Guarantor Financial Statements | 6 Months Ended |
Jun. 30, 2014 |
Guarantees [Abstract] | ' |
Guarantor Financial Statements | ' |
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Note 14 – Guarantor Financial Statements |
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Stone Offshore is an unconditional guarantor (the “Guarantor Subsidiary”) of the 2017 Convertible Notes and the 2022 Notes. Our other subsidiaries (the “Non-Guarantor Subsidiaries”) have not provided guarantees. The following presents unaudited condensed consolidating financial information as of June 30, 2014 and December 31, 2013 and for the three and six month periods ended June 30, 2014 and 2013 on an issuer (parent company), Guarantor Subsidiary, Non-Guarantor Subsidiaries and consolidated basis. Elimination entries presented are necessary to combine the entities. |
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CONDENSED CONSOLIDATING BALANCE SHEET |
|
30-Jun-14 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Assets | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 244,254 | | | $ | 89,388 | | | $ | 244 | | | $ | — | | | $ | 333,886 | |
Accounts receivable | | | 153,316 | | | | 80,436 | | | | — | | | | (36,257 | ) | | | 197,495 | |
Current income tax receivable | | | 7,372 | | | | — | | | | — | | | | — | | | | 7,372 | |
Deferred taxes * | | | 1,565 | | | | 34,743 | | | | — | | | | — | | | | 36,308 | |
Inventory | | | 3,440 | | | | 283 | | | | — | | | | — | | | | 3,723 | |
Other current assets | | | 1,955 | | | | — | | | | — | | | | — | | | | 1,955 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 411,902 | | | | 204,850 | | | | 244 | | | | (36,257 | ) | | | 580,739 | |
Oil and gas properties, full cost method: | | | | | | | | | | | | | | | | | | | | |
Proved | | | 1,475,522 | | | | 7,044,673 | | | | — | | | | — | | | | 8,520,195 | |
Less: accumulated DD&A | | | (527,605 | ) | | | (5,617,210 | ) | | | — | | | | — | | | | (6,144,815 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net proved oil and gas properties | | | 947,917 | | | | 1,427,463 | | | | — | | | | — | | | | 2,375,380 | |
Unevaluated | | | 302,396 | | | | 237,146 | | | | 14,659 | | | | — | | | | 554,201 | |
Other property and equipment, net | | | 28,302 | | | | — | | | | — | | | | — | | | | 28,302 | |
Fair value of derivative contracts | | | — | | | | 415 | | | | — | | | | — | | | | 415 | |
Other assets, net | | | 30,734 | | | | 1,880 | | | | 10,401 | | | | — | | | | 43,015 | |
Investment in subsidiary | | | 798,664 | | | | — | | | | 25,156 | | | | (823,820 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,519,915 | | | $ | 1,871,754 | | | $ | 50,460 | | | ($ | 860,077 | ) | | $ | 3,582,052 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable to vendors | | $ | 93,251 | | | $ | 125,177 | | | $ | 11,729 | | | ($ | 36,257 | ) | | $ | 193,900 | |
Undistributed oil and gas proceeds | | | 60,724 | | | | 2,203 | | | | — | | | | — | | | | 62,927 | |
Accrued interest | | | 9,025 | | | | — | | | | — | | | | — | | | | 9,025 | |
Fair value of derivative contracts | | | — | | | | 25,711 | | | | — | | | | — | | | | 25,711 | |
Asset retirement obligations | | | — | | | | 77,132 | | | | — | | | | — | | | | 77,132 | |
Other current liabilities | | | 76,461 | | | | 3,078 | | | | — | | | | — | | | | 79,539 | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 239,461 | | | | 233,301 | | | | 11,729 | | | | (36,257 | ) | | | 448,234 | |
Long-term debt | | | 1,033,931 | | | | — | | | | — | | | | — | | | | 1,033,931 | |
Deferred taxes * | | | (16,629 | ) | | | 420,817 | | | | — | | | | — | | | | 404,188 | |
