Annual report pursuant to Section 13 and 15(d)

Supplemental Guarantor Information (Tables)

v3.6.0.2
Supplemental Guarantor Information (Tables)
12 Months Ended
Dec. 31, 2016
Supplemental Guarantor Information [Abstract]  
Condensed Consolidating Balance Sheet

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 or less 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, 2016

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

70,236

 

 

$

 

 

$

 

 

$

70,236

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

2,173

 

 

 

40,900

 

 

 

 

 

 

43,073

 

Joint interest and other

 

163,200

 

 

 

 

 

 

(99,272

)

 

 

63,928

 

Total receivables

 

165,373

 

 

 

40,900

 

 

 

(99,272

)

 

 

107,001

 

Prepaid expenses and other assets

 

12,448

 

 

 

2,056

 

 

 

 

 

 

14,504

 

Total current assets

 

248,057

 

 

 

42,956

 

 

 

(99,272

)

 

 

191,741

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

5,700,205

 

 

 

2,232,299

 

 

 

 

 

 

7,932,504

 

Furniture, fixtures and other

 

20,898

 

 

 

 

 

 

 

 

 

20,898

 

Total property and equipment

 

5,721,103

 

 

 

2,232,299

 

 

 

 

 

 

7,953,402

 

Less accumulated depreciation, depletion and amortization

 

5,360,137

 

 

 

2,045,259

 

 

 

953

 

 

 

7,406,349

 

Net property and equipment

 

360,966

 

 

 

187,040

 

 

 

(953

)

 

 

547,053

 

Restricted deposits for asset retirement obligations

 

27,371

 

 

 

 

 

 

 

 

 

27,371

 

Income tax receivables

 

52,097

 

 

 

 

 

 

 

 

 

52,097

 

Other assets

 

394,931

 

 

 

344,742

 

 

 

(728,209

)

 

 

11,464

 

Total assets

$

1,083,422

 

 

$

574,738

 

 

$

(828,434

)

 

$

829,726

 

Liabilities and Shareholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

74,306

 

 

$

6,733

 

 

$

 

 

$

81,039

 

Undistributed oil and natural gas proceeds

 

24,493

 

 

 

1,761

 

 

 

 

 

 

26,254

 

Asset retirement obligations

 

62,261

 

 

 

16,003

 

 

 

 

 

 

78,264

 

Long-term debt

 

8,272

 

 

 

 

 

 

 

 

 

8,272

 

Accrued liabilities

 

9,293

 

 

 

99,179

 

 

 

(99,272

)

 

 

9,200

 

Total current liabilities

 

178,625

 

 

 

123,676

 

 

 

(99,272

)

 

 

203,029

 

Long-term debt, less current maturities

 

1,012,455

 

 

 

 

 

 

 

 

 

1,012,455

 

Asset retirement obligations, less current portion

 

142,376

 

 

 

113,798

 

 

 

 

 

 

256,174

 

Other liabilities

 

408,050

 

 

 

 

 

 

(390,945

)

 

 

17,105

 

Shareholders’ equity (deficit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

539,973

 

 

 

704,885

 

 

 

(704,885

)

 

 

539,973

 

Retained earnings (deficit)

 

(1,173,891

)

 

 

(367,621

)

 

 

366,668

 

 

 

(1,174,844

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(658,084

)

 

 

337,264

 

 

 

(338,217

)

 

 

(659,037

)

Total liabilities and shareholders’ equity (deficit)

$

1,083,422

 

 

$

574,738

 

 

$

(828,434

)

 

$

829,726

 

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 (deficit):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

423,499

 

 

 

704,885

 

 

 

(704,885

)

 

 

423,499

 

Retained earnings

 

(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 Statement of Operations

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2016

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

161,063

 

 

$

238,923

 

 

$

 

 

$

399,986

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

84,415

 

 

 

67,984

 

 

 

 

 

 

152,399

 

Production taxes

 

1,889

 

 

 

 

 

 

 

 

 

1,889

 

Gathering and transportation

 

9,795

 

 

 

13,133

 

 

 

 

 

 

22,928

 

Depreciation, depletion and amortization

 

73,268

 

 

 

112,277

 

 

 

8,493

 

 

 

194,038

 

Asset retirement obligations accretion

 

8,165

 

 

 

9,406

 

 

 

 

 

 

17,571

 

Ceiling test write-down of oil and natural gas properties

 

28,305

 

 

 

110,709

 

 

 

140,049

 

 

 

279,063

 

General and administrative expenses

 

24,817

 

 

 

34,923

 

 

 

 

 

 

59,740

 

Derivative loss

 

2,926

 

 

 

 

 

 

 

 

 

2,926

 

Total costs and expenses

 

233,580

 

 

 

348,432

 

 

 

148,542

 

 

 

730,554

 

Operating loss

 

(72,517

)

 

 

(109,509

)

 

 

(148,542

)

 

 

(330,568

)

Loss of affiliates

 

(109,853

)

 

 

 

 

 

109,853

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

92,607

 

 

 

184

 

 

 

 

 

 

92,791

 

Capitalized

 

(336

)

 

 

(184

)

 

 

 

 

 

(520

)

Gain on exchange of debt

 

123,923

 

 

 

 

 

 

 

 

 

123,923

 

Other (income) expense, net

 

(6,520

)

 

 

 

 

 

 

 

 

(6,520

)

Loss before income tax expense (benefit)

 

(144,198

)

 

 

(109,509

)

 

 

(38,689

)

 

 

(292,396

)

Income tax expense (benefit)

 

(43,720

)

 

 

344

 

 

 

 

 

 

(43,376

)

Net loss

$

(100,478

)

 

$

(109,853

)

 

