| Condensed Consolidating Balance Sheets |
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2015 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
73,667 |
|
|
$ |
1,072 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
74,740 |
|
Accounts receivable - oil and gas |
79,621 |
|
|
59 |
|
|
— |
|
|
— |
|
|
79,680 |
|
Accounts receivable - related parties |
33 |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
Accounts receivable - intercompany |
48,154 |
|
|
26 |
|
|
— |
|
|
(48,180 |
) |
|
— |
|
Prepaid expenses and other current assets |
15,777 |
|
|
— |
|
|
— |
|
|
— |
|
|
15,777 |
|
Short-term derivative instruments |
93,030 |
|
|
— |
|
|
— |
|
|
— |
|
|
93,030 |
|
Total current assets |
310,282 |
|
|
1,157 |
|
|
1 |
|
|
(48,180 |
) |
|
263,260 |
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting |
4,139,903 |
|
|
38,769 |
|
|
— |
|
|
(710 |
) |
|
4,177,962 |
|
Other property and equipment |
19,008 |
|
|
43 |
|
|
— |
|
|
— |
|
|
19,051 |
|
Accumulated depletion, depreciation, amortization and impairment |
(1,140,142 |
) |
|
(26 |
) |
|
— |
|
|
— |
|
|
(1,140,168 |
) |
Property and equipment, net |
3,018,769 |
|
|
38,786 |
|
|
— |
|
|
(710 |
) |
|
3,056,845 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
365,840 |
|
|
— |
|
|
167,186 |
|
|
(158,055 |
) |
|
374,971 |
|
Derivative instruments |
41,956 |
|
|
— |
|
|
— |
|
|
— |
|
|
41,956 |
|
Other assets |
18,566 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,566 |
|
Total other assets |
426,362 |
|
|
— |
|
|
167,186 |
|
|
(158,055 |
) |
|
435,493 |
|
Total assets |
$ |
3,755,413 |
|
|
$ |
39,943 |
|
|
$ |
167,187 |
|
|
$ |
(206,945 |
) |
|
$ |
3,755,598 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
399,912 |
|
|
$ |
184 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
400,096 |
|
Accounts payable - intercompany |
— |
|
|
48,072 |
|
|
108 |
|
|
(48,180 |
) |
|
— |
|
Asset retirement obligation - current |
75 |
|
|
— |
|
|
— |
|
|
— |
|
|
75 |
|
Short-term derivative instruments |
823 |
|
|
— |
|
|
— |
|
|
— |
|
|
823 |
|
Deferred tax liability - current |
29,622 |
|
|
— |
|
|
— |
|
|
— |
|
|
29,622 |
|
Current maturities of long-term debt |
1,781 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,781 |
|
Total current liabilities |
432,213 |
|
|
48,256 |
|
|
108 |
|
|
(48,180 |
) |
|
432,397 |
|
Long-term derivative instrument |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Asset retirement obligation - long-term |
18,656 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,656 |
|
Deferred tax liability |
215,122 |
|
|
— |
|
|
— |
|
|
— |
|
|
215,122 |
|
Long-term debt, net of current maturities |
779,130 |
|
|
— |
|
|
— |
|
|
— |
|
|
779,130 |
|
Total liabilities |
1,445,121 |
|
|
48,256 |
|
|
108 |
|
|
(48,180 |
) |
|
1,445,305 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
857 |
|
|
— |
|
|
— |
|
|
— |
|
|
857 |
|
Paid-in capital |
1,832,062 |
|
|
321 |
|
|
233,174 |
|
|
(233,494 |
) |
|
1,832,063 |
|
Accumulated other comprehensive income (loss) |
(41,659 |
) |
|
— |
|
|
(41,659 |
) |
|
41,659 |
|
|
(41,659 |
) |
Retained earnings (accumulated deficit) |
519,032 |
|
|
(8,634 |
) |
|
(24,436 |
) |
|
33,070 |
|
|
519,032 |
|
Total stockholders' equity |
2,310,292 |
|
|
(8,313 |
) |
|
167,079 |
|
|
(158,765 |
) |
|
2,310,293 |
|
Total liabilities and stockholders' equity |
$ |
3,755,413 |
|
|
$ |
39,943 |
|
|
$ |
167,187 |
|
|
$ |
(206,945 |
) |
|
$ |
3,755,598 |
|
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
141,535 |
|
|
$ |
804 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
142,340 |
|
Accounts receivable - oil and gas |
103,762 |
|
|
96 |
|
|
— |
|
|
— |
|
|
103,858 |
|
Accounts receivable - related parties |
46 |
|
|
— |
|
|
— |
|
|
— |
|
|
46 |
|
Accounts receivable - intercompany |
45,222 |
|
|
27 |
|
|
— |
|
|
(45,249 |
) |
|
— |
|
Prepaid expenses and other current assets |
3,714 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,714 |
|
Short-term derivative instruments |
78,391 |
|
|
— |
|
|
— |
|
|
— |
|
|
78,391 |
|
Total current assets |
372,670 |
|
|
927 |
|
|
1 |
|
|
(45,249 |
) |
|
328,349 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties, full-cost accounting, |
3,887,874 |
|
|
35,990 |
|
|
— |
|
|
(710 |
) |
|
3,923,154 |
|
Other property and equipment |
18,301 |
|
|
43 |
|
|
— |
|
|
— |
|
|
18,344 |
|
Accumulated depletion, depreciation, amortization and impairment |
(1,050,855 |
) |
|
(24 |
) |
|
— |
|
|
— |
|
|
(1,050,879 |
) |
Property and equipment, net |
2,855,320 |
|
|
36,009 |
|
|
— |
|
|
(710 |
) |
|
2,890,619 |
|
Other assets: |
|
|
|
|
|
|
|
|
|
Equity investments and investments in subsidiaries |
360,238 |
|
|
— |
|
|
180,217 |
|
|
(170,874 |
) |
|
369,581 |
|
