| Condensed Consolidating Balance Sheets |
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
71,934 |
|
|
$ |
30,550 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
102,485 |
|
Accounts receivable - oil and gas |
106,008 |
|
|
52,146 |
|
|
— |
|
|
— |
|
|
158,154 |
|
Accounts receivable - related parties |
39 |
|
|
— |
|
|
— |
|
|
— |
|
|
39 |
|
Accounts receivable - intercompany |
447,275 |
|
|
35,434 |
|
|
— |
|
|
(482,709 |
) |
|
— |
|
Prepaid expenses and other current assets |
12,330 |
|
|
3,675 |
|
|
— |
|
|
— |
|
|
16,005 |
|
Short-term derivative instruments |
18,925 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,925 |
|
Total current assets |
656,511 |
|
|
121,805 |
|
|
1 |
|
|
(482,709 |
) |
|
295,608 |
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting |
5,869,066 |
|
|
2,277,984 |
|
|
— |
|
|
(729 |
) |
|
8,146,321 |
|
Other property and equipment |
75,064 |
|
|
43 |
|
|
— |
|
|
— |
|
|
75,107 |
|
Accumulated depletion, depreciation, amortization and impairment |
(3,855,594 |
) |
|
(35 |
) |
|
— |
|
|
— |
|
|
(3,855,629 |
) |
Property and equipment, net |
2,088,536 |
|
|
2,277,992 |
|
|
— |
|
|
(729 |
) |
|
4,365,799 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
2,120,462 |
|
|
40,661 |
|
|
46,838 |
|
|
(1,956,591 |
) |
|
251,370 |
|
Long-term derivative instruments |
23,515 |
|
|
— |
|
|
— |
|
|
— |
|
|
23,515 |
|
Deferred tax asset |
4,692 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,692 |
|
Other assets |
8,765 |
|
|
4,180 |
|
|
— |
|
|
— |
|
|
12,945 |
|
Total other assets |
2,157,434 |
|
|
44,841 |
|
|
46,838 |
|
|
(1,956,591 |
) |
|
292,522 |
|
Total assets |
$ |
4,902,481 |
|
|
$ |
2,444,638 |
|
|
$ |
46,839 |
|
|
$ |
(2,440,029 |
) |
|
$ |
4,953,929 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
326,175 |
|
|
$ |
79,964 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
406,139 |
|
Accounts payable - intercompany |
35,005 |
|
|
447,577 |
|
|
127 |
|
|
(482,709 |
) |
|
— |
|
Asset retirement obligation |
195 |
|
|
— |
|
|
— |
|
|
— |
|
|
195 |
|
Derivative instruments |
67,179 |
|
|
— |
|
|
— |
|
|
— |
|
|
67,179 |
|
Current maturities of long-term debt |
452 |
|
|
— |
|
|
— |
|
|
— |
|
|
452 |
|
Total current liabilities |
429,006 |
|
|
527,541 |
|
|
127 |
|
|
(482,709 |
) |
|
473,965 |
|
Long-term derivative instrument |
5,259 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,259 |
|
Asset retirement obligation |
34,653 |
|
|
6,489 |
|
|
— |
|
|
— |
|
|
41,142 |
|
Long-term debt, net of current maturities |
1,631,809 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,631,809 |
|
Total liabilities |
2,100,727 |
|
|
534,030 |
|
|
127 |
|
|
(482,709 |
) |
|
2,152,175 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
1,828 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,828 |
|
Paid-in capital |
4,408,236 |
|
|
1,872,598 |
|
|
257,700 |
|
|
(2,130,298 |
) |
|
4,408,236 |
|
Accumulated other comprehensive (loss) income |
(51,685 |
) |
|
— |
|
|
(49,613 |
) |
|
49,613 |
|
|
(51,685 |
) |
Retained (deficit) earnings |
(1,556,625 |
) |
|
38,010 |
|
|
(161,375 |
) |
|
123,365 |
|
|
(1,556,625 |
) |
Total stockholders’ equity |
2,801,754 |
|
|
1,910,608 |
|
|
46,712 |
|
|
(1,957,320 |
) |
|
2,801,754 |
|
Total liabilities and stockholders’ equity
|
$ |
4,902,481 |
|
|
$ |
2,444,638 |
|
|
$ |
46,839 |
|
|
$ |
(2,440,029 |
) |
|
$ |
4,953,929 |
|
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,273,882 |
|
|
$ |
1,993 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,275,875 |
|
Restricted Cash |
185,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
$ |
185,000 |
|
Accounts receivable - oil and gas |
137,087 |
|
|
37,496 |
|
|
— |
|
|
(37,822 |
) |
|
136,761 |
|
Accounts receivable - related parties |
16 |
|
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
Accounts receivable - intercompany |
449,517 |
|
|
1,151 |
|
|
— |
|
|
(450,668 |
) |
|
— |
|
Prepaid expenses and other current assets |
6,230 |
|
|
1,409 |
|
|
— |
|
|
— |
|
|
7,639 |
|
