W&T Offshore, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information (Tables)

Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2013

The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of W&T Offshore, Inc. (the “Parent Company”) and the Guarantor Subsidiaries, together with consolidating adjustments necessary to present the Company’s results on a consolidated basis.

Condensed Consolidating Balance Sheet as of March 31, 2013


	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	12,277		$	—	$	—		$	12,277
Receivables:
Oil and natural gas sales		80,556			16,753		—			97,309
Joint interest and other		35,681			—		—			35,681
Income taxes		167,708			—		(122,070	)		45,638

Total receivables		283,945			16,753		(122,070	)		178,628
Deferred income taxes		1,432			—		—			1,432
Prepaid expenses and other assets		22,363			—		—			22,363

Total current assets		320,017			16,753		(122,070	)		214,700
Property and equipment – at cost:
Oil and natural gas properties and equipment		6,480,011			356,579		—			6,836,590
Furniture, fixtures and other		21,949			—		—			21,949

Total property and equipment		6,501,960			356,579		—			6,858,539
Less accumulated depreciation, depletion and amortization		4,543,468			215,730		—			4,759,198

Net property and equipment		1,958,492			140,849		—			2,099,341
Restricted deposits for asset retirement obligations		29,161			—		—			29,161
Deferred income taxes		—			12,776		(12,776	)		—
Other assets		454,552			417,655		(853,352	)		18,855

Total assets	$	2,762,222		$	588,033	$	(988,198	)	$	2,362,057

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	112,207		$	16	$	—		$	112,223
Undistributed oil and natural gas proceeds		41,011			244		—			41,255
Asset retirement obligations		69,964			—		—			69,964
Accrued liabilities		38,676			122,461		(122,070	)		39,067

Total current liabilities		261,858			122,721		(122,070	)		262,509
Long-term debt		1,060,079			—		—			1,060,079
Asset retirement obligations, less current portion		278,646			29,615		—			308,261
Deferred income taxes		171,698			—		(12,776	)		158,922
Other liabilities		425,942			—		(417,654	)		8,288
Shareholders’ equity:
Common stock		1			—		—			1
Additional paid-in capital		398,465			231,759		(231,759	)		398,465
Retained earnings		189,700			203,938		(203,939	)		189,699
Treasury stock, at cost		(24,167	)		—		—			(24,167	)

Total shareholders’ equity		563,999			435,697		(435,698	)		563,998

Total liabilities and shareholders’ equity	$	2,762,222		$	588,033	$	(988,198	)	$	2,362,057

Condensed Consolidating Balance Sheet as of December 31, 2012


	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	12,245		$	—	$	—		$	12,245
Receivables:
Oil and natural gas sales		80,729			17,004		—			97,733
Joint interest and other		56,439			—		—			56,439
Income taxes		163,750			—		(115,866	)		47,884

Total receivables		300,918			17,004		(115,866	)		202,056
Deferred income taxes		267			—		—			267
Prepaid expenses and other assets		25,555			—		—			25,555

Total current assets		338,985			17,004		(115,866	)		240,123
Property and equipment – at cost:
Oil and natural gas properties and equipment		6,356,529			337,981		—			6,694,510
Furniture, fixtures and other		21,786			—		—			21,786

Total property and equipment		6,378,315			337,981		—			6,716,296
Less accumulated depreciation, depletion and amortization		4,461,886			193,955		—			4,655,841

Net property and equipment		1,916,429			144,026		—			2,060,455
Restricted deposits for asset retirement obligations		28,466			—		—			28,466
Deferred income taxes		—			13,509		(13,509	)		—
Other assets		442,540			393,499		(816,096	)		19,943

Total assets	$	2,726,420		$	568,038	$	(945,471	)	$	2,348,987

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	123,792		$	93	$	—		$	123,885
Undistributed oil and natural gas proceeds		36,791			282		—			37,073
Asset retirement obligations		92,595			—		35			92,630
Accrued liabilities		20,755			116,132		(115,866	)		21,021

Total current liabilities		273,933			116,507		(115,831	)		274,609
Long-term debt		1,087,611			—		—			1,087,611
Asset retirement obligations, less current portion		262,524			28,934		(35	)		291,423
Deferred income taxes		158,758			—		(13,509	)		145,249
Other liabilities		402,407			—		(393,499	)		8,908
Shareholders’ equity:
Common stock		1			—		—			1
Additional paid-in capital		396,186			231,759		(231,759	)		396,186
Retained earnings		169,167			190,838		(190,838	)		169,167
Treasury stock, at cost		(24,167	)		—		—			(24,167	)

Total shareholders’ equity		541,187			422,597		(422,597	)		541,187

Total liabilities and shareholders’ equity	$	2,726,420		$	568,038	$	(945,471	)	$	2,348,987

Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income for the Three Months Ended March 31, 2013


	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Revenues	$	209,528		$	49,694	$	—		$	259,222

Operating costs and expenses:
Lease operating expenses		54,529			4,812		—			59,341
Production taxes		1,789			—		—			1,789
Gathering and transportation		3,662			782		—			4,444
Depreciation, depletion, amortization and accretion		86,416			22,456		—			108,872
General and administrative expenses		19,604			1,483		—			21,087
Derivative loss		3,368			—		—			3,368

Total costs and expenses		169,368			29,533		—			198,901

Operating income		40,160			20,161		—			60,321
Earnings of affiliates		13,100			—		(13,100	)		—
Interest expense:
Incurred		21,234			—		—			21,234
Capitalized		(2,433	)		—		—			(2,433	)

