Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

v3.19.2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)
6 Months Ended
Jun. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
CONDENSED CONSOLIDATING BALANCE SHEETS
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
 
June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
10,940

 
$
9,799

 
$
38

 
$
—

 
$
20,777

Accounts receivable - oil and natural gas sales
4,116

 
127,559

 
—

 
—

 
131,675

Accounts receivable - joint interest and other
9,043

 
37,602

 
—

 
—

 
46,645

Accounts receivable - intercompany
819,584

 
433,776

 
—

 
(1,253,360
)
 
—

Prepaid expenses and other current assets
5,948

 
3,451

 
75

 
—

 
9,474

Short-term derivative instruments
134,920

 
—

 
—

 
—

 
134,920

Total current assets
984,551

 
612,187

 
113

 
(1,253,360
)
 
343,491

 
 
 
 
 
 
 
 
 
 
Property and equipment:
 
 
 
 
 
 
 
 
 
Oil and natural gas properties, full-cost accounting
1,352,894

 
9,158,193

 
69

 
(729
)
 
10,510,427

Other property and equipment
92,343

 
751

 
3,319

 
—

 
96,413

Accumulated depletion, depreciation, amortization and impairment
(1,414,011
)
 
(3,468,663
)
 
(55
)
 
—

 
(4,882,729
)
Property and equipment, net
31,226

 
5,690,281

 
3,333

 
(729
)
 
5,724,111

Other assets:
 
 
 
 
 
 
 
 
 
Equity investments and investments in subsidiaries
5,171,925

 
—

 
51,607

 
(5,104,225
)
 
119,307

Long-term derivative instruments
5,036

 
—

 
—

 
—

 
5,036

Deferred tax asset
179,331

 
—

 
—

 
—

 
179,331

Inventories
188

 
8,813

 
—

 
—

 
9,001

Operating lease assets
19,334

 
—

 
—

 
—

 
19,334

Operating lease assets - related parties
53,579

 
—

 
—

 
—

 
53,579

Other assets
11,682

 
598

 
—

 
—

 
12,280

Total other assets
5,441,075

 
9,411

 
51,607

 
(5,104,225
)
 
397,868

Total assets
$
6,456,852

 
$
6,311,879

 
$
55,053

 
$
(6,358,314
)
 
$
6,465,470

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
74,597

 
$
419,190

 
$
43

 
$
—

 
$
493,830

Accounts payable - intercompany
469,071

 
780,600

 
3,689

 
(1,253,360
)
 
—

Short-term derivative instruments
198

 
—

 
—

 
—

 
198

Current portion of operating lease liabilities
17,999

 
—

 
—

 
—

 
17,999

Current portion of operating lease liabilities - related parties
20,817

 
—

 
—

 
—

 
20,817

Current maturities of long-term debt
615

 
—

 
—

 
—

 
615

Total current liabilities
583,297

 
1,199,790

 
3,732

 
(1,253,360
)
 
533,459

Long-term derivative instruments
210

 
—

 
—

 
—

 
210

Asset retirement obligation - long-term
30,035

 
58,456

 
—

 
—

 
88,491

Deferred tax liability
3,127

 
—

 
—

 
—

 
3,127

Non-current operating lease liabilities
1,335

 
—

 
—

 
—

 
1,335

Non-current operating lease liabilities - related parties
32,762

 
—

 
—

 
—

 
32,762

Long-term debt, net of current maturities
2,198,678

 
—

 
—

 
—

 
2,198,678

Total liabilities
2,849,444

 
1,258,246

 
3,732

 
(1,253,360
)
 
2,858,062

 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
1,594

 
—

 
—

 
—

 
1,594

Paid-in capital
4,202,599

 
4,170,574

 
262,059

 
(4,432,633
)
 
4,202,599

Accumulated other comprehensive loss
(48,615
)
 
—

 
(46,527
)
 
46,527

 
(48,615
)
(Accumulated deficit) retained earnings
(548,170
)
 
883,059

 
(164,211
)
 
(718,848
)
 
(548,170
)
Total stockholders’ equity
3,607,408

 
5,053,633

 
51,321

 
(5,104,954
)
 
3,607,408

Total liabilities and stockholders’ equity
$
6,456,852

 
$
6,311,879

 
$
55,053

 
$
(6,358,314
)
 
