Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

	March 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	177		$	13,608		$	—		$	13,785
Accounts receivable, net	—			226,427			—			226,427
Accounts receivable – affiliates	200,770			33,093			(233,863		)	—
Inventory	—			14,327			—			14,327
Prepaid expenses	334			6,842			—			7,176
Derivative instruments	—			3,026			—			3,026
Other current assets	2			4,450			—			4,452
Total current assets	201,283			301,773			(233,863		)	269,193
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			7,390,299			—			7,390,299
Other property and equipment	—			632,318			—			632,318
Less: accumulated depreciation, depletion, amortization and impairment	—			(2,126,136		)	—			(2,126,136		)
Total property, plant and equipment, net	—			5,896,481			—			5,896,481
Investments in and advances to subsidiaries	4,503,650			—			(4,503,650		)	—
Derivative instruments	—			3,815			—			3,815
Deferred income taxes	239,419			—			(239,419		)	—
Other assets	—			20,139			—			20,139
Total assets	$	4,944,352		$	6,222,208		$	(4,976,932	)	$	6,189,628
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	—		$	8,837		$	—		$	8,837
Accounts payable – affiliates	33,093			200,770			(233,863		)	—
Revenues and production taxes payable	—			160,265			—			160,265
Accrued liabilities	34			128,207			—			128,241
Accrued interest payable	19,872			396			—			20,268
Derivative instruments	—			14,627			—			14,627
Advances from joint interest partners	—			6,838			—			6,838
Other current liabilities	—			13,435			—			13,435
Total current liabilities	52,999			533,375			(233,863		)	352,511
Long-term debt	1,937,879			368,000			—			2,305,879
Deferred income taxes	—			764,261			(239,419		)	524,842
Asset retirement obligations	—			50,088			—			50,088
Other liabilities	—			2,834			—			2,834
Total liabilities	1,990,878			1,718,558			(473,282		)	3,236,154
Stockholders’ equity
Capital contributions from affiliates	—			3,392,248			(3,392,248		)	—
Common stock, $0.01 par value: 450,000,000 shares authorized; 238,691,038 shares issued and 237,461,470 shares outstanding	2,344			—			—			2,344
Treasury stock, at cost: 1,229,568 shares	(21,369		)	—			—			(21,369		)
Additional paid-in-capital	2,354,485			8,743			(8,743		)	2,354,485
Retained earnings	618,014			1,102,659			(1,102,659		)	618,014
Total stockholders’ equity	2,953,474			4,503,650			(4,503,650		)	2,953,474
Total liabilities and stockholders’ equity	$	4,944,352		$	6,222,208		$	(4,976,932	)	$	6,189,628

Condensed Consolidating Balance Sheet

	December 31, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	166		$	11,060		$	—		$	11,226
Accounts receivable, net	—			204,335			—			204,335
Accounts receivable – affiliates	252,000			27,619			(279,619		)	—
Inventory	—			10,648			—			10,648
Prepaid expenses	275			7,348			—			7,623
Derivative instruments	—			362			—			362
Other current assets	—			4,355			—			4,355
Total current assets	252,441			265,727			(279,619		)	238,549
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			7,296,568			—			7,296,568
Other property and equipment	—			618,790			—			618,790
Less: accumulated depreciation, depletion, amortization and impairment	—			(1,995,791		)	—			(1,995,791		)
Total property, plant and equipment, net	—			5,919,567			—			5,919,567
Investments in and advances to subsidiaries	4,451,192			—			(4,451,192		)	—
Deferred income taxes	220,058			—			(220,058		)	—
Other assets	—			20,516			—			20,516
Total assets	$	4,923,691		$	6,205,810		$	(4,950,869	)	$	6,178,632
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	—		$	4,645		$	—		$	4,645
Accounts payable – affiliates	27,619			252,000			(279,619		)	—
Revenue and production taxes payable	—			139,737			—			139,737
Accrued liabilities	12			119,161			—			119,173
Accrued interest payable	38,689			315			—			39,004
Derivative instruments	—			60,469			—			60,469
Advances from joint interest partners	—			7,597			—			7,597
Other current liabilities	—			10,490			—			10,490
Total current liabilities	66,320			594,414			(279,619		)	381,115
Long-term debt	1,934,214			363,000			—			2,297,214
Deferred income taxes	—			733,587			(220,058		)	513,529
Asset retirement obligations	—			48,985			—			48,985
Derivative instruments	—			11,714			—			11,714
Other liabilities	—			2,918			—			2,918
Total liabilities	2,000,534			1,754,618			(499,677		)	3,255,475
Stockholders’ equity
Capital contributions from affiliates	—			3,388,893			(3,388,893		)	—
Common stock, $0.01 par value: 450,000,000 shares authorized; 237,201,064 shares issued and 236,344,172 shares outstanding	2,331			—			—			2,331
Treasury stock, at cost: 856,892 shares	(15,950		)	—			—			(15,950		)
Additional paid-in-capital	2,345,271			8,743			(8,743		)	2,345,271
Retained earnings	591,505			1,053,556			(1,053,556		)	591,505
Total stockholders’ equity	2,923,157			4,451,192			(4,451,192		)	2,923,157
Total liabilities and stockholders’ equity	$	4,923,691		$	6,205,810		$	(4,950,869	)	$	6,178,632

