Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information

v3.10.0.1
Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2018
Supplemental Guarantor Information [Abstract]  
Supplemental Guarantor Information

12.  Supplemental Guarantor Information

Our payment obligations under the Credit Agreement, the 1.5 Lien Term Loan, the Second Lien Term Loan, the Second Lien PIK Toggle Notes, the Third Lien PIK Toggle Notes and the Unsecured Senior Notes (see Note 2) are fully and unconditionally guaranteed by certain of our 100%-owned subsidiaries, including Energy VI 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 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, if the sale or other disposition does not violate the Asset Sale provisions (as such capitalized terms are defined in the applicable indenture);

 

(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 Sale provisions of the indenture 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 the applicable indenture) or upon satisfaction and discharge of the certain debt documents;

 

(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.  As a result of the JV Drilling Program, we recorded proportional consolidation adjustments, which are not considered a guarantor asset under our debt agreements and, accordingly, are reported as non-guarantor adjustments in the following tables.  Due to the methodology of recording the ceiling-test write down in prior periods, consolidating adjustments are required to present the consolidated results appropriately.  

Condensed Consolidating Balance Sheet as of June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

129,440

 

 

$

 

 

$

 

 

$

 

 

$

129,440

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

8,109

 

 

 

44,161

 

 

 

(197

)

 

 

 

 

 

52,073

 

Joint interest

 

19,366

 

 

 

 

 

 

 

 

 

 

 

 

19,366

 

Income taxes

 

193,594

 

 

 

 

 

 

 

 

 

(128,354

)

 

 

65,240

 

Total receivables

 

221,069

 

 

 

44,161

 

 

 

(197

)

 

 

(128,354

)

 

 

136,679

 

Prepaid expenses and other assets

 

16,739

 

 

 

3,700

 

 

 

31

 

 

 

 

 

 

20,470

 

Total current assets

 

367,248

 

 

 

47,861

 

 

 

(166

)

 

 

(128,354

)

 

 

286,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

416,539

 

 

 

121,075

 

 

 

48,003

 

 

 

(9,544

)

 

 

576,073

 

Restricted deposits for asset retirement obligations

 

26,072

 

 

 

 

 

 

 

 

 

 

 

 

26,072

 

Other assets

 

607,463

 

 

 

544,029

 

 

 

(46,464

)

 

 

(1,035,610

)

 

 

69,418

 

Total assets

$

1,417,322

 

 

$

712,965

 

 

$

1,373

 

 

$

(1,173,508

)

 

$

958,152

 

Liabilities and Shareholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

38,445

 

 

$

6,457

 

 

$

1,562

 

 

$

 

 

$

46,464

 

Undistributed oil and natural gas proceeds

 

21,390

 

 

 

1,259

 

 

 

 

 

 

 

 

 

22,649

 

Asset retirement obligations

 

21,663

 

 

 

6,260

 

 

 

 

 

 

 

 

 

27,923

 

Current maturities of long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

189,829

 

 

 

 

 

 

 

 

 

 

 

 

189,829

 

Carrying value adjustments

 

34,917

 

 

 

 

 

 

 

 

 

 

 

 

34,917

 

Current maturities of long-term debt  -

   carrying value

 

224,746

 

 

 

 

 

 

 

 

 

 

 

 

224,746

 

Accrued liabilities

 

20,523

 

 

 

128,336

 

 

 

 

 

 

(128,354

)

 

 

20,505

 

Total current liabilities

 

326,767

 

 

 

142,312

 

 

 

1,562

 

 

 

(128,354

)

 

 

342,287

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

713,365

 

 

 

 

 

 

 

 

 

 

 

 

713,365

 

Carrying value adjustments

 

47,605

 

 

 

 

 

 

 

 

 

 

 

 

47,605

 

Long term debt, less current portion -

  carrying value

 

760,970

 

 

 

 

 

 

 

 

 

 

 

 

760,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

164,010

 

 

 

125,275

 

 

 

12

 

 

 

 

 

 

289,297

 

Other liabilities

 

663,239

 

 

 

 

 

 

 

 

 

(590,232

)

 

 

73,007

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

548,196

 

 

 

704,885

 

 

 

 

 

 

(704,885

)

 

 

548,196

 

Retained earnings (deficit)

 

(1,021,694

)

 

 

(259,507

)

 

 

(201

)

 

 