Short-term derivative instruments |
3,488 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,488 |
|
Total current assets |
2,055,220 |
|
|
42,049 |
|
|
— |
|
|
(488,490 |
) |
|
1,608,779 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting, |
5,655,125 |
|
|
417,524 |
|
|
— |
|
|
(729 |
) |
|
6,071,920 |
|
Other property and equipment |
68,943 |
|
|
43 |
|
|
— |
|
|
— |
|
|
68,986 |
|
Accumulated depletion, depreciation, amortization and impairment |
(3,789,746 |
) |
|
(34 |
) |
|
— |
|
|
— |
|
|
(3,789,780 |
) |
Property and equipment, net |
1,934,322 |
|
|
417,533 |
|
|
— |
|
|
(729 |
) |
|
2,351,126 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
236,327 |
|
|
33,590 |
|
|
45,213 |
|
|
(71,210 |
) |
|
243,920 |
|
Long-term derivative instruments |
5,696 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,696 |
|
Deferred tax asset |
4,692 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,692 |
|
Other assets |
8,932 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,932 |
|
Total other assets |
255,647 |
|
|
33,590 |
|
|
45,213 |
|
|
(71,210 |
) |
|
263,240 |
|
Total assets |
$ |
4,245,189 |
|
|
$ |
493,172 |
|
|
$ |
45,213 |
|
|
$ |
(560,429 |
) |
|
$ |
4,223,145 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
255,966 |
|
|
$ |
9,158 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
265,124 |
|
Accounts payable - intercompany |
31,202 |
|
|
457,163 |
|
|
126 |
|
|
(488,491 |
) |
|
— |
|
Asset retirement obligation |
195 |
|
|
— |
|
|
— |
|
|
— |
|
|
195 |
|
Derivative instruments |
119,219 |
|
|
— |
|
|
— |
|
|
— |
|
|
119,219 |
|
Current maturities of long-term debt |
276 |
|
|
— |
|
|
— |
|
|
— |
|
|
276 |
|
Total current liabilities |
406,858 |
|
|
466,321 |
|
|
126 |
|
|
(488,491 |
) |
|
384,814 |
|
|
|
|
|
|
|
|
|
|
|
Long-term derivative instrument |
26,759 |
|
|
— |
|
|
— |
|
|
— |
|
|
26,759 |
|
Asset retirement obligation |
34,081 |
|
|
— |
|
|
— |
|
|
— |
|
|
34,081 |
|
Long-term debt, net of current maturities |
1,593,599 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,593,599 |
|
Total liabilities |
2,061,297 |
|
|
466,321 |
|
|
126 |
|
|
(488,491 |
) |
|
2,039,253 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
1,588 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,588 |
|
Paid-in capital |
3,946,442 |
|
|
33,822 |
|
|
257,026 |
|
|
(290,848 |
) |
|
3,946,442 |
|
Accumulated other comprehensive (loss) income |
(53,058 |
) |
|
— |
|
|
(50,931 |
) |
|
50,931 |
|
|
(53,058 |
) |
Retained (deficit) earnings |
(1,711,080 |
) |
|
(6,971 |
) |
|
(161,008 |
) |
|
167,979 |
|
|
(1,711,080 |
) |
Total stockholders’ equity |
2,183,892 |
|
|
26,851 |
|
|
45,087 |
|
|
(71,938 |
) |
|
2,183,892 |
|
Total liabilities and stockholders’ equity
|
$ |
4,245,189 |
|
|
$ |
493,172 |
|
|
$ |
45,213 |
|
|
$ |
(560,429 |
) |
|
$ |
4,223,145 |
|
|
| Condensed Consolidating Statements of Operations |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2017 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
272,441 |
|
|
$ |
60,563 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
333,004 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
17,449 |
|
|
1,854 |
|
|
— |
|
|
— |
|
|
19,303 |
|
Production taxes |
3,102 |
|
|
804 |
|
|
— |
|
|
— |
|
|
3,906 |
|
Midstream gathering and processing |
37,724 |
|
|
10,217 |
|
|
— |
|
|
— |
|
|
47,941 |
|
Depreciation, depletion, and amortization |
65,990 |
|
|
1 |
|
|
— |
|
|
— |
|
|
65,991 |
|
General and administrative |
12,874 |
|
|
(275 |
) |
|
1 |
|
|
— |
|
|
12,600 |
|
Accretion expense |
282 |
|
|
— |
|
|
— |
|
|
— |
|
|
282 |
|
Acquisition expense |
— |
|
|
1,298 |
|
|
— |
|
|
— |
|
|
1,298 |
|
|
137,421 |
|
|
13,899 |
|
|
1 |
|
|
— |
|
|
151,321 |
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM OPERATIONS |
135,020 |
|
|
46,664 |
|
|
(1 |
) |
|
— |
|
|
181,683 |
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest expense |
25,048 |
|
|
(1,569 |
) |
|
— |
|
|
— |
|
|
23,479 |
|
Interest income |
(842 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(842 |