$

(38,689

)

 

$

(249,020

)

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 loss

 

(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

)

Earnings 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 expense

 

(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 and amortization

 

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 gain

 

(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 (benefit)

 

(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 Cash Flows

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(100,478

)

 

$

(109,853

)

 

$

(38,689

)

 

$

(249,020

)

Adjustments to reconcile net loss to net cash provided by

       (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

81,433

 

 

 

121,683

 

 

 

8,493

 

 

 

211,609

 

Ceiling test write-down of oil and gas properties

 

28,305

 

 

 

110,709

 

 

 

140,049

 

 

 

279,063

 

Gain on exchange of debt

 

(123,923

)

 

 

 

 

 

 

 

 

(123,923

)

Debt issuance costs write-off/amortization of debt items

 

2,548

 

 

 

 

 

 

 

 

 

2,548

 

Share-based compensation

 

11,013

 

 

 

 

 

 

 

 

 

11,013

 

Derivative gain

 

2,926

 

 

 

 

 

 

 

 

 

2,926

 

Cash receipts on derivative settlements, net

 

4,746

 

 

 

 

 

 

 

 

 

4,746

 

Deferred income taxes

 

28,048

 

 

 

344

 

 

 

 

 

 

28,392

 

Loss of affiliates

 

109,853

 

 

 

 

 

 

(109,853

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

1,630

 

 

 

(8,635

)

 

 

 

 

 

(7,005

)

Joint interest and other receivables

 

(1,126

)

 

 

 

 

 

 

 

 

(1,126

)

Income taxes

 

(64,274

)

 

 

 

 

 

 

 

 

(64,274

)

Prepaid expenses and other assets

 

(14,395

)

 

 

(78,547

)

 

 

77,996

 

 

 

(14,946

)

Asset retirement obligation settlements

 

(49,303

)

 

 

(23,017

)

 

 

 

 

 

(72,320

)

Accounts payable, accrued liabilities and other

 

46,955

 

 

 

37,538

 

 

 

(77,996

)

 

 

6,497

 

Net cash provided by (used in) operating activities

 

(36,042

)

 

 

50,222

 

 

 

 

 

 

14,180

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(37,418

)

 

 

(11,188

)

 

 

 

 

 

(48,606

)

Changes in operating assets and liabilities associated with

   investing activities

 

4,340

 

 

 

(39,534

)

 

 

 

 

 

(35,194

)

Proceeds from sales of assets and other, net

 

1,000

 

 

 

500

 

 

 

 

 

 

1,500

 

Purchases of furniture, fixtures and other

 

(96

)

 

 

 

 

 

 

 

 

(96

)

Net cash used in investing activities

 

(32,174

)

 

 

(50,222

)

 

 

 

 

 

(82,396

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

340,000

 

 

 

 

 

 

 

 

 

340,000

 

Repayments of long-term debt – revolving bank credit facility

 

(340,000

)

 

 

 

 

 

 

 

 

(340,000

)

Issuance of 1.5 Lien Term Loan

 

75,000

 

 

 

 

 

 

 

 

 

75,000

 

Payment of interest on 1.5 Lien Term Loan

 

(2,570

)

 

 

 

 

 

 

 

 

(2,570

)

Debt exchange costs

 

(18,464

)

 

 

 

 

 

 

 

 

(18,464

)

Other

 

(928

)

 

 

 

 

 

 

 

 

(928

)

Net cash provided by financing activities

 

53,038

 

 

 

 

 

 

 

 

 

53,038

 

Decrease in cash and cash equivalents

 

(15,178

)

 

 

 

 

 

 

 

 

(15,178

)

Cash and cash equivalents, beginning of period

 

85,414

 

 

 

 

 

 

 

 

 

85,414

 

Cash and cash equivalents, end of period

$

70,236

 

 

$

 

 

$

 

 

$

70,236

 

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 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

 

Amortization of debt issuance costs and premium

 

4,411

 

 

 

 

 

 

 

 

 

4,411

 

Share-based compensation

 

10,242

 

 

 

 

 

 

 

 

 

10,242

 

Derivative gain

 

(14,375

)

 

 

 

 

 

 

 

 

(14,375

)

Cash payments on derivative settlements

 

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 obligations

 

(26,637

)

 

 

(5,918

)

 

 

 

 

 

(32,555

)

Accounts payable, accrued liabilities and other

 

(141,596

)

 

 

4,156

 

 

 

91,245

 

 

 

(46,195

)

Net cash provided by (used in) operating activities

 

(89,573

)

 

 

222,801

 

 

 

 

 

 

133,228

 

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 provided by (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% Second Lien Term Loan

 

297,000

 

 

 

 

 

 

 

 

 

297,000

 

Debt issuance costs

 

(6,669

)

 

 

 

 

 

 

 

 

(6,669

)

Other

 

(886

)

 

 

 

 

 

 

 

 

(886

)

Investment from parent

 

 

 

 

1,445

 

 

 

(1,445

)

 

 

 

Net cash provided by (used in)  financing activities

 

(157,555

)

 

 

1,445

 

 

 

(1,445

)

 

 

(157,555

)

Increase 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 (loss) 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 loss

 

(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

 

11,931

 

 

 

(30,475

)

 

 

23,425

 

 

 

4,881

 

Net cash provided by operating activities

 

275,700

 

 

 

199,121

 

 

 

 

 

 

474,821

 

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

 

(1,193

)

 

 

 

 

 

 

 

 

(1,193

)

Investment from parent

 

 

 

 

62,323

 

 

 

(62,323

)

 

 

 

Net cash provided by financing activities

 

125,547

 

 

 

62,323

 

 

 

(62,323

)

 

 

125,547

 

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