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Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Information
CONDENSED CONSOLIDATING FINANCIAL INFORMATION

On October 17, 2012 and December 21, 2012, the Company issued an aggregate of $300.0 million of its 7.75% Senior Notes (the "Notes"). The Notes are guaranteed on a senior unsecured basis by all existing consolidated subsidiaries that guarantee the Company's secured revolving credit facility or certain other debt (the "Guarantors"). The Notes are not guaranteed by Grizzly Holdings, Inc., (the "Non-Guarantor"). The Guarantors are 100% owned by Gulfport (the "Parent"), and the guarantees are full, unconditional, joint and several. There are no significant restrictions on the ability of the Parent or the Guarantors to obtain funds from each other in the form of a dividend or loan.

The following condensed consolidating balance sheets, statements of operations, statements of comprehensive income (loss) and statements of cash flows are provided for the Parent, the Guarantors and the Non-Guarantor and include the consolidating adjustments and eliminations necessary to arrive at the information for the Company on a condensed consolidated basis. The information has been presented using the equity method of accounting for the Parent's ownership of the Guarantors and the Non-Guarantor.
CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
 
June 30, 2014
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
72,921

 
$
2,371

 
$
1

 
$

 
$
75,293

Accounts receivable - oil and gas
102,136

 
5,319

 

 

 
107,455

Accounts receivable - related parties
127

 

 

 

 
127

Accounts receivable - intercompany
24,774

 
27

 

 
(24,801
)
 

Prepaid expenses and other current assets
3,575

 

 

 

 
3,575

Deferred tax asset
7,661

 

 

 

 
7,661

Note receivable - related party
875

 

 

 

 
875

Total current assets
212,069

 
7,717

 
1

 
(24,801
)
 
194,986

Property and equipment:
 
 
 
 
 
 
 
 
 
Oil and natural gas properties, full-cost accounting
3,191,073

 
11,029

 

 
(573
)
 
3,201,529

Other property and equipment
12,575

 
30

 

 

 
12,605

Accumulated depletion, depreciation, amortization and impairment
(897,530
)
 
(23
)
 

 

 
(897,553
)
Property and equipment, net
2,306,118

 
11,036

 

 
(573
)
 
2,316,581

Other assets:
 
 
 
 
 
 
 
 
 
Equity investments and investments in subsidiaries
494,342

 

 
203,351

 
(196,257
)
 
501,436

Derivative instruments
784

 

 

 

 
784

Other assets
17,985

 

 

 

 
17,985

Total other assets
513,111

 

 
203,351

 
(196,257
)
 
520,205

  Total assets
$
3,031,298

 
$
18,753

 
$
203,352

 
$
(221,631
)
 
$
3,031,772

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
286,984

 
$
474

 
$

 
$

 
$
287,458

Accounts payable - intercompany

 
24,696

 
105

 
(24,801
)
 

Asset retirement obligation - current
795

 

 

 

 
795

Short-term derivative instruments
24,532

 

 

 

 
24,532

Current maturities of long-term debt
163

 

 

 

 
163

Total current liabilities
312,474

 
25,170

 
105

 
(24,801
)
 
312,948

Long-term derivative instrument
5,487

 

 

 

 
5,487

Asset retirement obligation - long-term
15,181

 

 

 

 
15,181

Deferred tax liability
170,559

 

 

 

 
170,559

Long-term debt, net of current maturities
339,098

 

 

 

 
339,098

Total liabilities
842,799

 
25,170

 
105

 
(24,801
)
 
843,273

 
 
 
 
 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
 
 
 
 
Common stock
854

 

 

 

 
854

Paid-in capital
1,821,368

 
322

 
224,849

 
(225,171
)
 
1,821,368

Accumulated other comprehensive income (loss)
(10,243
)
 

 
(10,243
)
 
10,243

 
(10,243
)
Retained earnings (accumulated deficit)
376,520

 
(6,739
)
 
(11,359
)
 
18,098

 
376,520

Total stockholders' equity
2,188,499

 
(6,417
)
 
203,247

 
(196,830
)
 
2,188,499

  Total liabilities and stockholders' equity
$
3,031,298

 
$
18,753

 
$
203,352

 
$
(221,631
)
 
$
3,031,772

CONDENSED CONSOLIDATING BALANCE SHEETS
(Amounts in thousands)
 
