CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Information Disclosure [Abstract]

(Unaudited)

(In Thousands)



	September 30, 2011												December 31, 2010
	Parent Company		Guarantor Subsidiary		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated		Parent Company		Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	269,385	$	—	$	704		$	—		$	270,089	$	216,580	$	3		$	986		$	—		$	217,569
Accounts receivable	37,856		33,870		2,003			(1,090		)	72,639		50,024		50,211			2,886			(796		)	102,325
Note receivable from subsidiary	—		—		—			—			—		250,183		—			—			(250,183		)	—
Other current assets	110,598		312		584			—			111,494		110,766		755			126			—			111,647
Current assets of discontinued operations	—		—		—			—			—		—		—			50,142			—			50,142
Total current assets	417,839		34,182		3,291			(1,090		)	454,222		627,553		50,969			54,140			(250,979		)	481,683
Property and equipment, at cost	7,832,778		1,289,951		270,519			—			9,393,248		7,403,398		1,198,138			199,181			—			8,800,717
Less accumulated depreciation, depletion, and amortization	5,733,765		1,087,840		64,256			—			6,885,861		5,618,604		1,049,647			62,193			—			6,730,444
Net property and equipment	2,099,013		202,111		206,263			—			2,507,387		1,784,794		148,491			136,988			—			2,070,273
Investment in subsidiaries	148,335		—		—			(148,335		)	—		436,772		—			—			(436,772		)	—
Goodwill	216,460		22,960		—			—			239,420		216,460		22,960			—			—			239,420
Due from (to) parent and subsidiaries	209,372		39,071		(248,443		)	—			—		188,925		(13,388		)	(175,537		)	—			—
Deferred income taxes	310,453		—		23,967			(97,862		)	236,558		330,309		—			21,654			(67,942		)	284,021
Other assets	60,512		6		—			—			60,518		44,936		6			—			—			44,942
Long-term assets of discontinued operations	—		—		—			—			—		—		—			665,049			—			665,049
	$	3,461,984	$	298,330	$	(14,922	)	$	(247,287	)	$	3,498,105	$	3,629,749	$	209,038		$	702,294		$	(755,693	)	$	3,785,388
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	214,249	$	5,284	$	5,816		$	(1,090	)	$	224,259	$	204,295	$	2,189		$	4,310		$	(796	)	$	209,998
Current portion of long-term-debt	285,497		—		—			—			285,497		287,092		—			—			—			287,092
Other current liabilities	78,151		53		6,271			—			84,475		80,328		36			6,273			—			86,637
Current liabilities of discontinued operations	—		—		—			—			—		—		—			295,830			(250,183		)	45,647
Total current liabilities	577,897		5,337		12,087			(1,090		)	594,231		571,715		2,225			306,413			(250,979		)	629,374
Long-term debt	1,586,591		—		—			—			1,586,591		1,582,280		—			—			—			1,582,280
Other liabilities	122,805		2,436		17,351			—			142,592		122,390		2,119			21,965			—			146,474
Deferred income taxes	—		97,862		—			(97,862		)	—		577		67,365			—			(67,942		)	—
Long-term liabilities of discontinued operations	—		—		—			—			—		—		—			74,473			—			74,473
Total liabilities	2,287,293		105,635		29,438			(98,952		)	2,323,414		2,276,962		71,709			402,851			(318,921		)	2,432,601
Shareholders’ equity	1,174,691		192,695		(44,360		)	(148,335		)	1,174,691		1,352,787		137,329			299,443			(436,772		)	1,352,787
	$	3,461,984	$	298,330	$	(14,922	)	$	(247,287	)	$	3,498,105	$	3,629,749	$	209,038		$	702,294		$	(755,693	)	$	3,785,388

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

(In Thousands)



