Guarantor Financial Information

9 Months Ended

Sep. 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 September 30, 2011 and December 31, 2010, the condensed consolidated statements of operations for the three and nine months ended September 30, 2011 and 2010 and the condensed consolidated statements of cash flows for the nine months ended September 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
September 30, 2011

				Guarantor			Non-Guarantor		Adjustments/
	Issuer			Entities			Entities		Eliminations		Consolidated
Current assets	$	113,237		$	307		$	71,724	$	—	$	185,268
Property and equipment:
Oil and gas properties		737,514			—			19,215		—		756,729
Other		72,988			2,567			—		—		75,555
Total property and equipment		810,502			2,567			19,215		—		832,284
Accumulated depletion and depreciation		(469,760	)		(2	)		—		—		(469,762	)
Net property and equipment		340,742			2,565			19,215		—		362,522
Investment in subsidiaries		(558	)		—			—		558		—
Other long-term assets		4,074			2,407			—		—		6,481
Total assets	$	457,495		$	5,279		$	90,939	$	558	$	554,271
Current liabilities	$	263,795		$	(28	)	$	78,828	$	—	$	342,595
Long-term liabilities:
Long-term debt, derivative instruments and deferred taxes		148,259			1,801			—		—		150,060
Asset retirement obligations		3,354			—			—		—		3,354
Total long-term liabilities		151,613			1,801			—		—		153,414
Total Delta stockholders’ equity		45,127			3,506			12,111		558		61,302
Non-controlling interest		(3,040	)		—			—		—		(3,040	)
Total equity		42,087			3,506			12,111		558		58,262
Total liabilities and equity	$	457,495		$	5,279		$	90,939	$	558	$	554,271

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 September 30, 2011

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	16,546		$	—		$	—		$	—	$	16,546
Operating expenses:
Oil and gas expenses		7,560			17			—			—		7,577
Exploration expense		53			—			—			—		53
Dry hole costs and impairments		419,098			1,349			—			—		420,447
Depreciation and depletion		10,701			—			—			—		10,701
General and administrative		6,033			10			22			—		6,065
Total operating expenses		443,445			1,376			22			—		444,843
Operating (loss)		(426,899	)		(1,376	)		(22	)		—		(428,297	)
Other income and (expense)		(1,682	)		6			—			—		(1,676	)
Income tax benefit (expense)		(64	)		—			—			—		(64	)
Discontinued operations		298			—			1,011			—		1,309
Net income (loss)		(428,347	)		(1,370	)		989			—		(428,728	)
Net income attributable to non-controlling interest		(702	)		—			—			—		(702	)
Net income (loss) attributable to Delta common stockholders	$	(429,049	)	$	(1,370	)	$	989		$	—	$	(429,430	)

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

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	12,576		$	77		$	(1	)	$	—	$	12,652
Operating expenses:
Oil and gas expenses		8,520						—			—		8,520
Exploration expense		368			—			—			—		368
Dry hole costs and impairments		(1,193	)		29			—			—		(1,164	)
Depreciation and depletion		11,522			—			—			—		11,522
General and administrative		7,160			12			26			—		7,198
Total operating expenses		26,377			41			26			—		26,444
Operating loss		(13,801	)		36			(27	)		—		(13,792	)
Other income and (expense)		(374	)		(70	)		1			—		(443	)
Income tax expense		(86	)		—			—			—		(86	)
Discontinued operations		57,351			(381	)		(31,916	)		—		25,054
Net income (loss)		43,090			(415	)		(31,942	)		—		10,733
Less net loss attributable to non-controlling interest		3,209			—			—			—		3,209
Net loss attributable to Delta common stockholders	$	46,299		$	(415	)	$	(31,942	)	$	—	$	13,942

Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2011

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	51,143		$	—		$	—		$	—	$	51,143
Operating expenses:
Oil and gas expenses		23,547			17			—			—		23,564
Exploration expense		329			—			—			—		329
Dry hole costs and impairments		419,553			1,310			—			—		420,863
Depreciation and depletion		33,180			—			—			—		33,180
General and administrative		19,061			31			73			—		19,165
Total operating expenses		495,670			1,358			73			—		497,101
Operating income (loss)		(444,527	)		(1,358	)		(73	)		—		(445,958	)
Other income and (expenses)		(24,182	)		17			2			—		(24,163	)
Income tax benefit		4,568			—			—			—		4,568
Discontinued operations		8,589			—			(1,497	)		—		7,092
Net income (loss)		(455,552	)		(1,341	)		(1,568	)		—		(458,461	)
Less net loss attributable to non-controlling interest		225			—			—			—		225
Net income (loss) attributable to Delta common stockholders	$	(455,327	)	$	(1,341	)	$	(1,568	)	$	—	$	(458,236	)

Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2010

				Guarantor			Non-Guarantor			Adjustments/
	Issuer			Entities			Entities			Eliminations		Consolidated
Total revenue	$	46,522		$	77		$	—		$	—	$	46,599
Operating expenses:
Oil and gas expenses		28,380			—			—			—		28,380
Exploration expense		952			—			—			—		952
Dry hole costs and impairments		24,342			4,834			586			—		29,762
Depreciation and depletion		35,408			2			—			—		35,410
General and administrative		27,961			41			94			—		28,096
Total operating expenses		117,043			4,877			680			—		122,600
Operating loss		(70,521	)		(4,800	)		(680	)		—		(76,001	)
Other income and (expenses)		464			1			4			—		469
Income tax expense		(564	)		—			—			—		(564	)
Discontinued operations		11,414			(201	)		(92,857	)		—		(81,644	)
Net loss		(59,207	)		(5,000	)		(93,533	)		—		(157,740	)
Less net loss attributable to non-controlling interest		9,134			—			—			—		9,134
Net loss attributable to Delta common stockholders	$	(50,073	)	$	(5,000	)	$	(93,533	)	$	—	$	(148,606	)

Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2011

				Guarantor			Non-Guarantor
	Issuer			Entities			Entities			Consolidated
Cash provided by (used in):
Operating activities	$	5,313		$	27		$	1,180		$	6,520
Investing activities		(7,414	)		(23	)		2,241			(5,196	)
Financing activities		(9,923	)		—			(3,490	)		(13,413	)
Net increase (decrease) in cash and cash equivalents		(12,024	)		4			(69	)		(12,089	)
Cash at beginning of the period		13,154			61			975			14,190
Cash at the end of the period	$	1,130		$	65		$	906		$	2,101

Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2010

				Guarantor			Non-Guarantor
	Issuer			Entities			Entities			Consolidated
Cash provided by (used in):
Operating activities	$	(40,857	)	$	(665	)	$	15,564		$	(25,958	)
Investing activities		97,888			622			(3,670	)		94,840
Financing activities		(104,450	)		—			(12,153	)		(116,603	)
Net increase (decrease) in cash and cash equivalents		(47,419	)		(43	)		(259	)		(47,721	)
Cash at beginning of the period		58,533			74			3,311			61,918
Cash at the end of the period	$	11,114		$	31		$	3,052		$	14,197