Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]



	June 30, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	178		$	11,262		$	—		$	11,440
Accounts receivable, net	—			218,302			—			218,302
Accounts receivable - affiliates	187,496			33,709			(221,205		)	—
Inventory	—			17,942			—			17,942
Prepaid expenses	664			9,946			—			10,610
Derivative instruments	—			31,851			—			31,851
Other current assets	3			59			—			62
Total current assets	188,341			323,071			(221,205		)	290,207
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			7,488,075			—			7,488,075
Other property and equipment	—			695,592			—			695,592
Less: accumulated depreciation, depletion, amortization and impairment	—			(2,252,653		)	—			(2,252,653		)
Total property, plant and equipment, net	—			5,931,014			—			5,931,014
Investments in and advances to subsidiaries	4,545,805			—			(4,545,805		)	—
Derivative instruments	—			11,834			—			11,834
Deferred income taxes	257,652			—			(257,652		)	—
Long-term inventory	—			8,762			—			8,762
Other assets	—			19,904			—			19,904
Total assets	$	4,991,798		$	6,294,585		$	(5,024,662	)	$	6,261,721
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	12,257		$	—		$	12,257
Accounts payable - affiliates	33,709			187,496			(221,205		)	—
Revenues and production taxes payable	—			143,715			—			143,715
Accrued liabilities	—			139,766			—			139,766
Accrued interest payable	38,796			332			—			39,128
Advances from joint interest partners	—			5,816			—			5,816
Total current liabilities	72,505			489,382			(221,205		)	340,682
Long-term debt	1,941,683			418,000			—			2,359,683
Deferred income taxes	—			784,833			(257,652		)	527,181
Asset retirement obligations	—			51,059			—			51,059
Other liabilities	—			5,506			—			5,506
Total liabilities	2,014,188			1,748,780			(478,857		)	3,284,111
Stockholders’ equity
Capital contributions from affiliates	—			3,395,528			(3,395,528		)	—
Common stock, $0.01 par value: 450,000,000 shares authorized; 238,642,598 shares issued and 237,410,395 shares outstanding	2,345			—			—			2,345
Treasury stock, at cost: 1,232,203 shares	(21,401		)	—			—			(21,401		)
Additional paid-in-capital	2,362,084			8,743			(8,743		)	2,362,084
Retained earnings	634,582			1,141,534			(1,141,534		)	634,582
Total stockholders’ equity	2,977,610			4,545,805			(4,545,805		)	2,977,610
Total liabilities and stockholders’ equity	$	4,991,798		$	6,294,585		$	(5,024,662	)	$	6,261,721

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		)	—
Derivative instruments	—			—			—			—
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 STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	4,645		$	—		$	4,645
Accounts payable - affiliates	27,619			252,000			(279,619		)	—
Revenues 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



	Three Months Ended June 30, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	218,633		$	—		$	218,633
Bulk oil sales	—			8,091			—			8,091
Midstream revenues	—			15,566			—			15,566
Well services revenues	—			11,801			—			11,801
Total revenues	—			254,091			—			254,091
Operating expenses
Lease operating expenses	—			44,665			—			44,665
Midstream operating expenses	—			3,263			—			3,263
Well services operating expenses	—			8,088			—			8,088
Marketing, transportation and gathering expenses	—			12,039			—			12,039
Bulk oil purchases	—			7,980			—			7,980
Production taxes	—			18,971			—			18,971
Depreciation, depletion and amortization	—			125,291			—			125,291
Exploration expenses	—			1,667			—			1,667
Impairment	—			3,200			—			3,200
General and administrative expenses	7,534			16,014			—			23,548
Total operating expenses	7,534			241,178			—			248,712
Operating income (loss)	(7,534		)	12,913			—			5,379
Other income (expense)
Equity in earnings of subsidiaries	38,875			—			(38,875		)	—
Net gain on derivative instruments	—			50,532			—			50,532
Interest expense, net of capitalized interest	(33,006		)	(3,832		)	—			(36,838		)
Other expense	—			(166		)	—			(166		)
Total other income	5,869			46,534			(38,875		)	13,528
Income (loss) before income taxes	(1,665		)	59,447			(38,875		)	18,907
Income tax benefit (expense)	18,233			(20,572		)	—			(2,339		)
Net income	$	16,568		$	38,875		$	(38,875	)	$	16,568

