XML 29 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
6 Months Ended
Jun. 30, 2017
CONDENSED CONSOLIDATING FINANCIAL INFORMATION  
CONSOLIDATING CONDENSED FINANCIAL INFORMATION

 

NOTE 12        CONDENSED CONSOLIDATING FINANCIAL INFORMATION

 

      Our Credit Facilities and Senior Notes (Note 5 - Debt) are guaranteed both fully and unconditionally and jointly and severally by our material wholly owned subsidiaries (Guarantor Subsidiaries).  Certain of our subsidiaries do not guarantee our Credit Facilities and Senior Notes (Non-Guarantor Subsidiaries).  The following condensed consolidating balance sheets at June 30, 2017 and December 31, 2016, condensed consolidating statements of operations for the three and six months ended June 30, 2017 and 2016 and condensed consolidating statements of cash flows for the six months ended June 30, 2017 and 2016 reflect the condensed consolidating financial information of our parent company, CRC (Parent), our combined Guarantor Subsidiaries, our combined Non-Guarantor Subsidiaries and the consolidation and elimination entries necessary to arrive at the information for CRC on a consolidated basis.

 

The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities.

 

Condensed Consolidating Balance Sheet

 

As of June 30, 2017

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, except share data)

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1

 

 

$

6

 

 

$

2

 

 

$

—

 

 

$

9

 

Trade receivables

 

—

 

 

193

 

 

—

 

 

—

 

 

193

 

Inventories

 

—

 

 

57

 

 

—

 

 

—

 

 

57

 

Other current assets, net

 

8

 

 

119

 

 

2

 

 

(1

)

 

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

9

 

 

375

 

 

4

 

 

(1

)

 

387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

34

 

 

20,947

 

 

64

 

 

—

 

 

21,045

 

Accumulated depreciation, depletion and amortization

 

(10

)

 

(15,280

)

 

(17

)

 

—

 

 

(15,307

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total property, plant and equipment

 

24

 

 

5,667

 

 

47

 

 

—

 

 

5,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS IN CONSOLIDATED ENTITIES

 

5,977

 

 

562

 

 

—

 

 

(6,539

)

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

—

 

 

27

 

 

2

 

 

—

 

 

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,010

 

 

$

6,631

 

 

$

53

 

 

$

(6,540

)

 

$

6,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

100

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

100

 

Accounts payable

 

(2

)

 

245

 

 

—

 

 

—

 

 

243

 

Accrued liabilities

 

77

 

 

188

 

 

—

 

 

(1

)

 

264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

175

 

 

433

 

 

—

 

 

(1

)

 

607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT - PRINCIPAL AMOUNT

 

5,069

 

 

—

 

 

—

 

 

—

 

 

5,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED GAIN AND ISSUANCE COSTS, NET

 

369

 

 

—

 

 

—

 

 

—

 

 

369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER LONG-TERM LIABILITIES

 

137

 

 

462

 

 

1

 

 

—

 

 

600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMOUNTS DUE TO (FROM) AFFILIATES

 

799

 

 

(799

)

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Common stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Additional paid-in capital

 

4,871

 

 

14,432

 

 

51

 

 

(14,483

)

 

4,871

 

Accumulated deficit

 

(5,399

)

 

(7,855

)

 

(47

)

 

7,902

 

 

(5,399

)

Accumulated other comprehensive loss

 

(11

)

 

(42

)

 

—

 

 

42

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity attributable to common stock

 

(539

)

 

6,535

 

 

4

 

 

(6,539

)

 

(539

)

Noncontrolling interest

 

—

 

 

—

 

 

48

 

 

—

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

(539

)

 

6,535

 

 

52

 

 

(6,539

)

 

(491

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

6,010

 

 

$

6,631

 

 

$

53

 

 

$

(6,540

)

 

$

6,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Balance Sheet

 

As of December 31, 2016

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, except share data)

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

—

 

 

$

12

 

 

$

—

 

 

$

—

 

