Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2012

Supplemental Condensed Consolidating Financial Information [Abstract]

Supplemental Condensed Consolidating Balance Sheet

As of September 30, 2012


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	7,319	$	-	$	-	$	7,319
Accounts receivable		77,382		130		(48,239)		29,273
Other current assets		9,776		-		-		9,776
Total current assets		94,477		130		(48,239)		46,368
Property and equipment		1,005,064		259,756		-		1,264,820
Less accumulated depreciation, depletion, amortization and impairments		(322,539)		(68,006)		-		(390,545)
Net property and equipment		682,525		191,750		-		874,275
Investment in affiliates		108,145		-		(108,145)		-
Notes receivable, long-term		-		69,000		(69,000)		-
Other assets		69,268		-		-		69,268
Total assets	$	954,415	$	260,880	$	(225,384)	$	989,911
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	121,719	$	56,664	$	(48,239)	$	130,144
Fair value of commodity derivative instruments		9,779		-		-		9,779
Total current liabilities		131,498		56,664		(48,239)		139,923
Long-term debt		204,935		69,000		(69,000)		204,935
Other liabilities		97,426		27,071		-		124,497
Total liabilities		433,859		152,735		(117,239)		469,355
Stockholders’ equity:
Preferred stock		-		3		(3)		-
Common stock		40		98		(98)		40
Additional paid-in capital		509,041		84,900		(84,900)		509,041
Retained earnings (accumulated deficit)		31,788		23,144		(23,144)		31,788
Treasury stock, at cost		(20,313)		-		-		(20,313)
Total stockholders’ equity		520,556		108,145		(108,145)		520,556
Total liabilities and stockholders' equity	$	954,415	$	260,880	$	(225,384)	$	989,911

Supplemental Condensed Consolidating Balance Sheet

As of December 31, 2011


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	80,128	$	-	$	-	$	80,128
Accounts receivable		93,882		131		(62,196)		31,817
Other current assets		11,633		-		-		11,633
Total current assets		185,643		131		(62,196)		123,578
Property and equipment		833,932		248,316		-		1,082,248
Less accumulated depreciation, depletion, amortization and impairments		(251,948)		(53,162)		-		(305,110)
Net property and equipment		581,984		195,154		-		777,138
Investment in affiliates		91,768		-		(91,768)		-
Notes receivable, long-term		-		69,000		(69,000)		-
Other assets		14,504		-		-		14,504
Total assets	$	873,899	$	264,285	$	(222,964)	$	915,220
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	99,096	$	72,609	$	(62,196)	$	109,509
Deferred tax liabilities		2,823		-		-		2,823
Fair value of commodity derivative instruments		1,056		-		-		1,056
Total current liabilities		102,975		72,609		(62,196)		113,388
Long-term debt		204,390		69,000		(69,000)		204,390
Other liabilities		75,489		30,908		-		106,397
Total liabilities		382,854		172,517		(131,196)		424,175
Stockholders’ equity:
Preferred stock		-		3		(3)		-
Common stock		40		98		(98)		40
Additional paid-in capital		505,235		84,900		(84,900)		505,235
Treasury stock		(11,361)		-		-		(11,361)
Retained earnings (accumulated deficit)		(2,869)		6,767		(6,767)		(2,869)
Total stockholders’ equity		491,045		91,768		(91,768)		491,045
Total liabilities and stockholders' equity	$	873,899	$	264,285	$	(222,964)	$	915,220

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2012


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Revenue:
Oil and natural gas	$	65,339	$	21,306	$	-	$	86,645
Other		3,750		23		(3,750)		23
Total Revenue		69,089		21,329		(3,750)		86,668
Costs and expenses:
Lease operating expenses		19,160		5,835		-		24,995
Taxes, other than on earnings		510		2,679		-		3,189
Exploration expenditures, dry hole costs and impairments		1,475		(11)		-		1,464
Depreciation, depletion, amortization and accretion		25,561		5,017		-		30,578
General and administrative		5,864		3,881		(3,750)		5,995
Other expenses		1,157		1		-		1,158
Total costs and expenses		53,727		17,402		(3,750)		67,379
Income from operations		15,362		3,927		-		19,289
Other income (expense):
Interest expense, net		(5,074)		-		-		(5,074)
Gain on derivative instruments		(22,108)		-		-		(22,108)
Income from equity investments		2,643		-		(2,643)		-
Income (loss) before provision for income taxes		(9,177)		3,927		(2,643)		(7,893)
Provision for income taxes:
Current		126		-		-		126
Deferred		6,804		(1,284)		-		5,520
Total provision for income taxes		6,930		(1,284)		-		5,646
Net income (loss)	$	(2,247)	$	2,643	$	(2,643)	$	(2,247)

Supplemental Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2011


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Revenue:
Oil and natural gas	$	61,196	$	23,657	$	-	$	84,853
Other		3,752		29		(3,750)		31
Total Revenue		64,948		23,686		(3,750)		84,884
Costs and expenses:
Lease operating expenses		14,970		4,296		-		19,266
Taxes, other than on earnings		210		3,283		-		3,493
Exploration expenditures, dry hole costs and impairments		6,458		38		-		6,496
Depreciation, depletion, amortization and accretion		24,155		7,134		-		31,289
General and administrative		4,339		3,872		(3,750)		4,461
Other expenses		5,051		(824)		-		4,227
Total costs and expenses		55,183		17,799		(3,750)		69,232
Income from operations		9,765		5,887		-		15,652
Other income (expense):
Interest expense, net		(4,999)		-		-		(4,999)
Gain (loss) on derivative instruments		26,571		-		-		26,571
Income from equity investments		3,742		-		(3,742)		-
Income before provision for income taxes		35,079		5,887		(3,742)		37,224
Provision for income taxes:
Current		-		-		-		-
Deferred		(11,621)		(2,145)		-		(13,766)
Total provision for income taxes		(11,621)		(2,145)		-		(13,766)
Net income	$	23,458	$	3,742	$	(3,742)	$	23,458