Condensed Consolidating Statement of Operations



	Three Months Ended June 30, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	159,337		$	—	$	159,337
Midstream revenues	—			6,910			—		6,910
Well services revenues	—			12,833			—		12,833
Total revenues	—			179,080			—		179,080
Operating expenses
Lease operating expenses	—			31,523			—		31,523
Midstream operating expenses	—			1,740			—		1,740
Well services operating expenses	—			7,135			—		7,135
Marketing, transportation and gathering expenses	—			6,491			—		6,491
Production taxes	—			14,367			—		14,367
Depreciation, depletion and amortization	—			122,488			—		122,488
Exploration expenses	—			340			—		340
Impairment	—			23			—		23
General and administrative expenses	6,395			15,481			—		21,876
Total operating expenses	6,395			199,588			—		205,983
Loss on sale of properties	—			(1,311		)	—		(1,311		)
Operating loss	(6,395		)	(21,819		)	—		(28,214		)
Other income (expense)
Equity in loss of subsidiaries	(71,987		)	—			71,987		—
Net loss on derivative instruments	—			(90,846		)	—		(90,846		)
Interest expense, net of capitalized interest	(33,190		)	(1,789		)	—		(34,979		)
Gain on extinguishment of debt	11,642			—			—		11,642
Other expense	—			(32		)	—		(32		)
Total other expense	(93,535		)	(92,667		)	71,987		(114,215		)
Loss before income taxes	(99,930		)	(114,486		)	71,987		(142,429		)
Income tax benefit	9,999			42,499			—		52,498
Net loss	$	(89,931	)	$	(71,987	)	$	71,987	$	(89,931	)

Condensed Consolidating Statement of Operations



	Six Months Ended June 30, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	455,885		$	—		$	455,885
Bulk oil sales	—			35,722			—			35,722
Midstream revenues	—			30,172			—			30,172
Well services revenues	—			17,428			—			17,428
Total revenues	—			539,207			—			539,207
Operating expenses
Lease operating expenses	—			88,537			—			88,537
Midstream operating expenses	—			6,590			—			6,590
Well services operating expenses	—			11,990			—			11,990
Marketing, transportation and gathering expenses	—			22,990			—			22,990
Bulk oil purchases	—			35,982			—			35,982
Production taxes	—			39,270			—			39,270
Depreciation, depletion and amortization	—			251,957			—			251,957
Exploration expenses	—			3,156			—			3,156
Impairment	—			5,882			—			5,882
General and administrative expenses	14,599			32,783			—			47,382
Total operating expenses	14,599			499,137			—			513,736
Operating income (loss)	(14,599		)	40,070			—			25,471
Other income (expense)
Equity in earnings of subsidiaries	87,978			—			(87,978		)	—
Net gain on derivative instruments	—			106,607			—			106,607
Interest expense, net of capitalized interest	(65,857		)	(7,302		)	—			(73,159		)
Other expense	—			(150		)	—			(150		)
Total other income	22,121			99,155			(87,978		)	33,298
Income before income taxes	7,522			139,225			(87,978		)	58,769
Income tax benefit (expense)	32,871			(51,247		)	—			(18,376		)
Net income	$	40,393		$	87,978		$	(87,978	)	$	40,393

Condensed Consolidating Statement of Operations



	Six Months Ended June 30, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	276,652		$	—	$	276,652
Midstream revenues	—			13,893			—		13,893
Well services revenues	—			18,818			—		18,818
Total revenues	—			309,363			—		309,363
Operating expenses
Lease operating expenses	—			62,587			—		62,587
Midstream operating expenses	—			3,478			—		3,478
Well services operating expenses	—			9,786			—		9,786
Marketing, transportation and gathering expenses	—			15,043			—		15,043
Production taxes	—			25,120			—		25,120
Depreciation, depletion and amortization	—			244,937			—		244,937
Exploration expenses	—			703			—		703
Impairment	—			3,585			—		3,585
General and administrative expenses	13,846			32,396			—		46,242
Total operating expenses	13,846			397,635			—		411,481
Loss on sale of properties	—			(1,311		)	—		(1,311		)
Operating loss	(13,846		)	(89,583		)	—		(103,429		)
Other income (expense)
Equity in loss of subsidiaries	(109,314		)	—			109,314		—
Net loss on derivative instruments	—			(76,471		)	—		(76,471		)
Interest expense, net of capitalized interest	(68,022		)	(5,696		)	—		(73,718		)
Gain on extinguishment of debt	18,658			—			—		18,658
Other income	43			404			—		447
Total other expense	(158,635		)	(81,763		)	109,314		(131,084		)
Loss before income taxes	(172,481		)	(171,346		)	109,314		(234,513		)
Income tax benefit	18,095			62,032			—		80,127
Net loss	$	(154,386	)	$	(109,314	)	$	109,314	$	(154,386	)

