Annual report pursuant to Section 13 and 15(d)

Supplemental Guarantor Information

v3.3.1.900
Supplemental Guarantor Information
12 Months Ended
Dec. 31, 2015
Supplemental Guarantor Information [Abstract]  
Supplemental Guarantor Information

W&T OFFSHORE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

21. Supplemental Guarantor Information

Our payment obligations under the 8.50% Senior Notes, the 9.00% Term Loan and the Credit Agreement (see Note 7) are fully and unconditionally guaranteed by our 100%-owned subsidiaries, W & T Energy VI, LLC and W & T Energy VII, LLC (together, the “Guarantor Subsidiaries”).  W & T Energy VII, LLC does not currently have any active operations or contain any assets.  Guarantees of the 8.50% Senior Notes will be released under certain circumstances, including:

 

(1)

in connection with any sale or other disposition of all or substantially all of the assets of a Guarantor Subsidiary (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary (as such term is defined in the indenture governing the 8.50% Senior Notes) of the Company, if the sale or other disposition does not violate the Asset Sales provisions (as such terms are define in certain debt documents);

 

(2)

in connection with any sale or other disposition of the capital stock of such Guarantor Subsidiary to a person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, if the sale or other disposition does not violate the Asset Sales provisions of certain debt documents and the Guarantor Subsidiary ceases to be a subsidiary of the Company as a result of such sales or disposition;

 

(3)

if such Guarantor Subsidiary is a Restricted Subsidiary and the Company designates such Guarantor Subsidiary as an Unrestricted Subsidiary in accordance with the applicable provisions of certain debt documents;

 

(4)

upon Legal Defeasance or Covenant Defeasance (as such terms are defined in certain debt documents) or upon satisfaction and discharge of the indenture;

 

(5)

upon the liquidation or dissolution of such Guarantor Subsidiary, provided no event of default has occurred and is continuing; or

 

(6)

at such time as such Guarantor Subsidiary is no longer required to be a Guarantor Subsidiary as described in certain debt documents, provided no event of default has occurred and is continuing.

 

The following condensed consolidating financial information presents the financial condition, results of operations and cash flows of the Parent Company and the Guarantor Subsidiaries, together with consolidating adjustments necessary to present the Company’s results on a consolidated basis.  Included in the consolidating adjustments was an adjustment related to the ceiling test write-down, as the computation is performed for each subsidiary on a stand-alone basis and also for the consolidated Company.  This resulted in write-downs for the combined subsidiaries to be greater than computed on a total Company basis, which required a contra ceiling test write-down adjustment to present the consolidated results appropriately.  

When transfers of property were made from the Parent Company to the Guarantor Subsidiaries, which were transactions between entities under common control, the prior period financial information was retrospectively adjusted for comparability purposes, as prescribed under authoritative guidance.  None of the adjustments had any effect on the consolidated results for the current or prior periods presented.

 

 

 

 

Condensed Consolidating Balance Sheet as of December 31, 2015

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

85,414

 

 

$

 

 

$

 

 

$

85,414

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

2,742

 

 

 

32,263

 

 

 

 

 

 

35,005

 

Joint interest and other

 

121,190

 

 

 

 

 

 

(99,178

)

 

 

22,012

 

Total receivables

 

123,932

 

 

 

32,263

 

 

 

(99,178

)

 

 

57,017

 

Prepaid expenses and other assets

 

25,375

 

 

 

1,504

 

 

 

 

 

 

26,879

 

Total current assets

 

234,721

 

 

 

33,767

 

 

 

(99,178

)

 

 

169,310

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

5,682,793

 

 

 

2,219,701

 

 

 

 

 

 

7,902,494

 

Furniture, fixtures and other

 

20,802

 

 

 

 

 

 

 

 

 

20,802

 

Total property and equipment

 

5,703,595

 

 

 

2,219,701

 

 

 

 

 

 

7,923,296

 

Less accumulated depreciation, depletion and amortization

 

5,258,563

 

 

 

1,822,273

 

 

 

(147,589

)

 

 

6,933,247

 

Net property and equipment

 

445,032

 

 

 

397,428

 

 

 

147,589

 

 

 

990,049

 

Deferred income taxes

 

27,251

 

 

 

