Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Guarantor Financial Information [Abstract]

Guarantor Financial Information

(13) Guarantor Financial Information

On March 15, 2005, Delta issued $150.0 million of 7% senior notes that mature in 2015. In addition, on April 25, 2007, the Company issued $115.0 million of 3³/4% convertible senior notes due in 2037. Both the senior notes and the convertible notes are guaranteed by all of the Company’s wholly-owned subsidiaries. Each of the guarantors, fully, jointly and severally, irrevocably and unconditionally guarantees the performance and payment when due of all the obligations under the senior notes and the convertible notes. DHS, CRBP, and Amber are not guarantors of the indebtedness under the senior notes or the convertible notes.

The following financial information sets forth the Company’s condensed consolidated balance sheets as of June 30, 2011 and December 31, 2010, the condensed consolidated statements of operations for the three and six months ended June 30, 2011 and 2010 and the condensed consolidated statements of cash flows for the six months ended June 30, 2011 and 2010. For purposes of the condensed financial information presented below, the equity in the earnings or losses of subsidiaries is not recorded in the financial statements of the issuer.

Condensed Consolidated Balance Sheet

June 30, 2011

				Guarantor			Non-Guarantor		Adjustments/
	Issuer			Entities			Entities		Eliminations			Consolidated
Current assets	$	116,297		$	311		$	67,595	$	—		$	184,203
Property and equipment:
Oil and gas properties		905,597			—			19,215		—			924,812
Other		73,638			32,638			—		—			106,276
Total property and equipment		979,235			32,638			19,215		—			1,031,088
Accumulated depletion and depreciation		(218,715	)		(28,723	)		—		—			(247,438	)
Net property and equipment		760,520			3,915			19,215		—			783,650
Investment in subsidiaries		85			—			—		(85	)		—
Other long-term assets		5,585			2,407			—		—			7,992
Total assets	$	882,487		$	6,633		$	86,810	$	(85	)	$	975,845
Current liabilities	$	256,559		$	(28	)	$	76,112	$	—		$	332,643
Long-term liabilities:
Long-term debt, derivative instruments and deferred taxes		151,403			1,801			—		—			153,204
Asset retirement obligations		3,299			—			—		—			3,299
Total long-term liabilities		154,702			1,801			—		—			156,503
Total Delta stockholders’ equity		474,968			4,860			10,698		(85	)		490,441
Non-controlling interest		(3,742	)		—			—		—			(3,742	)
Total equity		471,226			4,860			10,698		(85	)		486,699
Total liabilities and equity	$	882,487		$	6,633		$	86,810	$	(85	)	$	975,845

Condensed Consolidated Balance Sheet
December 31, 2010

				Guarantor			Non-Guarantor		Adjustments/
	Issuer			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Current assets	$	164,377		$	322		$	75,069	$	—		$	239,768
Property and equipment:
Oil and gas properties		881,886			—			19,215		(118	)		900,983
Other		74,438			32,677			—		—			107,115
Total property and equipment		956,324			32,677			19,215		(118	)		1,008,098
Accumulated depletion, depreciation and amortization		(203,731	)		(28,762	)		—		—			(232,493	)
Net property and equipment		752,593			3,915			19,215		(118	)		775,605
Investment in subsidiaries		1,156			—			—		(1,156	)		—
Other long-term assets		6,332			2,407			—		—			8,739
Total assets	$	924,458		$	6,644		$	94,284	$	(1,274	)	$	1,024,112
Current liabilities	$	138,375		$	(26	)	$	81,633	$	—		$	219,982
Long-term liabilities
Long-term debt, derivative instruments and deferred taxes		288,025			1,801			—		—			289,826
Asset retirement obligation and other liabilities		2,709			—			—		—			2,709
Total long-term liabilities		290,734			1,801			—		—			292,535
Total Delta stockholders’ equity		498,201			4,869			12,651		(1,274	)		514,447
Non-controlling interest		(2,852	)		—			—		—			(2,852	)
Total equity		495,349			4,869			12,651		(1,274	)		511,595
Total liabilities and equity	$	924,458		$	6,644		$	94,284	$	(1,274	)	$	1,024,112

Condensed Consolidated Statement of Operations
Three Months Ended June 30, 2011

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	16,882		$	—		$	—		$	—	$	16,882
Operating expenses:
Oil and gas expenses		7,799			—			—			—		7,799
Exploration expense		233			—			—			—		233
Dry hole costs and impairments		367			(94	)		—			—		273
Depreciation and depletion		10,528			—			—			—		10,528
General and administrative		6,424			21			26			—		6,471
Total operating expenses		25,351			(73	)		26			—		25,304
Operating income (loss)		(8,469	)		73			(26	)		—		(8,422	)
Other income and (expense)		(4,314	)		11			1			—		(4,302	)
Income tax benefit		3,938			—			—			—		3,938
Discontinued operations		6,698			—			2,622			—		9,320
Net income (loss)		(2,147	)		84			2,597			—		534
Net income attributable to non-controlling interest		(1,497	)		—			—			—		(1,497	)
Net income (loss) attributable to Delta common stockholders	$	(3,644	)	$	84		$	2,597		$	—	$	(963	)

