Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In November 2010 and November 2011, the Company and certain of the Company’s wholly owned subsidiaries (such subsidiaries collectively, the “Subsidiary Guarantors”) issued in private placements $400.0 million and $200.0 million, respectively, aggregate principal amount of the Company’s Senior Notes. Certain, but not all, of the Company’s wholly owned subsidiaries have issued full, unconditional and joint and several guarantees of the Senior Notes and may guarantee future issuances of debt securities. In June 2011 and February 2012, the Company completed the exchange of registered 8.625% Senior Notes due 2018 for any and all of its unregistered $400.0 million and $200.0 million aggregate principal amount of 8.625% Senior Notes due 2018, respectively.

The rules of the SEC require that condensed consolidating financial information be provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is full, unconditional and joint and several and where the voting interest of the subsidiary is 100% owned by the registrant. The Company is, therefore, presenting condensed consolidating financial information as of June 30, 2012 and December 31, 2011, and for the three and six months ended June 30,2012 and 2011 on a parent company, combined guarantor subsidiaries, combined non-guarantor subsidiaries and consolidated basis and should be read in conjunction with the consolidated financial statements. The financial information may not necessarily be indicative of results of operations, cash flows, or financial position had the Subsidiary Guarantors operated as independent entities.

Investments in subsidiaries are accounted for by the respective parent company using the equity method for purposes of this presentation. Results of operations of subsidiaries are therefore reflected in the parent company’s investment accounts and earnings. The principal elimination entries set forth below eliminate investments in subsidiaries and intercompany balances and transactions. Typically in a condensed consolidating financial statement, the net income and equity of the parent company equals the net income and equity of the consolidated entity. The Company’s oil and gas properties are accounted for using the full cost method of accounting whereby impairments and DD&A are calculated and recorded on a country by country basis. However, when calculated separately on a legal entity basis, the combined totals of parent company and subsidiary impairments and DD&A can be more or less than the consolidated total as a result of differences in the properties each entity owns including amounts of costs incurred, production rates, reserve mix, future development costs, etc. Accordingly, elimination entries are required to eliminate any differences between consolidated and parent company and subsidiary company combined impairments and DD&A.

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

	June 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,440,016		$	111,247		$	1,487	$	(1,404,603	)	$	148,147
Property and equipment, net	108,699			1,234,104			98,317		23,027			1,464,147
Investments in subsidiaries	(21,347		)	—			—		21,347			—
Other assets	51,012			38,499			11,237		(8,400		)	92,348
Total assets	$	1,578,380		$	1,383,850		$	111,041	$	(1,368,629	)	$	1,704,642
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	171,965		$	1,466,599		$	21,553	$	(1,345,415	)	$	314,702
Long-term liabilities	804,554			2,232			25,854		—			832,640
Shareholders’ equity	601,861			(84,981		)	63,634		(23,214		)	557,300
Total liabilities and shareholders’ equity	$	1,578,380		$	1,383,850		$	111,041	$	(1,368,629	)	$	1,704,642

	December 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,349,841		$	71,018		$	3,874	$	(1,304,336	)	$	120,397
Property and equipment, net	101,015			1,131,672			68,911		8,916			1,310,514
Investments in subsidiaries	(58,764		)	—			—		58,764			—
Other assets	38,853			54,062			9,133		(5,279		)	96,769
Total assets	$	1,430,945		$	1,256,752		$	81,918	$	(1,241,935	)	$	1,527,680
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	150,793		$	1,368,456		$	4,366	$	(1,252,295	)	$	271,320
Long-term liabilities	724,801			2,183			22,429		(2,908		)	746,505
Shareholders’ equity	555,351			(113,887		)	55,123		13,268			509,855
Total liabilities and shareholders’ equity	$	1,430,945		$	1,256,752		$	81,918	$	(1,241,935	)	$	1,527,680

