Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

10. Condensed Consolidating Financial Information

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 September 30, 2013 and December 31, 2012, and for the three and nine months ended September 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

	September 30, 2013
	Parent Company		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets	$	1,799,935	$	182,326	$	—	$	(1,845,096	)	$	137,165
Property and equipment, net	652		1,877,367		1,624		21,429			1,901,072
Investments in subsidiaries	61,297		—		—		(61,297		)	—
Other assets	51,136		—		—		(17,378		)	33,758
Total assets	$	1,913,020	$	2,059,693	$	1,624	$	(1,902,342	)	$	2,071,995
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	234,737	$	1,952,129	$	1,624	$	(1,845,096	)	$	343,394
Current liabilities of discontinued operations	10,670		—		—		—			10,670
Long-term liabilities	993,043		46,267		—		(7,199		)	1,032,111
Long-term liabilities of discontinued operations	17,742		—		—		—			17,742
Shareholders’ equity (deficit)	656,828		61,297		—		(50,047		)	668,078
Total liabilities and shareholders’ equity	$	1,913,020	$	2,059,693	$	1,624	$	(1,902,342	)	$	2,071,995

	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 September 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	2,428		$	141,901		$	—	$	—		$	144,329
Cost and expenses	20,994			74,640			—		92			95,726
Operating income (loss)	(18,566		)	67,261			—		(92		)	48,603
Other income (expense), net	(36,314		)	(4,718		)	—		—			(41,032		)
Income (loss) from continuing operations before income taxes	(54,880		)	62,543			—		(92		)	7,571
Income tax (expense) benefit	19,208			(21,784		)	—		717			(1,859		)
Equity in income (loss) of subsidiaries	40,759			—			—		(40,759		)	—
Net income (loss) from continuing operations	5,087			40,759			—		(40,134		)	5,712
Net income from discontinued operations, net of income taxes	(1,191		)	—			—		—			(1,191		)
Net income (loss)	$	3,896		$	40,759		$	—	$	(40,134	)	$	4,521

	For the Three Months Ended September 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	4,459		$	91,738		$	—	$	—		$	96,197
Cost and expenses	15,256			56,135			—		488			71,879
Operating income (loss)	(10,797		)	35,603			—		(488		)	24,318
Other income (expense), net	(16,407		)	(10,448		)	—		—			(26,855		)
Income (loss) from continuing operations before income taxes	(27,204		)	25,155			—		(488		)	(2,537		)
Income tax (expense) benefit	9,531			(8,796		)	—		(143		)	592
Equity in income (loss) of subsidiaries	17,374			—			—		(17,374		)	—
Net income (loss) from continuing operations	(299		)	16,359			—		(18,005		)	(1,945		)
Net income from discontinued operations, net of income taxes	—			—			1,015		—			1,015
Net income (loss)	$	(299	)	$	16,359		$	1,015	$	(18,005	)	$	(930	)

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	For the Nine Months Ended September 30, 2013
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	6,075		$	384,379		$	—	$	—		$	390,454
Cost and expenses	57,427			204,204			—		139			261,770
Operating income (loss)	(51,352		)	180,175			—		(139		)	128,684
Other income (expense), net	(41,995		)	(16,763		)	—		—			(58,758		)
Income (loss) from continuing operations before income taxes	(93,347		)	163,412			—		(139		)	69,926
Income tax (expense) benefit	32,671			(57,194		)	—		(1,330		)	(25,853		)
Equity in income (loss) of subsidiaries	106,218			—			—		(106,218		)	—
Net income (loss) from continuing operations	45,542			106,218			—		(107,687		)	44,073
Net income from discontinued operations, net of income taxes	23,599			—			—		—			23,599
Net income (loss)	$	69,141		$	106,218		$	—	$	(107,687	)	$	67,672

	For the Nine Months Ended September 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(In thousands)
Oil and gas revenues	$	15,856		$	244,874		$	—	$	—		$	260,730
Cost and expenses	62,608			150,242			—		(13,624		)	199,226
Operating income (loss)	(46,752		)	94,632			—		13,624			61,504
Other income (expense), net	18,890			(25,008		)	—		—			(6,118		)
Income (loss) from continuing operations before income taxes	(27,862		)	69,624			—		13,624			55,386
Income tax (expense) benefit	9,760			(24,360		)	—		(6,372		)	(20,972		)
Equity in income (loss) of subsidiaries	47,847			—			—		(47,847		)	—
Net income (loss) from continuing operations	29,745			45,264			—		(40,595		)	34,414
Net income from discontinued operations, net of income taxes	—			—			2,583		—			2,583
Net income (loss)	$	29,745		$	45,264		$	2,583	$	(40,595	)	$	36,997

CARRIZO OIL & GAS, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Nine Months Ended September 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	$	(22,222	)	$	332,475		$	—		$	—		$	310,253
Net cash provided by (used in) investing activities - continuing operations	(170,725		)	(601,936		)	(1,624		)	270,884			(503,401		)
Net cash provided by (used in) financing activities - continuing operations	17,439			269,260			1,624			(270,884		)	17,439
Net cash provided by (used in) discontinued operations	129,342			—			(519		)	—			128,823
Net increase (decrease) in cash and cash equivalents	(46,166		)	(201		)	(519		)	—			(46,886		)
Cash and cash equivalents, beginning of period	51,894			201			519			—			52,614
Cash and cash equivalents, end of period	$	5,728		$	—		$	—		$	—		$	5,728

	For the Nine Months Ended September 30, 2012
	Parent Company			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities - continuing operations	$	31,974		$	144,665		$	—		$	—		$	176,639
Net cash provided by (used in) investing activities - continuing operations	(306,682		)	(379,182		)	—			249,644			(436,220		)
Net cash provided by (used in) financing activities - continuing operations	264,344			232,369			—			(249,644		)	247,069
Net cash used in discontinued operations				—			(1,312		)	—			(1,312		)
Net increase (decrease) in cash and cash equivalents	(10,364		)	(2,148		)	(1,312		)	—			(13,824		)
Cash and cash equivalents, beginning of period	19,134			7,263			1,715			—			28,112
Cash and cash equivalents, end of period	$	8,770		$	5,115		$	403		$	—		$	14,288