$
6,465,470


CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
 
December 31, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
25,585

 
$
26,711

 
$
1

 
$
—

 
$
52,297

Accounts receivable - oil and natural gas sales
146,075

 
64,125

 
—

 
—

 
210,200

Accounts receivable - joint interest and other
16,212

 
6,285

 
—

 
—

 
22,497

Accounts receivable - intercompany
671,633

 
319,464

 
—

 
(991,097
)
 
—

Prepaid expenses and other current assets
8,433

 
2,174

 
—

 
—

 
10,607

Short-term derivative instruments
21,352

 
—

 
—

 
—

 
21,352

Total current assets
889,290

 
418,759

 
1

 
(991,097
)
 
316,953

 
 
 
 
 
 
 
 
 
 
Property and equipment:
 
 
 
 
 
 
 
 
 
Oil and natural gas properties, full-cost accounting,
7,044,550

 
2,983,015

 
—

 
(729
)
 
10,026,836

Other property and equipment
91,916

 
751

 
—

 
—

 
92,667

Accumulated depletion, depreciation, amortization and impairment
(4,640,059
)
 
(39
)
 
—

 
—

 
(4,640,098
)
Property and equipment, net
2,496,407

 
2,983,727

 
—

 
(729
)
 
5,479,405

Other assets:
 
 
 
 
 
 
 
 
 
Equity investments and investments in subsidiaries
2,856,988

 
—

 
44,259

 
(2,665,126
)
 
236,121

Inventories
3,620

 
1,134

 
—

 
—

 
4,754

Other assets
12,624

 
1,178

 
—

 
1

 
13,803

Total other assets
2,873,232

 
2,312

 
44,259

 
(2,665,125
)
 
254,678

  Total assets
$
6,258,929

 
$
3,404,798

 
$
44,260

 
$
(3,656,951
)
 
$
6,051,036

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
419,107

 
$
99,273

 
$
—

 
$
—

 
$
518,380

Accounts payable - intercompany
320,259

 
670,708

 
130

 
(991,097
)
 
—

Short-term derivative instruments
20,401

 
—

 
—

 
—

 
20,401

Current maturities of long-term debt
651

 
—

 
—

 
—

 
651

Total current liabilities
760,418

 
769,981

 
130

 
(991,097
)
 
539,432

Long-term derivative instruments
13,992

 
—

 
—

 
—

 
13,992

Asset retirement obligation - long-term
66,859

 
13,093

 
—

 
—

 
79,952

Deferred tax liability
3,127

 
—

 
—

 
—

 
3,127

Long-term debt, net of current maturities
2,086,765

 
—

 
—

 
—

 
2,086,765

Total liabilities
2,931,161


783,074


130


(991,097
)

2,723,268

 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
1,630

 
—

 
—

 
—

 
1,630

Paid-in capital
4,227,532

 
1,915,598

 
261,626

 
(2,177,224
)
 
4,227,532

Accumulated other comprehensive loss
(56,026
)
 
—

 
(53,783
)
 
53,783

 
(56,026
)
(Accumulated deficit) retained earnings
(845,368
)
 
706,126

 
(163,713
)
 
(542,413
)
 
(845,368
)
Total stockholders’ equity
3,327,768

 
2,621,724

 
44,130

 
(2,665,854
)
 
3,327,768

  Total liabilities and stockholders’ equity
$
6,258,929

 
$
3,404,798

 
$
44,260

 
$
(3,656,951
)
 
$
6,051,036


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
 
Three months ended June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
280,291

 
$
178,703

 
$
—

 
$
—

 
$
458,994

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
12,256

 
10,132

 
—

 
—

 
22,388

Production taxes
2,820

 
5,278

 
—

 
—

 
8,098

Midstream gathering and processing expenses
28,121

 
43,894

 
—

 
—

 
72,015

Depreciation, depletion and amortization
80,132

 
44,764

 
55

 
—

 
124,951

General and administrative expenses
16,745

 
(3,583
)
 
103

 
—

 
13,265

Accretion expense
438

 
921

 
—

 
—

 
1,359

 
140,512


101,406


158


—


242,076

 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM OPERATIONS
139,779


77,297


(158
)

—


216,918

 
 
 
 
 
 
 
 
 
 
OTHER EXPENSE (INCOME):
 
 
 
 
 
 
 
 
 
Interest expense
35,835

 
(955
)
 
—

 
—

 
34,880

Interest income
(120
)
 
(39
)
 
—

 
—

 
(159
)
Insurance proceeds
(83
)
 
—

 
—

 
—

 
(83
)
Loss (income) from equity method investments and investments in subsidiaries
47,449

 
—

 
(54
)
 
