Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

14. 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 8.625% Senior Notes. Certain, but not all, of the Company’s wholly owned subsidiaries have issued full, unconditional and joint and several guarantees of the 8.625% 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 for any and all of its unregistered $400.0 million and $200.0 million aggregate principal amount of 8.625% Senior Notes, respectively. In September 2012, the Company and certain of the Company’s wholly owned subsidiaries issued in a public offering $300.0 million aggregate principal amount of the Company’s 7.50% Senior Notes.

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 December 31, 2012 and December 31, 2011, and for each of the three years ended December 31, 2012, 2011 and 2010 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

	December 31, 2012
	Parent Company		Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,689,430	$	130,487		$	—	$	(1,613,094	)	$	206,823
Current assets held for sale	—		—			1,882		—			1,882
Property and equipment, net	23,041		1,443,064			—		21,569			1,487,674
Investment in subsidiaries	14,588		—			—		(14,588		)	—
Long-term assets held for sale	24,488		—			108,138		—			132,626
Other assets	35,095		16,928			11,818		(8,850		)	54,991
Total assets	$	1,786,642	$	1,590,479		$	121,838	$	(1,614,963	)	$	1,883,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	179,221	$	1,631,887		$	—	$	(1,560,853	)	$	250,255
Current liabilities associated with assets held for sale	9,880		—			38,783		—			48,663
Long-term liabilities	973,003		3,512			—		—			976,515
Long-term liabilities associated with assets held for sale	—		—			23,547		—			23,547
Shareholders’ equity	624,538		(44,920		)	59,508		(54,110		)	585,016
Total liabilities and shareholders’ equity	$	1,786,642	$	1,590,479		$	121,838	$	(1,614,963	)	$	1,883,996

	December 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,349,841		$	71,018		$	—	$	(1,304,336	)	$	116,523
Current assets held for sale	—			—			3,874		—			3,874
Property and equipment, net	100,329			1,131,672			—		8,916			1,240,917
Investment in subsidiaries	(58,764		)	—			—		58,764			—
Long-term assets held for sale	687			—			78,044		—			78,731
Other assets	38,852			54,062			—		(5,279		)	87,635
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		$	128	$	(1,252,295	)	$	267,082
Current liabilities associated with assets held for sale	—			—			4,238		—			4,238
Long-term liabilities	724,801			2,183			—		(2,908		)	724,076
Long-term liabilities associated with assets held for sale	—			—			22,429		—			22,429
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 INCOME

	For The Year Ended December 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	20,195		$	347,985		$	—	$	—		$	368,180
Costs and expenses	76,839			205,341			—		(12,653		)	269,527
Operating income (loss)	(56,644		)	142,644			—		12,653			98,653
Other income (expense), net	20,022			(36,542		)	—		—			(16,520		)
Income (loss) from continuing operations before income taxes	(36,622		)	106,102			—		12,653			82,133
Income tax (expense) benefit	12,658			(37,136		)	—		(6,478		)	(30,956		)
Equity in income (loss) of subsidiaries	73,150			—			—		(73,150		)	—
Net income (loss) from continuing operations	49,186			68,966			—		(66,975		)	51,177
Net income from discontinued operations, net of income taxes	126			—			4,184		—			4,310
Net income (loss)	$	49,312		$	68,966		$	4,184	$	(66,975	)	$	55,487

	For The Year Ended December 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	31,875		$	170,292		$	—	$	—		$	202,167
Costs and expenses	68,652			100,255			—		(4,891		)	164,016
Operating income (loss)	(36,777		)	70,037			—		4,891			38,151
Other income (expense), net	41,182			(21,188		)	—		—			19,994
Income from continuing operations before income taxes	4,405			48,849			—		4,891			58,145
Income tax (expense) benefit	(1,209		)	(22,612		)	—		(1,790		)	(25,611		)
Equity in income (loss) of subsidiaries	29,319			—			—		(29,319		)	—
Net income (loss) from continuing operations	32,515			26,237			—		(26,218		)	32,534
Net income from discontinued operations, net of income taxes	1,013						3,082					4,095
Net income (loss)	$	33,528		$	26,237		$	3,082	$	(26,218	)	$	36,629

