Guarantor/Non-Guarantor Condensed Consolidated Financial Statements (Tables)

3 Months Ended

Mar. 31, 2012

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	March 31, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	21,142		$	(6,505	)	$	6,764		$	—		$	21,401
Receivables, net of allowance for doubtful accounts	2			123,415			43,844			(3,618		)	163,643
Intercompany receivable (payable)	(126,574		)	142,819			(16,245		)	—			—
Deferred income taxes	553			6,656			9,050			—			16,259
Inventory	—			4,971			7,249			—			12,220
Prepaid expenses and other current assets	246			7,890			4,071			—			12,207
Total current assets	(104,631		)	279,246			54,733			(3,618		)	225,730
Net property and equipment	1,751			743,910			123,577			(750		)	868,488
Investment in subsidiaries	1,004,501			225,515			—			(1,230,016		)	—
Intangible assets, net of amortization	176			17,768			32,559			—			50,503
Goodwill	—			—			41,683			—			41,683
Noncurrent deferred income taxes	36,436			—			—			(36,436		)	—
Other long-term assets	11,208			1,457			15			—			12,680
Total assets	$	949,441		$	1,267,896		$	252,567		$	(1,270,820	)	$	1,199,084
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	452		$	76,081		$	8,584		—			$	85,117
Current portion of long-term debt	—			850			23			—			873
Prepaid drilling contracts	—			2,722			2,011			—			4,733
Accrued expenses	3,541			43,997			9,545			(3,618		)	53,465
Total current liabilities	3,993			123,650			20,163			(3,618		)	144,188
Long-term debt, less current portion	417,954			200			125			—			418,279
Noncurrent deferred income taxes	—			134,255			2,882			(36,436		)	100,701
Other long-term liabilities	203			5,290			3,882			—			9,375
Total liabilities	422,150			263,395			27,052			(40,054		)	672,543
Total shareholders’ equity	527,291			1,004,501			225,515			(1,230,766		)	526,541
Total liabilities and shareholders’ equity	$	949,441		$	1,267,896		$	252,567		$	(1,270,820	)	$	1,199,084
	December 31, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	91,932		$	(13,879	)	$	8,144		$	—		$	86,197
Receivables, net of allowance for doubtful accounts	(2		)	112,531			32,724			(19		)	145,234
Intercompany receivable (payable)	(122,552		)	131,585			(9,033		)	—			—
Deferred income taxes	1,408			8,644			5,381			—			15,433
Inventory	—			4,533			6,651			—			11,184
Prepaid expenses and other current assets	285			6,304			4,975			—			11,564
Total current assets	(28,929		)	249,718			48,842			(19		)	269,612
Net property and equipment	1,605			675,679			117,422			(750		)	793,956
Investment in subsidiaries	932,237			221,201			—			(1,153,438		)	—
Intangible assets, net of amortization	171			18,829			33,680			—			52,680
Goodwill	—			—			41,683			—			41,683
Noncurrent deferred income taxes	30,835			—			735			(30,835		)	735
Other long-term assets	11,949			2,124			15			—			14,088
Total assets	$	947,868		$	1,167,551		$	242,377		$	(1,185,042	)	$	1,172,754
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,090		$	57,150		$	8,200		$	—		$	66,440
Current portion of long-term debt	—			850			22			—			872
Prepaid drilling contracts	—			1,297			2,669			—			3,966
Accrued expenses	16,779			45,012			6,631			(20		)	68,402
Total current liabilities	17,869			104,309			17,522			(20		)	139,680
Long-term debt, less current portion	417,747			850			131			—			418,728
Noncurrent deferred income taxes	921			124,659			—			(30,835		)	94,745
Other long-term liabilities	137			5,496			3,523			—			9,156
Total liabilities	436,674			235,314			21,176			(30,855		)	662,309
Total shareholders’ equity	511,194			932,237			221,201			(1,154,187		)	510,445
Total liabilities and shareholders’ equity	$	947,868		$	1,167,551		$	242,377		$	(1,185,042	)	$	1,172,754

