Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

10. Condensed Consolidating Financial Information

In November 2010 and November 2011, the Company and certain of the Company’s wholly-owned subsidiaries 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 June 30, 2013 and December 31, 2012, and for the three and six months ended June 30,2013 and 2012 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 such guarantor subsidiaries 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, 2013
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,779,723	$	153,382	$	—	$	(1,780,037	)	$	153,068
Assets of discontinued operations	6,875		—		—		—			6,875
Property and equipment, net	469		1,780,872		—		21,521			1,802,862
Investments in subsidiaries	20,539		—		—		(20,539		)	—
Other assets	52,108		—		—		(4,616		)	47,492
Total assets	$	1,859,714	$	1,934,254	$	—	$	(1,783,671	)	$	2,010,297
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	250,191	$	1,890,213	$	—	$	(1,780,037	)	$	360,367
Current liabilities of discontinued operations	9,936		—		—		—			9,936
Long-term liabilities	933,960		23,502		—		6,281			963,743
Long-term liabilities of discontinued operations	17,999		—		—		—			17,999
Shareholders’ equity (deficit)	647,628		20,539		—		(9,915		)	658,252
Total liabilities and shareholders’ equity	$	1,859,714	$	1,934,254	$	—	$	(1,783,671	)	$	2,010,297

	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
Investments in subsidiaries	14,588		—			—		(14,588		)	—
Long-term assets held for sale	12,670		—			119,956		—			132,626
Other assets	46,913		16,928			—		(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 (deficit)	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

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	For the Three Months Ended June 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	2,086		$	132,138		$	—	$	—		$	134,224
Cost and expenses	19,315			68,474			—		(183		)	87,606
Operating income (loss)	(17,229		)	63,664			—		183			46,618
Other income (expense), net	17,544			(5,780		)	—		—			11,764
Income (loss) from continuing operations before income taxes	315			57,884			—		183			58,382
Income tax (expense) benefit	(110		)	(20,365		)	—		(2,070		)	(22,545		)
Equity in income (loss) of subsidiaries	37,519			—			—		(37,519		)	—
Net income (loss) from continuing operations	37,724			37,519			—		(39,406		)	35,837
Net income from discontinued operations, net of income taxes	1,132			—			—		—			1,132
Net income (loss)	$	38,856		$	37,519		$	—	$	(39,406	)	$	36,969

	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	32,806			51,429			—		(15,223		)	69,012
Operating income (loss)	(28,198		)	27,781			—		15,223			14,806
Other income (expense), net	34,170			(7,014		)	—		—			27,156
Income (loss) from continuing operations before income taxes	5,972			20,767			—		15,223			41,962
Income tax (expense) benefit	(2,041		)	(7,268		)	—		(6,970		)	(16,279		)
Equity in income (loss) of subsidiaries	16,320			—			—		(16,320		)	—
Net income (loss) from continuing operations	20,251			13,499			—		(8,067		)	25,683
Net income from discontinued operations, net of income taxes	—			—			2,821		—			2,821
Net income (loss)	$	20,251		$	13,499		$	2,821	$	(8,067	)	$	28,504

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	For the Six Months Ended June 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	3,647		$	242,478		$	—	$	—		$	246,125
Cost and expenses	36,433			129,564			—		47			166,044
Operating income (loss)	(32,786		)	112,914			—		(47		)	80,081
Other income (expense), net	(5,681		)	(12,045		)	—		—			(17,726		)
Income (loss) from continuing operations before income taxes	(38,467		)	100,869			—		(47		)	62,355
Income tax (expense) benefit	13,463			(35,410		)	—		(2,047		)	(23,994		)
Equity in income (loss) of subsidiaries	65,459			—			—		(65,459		)	—
Net income (loss) from continuing operations	40,455			65,459			—		(67,553		)	38,361
Net income from discontinued operations, net of income taxes	24,790			—			—		—			24,790
Net income (loss)	$	65,245		$	65,459		$	—	$	(67,553	)	$	63,151

	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	47,352			94,107			—		(14,112		)	127,347
Operating income (loss)	(35,955		)	59,029			—		14,112			37,186
Other income (expense), net	35,297			(14,560		)	—		—			20,737
Income (loss) from continuing operations before income taxes	(658		)	44,469			—		14,112			57,923
Income tax (expense) benefit	229			(15,564		)	—		(6,229		)	(21,564		)
Equity in income (loss) of subsidiaries	30,473			—			—		(30,473		)	—
Net income (loss) from continuing operations	30,044			28,905			—		(22,590		)	36,359
Net income from discontinued operations, net of income taxes	—			—			1,568		—			1,568
Net income (loss)	$	30,044		$	28,905		$	1,568	$	(22,590	)	$	37,927

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Six Months Ended June 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities - continuing operations	$	4,319		$	209,403		$	—		$	—		$	213,722
Net cash provided by (used in) investing activities - continuing operations	(142,476		)	(428,774		)	—			219,183			(352,067		)
Net cash provided by (used in) financing activities - continuing operations	(41,521		)	219,183			—			(219,183		)	(41,521		)
Net cash provided by (used in) discontinued operations	131,618			—			(519		)	—			131,099
Net increase (decrease) in cash and cash equivalents	(48,060		)	(188		)	(519		)	—			(48,767		)
Cash and cash equivalents, beginning of period	51,894			201			519			—			52,614
Cash and cash equivalents, end of period	$	3,834		$	13		$	—		$	—		$	3,847

	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 - continuing operations	$	43,723		$	101,585		$	—		$	—		$	145,308
Net cash provided by (used in) investing activities - continuing operations	(165,100		)	(188,743		)	—			119,927			(233,916		)
Net cash provided by (used in) financing activities - continuing operations	108,986			93,120			—			(119,927		)	82,179
Net cash used in discontinued operations	(18		)	—			(896		)	—			(914		)
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