	Three Months Ended September 30,
	2011															2010
	Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated			Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Oil, natural gas, and NGL sales	$	128,849		$	44,529		$	634		$	—		$	174,012		$	114,416		$	60,044		$	531		$	—		$	174,991
Interest and other	348			76			—			(315		)	109			1,197			10			—			(1,004		)	203
Equity earnings in subsidiaries	39,093			—			—			(39,093		)	—			42,876			—			—			(42,876		)	—
Total revenues	168,290			44,605			634			(39,408		)	174,121			158,489			60,054			531			(43,880		)	175,194
Costs, expenses, and other:
Lease operating expenses	20,218			3,161			101			—			23,480			21,271			2,222			109			—			23,602
Other direct operating costs	11,816			(735		)	42			—			11,123			12,037			4,405			(389		)	—			16,053
General and administrative	18,672			881			389			—			19,942			15,233			604			476			—			16,313
Depreciation, depletion, and amortization	40,675			13,251			397			—			54,323			32,692			15,760			410			—			48,862
Interest expense	37,225			(159		)	474			(315		)	37,225			37,238			230			773			(1,004		)	37,237
Realized and unrealized (gains) losses on derivative instruments, net	(73,757		)	7,780			16			—			(65,961		)	(47,022		)	(12,022		)	(112		)	—			(59,156		)
Other, net	(1,895		)	186			1,532			—			(177		)	1,750			(580		)	1,229			—			2,399
Total costs, expenses, and other	52,954			24,365			2,951			(315		)	79,955			73,199			10,619			2,496			(1,004		)	85,310
Earnings (loss) from continuing operations before income taxes	115,336			20,240			(2,317		)	(39,093		)	94,166			85,290			49,435			(1,965		)	(42,876		)	89,884
Income tax	27,618			7,825			(887		)	—			34,556			16,379			18,679			(745		)	—			34,313
Net earnings (loss) from continuing operations	87,718			12,415			(1,430		)	(39,093		)	59,610			68,911			30,756			(1,220		)	(42,876		)	55,571
Earnings from discontinued operations, net of tax	—			—			28,108			—			28,108			—			—			13,340			—			13,340
Net earnings	87,718			12,415			26,678			(39,093		)	87,718			68,911			30,756			12,120			(42,876		)	68,911
Less: net earnings attributable to noncontrolling interest	—			—			4,923			—			4,923			—			—			—			—			—
Net earnings attributable to Forest Oil Corporation	$	87,718		$	12,415		$	21,755		$	(39,093	)	$	82,795		$	68,911		$	30,756		$	12,120		$	(42,876	)	$	68,911

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

(In Thousands)



	Nine Months Ended September 30,
	2011															2010
	Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated			Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Oil, natural gas, and NGL sales	$	382,211		$	142,775		$	1,929		$	—		$	526,915		$	373,620		$	153,539		$	1,853		$	—		$	529,012
Interest and other	1,696			138			—			(895		)	939			3,964			19			—			(3,512		)	471
Equity earnings in subsidiaries	90,828			—			—			(90,828		)	—			104,214			—			—			(104,214		)	—
Total revenues	474,735			142,913			1,929			(91,723		)	527,854			481,798			153,558			1,853			(107,726		)	529,483
Costs, expenses, and other:
Lease operating expenses	60,487			9,789			317			—			70,593			61,388			7,848			313			—			69,549
Other direct operating costs	37,160			5,188			102			—			42,450			35,155			10,634			(1,142		)	—			44,647
General and administrative	45,726			2,094			1,302			—			49,122			45,840			1,767			1,409			—			49,016
Depreciation, depletion, and amortization	115,738			38,193			1,296			—			155,227			96,182			36,665			1,132			—			133,979
Interest expense	113,081			(351		)	1,246			(895		)	113,081			112,494			1,308			2,204			(3,512		)	112,494
Realized and unrealized (gains) losses on derivative instruments, net	(77,929		)	7,282			15			—			(70,632		)	(145,083		)	(31,963		)	(352		)	—			(177,398		)
Other, net	8,354			165			3,761			—			12,280			720			(548		)	4,020			—			4,192
Total costs, expenses, and other	302,617			62,360			8,039			(895		)	372,121			206,696			25,711			7,584			(3,512		)	236,479
Earnings (loss) from continuing operations before income taxes	172,118			80,553			(6,110		)	(90,828		)	155,733			275,102			127,847			(5,731		)	(104,214		)	293,004
Income tax	48,756			30,497			(2,313		)	—			76,940			63,775			47,597			(2,134		)	—			109,238
Net earnings (loss) from continuing operations	123,362			50,056			(3,797		)	(90,828		)	78,793			211,327			80,250			(3,597		)	(104,214		)	183,766
Earnings from discontinued operations, net of tax	—			—			44,569			—			44,569			—			—			27,561			—			27,561
Net earnings	123,362			50,056			40,772			(90,828		)	123,362			211,327			80,250			23,964			(104,214		)	211,327
Less: net earnings attributable to noncontrolling interest	—			—			4,987			—			4,987			—			—			—			—			—
Net earnings attributable to Forest Oil Corporation	$	123,362		$	50,056		$	35,785		$	(90,828	)	$	118,375		$	211,327		$	80,250		$	23,964		$	(104,214	)	$	211,327