Condensed Consolidated Statement of Operations
Three Months Ended June 30, 2010

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	14,713		$	—		$	—		$	—	$	14,713
Operating expenses:
Oil and gas expenses		11,212						—			—		11,212
Exploration expense		358			—			—			—		358
Dry hole costs and impairments		24,474			4,805			586			—		29,865
Depreciation and depletion		12,140			2			—			—		12,142
General and administrative		10,608			14			26			—		10,648
Total operating expenses		58,792			4,821			612			—		64,225
Operating loss		(44,079	)		(4,821	)		(612	)		—		(49,512	)
Other income and (expense)		(3,683	)		78			1			—		(3,604	)
Income tax expense		(203	)		—			—			—		(203	)
Discontinued operations		(35,775	)		106			(63,492	)		—		(99,161	)
Net loss		(83,740	)		(4,637	)		(64,103	)		—		(152,480	)
Less net loss attributable to non-controlling interest		2,730			—			—			—		2,730
Net loss attributable to Delta common stockholders	$	(81,010	)	$	(4,637	)	$	(64,103	)	$	—	$	(149,750	)

Condensed Consolidated Statement of Operations
Six Months Ended June 30, 2011

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	34,597		$	—		$	—		$	—	$	34,597
Operating expenses:
Oil and gas expenses		15,987			—			—			—		15,987
Exploration expense		276			—			—			—		276
Dry hole costs and impairments		455			(39	)		—			—		416
Depreciation and depletion		22,479			—			—			—		22,479
General and administrative		13,028			21			51			—		13,100
Total operating expenses		52,225			(18	)		51			—		52,258
Operating income (loss)		(17,628	)		18			(51	)		—		(17,661	)
Other income and (expenses)		(22,500	)		11			2			—		(22,487	)
Income tax benefit		4,633			—			—			—		4,633
Discontinued operations		8,292			—			(2,507	)		—		5,785
Net income (loss)		(27,203	)		29			(2,556	)		—		(29,730	)
Less net loss attributable to non-controlling interest		927			—			—			—		927
Net income (loss) attributable to Delta common stockholders	$	(26,276	)	$	29		$	(2,556	)	$	—	$	(28,803	)

Condensed Consolidated Statement of Operations
Six Months Ended June 30, 2010

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	33,946		$	—		$	—		$	—	$	33,946
Operating expenses:
Oil and gas expenses		19,860			—			—			—		19,860
Exploration expense		584			—			—			—		584
Dry hole costs and impairments		24,828			4,805			586			—		30,219
Depreciation and depletion		23,885			2			—			—		23,887
General and administrative		20,800			29			69			—		20,898
Total operating expenses		89,957			4,836			655			—		95,448
Operating loss		(56,011	)		(4,836	)		(655	)		—		(61,502	)
Other income and (expenses)		837			72			3			—		912
Income tax expense		(478	)		—			—			—		(478	)
Discontinued operations		(34,719	)		180			(72,865	)		—		(107,404	)
Net loss		(90,371	)		(4,584	)		(73,517	)		—		(168,472	)
Less net loss attributable to non-controlling interest		5,925			—			—			—		5,925
Net loss attributable to Delta common stockholders	$	(84,446	)	$	(4,584	)	$	(73,517	)	$	—	$	(162,547	)

Condensed Consolidated Statement of Cash Flows
Six Months Ended June 30, 2011

				Guarantor		Non-Guarantor
	Issuer			Entities		Entities			Consolidated
Cash provided by (used in):
Operating activities	$	(680	)	$	1	$	791		$	112
Investing activities		5,345			1		2,647			7,993
Financing activities		(14,915	)		—		(3,486	)		(18,401	)
Net decrease in cash and cash equivalents		(10,250	)		2		(48	)		(10,296	)
Cash at beginning of the period		13,154			61		975			14,190
Cash at the end of the period	$	2,904		$	63	$	927		$	3,894

Condensed Consolidated Statement of Cash Flows
Six Months Ended June 30, 2010

	Guarantor	Non-Guarantor
Issuer	Entities	Entities	Consolidated

Cash provided by (used in):
Operating activities	$	(37,302	)	$	51		$	13,978		$	(23,273	)
Investing activities		(8,900	)		(31	)		(3,143	)		(12,074	)
Financing activities		(5,378	)		—			(10,142	)		(15,520	)
Net increase (decrease) in cash and cash equivalents		(51,580	)		20			693			(50,867	)
Cash at beginning of the period		58,533			74			3,311			61,918
Cash at the end of the period	$	6,953		$	94		$	4,004		$	11,051