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	For The Three Months Ended June 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	4,608		$	79,210		$	—		$	—		$	83,818
Cost and expenses	32,818			51,429			75			(15,223		)	69,099
Operating income (loss)	(28,210		)	27,781			(75		)	15,223			14,719
Other income and (expense), net	34,187			(7,014		)	1,422			—			28,595
Income (loss) before income taxes	5,977			20,767			1,347			15,223			43,314
Income tax (expense) benefit	(2,092		)	(7,268		)	1,320			(6,770		)	(14,810		)
Equity in income (loss) of subsidiaries	16,166			—			—			(16,166		)	—
Net income (loss)	$	20,051		$	13,499		$	2,667		$	(7,713	)	$	28,504

	For The Three Months Ended June 30, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	9,389		$	41,283		$	—		$	—		$	50,672
Cost and expenses	21,788			24,237			143			(1,534		)	44,634
Operating income (loss)	(12,399		)	17,046			(143		)	1,534			6,038
Other income and (expense), net	15,242			(8,255		)	(1,681		)	—			5,306
Income before income taxes	2,843			8,791			(1,824		)	1,534			11,344
Income tax (expense) benefit	(784		)	(3,230		)	976			(564		)	(3,602		)
Equity in income (loss) of subsidiaries	4,713			—			—			(4,713		)	—
Net income (loss)	$	6,772		$	5,561		$	(848	)	$	(3,743	)	$	7,742

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	For The Six Months Ended June 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	11,397		$	153,136		$	—		$	—		$	164,533
Cost and expenses	47,365			94,107			153			(14,112		)	127,513
Operating income (loss)	(35,968		)	59,029			(153		)	14,112			37,020
Other income and (expense), net	35,314			(14,560		)	(1,019		)	—			19,735
Income (loss) before income taxes	(654		)	44,469			(1,172		)	14,112			56,755
Income tax (expense) benefit	229			(15,564		)	2,536			(6,029		)	(18,828		)
Equity in income (loss) of subsidiaries	30,269			—			—			(30,269		)	—
Net income (loss)	$	29,844		$	28,905		$	1,364		$	(22,186	)	$	37,927

	For The Six Months Ended June 30, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	18,164		$	76,566		$	—		$	—		$	94,730
Cost and expenses	37,969			43,647			143			(2,832		)	78,927
Operating income (loss)	(19,805		)	32,919			(143		)	2,832			15,803
Other income and (expense), net	11,098			(12,081		)	(1,681		)	—			(2,664		)
Income before income taxes	(8,707		)	20,838			(1,824		)	2,832			13,139
Income tax (expense) benefit	3,059			(7,656		)	976			(1,041		)	(4,662		)
Equity in income (loss) of subsidiaries	12,334			—			—			(12,334		)	—
Net income (loss)	$	6,686		$	13,182		$	(848	)	$	(10,543	)	$	8,477

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For The Six Months Ended June 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	44,412		$	101,585		$	(898	)	$	—		$	145,099
Net cash used in investing activities	(158,119		)	(188,743		)	(26,805		)	119,927			(253,740		)
Net cash provided by financing activities	101,298			93,120			26,807			(119,927		)	101,298
Net increase (decrease) in cash and cash equivalents	(12,409		)	5,962			(896		)	—			(7,343		)
Cash and cash equivalents, beginning of period	19,134			7,263			1,715			—			28,112
Cash and cash equivalents, end of period	$	6,725		$	13,225		$	819		$	—		$	20,769

	For The Six Months Ended June 30, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
							(In thousands)
Net cash provided by operating activities	$	18,563		$	56,042		$	(483	)	$	—		$	74,122
Net cash used in investing activities	(57,759		)	(114,348		)	(35,130		)	114,121			(93,116		)
Net cash provided by financing activities	42,199			65,766			45,124			(114,121		)	38,968
Net increase (decrease) in cash and cash equivalents	3,003			7,460			9,511			—			19,974
Cash and cash equivalents, beginning of period	1,418			2,710			—			—			4,128
Cash and cash equivalents, end of period	$	4,421		$	10,170		$	9,511		$	—		$	24,102