Annual report pursuant to Section 13 and 15(d)

Acquisitions and Divestitures (Tables)

v3.6.0.2
Acquisitions and Divestitures (Tables)
12 Months Ended
Dec. 31, 2016
Fairway  
Business Acquisition [Line Items]  
Purchase Price Allocation for Acquisition

The following table presents the purchase price allocation, including estimated adjustments, for the increased ownership interest in Fairway (in thousands):  

Cash consideration:

 

 

 

Evaluated properties including equipment

$

18,693

 

Non-cash consideration:

 

 

 

Asset retirement obligations - non-current

 

6,124

 

Total consideration

$

24,817

 

 

Woodside Properties  
Business Acquisition [Line Items]  
Purchase Price Allocation for Acquisition

The following table presents the purchase price allocation, including estimated adjustments, for the acquisition of the Woodside Properties (in thousands):  

Cash consideration:

 

 

 

Evaluated properties including equipment

$

52,347

 

Unevaluated properties

 

2,660

 

Sub-total cash consideration

 

55,007

 

Non-cash consideration:

 

 

 

Asset retirement obligations - current

 

782

 

Asset retirement obligations - non-current

 

10,543

 

Sub-total non-cash consideration

 

11,325

 

Total consideration

$

66,332

 

 

Summary of Pro Forma Financial Information for Acquisition

The following table presents a summary of our pro forma financial information (in thousands, except earnings per share):

 

 

(unaudited)

 

 

 

December 31, 2014 (a)

 

Revenue

 

$

971,595

 

Net loss

 

 

(5,504

)

Basic and diluted loss per common share

 

 

(0.08

)

 

Business Acquisition Pro Forma Information Incremental Item

The following table presents incremental items included in the pro forma information reported above for the Woodside Properties (in thousands):

 

 

(unaudited)

 

 

 

December 31, 2014 (a)

 

Revenues (b)

 

$

22,887

 

Direct operating expenses (b)

 

 

4,417

 

DD&A (c)

 

 

8,385

 

G&A (d)

 

 

300

 

Interest expense (e)

 

 

330

 

Capitalized interest (f)

 

 

(19

)

Income tax expense (g)

 

 

3,316

 

The sources of information and significant assumptions are described below:

 

(a)

The adjustments for 2014 are for the period from January 1, 2014 to May 20, 2014.

 

(b)

Revenues and direct operating expenses for the Woodside Properties were derived from the historical financial records of Woodside.

 

(c)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside Properties’ costs, reserves and production into our full cost pool in order to compute such amounts.  The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation.  ARO was estimated by W&T management.

 

(d)

Estimated insurance costs related to the Woodside Properties.

 

(e)

The acquisition was assumed to be funded entirely with borrowed funds.  Interest expense was computed using assumed borrowings of $55.0 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.

 

(f)

The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings.  The negative amount represents a decrease to net expenses.

 

(g)

Income tax expense was computed using the 35% federal statutory rate.

The pro forma adjustments do not include adjustments related to any other acquisitions or divestitures.