December 31, 2013
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
451,431

 
$
7,525

 
$

 
$

 
$
458,956

Accounts receivable - oil and gas
58,662

 
162

 

 

 
58,824

Accounts receivable - related parties
2,617

 

 

 

 
2,617

Accounts receivable - intercompany
21,379

 
27

 

 
(21,406
)
 

Prepaid expenses and other current assets
2,581

 

 

 

 
2,581

Deferred tax asset
6,927

 

 

 

 
6,927

Short-term derivative instruments
324

 

 

 

 
324

Note receivable - related party
875

 

 

 

 
875

Total current assets
544,796

 
7,714

 

 
(21,406
)
 
531,104

 
 
 
 
 
 
 
 
 
 
Property and equipment:
 
 
 
 
 
 
 
 
 
Oil and natural gas properties, full-cost accounting,
2,470,411

 
7,340

 

 
(573
)
 
2,477,178

Other property and equipment
11,102

 
29

 

 

 
11,131

Accumulated depletion, depreciation, amortization and impairment
(784,695
)
 
(22
)
 

 

 
(784,717
)
Property and equipment, net
1,696,818

 
7,347

 

 
(573
)
 
1,703,592

Other assets:
 
 
 
 
 
 
 
 
 
Equity investments and investments in subsidiaries
432,727

 

 
191,473

 
(184,132
)
 
440,068

Derivative instruments
521

 

 

 

 
521

Other assets
17,851

 

 

 

 
17,851

Total other assets
451,099

 

 
191,473

 
(184,132
)
 
458,440

  Total assets
$
2,692,713

 
$
15,061

 
$
191,473

 
$
(206,111
)
 
$
2,693,136

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
190,284

 
$
423

 
$

 
$

 
$
190,707

Accounts payable - intercompany

 
21,296

 
110

 
(21,406
)
 

Asset retirement obligation - current
795

 

 

 

 
795

Short-term derivative instruments
12,280

 

 

 

 
12,280

Current maturities of long-term debt
159

 

 

 

 
159

Total current liabilities
203,518

 
21,719

 
110

 
(21,406
)
 
203,941

 
 
 
 
 
 
 
 
 
 
Long-term derivative instrument
11,366

 

 

 

 
11,366

Asset retirement obligation - long-term
14,288

 

 

 

 
14,288

Deferred tax liability
114,275

 

 

 

 
114,275

Long-term debt, net of current maturities
299,028

 

 

 

 
299,028

Total liabilities
642,475

 
21,719

 
110

 
(21,406
)
 
642,898

 
 
 
 
 
 
 
 
 
 
Stockholders' equity:
 
 
 
 
 
 
 
 
 
Common stock
851

 

 

 

 
851

Paid-in capital
1,813,058

 
322

 
208,277

 
(208,599
)
 
1,813,058

Accumulated other comprehensive income (loss)
(9,781
)
 

 
(9,781
)
 
9,781

 
(9,781
)
Retained earnings (accumulated deficit)
246,110

 
(6,980
)
 
(7,133
)
 
14,113

 
246,110

Total stockholders' equity
2,050,238

 
(6,658
)
 
191,363

 
(184,705
)
 
2,050,238

  Total liabilities and stockholders' equity
$
2,692,713

 
$
15,061

 
$
191,473

 
$
(206,111
)
 
$
2,693,136

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
 
Six months ended June 30, 2014
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
231,864

 
$
901

 
$

 
$

 
$
232,765

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
23,838

 
471

 

 

 
24,309

Production taxes
13,466

 
92

 

 

 
13,558

Midstream processing and marketing
18,515

 
34

 

 

 
18,549

Depreciation, depletion, and amortization
112,870

 
1

 

 

 
112,871

General and administrative
19,834

 
62

 
(3
)
 

 
19,893

Accretion expense
377

 

 

 

 
377

Gain on sale of assets
(11
)
 

 

 

 
(11
)
 
188,889

 
660

 
(3
)
 

 
189,546

 
 
 
 
 
 
 
 
 
 
INCOME FROM OPERATIONS
42,975

 
241

 
3

 

 
43,219

 
 
 
 
 
 
 
 
 
 
OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
 
Interest expense
6,287

 

 

 

 
6,287

Interest income
(142
)
 

 

 

 
(142
)
Litigation settlement
24,000

 