Asset retirement obligations | | | 3,764 | | | | 427,296 | | | | — | | | | — | | | | 431,060 | |
Fair value of derivative contracts | | | — | | | | 5,251 | | | | — | | | | — | | | | 5,251 | |
Other long-term liabilities | | | 47,843 | | | | — | | | | — | | | | — | | | | 47,843 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 1,308,370 | | | | 1,086,665 | | | | 11,729 | | | | (36,257 | ) | | | 2,370,507 | |
| | | | | | | | | | | | | | | | | | | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Common stock | | | 549 | | | | — | | | | — | | | | — | | | | 549 | |
Treasury stock | | | (860 | ) | | | — | | | | — | | | | — | | | | (860 | ) |
Additional paid-in capital | | | 1,624,795 | | | | 1,309,562 | | | | 39,580 | | | | (1,349,142 | ) | | | 1,624,795 | |
Accumulated deficit | | | (394,778 | ) | | | (506,723 | ) | | | (28 | ) | | | 506,751 | | | | (394,778 | ) |
Accumulated other comprehensive loss | | | (18,161 | ) | | | (17,750 | ) | | | (821 | ) | | | 18,571 | | | | (18,161 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | | | 1,211,545 | | | | 785,089 | | | | 38,731 | | | | (823,820 | ) | | | 1,211,545 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,519,915 | | | $ | 1,871,754 | | | $ | 50,460 | | | ($ | 860,077 | ) | | $ | 3,582,052 | |
| | | | | | | | | | | | | | | | | | | | |
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* | Deferred income taxes have been allocated to the Guarantor Subsidiary where related oil and gas properties reside. | | | | | | | | | | | | | | | | | | | |
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CONDENSED CONSOLIDATING BALANCE SHEET |
|
31-Dec-13 |
|
(In thousands) |
|
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| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| 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 derivative 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 derivative 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 derivative 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 derivative 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 | |
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* | Deferred income taxes have been allocated to the Guarantor Subsidiary where related oil and gas properties reside. | | | | | | | | | | | | | | | | | | | |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME |
|
THREE MONTHS ENDED JUNE 30, 2014 |
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(In thousands) |
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|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 5,854 | | | $ | 136,539 | | | $ | — | | | $ | — | | | $ | 142,393 | |
Gas production | | | 20,800 | | | | 25,867 | | | | — | | | | — | | | | 46,667 | |
Natural gas liquids production | | | 10,219 | | | | 5,717 | | | | — | | | | — | | | | 15,936 | |
Other operational income | | | 1,880 | | | | 170 | | | | — | | | | — | | | | 2,050 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 38,753 | | | | 168,293 | | | | — | | | | — | | | | 207,046 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 5,046 | | | | 44,408 | | | | — | | | | — | | | | 49,454 | |
Transportation, processing and gathering expenses | | | 10,456 | | | | 3,642 | | | | — | | | | — | | | | 14,098 | |
Production taxes | | | 1,903 | | | | 1,354 | | | | — | | | | — | | | | 3,257 | |
Depreciation, depletion, amortization | | | 30,385 | | | | 62,450 | | | | — | | | | — | | | | 92,835 | |
Accretion expense | | | 61 | | | | 7,672 | | | | — | | | | — | | | | 7,733 | |
Salaries, general and administrative | | | 16,639 | | | | — | | | | (2 | ) | | | — | | | | 16,637 | |
Incentive compensation expense | | | 3,903 | | | | — | | | | — | | | | — | | | | 3,903 | |
