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

6 Months Ended

Jun. 30, 2012

Guarantor Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	June 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	20,768		$	(3,665	)	$	3,277		$	—		$	20,380
Receivables, net of allowance	4			124,591			44,708			(1,810		)	167,493
Intercompany receivable (payable)	(125,333		)	145,911			(20,578		)	—			—
Deferred income taxes	620			6,704			7,026			—			14,350
Inventory	—			5,187			8,024			—			13,211
Prepaid expenses and other current assets	1,197			9,294			2,842			—			13,333
Total current assets	(102,744		)	288,022			45,299			(1,810		)	228,767
Net property and equipment	2,301			807,952			129,942			(750		)	939,445
Investment in subsidiaries	1,054,605			223,940			—			(1,278,545		)	—
Intangible assets, net of amortization	59			16,707			31,439			—			48,205
Goodwill	—			—			41,683			—			41,683
Noncurrent deferred income taxes	41,608			—			1,242			(41,608		)	1,242
Other long-term assets	10,611			1,440			15			—			12,066
Total assets	$	1,006,440		$	1,338,061		$	249,620		$	(1,322,713	)	$	1,271,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,092		$	85,075		$	9,022		—			$	95,189
Current portion of long-term debt	—			850			21			—			871
Prepaid drilling contracts	—			2,726			1,345			—			4,071
Accrued expenses	13,381			44,420			10,763			(1,810		)	66,754
Total current liabilities	14,473			133,071			21,151			(1,810		)	166,885
Long-term debt, less current portion	453,170			—			120			—			453,290
Noncurrent deferred income taxes	—			145,902			1,395			(41,608		)	105,689
Other long-term liabilities	110			4,483			3,014			—			7,607
Total liabilities	467,753			283,456			25,680			(43,418		)	733,471
Total shareholders’ equity	538,687			1,054,605			223,940			(1,279,295		)	537,937
Total liabilities and shareholders’ equity	$	1,006,440		$	1,338,061		$	249,620		$	(1,322,713	)	$	1,271,408
	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 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 June 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	193,332		$	36,492		$	—		$	229,824
Costs and expenses:
Operating costs	—			116,644			27,670			—			144,314
Depreciation and amortization	292			33,800			5,897			—			39,989
General and administrative	5,552			14,339			2,512			(138		)	22,265
Intercompany leasing	—			(1,215		)	1,199			16			—
Bad debt (recovery) expense	—			(95		)	39			—			(56		)
Total costs and expenses	5,844			163,473			37,317			(122		)	206,512
Income (loss) from operations	(5,844		)	29,859			(825		)	122			23,312
Other (expense) income:
Equity in earnings of subsidiaries	17,970			(387		)	—			(17,583		)	—
Interest expense	(7,695		)	43			2			—			(7,650		)
Other	(72		)	250			(36		)	(122		)	20
Total other expense	10,203			(94		)	(34		)	(17,705		)	(7,630		)
Income (loss) before income taxes	4,359			29,765			(859		)	(17,583		)	15,682
Income tax (expense) benefit	5,326			(11,795		)	472			—			(5,997		)
Net income (loss)	$	9,685		$	17,970		$	(387	)	$	(17,583	)	$	9,685
	Three months ended June 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	142,043		$	29,242		$	—		$	171,285
Costs and expenses:
Operating costs	—			89,034			21,910			—			110,944
Depreciation and amortization	212			29,011			3,201			—			32,424
General and administrative	4,762			10,480			726			(108		)	15,860
Intercompany leasing	—			(1,215		)	1,215			—			—
Bad debt expense	—			139			—			—			139
Total costs and expenses	4,974			127,449			27,052			(108		)	159,367
Income (loss) from operations	(4,974		)	14,594			2,190			108			11,918
Other income (expense):
Equity in earnings of subsidiaries	11,694			2,590			—			(14,284		)	—
Interest expense	(7,932		)	(56		)	5			—			(7,983		)
Other	(75		)	215			722			(108		)	754
Total other income (expense)	3,687			2,749			727			(14,392		)	(7,229		)
Income (loss) before income taxes	(1,287		)	17,343			2,917			(14,284		)	4,689
Income tax (expense) benefit	4,937			(5,649		)	(327		)	—			(1,039		)
Net income (loss)	$	3,650		$	11,694		$	2,590		$	(14,284	)	$	3,650

