Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Year ended December 31, 2012:
Operating revenues	$	–	$	2,541,684	$	476,997	$	(303,638)	$	2,715,043
Operating costs and expenses:
Gas purchases		–		593,091		–		(625)		592,466
Operating expenses		–		423,147		121,953		(300,365)		244,735
General and administrative expenses		–		151,488		26,307		(2,648)		175,147
Depreciation, depletion and amortization		–		765,623		45,330		–		810,953
Impairment of natural gas and oil properties		–		1,939,734		–		–		1,939,734
Taxes, other than income taxes		–		56,262		11,321		1		67,584
Total operating costs and expenses		–		3,929,345		204,911		(303,637)		3,830,619
Operating income (loss)		–		(1,387,661)		272,086		(1)		(1,115,576)
Other income (loss), net		–		(1,143)		2,173		–		1,030
Equity in earnings of subsidiaries		(707,064)		–		–		707,064		–
Interest expense		–		22,312		13,345		–		35,657
Income (loss) before income taxes		(707,064)		(1,411,116)		260,914		707,063		(1,150,203)
Provision (benefit) for income taxes		–		(538,357)		95,218		–		(443,139)
Net income (loss)		(707,064)		(872,759)		165,696		707,063		(707,064)
Comprehensive income (loss)	$	(965,688)	$	(1,125,454)	$	166,225	$	959,229	$	(965,688)
Year ended December 31, 2011:
Operating revenues	$	–	$	2,803,385	$	411,998	$	(262,477)	$	2,952,906
Operating costs and expenses:
Gas purchases		–		710,487		–		(1,396)		709,091
Operating expenses		–		380,154		118,713		(257,923)		240,944
General and administrative expenses		–		141,499		19,700		(3,158)		158,041
Depreciation, depletion and amortization		–		665,615		38,896		–		704,511
Taxes, other than income taxes		–		53,950		11,568		–		65,518
Total operating costs and expenses		–		1,951,705		188,877		(262,477)		1,878,105
Operating income (loss)		–		851,680		223,121		–		1,074,801
Other income (loss), net		–		306		(42)		–		264
Equity in earnings of subsidiaries		637,769		–		–		(637,769)		–
Interest expense		–		11,277		12,798		–		24,075
Income (loss) before income taxes		637,769		840,709		210,281		(637,769)		1,050,990
Provision for income taxes		–		332,795		80,426		–		413,221
Net income (loss)		637,769		507,914		129,855		(637,769)		637,769
Comprehensive income (loss)	$	962,222	$	836,291	$	129,294	$	(965,585)	$	962,222
Year ended December 31, 2010:
Operating revenues	$	–	$	2,488,105	$	318,232	$	(195,674)	$	2,610,663
Operating costs and expenses:
Gas purchases		–		612,745		–		(1,584)		611,161
Operating expenses		–		293,713		91,164		(193,106)		191,771
General and administrative expenses		–		127,022		19,525		(984)		145,563
Depreciation, depletion and amortization		–		559,845		30,487		–		590,332
Taxes, other than income taxes		–		44,200		6,408		–		50,608
Total operating costs and expenses		–		1,637,525		147,584		(195,674)		1,589,435
Operating income		–		850,580		170,648		–		1,021,228
Other income, net		–		242		185		–		427
Equity in earnings of subsidiaries		604,118		–		–		(604,118)		–
Interest expense		–		10,777		15,386		–		26,163
Income (loss) before income taxes		604,118		840,045		155,447		(604,118)		995,492
Provision for income taxes		–		330,879		60,780		–		391,659
Net income (loss)		604,118		509,166		94,667		(604,118)		603,833
Less: Net loss attributable to noncontrolling interest		–		(285)		–		–		(285)
Net income (loss) attributable to Southwestern Energy		604,118		509,451		94,667		(604,118)		604,118
Comprehensive income (loss)	$	603,817	$	510,626	$	94,649	$	(605,275)	$	603,817

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
December 31, 2012:
ASSETS
Cash and cash equivalents	$	47,491	$	5,988	$	104	$	–	$	53,583
Restricted cash		8,542		–		–		–		8,542
Accounts receivable		2,677		353,607		21,354		–		377,638
Inventories		2		26,975		1,164		–		28,141
Other current assets		7,461		321,396		12,151		–		341,008
Total current assets		66,173		707,966		34,773		–		808,912
Intercompany receivables		2,259,713		42		27,077		(2,286,832)		–
Property and equipment		220,837		11,491,222		1,316,380		–		13,028,439
Less: Accumulated depreciation, depletion and amortization		(82,178)		(6,923,106)		(186,179)		–		(7,191,463)
		138,659		4,568,116		1,130,201		–		5,836,976
Investments in subsidiaries (equity method)		2,309,947		–		–		(2,309,947)		–
Other assets		35,136		42,247		14,256		–		91,639
Total assets	$	4,809,628	$	5,318,371	$	1,206,307	$	(4,596,779)	$	6,737,527
LIABILITIES AND EQUITY
Accounts payable	$	140,367	$	375,604	$	41,009	$	–	$	556,980
Other current liabilities		3,758		205,623		1,410		–		210,791
