| Condensed Consolidating Balance Sheets |
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
168,476 |
|
|
$ |
1,906 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
170,382 |
|
Accounts receivable - oil and gas |
81,130 |
|
|
5,638 |
|
|
— |
|
|
— |
|
|
86,768 |
|
Accounts receivable - related parties |
570 |
|
|
— |
|
|
— |
|
|
— |
|
|
570 |
|
Accounts receivable - intercompany |
23,317 |
|
|
26 |
|
|
— |
|
|
(23,343 |
) |
|
— |
|
Prepaid expenses and other current assets |
3,352 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,352 |
|
Deferred tax asset |
7,558 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,558 |
|
Note receivable - related party |
875 |
|
|
— |
|
|
— |
|
|
— |
|
|
875 |
|
Total current assets |
285,278 |
|
|
7,570 |
|
|
— |
|
|
(23,343 |
) |
|
269,505 |
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting |
2,898,168 |
|
|
9,381 |
|
|
— |
|
|
(573 |
) |
|
2,906,976 |
|
Other property and equipment |
12,195 |
|
|
29 |
|
|
— |
|
|
— |
|
|
12,224 |
|
Accumulated depletion, depreciation, amortization and impairment |
(841,539 |
) |
|
(22 |
) |
|
— |
|
|
— |
|
|
(841,561 |
) |
Property and equipment, net |
2,068,824 |
|
|
9,388 |
|
|
— |
|
|
(573 |
) |
|
2,077,639 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
491,955 |
|
|
— |
|
|
190,263 |
|
|
(182,799 |
) |
|
499,419 |
|
Derivative instruments |
2,565 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,565 |
|
Other assets |
17,581 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,581 |
|
Total other assets |
512,101 |
|
|
— |
|
|
190,263 |
|
|
(182,799 |
) |
|
519,565 |
|
Total assets |
$ |
2,866,203 |
|
|
$ |
16,958 |
|
|
$ |
190,263 |
|
|
$ |
(206,715 |
) |
|
$ |
2,866,709 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
238,593 |
|
|
$ |
506 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
239,099 |
|
Accounts payable - intercompany |
|
|
|
23,238 |
|
|
105 |
|
|
(23,343 |
) |
|
— |
|
Asset retirement obligation - current |
795 |
|
|
— |
|
|
— |
|
|
— |
|
|
795 |
|
Short-term derivative instruments |
29,755 |
|
|
— |
|
|
— |
|
|
— |
|
|
29,755 |
|
Current maturities of long-term debt |
161 |
|
|
— |
|
|
— |
|
|
— |
|
|
161 |
|
Total current liabilities |
269,304 |
|
|
23,744 |
|
|
105 |
|
|
(23,343 |
) |
|
269,810 |
|
Long-term derivative instrument |
4,277 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,277 |
|
Asset retirement obligation - long-term |
14,650 |
|
|
— |
|
|
— |
|
|
— |
|
|
14,650 |
|
Deferred tax liability |
148,470 |
|
|
— |
|
|
— |
|
|
— |
|
|
148,470 |
|
Long-term debt, net of current maturities |
299,062 |
|
|
— |
|
|
— |
|
|
— |
|
|
299,062 |
|
Total liabilities |
735,763 |
|
|
23,744 |
|
|
105 |
|
|
(23,343 |
) |
|
736,269 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
853 |
|
|
— |
|
|
— |
|
|
— |
|
|
853 |
|
Paid-in capital |
1,817,978 |
|
|
322 |
|
|
216,347 |
|
|
(216,669 |
) |
|
1,817,978 |
|
Accumulated other comprehensive income (loss) |
(17,059 |
) |
|
— |
|
|
(17,059 |
) |
|
17,059 |
|
|
(17,059 |
) |
Retained earnings (accumulated deficit) |
328,668 |
|
|
(7,108 |
) |
|
(9,130 |
) |
|
16,238 |
|
|
328,668 |
|
Total stockholders' equity |
2,130,440 |
|
|
(6,786 |
) |
|
190,158 |
|
|
(183,372 |
) |
|
2,130,440 |
|
Total liabilities and stockholders' equity |
$ |
2,866,203 |
|
|
$ |
16,958 |
|
|
$ |
190,263 |
|
|
$ |
(206,715 |
) |
|
$ |
2,866,709 |
|
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
451,431 |
|
|
$ |
7,525 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
458,956 |
|
Accounts receivable - oil and gas |
58,662 |
|
|
162 |
|
|
— |
|
|
— |
|
|
58,824 |
|
Accounts receivable - related parties |
2,617 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,617 |
|
Accounts receivable - intercompany |
21,379 |
|
|
27 |
|
|
— |
|
|
(21,406 |
) |
|
— |
|
Prepaid expenses and other current assets |
2,581 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,581 |
|
Deferred tax asset |
6,927 |
|
|
— |
|
|
— |
|
|
— |