 

$

12

 

Trade receivables

 

—

 

 

232

 

 

—

 

 

—

 

 

232

 

Inventories

 

—

 

 

58

 

 

—

 

 

—

 

 

58

 

Other current assets, net

 

7

 

 

116

 

 

—

 

 

—

 

 

123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

7

 

 

418

 

 

—

 

 

—

 

 

425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

33

 

 

20,865

 

 

17

 

 

—

 

 

20,915

 

Accumulated depreciation, depletion and amortization

 

(8

)

 

(15,009

)

 

(13

)

 

—

 

 

(15,030

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total property, plant and equipment

 

25

 

 

5,856

 

 

4

 

 

—

 

 

5,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS IN CONSOLIDATED ENTITIES

 

5,713

 

 

537

 

 

—

 

 

(6,250

)

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

—

 

 

44

 

 

—

 

 

—

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,745

 

 

$

6,855

 

 

$

4

 

 

$

(6,250

)

 

$

6,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

100

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

100

 

Accounts payable

 

(1

)

 

220

 

 

—

 

 

—

 

 

219

 

Accrued liabilities

 

122

 

 

285

 

 

—

 

 

—

 

 

407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

221

 

 

505

 

 

—

 

 

—

 

 

726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT - PRINCIPAL AMOUNT

 

5,168

 

 

—

 

 

—

 

 

—

 

 

5,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED GAIN AND ISSUANCE COSTS, NET

 

397

 

 

—

 

 

—

 

 

—

 

 

397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER LONG-TERM LIABILITIES

 

132

 

 

487

 

 

1

 

 

—

 

 

620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMOUNTS DUE TO (FROM) AFFILIATES

 

384

 

 

(384

)

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Common stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Additional paid-in capital

 

4,861

 

 

14,432

 

 

51

 

 

(14,483

)

 

4,861

 

Accumulated deficit

 

(5,404

)

 

(8,139

)

 

(48

)

 

8,187

 

 

(5,404

)

Accumulated other comprehensive loss

 

(14

)

 

(46

)

 

—

 

 

46

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity attributable to common stock

 

(557

)

 

6,247

 

 

3

 

 

(6,250

)

 

(557

)

Noncontrolling interest

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

(557

)

 

6,247

 

 

3

 

 

(6,250

)

 

(557

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

5,745

 

 

$

6,855

 

 

$

4

 

 

$

(6,250

)

 

$

6,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Operations

 

For the three months ended June 30, 2017

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas net sales

 

—

 

 

439

 

 

—

 

 

—

 

 

439

 

Net derivative gains

 

—

 

 

43

 

 

—

 

 

—

 

 

43

 

Other revenue

 

18

 

 

33

 

 

4

 

 

(21

)

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other

 

$

18

 

 

$

515

 

 

$

4

 

 

$

(21

)

 

$

516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

—

 

 

216

 

 

—

 

 

—

 

 

216

 

General and administrative expenses

 

51

 

 

10

 

 

—

 

 

—

 

 

61

 

Depreciation, depletion and amortization

 

2

 

 

133

 

 

3

 

 

—

 

 

138

 

Taxes other than on income

 

—

 

 

31

 

 

—

 

 

—

 

 

31

 

Exploration expense

 

—

 

 

6

 

 

—

 

 

—

 

 

6

 

Other expenses (income), net

 

2

 

 

44

 

 

—

 

 

(21

)

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other

 

55

 

 

440

 

 

3

 

 

(21

)

 

477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING (LOSS) INCOME

 

(37

)

 

75

 

 

1

 

 

—

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense, net

 

(84

)

 

1

 

 

—

 

 

—

 

 

(83

)

Net gains on early extinguishment of debt

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Gains on asset divestitures

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Other non-operating expense

 

(3

)

 

—

 

 

—

 

 

—

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME BEFORE INCOME TAXES

 

(124

)

 

76

 

 

1

 

 

—

 

 

(47

)

