Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

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, 2013:
Operating revenues	$	–	$	818,087	$	126,845	$	(82,891)	$	862,041
Operating costs and expenses:
Gas purchases – midstream services		–		200,584		–		(474)		200,110
Operating expenses		–		124,780		39,773		(82,398)		82,155
General and administrative expenses		–		40,946		6,643		(19)		47,570
Depreciation, depletion and amortization		–		174,382		12,485		–		186,867
Taxes, other than income taxes		–		16,990		3,032		–		20,022
Total operating costs and expenses		–		557,682		61,933		(82,891)		536,724
Operating income		–		260,405		64,912		–		325,317
Other income, net		–		298		56		–		354
Gain on derivatives		–		93,449		–		–		93,449
Equity in earnings of subsidiaries		245,631		–		–		(245,631)		–
Interest expense		–		7,587		1,691		–		9,278
Income before income taxes		245,631		346,565		63,277		(245,631)		409,842
Provision for income taxes		–		142,283		21,928		–		164,211
Net income		245,631		204,282		41,349		(245,631)		245,631
Comprehensive income	$	285,470	$	245,273	$	39,930	$	(285,203)	$	285,470
Three months ended June 30, 2012:
Operating revenues	$	–	$	563,822	$	115,596	$	(73,342)	$	606,076
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		–		800,652		–		–		800,652
Taxes, other than income taxes		–		11,648		2,832		–		14,480
Total operating costs and expenses		–		1,277,159		48,305		(73,342)		1,252,122
Operating income (loss)		–		(713,337)		67,291		–		(646,046)
Other income (loss), net		–		(65)		2,642		–		2,577
Loss on derivatives		–		(6,348)		–		–		(6,348)
Equity in earnings of subsidiaries		(405,132)		–		–		405,132		–
Interest expense		–		4,505		3,856		–		8,361
Income (loss) before income taxes		(405,132)		(724,255)		66,077		405,132		(658,178)
Provision (benefit) for income taxes		–		(278,220)		25,174		–		(253,046)
Net income (loss)		(405,132)		(446,035)		40,903		405,132		(405,132)
Comprehensive income (loss)	$	(558,199)	$	(598,840)	$	40,387	$	558,453	$	(558,199)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Six months ended June 30, 2013:
Operating revenues	$	–	$	1,508,231	$	248,214	$	(160,755)	$	1,595,690
Operating costs and expenses:
Gas purchases – midstream services		–		380,748		–		(682)		380,066
Operating expenses		–		235,321		71,095		(160,037)		146,379
General and administrative expenses		–		72,812		12,009		(36)		84,785
Depreciation, depletion and amortization		–		341,904		24,430		–		366,334
Taxes, other than income taxes		–		34,705		6,144		–		40,849
Total operating costs and expenses		–		1,065,490		113,678		(160,755)		1,018,413
Operating income		–		442,741		134,536		–		577,277
Other loss, net		–		(78)		(101)		–		(179)
Gain on derivatives		–		63,655		–		–		63,655
Equity in earnings of subsidiaries		373,146		–		–		(373,146)		–
Interest expense		–		14,525		3,774		–		18,299
Income before income taxes		373,146		491,793		130,661		(373,146)		622,454
Provision for income taxes		–		200,329		48,979		–		249,308
Net income		373,146		291,464		81,682		(373,146)		373,146
Comprehensive income	$	318,788	$	239,020	$	79,234	$	(318,254)	$	318,788
Six months ended June 30, 2012:
Operating revenues	$	–	$	1,176,633	$	228,721	$	(144,443)	$	1,260,911
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		–		800,652		–		–		800,652
Taxes, other than income taxes		–		28,646		6,256		–		34,902
Total operating costs and expenses		–		1,768,661		98,413		(144,443)		1,722,631
Operating income (loss)		–		(592,028)		130,308		–		(461,720)
Other income (loss), net		–		(239)		2,616		–		2,377
Loss on derivatives		–		(4,714)		–		–		(4,714)
Equity in earnings of subsidiaries		(297,428)		–		–		297,428		–
Interest expense		–		8,260		7,439		–		15,699
Income (loss) before income taxes		(297,428)		(605,241)		125,485		297,428		(479,756)
Provision (benefit) for income taxes		–		(231,328)		49,000		–		(182,328)
Net income (loss)		(297,428)		(373,913)		76,485		297,428		(297,428)
Comprehensive income (loss)	$	(383,925)	$	(460,883)	$	76,450	$	384,433	$	(383,925)

