CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Financial Information Disclosure [Abstract]

(Unaudited)

(In Thousands)



	September 30, 2012												December 31, 2011
	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	$	39,098	$	—	$	71		$	—		$	39,169	$	1,734	$	1	$	1,277		$	—		$	3,012
Accounts receivable	46,533		26,978		4,161			(462		)	77,210		43,999		34,142		2,201			(1,253		)	79,089
Other current assets	59,190		319		622			—			60,131		127,667		313		591			—			128,571
Total current assets	144,821		27,297		4,854			(462		)	176,510		173,400		34,456		4,069			(1,253		)	210,672
Property and equipment	8,578,281		1,413,677		207,517			—			10,199,475		8,000,466		1,317,917		282,719			—			9,601,102
Less accumulated depreciation, depletion, and amortization	6,611,026		1,157,456		170,431			—			7,938,913		5,782,409		1,102,339		65,238			—			6,949,986
Net property and equipment	1,967,255		256,221		37,086			—			2,260,562		2,218,057		215,578		217,481			—			2,651,116
Investment in subsidiaries	80,577		—		—			(80,577		)	—		160,591		—		—			(160,591		)	—
Goodwill	216,460		22,960		—			—			239,420		216,460		22,960		—			—			239,420
Due from subsidiaries	145,817		58,730		—			(204,547		)	—		214,394		46,944		—			(261,338		)	—
Deferred income taxes	100,874		—		35,064			(126,087		)	9,851		312,564		—		25,564			(107,012		)	231,116
Other assets	96,035		—		—			—			96,035		48,827		—		—			—			48,827
	$	2,751,839	$	365,208	$	77,004		$	(411,673	)	$	2,782,378	$	3,344,293	$	319,938	$	247,114		$	(530,194	)	$	3,381,151
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	181,923	$	2,583	$	5,709		$	(462	)	$	189,753	$	235,788	$	8,846	$	4,499		$	(1,253	)	$	247,880
Current portion of long-term debt	296,002		—		—			—			296,002		—		—		—			—			—
Other current liabilities	61,574		129		6,313			—			68,016		86,618		63		6,276			—			92,957
Total current liabilities	539,499		2,712		12,022			(462		)	553,771		322,406		8,909		10,775			(1,253		)	340,837
Long-term debt	1,796,369		—		—			—			1,796,369		1,693,044		—		—			—			1,693,044
Due to parent and subsidiaries	—		—		204,547			(204,547		)	—		—		—		261,338			(261,338		)	—
Deferred income taxes	—		126,087		—			(126,087		)	—		—		107,012		—			(107,012		)	—
Other liabilities	173,194		3,650		12,617			—			189,461		135,730		2,614		15,813			—			154,157
Total liabilities	2,509,062		132,449		229,186			(331,096		)	2,539,601		2,151,180		118,535		287,926			(369,603		)	2,188,038
Shareholders’ equity	242,777		232,759		(152,182		)	(80,577		)	242,777		1,193,113		201,403		(40,812		)	(160,591		)	1,193,113
	$	2,751,839	$	365,208	$	77,004		$	(411,673	)	$	2,782,378	$	3,344,293	$	319,938	$	247,114		$	(530,194	)	$	3,381,151

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In Thousands)