Income tax benefit

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

(124

)

 

76

 

 

1

 

 

—

 

 

(47

)

Net income attributable to noncontrolling interest

 

—

 

 

—

 

 

(1

)

 

—

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK

 

$

(124

)

 

$

76

 

 

$

—

 

 

$

—

 

 

$

(48

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Operations

 

For the three months ended June 30, 2016

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas net sales

 

—

 

 

403

 

 

1

 

 

—

 

 

404

 

Net derivative losses

 

—

 

 

(118

)

 

—

 

 

—

 

 

(118

)

Other revenue

 

—

 

 

31

 

 

—

 

 

—

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other

 

$

—

 

 

$

316

 

 

$

1

 

 

$

—

 

 

$

317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

—

 

 

187

 

 

1

 

 

—

 

 

188

 

General and administrative expenses

 

49

 

 

12

 

 

—

 

 

—

 

 

61

 

Depreciation, depletion and amortization

 

1

 

 

137

 

 

—

 

 

—

 

 

138

 

Taxes other than on income

 

—

 

 

42

 

 

—

 

 

—

 

 

42

 

Exploration expense

 

—

 

 

5

 

 

—

 

 

—

 

 

5

 

Other expenses, net

 

—

 

 

24

 

 

—

 

 

—

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other

 

50

 

 

407

 

 

1

 

 

—

 

 

458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

(50

)

 

(91

)

 

—

 

 

—

 

 

(141

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense, net

 

(75

)

 

1

 

 

—

 

 

—

 

 

(74

)

Net gains on early extinguishment of debt

 

44

 

 

—

 

 

—

 

 

—

 

 

44

 

Gains on asset divestitures

 

—

 

 

31

 

 

—

 

 

—

 

 

31

 

Other non-operating income (expense)

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE INCOME TAXES

 

(81

)

 

(59

)

 

—

 

 

—

 

 

(140

)

Income tax benefit

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

(81

)

 

(59

)

 

—

 

 

—

 

 

(140

)

Net (income) loss attributable to noncontrolling interest

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO COMMON STOCK

 

$

(81

)

 

$

(59

)

 

$

—

 

 

$

—

 

 

$

(140

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Operations

 

For the six months ended June 30, 2017

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

(in millions)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas net sales

 

—

 

 

925

 

 

1

 

 

—

 

 

926

 

Net derivative gains (losses)

 

—

 

 

117

 

 

(1

)

 

—

 

 

116

 

Other revenue

 

17

 

 

63

 

 

5

 

 

(21

)

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other

 

$

17

 

 

$

1,105

 

 

$

5

 

 

$

(21

)

 

$

1,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

—

 

 

426

 

 

1

 

 

—

 

 

427

 

General and administrative expenses

 

104

 

 

24

 

 

—

 

 

—

 

 

128

 

Depreciation, depletion and amortization

 

3

 

 

272

 

 

3

 

 

—

 

 

278

 

Taxes other than on income

 

—

 

 

64

 

 

—

 

 

—

 

 

64

 

Exploration expense

 

—

 

 

12

 

 

—

 

 

—

 

 

12

 

Other expenses (income), net

 

2

 

 

65

 

 

1

 

 

(21

)

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other

 

109

 

 

863

 

 

5

 

 

(21

)

 

956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING (LOSS) INCOME

 

(92

)

 

242

 

 

—

 

 

—

 

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense, net

 

(168

)

 

1

 

 

—

 

 

—

 

 

(167

)

Net gains on early extinguishment of debt

 

4

 

 

—

 

 

—

 

 

—

 

 

4

 

Gains on asset divestitures

 

—

 

 

21

 

 

—

 

 

—

 

 

21

 

Other non-operating expense

 

(3

)

 

—

 

 

—

 

 

—

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME BEFORE INCOME TAXES

 

(259

)

 

264

 

 

—

 

 

—

 

 

5

 

Income tax benefit

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

(259

)

 

264

 

 

—

 