344

 

 

 

 

 

 

27,595

 

Restricted deposits for asset retirement obligations

 

15,606

 

 

 

 

 

 

 

 

 

15,606

 

Other assets

 

498,782

 

 

 

266,748

 

 

 

(760,068

)

 

 

5,462

 

Total assets

$

1,221,392

 

 

$

698,287

 

 

$

(711,657

)

 

$

1,208,022

 

Liabilities and Shareholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

100,282

 

 

$

9,515

 

 

$

 

 

$

109,797

 

Undistributed oil and natural gas proceeds

 

20,463

 

 

 

976

 

 

 

 

 

 

21,439

 

Asset retirement obligations

 

63,716

 

 

 

20,619

 

 

 

 

 

 

84,335

 

Accrued liabilities

 

11,922

 

 

 

99,178

 

 

 

(99,178

)

 

 

11,922

 

Total current liabilities

 

196,383

 

 

 

130,288

 

 

 

(99,178

)

 

 

227,493

 

Long-term debt, less current maturities

 

1,196,855

 

 

 

 

 

 

 

 

 

1,196,855

 

Asset retirement obligations, less current portion

 

173,105

 

 

 

120,882

 

 

 

 

 

 

293,987

 

Deferred income taxes

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

329,129

 

 

 

 

 

 

(312,951

)

 

 

16,178

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

423,499

 

 

 

704,885

 

 

 

(704,885

)

 

 

423,499

 

Retained earnings (deficit)

 

(1,073,413

)

 

 

(257,768

)

 

 

405,357

 

 

 

(925,824

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(674,080

)

 

 

447,117

 

 

 

(299,528

)

 

 

(526,491

)

Total liabilities and shareholders’ equity (deficit)

$

1,221,392

 

 

$

698,287

 

 

$

(711,657

)

 

$

1,208,022

 

 

 

Condensed Consolidating Balance Sheet as of December 31, 2014

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

23,666

 

 

$

 

 

$

 

 

$

23,666

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

41,820

 

 

 

25,422

 

 

 

 

 

 

67,242

 

Joint interest and other

 

142,885

 

 

 

 

 

 

(99,240

)

 

 

43,645

 

Total receivables

 

184,705

 

 

 

25,422

 

 

 

(99,240

)

 

 

110,887

 

Prepaid expenses and other assets

 

28,728

 

 

 

7,619

 

 

 

 

 

 

36,347

 

Total current assets

 

237,099

 

 

 

33,041

 

 

 

(99,240

)

 

 

170,900

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

6,038,915

 

 

 

2,006,751

 

 

 

 

 

 

8,045,666

 

Furniture, fixtures and other

 

23,269

 

 

 

 

 

 

 

 

 

23,269

 

Total property and equipment

 

6,062,184

 

 

 

2,006,751

 

 

 

 

 

 

8,068,935

 

Less accumulated depreciation, depletion and amortization

 

4,442,899

 

 

 

1,132,179

 

 

 

 

 

 

5,575,078

 

Net property and equipment

 

1,619,285

 

 

 

874,572

 

 

 

 

 

 

2,493,857

 

Restricted deposits for asset retirement obligations

 

15,444

 

 

 

 

 

 

 

 

 

15,444

 

Other assets

 

966,112

 

 

 

357,992

 

 

 

(1,314,797

)

 

 

9,307

 

Total assets

$

2,837,940

 

 

$

1,265,605

 

 

$

(1,414,037

)

 

$

2,689,508

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

188,654

 

 

$

5,455

 

 

$

 

 

$

194,109

 

Undistributed oil and natural gas proceeds

 

36,130

 

 

 

879

 

 

 

 

 

 

37,009

 

Asset retirement obligations

 

30,711

 

 

 

5,292

 

 

 

 

 

 

36,003

 

Accrued liabilities

 

17,437

 

 

 

99,180

 

 

 

(99,240

)

 

 

17,377

 

Total current liabilities

 

272,932

 

 

 

110,806

 

 

 

(99,240

)

 

 

284,498

 

Long-term debt, less current maturities

 

1,352,120

 

 

 

 

 

 

 

 

 

1,352,120

 

Asset retirement obligations, less current portion

 

235,876

 

 

 

118,689

 

