Guarantor Financial Statements (Tables)

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2013

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	174,530		$	51,202		$	640		$	—		$	226,372
Accounts receivable		76,622			260,432			—			(170,904	)		166,150
Fair value of hedging contracts		—			30,053			—			—			30,053
Current income tax receivable		26,530			—			—			—			26,530
Deferred taxes *		2,947			12,706			—			—			15,653
Inventory		3,723			283			—			—			4,006
Other current assets		3,872			—			—			—			3,872
Total current assets		288,224			354,676			640			(170,904	)		472,636
Oil and gas properties, full cost method:
Proved		1,132,623			6,345,858			—			—			7,478,481
Less: accumulated DD&A		(403,585	)		(5,267,420	)		—			—			(5,671,005	)
Net proved oil and gas properties		729,038			1,078,438			—			—			1,807,476
Unevaluated		290,344			235,187			9,448			—			534,979
Other property and equipment, net		22,517			—			—			—			22,517
Fair value of hedging contracts		—			13,221			—			—			13,221
Other assets, net		50,056			1,584			3,426			—			55,066
Investment in subsidiary		858,749			—			12,841			(871,590	)		—
Total assets	$	2,238,928		$	1,683,106		$	26,355			($1,042,494	)	$	2,905,895
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	245,554		$	19,238		$	77			($170,904	)	$	93,965
Undistributed oil and gas proceeds		24,378			2,902			—			—			27,280
Accrued interest		18,059			—			—			—			18,059
Fair value of hedging contracts		—			1,880			—			—			1,880
Asset retirement obligations		—			63,646			—			—			63,646
Other current liabilities		8,945			760			—			—			9,705
Total current liabilities		296,936			88,426			77			(170,904	)		214,535
Long-term debt		920,485			—			—			—			920,485
Deferred taxes *		38,609			327,468			—			—			366,077
Asset retirement obligations		5,665			414,752			—			—			420,417
Fair value of hedging contracts		—			436			—			—			436
Other long-term liabilities		26,197			6,712			—			—			32,909
Total liabilities		1,287,892			837,794			77			(170,904	)		1,954,859
Commitments and contingencies
Stockholders’ equity:
Common stock		487			—			—			—			487
Treasury stock		(860	)		—			—			—			(860	)
Additional paid-in capital		1,389,898			1,496,509			27,404			(1,523,913	)		1,389,898
Accumulated deficit		(463,019	)		(676,250	)		(80	)		676,330			(463,019	)
Accumulated other comprehensive income (loss)		24,530			25,053			(1,046	)		(24,007	)		24,530
Total stockholders’ equity		951,036			845,312			26,278			(871,590	)		951,036
Total liabilities and stockholders’ equity	$	2,238,928		$	1,683,106		$	26,355			($1,042,494	)	$	2,905,895

* Deferred income taxes have been allocated to the Guarantor Subsidiary where related oil and gas properties reside.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2012

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	228,398		$	51,128		$	—	$	—		$	279,526
Accounts receivable		59,213			108,075			—		—			167,288
Fair value of hedging contracts		—			39,655			—		—			39,655
Current income tax receivable		10,027			—			—		—			10,027
Deferred taxes *		5,947			9,567			—		—			15,514
Inventory		3,924			283			—		—			4,207
Other current assets		3,626			—			—		—			3,626
Total current assets		311,135			208,708			—		—			519,843
Oil and gas properties, full cost method:
Proved		1,004,808			6,239,658			—		—			7,244,466
Less: accumulated DD&A		(370,111	)		(5,140,055	)		—		—			(5,510,166	)
Net proved oil and gas properties		634,697			1,099,603			—		—			1,734,300
Unevaluated		254,757			193,038			—		—			447,795
Other property and equipment, net		22,115			—			—		—			22,115
Fair value of hedging contracts		—			9,199			—		—			9,199
Other assets, net		41,679			1,500			—		—			43,179
Investment in subsidiary		736,331			—			—		(736,331	)		—
Total assets	$	2,000,714		$	1,512,048		$	—		($736,331	)	$	2,776,431
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable to vendors	$	74,503		$	19,858		$	—	$	—		$	94,361
Undistributed oil and gas proceeds		21,841			1,573			—		—			23,414
Accrued interest		18,546			—			—		—			18,546
Fair value of hedging contracts		—			149			—		—			149
Asset retirement obligations		—			66,260			—		—			66,260
Other current liabilities		16,765			—			—		—			16,765
Total current liabilities		131,655			87,840			—		—			219,495
Long-term debt		914,126			—			—		—			914,126
Deferred taxes *		47,758			263,072			—		—			310,830
Asset retirement obligations		5,479			416,563			—		—			422,042
Fair value of hedging contracts		—			1,530			—		—			1,530
Other long-term liabilities		29,563			6,712			—		—			36,275
Total liabilities		1,128,581			775,717			—		—			1,904,298
Commitments and contingencies
Stockholders’ equity:
Common stock		484			—			—		—			484
Treasury stock		(860	)		—			—		—			(860	)
Additional paid-in capital		1,386,475			1,496,510			—		(1,496,510	)		1,386,475
Accumulated deficit		(542,799	)		(789,012	)		—		789,012			(542,799	)
Accumulated other comprehensive income		28,833			28,833			—		(28,833	)		28,833
Total stockholders’ equity		872,133			736,331			—		(736,331	)		872,133
Total liabilities and stockholders’ equity	$	2,000,714		$	1,512,048		$	—		($736,331	)	$	2,776,431