249,963

 

 

 

(1,031,439

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(497,664

)

 

 

445,378

 

 

 

(201

)

 

 

(454,922

)

 

 

(507,409

)

Total liabilities and shareholders’ equity (deficit)

$

1,417,322

 

 

$

712,965

 

 

$

1,373

 

 

$

(1,173,508

)

 

$

958,152

 

 

Condensed Consolidating Balance Sheet as of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

99,058

 

 

$

 

 

$

 

 

$

99,058

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

5,665

 

 

 

39,778

 

 

 

 

 

 

45,443

 

Joint interest

 

19,754

 

 

 

 

 

 

 

 

 

19,754

 

Income taxes

 

128,835

 

 

 

 

 

 

(115,829

)

 

 

13,006

 

Total receivables

 

154,254

 

 

 

39,778

 

 

 

(115,829

)

 

 

78,203

 

Prepaid expenses and other assets

 

11,154

 

 

 

2,265

 

 

 

 

 

 

13,419

 

Total current assets

 

264,466

 

 

 

42,043

 

 

 

(115,829

)

 

 

190,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

430,354

 

 

 

152,464

 

 

 

(3,802

)

 

 

579,016

 

Restricted deposits for asset retirement obligations

 

25,394

 

 

 

 

 

 

 

 

 

25,394

 

Income taxes receivable

 

52,097

 

 

 

 

 

 

 

 

 

52,097

 

Other assets

 

505,304

 

 

 

453,306

 

 

 

(898,217

)

 

 

60,393

 

Total assets

$

1,277,615

 

 

$

647,813

 

 

$

(1,017,848

)

 

$

907,580

 

Liabilities and Shareholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

76,703

 

 

$

6,962

 

 

$

 

 

$

83,665

 

Undistributed oil and natural gas proceeds

 

18,762

 

 

 

1,367

 

 

 

 

 

 

20,129

 

Asset retirement obligations

 

22,488

 

 

 

1,125

 

 

 

 

 

 

23,613

 

Current maturities of long-term debt  - carrying value

 

22,925

 

 

 

 

 

 

 

 

 

22,925

 

Accrued liabilities

 

18,058

 

 

 

115,701

 

 

 

(115,829

)

 

 

17,930

 

Total current liabilities

 

158,936

 

 

 

125,155

 

 

 

(115,829

)

 

 

168,262

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

889,790

 

 

 

 

 

 

 

 

 

889,790

 

Carrying value adjustments

 

79,337

 

 

 

 

 

 

 

 

 

79,337

 

Long term debt, less current portion - carrying value

 

969,127

 

 

 

 

 

 

 

 

 

969,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

152,883

 

 

 

123,950

 

 

 

 

 

 

276,833

 

Other liabilities

 

566,375

 

 

 

 

 

 

(499,509

)

 

 

66,866

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

545,820

 

 

 

704,885

 

 

 

(704,885

)

 

 

545,820

 

Retained earnings (deficit)

 

(1,091,360

)

 

 

(306,177

)

 

 

302,375

 

 

 

(1,095,162

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ deficit

 

(569,706

)

 

 

398,708

 

 

 

(402,510

)

 

 

(573,508

)

Total liabilities and shareholders’ deficit

$

1,277,615

 

 

$

647,813

 

 

$

(1,017,848

)

 

$

907,580

 


 

Condensed Consolidating Statement of Operations for the Three Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

77,270

 

 

$

71,873

 

 

$

469

 

 

$

 

 

$

149,612

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

21,617

 

 

 

13,929

 

 

 

36

 

 

 

 

 

 

35,582

 

Production taxes

 

439

 

 

 

 

 

 

 

 

 

 

 

 

439

 

Gathering and transportation

 

2,834

 

 

 

2,084

 

 

 

10

 

 

 

 

 

 

4,928

 

Depreciation, depletion, amortization

   and accretion

 

19,954

 

 

 

16,743

 

 

 

164

 

 

 

2,896

 

 

 

39,757

 

General and administrative expenses

 

6,854

 

 

 

7,166

 

 

 

200

 

 

 

 

 

 

14,220

 

Derivative gain

 

6,219

 

 

 

 

 

 

 

 

 

 

 

 

6,219

 

Total costs and expenses

 

57,917

 

 

 

39,922

 

 

 

410

 

 

 

2,896

 

 

 