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations

	Three Months Ended March 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	237,252		$	—		$	237,252
Bulk oil sales	—			27,631			—			27,631
Midstream revenues	—			14,606			—			14,606
Well services revenues	—			5,627			—			5,627
Total revenues	—			285,116			—			285,116
Operating expenses
Lease operating expenses	—			43,872			—			43,872
Midstream operating expenses	—			3,327			—			3,327
Well services operating expenses	—			3,902			—			3,902
Marketing, transportation and gathering expenses	—			10,951			—			10,951
Bulk oil purchases	—			28,002			—			28,002
Production taxes	—			20,299			—			20,299
Depreciation, depletion and amortization	—			126,666			—			126,666
Exploration expenses	—			1,489			—			1,489
Impairment	—			2,682			—			2,682
General and administrative expenses	7,065			16,769			—			23,834
Total operating expenses	7,065			257,959			—			265,024
Operating income (loss)	(7,065		)	27,157			—			20,092
Other income (expense)
Equity in earnings of subsidiaries	49,103			—			(49,103		)	—
Net gain on derivative instruments	—			56,075			—			56,075
Interest expense, net of capitalized interest	(32,851		)	(3,470		)	—			(36,321		)
Other income	—			16			—			16
Total other income (expense)	16,252			52,621			(49,103		)	19,770
Income before income taxes	9,187			79,778			(49,103		)	39,862
Income tax benefit (expense)	14,638			(30,675		)	—			(16,037		)
Net income	$	23,825		$	49,103		$	(49,103	)	$	23,825

Condensed Consolidating Statement of Operations

	Three Months Ended March 31, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	117,315		$	—	$	117,315
Midstream revenues	—			6,983			—		6,983
Well services revenues	—			5,985			—		5,985
Total revenues	—			130,283			—		130,283
Operating expenses
Lease operating expenses	—			31,064			—		31,064
Midstream operating expenses	—			1,738			—		1,738
Well services operating expenses	—			2,651			—		2,651
Marketing, transportation and gathering expenses	—			8,552			—		8,552
Production taxes	—			10,753			—		10,753
Depreciation, depletion and amortization	—			122,449			—		122,449
Exploration expenses	—			363			—		363
Impairment	—			3,562			—		3,562
General and administrative expenses	7,451			16,915			—		24,366
Total operating expenses	7,451			198,047			—		205,498
Operating loss	(7,451		)	(67,764		)	—		(75,215		)
Other income (expense)
Equity in loss of subsidiaries	(37,327		)	—			37,327		—
Net gain on derivative instruments	—			14,375			—		14,375
Interest expense, net of capitalized interest	(34,832		)	(3,907		)	—		(38,739		)
Gain on extinguishment of debt	7,016			—			—		7,016
Other income	43			436			—		479
Total other income (expense)	(65,100		)	10,904			37,327		(16,869		)
Loss before income taxes	(72,551		)	(56,860		)	37,327		(92,084		)
Income tax benefit	8,096			19,533			—		27,629
Net loss	$	(64,455	)	$	(37,327	)	$	37,327	$	(64,455	)

