Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

12. 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 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)

	June 30, 2015
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Total current assets		$2,404,178		$79,119		$—		($2,281,833	)		$201,464
Total property and equipment, net	31,995		2,757,601		3,028		31,821			2,824,445
Investment in subsidiaries	240,306		—		—		(240,306		)	—
Other assets	142,362		—		—		(90,521		)	51,841
Total Assets		$2,818,841		$2,836,720		$3,028		($2,580,839	)		$3,077,750
Liabilities and Shareholders’ Equity
Current liabilities		$173,022		$2,449,862		$3,028		($2,284,846	)		$341,066
Long-term liabilities	1,379,611		146,552		—		(69,492		)	1,456,671
Total shareholders’ equity	1,266,208		240,306		—		(226,501		)	1,280,013
Total Liabilities and Shareholders’ Equity		$2,818,841		$2,836,720		$3,028		($2,580,839	)		$3,077,750

	December 31, 2014
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Total current assets		$2,380,445		$245,051		$111		($2,346,986	)		$278,621
Total property and equipment, net	613		2,562,029		39,939		26,672			2,629,253
Investment in subsidiaries	233,173		—		—		(233,173		)	—
Other assets	140,774		—		—		(67,172		)	73,602
Total Assets		$2,755,005		$2,807,080		$40,050		($2,620,659	)		$2,981,476
Liabilities and Shareholders’ Equity
Current liabilities		$296,686		$2,434,649		$39,955		($2,346,986	)		$424,304
Long-term liabilities	1,364,793		139,353		—		(50,415		)	1,453,731
Total shareholders’ equity	1,093,526		233,078		95		(223,258		)	1,103,441
Total Liabilities and Shareholders’ Equity		$2,755,005		$2,807,080		$40,050		($2,620,659	)		$2,981,476

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(In thousands)

(Unaudited)

	Three Months Ended June 30, 2015
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenues		$660			$122,891			($57	)		$—			$123,494
Total costs and expenses	96,843			106,409			(216		)	(6,469		)	196,567
Income (loss) from continuing operations before      income taxes	(96,183		)	16,482			159			6,469			(73,073		)
Income tax (expense) benefit	33,664			(5,769		)	(55		)	(1,737		)	26,103
Equity in income of subsidiaries	10,817			—			—			(10,817		)	—
Income (loss) from continuing operations	(51,702		)	10,713			104			(6,085		)	(46,970		)
Income from discontinued operations, net of income taxes	838			—			—			—			838
Net income (loss)		($50,864	)		$10,713			$104			($6,085	)		($46,132	)

	Three Months Ended June 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$1,206			$192,269			$—		$—			$193,475
Total costs and expenses	78,089			109,088			—		1,011			188,188
Income (loss) from continuing operations before      income taxes	(76,883		)	83,181			—		(1,011		)	5,287
Income tax (expense) benefit	26,908			(29,381		)	—		400			(2,073		)
Equity in income of subsidiaries	53,800			—			—		(53,800		)	—
Income from continuing operations	3,825			53,800			—		(54,411		)	3,214
Loss from discontinued operations, net of income taxes	(895		)	—			—		—			(895		)
Net income		$2,930			$53,800			$—		($54,411	)		$2,319

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(In thousands)

(Unaudited)

	Six Months Ended June 30, 2015
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$1,250			$222,294			$—		$—			$223,544
Total costs and expenses	123,511			211,321			—		(5,301		)	329,531
Income (loss) from continuing operations before       income taxes	(122,261		)	10,973			—		5,301			(105,987		)
Income tax (expense) benefit	42,792			(3,841		)	—		(1,410		)	37,541
Equity in income of subsidiaries	7,132			—			—		(7,132		)	—
Income (loss) from continuing operations	(72,337		)	7,132			—		(3,241		)	(68,446		)
Income from discontinued operations, net of income taxes	1,104			—			—		—			1,104
Net income (loss)		($71,233	)		$7,132			$—		($3,241	)		($67,342	)

	Six Months Ended June 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenues		$2,772			$347,915			$—		$—			$350,687
Total costs and expenses	133,640			198,997			—		2,209			334,846
Income (loss) from continuing operations before income taxes	(130,868		)	148,918			—		(2,209		)	15,841
Income tax (expense) benefit	45,803			(52,121		)	—		312			(6,006		)
Equity in income of subsidiaries	96,797			—			—		(96,797		)	—
Income from continuing operations	11,732			96,797			—		(98,694		)	9,835
Loss from discontinued operations, net of income taxes	(1,540		)	—			—		—			(1,540		)
Net income		$10,192			$96,797			$—		($98,694	)		$8,295

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30, 2015
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations		($29,397	)		$195,049			$—		$—			$165,652
Net cash used in investing activities from      continuing operations	(337,518		)	(342,695		)	—		297,646			(382,567		)
Net cash provided by financing activities from continuing operations	360,238			147,646			—		(297,646		)	210,238
Net cash used in discontinued operations	(2,157		)	—			—		—			(2,157		)
Net decrease in cash and cash equivalents	(8,834		)	—			—		—			(8,834		)
Cash and cash equivalents, beginning of period	10,838			—			—		—			10,838
Cash and cash equivalents, end of period		$2,004			$—			$—		$—			$2,004

	Six Months Ended June 30, 2014
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities from      continuing operations		($122,961	)		$318,607			$—			$—			$195,646
Net cash used in investing activities from continuing operations	(146,432		)	(464,288		)	(21,554		)	167,235			(465,039		)
Net cash provided by financing activities from      continuing operations	126,158			145,681			21,554			(167,235		)	126,158
Net cash used in discontinued operations	(5,582		)	—			—			—			(5,582		)
Net decrease in cash and cash equivalents	(148,817		)	—			—			—			(148,817		)
Cash and cash equivalents, beginning of period	157,439			—			—			—			157,439
Cash and cash equivalents, end of period		$8,622			$—			$—			$—			$8,622