Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

10. Condensed Consolidating Financial Information

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 September 30, 2014 and December 31, 2013, and for the three and nine months ended September 30,2014 and 2013 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

(in thousands)

(Unaudited)

	September 30, 2014
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Total current assets		$1,884,949		$255,806		$—			($1,995,596	)		$145,159
Total property and equipment, net	21,518		2,179,872		27,091			26,666			2,255,147
Investment in subsidiaries	209,557		—		—			(209,557		)	—
Other assets	116,135		—		—			(75,607		)	40,528
Total Assets		$2,232,159		$2,435,678		$27,091			($2,254,094	)		$2,440,834
Liabilities and Shareholders’ Equity
Current liabilities		$245,703		$2,096,326		$27,094			($1,995,597	)		$373,526
Long-term liabilities	1,037,586		129,792		—			(61,949		)	1,105,429
Total shareholders’ equity	948,870		209,560		(3		)	(196,548		)	961,879
Total Liabilities and Shareholders’ Equity		$2,232,159		$2,435,678		$27,091			($2,254,094	)		$2,440,834

	December 31, 2013
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Total current assets		$1,820,069		$168,718		$—			($1,709,026	)		$279,761
Total property and equipment, net	2,797		1,768,553		2,058			20,807			1,794,215
Investment in subsidiaries	61,619		—		—			(61,619		)	—
Other assets	69,686		—		—			(32,902		)	36,784
Total Assets		$1,954,171		$1,937,271		$2,058			($1,782,740	)		$2,110,760
Liabilities and Shareholders’ Equity
Current liabilities		$201,486		$1,828,314		$2,061			($1,709,026	)		$322,835
Long-term liabilities	922,571		47,335		—			(23,585		)	946,321
Total shareholders’ equity	830,114		61,622		(3		)	(50,129		)	841,604
Total Liabilities and Shareholders’ Equity		$1,954,171		$1,937,271		$2,058			($1,782,740	)		$2,110,760

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in thousands)

(Unaudited)

	Three Months Ended September 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$924			$195,301			$—		$—			$196,225
Total costs and expenses	(42,829		)	116,622			—		(8,069		)	65,724
Income from continuing operations before income taxes	43,753			78,679			—		8,069			130,501
Income tax expense	(15,312		)	(27,538		)	—		(4,654		)	(47,504		)
Equity in income of subsidiaries	51,141			—			—		(51,141		)	—
Income from continuing operations	79,582			51,141			—		(47,726		)	82,997
Income from discontinued operations, net of income taxes	792			—			—		—			792
Net income		$80,374			$51,141			$—		($47,726	)		$83,789

	Three Months Ended September 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$2,428			$141,901			$—		$—			$144,329
Total costs and expenses	57,308			79,358			—		92			136,758
Income (loss) from continuing operations before income taxes	(54,880		)	62,543			—		(92		)	7,571
Income tax (expense) benefit	19,208			(21,784		)	—		717			(1,859		)
Equity in income of subsidiaries	40,759			—			—		(40,759		)	—
Income from continuing operations	5,087			40,759			—		(40,134		)	5,712
Loss from discontinued operations, net of income taxes	(1,191		)	—			—		—			(1,191		)
Net income		$3,896			$40,759			$—		($40,134	)		$4,521

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in thousands)

(Unaudited)

	Nine Months Ended September 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$3,696			$543,216			$—		$—			$546,912
Total costs and expenses	90,811			315,619			—		(5,860		)	400,570
Income (loss) from continuing operations before income taxes	(87,115		)	227,597			—		5,860			146,342
Income tax (expense) benefit	30,491			(79,659		)	—		(4,342		)	(53,510		)
Equity in income of subsidiaries	147,938			—			—		(147,938		)	—
Income from continuing operations	91,314			147,938			—		(146,420		)	92,832
Loss from discontinued operations, net of income taxes	(748		)	—			—		—			(748		)
Net income		$90,566			$147,938			$—		($146,420	)		$92,084

	Nine Months Ended September 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$6,075			$384,379			$—		$—			$390,454
Total costs and expenses	99,422			220,967			—		139			320,528
Income (loss) from continuing operations before income taxes	(93,347		)	163,412			—		(139		)	69,926
Income tax (expense) benefit	32,671			(57,194		)	—		(1,330		)	(25,853		)
Equity in income of subsidiaries	106,218			—			—		(106,218		)	—
Income from continuing operations	45,542			106,218			—		(107,687		)	44,073
Income from discontinued operations, net of income taxes	23,599			—			—		—			23,599
Net income		$69,141			$106,218			$—		($107,687	)		$67,672

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

	Nine Months Ended September 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations		($132,889	)		$521,576			$—			$—			$388,687
Net cash used in investing activities from continuing operations	(132,605		)	(632,160		)	(24,717		)	135,301			(654,181		)
Net cash provided by financing activities from continuing operations	123,151			110,584			24,717			(135,301		)	123,151
Net cash used in discontinued operations	(7,935		)	—			—			—			(7,935		)
Net decrease in cash and cash equivalents	(150,278		)	—			—			—			(150,278		)
Cash and cash equivalents, beginning of period	157,439			—			—			—			157,439
Cash and cash equivalents, end of period		$7,161			$—			$—			$—			$7,161

	Nine Months Ended September 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations		($22,222	)		$332,475			$—			$—			$310,253
Net cash used in investing activities from continuing operations	(170,725		)	(601,936		)	(1,624		)	270,884			(503,401		)
Net cash provided by financing activities from continuing operations	17,439			269,260			1,624			(270,884		)	17,439
Net cash provided by (used in) discontinued operations	129,342			—			(519		)	—			128,823
Net decrease in cash and cash equivalents	(46,166		)	(201		)	(519		)	—			(46,886		)
Cash and cash equivalents, beginning of period	51,894			201			519			—			52,614
Cash and cash equivalents, end of period		$5,728			$—			$—			$—			$5,728