Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Three months ended June 30, 2012:
Operating revenues	$	–	$	557,474	$	115,596	$	(73,342)	$	599,728
Operating costs and expenses:
Gas purchases – midstream services		–		127,757		–		(143)		127,614
Operating expenses		–		101,816		27,203		(72,405)		56,614
General and administrative expenses		–		39,041		6,685		(794)		44,932
Depreciation, depletion and amortization		–		196,245		11,585		–		207,830
Impairment of natural gas and oil properties		–		935,899		–		–		935,899
Taxes, other than income taxes		–		11,648		2,832		–		14,480
Total operating costs and expenses		–		1,412,406		48,305		(73,342)		1,387,369
Operating income (loss)		–		(854,932)		67,291		–		(787,641)
Other income (loss), net		–		(65)		2,642		–		2,577
Equity in earnings of subsidiaries		(488,100)		–		–		488,100		–
Interest expense		–		4,505		3,856		–		8,361
Income (loss) before income taxes		(488,100)		(859,502)		66,077		488,100		(793,425)
Provision for income taxes		–		(330,499)		25,174		–		(305,325)
Net income (loss)		(488,100)		(529,003)		40,903		488,100		(488,100)
Other comprehensive income (loss)		254		(152,805)		(516)		–		(153,067)
Comprehensive income (loss)	$	(487,846)	$	(681,808)	$	40,387	$	488,100	$	(641,167)
Three months ended June 30, 2011:
Operating revenues	$	–	$	728,430	$	100,108	$	(63,372)	$	765,166
Operating costs and expenses:
Gas purchases – midstream services		–		200,420		–		(368)		200,052
Operating expenses		–		88,477		28,793		(62,216)		55,054
General and administrative expenses		–		35,298		5,728		(788)		40,238
Depreciation, depletion and amortization		–		161,699		9,921		–		171,620
Taxes, other than income taxes		–		13,568		2,092		–		15,660
Total operating costs and expenses		–		499,462		46,534		(63,372)		482,624
Operating income		–		228,968		53,574		–		282,542
Other income, net		–		16		53		–		69
Equity in earnings of subsidiaries		167,454		–		–		(167,454)		–
Interest expense		–		1,748		4,422		–		6,170
Income (loss) before income taxes		167,454		227,236		49,205		(167,454)		276,441
Provision for income taxes		–		89,651		19,336		–		108,987
Net income (loss)		167,454		137,585		29,869		(167,454)		167,454
Other comprehensive income		196		48,619		126		–		48,941
Comprehensive income (loss)	$	167,650	$	186,204	$	29,995	$	(167,454)	$	216,395

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Six months ended June 30, 2012:
Operating revenues	$	–	$	1,171,919	$	228,721	$	(144,443)	$	1,256,197
Operating costs and expenses:
Gas purchases – midstream services		–		274,660		–		(370)		274,290
Operating expenses		–		204,872		55,184		(142,484)		117,572
General and administrative expenses		–		80,749		14,598		(1,589)		93,758
Depreciation, depletion and amortization		–		379,082		22,375		–		401,457
Impairment of natural gas and oil properties		–		935,899		–		–		935,899
Taxes, other than income taxes		–		28,646		6,256		–		34,902
Total operating costs and expenses		–		1,903,908		98,413		(144,443)		1,857,878
Operating income (loss)		–		(731,989)		130,308		–		(601,681)
Other income (loss), net		–		(239)		2,616		–		2,377
Equity in earnings of subsidiaries		(380,396)		–		–		380,396		–
Interest expense		–		8,260		7,439		–		15,699
Income (loss) before income taxes		(380,396)		(740,488)		125,485		380,396		(615,003)
Provision for income taxes		–		(283,607)		49,000		–		(234,607)
Net income (loss)		(380,396)		(456,881)		76,485		380,396		(380,396)