 

 

 

 

 

354,565

 

Deferred income taxes

 

49,819

 

 

 

125,507

 

 

 

 

 

 

175,326

 

Other liabilities

 

417,885

 

 

 

 

 

 

(404,194

)

 

 

13,691

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

414,580

 

 

 

703,440

 

 

 

(703,440

)

 

 

414,580

 

Retained earnings

 

118,894

 

 

 

207,163

 

 

 

(207,163

)

 

 

118,894

 

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity

 

509,308

 

 

 

910,603

 

 

 

(910,603

)

 

 

509,308

 

Total liabilities and shareholders’ equity

$

2,837,940

 

 

$

1,265,605

 

 

$

(1,414,037

)

 

$

2,689,508

 

 

 

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2015

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

290,212

 

 

$

217,053

 

 

$

 

 

$

507,265

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

126,189

 

 

 

66,576

 

 

 

 

 

 

192,765

 

Production taxes

 

3,002

 

 

 

 

 

 

 

 

 

3,002

 

Gathering and transportation

 

9,209

 

 

 

7,948

 

 

 

 

 

 

17,157

 

Depreciation, depletion and amortization

 

201,154

 

 

 

172,214

 

 

 

 

 

 

373,368

 

Asset retirement obligations accretion

 

11,587

 

 

 

9,116

 

 

 

 

 

 

20,703

 

Ceiling test write-down of oil and natural gas properties

 

616,947

 

 

 

517,880

 

 

 

(147,589

)

 

 

987,238

 

General and administrative expenses

 

39,009

 

 

 

34,101

 

 

 

 

 

 

73,110

 

Derivative gain

 

(14,375

)

 

 

 

 

 

 

 

 

(14,375

)

Total costs and expenses

 

992,722

 

 

 

807,835

 

 

 

(147,589

)

 

 

1,652,968

 

Operating loss

 

(702,510

)

 

 

(590,782

)

 

 

147,589

 

 

 

(1,145,703

)

Loss of affiliates

 

(464,931

)

 

 

 

 

 

464,931

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

101,542

 

 

 

3,050

 

 

 

 

 

 

104,592

 

Capitalized

 

(4,206

)

 

 

(3,050

)

 

 

 

 

 

(7,256

)

Other (income) expense, net

 

4,663

 

 

 

 

 

 

 

 

 

4,663

 

Loss before income tax benefit

 

(1,269,440

)

 

 

(590,782

)

 

 

612,520

 

 

 

(1,247,702

)

Income tax benefit

 

(77,133

)

 

 

(125,851

)

 

 

 

 

 

(202,984

)

Net loss

$

(1,192,307

)

 

$

(464,931

)

 

$

612,520

 

 

$

(1,044,718

)

 

 

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2014

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

Revenues

$

571,365

 

 

$

377,343

 

 

$

 

 

$

948,708

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

180,149

 

 

 

84,602

 

 

 

 

 

 

264,751

 

Production taxes

 

7,932

 

 

 

 

 

 

 

 

 

7,932

 

Gathering and transportation

 

11,790

 

 

 

8,031

 

 

 

 

 

 

19,821

 

Depreciation, depletion, amortization and accretion

 

267,406

 

 

 

223,063

 

 

 

 

 

 

490,469

 

Asset retirement obligations accretion

 

10,981

 

 

 

9,652

 

 

 

 

 

 

20,633

 

General and administrative expenses

 

46,513

 

 

 

40,486

 

 

 

 

 

 

86,999

 

Derivative loss

 

(3,965

)

 

 

 

 

 

 

 

 

(3,965

)

Total costs and expenses

 

520,806

 

 

 

365,834

 

 

 

 

 

 

886,640

 

Operating income

 

50,559

 

 

 

11,509

 

 

 

 

 

 

62,068

 

Earnings of affiliates

 

8,320

 

 

 

 

 

 

(8,320

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

84,460

 

 

 

2,462

 

 

 

 

 

 

86,922

 

Capitalized

 

(6,064

)

 

 

(2,462

)

 

 

 

 

 

(8,526

)

Other (income) expense, net

 

(208

)

 

 

 

 

 

 

 

 

(208

)

Income (loss) before income tax expense

 

(19,309

)

 