Income before income tax expense		34,459			20,161		(13,100	)		41,520
Income tax expense		7,841			7,061		—			14,902

Net income	$	26,618		$	13,100	$	(13,100	)	$	26,618

Condensed Consolidating Statement of Income for the Three Months Ended March 31, 2012


	Parent Company			Guarantor Subsidiaries		Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Revenues	$	176,562		$	59,324	$	—		$	235,886

Operating costs and expenses:
Lease operating expenses		50,018			6,645		—			56,663
Production taxes		1,485			—		—			1,485
Gathering and transportation		3,484			737		—			4,221
Depreciation, depletion, amortization and accretion		67,623			20,868		—			88,491
General and administrative expenses		26,887			2,592		—			29,479
Derivative loss		39,634			—		—			39,634

Total costs and expenses		189,131			30,842		—			219,973

Operating income (loss)		(12,569	)		28,482		—			15,913
Earnings of affiliates		18,516			—		(18,516	)		—
Interest expense:
Incurred		13,905			—		—			13,905
Capitalized		(3,191	)		—		—			(3,191	)

Income (loss) before income tax expense		(4,767	)		28,482		(18,516	)		5,199
Income tax expense (benefit)		(7,985	)		9,966		—			1,981

Net income	$	3,218		$	18,516	$	(18,516	)	$	3,218

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2013


	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Operating activities:
Net income	$	26,618		$	13,100		$	(13,100	)	$	26,618
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		86,416			22,456			—			108,872
Amortization of debt issuance costs and premium		447			—			—			447
Share-based compensation		2,255			—			—			2,255
Derivative loss		3,368			—			—			3,368
Cash payments on derivative settlements		(4,271	)		—			—			(4,271	)
Deferred income taxes		11,774			733			—			12,507
Earnings of affiliates		(13,100	)		—			13,100			—
Changes in operating assets and liabilities:
Oil and natural gas receivables		172			251			—			423
Joint interest and other receivables		25,875			—			—			25,875
Income taxes		(3,957	)		6,329			—			2,372
Prepaid expenses and other assets		4,911			(24,155	)		24,155			4,911
Asset retirement obligation settlements		(23,311	)		(153	)		—			(23,464	)
Accounts payable, accrued liabilities and other		34,191			(115	)		(24,155	)		9,921

Net cash provided by operating activities		151,388			18,446			—			169,834

Investing activities:
Investment in oil and natural gas properties and equipment		(118,180	)		(18,446	)		—			(136,626	)
Purchases of furniture, fixtures and other		(114	)		—			—			(114	)

Net cash used in investing activities		(118,294	)		(18,446	)		—			(136,740	)

Financing activities:
Borrowings of long-term debt – revolving bank credit facility		112,000			—			—			112,000
Repayments of long-term debt – revolving bank credit facility		(139,000	)		—			—			(139,000	)
Dividends to shareholders		(6,020	)		—			—			(6,020	)
Other		(42	)		—			—			(42	)

Net cash used in financing activities		(33,062	)		—			—			(33,062	)

Increase in cash and cash equivalents		32			—			—			32
Cash and cash equivalents, beginning of period		12,245			—			—			12,245

Cash and cash equivalents, end of period	$	12,277		$	—		$	—		$	12,277

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2012


	Parent Company			Guarantor Subsidiaries			Eliminations			Consolidated W&T Offshore, Inc.
	(In thousands)
Operating activities:
Net income	$	3,218		$	18,516		$	(18,516	)	$	3,218
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		67,623			20,868			—			88,491
Amortization of debt issuance costs		586			—			—			586
Share-based compensation		2,659			—			—			2,659
Derivative loss		39,634			—			—			39,634
Cash payments on derivative settlements		(5,800	)		—			—			(5,800	)
Deferred income taxes		2,963			(413	)		—			2,550
Earnings of affiliates		(18,516	)		—			18,516			—
Changes in operating assets and liabilities:
Oil and natural gas receivables		8,187			1,329			—			9,516
Joint interest and other receivables		(2,170	)		—			—			(2,170	)
Insurance receivables		715			—			—			715
Income taxes		(20,766	)		10,380			—			(10,386	)
Prepaid expenses and other assets		3,735			(37,855	)		38,004			3,884
Asset retirement obligation settlements		(5,384	)		—			—			(5,384	)
Accounts payable, accrued liabilities and other		40,556			(1,908	)		(38,004	)		644

Net cash provided by operating activities		117,240			10,917			—			128,157

Investing activities:
Investment in oil and natural gas properties and equipment		(73,709	)		(10,917	)		—			(84,626	)
Purchases of furniture, fixtures and other		(500	)		—			—			(500	)

Net cash used in investing activities		(74,209	)		(10,917	)		—			(85,126	)

Financing activities:
Borrowings of long-term debt – revolving bank credit facility		84,000			—			—			84,000
Repayments of long-term debt – revolving bank credit facility		(117,000	)		—			—			(117,000	)
Dividends to shareholders		(5,948	)		—			—			(5,948	)
Other		(87	)		—			—			(87	)

Net cash used in financing activities		(39,035	)		—			—			(39,035	)

Increase in cash and cash equivalents		3,996			—			—			3,996
Cash and cash equivalents, beginning of period		4,512			—			—			4,512

Cash and cash equivalents, end of period	$	8,508		$	—		$	—		$	8,508