Supplemental Guarantor Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

	Three months ended March 31, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	190,842		$	41,136		$	—		$	231,978
Costs and expenses:
Operating costs	—			114,941			26,832			—			141,773
Depreciation and amortization	165			32,689			5,519			—			38,373
General and administrative	5,508			13,032			2,741			(138		)	21,143
Intercompany leasing	—			(1,215		)	1,231			(16		)	—
Bad debt expense	—			(180		)	89			—			(91		)
Impairment of equipment	—			1,032			—			—			1,032
Total costs and expenses	5,673			160,299			36,412			(154		)	202,230
Income from operations	(5,673		)	30,543			4,724			154			29,748
Other (expense) income:
Equity in earnings of subsidiaries	23,550			4,648			—			(28,198		)	—
Interest expense	(9,513		)	(40		)	(2		)	—			(9,555		)
Other	(68		)	250			904			(154		)	932
Total other expense	13,969			4,858			902			(28,352		)	(8,623		)
Income (loss) before income taxes	8,296			35,401			5,626			(28,198		)	21,125
Income tax (expense) benefit	5,876			(11,851		)	(978		)	—			(6,953		)
Net income (loss)	$	14,172		$	23,550		$	4,648		$	(28,198	)	$	14,172
	Three months ended March 31, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	129,115		$	24,234		$	—		$	153,349
Costs and expenses:
Operating costs	—			81,878			18,859			—			100,737
Depreciation and amortization	275			29,118			2,863			—			32,256
General and administrative	4,131			9,890			608			(108		)	14,521
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt recovery	—			(84		)	—			—			(84		)
Total costs and expenses	4,406			119,587			23,545			(108		)	147,430
Income from operations	(4,406		)	9,528			689			108			5,919
Other income (expense):
Equity in earnings of subsidiaries	807			(5,027		)	—			4,220			—
Interest expense	(7,472		)	(73		)	6			—			(7,539		)
Other	532			236			(7,177		)	(108		)	(6,517		)
Total other income (expense)	(6,133		)	(4,864		)	(7,171		)	4,112			(14,056		)
Income (loss) before income taxes	(10,539		)	4,664			(6,482		)	4,220			(8,137		)
Income tax (expense) benefit	4,504			(3,857		)	1,455			—			2,102
Net earnings (loss)	$	(6,035	)	$	807		$	(5,027	)	$	4,220		$	(6,035	)

Supplemental Guarantor Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Three months ended March 31, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(70,272	)	$	91,273		$	8,651		$	—	$	29,652
Cash flows from investing activities:
Purchases of property and equipment	(478		)	(84,565		)	(10,066		)	—		(95,109		)
Proceeds from sale of property and equipment	—			1,316			41			—		1,357
	(478		)	(83,249		)	(10,025		)	—		(93,752		)
Cash flows from financing activities:
Debt repayments	—			(650		)	(6		)	—		(656		)
Proceeds from exercise of options	253			—			—			—		253
Purchase of treasury stock	(293		)	—			—			—		(293		)
	(40		)	(650		)	(6		)	—		(696		)
Net increase (decrease) in cash and cash equivalents	(70,790		)	7,374			(1,380		)	—		(64,796		)
Beginning cash and cash equivalents	91,932			(13,879		)	8,144			—		86,197
Ending cash and cash equivalents	$	21,142		$	(6,505	)	$	6,764		$	—	$	21,401
	Three months ended March 31, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(17,846	)	$	30,450		$	(3,560	)	$	—	$	9,044
Cash flows from investing activities:
Acquisition of production services businesses	—			(2,000		)	—			—		(2,000		)
Purchases of property and equipment	(90		)	(29,492		)	(1,797		)	—		(31,379		)
Proceeds from sale of property and equipment	—			782			4			—		786
Proceeds from sale of auction rate securities	12,569			—			—			—		12,569
	12,479			(30,710		)	(1,793		)	—		(20,024		)
Cash flows from financing activities:
Debt repayments	(12,800		)	(729		)	—			—		(13,529		)
Proceeds from issuance of debt	17,000			—			—			—		17,000
Proceeds from exercise of options	560			—			—			—		560
Purchase of treasury stock	(210		)	—			—			—		(210		)
Excess tax benefit of stock option exercises	459			—			—			—		459
	5,009			(729		)	—			—		4,280
Net decrease in cash and cash equivalents	(358		)	(989		)	(5,353		)	—		(6,700		)
Beginning cash and cash equivalents	15,737			(1,840		)	8,114			—		22,011
Ending cash and cash equivalents	$	15,379		$	(2,829	)	$	2,761		$	—	$	15,311