Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2012

Guarantor Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	222,750		$	40,955		$	136		$	—		$	263,841
Accounts receivable		37,849			113,735			1,466			(19,784	)		133,266
Fair value of hedging contracts		—			24,352			—			—			24,352
Current income tax receivable		23,140			—			—			—			23,140
Deferred taxes *		3,194			27,012			—			—			30,206
Inventory		4,360			283			—			—			4,643
Other current assets		754			—			—			—			754
Total current assets		292,047			206,337			1,602			(19,784	)		480,202
Oil and gas properties, full cost method:
Proved		672,697			6,027,024			5,051			—			6,704,772
Less: accumulated DD&A		(321,084	)		(4,929,353	)		(2,457	)		—			(5,252,894	)
Net proved oil and gas properties		351,613			1,097,671			2,594			—			1,451,878
Unevaluated		275,920			167,969			—			—			443,889
Other property and equipment, net		11,444			—			—			—			11,444
Fair value of hedging contracts		—			10,937			—			—			10,937
Other assets, net		27,494			1,469			—			—			28,963
Investment in subsidiary		777,606			(512	)		—			(777,094	)		—
Total assets	$	1,736,124		$	1,483,871		$	4,196		($	796,878	)	$	2,427,313
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	92,986		$	12,898		$	208		($	19,785	)	$	86,307
Undistributed oil and gas proceeds		24,810			1,549			—			—			26,359
Accrued interest		10,490			—			—			—			10,490
Fair value of hedging contracts		—			27,298			—			—			27,298
Asset retirement obligations		—			71,256			—			—			71,256
Other current liabilities		4,613			6,127			—			—			10,740
Total current liabilities		132,899			119,128			208			(19,785	)		232,450
Long-term debt		805,140			—			—			—			805,140
Deferred taxes *		42,131			224,865			—			—			266,996
Asset retirement obligations		7,240			347,533			4,501			—			359,274
Fair value of hedging contracts		—			8,025			—			—			8,025
Other long-term liabilities		13,809			6,714			—			—			20,523
Total liabilities		1,001,219			706,265			4,709			(19,785	)		1,692,408
Commitments and contingencies
Stockholders’ equity:
Common stock		483			—			—			—			483
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,376,730			1,724,232			1,639			(1,725,871	)		1,376,730
Accumulated earnings (deficit)		(641,251	)		(946,429	)		(2,152	)		948,581			(641,251	)
Accumulated other comprehensive income (loss)		(197	)		(197	)		—			197			(197	)
Total stockholders’ equity		734,905			777,606			(513	)		(777,093	)		734,905
Total liabilities and stockholders’ equity	$	1,736,124		$	1,483,871		$	4,196		($	796,878	)	$	2,427,313

* Deferred income taxes have been allocated to guarantor subsidiary where related oil and gas properties reside.

	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	37,389		$	926		$	136		$	—		$	38,451
Accounts receivable		36,463			81,452			1,353			(1,129	)		118,139
Fair value of hedging contracts		—			25,177			—			—			25,177
Current income tax receivable		19,946			—			—			—			19,946
Deferred taxes *		8,269			17,803			—			—			26,072
Inventory		4,360			283			—			—			4,643
Other current assets		791			—			—			—			791
Total current assets		107,218			125,641			1,489			(1,129	)		233,219
Oil and gas properties, full cost method:
Proved		696,975			5,946,141			5,052			—			6,648,168
Less: accumulated DD&A		(309,421	)		(4,862,949	)		(2,359	)		—			(5,174,729	)
Net proved oil and gas properties		387,554			1,083,192			2,693			—			1,473,439
Unevaluated		246,269			155,340			—			—			401,609
Other property and equipment, net		11,172			—			—			—			11,172
Fair value of hedging contracts		—			22,543			—			—			22,543
Other assets, net		20,873			2,896			—			—			23,769
Investment in subsidiary		733,533			(273	)		—			(733,260	)		—
Total assets	$	1,506,619		$	1,389,339		$	4,182		($	734,389	)	$	2,165,751
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	78,170		$	25,866		$	39		($	1,129	)	$	102,946
Undistributed oil and gas proceeds		26,036			1,292			—			—			27,328
Accrued interest		14,059			—			—			—			14,059
Fair value of hedging contracts		—			11,122			—			—			11,122
Asset retirement obligations		—			62,676			—			—			62,676
Other current liabilities		22,974			5,396			—			—			28,370
Total current liabilities		141,239			106,352			39			(1,129	)		246,501
Long-term debt		620,000			—			—			—			620,000
Deferred taxes *		56,970			190,865			—			—			247,835
Asset retirement obligations		7,626			351,061			4,416			—			363,103
Fair value of hedging contracts		—			815			—			—			815
Other long-term liabilities		12,955			6,713			—			—			19,668
Total liabilities		838,790			655,806			4,455			(1,129	)		1,497,922
Commitments and contingencies
Stockholders’ equity:
Common stock		481			—			—			—			481
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,338,565			1,724,232			1,639			(1,725,871	)		1,338,565
Accumulated earnings (deficit)		(692,225	)		(1,012,567	)		(1,912	)		1,014,479			(692,225	)
Accumulated other comprehensive income (loss)		21,868			21,868			—			(21,868	)		21,868
Total stockholders’ equity		667,829			733,533			(273	)		(733,260	)		667,829
Total liabilities and stockholders’ equity	$	1,506,619		$	1,389,339		$	4,182		($	734,389	)	$	2,165,751

