CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

(In Thousands)

	June 30, 2013														December 31, 2012
	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	$	258		$	1	$	162		$	—		$	421		$	667		$	45	$	344		$	—		$	1,056
Accounts receivable	44,851			23,462		5,001			(844		)	72,470			33,979			27,969		6,393			(825		)	67,516
Other current assets	32,717			283		235			—			33,235			55,869			286		353			—			56,508
Total current assets	77,826			23,746		5,398			(844		)	106,126			90,515			28,300		7,090			(825		)	125,080
Property and equipment, at cost	8,244,692			1,451,251		177,982			—			9,873,925			8,439,898			1,416,364		182,070			—			10,038,332
Less accumulated depreciation, depletion, and amortization	7,007,346			1,193,741		174,416			—			8,375,503			6,937,606			1,173,332		173,156			—			8,284,094
Net property and equipment	1,237,346			257,510		3,566			—			1,498,422			1,502,292			243,032		8,914			—			1,754,238
Investment in subsidiaries	89,894			—		—			(89,894		)	—			68,048			—		—			(68,048		)	—
Goodwill	216,460			22,960		—			—			239,420			216,460			22,960		—			—			239,420
Due from subsidiaries	102,934			94,037		—			(196,971		)	—			116,602			83,983		—			(200,585		)	—
Deferred income taxes	102,881			—		36,106			(132,440		)	6,547			111,015			—		36,106			(132,440		)	14,681
Other assets	63,230			—		—			—			63,230			68,443			—		—			—			68,443
	$	1,890,571		$	398,253	$	45,070		$	(420,149	)	$	1,913,745		$	2,173,375		$	378,275	$	52,110		$	(401,898	)	$	2,201,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	190,433		$	1,040	$	5,631		$	(844	)	$	196,260		$	157,404		$	2,133	$	6,074		$	(825	)	$	164,786
Other current liabilities	33,001			—		6,263			—			39,264			55,187			67		6,285			—			61,539
Total current liabilities	223,434			1,040		11,894			(844		)	235,524			212,591			2,200		12,359			(825		)	226,325
Long-term debt	1,630,337			—		—			—			1,630,337			1,862,088			—		—			—			1,862,088
Due to parent and subsidiaries	—			—		196,971			(196,971		)	—			—			—		200,585			(200,585		)	—
Deferred income taxes	—			132,440		—			(132,440		)	—			—			132,440		—			(132,440		)	—
Other liabilities	104,186			3,009		8,075			—			115,270			141,520			3,642		11,111			—			156,273
Total liabilities	1,957,957			136,489		216,940			(330,255		)	1,981,131			2,216,199			138,282		224,055			(333,850		)	2,244,686
Shareholders’ equity (deficit)	(67,386		)	261,764		(171,870		)	(89,894		)	(67,386		)	(42,824		)	239,993		(171,945		)	(68,048		)	(42,824		)
	$	1,890,571		$	398,253	$	45,070		$	(420,149	)	$	1,913,745		$	2,173,375		$	378,275	$	52,110		$	(401,898	)	$	2,201,862

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In Thousands)

	Three Months Ended June 30,
	2013															2012
	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 natural gas liquids sales	$	92,124		$	24,735		$	(73	)	$	—		$	116,786		$	99,798		$	35,485		$	411		$	—		$	135,694
Interest and other	131			433			1			(537		)	28			909			(1,387		)	—			515			37
Equity earnings in subsidiaries	14,162			—			—			(14,162		)	—			9,195			—			—			(9,195		)	—
Total revenues	106,417			25,168			(72		)	(14,699		)	116,814			109,902			34,098			411			(8,680		)	135,731
Costs, expenses, and other:
Lease operating expenses	15,837			3,326			4			—			19,167			22,153			4,891			90			—			27,134
Other production expenses	7,473			656			(2		)	—			8,127			10,594			(86		)	47			—			10,555
General and administrative	12,562			224			328			—			13,114			15,595			620			206			—			16,421
Depreciation, depletion, and amortization	33,116			9,560			1,128			—			43,804			53,534			19,015			438			—			72,987
Ceiling test write-down of oil and natural gas properties	—			—			—			—			—			348,976			—			—			—			348,976
Interest expense	29,391			36			502			(537		)	29,392			34,316			(1,523		)	1,009			515			34,317
Realized and unrealized gains on derivative instruments, net	(25,734		)	(5,827		)	(49		)	—			(31,610		)	(26,320		)	(7,604		)	(91		)	—			(34,015		)
Other, net	665			95			833			—			1,593			1,335			107			2,013			—			3,455
Total costs, expenses, and other	73,310			8,070			2,744			(537		)	83,587			460,183			15,420			3,712			515			479,830
Earnings (loss) before income taxes	33,107			17,098			(2,816		)	(14,162		)	33,227			(350,281		)	18,678			(3,301		)	(9,195		)	(344,099		)
Income tax (benefit) expense	(332		)	175			(55		)	—			(212		)	160,892			7,489			(1,307		)	—			167,074
Net earnings (loss)	$	33,439		$	16,923		$	(2,761	)	$	(14,162	)	$	33,439		$	(511,173	)	$	11,189		$	(1,994	)	$	(9,195	)	$	(511,173	)
Comprehensive income (loss)	$	33,784		$	16,923		$	(2,761	)	$	(14,162	)	$	33,784		$	(510,987	)	$	11,189		$	(1,994	)	$	(9,195	)	$	(510,987	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (Continued)

(Unaudited)

(In Thousands)