|
|
6,927 |
|
Short-term derivative instruments |
324 |
|
|
— |
|
|
— |
|
|
— |
|
|
324 |
|
Note receivable - related party |
875 |
|
|
— |
|
|
— |
|
|
— |
|
|
875 |
|
Total current assets |
544,796 |
|
|
7,714 |
|
|
— |
|
|
(21,406 |
) |
|
531,104 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting, |
2,470,411 |
|
|
7,340 |
|
|
— |
|
|
(573 |
) |
|
2,477,178 |
|
Other property and equipment |
11,102 |
|
|
29 |
|
|
— |
|
|
— |
|
|
11,131 |
|
Accumulated depletion, depreciation, amortization and impairment |
(784,695 |
) |
|
(22 |
) |
|
— |
|
|
— |
|
|
(784,717 |
) |
Property and equipment, net |
1,696,818 |
|
|
7,347 |
|
|
— |
|
|
(573 |
) |
|
1,703,592 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
432,727 |
|
|
— |
|
|
191,473 |
|
|
(184,132 |
) |
|
440,068 |
|
Derivative instruments |
521 |
|
|
— |
|
|
— |
|
|
— |
|
|
521 |
|
Other assets |
17,851 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,851 |
|
Total other assets |
451,099 |
|
|
— |
|
|
191,473 |
|
|
(184,132 |
) |
|
458,440 |
|
Total assets |
$ |
2,692,713 |
|
|
$ |
15,061 |
|
|
$ |
191,473 |
|
|
$ |
(206,111 |
) |
|
$ |
2,693,136 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
190,284 |
|
|
$ |
423 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
190,707 |
|
Accounts payable - intercompany |
— |
|
|
21,296 |
|
|
110 |
|
|
(21,406 |
) |
|
— |
|
Asset retirement obligation - current |
795 |
|
|
— |
|
|
— |
|
|
— |
|
|
795 |
|
Short-term derivative instruments |
12,280 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,280 |
|
Current maturities of long-term debt |
159 |
|
|
— |
|
|
— |
|
|
— |
|
|
159 |
|
Total current liabilities |
203,518 |
|
|
21,719 |
|
|
110 |
|
|
(21,406 |
) |
|
203,941 |
|
|
|
|
|
|
|
|
|
|
|
Long-term derivative instrument |
11,366 |
|
|
— |
|
|
— |
|
|
— |
|
|
11,366 |
|
Asset retirement obligation - long-term |
14,288 |
|
|
— |
|
|
— |
|
|
— |
|
|
14,288 |
|
Deferred tax liability |
114,275 |
|
|
— |
|
|
— |
|
|
— |
|
|
114,275 |
|
Long-term debt, net of current maturities |
299,028 |
|
|
— |
|
|
— |
|
|
— |
|
|
299,028 |
|
Total liabilities |
642,475 |
|
|
21,719 |
|
|
110 |
|
|
(21,406 |
) |
|
642,898 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
851 |
|
|
— |
|
|
— |
|
|
— |
|
|
851 |
|
Paid-in capital |
1,813,058 |
|
|
322 |
|
|
208,277 |
|
|
(208,599 |
) |
|
1,813,058 |
|
Accumulated other comprehensive income (loss) |
(9,781 |
) |
|
— |
|
|
(9,781 |
) |
|
9,781 |
|
|
(9,781 |
) |
Retained earnings (accumulated deficit) |
246,110 |
|
|
(6,980 |
) |
|
(7,133 |
) |
|
14,113 |
|
|
246,110 |
|
Total stockholders' equity |
2,050,238 |
|
|
(6,658 |
) |
|
191,363 |
|
|
(184,705 |
) |
|
2,050,238 |
|
Total liabilities and stockholders' equity |
$ |
2,692,713 |
|
|
$ |
15,061 |
|
|
$ |
191,473 |
|
|
$ |
(206,111 |
) |
|
$ |
2,693,136 |
|
|
| Condensed Consolidating Statements of Operations |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2014 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
117,850 |
|
|
$ |
179 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
118,029 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
11,381 |
|
|
248 |
|
|
— |
|
|
— |
|
|
11,629 |
|
Production taxes |
6,937 |
|
|
20 |
|
|
— |
|
|
— |
|
|
6,957 |
|
Midstream transportation, processing and marketing |
7,757 |
|
|
12 |
|
|
— |
|
|
— |
|
|
7,769 |
|
Depreciation, depletion, and amortization |
56,877 |
|
|
— |
|
|
— |
|
|
— |
|
|
56,877 |
|
General and administrative |
9,488 |
|
|
27 |
|
|
(4 |
) |
|
— |
|
|
9,511 |
|
Accretion expense |
188 |
|
|
— |
|
|
— |
|
|
— |
|
|
188 |
|
Gain on sale of assets |
(11 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(11 |
) |
|
92,617 |
|
|
307 |
|
|
(4 |
) |
|
— |
|
|
92,920 |
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM OPERATIONS |
25,233 |
|
|
(128 |
) |
|
4 |
|
|
— |
|
|
25,109 |
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest expense |
3,885 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,885 |
|