101,145

 

Operating income

 

19,353

 

 

 

31,951

 

 

 

59

 

 

 

(2,896

)

 

 

48,467

 

Earnings of affiliates

 

24,502

 

 

 

 

 

 

 

 

 

(24,502

)

 

 

 

Interest expense

 

12,147

 

 

 

 

 

 

 

 

 

 

 

 

12,147

 

Other (income) expense, net

 

(121

)

 

 

 

 

 

246

 

 

 

 

 

 

125

 

Income before income tax

   expense (benefit)

 

31,829

 

 

 

31,951

 

 

 

(187

)

 

 

(27,398

)

 

 

36,195

 

Income tax expense (benefit)

 

(7,337

)

 

 

7,449

 

 

 

 

 

 

 

 

 

112

 

Net income

$

39,166

 

 

$

24,502

 

 

$

(187

)

 

$

(27,398

)

 

$

36,083

 

 

 


Condensed Consolidating Statement of Operations for the Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

141,056

 

 

$

142,300

 

 

$

469

 

 

$

 

 

$

283,825

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

41,377

 

 

 

31,012

 

 

 

36

 

 

 

 

 

 

72,425

 

Production taxes

 

894

 

 

 

 

 

 

 

 

 

 

 

 

894

 

Gathering and transportation

 

5,537

 

 

 

4,438

 

 

 

10

 

 

 

 

 

 

9,985

 

Depreciation, depletion, amortization and accretion

 

39,374

 

 

 

32,557

 

 

 

164

 

 

 

5,743

 

 

 

77,838

 

General and administrative expenses

 

14,057

 

 

 

14,990

 

 

 

211

 

 

 

 

 

 

29,258

 

Derivative gain

 

6,219

 

 

 

 

 

 

 

 

 

 

 

 

6,219

 

Total costs and expenses

 

107,458

 

 

 

82,997

 

 

 

421

 

 

 

5,743

 

 

 

196,619

 

Operating income

 

33,598

 

 

 

59,303

 

 

 

48

 

 

 

(5,743

)

 

 

87,206

 

Earnings of affiliates

 

46,669

 

 

 

 

 

 

 

 

 

(46,669

)

 

 

 

Interest expense

 

23,470

 

 

 

 

 

 

 

 

 

 

 

 

23,470

 

Other (income) expense, net

 

(457

)

 

 

 

 

 

249

 

 

 

 

 

 

(208

)

Income before income tax expense (benefit)

 

57,254

 

 

 

59,303

 

 

 

(201

)

 

 

(52,412

)

 

 

63,944

 

Income tax expense (benefit)

 

(12,413

)

 

 

12,634

 

 

 

 

 

 

 

 

 

221

 

Net income

$

69,667

 

 

$

46,669

 

 

$

(201

)

 

$

(52,412

)

 

$

63,723

 

 


 

Condensed Consolidating Statement of Operations for the Three Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

57,417

 

 

$

65,906

 

 

$

 

 

$

123,323

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

17,325

 

 

 

14,194

 

 

 

 

 

 

31,519

 

Production taxes

 

449

 

 

 

 

 

 

 

 

 

449

 

Gathering and transportation

 

2,578

 

 

 

2,740

 

 

 

 

 

 

5,318

 

Depreciation, depletion, amortization and accretion

 

21,433

 

 

 

18,143

 

 

 

788

 

 

 

40,364

 

General and administrative expenses

 

7,662

 

 

 

8,812

 

 

 

 

 

 

16,474

 

Derivative gain

 

(3,689

)

 

 

 

 

 

 

 

 

(3,689

)

Total costs and expenses

 

45,758

 

 

 

43,889

 

 

 

788

 

 

 

90,435

 

Operating income

 

11,659

 

 

 

22,017

 

 

 

(788

)

 

 

32,888

 

Earnings of affiliates

 

18,941

 

 

 

 

 

 

(18,941

)

 

 

 

Interest expense

 

11,436

 

 

 

 

 

 

 

 

 

11,436

 

Gain on exchange of debt

 

8,056

 

 

 

 

 

 

 

 

 

8,056

 

Other expense, net

 

5,168

 

 

 

 

 

 

 

 

 

5,168

 

Income before income tax expense (benefit)

 

22,052

 

 

 

22,017

 

 

 

(19,729

)

 

 

24,340

 

Income tax expense (benefit)