	Six Months Ended June 30,
	2013															2012
	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 natural gas liquids sales	$	184,661		$	49,765		$	402		$	—		$	234,828		$	206,621		$	87,091		$	883		$	—		$	294,595
Interest and other	356			835			1			(1,032		)	160			1,687			572			—			(2,190		)	69
Equity earnings in subsidiaries	18,308			—			—			(18,308		)	—			(7,599		)	—			—			7,599			—
Total revenues	203,325			50,600			403			(19,340		)	234,988			200,709			87,663			883			5,409			294,664
Costs, expenses, and other:
Lease operating expenses	33,782			6,501			88			—			40,371			45,972			8,579			190			—			54,741
Other production expenses	13,394			191			38			—			13,623			24,391			1,191			98			—			25,680
General and administrative	31,693			894			541			—			33,128			29,959			1,351			495			—			31,805
Depreciation, depletion, and amortization	70,678			20,408			1,261			—			92,347			101,403			37,683			871			—			139,957
Ceiling test write-down of oil and natural gas properties	—			—			—			—			—			348,976			—			34,817			—			383,793
Interest expense	65,519			68			965			(1,032		)	65,520			67,708			188			2,003			(2,190		)	67,709
Realized and unrealized gains on derivative instruments, net	(4,869		)	(1,152		)	(9		)	—			(6,030		)	(50,927		)	(12,451		)	(161		)	—			(63,539		)
Other, net	27,675			212			2,526			—			30,413			26,567			197			3,611			—			30,375
Total costs, expenses, and other	237,872			27,122			5,410			(1,032		)	269,372			594,049			36,738			41,924			(2,190		)	670,521
Earnings (loss) before income taxes	(34,547		)	23,478			(5,007		)	(18,308		)	(34,384		)	(393,340		)	50,925			(41,041		)	7,599			(375,857		)
Income tax (benefit) expense	(38		)	207			(44		)	—			125			150,506			19,917			(2,434		)	—			167,989
Net earnings (loss)	$	(34,509	)	$	23,271		$	(4,963	)	$	(18,308	)	$	(34,509	)	$	(543,846	)	$	31,008		$	(38,607	)	$	7,599		$	(543,846	)
Comprehensive income (loss)	$	(33,822	)	$	23,271		$	(4,963	)	$	(18,308	)	$	(33,822	)	$	(543,473	)	$	31,008		$	(38,607	)	$	7,599		$	(543,473	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

	Six Months Ended June 30,
	2013												2012
	Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated			Parent Company			Guarantor Subsidiary			Combined Non-Guarantor Subsidiaries			Consolidated
Operating activities:
Net earnings (loss)	$	(52,817	)	$	23,271		$	(4,963	)	$	(34,509	)	$	(536,247	)	$	31,008		$	(38,607	)	$	(543,846	)
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:
Depreciation, depletion, and amortization	70,678			20,408			1,261			92,347			101,403			37,683			871			139,957
Deferred income tax	—			—			—			—			150,397			19,917			(2,434		)	167,880
Unrealized losses (gains) on derivative instruments, net	14,961			433			4			15,398			(3,649		)	(1,751		)	(23		)	(5,423		)
Ceiling test write-down of oil and natural gas properties	—			—			—			—			348,976			—			34,817			383,793
Loss on debt extinguishment	25,223			—			—			25,223			—			—			—			—
Other, net	11,384			205			(2,207		)	9,382			17,896			187			(993		)	17,090
Changes in operating assets and liabilities:
Accounts receivable	(10,086		)	4,507			1,411			(4,168		)	11,522			7,641			(86		)	19,077
Other current assets	(390		)	3			118			(269		)	2,360			(1		)	(54		)	2,305
Accounts payable and accrued liabilities	18,865			(541		)	(368		)	17,956			(19,765		)	(1,254		)	418			(20,601		)
Accrued interest and other	(10,697		)	(187		)	(64		)	(10,948		)	16,210			96			(114		)	16,192
Net cash provided (used) by operating activities	67,121			48,099			(4,808		)	110,412			89,103			93,526			(6,205		)	176,424
Investing activities:
Capital expenditures for property and equipment	(169,741		)	(35,699		)	(774		)	(206,214		)	(312,214		)	(80,990		)	(7,487		)	(400,691		)
Proceeds from sales of assets	338,975			—			2			338,977			1,102			—			—			1,102
Net cash provided (used) by investing activities	169,234			(35,699		)	(772		)	132,763			(311,112		)	(80,990		)	(7,487		)	(399,589		)
Financing activities:
Proceeds from bank borrowings	320,000			—			—			320,000			443,000			—			—			443,000
Repayments of bank borrowings	(255,000		)	—			—			(255,000		)	(200,000		)	—			—			(200,000		)
Redemption of senior notes	(321,327		)	—			—			(321,327		)	—			—						—
Change in bank overdrafts	13,932			(457		)	48			13,523			(20,445		)	(341		)	120			(20,666		)
Net activity in investments in subsidiaries	6,637			(11,987		)	5,350			—			(203		)	(12,194		)	12,397			—
Other, net	(1,006		)	—			—			(1,006		)	(1,501		)	—			—			(1,501		)
Net cash (used) provided by financing activities	(236,764		)	(12,444		)	5,398			(243,810		)	220,851			(12,535		)	12,517			220,833
Net (decrease) increase in cash and cash equivalents	(409		)	(44		)	(182		)	(635		)	(1,158		)	1			(1,175		)	(2,332		)
Cash and cash equivalents at beginning of period	667			45			344			1,056			1,734			1			1,277			3,012
Cash and cash equivalents at end of period	$	258		$	1		$	162		$	421		$	576		$	2		$	102		$	680