt | | | 607 | | | | — | | | | — | | | | — | | | | 607 | |
Non-cash interest expense | | | 1,908 | | | | — | | | | — | | | | — | | | | 1,908 | |
Other non-cash income | | | (1,602 | ) | | | — | | | | — | | | | — | | | | (1,602 | ) |
Non-cash income from investment in subsidiaries | | | (230,861 | ) | | | (1,063 | ) | | | — | | | | 231,924 | | | | — | |
Change in current income taxes | | | (19,451 | ) | | | — | | | | — | | | | — | | | | (19,451 | ) |
Change in intercompany receivables/payables | | | 217,287 | | | | (217,724 | ) | | | 437 | | | | — | | | | — | |
Increase in accounts receivable | | | (11,022 | ) | | | (7,688 | ) | | | (890 | ) | | | — | | | | (19,600 | ) |
(Increase) decrease in other current assets | | | (80 | ) | | | 14 | | | | — | | | | — | | | | (66 | ) |
Decrease in inventory | | | 1,605 | | | | 14 | | | | — | | | | — | | | | 1,619 | |
Increase in accounts payable | | | 2,658 | | | | 3,341 | | | | 40 | | | | — | | | | 6,039 | |
Increase in other current liabilities | | | 23,440 | | | | 6,143 | | | | — | | | | — | | | | 29,583 | |
Other | | | (1,628 | ) | | | — | | | | — | | | | — | | | | (1,628 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | | | 198,077 | | | | 372,815 | | | | (42 | ) | | | — | | | | 570,850 | |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Investment in oil and gas properties | | | (309,026 | ) | | | (455,903 | ) | | | (4 | ) | | | — | | | | (764,933 | ) |
Proceeds from sale of oil and gas properties, net of expenses | | | 5,575 | | | | 82,355 | | | | — | | | | — | | | | 87,930 | |
Investment in fixed and other assets | | | (2,247 | ) | | | — | | | | — | | | | — | | | | (2,247 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (305,698 | ) | | | (373,548 | ) | | | (4 | ) | | | — | | | | (679,250 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from bank borrowings | | | 75,000 | | | | — | | | | — | | | | — | | | | 75,000 | |
Repayment of bank borrowings | | | (30,000 | ) | | | — | | | | — | | | | — | | | | (30,000 | ) |
Deferred financing costs | | | (4,017 | ) | | | — | | | | — | | | | — | | | | (4,017 | ) |
Excess tax benefits | | | 1,493 | | | | — | | | | — | | | | — | | | | 1,493 | |
Net payments for share-based compensation | | | (2,581 | ) | | | — | | | | — | | | | — | | | | (2,581 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 39,895 | | | | — | | | | — | | | | — | | | | 39,895 | |
| | | | | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | | | (67,726 | ) | | | (733 | ) | | | (46 | ) | | | — | | | | (68,505 | ) |
Cash and cash equivalents, beginning of period | | | 105,115 | | | | 1,659 | | | | 182 | | | | — | | | | 106,956 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 37,389 | | | $ | 926 | | | $ | 136 | | | $ | — | | | $ | 38,451 | |
| | | | | | | | | | | | | | | | | | | | |