Derivative expense, net | | | — | | | | 2,516 | | | | — | | | | — | | | | 2,516 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 68,393 | | | | 122,042 | | | | (2 | ) | | | — | | | | 190,433 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (29,640 | ) | | | 46,251 | | | | 2 | | | | — | | | | 16,613 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 9,880 | | | | 33 | | | | — | | | | — | | | | 9,913 | |
Interest income | | | (146 | ) | | | (41 | ) | | | (6 | ) | | | — | | | | (193 | ) |
Other income | | | (192 | ) | | | (530 | ) | | | — | | | | — | | | | (722 | ) |
Other expense | | | 179 | | | | — | | | | — | | | | — | | | | 179 | |
Income from investment in subsidiaries | | | (29,947 | ) | | | — | | | | (8 | ) | | | 29,955 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (20,226 | ) | | | (538 | ) | | | (14 | ) | | | 29,955 | | | | 9,177 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | (9,414 | ) | | | 46,789 | | | | 16 | | | | (29,955 | ) | | | 7,436 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | — | | | | — | | | | — | | | | — | | | | — | |
Deferred | | | (13,858 | ) | | | 16,850 | | | | — | | | | — | | | | 2,992 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (13,858 | ) | | | 16,850 | | | | — | | | | — | | | | 2,992 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 4,444 | | | $ | 29,939 | | | $ | 16 | | | ($ | 29,955 | ) | | $ | 4,444 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | ($ | 4,566 | ) | | $ | 29,939 | | | $ | 16 | | | ($ | 29,955 | ) | | ($ | 4,566 | ) |
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CONDENSED CONSOLIDATING STATEMENT OF INCOME |
|
THREE MONTHS ENDED JUNE 30, 2013 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 8,378 | | | $ | 176,120 | | | $ | — | | | $ | — | | | $ | 184,498 | |
Gas production | | | 20,071 | | | | 27,761 | | | | — | | | | — | | | | 47,832 | |
Natural gas liquids production | | | 6,378 | | | | 4,822 | | | | — | | | | — | | | | 11,200 | |
Other operational income | | | 790 | | | | 189 | | | | — | | | | — | | | | 979 | |
Derivate income, net | | | — | | | | 1,368 | | | | — | | | | — | | | | 1,368 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 35,617 | | | | 210,260 | | | | — | | | | — | | | | 245,877 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 3,425 | | | | 47,092 | | | | — | | | | — | | | | 50,517 | |
Transportation, processing and gathering expenses | | | 5,729 | | | | 3,167 | | | | — | | | | — | | | | 8,896 | |
Production taxes | | | 1,320 | | | | 2,771 | | | | — | | | | — | | | | 4,091 | |
Depreciation, depletion, amortization | | | 25,088 | | | | 62,121 | | | | — | | | | — | | | | 87,209 | |
Accretion expense | | | 93 | | | | 8,225 | | | | — | | | | — | | | | 8,318 | |
Salaries, general and administrative | | | 15,150 | | | | — | | | | 48 | | | | — | | | | 15,198 | |
Incentive compensation expense | | | 2,050 | | | | — | | | | — | | | | — | | | | 2,050 | |
Other operational expenses | | | 51 | | | | 22 | | | | — | | | | | | | | 73 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 52,906 | | | | 123,398 | | | | 48 | | | | — | | | | 176,352 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (17,289 | ) | | | 86,862 | | | | (48 | ) | | | — | | | | 69,525 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 8,882 | | | | 13 | | | | — | | | | — | | | | 8,895 | |
Interest income | | | (70 | ) | | | (38 | ) | | | (7 | ) | | | — | | | | (115 | ) |
Other income | | | (217 | ) | | | (465 | ) | | | — | | | | — | | | | (682 | ) |