* Deferred income taxes have been allocated to the Guarantor Subsidiary where related oil and gas properties reside.

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2013

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	8,378		$	176,120		$	—		$	—		$	184,498
Gas production		20,071			27,761			—			—			47,832
Natural gas liquids production		6,378			4,822			—			—			11,200
Other operational income		790			189			—			—			979
Derivative income, net		—			1,368			—			—			1,368
Total operating revenue		35,617			210,260			—			—			245,877
Operating expenses:
Lease operating expenses		3,425			47,092			—			—			50,517
Transportation, processing and gathering expenses		5,729			3,167			—			—			8,896
Production taxes		1,320			2,771			—			—			4,091
Depreciation, depletion, amortization		25,088			62,121			—			—			87,209
Accretion expense		93			8,225			—			—			8,318
Salaries, general and administrative		15,150			—			48			—			15,198
Incentive compensation expense		2,050			—			—			—			2,050
Other operational expenses		51			22			—			—			73
Total operating expenses		52,906			123,398			48			—			176,352
Income (loss) from operations		(17,289	)		86,862			(48	)		—			69,525
Other (income) expenses:
Interest expense		8,882			13			—			—			8,895
Interest income		(70	)		(38	)		(7	)		—			(115	)
Other income		(217	)		(465	)		—			—			(682	)
(Income) loss from investment in subsidiaries		(55,893	)		—			39			55,854			—
Total other (income) expenses		(47,298	)		(490	)		32			55,854			8,098
Income (loss) before taxes		30,009			87,352			(80	)		(55,854	)		61,427
Provision (benefit) for income taxes:
Current		(6,993	)		—			—			—			(6,993	)
Deferred		(2,020	)		31,418			—			—			29,398
Total income taxes		(9,013	)		31,418			—			—			22,405
Net income (loss)	$	39,022		$	55,934			($80	)		($55,854	)	$	39,022
Comprehensive income (loss)	$	53,060		$	55,934			($80	)		($55,854	)	$	53,060

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2012

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	6,813		$	175,368		$	—		$	—		$	182,181
Gas production		5,865			22,281			—			—			28,146
Natural gas liquids production		1,710			8,156			—			—			9,866
Other operational income		762			77			113			—			952
Derivative income, net		—			5,416			—			—			5,416
Total operating revenue		15,150			211,298			113			—			226,561
Operating expenses:
Lease operating expenses		6,318			45,443			(206	)		—			51,555
Transportation, processing and gathering expenses		1,710			3,782			—			—			5,492
Production taxes		507			1,851			—			—			2,358
Depreciation, depletion, amortization		15,071			71,969			93			—			87,133
Accretion expense		137			8,033			85			—			8,255
Salaries, general and administrative		14,190			(1,047	)		—			—			13,143
Incentive compensation expense		2,398			—			—			—			2,398
Other operational expenses		47			24			—			—			71
Total operating expenses		40,378			130,055			(28	)		—			170,405
Income (loss) from operations		(25,228	)		81,243			141			—			56,156
Other (income) expenses:
Interest expense		7,672			12			—			—			7,684
Interest income		(74	)		(5	)		—			—			(79	)
Other income		(4	)		(362	)		—			—			(366	)
Income from investment in subsidiaries		(52,313	)		(140	)		—			52,453			—
Total other (income) expenses		(44,719	)		(495	)		—			52,453			7,239
Income before taxes		19,491			81,738			141			(52,453	)		48,917
Provision (benefit) for income taxes:
Current		(665	)		—			—			—			(665	)
Deferred		(10,391	)		29,426			—			—			19,035
Total income taxes		(11,056	)		29,426			—			—			18,370
Net income	$	30,547		$	52,312		$	141			($52,453	)	$	30,547
Comprehensive income	$	93,749		$	52,312		$	141			($52,453	)	$	93,749