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2012


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Revenue:
Oil and natural gas	$	204,921	$	79,745	$	-	$	284,666
Other		11,254		64		(11,250)		68
Total Revenue		216,175		79,809		(11,250)		284,734
Costs and expenses:
Lease operating expenses		47,060		15,007		-		62,067
Taxes, other than on earnings		1,004		8,830		-		9,834
Exploration expenditures, dry hole cost and impairments		24,060		8		-		24,068
Depreciation, depletion, amortization and accretion		70,447		18,516		-		88,963
General and administrative		16,630		11,613		(11,250)		16,993
Other expenses		5,022		4		-		5,026
Total costs and expenses		164,223		53,978		(11,250)		206,951
Income from operations		51,952		25,831		-		77,783
Other income (expense):
Interest expense, net		(14,953)		-		-		(14,953)
Gain (loss) on derivative instruments		(11,865)		-		-		(11,865)
Income from equity investments		16,377		-		(16,377)		-
Income before provision for income taxes		41,511		25,831		(16,377)		50,965
Provision for income taxes:
Current		(174)		-		-		(174)
Deferred		(6,680)		(9,454)		-		(16,134)
Total provision for income taxes		(6,854)		(9,454)		-		(16,308)
Net income	$	34,657	$	16,377	$	(16,377)	$	34,657

Supplemental Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2011


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Revenue:
Oil and natural gas	$	175,008	$	69,858	$	-	$	244,866
Other		11,256		91		(11,250)		97
Total Revenue		186,264		69,949		(11,250)		244,963
Costs and expenses:
Lease operating expenses		38,461		14,044		-		52,505
Taxes, other than on earnings		806		9,700		-		10,506
Exploration expenditures, dry hole cost and impairments		21,297		243		-		21,540
Depreciation, depletion, amortization and accretion		64,874		20,379		-		85,253
General and administrative		14,202		11,592		(11,250)		14,544
Other expenses		7,444		(814)		-		6,630
Total costs and expenses		147,084		55,144		(11,250)		190,978
Income from operations		39,180		14,805		-		53,985
Other income (expense):
Interest expense, net		(12,416)		-		-		(12,416)
Loss on derivative instruments		14,877		-		-		14,877
Loss on early extinguishment of debt		(2,377)		-		-		(2,377)
Income from equity investments		9,298		-		(9,298)		-
Income before provision for income taxes		48,562		14,805		(9,298)		54,069
Provision for income taxes:
Current		-		-		-		-
Deferred		(14,610)		(5,507)		-		(20,117)
Total provision for income taxes		(14,610)		(5,507)		-		(20,117)
Net income	$	33,952	$	9,298	$	(9,298)	$	33,952

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2012


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Net cash provided by operating activities	$	151,193	$	11,427	$	-	$	162,620
Cash flows provided by (used in) investing activities:
Property acquisitions		(34,458)		-		-		(34,458)
Exploration and development expenditures		(124,523)		(11,427)		-		(135,950)
Deposit for Hilcorp Acquisition		(55,000)		-		-		(55,000)
Other property and equipment additions		(1,474)		-		-		(1,474)
Net cash used in investing activities		(215,455)		(11,427)		-		(226,882)
Cash flows provided by (used in) financing activities:
Deferred financing costs		(6)		-		-		(6)
Purchase of shares into treasury		(8,798)		-		-		(8,798)
Exercise of stock options		257		-		-		257
Net cash used in financing activities		(8,547)		-		-		(8,547)
Net increase in cash and cash equivalents		(72,809)		-		-		(72,809)
Cash and cash equivalents at the beginning of the period		80,128		-		-		80,128
Cash and cash equivalents at the end of the period	$	7,319	$	-	$	-	$	7,319

Supplemental Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2011


	Parent
	Company		Guarantor
	Only		Subsidiaries		Eliminations		Consolidated
	(In thousands)
Net cash provided by operating activities	$	80,045	$	25,890	$	-	$	105,935
Cash flows provided by (used in) investing activities:
Property acquisitions		(196,533)		-		-		(196,533)
Exploration and development expenditures		(23,356)		(25,890)		-		(49,246)
Other property and equipment additions		(833)		-		-		(833)
Decrease in restricted cash		2,467		-		-		2,467
Net cash used in investing activities		(218,255)		(25,890)		-		(244,145)
Cash flows provided by (used in) financing activities:
Proceeds from indebtedness		203,794		-		-		203,794
Deferred financing costs		(6,465)		-		-		(6,465)
Purchase of shares into treasury		(5,523)		-		-		(5,523)
Exercise of stock options		119		-		-		119
Net cash provided by financing activities		191,925		-		-		191,925
Net increase in cash and cash equivalents		53,715		-		-		53,715
Cash and cash equivalents at the beginning of the period		33,553		-		-		33,553
Cash and cash equivalents at the end of the period	$	87,268	$	-	$	-	$	87,268