Interest income |
(106 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(106 |
) |
Litigation settlement |
18,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,000 |
|
(Income) loss from equity method investments and investments in subsidiaries |
(128,351 |
) |
|
— |
|
|
2,001 |
|
|
(2,125 |
) |
|
(128,475 |
) |
|
(106,572 |
) |
|
— |
|
|
2,001 |
|
|
(2,125 |
) |
|
(106,696 |
) |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
131,805 |
|
|
(128 |
) |
|
(1,997 |
) |
|
2,125 |
|
|
131,805 |
|
INCOME TAX EXPENSE |
49,247 |
|
|
— |
|
|
— |
|
|
— |
|
|
49,247 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ |
82,558 |
|
|
$ |
(128 |
) |
|
$ |
(1,997 |
) |
|
$ |
2,125 |
|
|
$ |
82,558 |
|
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2013 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
54,662 |
|
|
$ |
338 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
55,000 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
4,998 |
|
|
174 |
|
|
— |
|
|
— |
|
|
5,172 |
|
Production taxes |
6,848 |
|
|
22 |
|
|
|
|
|
|
6,870 |
|
Midstream transportation, processing and marketing |
413 |
|
|
4 |
|
|
|
|
|
|
417 |
|
Depreciation, depletion, and amortization |
22,583 |
|
|
— |
|
|
— |
|
|
— |
|
|
22,583 |
|
General and administrative |
4,378 |
|
|
34 |
|
|
— |
|
|
— |
|
|
4,412 |
|
Accretion expense |
175 |
|
|
— |
|
|
— |
|
|
— |
|
|
175 |
|
Loss on sale of assets |
427 |
|
|
— |
|
|
— |
|
|
— |
|
|
427 |
|
|
39,822 |
|
|
234 |
|
|
— |
|
|
— |
|
|
40,056 |
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM OPERATIONS |
14,840 |
|
|
104 |
|
|
— |
|
|
— |
|
|
14,944 |
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest expense |
3,479 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,479 |
|
Interest income |
(79 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(79 |
) |
(Income) loss from equity method investments and investments in subsidiaries |
(61,314 |
) |
|
— |
|
|
532 |
|
|
(428 |
) |
|
(61,210 |
) |
|
(57,914 |
) |
|
— |
|
|
532 |
|
|
(428 |
) |
|
(57,810 |
) |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM COTINUING OPERATIONS BEFORE INCOME TAXES |
72,754 |
|
|
104 |
|
|
(532 |
) |
|
428 |
|
|
72,754 |
|
INCOME TAX EXPENSE |
28,195 |
|
|
— |
|
|
— |
|
|
— |
|
|
28,195 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ |
44,559 |
|
|
$ |
104 |
|
|
$ |
(532 |
) |
|
$ |
428 |
|
|
$ |
44,559 |
|
|
| Condensed Consolidating Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2014 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
159,736 |
|
|
$ |
(3,585 |
) |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
156,150 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
(443,079 |
) |
|
(2,034 |
) |
|
(8,069 |
) |
|
8,070 |
|
|
(445,112 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
388 |
|
|
— |
|
|
8,070 |
|
|
(8,070 |
) |
|
388 |
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
(282,955 |
) |
|
(5,619 |
) |
|
— |
|
|
— |
|
|
(288,574 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
451,431 |
|
|
7,525 |
|
|
— |
|
|
— |
|
|
458,956 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
168,476 |
|
|
$ |
1,906 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
170,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2013 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
35,682 |
|
|
$ |
(675 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
35,007 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
(332,807 |
) |
|
(410 |
) |
|
(7,529 |
) |
|
7,530 |
|
|
(333,216 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
357,101 |
|
|
— |
|
|
7,530 |
|
|
(7,530 |
) |
|
357,101 |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
59,976 |
|
|
(1,085 |
) |
|
1 |
|
|
— |
|
|
58,892 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
165,293 |
|
|
1,795 |
|
|
— |
|
|
— |
|
|
167,088 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
225,269 |
|
|
$ |
710 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
225,980 |
|
|