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2013

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	13,721		$	357,702		$	—		$	—		$	371,423
Gas production		27,269			57,385			—			—			84,654
Natural gas liquids production		8,677			11,701			—			—			20,378
Other operational income		1,439			347			—			—			1,786
Derivative income, net		—			147			—			—			147
Total operating revenue		51,106			427,282			—			—			478,388
Operating expenses:
Lease operating expenses		5,716			97,845			—			—			103,561
Transportation, processing and gathering expenses		7,781			6,512			—			—			14,293
Production taxes		2,187			3,993			—			—			6,180
Depreciation, depletion, amortization		35,279			127,365			—			—			162,644
Accretion expense		186			16,395			—			—			16,581
Salaries, general and administrative		29,098			4			48			—			29,150
Incentive compensation expense		3,481			—			—			—			3,481
Other operational expenses		101			44			—			—			145
Total operating expenses		83,829			252,158			48			—			336,035
Income (loss) from operations		(32,723	)		175,124			(48	)		—			142,353
Other (income) expenses:
Interest expense		18,509			21			—			—			18,530
Interest income		(150	)		(75	)		(7	)		—			(232	)
Other income		(441	)		(967	)		—			—			(1,408	)
(Income) loss from investment in subsidiaries		(112,721	)		—			39			112,682			—
Total other (income) expenses		(94,803	)		(1,021	)		32			112,682			16,890
Income (loss) before taxes		62,080			176,145			(80	)		(112,682	)		125,463
Provision (benefit) for income taxes:
Current		(10,739	)		—			—			—			(10,739	)
Deferred		(6,961	)		63,383			—			—			56,422
Total income taxes		(17,700	)		63,383			—			—			45,683
Net income (loss)	$	79,780		$	112,762			($80	)		($112,682	)	$	79,780
Comprehensive income (loss)	$	75,477		$	112,762			($80	)		($112,682	)	$	75,477

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2012

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenue:
Oil production	$	13,047		$	370,892		$	—		$	—		$	383,939
Gas production		11,496			45,507			—			—			57,003
Natural gas liquids production		5,574			17,744			—			—			23,318
Other operational income		1,456			140			246			—			1,842
Derivative income, net		—			4,931			—			—			4,931
Total operating revenue		31,573			439,214			246			—			471,033
Operating expenses:
Lease operating expenses		11,222			84,830			(17	)		—			96,035
Transportation, processing and gathering expenses		4,198			4,951			—			—			9,149
Production taxes		1,670			4,066			—			—			5,736
Depreciation, depletion, amortization		26,548			144,969			191			—			171,708
Accretion expense		285			16,065			171			—			16,521
Salaries, general and administrative		26,844			4			—			—			26,848
Incentive compensation expense		3,840			—			—			—			3,840
Other operational expenses		89			24			—			—			113
Total operating expenses		74,696			254,909			345			—			329,950
Income (loss) from operations		(43,123	)		184,305			(99	)		—			141,083
Other (income) expenses:
Interest expense		13,518			(103	)		—			—			13,415
Interest income		(104	)		(6	)		—			—			(110	)
Other income		(23	)		(763	)		—			—			(786	)
(Income) loss from investment in subsidiaries		(118,450	)		99			—			118,351			—
Total other (income) expenses		(105,059	)		(773	)		—			118,351			12,519
Income (loss) before taxes		61,936			185,078			(99	)		(118,351	)		128,564
Provision (benefit) for income taxes:
Current		569			—			—			—			569
Deferred		(20,154	)		66,628			—			—			46,474
Total income taxes		(19,585	)		66,628			—			—			47,043
Net income (loss)	$	81,521		$	118,450			($99	)		($118,351	)	$	81,521
Comprehensive income (loss)	$	122,658		$	118,450			($99	)		($118,351	)	$	122,658

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2013

(In thousands)

