GUARANTOR FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CCONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2016

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	150,537		$	40,044		$	—		$	—		$	190,581
Accounts receivable	18,745			31,452			—			(1,733		)	48,464
Current income tax receivable	26,086			—			—			—			26,086
Other current assets	10,151			—			—			—			10,151
Total current assets	205,519			71,496			—			(1,733		)	275,282
Oil and gas properties, full cost method:
Proved	1,964,046			7,608,036			44,154			—			9,616,236
Less: accumulated DD&A	(1,964,046		)	(7,170,242		)	(44,154		)	—			(9,178,442		)
Net proved oil and gas properties	—			437,794			—			—			437,794
Unevaluated	251,955			121,765			—			—			373,720
Other property and equipment, net	26,213			—			—			—			26,213
Other assets, net	25,570			904			—			—			26,474
Investment in subsidiary	389,475			76			—			(389,551		)	—
Total assets	$	898,732		$	632,035		$	—		$	(391,284	)	$	1,139,483
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	13,742		$	7,972		$	—		$	(1,733	)	$	19,981
Undistributed oil and gas proceeds	14,170			903			—			—			15,073
Accrued interest	809			—			—			—			809
Asset retirement obligations	—			88,000			—			—			88,000
Current portion of long-term debt	408			—			—			—			408
Other current liabilities	18,602			—			—			—			18,602
Total current liabilities	47,731			96,875			—			(1,733		)	142,873
Long-term debt	352,376			—			—			—			352,376
Asset retirement obligations	8,410			145,609			—			—			154,019
Other long-term liabilities	17,315			—			—			—			17,315
Total liabilities not subject to compromise	425,832			242,484			—			(1,733		)	666,583
Liabilities subject to compromise	1,110,182			—			—			—			1,110,182
Total liabilities	1,536,014			242,484			—			(1,733		)	1,776,765
Commitments and contingencies
Stockholders’ equity:
Common stock	56			—			—			—			56
Treasury stock	(860		)	—			—			—			(860		)
Additional paid-in capital	1,659,731			1,300,547			108,198			(1,408,745		)	1,659,731
Accumulated deficit	(2,296,209		)	(910,996		)	(108,198		)	1,019,194			(2,296,209		)
Total stockholders’ equity	(637,282		)	389,551			—			(389,551		)	(637,282		)
Total liabilities and stockholders’ equity	$	898,732		$	632,035		$	—		$	(391,284	)	$	1,139,483

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2015

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	9,681		$	2		$	1,076		$	—		$	10,759
Accounts receivable	10,597			39,190			—			(1,756		)	48,031
Fair value of derivative contracts	—			38,576			—			—			38,576
Current income tax receivable	46,174			—			—			—			46,174
Other current assets	6,848			—			33			—			6,881
Total current assets	73,300			77,768			1,109			(1,756		)	150,421
Oil and gas properties, full cost method:
Proved	1,875,152			7,458,262			42,484			—			9,375,898
Less: accumulated DD&A	(1,874,622		)	(6,686,849		)	(42,484		)	—			(8,603,955		)
Net proved oil and gas properties	530			771,413			—			—			771,943
Unevaluated	253,308			186,735			—			—			440,043
Other property and equipment, net	29,289			—			—			—			29,289
Other assets, net	16,612			826			1,035			—			18,473
Investment in subsidiary	745,033			—			1,088			(746,121		)	—
Total assets	$	1,118,072		$	1,036,742		$	3,232		$	(747,877	)	$	1,410,169
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	16,063		$	67,901		$	—		$	(1,757	)	$	82,207
Undistributed oil and gas proceeds	5,216			776			—			—			5,992
Accrued interest	9,022			—			—			—			9,022
Asset retirement obligations	—			20,400			891			—			21,291
Other current liabilities	40,161			551			—			—			40,712
Total current liabilities	70,462			89,628			891			(1,757		)	159,224
Long-term debt	1,060,955			—			—			—			1,060,955
Asset retirement obligations	1,240			203,335			—			—			204,575
Other long-term liabilities	25,204			—			—			—			25,204
Total liabilities	1,157,861			292,963			891			(1,757		)	1,449,958
Commitments and contingencies
Stockholders’ equity:
Common stock	55			—			—			—			55
Treasury stock	(860		)	—			—			—			(860		)
Additional paid-in capital	1,648,687			1,344,577			109,795			(1,454,372		)	1,648,687
Accumulated deficit	(1,705,623		)	(624,824		)	(95,306		)	720,130			(1,705,623		)
Accumulated other comprehensive income (loss)	17,952			24,026			(12,148		)	(11,878		)	17,952
Total stockholders’ equity	(39,789		)	743,779			2,341			(746,120		)	(39,789		)
Total liabilities and stockholders’ equity	$	1,118,072		$	1,036,742		$	3,232		$	(747,877	)	$	1,410,169