	For The Year Ended December 31, 2010
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	33,203		$	104,920		$	—	$	—		$	138,123
Costs and expenses	62,375			55,815			—		(4,024		)	114,166
Operating income (loss)	(29,172		)	49,105			—		4,024			23,957
Other income (expense), net	4,974			(10,521		)	—		—			(5,547		)
Income (loss) from continuing operations before income taxes	(24,198		)	38,584			—		4,024			18,410
Income tax (expense) benefit	8,308			(13,542		)	—		(1,451		)	(6,685		)
Equity in income (loss) of subsidiaries	25,042			—			—		(25,042		)	—
Net income (loss) from continuing operations	9,152			25,042			—		(22,469		)	11,725
Net loss from discontinued operations, net of income taxes	(1,775		)	—			—		—			(1,775		)
Net income (loss)	$	7,377		$	25,042		$	—	$	(22,469	)	$	9,950

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For The Year Ended December 31, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities - continuing operations	$	75,546		$	177,525		$	—		$	—		$	253,071
Net cash used in investing activities - continuing operations	(280,564		)	(493,145		)	—			308,558			(465,151		)
Net cash provided by financing activities - continuing operations	237,778			308,558			—			(308,558		)	237,778
Net increase (decrease) in cash and cash equivalents from continuing operations	32,760			(7,062		)	—			—			25,698
Net increase (decrease) in cash and cash equivalents from discontinued operations	—			—			(1,196		)	—			(1,196		)
Cash and cash equivalents, beginning of year - continuing operations	19,134			7,263			—			—			26,397
Cash and cash equivalents, end of year - continuing operations	$	51,894		$	201		$	—		$	—		$	52,095
Cash and cash equivalents, beginning of year - discontinued operations	—			—			1,715			—			1,715
Cash and cash equivalents, end of year - discontinued operations	$	—		$	—		$	519		$	—		$	519

	For The Year Ended December 31, 2011
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities - continuing operations	$	56,563		$	98,948		$	—	$	—		$	155,511
Net cash used in investing activities - continuing operations	(194,689		)	(356,168		)	—		300,789			(250,068		)
Net cash provided by financing activities - continuing operations	155,842			261,773			—		(300,789		)	116,826
Net increase (decrease) in cash and cash equivalents from continuing operations	17,716			4,553			—		—			22,269
Net increase (decrease) in cash and cash equivalents from discontinued operations							1,715					1,715
Cash and cash equivalents, beginning of year - continuing operations	1,418			2,710			—		—			4,128
Cash and cash equivalents, end of year - continuing operations	$	19,134		$	7,263		$	—	$	—		$	26,397
Cash and cash equivalents, beginning of year - discontinued operations	—			—			—		—			—
Cash and cash equivalents, end of year - discontinued operations	$	—		$	—		$	1,715	$	—		$	1,715

	For The Year Ended December 31, 2010
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities - continuing operations	$	24,781		$	69,635		$	—	$	—		$	94,416
Net cash used in investing activities - continuing operations	(194,690		)	(268,069		)	—		198,644			(264,115		)
Net cash provided by financing activities - continuing operations	169,990			198,644			—		(198,644		)	169,990
Net increase (decrease) in cash and cash equivalents from continuing operations	81			210			—		—			291
Net increase (decrease) in cash and cash equivalents from discontinued operations	—			—			—		—			—
Cash and cash equivalents, beginning of year - continuing operations	1,337			2,500			—		—			3,837
Cash and cash equivalents, end of year - continuing operations	$	1,418		$	2,710		$	—	$	—		$	4,128
Cash and cash equivalents, beginning of year - discontinued operations	—			—			—		—			—
Cash and cash equivalents, end of year - discontinued operations	$	—		$	—		$	—	$	—		$	—