 

—

 

 

5

 

Net (income) loss attributable to noncontrolling interest

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK

 

$

(259

)

 

$

264

 

 

$

—

 

 

$

—

 

 

$

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Operations

 

For the six months ended June 30, 2016

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

(in millions)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas net sales

 

—

 

 

732

 

 

1

 

 

—

 

 

733

 

Net derivative losses

 

—

 

 

(143

)

 

—

 

 

—

 

 

(143

)

Other revenue

 

—

 

 

49

 

 

—

 

 

—

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other

 

$

—

 

 

$

638

 

 

$

1

 

 

$

—

 

 

$

639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs

 

—

 

 

371

 

 

1

 

 

—

 

 

372

 

General and administrative expenses

 

102

 

 

26

 

 

—

 

 

—

 

 

128

 

Depreciation, depletion and amortization

 

3

 

 

282

 

 

—

 

 

—

 

 

285

 

Taxes other than on income

 

—

 

 

81

 

 

—

 

 

—

 

 

81

 

Exploration expense

 

—

 

 

10

 

 

—

 

 

—

 

 

10

 

Other expenses, net

 

—

 

 

47

 

 

—

 

 

—

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and other

 

105

 

 

817

 

 

1

 

 

—

 

 

923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

(105

)

 

(179

)

 

—

 

 

—

 

 

(284

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense, net

 

(150

)

 

2

 

 

—

 

 

—

 

 

(148

)

Net gains on early extinguishment of debt

 

133

 

 

—

 

 

—

 

 

—

 

 

133

 

Gains on asset divestitures

 

—

 

 

31

 

 

—

 

 

—

 

 

31

 

Other non-operating income

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE INCOME TAXES

 

(122

)

 

(146

)

 

—

 

 

—

 

 

(268

)

Income tax benefit

 

78

 

 

—

 

 

—

 

 

—

 

 

78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

(44

)

 

(146

)

 

—

 

 

—

 

 

(190

)

Net (income) loss attributable to noncontrolling interest

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO COMMON STOCK

 

$

(44

)

 

$

(146

)

 

$

—

 

 

$

—

 

 

$

(190

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Cash Flows

 

For the six months ended June 30, 2017

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

(in millions)

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(259

)

 

$

264

 

 

$

—

 

 

$

—

 

 

$

5

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

3

 

 

272

 

 

3

 

 

—

 

 

278

 

Net derivative (gains) losses

 

—

 

 

(117

)

 

1

 

 

—

 

 

(116

)

Net proceeds on settled derivatives

 

—

 

 

7

 

 

—

 

 

—

 

 

7

 

Net gains on early extinguishment of debt

 

(4

)

 

—

 

 

—

 

 

—

 

 

(4

)

Deferred gain and issuance costs amortization

 

(26

)

 

—

 

 

—

 

 

—

 

 

(26

)

Gains on asset divestitures

 

—

 

 

(21

)

 

—

 

 

—

 

 

(21

)

Other non-cash losses in income, net

 

10

 

 

7

 

 

—

 

 

—

 

 

17

 

Dry hole expenses

 

—

 

 

1

 

 

—

 

 

—

 

 

1

 

Changes in operating assets and liabilities, net

 

(43

)

 

24

 

 

(2

)

 

—

 

 

(21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used) provided by operating activities

 

(319

)

 

437

 

 

2

 

 

—

 

 

120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments

 

(1

)

 

(131

)

 

—

 

 

—

 

 

(132

)

Changes in capital investment accruals

 

—

 

 

26

 

 

—

 

 

—

 

 

26

 

Asset divestitures

 

—

 

 

33

 

 

—

 

 

—

 

 

33

 

Acquisitions and other

 

—

 

 

46

 

 

(47

)

 

—

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used by investing activities

 

(1

)

 

(26

)

 

(47

)

 

—

 

 

(74

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from revolving credit facility

 

728

 

 

—

 

 

—

 

 

—

 

 

728

 