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2016

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	9,268		$	271,978		$	—		$	—		$	281,246
Natural gas production	25,276			39,325			—			—			64,601
Natural gas liquids production	22,142			6,746			—			—			28,888
Other operational income	2,657			—			—			—			2,657
Total operating revenue	59,343			318,049			—			—			377,392
Operating expenses:
Lease operating expenses	12,048			67,589			13			—			79,650
Transportation, processing, and gathering expenses	28,091			(331		)	—			—			27,760
Production taxes	2,387			761			—			—			3,148
Depreciation, depletion, amortization	67,059			153,020			—			—			220,079
Write-down of oil and gas properties	26,706			330,373			352			—			357,431
Accretion expense	232			39,997			—			—			40,229
Salaries, general and administrative expenses	59,127			(199		)	—			—			58,928
Incentive compensation expense	13,475			—			—			—			13,475
Restructuring fees	29,597			—			—			—			29,597
Other operational expenses	49,247			125			6,081			—			55,453
Derivative expense, net	—			810			—			—			810
Total operating expenses	287,969			592,145			6,446			—			886,560
Loss from operations	(228,626		)	(274,096		)	(6,446		)	—			(509,168		)
Other (income) expenses:
Interest expense	64,458			—			—			—			64,458
Interest income	(503		)	(47		)	—			—			(550		)
Other income	(482		)	(957		)	—			—			(1,439		)
Other expense	596			—			—			—			596
Reorganization items	10,947			—			—			—			10,947
Loss from investment in subsidiaries	292,618			—			6,446			(299,064		)	—
Total other (income) expenses	367,634			(1,004		)	6,446			(299,064		)	74,012
Loss before taxes	(596,260		)	(273,092		)	(12,892		)	299,064			(583,180		)
Provision (benefit) for income taxes:
Current	(5,674		)	—			—			—			(5,674		)
Deferred	—			13,080			—			—			13,080
Total income taxes	(5,674		)	13,080			—			—			7,406
Net loss	$	(590,586	)	$	(286,172	)	$	(12,892	)	$	299,064		$	(590,586	)
Comprehensive loss	$	(608,538	)	$	(286,172	)	$	(12,892	)	$	299,064		$	(608,538	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2015