 

11,509

 

 

 

(8,320

)

 

 

(16,120

)

Income tax expense (benefit)

 

(7,648

)

 

 

3,189

 

 

 

 

 

 

(4,459

)

Net income (loss)

$

(11,661

)

 

$

8,320

 

 

$

(8,320

)

 

$

(11,661

)

 

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2013

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

Revenues

$

631,267

 

 

$

352,821

 

 

$

 

 

$

984,088

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

202,096

 

 

 

68,743

 

 

 

 

 

 

270,839

 

Production taxes

 

7,135

 

 

 

 

 

 

 

 

 

7,135

 

Gathering and transportation

 

9,248

 

 

 

8,262

 

 

 

 

 

 

17,510

 

Depreciation, depletion and amortization

 

236,600

 

 

 

194,011

 

 

 

 

 

 

430,611

 

Asset retirement obligations accretion

 

14,218

 

 

 

6,700

 

 

 

 

 

 

20,918

 

General and administrative expenses

 

44,040

 

 

 

37,834

 

 

 

 

 

 

81,874

 

Derivative loss

 

8,470

 

 

 

 

 

 

 

 

 

8,470

 

Total costs and expenses

 

521,807

 

 

 

315,550

 

 

 

 

 

 

837,357

 

Operating income

 

109,460

 

 

 

37,271

 

 

 

 

 

 

146,731

 

Earnings of affiliates

 

24,400

 

 

 

 

 

 

(24,400

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

82,570

 

 

 

3,069

 

 

 

 

 

 

85,639

 

Capitalized

 

(6,989

)

 

 

(3,069

)

 

 

 

 

 

(10,058

)

Other (income) expense, net

 

(8,946

)

 

 

 

 

 

 

 

 

(8,946

)

Income before income tax expense

 

67,225

 

 

 

37,271

 

 

 

(24,400

)

 

 

80,096

 

Income tax expense

 

15,903

 

 

 

12,871

 

 

 

 

 

 

28,774

 

Net income

$

51,322

 

 

$

24,400

 

 

$

(24,400

)

 

$

51,322

 

 

 

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2015

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(1,192,307

)

 

$

(464,931

)

 

$

612,520

 

 

$

(1,044,718

)

Adjustments to reconcile net loss to net cash provided by

       (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

212,741

 

 

 

181,330

 

 

 

 

 

 

394,071

 

Ceiling test write-down of oil and gas properties

 

616,947

 

 

 

517,880

 

 

 

(147,589

)

 

 

987,238

 

Debt issuance costs write-off/amortization of debt items

 

4,411

 

 

 

 

 

 

 

 

 

4,411

 

Share-based compensation

 

10,242

 

 

 

 

 

 

 

 

 

10,242

 

Derivative gain

 

(14,375

)

 

 

 

 

 

 

 

 

(14,375

)

Cash receipts on derivative settlements, net

 

6,703

 

 

 

 

 

 

 

 

 

6,703

 

Deferred income taxes

 

(77,421

)

 

 

(125,851

)

 

 

 

 

 

(203,272

)

Loss of affiliates

 

464,931

 

 

 

 

 

 

(464,931

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

39,078

 

 

 

(6,842

)

 

 

 

 

 

32,236

 

Joint interest and other receivables

 

21,633

 

 

 

 

 

 

 

 

 

21,633

 

Income taxes

 

(7

)

 

 

 

 

 

 

 

 

(7

)

Prepaid expenses and other assets

 

(13,916

)

 

 

122,977

 

 

 

(91,245

)

 

 

17,816

 

Asset retirement obligation settlements

 

(26,637

)

 

 

(5,918

)

 

 

 

 

 

(32,555

)

Accounts payable, accrued liabilities and other

 

(142,270

)

 

 

4,156

 

 

 

91,245

 

 

 

(46,869

)

Net cash provided by (used in) operating activities

 

(90,247

)

 

 

222,801

 

 

 

 

 

 

132,554

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(31,534

)

 

 

(198,627

)

 

 

 

 

 

(230,161

)

Changes in operating assets and liabilities associated with investing activities

 

(29,806

)

 

 

(25,619

)

 

 

 

 

 

(55,425

)

Proceeds from sales of assets and other, net

 