Repayments of revolving credit facility

 

(733

)

 

—

 

 

—

 

 

—

 

 

(733

)

Payments on first-lien first-out term loan

 

(66

)

 

—

 

 

—

 

 

—

 

 

(66

)

Debt repurchases

 

(24

)

 

—

 

 

—

 

 

—

 

 

(24

)

Debt transaction costs

 

(2

)

 

—

 

 

—

 

 

—

 

 

(2

)

Contribution from noncontrolling interest, net

 

—

 

 

—

 

 

49

 

 

—

 

 

49

 

Dividends paid to noncontrolling interest

 

—

 

 

—

 

 

(1

)

 

—

 

 

(1

)

Intercompany

 

418

 

 

(417

)

 

(1

)

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided (used) by financing activities

 

321

 

 

(417

)

 

47

 

 

—

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

1

 

 

(6

)

 

2

 

 

—

 

 

(3

)

Cash and cash equivalents—beginning of period

 

—

 

 

12

 

 

—

 

 

—

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents—end of period

 

$

1

 

 

$

6

 

 

$

2

 

 

$

—

 

 

$

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Cash Flows

 

For the six months ended June 30, 2016

 

 

 

Parent

 

Combined
Guarantor
Subsidiaries

 

Combined
Non-
Guarantor
Subsidiaries

 

Eliminations

 

Consolidated

 

 

(in millions)

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(44

)

 

$

(146

)

 

$

—

 

 

$

—

 

 

$

(190

)

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

3

 

 

282

 

 

—

 

 

—

 

 

285

 

Deferred income tax benefit

 

(78

)

 

—

 

 

—

 

 

—

 

 

(78

)

Net derivative losses

 

—

 

 

143

 

 

—

 

 

—

 

 

143

 

Net proceeds on settled derivatives

 

—

 

 

75

 

 

—

 

 

—

 

 

75

 

Net gains on early extinguishment of debt

 

(133

)

 

—

 

 

—

 

 

—

 

 

(133

)

Deferred gain and issuance costs amortization

 

(29

)

 

—

 

 

—

 

 

—

 

 

(29

)

Gains on asset divestitures

 

—

 

 

(31

)

 

—

 

 

—

 

 

(31

)

Other non-cash losses in income, net

 

23

 

 

20

 

 

—

 

 

—

 

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities, net

 

(50

)

 

9

 

 

—

 

 

—

 

 

(41

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used) provided by operating activities

 

(308

)

 

352

 

 

—

 

 

—

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital investments

 

(1

)

 

(25

)

 

—

 

 

—

 

 

(26

)

Changes in capital investment accruals

 

—

 

 

(11

)

 

—

 

 

—

 

 

(11

)

Asset divestitures

 

—

 

 

19

 

 

—

 

 

—

 

 

19

 

Acquisitions and other

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used by investing activities

 

(1

)

 

(17

)

 

—

 

 

—

 

 

(18

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from revolving credit facility

 

743

 

 

—

 

 

—

 

 

—

 

 

743

 

Repayments of revolving credit facility

 

(701

)

 

—

 

 

—

 

 

—

 

 

(701

)

Payments on first-lien first-out term loan

 

(61

)

 

—

 

 

—

 

 

—

 

 

(61

)

Debt repurchases

 

(13

)

 

—

 

 

—

 

 

—

 

 

(13

)

Debt transaction costs

 

(7

)

 

—

 

 

—

 

 

—

 

 

(7

)

Intercompany

 

347

 

 

(347

)

 

—

 

 

—

 

 

—

 

Employee stock purchases and other

 

3

 

 

—

 

 

—

 

 

—

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided (used) by financing activities

 

311

 

 

(347

)

 

—

 

 

—

 

 

(36

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

2

 

 

(12

)

 

—

 

 

—

 

 

(10

)

Cash and cash equivalents—beginning of period

 

—

 

 

12

 

 

—

 

 

—

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents—end of period

 

$

2

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2