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	12,804		$	403,693		$	—		$	—		$	416,497
Natural gas production	41,646			41,863			—			—			83,509
Natural gas liquids production	22,375			9,947			—			—			32,322
Other operational income	4,369			—			—			—			4,369
Derivative income, net	—			7,952			—			—			7,952
Total operating revenue	81,194			463,455			—			—			544,649
Operating expenses:
Lease operating expenses	16,264			83,872			3			—			100,139
Transportation, processing, and gathering expenses	50,247			8,600			—			—			58,847
Production taxes	5,631			1,246			—			—			6,877
Depreciation, depletion, amortization	123,724			157,964			—			—			281,688
Write-down of oil and gas properties	785,463			529,354			47,630			—			1,362,447
Accretion expense	365			25,623			—			—			25,988
Salaries, general and administrative expenses	69,147			201			36			—			69,384
Incentive compensation expense	2,242			—			—			—			2,242
Other operational expenses	2,360			—			—			—			2,360
Total operating expenses	1,055,443			806,860			47,669			—			1,909,972
Loss from operations	(974,249		)	(343,405		)	(47,669		)	—			(1,365,323		)
Other (income) expenses:
Interest expense	43,907			21			—			—			43,928
Interest income	(327		)	(246		)	(7		)	—			(580		)
Other income	(617		)	(1,163		)	(3		)	—			(1,783		)
Other expense	434			—			—			—			434
Loss from investment in subsidiaries	231,783			—			47,659			(279,442		)	—
Total other (income) expenses	275,180			(1,388		)	47,649			(279,442		)	41,999
Loss before taxes	(1,249,429		)	(342,017		)	(95,318		)	279,442			(1,407,322		)
Provision (benefit) for income taxes:
Current	(44,096		)	—			—			—			(44,096		)
Deferred	(114,418		)	(157,893		)	—			—			(272,311		)
Total income taxes	(158,514		)	(157,893		)	—			—			(316,407		)
Net loss	$	(1,090,915	)	$	(184,124	)	$	(95,318	)	$	279,442		$	(1,090,915	)
Comprehensive loss	$	(1,156,278	)	$	(184,124	)	$	(95,318	)	$	279,442		$	(1,156,278	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2014

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	29,701		$	486,403		$	—		$	—		$	516,104
Natural gas production	86,812			79,682			—			—			166,494
Natural gas liquids production	61,200			24,442			—			—			85,642
Other operational income	7,551			400			—			—			7,951
Derivative income, net	—			19,351			—			—			19,351
Total operating revenue	185,264			610,278			—			—			795,542
Operating expenses:
Lease operating expenses	18,719			157,776			—			—			176,495
Transportation, processing and gathering expenses	53,028			11,923			—			—			64,951
Production taxes	8,324			3,827			—			—			12,151
Depreciation, depletion, amortization	138,313			201,693			—			—			340,006
Write-down of oil and gas properties	351,192			—			—			—			351,192
Accretion expense	230			28,181			—			—			28,411
Salaries, general and administrative expenses	66,430			4			17			—			66,451
Incentive compensation expense	10,361			—			—			—			10,361
Other operational expenses	669			193			—			—			862
Total operating expenses	647,266			403,597			17			—			1,050,880
Income (loss) from operations	(462,002		)	206,681			(17		)	—			(255,338		)
Other (income) expenses:
Interest expense	38,810			45			—			—			38,855
Interest income	(333		)	(192		)	(49		)	—			(574		)
Other income	(836		)	(1,496		)	—			—			(2,332		)
Other expense	274			—			—			—			274
Income from investment in subsidiaries	(133,336		)	—			(32		)	133,368			—
Total other (income) expenses	(95,421		)	(1,643		)	(81		)	133,368			36,223
Income (loss) before taxes	(366,581		)	208,324			64			(133,368		)	(291,561		)
Provision (benefit) for income taxes:
Current	159			—			—			—			159
Deferred	(177,197		)	75,020			—			—			(102,177		)
Total income taxes	(177,038		)	75,020			—			—			(102,018		)
Net income (loss)	$	(189,543	)	$	133,304		$	64		$	(133,368	)	$	(189,543	)
Comprehensive income (loss)	$	(104,166	)	$	133,304		$	64		$	(133,368	)	$	(104,166	)