	Three Months Ended September 30,
	2012															2011
	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	$	119,588		$	36,002		$	424		$	—		$	156,014		$	128,849		$	44,529		$	634		$	—		$	174,012
Interest and other	1,694			1,278			—			(2,918		)	54			348			76			—			(315		)	109
Equity earnings in subsidiaries	(73,712		)	—			—			73,712			—			39,093			—			—			(39,093		)	—
Total revenues	47,570			37,280			424			70,794			156,068			168,290			44,605			634			(39,408		)	174,121
Costs, expenses, and other:
Lease operating expenses	23,115			4,195			116			—			27,426			20,218			3,161			101			—			23,480
Other production expenses	12,546			(165		)	41			—			12,422			11,816			(735		)	42			—			11,123
General and administrative	12,341			689			386			—			13,416			18,672			881			389			—			19,942
Depreciation, depletion, and amortization	55,978			17,433			434			—			73,845			40,675			13,251			397			—			54,323
Ceiling test write-down of oil and natural gas properties	324,155			—			5,802			—			329,957			—			—			—			—			—
Impairment of properties	—			—			79,529			—			79,529			—			—			—			—			—
Interest expense	36,224			706			2,211			(2,918		)	36,223			37,225			(159		)	474			(315		)	37,225
Realized and unrealized losses (gains) on derivative instruments, net	17,883			4,848			64			—			22,795			(73,757		)	7,780			16			—			(65,961		)
Other, net	8,692			96			2,939			—			11,727			(1,895		)	186			1,532			—			(177		)
Total costs, expenses, and other	490,934			27,802			91,522			(2,918		)	607,340			52,954			24,365			2,951			(315		)	79,955
Earnings (loss) from continuing operations before income taxes	(443,364		)	9,478			(91,098		)	73,712			(451,272		)	115,336			20,240			(2,317		)	(39,093		)	94,166
Income tax	15,188			(842		)	(7,066		)	—			7,280			27,618			7,825			(887		)	—			34,556
Net earnings (loss) from continuing operations	(458,552		)	10,320			(84,032		)	73,712			(458,552		)	87,718			12,415			(1,430		)	(39,093		)	59,610
Net earnings from discontinued operations	—			—			—			—			—			—			—			28,108			—			28,108
Net earnings (loss)	(458,552		)	10,320			(84,032		)	73,712			(458,552		)	87,718			12,415			26,678			(39,093		)	87,718
Less: net earnings attributable to noncontrolling interest	—			—			—			—			—			—			—			4,923			—			4,923
Net earnings (loss) attributable to Forest Oil Corporation common shareholders	$	(458,552	)	$	10,320		$	(84,032	)	$	73,712		$	(458,552	)	$	87,718		$	12,415		$	21,755		$	(39,093	)	$	82,795

Comprehensive income (loss)	$	(458,367	)	$	10,320		$	(84,032	)	$	73,712		$	(458,367	)	$	49,577		$	12,415		$	26,678		$	(39,093	)	$	49,577

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (Continued)

(Unaudited)

(In Thousands)



	Nine Months Ended September 30,
	2012															2011
	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	$	326,209		$	123,093		$	1,307		$	—		$	450,609		$	382,211		$	142,775		$	1,929		$	—		$	526,915
Interest and other	3,381			1,850			—			(5,108		)	123			1,696			138			—			(895		)	939
Equity earnings in subsidiaries	(81,311		)	—			—			81,311			—			90,828			—			—			(90,828		)	—
Total revenues	248,279			124,943			1,307			76,203			450,732			474,735			142,913			1,929			(91,723		)	527,854
Costs, expenses, and other:
Lease operating expenses	69,087			12,774			306			—			82,167			60,487			9,789			317			—			70,593
Other production expenses	36,937			1,026			139			—			38,102			37,160			5,188			102			—			42,450
General and administrative	42,300			2,040			881			—			45,221			45,726			2,094			1,302			—			49,122
Depreciation, depletion, and amortization	157,381			55,116			1,305			—			213,802			115,738			38,193			1,296			—			155,227
Ceiling test write-down of oil and natural gas properties	673,131			—			40,619			—			713,750			—			—			—			—			—
Impairment of properties	—			—			79,529			—			79,529			—			—			—			—			—
Interest expense	103,932			894			4,214			(5,108		)	103,932			113,081			(351		)	1,246			(895		)	113,081
Realized and unrealized (gains) losses on derivative instruments, net	(33,044		)	(7,603		)	(97		)	—			(40,744		)	(77,929		)	7,282			15			—			(70,632		)
Other, net	35,259			293			6,550			—			42,102			8,354			165			3,761			—			12,280
Total costs, expenses, and other	1,084,983			64,540			133,446			(5,108		)	1,277,861			302,617			62,360			8,039			(895		)	372,121
Earnings (loss) from continuing operations before income taxes	(836,704		)	60,403			(132,139		)	81,311			(827,129		)	172,118			80,553			(6,110		)	(90,828		)	155,733
Income tax	165,694			19,075			(9,500		)	—			175,269			48,756			30,497			(2,313		)	—			76,940
Net earnings (loss) from continuing operations	(1,002,398		)	41,328			(122,639		)	81,311			(1,002,398		)	123,362			50,056			(3,797		)	(90,828		)	78,793
Net earnings from discontinued operations	—			—			—			—			—			—			—			44,569			—			44,569
Net earnings (loss)	(1,002,398		)	41,328			(122,639		)	81,311			(1,002,398		)	123,362			50,056			40,772			(90,828		)	123,362
Less: net earnings attributable to noncontrolling interest	—			—			—			—			—			—			—			4,987			—			4,987
Net earnings (loss) attributable to Forest Oil Corporation common shareholders	$	(1,002,398	)	$	41,328		$	(122,639	)	$	81,311		$	(1,002,398	)	$	123,362		$	50,056		$	35,785		$	(90,828	)	$	118,375

