Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 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 September 30, 2013:
Operating revenues	$	–	$	823,112	$	130,998	$	(85,744)	$	868,366
Operating costs and expenses:
Gas purchases – midstream services		–		195,437		–		(166)		195,271
Operating expenses		–		140,400		35,425		(85,556)		90,269
General and administrative expenses		–		43,836		7,155		(22)		50,969
Depreciation, depletion and amortization		–		191,972		12,962		–		204,934
Taxes, other than income taxes		–		15,348		2,346		–		17,694
Total operating costs and expenses		–		586,993		57,888		(85,744)		559,137
Operating income		–		236,119		73,110		–		309,229
Other income (loss), net		–		145		(464)		–		(319)
Gain on derivatives		–		10,251		1,873		–		12,124
Equity in earnings of subsidiaries		185,867		–		–		(185,867)		–
Interest expense		–		9,359		1,659		–		11,018
Income before income taxes		185,867		237,156		72,860		(185,867)		310,016
Provision for income taxes		–		91,466		32,683		–		124,149
Net income		185,867		145,690		40,177		(185,867)		185,867
Comprehensive income	$	139,179	$	98,102	$	40,811	$	(138,913)	$	139,179
Three months ended September 30, 2012:
Operating revenues	$	–	$	647,961	$	121,343	$	(77,577)	$	691,727
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		–		193,057		10,878		–		203,935
Impairment of natural gas and oil properties		–		289,821		–		–		289,821
Taxes, other than income taxes		–		13,513		2,739		–		16,252
Total operating costs and expenses		–		783,267		51,996		(77,577)		757,686
Operating income (loss)		–		(135,306)		69,347		–		(65,959)
Other income, net		–		216		22		–		238
Loss on derivatives		–		(5,879)		–		–		(5,879)
Equity in earnings of subsidiaries		(54,053)		–		–		54,053		–
Interest expense		–		7,200		3,406		–		10,606
Income (loss) before income taxes		(54,053)		(148,169)		65,963		54,053		(82,206)
Provision (benefit) for income taxes		–		(53,903)		25,750		–		(28,153)
Net income (loss)		(54,053)		(94,266)		40,213		54,053		(54,053)
Comprehensive income (loss)	$	(183,944)	$	(225,408)	$	41,210	$	184,198	$	(183,944)

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent		Guarantors		Non- Guarantors		Eliminations		Consolidated
	(in thousands)
September 30, 2013:
ASSETS
Cash and cash equivalents	$	17,956	$	–	$	994	$	–	$	18,950
Accounts receivable		3,114		423,418		18,191		–		444,723
Inventories		–		40,906		2,319		–		43,225
Other assets		13,893		212,154		7,030		–		233,077
Total current assets		34,963		676,478		28,534		–		739,975
Intercompany receivables		2,548,900		57		54,531		(2,603,488)		–
Property and equipment		236,324		13,079,991		1,507,238		–		14,823,553
Less: Accumulated depreciation, depletion and amortization		(102,706)		(7,455,008)		(229,106)		–		(7,786,820)
		133,618		5,624,983		1,278,132		–		7,036,733
Investments in subsidiaries (equity method)		2,788,544		–		–		(2,788,544)		–
Other assets		32,103		69,697		15,880		–		117,680
Total assets	$	5,538,128	$	6,371,215	$	1,377,077	$	(5,392,032)	$	7,894,388
LIABILITIES AND EQUITY
Accounts payable	$	147,265	$	432,089	$	84,372	$	–	$	663,726
Other current liabilities		3,759		141,307		1,019		–		146,085
Total current liabilities		151,024		573,396		85,391		–		809,811
Intercompany payables		–		2,603,488		–		(2,603,488)		–
Long-term debt		1,911,165		–		–		–		1,911,165
Deferred income taxes		(115,675)		1,077,055		427,453		–		1,388,833
Other liabilities		71,625		178,703		14,262		–		264,590
Total liabilities		2,018,139		4,432,642		527,106		(2,603,488)		4,374,399
Commitments and contingencies
Total equity		3,519,989		1,938,573		849,971		(2,788,544)		3,519,989
Total liabilities and equity	$	5,538,128	$	6,371,215	$	1,377,077	$	(5,392,032)	$	7,894,388

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 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)
Nine months ended September 30, 2013:
Net cash provided by (used in) operating activities	$	(32,502)	$	1,062,133	$	347,887	$	–	$	1,377,518
Investing activities:
Capital investments		(29,227)		(1,530,760)		(167,556)		–		(1,727,543)
Proceeds from sale of property and equipment		–		210		2,871		–		3,081
Transfers from restricted cash		8,542		–		–		–		8,542
Other		(74)		(1,685)		6,459		–		4,700
Net cash used in investing activities		(20,759)		(1,532,235)		(158,226)		–		(1,711,220)
Financing activities:
Intercompany activities		(274,931)		464,114		(189,183)		–		–
Payments on current portion of long-term debt		(600)		–		–		–		(600)
Payments on revolving long-term debt		(2,134,550)		–		–		–		(2,134,550)
Borrowing under revolving long-term debt		2,377,950		–		–		–		2,377,950
Other Items		55,857		–		–		–		55,857
Net cash provided by (used in) financing activities		23,726		464,114		(189,183)		–		298,657
Effect of exchange rate changes on cash		–		–		412		–		412
Increase (decrease) in cash and cash equivalents		(29,535)		(5,988)		890		–		(34,633)
Cash and cash equivalents at beginning of year		47,491		5,988		104		–		53,583
Cash and cash equivalents at end of period	$	17,956	$	–	$	994	$	–	$	18,950
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)
Borrowings 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