78,187

 
125,582

Other expense
1,073

 
—

 
—

 
—

 
1,073

 
84,154


(994
)

(54
)

78,187


161,293

 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
55,625

 
78,291

 
(104
)
 
(78,187
)
 
55,625

INCOME TAX BENEFIT
(179,331
)
 
—

 
—

 
—

 
(179,331
)
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
234,956


$
78,291


$
(104
)

$
(78,187
)

$
234,956


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)

 
Three months ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
146,774

 
$
105,966

 
$
—

 
$
—

 
$
252,740

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
16,593

 
6,319

 
—

 
—

 
22,912

Production taxes
4,793

 
2,866

 
—

 
—

 
7,659

Midstream gathering and processing expenses
52,542

 
18,898

 
—

 
—

 
71,440

Depreciation, depletion and amortization
121,915

 
—

 
—

 
—

 
121,915

General and administrative expenses
14,975

 
(968
)
 
1

 
—

 
14,008

Accretion expense
795

 
220

 
—

 
—

 
1,015

 
211,613


27,335


1


—


238,949

 
 
 
 
 
 
 
 
 
 
(LOSS) INCOME FROM OPERATIONS
(64,839
)

78,631


(1
)

—


13,791

 
 
 
 
 
 
 
 
 
 
OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
 
Interest expense
34,663

 
(959
)
 
—

 
—

 
33,704

Interest income
(27
)
 
(6
)
 
—

 
—

 
(33
)
Insurance proceeds
(231
)
 
—

 
—

 
—

 
(231
)
Gain on sale of equity method investments
(25,616
)
 
(96,419
)
 
—

 
—

 
(122,035
)
(Income) loss from equity method investments and investments in subsidiaries
(183,901
)
 
(336
)
 
228

 
175,121

 
(8,888
)
Other (income) expense
(1,046
)
 
1

 
—

 
1,000

 
(45
)
 
(176,158
)
 
(97,719
)
 
228

 
176,121

 
(97,528
)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
111,319


176,350


(229
)

(176,121
)

111,319

INCOME TAX BENEFIT
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
111,319

 
$
176,350

 
$
(229
)
 
$
(176,121
)
 
$
111,319


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)

 
Six months ended June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
466,537

 
$
313,035

 
$
—

 
$
—

 
$
779,572

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
27,149

 
15,046

 
—

 
—

 
42,195

Production taxes
6,081

 
9,938

 
—

 
—

 
16,019

Midstream gathering and processing expenses
71,420

 
70,877

 
—

 
—

 
142,297

Depreciation, depletion, and amortization
198,564

 
44,765

 
55

 
—

 
243,384

General and administrative expenses
28,977

 
(4,258
)
 
104

 
—

 
24,823

Accretion expense
1,389

 
1,037

 
—

 
—

 
2,426

 
333,580

 
137,405

 
159

 
—

 
471,144

 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM OPERATIONS
132,957

 
175,630

 
(159
)
 
—

 
308,428

 
 
 
 
 
 
 
 
 
 
OTHER EXPENSE (INCOME):
 
 
 
 
 
 
 
 
 
Interest expense
70,259

 
(1,259
)
 
—

 
—

 
69,000

Interest income
(267
)
 
(44
)
 
—

 
—

 
(311
)
Insurance proceeds
(83
)
 
—

 
—

 
—

 
(83
)
(Income) loss from equity method investments and investments in subsidiaries
(55,465
)
 
—

 
339

 
176,435

 
121,309

Other expense
646

 
—

 
—

 
—

 
646

 
15,090

 
(1,303
)
 
339

 
176,435

 
190,561

 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
117,867

 
176,933

 
(498
)
 
(176,435
)
 
117,867

INCOME TAX BENEFIT
(179,331
)
 
—

 
—

 
—

 
(179,331
)
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
297,198

 
$
176,933

 
$
(498
)
 
$
(176,435
)
 
$
297,198


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)

 
Six months ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
360,335

 
$
217,797

 
$
—

 
$
—

 
$
578,132

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
30,424

 
11,394

 
—

 
—

 
41,818

Production taxes
8,804

 
5,709

 
—

 
—

 
14,513

Midstream gathering and processing expenses
98,208

 
37,425

 
—

 
—

 
135,633

Depreciation, depletion, and amortization
232,932

 
1

 
—

 
—

 
232,933

General and administrative expenses
28,786

 
(1,681
)
 
2

 
—

 
27,107

Accretion expense
1,585

 
434

 
—

 
—

 
2,019

 
400,739

 
53,282

 
2

 
—

 
454,023

 
 