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2016

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(590,586	)	$	(286,172	)	$	(12,892	)	$	299,064		$	(590,586	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization	67,059			153,020			—			—			220,079
Write-down of oil and gas properties	26,706			330,373			352			—			357,431
Accretion expense	232			39,997			—			—			40,229
Deferred income tax benefit	—			13,080			—			—			13,080
Settlement of asset retirement obligations	(85		)	(19,530		)	(899		)	—			(20,514		)
Non-cash stock compensation expense	8,443			—			—			—			8,443
Non-cash derivative expense	—			1,471			—			—			1,471
Non-cash interest expense	18,404			—			—			—			18,404
Non-cash reorganization items	8,332			—			—			—			8,332
Other non-cash expense	168			—			6,080			—			6,248
Change in current income taxes	20,088			—			—			—			20,088
Non-cash loss from investment in subsidiaries	292,618			—			6,446			(299,064		)	—
Change in intercompany receivables/payables	43,330			(42,449		)	(881		)	—			—
(Increase) decrease in accounts receivable	(7,490		)	6,078			—			—			(1,412		)
(Increase) decrease in other current assets	(3,526		)	—			33			—			(3,493		)
Increase (decrease) in accounts payable	4,313			(3,287		)	—			—			1,026
Increase (decrease) in other current liabilities	10,321			(424		)	—			—			9,897
Other	(9,178		)	(957		)	—			—			(10,135		)
Net cash (used in) provided by operating activities	(110,851		)	191,200			(1,761		)	—			78,588
Cash flows from investing activities:
Investment in oil and gas properties	(86,442		)	(151,158		)	(352		)	—			(237,952		)
Investment in fixed and other assets	(1,266		)	—			—			—			(1,266		)
Change in restricted funds	—			—			1,046			—			1,046
Investment in subsidiaries	—			—			715			(715		)	—
Net cash (used in) provided by investing activities	(87,708		)	(151,158		)	1,409			(715		)	(238,172		)
Cash flows from financing activities:
Proceeds from bank borrowings	477,000			—			—			—			477,000
Repayments of bank borrowings	(135,500		)	—			—			—			(135,500		)
Deferred financing costs	(900		)	—			—			—			(900		)
Repayments of building loan	(423		)	—			—			—			(423		)
Equity proceeds from parent	—			—			(715		)	715			—
Net payments for share-based compensation	(762		)	—			—			—			(762		)
Net cash used in financing activities	339,415			—			(715		)	715			339,415
Effect of exchange rate changes on cash	—			—			(9		)	—			(9		)
Net change in cash and cash equivalents	140,856			40,042			(1,076		)	—			179,822
Cash and cash equivalents, beginning of period	9,681			2			1,076			—			10,759
Cash and cash equivalents, end of period	$	150,537		$	40,044		$	—		$	—		$	190,581

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2015

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(1,090,915	)	$	(184,124	)	$	(95,318	)	$	279,442		$	(1,090,915	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization	123,724			157,964			—			—			281,688
Write-down of oil and gas properties	785,463			529,354			47,630			—			1,362,447
Accretion expense	365			25,623			—			—			25,988
Deferred income tax benefit	(114,418		)	(157,893		)	—			—			(272,311		)
Settlement of asset retirement obligations	(15		)	(72,367		)	—			—			(72,382		)
Non-cash stock compensation expense	12,324			—			—			—			12,324
Excess tax benefits	(1,586		)	—			—			—			(1,586		)
Non-cash derivative expense	—			16,440			—			—			16,440
Non-cash interest expense	17,788			—			—			—			17,788
Change in current income taxes	(37,377		)	—			—			—			(37,377		)
Non-cash loss from investment in subsidiaries	231,783			—			47,659			(279,442		)	—
Change in intercompany receivables/payables	9,744			(19,486		)	9,742			—			—
Decrease in accounts receivable	34,609			9,084			31			—			43,724
(Increase) decrease in other current assets	1,799			—			(32		)	—			1,767
(Increase) decrease in inventory	(1,394		)	2,698			—			—			1,304
Decrease in accounts payable	(7,471		)	(7,111		)	—			—			(14,582		)
Increase (decrease) in other current liabilities	(25,989		)	53			—			—			(25,936		)
Other	256			(1,163		)	—			—			(907		)
Net cash (used in) provided by operating activities	(61,310		)	299,072			9,712			—			247,474
Cash flows from investing activities:
Investment in oil and gas properties	(188,154		)	(323,359		)	(10,534		)	—			(522,047		)
Proceeds from sale of oil and gas properties, net of expenses	—			22,839			—			—			22,839
Investment in fixed and other assets	(1,549		)	—			—			—			(1,549		)
Change in restricted funds	177,647			—			1,820			—			179,467
Investment in subsidiaries	—			—			(9,714		)	9,714			—
Net cash used in investing activities	(12,056		)	(300,520		)	(18,428		)	9,714			(321,290		)
Cash flows from financing activities:
Proceeds from bank borrowings	5,000			—			—			—			5,000
Repayments of bank borrowings	(5,000		)	—			—			—			(5,000		)
Deferred financing costs	(68		)	—			—			—			(68		)
Proceeds from building loan	11,770			—			—			—			11,770
Excess tax benefits	1,586			—			—			—			1,586
Equity proceeds from parent	—			—			9,714			(9,714		)	—
Net payments for share-based compensation	(3,127		)	—			—			—			(3,127		)
Net cash provided by financing activities	10,161			—			9,714			(9,714		)	10,161
Effect of exchange rate changes on cash	—			—			(74		)	—			(74		)
Net change in cash and cash equivalents	(63,205		)	(1,448		)	924			—			(63,729		)
Cash and cash equivalents, beginning of period	72,886			1,450			152			—			74,488
Cash and cash equivalents, end of period	$	9,681		$	2		$	1,076		$	—		$	10,759