* Deferred income taxes have been allocated to guarantor subsidiary where related oil and gas properties reside.

Consolidating Statement of Operations

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	6,234		$	195,524		$	—		$	—		$	201,758
Gas production		5,631			23,226			—			—			28,857
Natural gas liquids production		3,864			9,588			—			—			13,452
Other operational income		694			63			133			—			890
Total operating revenue		16,423			228,401			133			—			244,957
Operating expenses:
Lease operating expenses		4,904			39,387			189			—			44,480
Transportation, processing and gathering expenses		2,488			1,169			—			—			3,657
Other operational expenses		42			—			—			—			42
Production taxes		1,163			2,215			—			—			3,378
Depreciation, depletion, amortization		11,477			73,000			98			—			84,575
Accretion expense		148			8,032			86			—			8,266
Salaries, general and administrative		12,654			1,051			—			—			13,705
Incentive compensation expense		1,442			—			—			—			1,442
Derivative expense, net		—			485			—			—			485
Total operating expenses		34,318			125,339			373			—			160,030
Income (loss) from operations		(17,895	)		103,062			(240	)		—			84,927
Other (income) expenses:
Interest expense		5,846			(115	)		—			—			5,731
Interest income		(30	)		(1	)		—			—			(31	)
Other income		(19	)		(401	)		—			—			(420	)
(Income) loss from investment in subsidiaries		(66,137	)		239			—			65,898			—
Total other (income) expenses		(60,340	)		(278	)		—			65,898			5,280
Income (loss) before taxes		42,445			103,340			(240	)		(65,898	)		79,647
Provision (benefit) for income taxes:
Current		1,234			—			—			—			1,234
Deferred		(9,763	)		37,202			—			—			27,439
Total income taxes		(8,529	)		37,202			—			—			28,673
Net income (loss)	$	50,974		$	66,138		($	240	)	($	65,898	)	$	50,974
Comprehensive income (loss)	$	28,909		$	66,138		($	240	)	($	65,898	)	$	28,909

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	786		$	151,209		$	—		$	—		$	151,995
Gas production		1,280			39,880			—			—			41,160
Natural gas liquids production		—			5,999			—			—			5,999
Other operational income		722			(19	)		182			—			885
Total operating revenue		2,788			197,069			182			—			200,039
Operating expenses:
Lease operating expenses		356			37,931			—			—			38,287
Transportation, processing and gathering expenses		—			1,820			—			—			1,820
Other operational expenses		—			662			—			—			662
Production taxes		147			2,388			—			—			2,535
Depreciation, depletion, amortization		5,942			61,510			217			—			67,669
Accretion expense		4			7,622			91			—			7,717
Salaries, general and administrative		11,731			2			—			—			11,733
Incentive compensation expense		2,684			—			—			—			2,684
Derivative expense, net		—			2,180			—			—			2,180
Total operating expenses		20,864			114,115			308			—			135,287
Income (loss) from operations		(18,076	)		82,954			(126	)		—			64,752
Other (income) expenses:
Interest expense		3,031			80			—			—			3,111
Interest income		(88	)		(6	)		—			—			(94	)
Other income		—			(567	)		3			—			(564	)
Other expense		123			1			—			—			124
(Income) loss from investment in subsidiary		(53,323	)		129			—			53,194			—
Total other (income) expenses		(50,257	)		(363	)		3			53,194			2,577
Income (loss) before taxes		32,181			83,317			(129	)		(53,194	)		62,175
Provision (benefit) for income taxes:
Current		—			—			—			—			—
Deferred		(7,611	)		29,994			—			—			22,383
Total income taxes		(7,611	)		29,994			—			—			22,383
Net income (loss)	$	39,792		$	53,323		($	129	)	($	53,194	)	$	39,792
Comprehensive income (loss)	$	7,318		$	53,323		($	129	)	($	53,194	)	$	7,318

