Guarantor/Non-Guarantor Condensed Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2012

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	8,663		$	(3,648	)	$	1,276		$	—		$	6,291
Receivables, net of allowance	6			132,086			44,976			(3,533		)	173,535
Intercompany receivable (payable)	(125,111		)	143,717			(18,606		)	—			—
Deferred income taxes	751			7,245			8,113			—			16,109
Inventory	—			5,265			6,912			—			12,177
Prepaid expenses and other current assets	1,403			6,490			2,126			—			10,019
Total current assets	(114,288		)	291,155			44,797			(3,533		)	218,131
Net property and equipment	2,502			846,828			134,144			(750		)	982,724
Investment in subsidiaries	1,099,973			223,520			—			(1,323,493		)	—
Intangible assets, net of accumulated amortization	66			15,636			30,318			—			46,020
Goodwill	—			—			41,683			—			41,683
Noncurrent deferred income taxes	47,649			—			373			(47,649		)	373
Other long-term assets	10,114			1,423			2,716			—			14,253
Total assets	$	1,046,016		$	1,378,562		$	254,031		$	(1,375,425	)	$	1,303,184
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	761		$	70,738		$	13,420		—			$	84,919
Current portion of long-term debt	—			850			22			—			872
Prepaid drilling contracts	—			2,207			673			—			2,880
Accrued expenses	3,630			45,728			13,136			(3,533		)	58,961
Total current liabilities	4,391			119,523			27,251			(3,533		)	147,632
Long-term debt, less current portion	498,389			—			113			—			498,502
Noncurrent deferred income taxes	—			154,351			1,025			(47,649		)	107,727
Other long-term liabilities	151			4,715			2,122			—			6,988
Total liabilities	502,931			278,589			30,511			(51,182		)	760,849
Total shareholders’ equity	543,085			1,099,973			223,520			(1,324,243		)	542,335
Total liabilities and shareholders’ equity	$	1,046,016		$	1,378,562		$	254,031		$	(1,375,425	)	$	1,303,184
	December 31, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	91,932		$	(13,879	)	$	8,144		$	—		$	86,197
Receivables, net of allowance	(2		)	112,531			32,724			(19		)	145,234
Intercompany receivable (payable)	(122,552		)	131,585			(9,033		)	—			—
Deferred income taxes	1,408			8,644			5,381			—			15,433
Inventory	—			4,533			6,651			—			11,184
Prepaid expenses and other current assets	285			6,304			4,975			—			11,564
Total current assets	(28,929		)	249,718			48,842			(19		)	269,612
Net property and equipment	1,605			675,679			117,422			(750		)	793,956
Investment in subsidiaries	932,237			221,201			—			(1,153,438		)	—
Intangible assets, net of accumulated amortization	171			18,829			33,680			—			52,680
Goodwill	—			—			41,683			—			41,683
Noncurrent deferred income taxes	30,835			—			735			(30,835		)	735
Other long-term assets	11,949			2,124			15			—			14,088
Total assets	$	947,868		$	1,167,551		$	242,377		$	(1,185,042	)	$	1,172,754
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,090		$	57,150		$	8,200		$	—		$	66,440
Current portion of long-term debt	—			850			22			—			872
Prepaid drilling contracts	—			1,297			2,669			—			3,966
Accrued expenses	16,779			45,012			6,631			(20		)	68,402
Total current liabilities	17,869			104,309			17,522			(20		)	139,680
Long-term debt, less current portion	417,747			850			131			—			418,728
Noncurrent deferred income taxes	921			124,659			—			(30,835		)	94,745
Other long-term liabilities	137			5,496			3,523			—			9,156
Total liabilities	436,674			235,314			21,176			(30,855		)	662,309
Total shareholders’ equity	511,194			932,237			221,201			(1,154,187		)	510,445
Total liabilities and shareholders’ equity	$	947,868		$	1,167,551		$	242,377		$	(1,185,042	)	$	1,172,754

Supplemental Guarantor Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

	Three months ended September 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	191,753		$	38,020		$	—		$	229,773
Costs and expenses:
Operating costs	—			125,295			28,288			—			153,583
Depreciation and amortization	201			35,727			6,139			—			42,067
General and administrative	5,653			12,780			2,974			(138		)	21,269
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt (recovery) expense	—			(412		)	44			—			(368		)
Total costs and expenses	5,854			172,175			38,660			(138		)	216,551
Income (loss) from operations	(5,854		)	19,578			(640		)	138			13,222
Other income (expense):
Equity in earnings of subsidiaries	11,274			(441		)	—			(10,833		)	—
Interest expense	(9,440		)	(26		)	13			—			(9,453		)
Other	477			210			(242		)	(138		)	307
Total other expense (income)	2,311			(257		)	(229		)	(10,971		)	(9,146		)
Income (loss) before income taxes	(3,543		)	19,321			(869		)	(10,833		)	4,076
Income tax expense (benefit)	6,158			(8,047		)	428			—			(1,461		)
Net income (loss)	$	2,615		$	11,274		$	(441	)	$	(10,833	)	$	2,615
	Three months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	159,662		$	27,989		$	—		$	187,651
Costs and expenses:
Operating costs	—			95,021			21,803			—			116,824
Depreciation and amortization	198			29,653			3,141			—			32,992
General and administrative	4,983			12,132			698			(108		)	17,705
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt (recovery) expense	—			322			—			—			322
Impairment of equipment	—			484			—			—			484
Total costs and expenses	5,181			136,397			26,857			(108		)	168,327
Income (loss) from operations	(5,181		)	23,265			1,132			108			19,324
Other income (expense):
Equity in earnings of subsidiaries	13,663			(642		)	—			(13,021		)	—
Interest expense	(6,083		)	(58		)	4			—			(6,137		)
Other	(73		)	220			(1,232		)	(108		)	(1,193		)
Total other income (expense)	7,507			(480		)	(1,228		)	(13,129		)	(7,330		)
Income (loss) before income taxes	2,326			22,785			(96		)	(13,021		)	11,994
Income tax expense (benefit)	4,418			(9,122		)	(546		)	—			(5,250		)
Net income (loss)	$	6,744		$	13,663		$	(642	)	$	(13,021	)	$	6,744