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income	$	40,393		$	87,978		$	(87,978	)	$	40,393
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(87,978		)	—			87,978			—
Depreciation, depletion and amortization	—			251,957			—			251,957
Impairment	—			5,882			—			5,882
Deferred income taxes	(32,871		)	51,247			—			18,376
Derivative instruments	—			(106,607		)	—			(106,607		)
Stock-based compensation expenses	13,395			428			—			13,823
Deferred financing costs amortization and other	7,470			1,401			—			8,871
Working capital and other changes:
Change in accounts receivable	64,504			(19,833		)	(58,414		)	(13,743		)
Change in inventory	—			(1,007		)	—			(1,007		)
Change in prepaid expenses	(389		)	125			—			(264		)
Change in other current assets	(3		)	283			—			280
Change in long-term inventory and other assets	—			(8,768		)	—			(8,768		)
Change in accounts payable, interest payable and accrued liabilities	6,185			(53,441		)	58,414			11,158
Change in other current liabilities	—			(10,490		)	—			(10,490		)
Net cash provided by operating activities	10,706			199,155			—			209,861
Cash flows from investing activities:
Capital expenditures	—			(252,461		)	—			(252,461		)
Proceeds from sale of properties	—			4,000			—			4,000
Derivative settlements	—			(8,899		)	—			(8,899		)
Advances from joint interest partners	—			(1,781		)	—			(1,781		)
Net cash used in investing activities	—			(259,141		)	—			(259,141		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			484,000			—			484,000
Principal payments on revolving credit facility	—			(429,000		)	—			(429,000		)
Purchases of treasury stock	(5,451		)	—			—			(5,451		)
Investment in / capital contributions from subsidiaries	(5,188		)	5,188			—			—
Other	(55		)	—			—			(55		)
Net cash provided by (used in) financing activities	(10,694		)	60,188			—			49,494
Increase in cash and cash equivalents	12			202			—			214
Cash and cash equivalents at beginning of period	166			11,060			—			11,226
Cash and cash equivalents at end of period	$	178		$	11,262		$	—		$	11,440

Condensed Consolidating Statement of Cash Flows



	Six Months Ended June 30, 2016
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net loss	$	(154,386	)	$	(109,314	)	$	109,314		$	(154,386	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity in loss of subsidiaries	109,314			—			(109,314		)	—
Depreciation, depletion and amortization	—			244,937			—			244,937
Gain on extinguishment of debt	(18,658		)	—			—			(18,658		)
Loss on sale of properties	—			1,311			—			1,311
Impairment	—			3,585			—			3,585
Deferred income taxes	(18,095		)	(62,032		)	—			(80,127		)
Derivative instruments	—			76,471			—			76,471
Stock-based compensation expenses	12,624			355			—			12,979
Deferred financing costs amortization and other	3,360			3,192			—			6,552
Working capital and other changes:
Change in accounts receivable	(85		)	53,068			(48,686		)	4,297
Change in inventory	—			2,054			—			2,054
Change in prepaid expenses	278			1,145			—			1,423
Change in other current assets	—			(114		)	—			(114		)
Change in long-term inventory and other assets	100			—			—			100
Change in accounts payable, interest payable and accrued liabilities	(50,462		)	(16,258		)	48,686			(18,034		)
Change in other current liabilities	—			9,001			—			9,001
Change in other liabilities	—			10			—			10
Net cash provided by (used in) operating activities	(116,010		)	207,411			—			91,401
Cash flows from investing activities:
Capital expenditures	—			(231,341		)	—			(231,341		)
Proceeds from sale of properties	—			11,679			—			11,679
Costs related to sale of properties	—			(310		)	—			(310		)
Derivative settlements	—			103,790			—			103,790
Advances from joint interest partners	—			769			—			769
Net cash used in investing activities	—			(115,413		)	—			(115,413		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			359,000			—			359,000
Principal payments on revolving credit facility	—			(462,000		)	—			(462,000		)
Repurchase of senior unsecured notes	(56,925		)	—			—			(56,925		)
Deferred financing costs	—			(751		)	—			(751		)
Proceeds from sale of common stock	182,953			—			—			182,953
Purchases of treasury stock	(1,520		)	—			—			(1,520		)
Investment in / capital contributions from subsidiaries	(9,190		)	9,190			—			—
Net cash provided by (used in) financing activities	115,318			(94,561		)	—			20,757
Decrease in cash and cash equivalents	(692		)	(2,563		)	—			(3,255		)
Cash and cash equivalents at beginning of period	777			8,953			—			9,730
Cash and cash equivalents at end of period	$	85		$	6,390		$	—		$	6,475