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2014

(In thousands)



	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(189,543	)	$	133,304		$	64		$	(133,368	)	$	(189,543	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	138,313			201,693			—			—			340,006
Write-down of oil and gas properties	351,192			—			—			—			351,192
Accretion expense	230			28,181			—			—			28,411
Deferred income tax (benefit) provision	(177,197		)	75,020			—			—			(102,177		)
Settlement of asset retirement obligations	(201		)	(56,208		)	—			—			(56,409		)
Non-cash stock compensation expense	11,325			—			—			—			11,325
Non-cash derivative income	—			(18,028		)	—			—			(18,028		)
Non-cash interest expense	16,661			—			—			—			16,661
Change in current income taxes	158			—			—			—			158
Non-cash income from investment in subsidiaries	(133,336		)	—			(32		)	133,368			—
Change in intercompany receivables/payables	114,056			(145,250		)	31,194			—			—
(Increase) decrease in accounts receivable	1,131			50,514			(34		)	—			51,611
Increase in other current assets	(6,238		)	—			(6		)	—			(6,244		)
(Increase) decrease in inventory	2,415			(2,415		)	—			—			—
Decrease in accounts payable	(662		)	(2,757		)	—			—			(3,419		)
Decrease in other current liabilities	(16,946		)	(2,206		)	—			—			(19,152		)
Other	(1,755		)	(1,496		)	—			—			(3,251		)
Net cash provided by operating activities	109,603			260,352			31,186			—			401,141
Cash flows from investing activities:
Investment in oil and gas properties	(338,731		)	(558,003		)	(30,513		)	—			(927,247		)
Proceeds from sale of oil and gas properties, net of expenses	28,103			214,811			—			—			242,914
Investment in fixed and other assets	(10,182		)	—			—			—			(10,182		)
Change in restricted funds	(177,647		)	—			(425		)	—			(178,072		)
Investment in subsidiaries	—			—			(31,696		)	31,696			—
Net cash used in investing activities	(498,457		)	(343,192		)	(62,634		)	31,696			(872,587		)
Cash flows from financing activities:
Proceeds from issuance of common stock	225,999			—			—			—			225,999
Deferred financing costs	(3,371		)	—			—			—			(3,371		)
Equity proceeds from parent	—			—			31,696			(31,696		)	—
Net payments for share-based compensation	(7,182		)	—			—			—			(7,182		)
Net cash provided by financing activities	215,446			—			31,696			(31,696		)	215,446
Effect of exchange rate changes on cash	—			—			(736		)	—			(736		)
Net change in cash and cash equivalents	(173,408		)	(82,840		)	(488		)	—			(256,736		)
Cash and cash equivalents, beginning of period	246,294			84,290			640			—			331,224
Cash and cash equivalents, end of period	$	72,886		$	1,450		$	152		$	—		$	74,488