Other comprehensive income (loss)		508		(86,970)		(35)		–		(86,497)
Comprehensive income (loss)	$	(379,888)	$	(543,851)	$	76,450	$	380,396	$	(466,893)
Six months ended June 30, 2011:
Operating revenues	$	–	$	1,370,273	$	193,766	$	(122,538)	$	1,441,501
Operating costs and expenses:
Gas purchases – midstream services		–		371,002		–		(720)		370,282
Operating expenses		–		175,329		56,777		(120,254)		111,852
General and administrative expenses		–		67,342		11,577		(1,564)		77,355
Depreciation, depletion and amortization		–		316,100		18,967		–		335,067
Taxes, other than income taxes		–		27,475		4,277		–		31,752
Total operating costs and expenses		–		957,248		91,598		(122,538)		926,308
Operating income		–		413,025		102,168		–		515,193
Other income, net		–		361		82		–		443
Equity in earnings of subsidiaries		304,063		–		–		(304,063)		–
Interest expense		–		5,393		8,213		–		13,606
Income (loss) before income taxes		304,063		407,993		94,037		(304,063)		502,030
Provision for income taxes		–		161,013		36,954		–		197,967
Net income (loss)		304,063		246,980		57,083		(304,063)		304,063
Other comprehensive income		393		23,627		388		–		24,408
Comprehensive income (loss)	$	304,456	$	270,607	$	57,471	$	(304,063)	$	328,471

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
June 30, 2012:
ASSETS
Cash and cash equivalents	$	36,888	$	4,209	$	402	$	–	$	41,499
Restricted cash		144,384		–		–		–		144,384
Accounts receivable		2,322		246,742		23,686		–		272,750
Inventories		–		33,562		967		–		34,529
Other current assets		6,040		499,095		5,216		–		510,351
Total current assets		189,634		783,608		30,271		–		1,003,513
Intercompany receivables		2,114,806		40		24,265		(2,139,111)		–
Property and equipment		203,486		10,625,280		1,224,616		–		12,053,382
Less: Accumulated depreciation, depletion and amortization		(67,749)		(5,535,735)		(160,398)		–		(5,763,882)
		135,737		5,089,545		1,064,218		–		6,289,500
Investments in subsidiaries (equity method)		2,794,486		–		–		(2,794,486)		–
Other assets		35,537		157,864		17,549		–		210,950
Total assets	$	5,270,200	$	6,031,057	$	1,136,303	$	(4,933,597)	$	7,503,963
LIABILITIES AND EQUITY
Accounts payable	$	109,858	$	423,901	$	46,275	$	–	$	580,034
Other current liabilities		9,816		293,916		2,183		–		305,915
Total current liabilities		119,674		717,817		48,458		–		885,949
Intercompany payables		10,498		1,832,910		295,703		(2,139,111)		–
Long-term debt		1,668,811		–		–		–		1,668,811
Deferred income taxes		(96,715)		1,128,431		290,264		–		1,321,980
Other liabilities		52,055		53,112		6,179		–		111,346
Total liabilities		1,754,323		3,732,270		640,604		(2,139,111)		3,988,086
Commitments and contingencies
Total equity		3,515,877		2,298,787		495,699		(2,794,486)		3,515,877
Total liabilities and equity	$	5,270,200	$	6,031,057	$	1,136,303	$	(4,933,597)	$	7,503,963

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
December 31, 2011:
ASSETS
Cash and cash equivalents	$	14,711	$	–	$	916	$	–	$	15,627
Accounts receivable		2,914		309,038		29,963		–		341,915
Inventories		–		45,260		974		–		46,234
Other current assets		6,087		563,635		4,780		–		574,502
Total current assets		23,712		917,933		36,633		–		978,278
Intercompany receivables		2,053,132		53		23,517		(2,076,702)		–
Property and equipment		180,300		9,731,944		1,148,575		–		11,060,819
Less: Accumulated depreciation, depletion and amortization		(57,254)		(4,220,205)		(137,880)		–		(4,415,339)