Total current liabilities		144,125		581,227		42,419		–		767,771
Intercompany payables		–		2,108,360		178,472		(2,286,832)		–
Long-term debt		1,668,273		–		–		–		1,668,273
Deferred income taxes		(116,207)		820,279		345,066		–		1,049,138
Other liabilities		77,565		124,505		14,403		–		216,473
Total liabilities		1,773,756		3,634,371		580,360		(2,286,832)		3,701,655
Commitments and contingencies
Total equity		3,035,872		1,684,000		625,947		(2,309,947)		3,035,872
Total liabilities and equity	$	4,809,628	$	5,318,371	$	1,206,307	$	(4,596,779)	$	6,737,527

CONDENSED CONSOLIDATING BALANCE SHEETS
	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
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Year ended December 31, 2012:
Net cash provided by (used in) operating activities	$	(39,934)	$	1,278,673	$	415,203	$	–	$	1,653,942
Investing activities:
Capital investments		(36,918)		(1,868,487)		(202,350)		–		(2,107,755)
Proceeds from sale of property and equipment		26,006		169,149		5,946		–		201,101
Transfers to restricted cash		(167,788)		–		–		–		(167,788)
Transfers from restricted cash		159,245		1		–		–		159,246
Other		(696)		(35,792)		45,007		–		8,519
Net cash used in investing activities		(20,151)		(1,735,129)		(151,397)		–		(1,906,677)
Financing activities:
Intercompany activities		(198,023)		462,443		(264,420)		–		–
Payments on current portion of long-term debt		(1,200)		–		–		–		(1,200)
Payments on revolving long-term debt		(2,263,900)		–		–		–		(2,263,900)
Borrowing under revolving long-term debt		1,592,400		–		–		–		1,592,400
Proceeds from issuance of long-term debt		998,780		–		–		–		998,780
Other		(35,192)		1		–		–		(35,191)
Net cash provided by (used in) financing activities		92,865		462,444		(264,420)		–		290,889
Effect of exchange rate changes on cash		–		–		(198)		–		(198)
Increase (decrease) in cash and cash equivalents		32,780		5,988		(812)		–		37,956
Cash and cash equivalents at beginning of year		14,711		–		916		–		15,627
Cash and cash equivalents at end of year	$	47,491	$	5,988	$	104	$	–	$	53,583
Year ended December 31, 2011:
Net cash provided by operating activities	$	14,688	$	1,482,853	$	242,276	$	–	$	1,739,817
Investing activities:
Capital investments		(66,647)		(1,916,246)		(201,581)		–		(2,184,474)
Proceeds from sale of property and equipment		–		154,261		265		–		154,526
Transfers to restricted cash		(85,055)		–		–		–		(85,055)
Transfers from restricted cash		85,055		–		–		–		85,055
Other		16,263		(43,961)		32,856		–		5,158
Net cash used in investing activities		(50,384)		(1,805,946)		(168,460)		–		(2,024,790)
Financing activities:
Intercompany activities		(242,277)		315,462		(73,185)		–		–
Payments on current portion of long-term debt		(1,200)		–		–		–		(1,200)
Payments on revolving long-term debt		(3,445,900)		–		–		–		(3,445,900)
Borrowings under revolving long-term debt		3,696,200		–		–		–		3,696,200
Other		35,203		–		–		–		35,203
Net cash provided by financing activities		42,026		315,462		(73,185)		–		284,303
Effect of exchange rate changes on cash		–		–		242		–		242
Increase (decrease) in cash and cash equivalents		6,330		(7,631)		873		–		(428)
Cash and cash equivalents at beginning of year		8,381		7,631		43		–		16,055
Cash and cash equivalents at end of period	$	14,711	$	–	$	916	$	–	$	15,627
Year ended December 31, 2010:
Net cash provided by operating activities	$	25,865	$	1,368,248	$	248,472	$	–	$	1,642,585
Investing activities:
Capital investments		(46,062)		(1,718,847)		(308,265)		–		(2,073,174)
Proceeds from sale of property and equipment		–		348,274		1,953		–		350,227
Transfers to restricted cash		(356,035)		–		–		–		(356,035)
Transfers from restricted cash		356,035		–		–		–		356,035
Other		11,864		(22,719)		8,171		–		(2,684)
Net cash used in investing activities		(34,198)		(1,393,292)		(298,141)		–		(1,725,631)
Financing activities:
Intercompany activities		(76,904)		26,899		50,005		–		–
Payments on current portion of long-term debt		(1,200)		–		–		–		(1,200)
Payments on revolving long-term debt		(2,958,100)		–		–		–		(2,958,100)
Borrowings under revolving long-term debt		3,054,800		–		–		–		3,054,800
Other		(9,260)		–		–		–		(9,260)
Net cash provided by financing activities		9,336		26,899		50,005		–		86,240
Effect of exchange rate changes on cash		–		–		(323)		–		(323)
Increase in cash and cash equivalents		1,003		1,855		13		–		2,871
Cash and cash equivalents at beginning of year		7,378		5,776		30		–		13,184
Cash and cash equivalents at end of period	$	8,381	$	7,631	$	43	$	–	$	16,055