Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 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 September 30, 2012:
Operating revenues	$	–	$	642,082	$	121,343	$	(77,577)	$	685,848
Operating costs and expenses:
Gas purchases – midstream services		–		149,765		–		(114)		149,651
Operating expenses		–		106,293		32,277		(76,664)		61,906
General and administrative expenses		–		30,818		6,102		(799)		36,121
Depreciation, depletion and amortization		–		189,777		10,878		–		200,655
Impairment of natural gas and oil properties		–		441,465		–		–		441,465
Taxes, other than income taxes		–		13,513		2,739		–		16,252
Total operating costs and expenses		–		931,631		51,996		(77,577)		906,050
Operating income (loss)		–		(289,549)		69,347		–		(220,202)
Other income, net		–		216		22		–		238
Equity in earnings of subsidiaries		(144,815)		–		–		144,815		–
Interest expense		–		7,200		3,406		–		10,606
Income (loss) before income taxes		(144,815)		(296,533)		65,963		144,815		(230,570)
Provision (benefit) for income taxes		–		(111,505)		25,750		–		(85,755)
Net income (loss)		(144,815)		(185,028)		40,213		144,815		(144,815)
Comprehensive income (loss)	$	(274,706)	$	(316,170)	$	41,210	$	274,960	$	(274,706)
Three months ended September 30, 2011:
Operating revenues	$	–	$	730,826	$	105,486	$	(69,057)	$	767,255
Operating costs and expenses:
Gas purchases – midstream services		–		175,729		–		(493)		175,236
Operating expenses		–		101,645		30,034		(67,768)		63,911
General and administrative expenses		–		34,030		2,366		(796)		35,600
Depreciation, depletion and amortization		–		169,446		9,667		–		179,113
Taxes, other than income taxes		–		13,731		3,946		–		17,677
Total operating costs and expenses		–		494,581		46,013		(69,057)		471,537
Operating income		–		236,245		59,473		–		295,718
Other loss, net		–		(16)		(106)		–		(122)
Equity in earnings of subsidiaries		175,173		–		–		(175,173)		–
Interest expense		–		2,376		3,281		–		5,657
Income (loss) before income taxes		175,173		233,853		56,086		(175,173)		289,939
Provision for income taxes		–		92,725		22,041		–		114,766
Net income (loss)		175,173		141,128		34,045		(175,173)		175,173
Comprehensive income (loss)	$	296,540	$	263,517	$	32,826	$	(296,343)	$	296,540

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Nine months ended September 30, 2012:
Operating revenues	$	–	$	1,814,001	$	350,064	$	(222,020)	$	1,942,045
Operating costs and expenses:
Gas purchases – midstream services		–		424,425		–		(484)		423,941
Operating expenses		–		311,165		87,461		(219,148)		179,478
General and administrative expenses		–		111,567		20,700		(2,388)		129,879
Depreciation, depletion and amortization		–		568,859		33,253		–		602,112
Impairment of natural gas and oil properties		–		1,377,364		–		–		1,377,364
Taxes, other than income taxes		–		42,159		8,995		–		51,154
Total operating costs and expenses		–		2,835,539		150,409		(222,020)		2,763,928
Operating income (loss)		–		(1,021,538)		199,655		–		(821,883)
Other income (loss), net		–		(23)		2,638		–		2,615
Equity in earnings of subsidiaries		(525,211)		–		–		525,211		–
Interest expense		–		15,460		10,845		–		26,305
Income (loss) before income taxes		(525,211)		(1,037,021)		191,448		525,211		(845,573)
Provision (benefit) for income taxes		–		(395,112)		74,750		–		(320,362)
Net income (loss)		(525,211)		(641,909)		116,698		525,211		(525,211)
Comprehensive income (loss)	$	(741,599)	$	(860,021)	$	117,660	$	742,361	$	(741,599)
Nine months ended September 30, 2011:
Operating revenues	$	–	$	2,101,099	$	299,252	$	(191,595)	$	2,208,756
Operating costs and expenses:
Gas purchases – midstream services		–		546,731		–		(1,213)		545,518
Operating expenses		–		276,974		86,811		(188,022)		175,763
General and administrative expenses		–		101,372		13,943		(2,360)		112,955
Depreciation, depletion and amortization		–		485,546		28,634		–		514,180
Taxes, other than income taxes		–		41,206		8,223		–		49,429
Total operating costs and expenses		–		1,451,829		137,611		(191,595)		1,397,845
Operating income		–		649,270		161,641		–		810,911
Other income (loss), net		–		345		(24)		–		321
Equity in earnings of subsidiaries		479,236		–		–		(479,236)		–
Interest expense		–		7,769		11,494		–		19,263
Income (loss) before income taxes		479,236		641,846		150,123		(479,236)		791,969
Provision for income taxes		–		253,738		58,995		–		312,733
Net income (loss)		479,236		388,108		91,128		(479,236)		479,236
Comprehensive income (loss)	$	625,011	$	534,124	$	90,297	$	(624,421)	$	625,011