		123,046		5,511,739		1,010,695		–		6,645,480
Investments in subsidiaries (equity method)		3,256,195		–		–		(3,256,195)		–
Other assets		28,641		227,152		23,346		–		279,139
Total assets	$	5,484,726	$	6,656,877	$	1,094,191	$	(5,332,897)	$	7,902,897
LIABILITIES AND EQUITY
Accounts payable	$	206,541	$	332,710	$	37,276	$	–	$	576,527
Other current liabilities		4,712		301,170		2,504		–		308,386
Total current liabilities		211,253		633,880		39,780		–		884,913
Intercompany payables		–		1,628,750		447,952		(2,076,702)		–
Long-term debt		1,342,100		–		–		–		1,342,100
Deferred income taxes		(97,045)		1,442,576		241,267		–		1,586,798
Other liabilities		59,114		54,826		5,842		–		119,782
Total liabilities		1,515,422		3,760,032		734,841		(2,076,702)		3,933,593
Commitments and contingencies
Total equity		3,969,304		2,896,845		359,350		(3,256,195)		3,969,304
Total liabilities and equity	$	5,484,726	$	6,656,877	$	1,094,191	$	(5,332,897)	$	7,902,897

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Sixmonths ended June 30, 2012:
Net cash provided by (used in) operating activities	$	(51,093)	$	624,945	$	263,538	$	–	$	837,390
Investing activities:
Capital investments		(18,079)		(1,032,169)		(90,413)		–		(1,140,661)
Proceeds from sale of property and equipment		–		168,391		5,946		–		174,337
Transfers to restricted cash		(167,750)		–		–		–		(167,750)
Transfers from restricted cash		23,366		–		–		–		23,366
Other		10,584		(10,809)		9,120		–		8,895
Net cash used in investing activities		(151,879)		(874,587)		(75,347)		–		(1,101,813)
Financing activities:
Intercompany activities		(65,161)		253,851		(188,690)		–		–
Payments on short-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(1,273,700)		–		–		–		(1,273,700)
Borrowing under revolving long-term debt		602,200		–		–		–		602,200
Borrowing under long-term debt		998,780		–		–		–		998,780
Other Items		(36,370)		–		–		–		(36,370)
Net cash provided by (used in) financing activities		225,149		253,851		(188,690)		–		290,310
Effect of exchange rate changes on cash		–		–		(15)		–		(15)
Increase (decrease) in cash and cash equivalents		22,177		4,209		(514)		–		25,872
Cash and cash equivalents at beginning of year		14,711		–		916		–		15,627
Cash and cash equivalents at end of period	$	36,888	$	4,209	$	402	$	–	$	41,499
Six months ended June 30, 2011:
Net cash provided by (used in) operating activities	$	(29,781)	$	763,933	$	122,778	$	–	$	856,930
Investing activities:
Capital investments		(35,347)		(889,700)		(99,611)		–		(1,024,658)
Proceeds from sale of property and equipment		–		120,892		241		–		121,133
Transfers to restricted cash		(85,002)		–		–		–		(85,002)
Other		7,244		(11,339)		7,974		–		3,879
Net cash used in investing activities		(113,105)		(780,147)		(91,396)		–		(984,648)
Financing activities:								–
Intercompany activities		22,870		8,583		(31,453)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(1,717,600)		–		–		–		(1,717,600)
Borrowings under revolving long-term debt		1,840,600		–		–		–		1,840,600
Other items		2,415		–		–		–		2,415
Net cash provided by (used in) financing activities		147,685		8,583		(31,453)		–		124,815
Effect of exchange rate changes on cash		–		–		127		–		127
Increase (decrease) in cash and cash equivalents		4,799		(7,631)		56		–		(2,776)
Cash and cash equivalents at beginning of year		8,381		7,631		43		–		16,055
Cash and cash equivalents at end of period	$	13,180	$	–	$	99	$	–	$	13,279