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

	Nine months ended September 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	575,927		$	115,648		$	—		$	691,575
Costs and expenses:
Operating costs	—			356,880			82,790			—			439,670
Depreciation and amortization	658			102,216			17,555			—			120,429
General and administrative	16,713			40,151			8,227			(414		)	64,677
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt (recovery) expense	—			(687		)	172			—			(515		)
Impairment of equipment	—			1,032			—			—			1,032
Total costs and expenses	17,371			495,947			112,389			(414		)	625,293
Income (loss) from operations	(17,371		)	79,980			3,259			414			66,282
Other income (expense):
Equity in earnings of subsidiaries	52,794			3,820			—			(56,614		)	—
Interest expense	(26,648		)	(23		)	13			—			(26,658		)
Other	337			710			626			(414		)	1,259
Total other expense (income)	26,483			4,507			639			(57,028		)	(25,399		)
Income (loss) before income taxes	9,112			84,487			3,898			(56,614		)	40,883
Income tax expense (benefit)	17,360			(31,693		)	(78		)	—			(14,411		)
Net income (loss)	$	26,472		$	52,794		$	3,820		$	(56,614	)	$	26,472
	Nine months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	430,820		$	81,465		$	—		$	512,285
Costs and expenses:
Operating costs	—			265,933			62,572			—			328,505
Depreciation and amortization	685			87,782			9,205			—			97,672
General and administrative	13,876			32,502			2,032			(324		)	48,086
Intercompany leasing	—			(3,645		)	3,645			—			—
Bad debt (recovery) expense	—			377			—			—			377
Impairment of equipment	—			484			—			—			484
Total costs and expenses	14,561			383,433			77,454			(324		)	475,124
Income (loss) from operations	(14,561		)	47,387			4,011			324			37,161
Other income (expense):
Equity in earnings of subsidiaries	26,164			(3,079		)	—			(23,085		)	—
Interest expense	(21,487		)	(187		)	15			—			(21,659		)
Other	384			671			(7,687		)	(324		)	(6,956		)
Total other income (expense)	5,061			(2,595		)	(7,672		)	(23,409		)	(28,615		)
Income (loss) before income taxes	(9,500		)	44,792			(3,661		)	(23,085		)	8,546
Income tax (expense) benefit	13,859			(18,628		)	582			—			(4,187		)
Net income (loss)	$	4,359		$	26,164		$	(3,079	)	$	(23,085	)	$	4,359

Supplemental Guarantor Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Nine months ended September 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(162,064	)	$	270,791		$	20,585		$	—	$	129,312
Cash flows from investing activities:
Purchases of property and equipment	(1,474		)	(262,071		)	(27,506		)	—		(291,051		)
Proceeds from sale of property and equipment	—			2,361			72			—		2,433
	(1,474		)	(259,710		)	(27,434		)	—		(288,618		)
Cash flows from financing activities:
Debt repayments	—			(850		)	(19		)	—		(869		)
Proceeds from issuance of debt	80,000			—			—			—		80,000
Debt issuance costs	(58		)	—			—			—		(58		)
Proceeds from exercise of options	684			—			—			—		684
Purchase of treasury stock	(357		)	—			—			—		(357		)
	80,269			(850		)	(19		)	—		79,400
Net increase (decrease) in cash and cash equivalents	(83,269		)	10,231			(6,868		)	—		(79,906		)
Beginning cash and cash equivalents	91,932			(13,879		)	8,144			—		86,197
Ending cash and cash equivalents	$	8,663		$	(3,648	)	$	1,276		$	—	$	6,291
	Nine months ended September 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(62,332	)	$	135,116		$	3,421		$	—	$	76,205
Cash flows from investing activities:
Acquisition of production services businesses	—			(5,000		)	—			—		(5,000		)
Purchases of property and equipment	(431		)	(133,645		)	(6,489		)	—		(140,565		)
Proceeds from sale of property and equipment	7			2,247			7			—		2,261
Proceeds from sale of auction rate securities	12,569			—			—			—		12,569
	12,145			(136,398		)	(6,482		)	—		(130,735		)
Cash flows from financing activities:
Debt repayments	(111,812		)	(1,346		)	—			—		(113,158		)
Proceeds from issuance of debt	74,000			—			—			—		74,000
Debt issuance costs	(3,220		)	—			—			—		(3,220		)
Proceeds from exercise of options	2,344			—			—			—		2,344
Proceeds from common stock, net of offering costs of $5,707	94,340			—			—			—		94,340
Purchase of treasury stock	(452		)	—			—			—		(452		)
Excess tax benefit of stock option exercises	522			—			—			—		522
	55,722			(1,346		)	—			—		54,376
Net increase (decrease) in cash and cash equivalents	5,535			(2,628		)	(3,061		)	—		(154		)
Beginning cash and cash equivalents	15,737			(1,840		)	8,114			—		22,011
Ending cash and cash equivalents	$	21,272		$	(4,468	)	$	5,053		$	—	$	21,857