(Income) loss from investment in subsidiaries | | | (55,893 | ) | | | — | | | | 39 | | | | 55,854 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (47,298 | ) | | | (490 | ) | | | 32 | | | | 55,854 | | | | 8,098 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | 30,009 | | | | 87,352 | | | | (80 | ) | | | (55,854 | ) | | | 61,427 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | (6,993 | ) | | | — | | | | — | | | | — | | | | (6,993 | ) |
Deferred | | | (2,020 | ) | | | 31,418 | | | | — | | | | — | | | | 29,398 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (9,013 | ) | | | 31,418 | | | | — | | | | — | | | | 22,405 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 39,022 | | | $ | 55,934 | | | ($ | 80 | ) | | ($ | 55,854 | ) | | $ | 39,022 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 53,060 | | | $ | 55,934 | | | ($ | 80 | ) | | ($ | 55,854 | ) | | $ | 53,060 | |
| | | | | | | | | | | | | | | | | | | | |
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|
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME |
|
SIX MONTHS ENDED JUNE 30, 2014 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 12,490 | | | $ | 268,192 | | | $ | — | | | $ | — | | | $ | 280,682 | |
Gas production | | | 49,639 | | | | 53,390 | | | | — | | | | — | | | | 103,029 | |
Natural gas liquids production | | | 28,473 | | | | 15,433 | | | | — | | | | — | | | | 43,906 | |
Other operational income | | | 2,704 | | | | 343 | | | | — | | | | — | | | | 3,047 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 93,306 | | | | 337,358 | | | | — | | | | — | | | | 430,664 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 9,059 | | | | 87,298 | | | | — | | | | — | | | | 96,357 | |
Transportation, processing and gathering expenses | | | 20,773 | | | | 7,951 | | | | — | | | | — | | | | 28,724 | |
Production taxes | | | 3,584 | | | | 2,735 | | | | — | | | | — | | | | 6,319 | |
Depreciation, depletion, amortization | | | 58,440 | | | | 117,041 | | | | — | | | | — | | | | 175,481 | |
Accretion expense | | | 129 | | | | 15,159 | | | | — | | | | — | | | | 15,288 | |
Salaries, general and administrative | | | 32,964 | | | | 2 | | | | — | | | | — | | | | 32,966 | |
Incentive compensation expense | | | 7,037 | | | | — | | | | — | | | | — | | | | 7,037 | |
Other operational expenses | | | 176 | | | | 36 | | | | — | | | | — | | | | 212 | |
Derivative expense, net | | | — | | | | 3,115 | | | | — | | | | — | | | | 3,115 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 132,162 | | | | 233,337 | | | | — | | | | — | | | | 365,499 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (38,856 | ) | | | 104,021 | | | | — | | | | — | | | | 65,165 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 18,233 | | | | 37 | | | | — | | | | — | | | | 18,270 | |
Interest income | | | (225 | ) | | | (99 | ) | | | (12 | ) | | | — | | | | (336 | ) |
Other income | | | (373 | ) | | | (1,056 | ) | | | — | | | | — | | | | (1,429 | ) |
Other expense | | | 179 | | | | — | | | | — | | | | — | | | | 179 | |
Income from investment in subsidiaries | | | (67,292 | ) | | | — | | | | (12 | ) | | | 67,304 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (49,478 | ) | | | (1,118 | ) | | | (24 | ) | | | 67,304 | | | | 16,684 | |
| | | | | | | | | | | | | | | | | | | | |
Income before taxes | | | 10,622 | | | | 105,139 | | | | 24 | | | | (67,304 | ) | | | 48,481 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | — | | | | — | | | | — | | | | — | | | | — | |
Deferred | | | (19,765 | ) | | | 37,859 | | | | — | | | | — | | | | 18,094 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (19,765 | ) | | | 37,859 | | | | — | | | | — | | | | 18,094 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 30,387 | | | $ | 67,280 | | | $ | 24 | | | ($ | 67,304 | ) | | $ | 30,387 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | | $ | 14,288 | | | $ | 67,280 | | | $ | 24 | | | ($ | 67,304 | ) | | $ | 14,288 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF INCOME |