Derivative instruments |
24,448 |
|
|
— |
|
|
— |
|
|
— |
|
|
24,448 |
|
Other assets |
19,396 |
|
|
— |
|
|
— |
|
|
— |
|
|
19,396 |
|
Total other assets |
404,082 |
|
|
— |
|
|
180,217 |
|
|
(170,874 |
) |
|
413,425 |
|
Total assets |
$ |
3,632,072 |
|
|
$ |
36,936 |
|
|
$ |
180,218 |
|
|
$ |
(216,833 |
) |
|
$ |
3,632,393 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
371,089 |
|
|
$ |
321 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
371,410 |
|
Accounts payable - intercompany |
— |
|
|
45,143 |
|
|
106 |
|
|
(45,249 |
) |
|
— |
|
Asset retirement obligation - current |
75 |
|
|
— |
|
|
— |
|
|
— |
|
|
75 |
|
Deferred tax liability |
27,070 |
|
|
— |
|
|
— |
|
|
— |
|
|
27,070 |
|
Current maturities of long-term debt |
168 |
|
|
— |
|
|
— |
|
|
— |
|
|
168 |
|
Total current liabilities |
398,402 |
|
|
45,464 |
|
|
106 |
|
|
(45,249 |
) |
|
398,723 |
|
|
|
|
|
|
|
|
|
|
|
Asset retirement obligation - long-term |
17,863 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,863 |
|
Deferred tax liability |
203,195 |
|
|
— |
|
|
— |
|
|
— |
|
|
203,195 |
|
Long-term debt, net of current maturities |
716,316 |
|
|
— |
|
|
— |
|
|
— |
|
|
716,316 |
|
Total liabilities |
1,335,776 |
|
|
45,464 |
|
|
106 |
|
|
(45,249 |
) |
|
1,336,097 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
856 |
|
|
— |
|
|
— |
|
|
— |
|
|
856 |
|
Paid-in capital |
1,828,602 |
|
|
322 |
|
|
227,079 |
|
|
(227,401 |
) |
|
1,828,602 |
|
Accumulated other comprehensive income (loss) |
(26,675 |
) |
|
— |
|
|
(26,675 |
) |
|
26,675 |
|
|
(26,675 |
) |
Retained earnings (accumulated deficit) |
493,513 |
|
|
(8,850 |
) |
|
(20,292 |
) |
|
29,142 |
|
|
493,513 |
|
Total stockholders' equity |
2,296,296 |
|
|
(8,528 |
) |
|
180,112 |
|
|
(171,584 |
) |
|
2,296,296 |
|
Total liabilities and stockholders' equity |
$ |
3,632,072 |
|
|
$ |
36,936 |
|
|
$ |
180,218 |
|
|
$ |
(216,833 |
) |
|
$ |
3,632,393 |
|
|
| Condensed Consolidating Statements of Operations |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2015 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
175,832 |
|
|
$ |
485 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
176,317 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
16,787 |
|
|
193 |
|
|
— |
|
|
— |
|
|
16,980 |
|
Production taxes |
4,253 |
|
|
32 |
|
|
— |
|
|
— |
|
|
4,285 |
|
Midstream gathering and processing |
25,374 |
|
|
7 |
|
|
— |
|
|
— |
|
|
25,381 |
|
Depreciation, depletion, and amortization |
89,908 |
|
|
1 |
|
|
— |
|
|
— |
|
|
89,909 |
|
General and administrative |
10,761 |
|
|
36 |
|
|
2 |
|
|
— |
|
|
10,799 |
|
Accretion expense |
190 |
|
|
— |
|
|
— |
|
|
— |
|
|
190 |
|
|
147,273 |
|
|
269 |
|
|
2 |
|
|
— |
|
|
147,544 |
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS |
28,559 |
|
|
216 |
|
|
(2 |
) |
|
— |
|
|
28,773 |
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest expense |
8,759 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,759 |
|
Interest income |
(9 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(9 |
) |
(Income) loss from equity method investments and investments in subsidiaries |
(20,189 |
) |
|
— |
|
|
4,142 |
|
|
(3,928 |
) |
|
(19,975 |
) |
|
(11,439 |
) |
|
— |
|
|
4,142 |
|
|
(3,928 |
) |
|
(11,225 |
) |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
39,998 |
|
|
216 |
|
|
(4,144 |
) |
|
3,928 |
|
|
39,998 |
|
INCOME TAX EXPENSE |
14,479 |
|
|
— |
|
|
— |
|
|
— |
|
|
14,479 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ |
25,519 |
|
|
$ |
216 |
|
|
$ |
(4,144 |
) |
|
$ |
3,928 |
|
|
$ |
25,519 |
|
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 gathering and processing |
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 Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2015 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
95,879 |
|
|
$ |
3,158 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
99,037 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
(228,601 |
) |
|
(2,890 |
) |
|
(6,093 |
) |
|
6,093 |
|
|
(231,491 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
64,854 |
|
|
— |
|
|
6,093 |
|
|
(6,093 |
) |
|
64,854 |
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
(67,868 |
) |
|
268 |
|
|
— |
|
|
— |
|
|
(67,600 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
141,535 |
|
|
804 |
|
|
1 |
|
|
— |
|
|
142,340 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
$ |
73,667 |
|
|
$ |
1,072 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
74,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2014 |
|
Parent |
|
Guarantors |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) 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 decrease 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 |
|
|