	Parent			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	79,780		$	112,762			($80	)	($	112,682	)	$	79,780
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		35,279			127,365			—			—			162,644
Accretion expense		186			16,395			—			—			16,581
Deferred income tax provision (benefit)		(6,961	)		63,383			—			—			56,422
Settlement of asset retirement obligations		—			(37,335	)		—			—			(37,335	)
Non-cash stock compensation expense		4,866			—			—			—			4,866
Excess tax benefits		(104	)		—			—			—			(104	)
Non-cash derivative expense		—			311			—			—			311
Non-cash interest expense		8,181			—			—			—			8,181
Non-cash (income) loss from investment in subsidiaries		(112,722	)		—			40			112,682			—
Change in current income taxes		(16,399	)		—			—			—			(16,399	)
Change in intercompany receivables/payables		170,815			(170,859	)		44			—			—
(Increase) decrease in accounts receivable		(17,365	)		18,503			—			—			1,138
Increase in other current assets		(245	)		—			—			—			(245	)
Decrease in inventory		158			—			—			—			158
Increase in accounts payable		4,507			2,086			—			—			6,593
Increase (decrease) in other current liabilities		(5,258	)		2,088			—			—			(3,170	)
Other		(2,482	)		(966	)		—			—			(3,448	)
Net cash provided by operating activities		142,236			133,733			4			—			275,973
Cash flows from investing activities:
Investment in oil and gas properties		(176,896	)		(133,659	)		(9,663	)		—			(320,218	)
Investment in fixed and other assets		(1,711	)		—			—			—			(1,711	)
Change in restricted funds		—			—			(3,515	)		—			(3,515	)
Investment in subsidiaries		(14,000	)		—			(13,404	)		27,404			—
Net cash used in investing activities		(192,607	)		(133,659	)		(26,582	)		27,404			(325,444	)
Cash flows from financing activities:
Deferred financing costs		(11	)		—			—			—			(11	)
Excess tax benefits		104			—			—			—			104
Equity proceeds from parent		—			—			27,404			(27,404	)		—
Net payments for share based compensation		(3,590	)		—			—			—			(3,590	)
Net cash (used in) provided by financing activities		(3,497	)		—			27,404			(27,404	)		(3,497	)
Effect of exchange rate changes on cash		—			—			(186	)		—			(186	)
Net change in cash and cash equivalents		(53,868	)		74			640			—			(53,154	)
Cash and cash equivalents, beginning of period		228,398			51,128			—			—			279,526
Cash and cash equivalents, end of period	$	174,530		$	51,202		$	640		$	—		$	226,372

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2012

(In thousands)

	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	81,521		$	118,450		($	99	)	($	118,351	)	$	81,521
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		26,548			144,969			191			—			171,708
Accretion expense		285			16,065			171			—			16,521
Deferred income tax provision (benefit)		(20,154	)		66,628			—			—			46,474
Settlement of asset retirement obligations		—			(21,918	)		—			—			(21,918	)
Non-cash stock compensation expense		4,271			—			—			—			4,271
Excess tax benefits		(795	)		—			—			—			(795	)
Non-cash derivative income		—			(2,758	)		—			—			(2,758	)
Non-cash interest expense		5,278			—			—			—			5,278
Change in current income taxes		(3,921	)		—			—			—			(3,921	)
Change in intercompany receivables/payables		142,965			(142,720	)		(245	)		—			—
(Increase) decrease in accounts receivable		(36,705	)		(833	)		21			—			(37,517	)
Increase in other current assets		(124	)		—			—			—			(124	)
Decrease in inventory		36			—			—			—			36
Increase (decrease) in accounts payable		5,238			3,214			(39	)		—			8,413
Decrease in other current liabilities		(12,924	)		(4,380	)		—			—			(17,304	)
Other		(118,152	)		(663	)		(1	)		118,351			(465	)
Net cash provided by (used in) operating activities		73,367			176,054			(1	)		—			249,420
Cash flows from investing activities:
Investment in oil and gas properties		(129,792	)		(146,022	)		1			—			(275,813	)
Proceeds from sale of oil and gas properties, net of expenses		403			—			—			—			403
Sale of fixed assets		149			—			—			—			149
Investment in fixed and other assets		(1,900	)		—			—			—			(1,900	)
Net cash (used in) provided by investing activities		(131,140	)		(146,022	)		1			—			(277,161	)
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
Deferred 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		795			—			—			—			795
Net payments for share based compensation		(3,141	)		—			—			—			(3,141	)
Net cash provided by financing activities		213,139			—			—			—			213,139
Net change in cash and cash equivalents		155,366			30,032			—			—			185,398
Cash and cash equivalents, beginning of period		37,389			926			136			—			38,451
Cash and cash equivalents, end of period	$	192,755		$	30,958		$	136		$	—		$	223,849