|
SIX MONTHS ENDED JUNE 30, 2013 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Operating revenue: | | | | | | | | | | | | | | | | | | | | |
Oil production | | $ | 13,721 | | | $ | 357,702 | | | $ | — | | | $ | — | | | $ | 371,423 | |
Gas production | | | 27,269 | | | | 57,385 | | | | — | | | | — | | | | 84,654 | |
Natural gas liquids production | | | 8,677 | | | | 11,701 | | | | — | | | | — | | | | 20,378 | |
Other operational income | | | 1,439 | | | | 347 | | | | — | | | | — | | | | 1,786 | |
Derivate income, net | | | — | | | | 147 | | | | — | | | | — | | | | 147 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating revenue | | | 51,106 | | | | 427,282 | | | | — | | | | — | | | | 478,388 | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Lease operating expenses | | | 5,716 | | | | 97,845 | | | | — | | | | — | | | | 103,561 | |
Transportation, processing and gathering expenses | | | 7,781 | | | | 6,512 | | | | — | | | | — | | | | 14,293 | |
Production taxes | | | 2,187 | | | | 3,993 | | | | — | | | | — | | | | 6,180 | |
Depreciation, depletion, amortization | | | 35,279 | | | | 127,365 | | | | — | | | | — | | | | 162,644 | |
Accretion expense | | | 186 | | | | 16,395 | | | | — | | | | — | | | | 16,581 | |
Salaries, general and administrative | | | 29,098 | | | | 4 | | | | 48 | | | | — | | | | 29,150 | |
Incentive compensation expense | | | 3,481 | | | | — | | | | — | | | | — | | | | 3,481 | |
Other operational expenses | | | 101 | | | | 44 | | | | — | | | | | | | | 145 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 83,829 | | | | 252,158 | | | | 48 | | | | — | | | | 336,035 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | | | (32,723 | ) | | | 175,124 | | | | (48 | ) | | | — | | | | 142,353 | |
| | | | | | | | | | | | | | | | | | | | |
Other (income) expenses: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 18,509 | | | | 21 | | | | — | | | | — | | | | 18,530 | |
Interest income | | | (150 | ) | | | (75 | ) | | | (7 | ) | | | — | | | | (232 | ) |
Other income | | | (441 | ) | | | (967 | ) | | | — | | | | — | | | | (1,408 | ) |
(Income) loss from investment in subsidiaries | | | (112,721 | ) | | | — | | | | 39 | | | | 112,682 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total other (income) expenses | | | (94,803 | ) | | | (1,021 | ) | | | 32 | | | | 112,682 | | | | 16,890 | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) before taxes | | | 62,080 | | | | 176,145 | | | | (80 | ) | | | (112,682 | ) | | | 125,463 | |
| | | | | | | | | | | | | | | | | | | | |
Provision (benefit) for income taxes: | | | | | | | | | | | | | | | | | | | | |
Current | | | (10,739 | ) | | | — | | | | — | | | | — | | | | (10,739 | ) |
Deferred | | | (6,961 | ) | | | 63,383 | | | | — | | | | — | | | | 56,422 | |
| | | | | | | | | | | | | | | | | | | | |
Total income taxes | | | (17,700 | ) | | | 63,383 | | | | — | | | | — | | | | 45,683 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 79,780 | | | $ | 112,762 | | | ($ | 80 | ) | | ($ | 112,682 | ) | | $ | 79,780 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income (loss) | | $ | 75,477 | | | $ | 112,762 | | | ($ | 80 | ) | | ($ | 112,682 | ) | | $ | 75,477 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
|
SIX MONTHS ENDED JUNE 30, 2014 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 30,387 | | | $ | 67,280 | | | $ | 24 | | | ($ | 67,304 | ) | | $ | 30,387 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