 

(12,051

)

 

 

3,076

 

 

 

 

 

 

(8,975

)

Net income

$

34,103

 

 

$

18,941

 

 

$

(19,729

)

 

$

33,315

 

 


 

Condensed Consolidating Statement of Operations for the Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

111,124

 

 

$

136,592

 

 

$

 

 

$

247,716

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

41,027

 

 

 

30,656

 

 

 

 

 

 

71,683

 

Production taxes

 

964

 

 

 

 

 

 

 

 

 

964

 

Gathering and transportation

 

5,144

 

 

 

6,383

 

 

 

 

 

 

11,527

 

Depreciation, depletion, amortization and accretion

 

40,587

 

 

 

38,248

 

 

 

1,519

 

 

 

80,354

 

General and administrative expenses

 

13,438

 

 

 

16,310

 

 

 

 

 

 

29,748

 

Derivative gain

 

(7,644

)

 

 

 

 

 

 

 

 

(7,644

)

Total costs and expenses

 

93,516

 

 

 

91,597

 

 

 

1,519

 

 

 

186,632

 

Operating income

 

17,608

 

 

 

44,995

 

 

 

(1,519

)

 

 

61,084

 

Earnings of affiliates

 

36,468

 

 

 

 

 

 

(36,468

)

 

 

 

Interest expense

 

22,730

 

 

 

 

 

 

 

 

 

22,730

 

Gain on exchange of debt

 

7,811

 

 

 

 

 

 

 

 

 

7,811

 

Other expense, net

 

5,114

 

 

 

 

 

 

 

 

 

5,114

 

Income before income tax expense (benefit)

 

34,043

 

 

 

44,995

 

 

 

(37,987

)

 

 

41,051

 

Income tax expense (benefit)

 

(25,090

)

 

 

8,527

 

 

 

 

 

 

(16,563

)

Net loss

$

59,133

 

 

$

36,468

 

 

$

(37,987

)

 

$

57,614

 

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

69,667

 

 

$

46,669

 

 

$

(201

)

 

$

(52,412

)

 

$

63,723

 

Adjustments to reconcile net income to net cash

  provided by  operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

39,374

 

 

 

32,557

 

 

 

164

 

 

 

5,743

 

 

 

77,838

 

Amortization of debt items and other items

 

1,126

 

 

 

 

 

 

 

 

 

 

 

 

1,126

 

Share-based compensation

 

2,434

 

 

 

 

 

 

 

 

 

 

 

 

2,434

 

Derivative loss

 

6,219

 

 

 

 

 

 

 

 

 

 

 

 

6,219

 

Cash receipts on derivative settlements, net

 

(1,149

)

 

 

 

 

 

 

 

 

 

 

 

(1,149

)

Deferred income taxes

 

221

 

 

 

 

 

 

 

 

 

 

 

 

221

 

Earnings of affiliates

 

(46,669

)

 

 

 

 

 

 

 

 

46,669

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

(2,444

)

 

 

(4,383

)

 

 

197

 

 

 

 

 

 

(6,630

)

Joint interest receivables

 

251

 

 

 

 

 

 

 

 

 

 

 

 

251

 

Income taxes

 

(12,772

)

 

 

12,634

 

 

 

 

 

 

 

 

 

(138

)

Prepaid expenses and other assets

 

(37,025

)

 

 

(72,465

)

 

 

4,445

 

 

 

90,722

 

 

 

(14,323

)

Asset retirement obligation settlements

 

(7,725

)

 

 

(4,399

)

 

 

 

 

 

 

 

 

(12,124

)

Accounts payable, accrued liabilities and other

 

80,147

 

 

 

8,055

 

 

 

264

 

 

 

(90,722

)

 

 

(2,256

)

Net cash provided by operating activities

 

91,655

 

 

 

18,668

 

 

 

4,869

 

 

 

 

 

 

115,192

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(15,638

)

 

 

(9,999

)

 

 

(6,166

)

 

 

 

 

 

(31,803

)

Changes in operating assets and liabilities associated with

   investing activities

 

(21,958

)

 

 

(8,669

)

 

 

1,297

 

 

 

 

 

 

(29,330

)

Acquisition of property interest

 

(16,617

)

 

 

 

 

 

 

 

 

 

 

 

(16,617

)

Net cash used in investing activities

 

(54,213

)

 