) |
(Income) loss from equity method investments and investments in subsidiaries |
(42,614 |
) |
|
2,541 |
|
|
365 |
|
|
44,615 |
|
|
4,907 |
|
Other (income) expense |
(1,027 |
) |
|
(189 |
) |
|
— |
|
|
900 |
|
|
(316 |
) |
|
(19,435 |
) |
|
783 |
|
|
365 |
|
|
45,515 |
|
|
27,228 |
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
154,455 |
|
|
45,881 |
|
|
(366 |
) |
|
(45,515 |
) |
|
154,455 |
|
INCOME TAX EXPENSE |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ |
154,455 |
|
|
$ |
45,881 |
|
|
$ |
(366 |
) |
|
$ |
(45,515 |
) |
|
$ |
154,455 |
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2016 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
156,751 |
|
|
$ |
210 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
156,961 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
16,472 |
|
|
185 |
|
|
— |
|
|
— |
|
|
16,657 |
|
Production taxes |
3,087 |
|
|
24 |
|
|
— |
|
|
— |
|
|
3,111 |
|
Midstream gathering and processing |
37,623 |
|
|
29 |
|
|
— |
|
|
— |
|
|
37,652 |
|
Depreciation, depletion, and amortization |
65,476 |
|
|
1 |
|
|
— |
|
|
— |
|
|
65,477 |
|
Impairment of oil and gas properties |
218,991 |
|
|
— |
|
|
— |
|
|
— |
|
|
218,991 |
|
General and administrative |
10,612 |
|
|
6 |
|
|
2 |
|
|
— |
|
|
10,620 |
|
Accretion expense |
247 |
|
|
— |
|
|
— |
|
|
— |
|
|
247 |
|
|
352,508 |
|
|
245 |
|
|
2 |
|
|
— |
|
|
352,755 |
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
(195,757 |
) |
|
(35 |
) |
|
(2 |
) |
|
— |
|
|
(195,794 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest expense |
16,022 |
|
|
1 |
|
|
— |
|
|
— |
|
|
16,023 |
|
Interest income |
(94 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(94 |
) |
Loss (income) from equity method investments and investments in subsidiaries |
30,773 |
|
|
— |
|
|
23,685 |
|
|
(23,721 |
) |
|
30,737 |
|
Other income |
— |
|
|
(2 |
) |
|
— |
|
|
— |
|
|
(2 |
) |
|
46,701 |
|
|
(1 |
) |
|
23,685 |
|
|
(23,721 |
) |
|
46,664 |
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE INCOME TAXES |
(242,458 |
) |
|
(34 |
) |
|
(23,687 |
) |
|
23,721 |
|
|
(242,458 |
) |
INCOME TAX BENEFIT |
(191 |
) |
|
|
|
|
|
|
|
|
|
|
(191 |
) |
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME |
$ |
(242,267 |
) |
|
$ |
(34 |
) |
|
$ |
(23,687 |
) |
|
$ |
23,721 |
|
|
$ |
(242,267 |
) |
|
| Condensed Consolidating Statements of Cash Flows |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2017 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
139,260 |
|
|
$ |
3,384 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
142,645 |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities |
(1,372,852 |
) |
|
(1,348,964 |
) |
|
(673 |
) |
|
1,374,810 |
|
|
(1,347,679 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
31,644 |
|
|
1,374,137 |
|
|
673 |
|
|
(1,374,810 |
) |
|
31,644 |
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
(1,201,948 |
) |
|
28,557 |
|
|
1 |
|
|
— |
|
|
(1,173,390 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
1,273,882 |
|
|
1,993 |
|
|
— |
|
|
— |
|
|
1,275,875 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
71,934 |
|
|
$ |
30,550 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
102,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2016 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
83,620 |
|
|
$ |
155 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
83,774 |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities |
(157,529 |
) |
|
(22,500 |
) |
|
(1,821 |
) |
|
24,321 |
|
|
(157,529 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
415,158 |
|
|
22,500 |
|
|
1,821 |
|
|
(24,321 |
) |
|
415,158 |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
341,249 |
|
|
155 |
|
|
(1 |
) |
|
— |
|
|
341,403 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
112,494 |
|
|
479 |
|
|
1 |
|
|
— |
|
|
112,974 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
453,743 |
|
|
$ |
634 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
454,377 |
|
|