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)



	Nine Months Ended September 30,
	2011												2010
	Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated			Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated
Operating activities:
Net earnings	$	32,534		$	50,056		$	40,772		$	123,362		$	107,113		$	80,250		$	23,964		$	211,327
Less: earnings from discontinued operations, net of tax	—			—			44,569			44,569			—			—			27,561			27,561
Net earnings (loss) from continuing operations	32,534			50,056			(3,797		)	78,793			107,113			80,250			(3,597		)	183,766
Adjustments to reconcile net earnings (loss) from continuing operations to net cash provided (used) by operating activities of continuing operations:
Depreciation, depletion, and amortization	115,738			38,193			1,296			155,227			96,182			36,665			1,132			133,979
Unrealized (gains) losses on derivative instruments, net	(45,114		)	4,566			10			(40,538		)	(85,415		)	(17,234		)	(190		)	(102,839		)
Deferred income tax	18,540			30,497			(2,313		)	46,724			75,864			47,597			(2,134		)	121,327
Other, net	30,067			243			(1,882		)	28,428			21,261			187			(2,412		)	19,036
Changes in operating assets and liabilities:
Accounts receivable	12,168			16,341			1,177			29,686			43,774			(19,293		)	(747		)	23,734
Other current assets	6,712			443			1,063			8,218			9,183			26			1,267			10,476
Accounts payable and accrued liabilities	(7,118		)	787			1,235			(5,096		)	(60,479		)	(2,384		)	949			(61,914		)
Accrued interest and other current liabilities	3,420			(122		)	679			3,977			(4,765		)	(48		)	9,947			5,134
Net cash provided (used) by operating activities of continuing operations	166,947			141,004			(2,532		)	305,419			202,718			125,766			4,215			332,699
Investing activities:
Capital expenditures for property and equipment	(501,688		)	(89,477		)	(70,104		)	(661,269		)	(333,616		)	(102,712		)	(7,081		)	(443,409		)
Proceeds from sales of assets	120,949			—			7			120,956			126,596			1,489			503			128,588
Net cash used by investing activities of continuing operations	(380,739		)	(89,477		)	(70,097		)	(540,313		)	(207,020		)	(101,223		)	(6,578		)	(314,821		)
Financing activities:
Redemption of notes	—			—			—			—			(151,938		)	—			—			(151,938		)
Change in bank overdrafts	(20,979		)	185			134			(20,660		)	14,902			(997		)	(193		)	13,712
Net activity in investments from subsidiaries	299,883			(51,715		)	(248,168		)	—			(72,969		)	(23,925		)	96,894			—
Other, net	(12,307		)	—			—			(12,307		)	(556		)	—			—			(556		)
Net cash provided (used) by financing activities of continuing operations	266,597			(51,530		)	(248,034		)	(32,967		)	(210,561		)	(24,922		)	96,701			(138,782		)
Cash flows from discontinued operations:
Operating cash flows	—			—			101,292			101,292			—			—			65,608			65,608
Investing cash flows	—			—			(255,470		)	(255,470		)	—			—			(160,097		)	(160,097		)
Financing cash flows	—			—			478,324			478,324			—			—			107			107
Net cash provided (used) by discontinued operations	—			—			324,146			324,146			—			—			(94,382		)	(94,382		)
Effect of exchange rate changes on cash	—			—			(3,476		)	(3,476		)	—			—			(336		)	(336		)
Net increase (decrease) in cash and cash equivalents	52,805			(3		)	7			52,809			(214,863		)	(379		)	(380		)	(215,622		)
Net (increase) decrease in cash and cash equivalents of discontinued operations	—			—			(289		)	(289		)	—			—			25			25
Net increase (decrease) in cash and cash equivalents of continuing operations	52,805			(3		)	(282		)	52,520			(214,863		)	(379		)	(355		)	(215,597		)
Cash and cash equivalents of continuing operations at beginning of period	216,580			3			986			217,569			456,978			379			918			458,275
Cash and cash equivalents of continuing operations at end of period	$	269,385		$	—		$	704		$	270,089		$	242,115		$	—		$	563		$	242,678