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
September 30, 2012:
ASSETS
Cash and cash equivalents	$	16,961	$	1,365	$	234	$	–	$	18,560
Restricted cash		127,074		–		–		–		127,074
Accounts receivable		3,269		271,542		22,962		–		297,773
Inventories		–		29,672		958		–		30,630
Other current assets		6,472		355,779		10,459		–		372,710
Total current assets		153,776		658,358		34,613		–		846,747
Intercompany receivables		2,205,219		34		25,142		(2,230,395)		–
Property and equipment		210,717		11,058,390		1,237,796		–		12,506,903
Less: Accumulated depreciation, depletion and amortization		(73,829)		(6,168,742)		(172,384)		–		(6,414,955)
		136,888		4,889,648		1,065,412		–		6,091,948
Investments in subsidiaries (equity method)		2,521,938		–		–		(2,521,938)		–
Other assets		35,276		80,783		18,197		–		134,256
Total assets	$	5,053,097	$	5,628,823	$	1,143,364	$	(4,752,333)	$	7,072,951
LIABILITIES AND EQUITY
Accounts payable	$	133,968	$	352,240	$	33,572	$	–	$	519,780
Other current liabilities		6,962		232,336		2,087		–		241,385
Total current liabilities		140,930		584,576		35,659		–		761,165
Intercompany payables		–		2,003,287		227,108		(2,230,395)		–
Long-term debt		1,695,342		–		–		–		1,695,342
Deferred income taxes		(96,550)		984,116		316,137		–		1,203,703
Other liabilities		60,096		93,475		5,891		–		159,462
Total liabilities		1,799,818		3,665,454		584,795		(2,230,395)		3,819,672
Commitments and contingencies
Total equity		3,253,279		1,963,369		558,569		(2,521,938)		3,253,279
Total liabilities and equity	$	5,053,097	$	5,628,823	$	1,143,364	$	(4,752,333)	$	7,072,951

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	$	205,341	$	332,710	$	37,276	$	–	$	575,327
Other current liabilities		5,912		301,170		2,504		–		309,586
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)
Nine months ended September 30, 2012:
Net cash provided by (used in) operating activities	$	(55,324)	$	915,885	$	331,916	$	–	$	1,192,477
Investing activities:
Capital investments		(38,946)		(1,452,061)		(132,744)		–		(1,623,751)
Proceeds from sale of property and equipment		144		169,149		31,868		–		201,161
Transfers to restricted cash		(167,774)		–		–		–		(167,774)
Transfers from restricted cash		40,700		–		–		–		40,700
Other		16,575		(24,340)		13,004		–		5,239
Net cash used in investing activities		(149,301)		(1,307,252)		(87,872)		–		(1,544,425)
Financing activities:
Intercompany activities		(148,027)		392,732		(244,705)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(1,774,000)		–		–		–		(1,774,000)
Borrowing under revolving long-term debt		1,129,000		–		–		–		1,129,000
Proceeds from issuance of long-term debt		998,780		–		–		–		998,780
Other Items		1,722		–		(11)		–		1,711
Net cash provided by (used in) financing activities		206,875		392,732		(244,716)		–		354,891
Effect of exchange rate changes on cash		–		–		(10)		–		(10)
Increase (decrease) in cash and cash equivalents		2,250		1,365		(682)		–		2,933
Cash and cash equivalents at beginning of year		14,711		–		916		–		15,627
Cash and cash equivalents at end of period	$	16,961	$	1,365	$	234	$	–	$	18,560
Nine months ended September 30, 2011:
Net cash provided by (used in) operating activities	$	(23,901)	$	1,146,062	$	178,050	$	–	$	1,300,211
Investing activities:
Capital investments		(53,085)		(1,333,977)		(156,487)		–		(1,543,549)
Proceeds from sale of property and equipment		–		121,281		265		–		121,546
Transfers to restricted cash		(85,040)		–		–		–		(85,040)
Transfers from restricted cash		15,779		–		–		–		15,779
Other		11,046		(31,564)		25,458		–		4,940
Net cash used in investing activities		(111,300)		(1,244,260)		(130,764)		–		(1,486,324)
Financing activities:								–
Intercompany activities		(44,592)		92,018		(47,426)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(2,575,000)		–		–		–		(2,575,000)
Borrowings under revolving long-term debt		2,753,600		–		–		–		2,753,600
Other items		5,254		–		–		–		5,254
Net cash provided by (used in) financing activities		138,662		92,018		(47,426)		–		183,254
Effect of exchange rate changes on cash		–		–		97		–		97
Increase (decrease) in cash and cash equivalents		3,461		(6,180)		(43)		–		(2,762)
Cash and cash equivalents at beginning of year		8,381		7,631		43		–		16,055
Cash and cash equivalents at end of period	$	11,842	$	1,451	$	–	$	–	$	13,293