Depreciation, depletion and amortization | | | 58,440 | | | | 117,041 | | | | — | | | | — | | | | 175,481 | |
Accretion expense | | | 129 | | | | 15,159 | | | | — | | | | — | | | | 15,288 | |
Deferred income tax provision (benefit) | | | (19,765 | ) | | | 37,859 | | | | — | | | | — | | | | 18,094 | |
Settlement of asset retirement obligations | | | (82 | ) | | | (24,833 | ) | | | — | | | | — | | | | (24,915 | ) |
Non-cash stock compensation expense | | | 5,358 | | | | — | | | | — | | | | — | | | | 5,358 | |
Non-cash derivative expense | | | — | | | | 2,697 | | | | — | | | | — | | | | 2,697 | |
Non-cash interest expense | | | 8,229 | | | | — | | | | — | | | | — | | | | 8,229 | |
Change in current income taxes | | | (6 | ) | | | — | | | | — | | | | — | | | | (6 | ) |
Non-cash income from investment in subsidiaries | | | (67,292 | ) | | | — | | | | (12 | ) | | | 67,304 | | | | — | |
Change in intercompany receivables/payables | | | (126,526 | ) | | | 114,841 | | | | 11,685 | | | | — | | | | — | |
(Increase) decrease in accounts receivable | | | (42,216 | ) | | | 16,692 | | | | — | | | | — | | | | (25,524 | ) |
Increase in other current assets | | | (82 | ) | | | — | | | | — | | | | — | | | | (82 | ) |
Increase (decrease) in accounts payable | | | 2,052 | | | | (209 | ) | | | — | | | | — | | | | 1,843 | |
Increase in other current liabilities | | | 48,987 | | | | 1,798 | | | | — | | | | — | | | | 50,785 | |
Other | | | 381 | | | | (1,056 | ) | | | — | | | | — | | | | (675 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by operating activities | | | (102,006 | ) | | | 347,269 | | | | 11,697 | | | | — | | | | 256,960 | |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Investment in oil and gas properties | | | (121,836 | ) | | | (384,349 | ) | | | (11,719 | ) | | | — | | | | (517,904 | ) |
Proceeds from sale of oil and gas properties, net of expenses | | | 9,777 | | | | 42,178 | | | | — | | | | — | | | | 51,955 | |
Investment in fixed and other assets | | | (3,896 | ) | | | — | | | | — | | | | — | | | | (3,896 | ) |
Change in restricted funds | | | — | | | | — | | | | (356 | ) | | | — | | | | (356 | ) |
Investment in subsidiaries | | | — | | | | — | | | | (12,176 | ) | | | 12,176 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (115,955 | ) | | | (342,171 | ) | | | (24,251 | ) | | | 12,176 | | | | (470,201 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Net proceeds from issuance of common stock | | | 226,036 | | | | — | | | | — | | | | — | | | | 226,036 | |
Deferred financing costs | | | (3,167 | ) | | | — | | | | — | | | | — | | | | (3,167 | ) |
Equity proceeds from parent | | | — | | | | — | | | | 12,176 | | | | (12,176 | ) | | | — | |
Net payments for share-based compensation | | | (6,948 | ) | | | — | | | | — | | | | — | | | | (6,948 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | | 215,921 | | | | — | | | | 12,176 | | | | (12,176 | ) | | | 215,921 | |
| | | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash | | | — | | | | — | | | | (18 | ) | | | — | | | | (18 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | | | (2,040 | ) | | | 5,098 | | | | (396 | ) | | | — | | | | 2,662 | |
Cash and cash equivalents, beginning of period | | | 246,294 | | | | 84,290 | | | | 640 | | | | — | | | | 331,224 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 244,254 | | | $ | 89,388 | | | $ | 244 | | | $ | — | | | $ | 333,886 | |
| | | | | | | | | | | | | | | | | | | | |
|
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
|
SIX MONTHS ENDED JUNE 30, 2013 |
|
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | | Guarantor | | | Non- | | | Eliminations | | | Consolidated | |
Subsidiary | Guarantor |