372,939

 

 

 

 

 

 

 

 

 

372,939

 

Investment in subsidiary

 

(1,445

)

 

 

 

 

 

1,445

 

 

 

 

Purchases of furniture, fixtures and other

 

(1,278

)

 

 

 

 

 

 

 

 

(1,278

)

Net cash used in investing activities

 

308,876

 

 

 

(224,246

)

 

 

1,445

 

 

 

86,075

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

263,000

 

 

 

 

 

 

 

 

 

263,000

 

Repayments of long-term debt – revolving bank credit facility

 

(710,000

)

 

 

 

 

 

 

 

 

(710,000

)

Issuance of 9.00% Term Loan

 

297,000

 

 

 

 

 

 

 

 

 

297,000

 

Debt issuance costs

 

(6,669

)

 

 

 

 

 

 

 

 

(6,669

)

Other

 

(212

)

 

 

 

 

 

 

 

 

(212

)

Investment from parent

 

 

 

 

1,445

 

 

 

(1,445

)

 

 

 

Net cash provided by financing activities

 

(156,881

)

 

 

1,445

 

 

 

(1,445

)

 

 

(156,881

)

Decrease in cash and cash equivalents

 

61,748

 

 

 

 

 

 

 

 

 

61,748

 

Cash and cash equivalents, beginning of period

 

23,666

 

 

 

 

 

 

 

 

 

23,666

 

Cash and cash equivalents, end of period

$

85,414

 

 

$

 

 

$

 

 

$

85,414

 

 

 

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2014

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(11,661

)

 

$

8,320

 

 

$

(8,320

)

 

$

(11,661

)

Adjustments to reconcile net income to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

278,387

 

 

 

232,715

 

 

 

 

 

 

511,102

 

Amortization of debt issuance costs and premium

 

701

 

 

 

 

 

 

 

 

 

701

 

Share-based compensation

 

14,744

 

 

 

 

 

 

 

 

 

14,744

 

Derivative gain

 

(3,965

)

 

 

 

 

 

 

 

 

(3,965

)

Cash payments on derivative settlements

 

(5,318

)

 

 

 

 

 

 

 

 

(5,318

)

Deferred income taxes

 

(32,456

)

 

 

27,696

 

 

 

 

 

 

(4,760

)

Earnings of affiliates

 

(8,320

)

 

 

 

 

 

8,320

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

19,553

 

 

 

9,957

 

 

 

 

 

 

29,510

 

Joint interest and other receivables

 

(4,255

)

 

 

 

 

 

 

 

 

(4,255

)

Income taxes

 

27,650

 

 

 

(24,507

)

 

 

 

 

 

3,143

 

Prepaid expenses and other assets

 

45,962

 

 

 

(7,525

)

 

 

(23,425

)

 

 

15,012

 

Asset retirement obligations

 

(57,253

)

 

 

(17,060

)

 

 

 

 

 

(74,313

)

Accounts payable, accrued liabilities and other

 

11,083

 

 

 

(30,475

)

 

 

23,425

 

 

 

4,033

 

Net cash provided by operating activities

 

274,852

 

 

 

199,121

 

 

 

 

 

 

473,973

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property interest in oil and natural gas properties

 

(17,407

)

 

 

(54,827

)

 

 

 

 

 

(72,234

)

Investment in oil and natural gas properties and equipment

 

(312,044

)

 

 

(242,334

)

 

 

 

 

 

(554,378

)

Changes in operating assets and liabilities associated with investing activities

 

1,733

 

 

 

35,717

 

 

 

 

 

 

37,450

 

Investment in subsidiary

 

(62,323

)

 

 

 

 

 

62,323

 

 

 

 

Purchases of furniture, fixtures and other

 

(3,340

)

 

 

 

 

 

 

 

 

(3,340

)

Net cash used in investing activities

 

(393,381

)

 

 

(261,444

)

 

 

62,323

 

 

 

(592,502

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

556,000

 

 

 

 

 

 

 

 

 

556,000

 

Repayments of long-term debt – revolving bank credit facility

 

(399,000

)

 

 

 

 

 

 

 

 

(399,000

)

Dividends to shareholders

 

(30,260

)

 

 

 

 

 

 

 

 

(30,260

)