Comprehensive income (loss)	$	(1,001,840	)	$	41,328		$	(122,639	)	$	81,311		$	(1,001,840	)	$	95,910		$	50,056		$	40,772		$	(90,828	)	$	95,910

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)



	Nine Months Ended September 30,
	2012												2011
	Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated			Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated
Operating activities:
Net earnings (loss)	$	(921,087	)	$	41,328		$	(122,639	)	$	(1,002,398	)	$	32,534		$	50,056		$	40,772		$	123,362
Less: net earnings from discontinued operations	—			—			—			—			—			—			44,569			44,569
Net earnings (loss) from continuing operations	(921,087		)	41,328			(122,639		)	(1,002,398		)	32,534			50,056			(3,797		)	78,793
Adjustments to reconcile net earnings (loss) from continuing operations to net cash provided (used) by operating activities of continuing operations:
Depreciation, depletion, and amortization	157,381			55,116			1,305			213,802			115,738			38,193			1,296			155,227
Deferred income tax	199,415			19,075			(9,500		)	208,990			18,540			30,497			(2,313		)	46,724
Unrealized losses (gains) on derivative instruments, net	37,698			8,565			109			46,372			(45,114		)	4,566			10			(40,538		)
Ceiling test write-down of oil and natural gas properties	673,131			—			40,619			713,750			—			—			—			—
Impairment of properties	—			—			79,529			79,529			—			—			—			—
Other, net	25,311			294			(2,026		)	23,579			30,018			243			(1,882		)	28,379
Changes in operating assets and liabilities:
Accounts receivable	4,657			7,164			(2,751		)	9,070			12,168			16,341			1,177			29,686
Other current assets	4,463			(6		)	(31		)	4,426			6,756			443			1,063			8,262
Accounts payable and accrued liabilities	1,915			(1,330		)	1,597			2,182			(7,118		)	787			1,235			(5,096		)
Accrued interest and other	(13,102		)	143			(518		)	(13,477		)	3,420			(122		)	679			3,977
Net cash provided (used) by operating activities of continuing operations	169,782			130,349			(14,306		)	285,825			166,942			141,004			(2,532		)	305,414
Investing activities:
Capital expenditures for property and equipment	(496,178		)	(99,814		)	(8,901		)	(604,893		)	(501,683		)	(89,477		)	(70,104		)	(661,264		)
Proceeds from sales of assets	8,902			—			—			8,902			120,949			—			7			120,956
Net cash used by investing activities of continuing operations	(487,276		)	(99,814		)	(8,901		)	(595,991		)	(380,734		)	(89,477		)	(70,097		)	(540,308		)
Financing activities:
Proceeds from bank borrowings	651,000			—			—			651,000			12,000			—			—			12,000
Repayments of bank borrowings	(756,000		)	—			—			(756,000		)	(12,000		)	—			—			(12,000		)
Issuance of senior notes, net of issuance costs	491,250			—			—			491,250			—			—			—			—
Change in bank overdrafts	(37,661		)	(213		)	158			(37,716		)	(20,979		)	185			134			(20,660		)
Net activity in investments from subsidiaries	8,480			(30,323		)	21,843			—			299,883			(51,715		)	(248,168		)	—
Other, net	(2,211		)	—			—			(2,211		)	(12,307		)	—			—			(12,307		)
Net cash provided (used) by financing activities of continuing operations	354,858			(30,536		)	22,001			346,323			266,597			(51,530		)	(248,034		)	(32,967		)
Cash flows from discontinued operations:
Operating cash flows	—			—			—			—			—			—			101,292			101,292
Investing cash flows	—			—			—			—			—			—			(255,470		)	(255,470		)
Financing cash flows	—			—			—			—			—			—			478,324			478,324
Net cash provided by discontinued operations	—			—			—			—			—			—			324,146			324,146
Effect of exchange rate changes on cash	—			—			—			—			—			—			(3,476		)	(3,476		)
Net increase (decrease) in cash and cash equivalents	37,364			(1		)	(1,206		)	36,157			52,805			(3		)	7			52,809
Net increase in cash and cash equivalents of discontinued operations	—			—			—			—			—			—			(289		)	(289		)
Net increase (decrease) in cash and cash equivalents of continuing operations	37,364			(1		)	(1,206		)	36,157			52,805			(3		)	(282		)	52,520
Cash and cash equivalents of continuing operations at beginning of period	1,734			1			1,277			3,012			216,580			3			986			217,569
Cash and cash equivalents of continuing operations at end of period	$	39,098		$	—		$	71		$	39,169		$	269,385		$	—		$	704		$	270,089