Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

10. Condensed Consolidating Financial Information

In November 2010 and November 2011, the Company and certain of the Company’s wholly-owned subsidiaries issued in private placements $400.0 million and $200.0 million, respectively, aggregate principal amount of the Company’s 8.625% Senior Notes. Certain, but not all, of the Company’s wholly-owned subsidiaries have issued full, unconditional and joint and several guarantees of the 8.625% Senior Notes and may guarantee future issuances of debt securities. In June 2011 and February 2012, the Company completed the exchange of registered 8.625% Senior Notes for any and all of its unregistered $400.0 million and $200.0 million aggregate principal amount of 8.625% Senior Notes, respectively. In September 2012, the Company and certain of the Company’s wholly-owned subsidiaries issued in a public offering, $300.0 million aggregate principal amount of the Company’s 7.50% Senior Notes.

The rules of the SEC require that condensed consolidating financial information be provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is full, unconditional and joint and several and where the voting interest of the subsidiary is 100% owned by the registrant. The Company is, therefore, presenting condensed consolidating financial information as of March 31, 2013 and December 31, 2012, and for the three months ended March 31,2013 and 2012 on a parent company, combined guarantor subsidiaries, combined non-guarantor subsidiaries and consolidated basis and should be read in conjunction with the consolidated financial statements. The financial information may not necessarily be indicative of results of operations, cash flows, or financial position had such guarantor subsidiaries operated as independent entities.

Investments in subsidiaries are accounted for by the respective parent company using the equity method for purposes of this presentation. Results of operations of subsidiaries are therefore reflected in the parent company’s investment accounts and earnings. The principal elimination entries set forth below eliminate investments in subsidiaries and intercompany balances and transactions. Typically in a condensed consolidating financial statement, the net income and equity of the parent company equals the net income and equity of the consolidated entity. The Company’s oil and gas properties are accounted for using the full cost method of accounting whereby impairments and DD&A are calculated and recorded on a country by country basis. However, when calculated separately on a legal entity basis, the combined totals of parent company and subsidiary impairments and DD&A can be more or less than the consolidated total as a result of differences in the properties each entity owns including amounts of costs incurred, production rates, reserve mix, future development costs, etc. Accordingly, elimination entries are required to eliminate any differences between consolidated and parent company and subsidiary company combined impairments and DD&A.

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

	March 31, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,767,668		$	144,291		$	—	$	(1,699,323	)	$	212,636
Assets of discontinued operations	18,500			—			—		—			18,500
Property and equipment, net	18,200			1,632,186			—		21,339			1,671,725
Investments in subsidiaries	(16,979		)	—			—		16,979			—
Other assets	37,692			1,883			—		(5,264		)	34,311
Total assets	$	1,825,081		$	1,778,360		$	—	$	(1,666,269	)	$	1,937,172
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	214,747		$	1,791,196		$	—	$	(1,699,323	)	$	306,620
Current liabilities of discontinued operations	14,928			—			—		—			14,928
Long-term liabilities	975,519			4,143			—		3,563			983,225
Long-term liabilities of discontinued operations	15,600			—			—		—			15,600
Shareholders’ equity (deficit)	604,287			(16,979		)	—		29,491			616,799
Total liabilities and shareholders’ equity	$	1,825,081		$	1,778,360		$	—	$	(1,666,269	)	$	1,937,172

	December 31, 2012
	Parent Company		Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,689,430	$	130,487		$	—	$	(1,613,094	)	$	206,823
Current assets held for sale	—		—			1,882		—			1,882
Property and equipment, net	23,041		1,443,064			—		21,569			1,487,674
Investments in subsidiaries	14,588		—			—		(14,588		)	—
Long-term assets held for sale	12,670		—			119,956		—			132,626
Other assets	46,913		16,928			—		(8,850		)	54,991
Total assets	$	1,786,642	$	1,590,479		$	121,838	$	(1,614,963	)	$	1,883,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	179,221	$	1,631,887		$	—	$	(1,560,853	)	$	250,255
Current liabilities associated with assets held for sale	9,880		—			38,783		—			48,663
Long-term liabilities	973,003		3,512			—		—			976,515
Long-term liabilities associated with assets held for sale	—		—			23,547		—			23,547
Shareholders’ equity (deficit)	624,538		(44,920		)	59,508		(54,110		)	585,016
Total liabilities and shareholders’ equity	$	1,786,642	$	1,590,479		$	121,838	$	(1,614,963	)	$	1,883,996

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	For The Three Months Ended March 31, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	1,561		$	110,340		$	—	$	—		$	111,901
Cost and expenses	17,118			61,090			—		230			78,438
Operating income (loss)	(15,557		)	49,250			—		(230		)	33,463
Other income (expense), net	(23,225		)	(6,265		)	—		—			(29,490		)
Income (loss) from continuing operations before income taxes	(38,782		)	42,985			—		(230		)	3,973
Income tax (expense) benefit	13,573			(15,045		)	—		23			(1,449		)
Equity in income (loss) of subsidiaries	27,940			—			—		(27,940		)	—
Net income (loss) from continuing operations	2,731			27,940			—		(28,147		)	2,524
Net income from discontinued operations, net of income taxes	23,658			—			—		—			23,658
Net income (loss)	$	26,389		$	27,940		$	—	$	(28,147	)	$	26,182

	For The Three Months Ended March 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	6,789		$	73,926		$	—		$	—		$	80,715
Cost and expenses	14,546			42,678			—			1,111			58,335
Operating income (loss)	(7,757		)	31,248			—			(1,111		)	22,380
Other income (expense), net	1,127			(7,546		)	—			—			(6,419		)
Income (loss) from continuing operations before income taxes	(6,630		)	23,702			—			(1,111		)	15,961
Income tax (expense) benefit	2,270			(8,296		)	—			741			(5,285		)
Equity in income (loss) of subsidiaries	14,153			—			—			(14,153		)	—
Net income (loss) from continuing operations	9,793			15,406			—			(14,523		)	$	10,676
Net income from discontinued operations, net of income taxes	—			—			(1,253		)	—			$	(1,253	)
Net income (loss)	$	9,793		$	15,406		$	(1,253	)	$	(14,523	)	$	9,423

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For The Three Months Ended March 31, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities - continuing operations	$	(8,924	)	$	100,106		$	—		$	—		$	91,182
Net cash provided by (used in) investing activities - continuing operations	(91,671		)	(238,759		)	—			138,469			(191,961		)
Net cash provided by (used in) financing activities - continuing operations	693			138,469			—			(138,469		)	693
Net cash provided by (used in) discontinued operations	119,637			—			(519		)	—			119,118
Net increase (decrease) in cash and cash equivalents	19,735			(184		)	(519		)	—			19,032
Cash and cash equivalents, beginning of period	51,894			201			519			—			52,614
Cash and cash equivalents, end of period	$	71,629		$	17		$	—		$	—		$	71,646

	For The Three Months Ended March 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities - continuing operations	$	30,071		$	53,607		$	—		$	—		$	83,678
Net cash provided by (used in) investing activities - continuing operations	(192,616		)	(178,270		)	—			154,206			(216,680		)
Net cash provided by (used in) financing activities - continuing operations	143,578			140,091			—			(154,206		)	129,463
Net cash used in discontinued operations	—			—			(1,004		)	—			(1,004		)
Net increase (decrease) in cash and cash equivalents	(18,967		)	15,428			(1,004		)	—			(4,543		)
Cash and cash equivalents, beginning of period	19,134			7,263			1,715			—			28,112
Cash and cash equivalents, end of period	$	167		$	22,691		$	711		$	—		$	23,569