 

 

 
24,000

(Income) loss from equity method investments and investments in subsidiaries
(198,288
)
 

 
4,229

 
(3,985
)
 
(198,044
)
 
(168,143
)
 

 
4,229

 
(3,985
)
 
(167,899
)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
211,118

 
241

 
(4,226
)
 
3,985

 
211,118

INCOME TAX EXPENSE
80,708

 

 

 

 
80,708

 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
130,410

 
$
241

 
$
(4,226
)
 
$
3,985

 
$
130,410

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Amounts in thousands)
 
Six months ended June 30, 2013
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$
124,695

 
$
739

 
$

 
$

 
$
125,434

 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
Lease operating expenses
10,712

 
338

 

 

 
11,050

Production taxes
13,267

 
43

 

 

 
13,310

Midstream processing and marketing
2,310

 
8

 

 

 
2,318

Depreciation, depletion, and amortization
51,122

 
1

 

 

 
51,123

General and administrative
9,237

 
72

 
3

 

 
9,312

Accretion expense
349

 

 

 

 
349

Loss on sale of assets
572

 

 

 

 
572

 
87,569

 
462

 
3

 

 
88,034

 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM OPERATIONS
37,126

 
277

 
(3
)
 

 
37,400

 
 
 
 
 
 
 
 
 
 
OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
 
Interest expense
6,763

 

 

 

 
6,763

Interest income
(141
)
 

 

 

 
(141
)
(Income) loss from equity method investments and investments in subsidiaries
(111,592
)
 

 
1,262

 
(988
)
 
(111,318
)
 
(104,970
)
 

 
1,262

 
(988
)
 
(104,696
)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
142,096

 
277

 
(1,265
)
 
988

 
142,096

INCOME TAX EXPENSE
53,709

 

 

 

 
53,709

 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
88,387

 
$
277

 
$
(1,265
)
 
$
988

 
$
88,387

 
Six months ended June 30, 2014
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
130,410

 
$
241

 
$
(4,226
)
 
$
3,985

 
$
130,410

Foreign currency translation adjustment
(462
)
 

 
(462
)
 
462

 
(462
)
Other comprehensive income (loss)
(462
)
 

 
(462
)
 
462

 
(462
)
Comprehensive income (loss)
$
129,948

 
$
241

 
$
(4,688
)
 
$
4,447

 
$
129,948


 
Six months ended June 30, 2013
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
Net income (loss)
$
88,387

 
$
277

 
$
(1,265
)
 
$
988

 
$
88,387

Foreign currency translation adjustment
(9,680
)
 

 
(9,680
)
 
9,680

 
(9,680
)
Change in fair value of derivative instruments, net of taxes
(1,074
)
 

 

 

 
(1,074
)
Reclassification of settled contracts, net of taxes
3,201

 

 

 

 
3,201

Other comprehensive income (loss)
(7,553
)
 

 
(9,680
)
 
9,680

 
(7,553
)
Comprehensive income (loss)
$
80,834

 
$
277

 
$
(10,945
)
 
$
10,668

 
$
80,834

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Amounts in thousands)
 
Six months ended June 30, 2014
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
203,057

 
$
(1,546
)
 
$
(2
)
 
$

 
$
201,509

 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) investing activities
(621,155
)
 
(3,608
)
 
(16,569
)
 
16,572

 
(624,760
)
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) financing activities
39,588

 

 
16,572

 
(16,572
)
 
39,588

 
 
 
 
 
 
 
 
 
 
Net iecrease in cash and cash equivalents
(378,510
)
 
(5,154
)
 
1

 

 
(383,663
)
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at beginning of period
451,431

 
7,525

 

 

 
458,956

 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at end of period
$
72,921

 
$
2,371

 
$
1

 
$

 
$
75,293


 
Six months ended June 30, 2013
 
Parent
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
73,633

 
$
(88
)
 
$

 
$

 
$
73,545

 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) investing activities
(383,817
)
 
(712
)
 
(15,055
)
 
15,055

 
(384,529
)
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) financing activities
358,281

 

 
15,055

 
(15,055
)
 
358,281

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
48,097

 
(800
)
 

 

 
47,297

 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at beginning of period
165,293

 
1,795

 

 

 
167,088

 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at end of period
$
213,390

 
$
995

 
$

 
$

 
$
214,385