Other

 

(345

)

 

 

 

 

 

 

 

 

(345

)

Investment from parent

 

 

 

 

62,323

 

 

 

(62,323

)

 

 

 

Net cash provided in financing activities

 

126,395

 

 

 

62,323

 

 

 

(62,323

)

 

 

126,395

 

Increase in cash and cash equivalents

 

7,866

 

 

 

 

 

 

 

 

 

7,866

 

Cash and cash equivalents, beginning of period

 

15,800

 

 

 

 

 

 

 

 

 

15,800

 

Cash and cash equivalents, end of period

$

23,666

 

 

$

 

 

$

 

 

$

23,666

 

 

 

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2013

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

51,322

 

 

$

24,400

 

 

$

(24,400

)

 

$

51,322

 

Adjustments to reconcile net income to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

250,818

 

 

 

200,711

 

 

 

 

 

 

451,529

 

Amortization of debt issuance costs and premium

 

1,645

 

 

 

 

 

 

 

 

 

1,645

 

Share-based compensation

 

11,525

 

 

 

 

 

 

 

 

 

11,525

 

Derivative loss

 

8,470

 

 

 

 

 

 

 

 

 

8,470

 

Cash payments on derivative settlements

 

(8,589

)

 

 

 

 

 

 

 

 

(8,589

)

Deferred income taxes

 

7,564

 

 

 

23,356

 

 

 

 

 

 

30,920

 

Earnings of affiliates

 

(24,400

)

 

 

 

 

 

24,400

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

6,182

 

 

 

(5,202

)

 

 

 

 

 

980

 

Joint interest and other receivables

 

34,257

 

 

 

 

 

 

 

 

 

34,257

 

Income taxes

 

54,813

 

 

 

(10,485

)

 

 

 

 

 

44,328

 

Prepaid expenses and other assets

 

(25,329

)

 

 

(18,835

)

 

 

34,120

 

 

 

(10,044

)

Asset retirement obligations

 

(65,438

)

 

 

(16,105

)

 

 

 

 

 

(81,543

)

Accounts payable, accrued liabilities and other

 

74,693

 

 

 

(12,665

)

 

 

(34,120

)

 

 

27,908

 

Net cash provided by operating activities

 

377,533

 

 

 

185,175

 

 

 

 

 

 

562,708

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property interest in oil and natural gas properties

 

 

 

 

(82,424

)

 

 

 

 

 

(82,424

)

Investment in oil and natural gas properties and equipment

 

(349,804

)

 

 

(202,150

)

 

 

 

 

 

(551,954

)

Changes in operating assets and liabilities associated with investing activities

 

(14,732

)

 

 

13,382

 

 

 

 

 

 

 

(1,350

)

Investment in subsidiary

 

(86,017

)

 

 

 

 

 

86,017

 

 

 

-

 

Proceeds from sales of assets and other, net

 

21,008

 

 

 

 

 

 

 

 

 

21,008

 

Purchases of furniture, fixtures and other

 

(1,435

)

 

 

 

 

 

 

 

 

(1,435

)

Net cash used in investing activities

 

(430,980

)

 

 

(271,192

)

 

 

86,017

 

 

 

(616,155

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

563,000

 

 

 

 

 

 

 

 

 

563,000

 

Repayments of long-term debt – revolving bank credit facility

 

(443,000

)

 

 

 

 

 

 

 

 

(443,000

)

Debt issuance costs

 

(3,892

)

 

 

 

 

 

 

 

 

(3,892

)

Dividends to shareholders

 

(58,846

)

 

 

 

 

 

 

 

 

(58,846

)

Other

 

(260

)

 

 

 

 

 

 

 

 

(260

)

Investment from parent

 

 

 

 

86,017

 

 

 

(86,017

)

 

 

 

Net cash used in financing activities

 

57,002

 

 

 

86,017

 

 

 

(86,017

)

 

 

57,002

 

Increase in cash and cash equivalents

 

3,555

 

 

 

 

 

 

 

 

 

3,555

 

Cash and cash equivalents, beginning of period

 

12,245

 

 

 

 

 

 

 

 

 

12,245

 

Cash and cash equivalents, end of period

$

15,800

 

 

$

 

 

$

 

 

$

15,800