Consolidating Statement of Cash Flows

	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	50,974		$	66,138		($	240	)	($	65,898	)	$	50,974
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		11,477			73,000			98			—			84,575
Accretion expense		148			8,032			86			—			8,266
Deferred income tax provision (benefit)		(9,763	)		37,202			—			—			27,439
Settlement of asset retirement obligations		—			(2,980	)		—			—			(2,980	)
Non-cash stock compensation expense		1,750			—			—			—			1,750
Excess tax benefits		(847	)		—			—			—			(847	)
Non-cash derivative expense		—			1,342			—			—			1,342
Non-cash (income) loss from investment in subsidiaries		(65,737	)		(161	)		—			65,898			—
Other non-cash expenses		1,173			—			—			—			1,173
Change in current income taxes		(2,647	)		—			—			—			(2,647	)
Change in intercompany receivables/payables		18,655			(18,445	)		(210	)		—			—
(Increase) decrease in accounts receivable		(983	)		(20,823	)		98			—			(21,708	)
Decrease in other current assets		35			—			—			—			35
Increase (decrease) in accounts payable		(25	)		(6,157	)		167			—			(6,015	)
Increase (decrease) in other current liabilities		(23,155	)		987			—			—			(22,168	)
Other		146			—			—			—			146
Net cash provided by (used in) operating activities		(18,799	)		138,135			(1	)		—			119,335
Cash flows from investing activities:
Investment in oil and gas properties		(8,364	)		(98,106	)		1			—			(106,469	)
Sale of fixed assets		134			—			—			—			134
Investment in fixed and other assets		(909	)		—			—			—			(909	)
Net cash provided by (used in) investing activities		(9,139	)		(98,106	)		1			—			(107,244	)
Cash flows from financing activities:
Proceeds from bank borrowings		25,000			—			—			—			25,000
Repayments of bank borrowings		(70,000	)		—			—			—			(70,000	)
Proceeds from issuance of senior convertible notes		300,000			—			—			—			300,000
Financing costs of senior convertible notes		(8,855	)		—			—			—			(8,855	)
Proceeds from Sold Warrants		40,170			—			—			—			40,170
Payments for Purchased Call Options		(70,830	)		—			—			—			(70,830	)
Excess tax benefits		847			—			—			—			847
Net payments for share based compensation		(3,033	)		—			—			—			(3,033	)
Net cash provided by financing activities		213,299			—			—			—			213,299
Net change in cash and cash equivalents		185,361			40,029			—			—			225,390
Cash and cash equivalents, beginning of period		37,389			926			136			—			38,451
Cash and cash equivalents, end of period	$	222,750		$	40,955		$	136		$	—		$	263,841

	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	39,792		$	53,323		($	129	)	($	53,194	)	$	39,792
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		5,942			61,510			217			—			67,669
Accretion expense		4			7,622			91			—			7,717
Deferred income tax provision (benefit)		(7,611	)		29,994			—			—			22,383
Settlement of asset retirement obligations		—			(19,034	)		—			—			(19,034	)
Non-cash stock compensation expense		1,680			—			—			—			1,680
Excess tax benefits		(649	)		—			—			—			(649	)
Non-cash derivative expense		—			1,804			—			—			1,804
Non-cash (income) loss from investment in subsidiary		(52,756	)		(438	)		—			53,194			—
Other non-cash income		(104	)		—			—			—			(104	)
Change in current income taxes		(3,681	)		—			—			—			(3,681	)
Change in intercompany receivables/payables		44,230			(43,804	)		(426	)		—			—
(Increase) decrease in accounts receivable		6,833			(28,509	)		121			—			(21,555	)
Decrease in other current assets		25			—			—			—			25
Decrease in inventory		365			—			—			—			365
Increase in accounts payable		2,609			81			—			—			2,690
Increase (decrease) in other current liabilities		(10,929	)		870			—			—			(10,059	)
Other		272			—			—			—			272
Net cash provided by (used in) operating activities		26,022			63,419			(126	)		—			89,315
Cash flows from investing activities:
Investment in oil and gas properties		(89,444	)		(67,087	)		(4	)		—			(156,535	)
Proceeds from sale of oil and gas properties		5,575			2,117			—			—			7,692
Investment in fixed and other assets		(262	)		—			—			—			(262	)
Net cash used in investing activities		(84,131	)		(64,970	)		(4	)		—			(149,105	)
Cash flows from financing activities:
Deferred financing costs		(66	)		—			—			—			(66	)
Excess tax benefits		649			—			—			—			649
Net payments for share based compensation		(1,843	)		—			—			—			(1,843	)
Net cash used in financing activities		(1,260	)		—			—			—			(1,260	)
Net change in cash and cash equivalents		(59,369	)		(1,551	)		(130	)		—			(61,050	)
Cash and cash equivalents, beginning of period		105,115			1,659			182			—			106,956
Cash and cash equivalents, end of period	$	45,746		$	108		$	52		$	—		$	45,906