 

(18,668

)

 

 

(4,869

)

 

 

 

 

 

(77,750

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of interest on 1.5 Lien Term Loan

 

(4,114

)

 

 

 

 

 

 

 

 

 

 

 

(4,114

)

Payment of interest on 2nd Lien PIK Toggle Notes

 

(2,920

)

 

 

 

 

 

 

 

 

 

 

 

(2,920

)

Other

 

(26

)

 

 

 

 

 

 

 

 

 

 

 

(26

)

Net cash used in financing activities

 

(7,060

)

 

 

 

 

 

 

 

 

 

 

 

(7,060

)

Increase in cash and cash equivalents

 

30,382

 

 

 

 

 

 

 

 

 

 

 

 

30,382

 

Cash and cash equivalents, beginning of period

 

99,058

 

 

 

 

 

 

 

 

 

 

 

 

99,058

 

Cash and cash equivalents, end of period

$

129,440

 

 

$

 

 

$

 

 

$

 

 

$

129,440

 

 


 

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

59,133

 

 

$

36,468

 

 

$

(37,987

)

 

$

57,614

 

Adjustments to reconcile net income to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

40,587

 

 

 

38,248

 

 

 

1,519

 

 

 

80,354

 

Gain on exchange of debt

 

(7,811

)

 

 

 

 

 

 

 

 

(7,811

)

Amortization of debt items

 

836

 

 

 

 

 

 

 

 

 

836

 

Share-based compensation

 

3,466

 

 

 

 

 

 

 

 

 

3,466

 

Derivative gain

 

(7,644

)

 

 

 

 

 

 

 

 

(7,644

)

Cash receipts on derivative settlements

 

2,208

 

 

 

 

 

 

 

 

 

2,208

 

Deferred income taxes

 

212

 

 

 

 

 

 

 

 

 

212

 

Earnings of affiliates

 

(36,468

)

 

 

 

 

 

36,468

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

(1,095

)

 

 

4,770

 

 

 

 

 

 

3,675

 

Joint interest receivables

 

1,965

 

 

 

 

 

 

 

 

 

1,965

 

Insurance reimbursements

 

30,100

 

 

 

 

 

 

 

 

 

30,100

 

Income taxes

 

(25,487

)

 

 

8,527

 

 

 

 

 

 

(16,960

)

Prepaid expenses and other assets

 

(3,165

)

 

 

(74,591

)

 

 

74,181

 

 

 

(3,575

)

Escrow deposit - Apache lawsuit

 

(49,500

)

 

 

 

 

 

 

 

 

(49,500

)

Asset retirement obligations

 

(25,044

)

 

 

(10,977

)

 

 

 

 

 

(36,021

)

Accounts payable, accrued liabilities and other

 

81,785

 

 

 

(938

)

 

 

(74,181

)

 

 

6,666

 

Net cash provided by operating activities

 

64,078

 

 

 

1,507

 

 

 

 

 

 

65,585

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(41,854

)

 

 

(1,946

)

 

 

 

 

 

(43,800

)

Changes in operating assets and liabilities associated with

   investing activities

 

(1,266

)

 

 

439

 

 

 

 

 

 

(827

)

Purchases of furniture, fixtures and other

 

(853

)

 

 

 

 

 

 

 

 

(853

)

Net cash used in investing activities

 

(43,973

)

 

 

(1,507

)

 

 

 

 

 

(45,480

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of interest on 1.5 Lien Term Loan

 

(4,113

)

 

 

 

 

 

 

 

 

(4,113

)

Payment of interest on 2nd Lien PIK Toggle Notes

 

(7,335

)

 

 

 

 

 

 

 

 

(7,335

)

Payment of interest on 3rd Lien PIK Toggle Notes

 

(6,201

)

 

 

 

 

 

 

 

 

(6,201

)

Other

 

(372

)

 

 

 

 

 

 

 

 

(372

)

Net cash used in financing activities

 

(18,021

)

 

 

 

 

 

 

 

 

(18,021

)

Increase in cash, cash equivalents and restricted cash

 

2,084

 

 

 

 

 

 

 

 

 

2,084

 

Cash and cash equivalents, beginning of period

 

70,236

 

 

 

 

 

 

 

 

 

70,236

 

Cash and cash equivalents, end of period

$

72,320

 

 

$

 

 

$

 

 

$

72,320