 
 
 
 
 
 
 
 
(LOSS) INCOME FROM OPERATIONS
(40,404
)
 
164,515

 
(2
)
 
—

 
124,109

 
 
 
 
 
 
 
 
 
 
OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
 
Interest expense
69,056

 
(1,387
)
 
—

 
—

 
67,669

Interest income
(58
)
 
(12
)
 
—

 
—

 
(70
)
Insurance proceeds
(231
)
 
—

 
—

 
—

 
(231
)
Gain on sale of equity method investments
(25,616
)
 
(96,419
)
 
—

 
—

 
(122,035
)
(Income) loss from equity method investments and investments in subsidiaries
(283,765
)
 
(693
)
 
558

 
261,476

 
(22,424
)
Other (income) expense
(1,130
)
 
(10
)
 
—

 
1,000

 
(140
)
 
(241,744
)
 
(98,521
)
 
558

 
262,476

 
(77,231
)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
201,340

 
263,036

 
(560
)
 
(262,476
)
 
201,340

INCOME TAX BENEFIT
(69
)
 
—

 
—

 
—

 
(69
)
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
201,409

 
$
263,036

 
$
(560
)
 
$
(262,476
)
 
$
201,409


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands)
 
Three months ended June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
234,956

 
$
78,291

 
$
(104
)
 
$
(78,187
)
 
$
234,956

Foreign currency translation adjustment
3,610

 
61

 
3,549

 
(3,610
)
 
3,610

Other comprehensive income (loss)
3,610

 
61

 
3,549

 
(3,610
)
 
3,610

Comprehensive income (loss)
$
238,566

 
$
78,352

 
$
3,445

 
$
(81,797
)
 
$
238,566


 
Three months ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
111,319

 
$
176,350

 
$
(229
)
 
$
(176,121
)
 
$
111,319

Foreign currency translation adjustment
(3,364
)
 
14

 
(3,378
)
 
3,364

 
(3,364
)
Other comprehensive (loss) income
(3,364
)
 
14

 
(3,378
)
 
3,364

 
(3,364
)
Comprehensive income (loss)
$
107,955

 
$
176,364

 
$
(3,607
)
 
$
(172,757
)
 
$
107,955


 
Six months ended June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
297,198

 
$
176,933

 
$
(498
)
 
$
(176,435
)
 
$
297,198

Foreign currency translation adjustment
7,411

 
155

 
7,256

 
(7,411
)
 
7,411

Other comprehensive income (loss)
7,411

 
155

 
7,256

 
(7,411
)
 
7,411

Comprehensive income (loss)
$
304,609

 
$
177,088

 
$
6,758

 
$
(183,846
)
 
$
304,609


 
Six months ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
Net income (loss)
$
201,409

 
$
263,036

 
$
(560
)
 
$
(262,476
)
 
$
201,409

Foreign currency translation adjustment
(8,867
)
 
(173
)
 
(8,694
)
 
8,867

 
(8,867
)
Other comprehensive (loss) income
(8,867
)
 
(173
)
 
(8,694
)
 
8,867

 
(8,867
)
Comprehensive income (loss)
$
192,542

 
$
262,863

 
$
(9,254
)
 
$
(253,609
)
 
$
192,542


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 
Six months ended June 30, 2019
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
230,776

 
$
74,857

 
$
3,355

 
$
1

 
$
308,989

 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by investing activities
(324,357
)
 
(91,769
)
 
(3,751
)
 
432

 
(419,445
)
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) financing activities
78,936

 
—

 
433

 
(433
)
 
78,936

 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents and restricted cash
(14,645
)
 
(16,912
)
 
37

 
—

 
(31,520
)
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash at beginning of period
25,585

 
26,711

 
1

 
—

 
52,297

 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash at end of period
$
10,940

 
$
9,799

 
$
38

 
$
—

 
$
20,777



 
Six months ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
370,965

 
$
40,078

 
$
—

 
$
1

 
$
411,044

 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by investing activities
(327,362
)
 
(33,103
)
 
(1,569
)
 
1,569

 
(360,465
)
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by financing activities
(30,906
)
 
—

 
1,570

 
(1,570
)
 
(30,906
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash, cash equivalents and restricted cash
12,697

 
6,975

 
1

 
—

 
19,673

 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash at beginning of period
67,908

 
31,649

 
—

 
—

 
99,557

 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash at end of period
$
80,605

 
$
38,624

 
$
1

 
$
—

 
$
119,230