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
June 30, 2013:
ASSETS
Cash and cash equivalents	$	25,303	$	–	$	382	$	–	$	25,685
Accounts receivable		2,642		420,119		23,175		–		445,936
Inventories		–		36,045		2,055		–		38,100
Other current assets		5,331		270,094		7,687		–		283,112
Total current assets		33,276		726,258		33,299		–		792,833
Intercompany receivables		2,510,744		66		30,746		(2,541,556)		–
Property and equipment		231,348		12,617,326		1,419,715		–		14,268,389
Less: Accumulated depreciation, depletion and amortization		(95,880)		(7,264,007)		(214,246)		–		(7,574,133)
		135,468		5,353,319		1,205,469		–		6,694,256
Investments in subsidiaries (equity method)		2,632,570		–		–		(2,632,570)		–
Other assets		33,704		98,372		16,026		–		148,102
Total assets	$	5,345,762	$	6,178,015	$	1,285,540	$	(5,174,126)	$	7,635,191
LIABILITIES AND EQUITY
Accounts payable	$	132,447	$	461,157	$	95,037	$	–	$	688,641
Other current liabilities		3,758		152,810		1,846		–		158,414
Total current liabilities		136,205		613,967		96,883		–		847,055
Intercompany payables		–		2,541,556		–		(2,541,556)		–
Long-term debt		1,897,734		–		–		–		1,897,734
Deferred income taxes		(130,850)		993,255		398,141		–		1,260,546
Other liabilities		69,078		172,997		14,186		–		256,261
Total liabilities		1,972,167		4,321,775		509,210		(2,541,556)		4,261,596
Commitments and contingencies
Total equity		3,373,595		1,856,240		776,330		(2,632,570)		3,373,595
Total liabilities and equity	$	5,345,762	$	6,178,015	$	1,285,540	$	(5,174,126)	$	7,635,191

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	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 Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Unaudited)
	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
	(in thousands)
Six months ended June 30, 2013:
Net cash provided by (used in) operating activities	$	(30,843)	$	651,169	$	257,226	$	–	$	877,552
Investing activities:
Capital investments		(12,156)		(1,084,093)		(79,385)		–		(1,175,634)
Transfers from restricted cash		8,542		–		–		–		8,542
Other		(73)		1,894		3,807		–		5,628
Net cash used in investing activities		(3,687)		(1,082,199)		(75,578)		–		(1,161,464)
Financing activities:
Intercompany activities		(243,555)		425,042		(181,487)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(1,233,150)		–		–		–		(1,233,150)
Borrowing under revolving long-term debt		1,463,150		–		–		–		1,463,150
Other Items		26,497		–		–		–		26,497
Net cash provided by (used in) financing activities		12,342		425,042		(181,487)		–		255,897
Effect of exchange rate changes on cash		–		–		117		–		117
Increase (decrease) in cash and cash equivalents		(22,188)		(5,988)		278		–		(27,898)
Cash and cash equivalents at beginning of year		47,491		5,988		104		–		53,583
Cash and cash equivalents at end of period	$	25,303	$	–	$	382	$	–	$	25,685
Six months 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		90		(2,287)		11,092		–		8,895
Net cash used in investing activities		(162,373)		(866,065)		(73,375)		–		(1,101,813)
Financing activities:								–
Intercompany activities		(54,667)		245,329		(190,662)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(1,273,700)		–		–		–		(1,273,700)
Borrowings under revolving long-term debt		602,200		–		–		–		602,200
Proceeds from issuance of long-term debt		998,780		–		–		–		998,780
Other items		(36,370)		–		–		–		(36,370)
Net cash provided by (used in) financing activities		235,643		245,329		(190,662)		–		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