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

	Three Months Ended March 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income	$	23,825		$	49,103		$	(49,103	)	$	23,825
Adjustments to reconcile net income to cash provided by operating activities:
Equity in loss of subsidiaries	(49,103		)	—			49,103			—
Depreciation, depletion and amortization	—			126,666			—			126,666
Impairment	—			2,682			—			2,682
Deferred income taxes	(14,638		)	30,675			—			16,037
Derivative instruments	—			(56,075		)	—			(56,075		)
Stock-based compensation expenses	6,498			210			—			6,708
Deferred financing costs amortization and other	3,665			1,275			—			4,940
Working capital and other changes:
Change in accounts receivable	51,230			(27,952		)	(45,756		)	(22,478		)
Change in inventory	—			(3,679		)	—			(3,679		)
Change in prepaid expenses	(59		)	341			—			282
Change in other current assets	(2		)	(108		)	—			(110		)
Change in other assets	—			(4		)	—			(4		)
Change in accounts payable, interest payable and accrued liabilities	(13,321		)	(26,375		)	45,756			6,060
Change in other current liabilities	—			2,945			—			2,945
Net cash provided by operating activities	8,095			99,704			—			107,799
Cash flows from investing activities:
Capital expenditures	—			(96,047		)	—			(96,047		)
Derivative settlements	—			(7,960		)	—			(7,960		)
Advances from joint interest partners	—			(759		)	—			(759		)
Net cash used in investing activities	—			(104,766		)	—			(104,766		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			246,000			—			246,000
Principal payments on revolving credit facility	—			(241,000		)	—			(241,000		)
Purchases of treasury stock	(5,419		)	—			—			(5,419		)
Investment in / capital contributions from subsidiaries	(2,610		)	2,610			—			—
Other	(55		)	—			—			(55		)
Net cash provided by (used in) financing activities	(8,084		)	7,610			—			(474		)
Increase in cash and cash equivalents	11			2,548			—			2,559
Cash and cash equivalents at beginning of period	166			11,060			—			11,226
Cash and cash equivalents at end of period	$	177		$	13,608		$	—		$	13,785

Condensed Consolidating Statement of Cash Flows

	Three Months Ended March 31, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net loss	$	(64,455	)	$	(37,327	)	$	37,327		$	(64,455	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	37,327			—			(37,327		)	—
Depreciation, depletion and amortization	—			122,449			—			122,449
Gain on extinguishment of debt	(7,016		)	—			—			(7,016		)
Impairment	—			3,562			—			3,562
Deferred income taxes	(8,096		)	(19,533		)	—			(27,629		)
Derivative instruments	—			(14,375		)	—			(14,375		)
Stock-based compensation expenses	6,547			183			—			6,730
Deferred financing costs amortization and other	1,701			3,365			—			5,066
Working capital and other changes:
Change in accounts receivable	(85		)	96,353			(97,263		)	(995		)
Change in inventory	—			349			—			349
Change in prepaid expenses	139			102			—			241
Change in other current assets	—			4			—			4
Change in other assets	77			—			—			77
Change in accounts payable, interest payable and accrued liabilities	(122,242		)	(39,077		)	97,263			(64,056		)
Change in other current liabilities	—			(6,000		)	—			(6,000		)
Change in other liabilities	—			(3		)	—			(3		)
Net cash provided by (used in) operating activities	(156,103		)	110,052			—			(46,051		)
Cash flows from investing activities:
Capital expenditures	—			(103,411		)	—			(103,411		)
Derivative settlements	—			73,313			—			73,313
Advances from joint interest partners	—			(257		)	—			(257		)
Net cash used in investing activities	—			(30,355		)	—			(30,355		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			214,000			—			214,000
Principal payments on revolving credit facility	—			(287,000		)	—			(287,000		)
Repurchase of senior unsecured notes	(22,308		)	—			—			(22,308		)
Deferred financing costs	—			(751		)	—			(751		)
Proceeds from sale of common stock	183,164			—			—			183,164
Purchases of treasury stock	(1,032		)	—			—			(1,032		)
Investment in / capital contributions from subsidiaries	(4,408		)	4,408			—			—
Net cash provided by (used in) financing activities	155,416			(69,343		)	—			86,073
Increase (decrease) in cash and cash equivalents	(687		)	10,354			—			9,667
Cash and cash equivalents at beginning of period	777			8,953			—			9,730
Cash and cash equivalents at end of period	$	90		$	19,307		$	—		$	19,397