| Subsidiaries |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 79,780 | | | $ | 112,762 | | | ($ | 80 | ) | | ($ | 112,682 | ) | | $ | 79,780 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
Depreciation, depletion and amortization | | | 35,279 | | | | 127,365 | | | | — | | | | — | | | | 162,644 | |
Accretion expense | | | 186 | | | | 16,395 | | | | — | | | | — | | | | 16,581 | |
Deferred income tax provision (benefit) | | | (6,961 | ) | | | 63,383 | | | | — | | | | — | | | | 56,422 | |
Settlement of asset retirement obligations | | | — | | | | (37,335 | ) | | | — | | | | — | | | | (37,335 | ) |
Non-cash stock compensation expense | | | 4,866 | | | | — | | | | — | | | | — | | | | 4,866 | |
Excess tax benefits | | | (104 | ) | | | — | | | | — | | | | — | | | | (104 | ) |
Non-cash derivative expense | | | — | | | | 311 | | | | — | | | | — | | | | 311 | |
Non-cash interest expense | | | 8,181 | | | | — | | | | — | | | | — | | | | 8,181 | |
Non-cash income (loss) from investment in subsidiaries | | | (112,722 | ) | | | — | | | | 40 | | | | 112,682 | | | | — | |
Change in current income taxes | | | (16,399 | ) | | | — | | | | — | | | | — | | | | (16,399 | ) |
Change in intercompany receivables/payables | | | 170,815 | | | | (170,859 | ) | | | 44 | | | | — | | | | — | |
(Increase) decrease in accounts receivable | | | (17,365 | ) | | | 18,503 | | | | — | | | | — | | | | 1,138 | |
Increase in other current assets | | | (245 | ) | | | — | | | | — | | | | — | | | | (245 | ) |
Decrease in inventory | | | 158 | | | | — | | | | — | | | | — | | | | 158 | |
Increase in accounts payable | | | 4,507 | | | | 2,086 | | | | — | | | | — | | | | 6,593 | |
Increase (decrease) in other current liabilities | | | (5,258 | ) | | | 2,088 | | | | — | | | | — | | | | (3,170 | ) |
Other | | | (2,482 | ) | | | (966 | ) | | | — | | | | — | | | | (3,448 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 142,236 | | | | 133,733 | | | | 4 | | | | — | | | | 275,973 | |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | |
Investment in oil and gas properties | | | (176,896 | ) | | | (133,659 | ) | | | (9,663 | ) | | | — | | | | (320,218 | ) |
Investment in fixed and other assets | | | (1,711 | ) | | | — | | | | — | | | | — | | | | (1,711 | ) |
Change in restricted funds | | | — | | | | — | | | | (3,515 | ) | | | — | | | | (3,515 | ) |
Investment in subsidiaries | | | (14,000 | ) | | | — | | | | (13,404 | ) | | | 27,404 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | | (192,607 | ) | | | (133,659 | ) | | | (26,582 | ) | | | 27,404 | | | | (325,444 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | |
Deferred financing costs | | | (11 | ) | | | — | | | | — | | | | — | | | | (11 | ) |
Excess tax benefits | | | 104 | | | | — | | | | — | | | | — | | | | 104 | |
Equity proceeds from parent | | | — | | | | — | | | | 27,404 | | | | (27,404 | ) | | | — | |
Net payments for share-based compensation | | | (3,590 | ) | | | — | | | | — | | | | — | | | | (3,590 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by financing activities | | | (3,497 | ) | | | — | | | | 27,404 | | | | (27,404 | ) | | | (3,497 | ) |
| | | | | | | | | | | | | | | | | | | | |
Effect of exchange rate on cash | | | — | | | | — | | | | (186 | ) | | | — | | | | (186 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | | | (53,868 | ) | | | 74 | | | | 640 | | | | — | | | | (53,154 | ) |
Cash and cash equivalents, beginning of period | | | 228,398 | | | | 51,128 | | | | — | | | | — | | | | 279,526 | |
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 174,530 | | | $ | 51,202 | | | $ | 640 | | | $ | — | | | $ | 226,372 | |
| | | | | | | | | | | | | | | | | | | | |