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

	Six months ended June 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:	$	—		$	384,174		$	77,628		$	—		$	461,802
Costs and expenses:
Operating costs	—			231,585			54,502			—			286,087
Depreciation and amortization	457			66,489			11,416			—			78,362
General and administrative	11,060			27,371			5,253			(276		)	43,408
Intercompany leasing	—			(2,430		)	2,430			—			—
Bad debt (recovery) expense	—			(275		)	128			—			(147		)
Impairment of equipment	—			1,032			—			—			1,032
Total costs and expenses	11,517			323,772			73,729			(276		)	408,742
Income (loss) from operations	(11,517		)	60,402			3,899			276			53,060
Other (expense) income:
Equity in earnings of subsidiaries	41,520			4,261			—			(45,781		)	—
Interest expense	(17,208		)	3			—			—			(17,205		)
Other	(140		)	500			868			(276		)	952
Total other expense	24,172			4,764			868			(46,057		)	(16,253		)
Income (loss) before income taxes	12,655			65,166			4,767			(45,781		)	36,807
Income tax (expense) benefit	11,202			(23,646		)	(506		)	—			(12,950		)
Net income (loss)	$	23,857		$	41,520		$	4,261		$	(45,781	)	$	23,857
	Six months ended June 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:	$	—		$	271,158		$	53,476		$	—		$	324,634
Costs and expenses:
Operating costs	—			170,912			40,769			—			211,681
Depreciation and amortization	487			58,129			6,064			—			64,680
General and administrative	8,893			20,370			1,334			(216		)	30,381
Intercompany leasing	—			(2,430		)	2,430			—			—
Bad debt expense	—			55			—			—			55
Total costs and expenses	9,380			247,036			50,597			(216		)	306,797
Income (loss) from operations	(9,380		)	24,122			2,879			216			17,837
Other income (expense):
Equity in earnings of subsidiaries	12,501			(2,437		)	—			(10,064		)	—
Interest expense	(15,404		)	(129		)	11			—			(15,522		)
Other	457			451			(6,455		)	(216		)	(5,763		)
Total other income (expense)	(2,446		)	(2,115		)	(6,444		)	(10,280		)	(21,285		)
Income (loss) before income taxes	(11,826		)	22,007			(3,565		)	(10,064		)	(3,448		)
Income tax (expense) benefit	9,441			(9,506		)	1,128			—			1,063
Net income (loss)	$	(2,385	)	$	12,501		$	(2,437	)	$	(10,064	)	$	(2,385	)

Supplemental Guarantor Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Six months ended June 30, 2012
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(105,441	)	$	181,850		$	15,289		$	—	$	91,698
Cash flows from investing activities:
Purchases of property and equipment	(998		)	(172,671		)	(20,215		)	—		(193,884		)
Proceeds from sale of property and equipment	—			1,885			72			—		1,957
	(998		)	(170,786		)	(20,143		)	—		(191,927		)
Cash flows from financing activities:
Debt repayments	—			(850		)	(13		)	—		(863		)
Proceeds from issuance of debt	35,000			—			—			—		35,000
Debt issuance costs	(23		)	—			—			—		(23		)
Proceeds from exercise of options	655			—			—			—		655
Purchase of treasury stock	(357		)	—			—			—		(357		)
	35,275			(850		)	(13		)	—		34,412
Net increase (decrease) in cash and cash equivalents	(71,164		)	10,214			(4,867		)	—		(65,817		)
Beginning cash and cash equivalents	91,932			(13,879		)	8,144			—		86,197
Ending cash and cash equivalents	$	20,768		$	(3,665	)	$	3,277		$	—	$	20,380
	Six months ended June 30, 2011
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities	$	(20,670	)	$	73,595		$	686		$	—	$	53,611
Cash flows from investing activities:
Acquisition of production services businesses	—			(2,000		)	—			—		(2,000		)
Purchases of property and equipment	(270		)	(74,542		)	(4,384		)	—		(79,196		)
Proceeds from sale of property and equipment	—			1,993			7			—		2,000
Proceeds from sale of auction rate securities	12,569			—			—			—		12,569
	12,299			(74,549		)	(4,377		)	—		(66,627		)
Cash flows from financing activities:
Debt repayments	(12,813		)	(929		)	—			—		(13,742		)
Proceeds from issuance of debt	17,000			—			—			—		17,000
Debt issuance costs	(3,186		)	—			—			—		(3,186		)
Proceeds from exercise of options	2,091			—			—			—		2,091
Purchase of treasury stock	(352		)	—			—			—		(352		)
Excess tax benefit of stock option exercises	696			—			—			—		696
	3,436			(929		)	—			—		2,507
Net decrease in cash and cash equivalents	(4,935		)	(1,883		)	(3,691		)	—		(10,509		)
Beginning cash and cash equivalents	15,737			(1,840		)	8,114			—		22,011
Ending cash and cash equivalents	$	10,802		$	(3,723	)	$	4,423		$	—	$	11,502