Quarterly report pursuant to Section 13 or 15(d)

Business Acquisition Pro Forma Information Incremental Items, Newfield Properties (Detail)

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Business Acquisition Pro Forma Information Incremental Items, Newfield Properties (Detail) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Business Acquisition [Line Items]        
Revenues $ 244,555 $ 185,946 $ 739,160 $ 637,345
Direct operating expenses 67,346 53,411 194,935 170,349
DD&A 104,143 77,462 312,911 251,894
Interest expense 21,373 14,791 64,157 43,409
Capitalized interest 2,573 3,383 7,537 9,899
Income tax expense (benefit) 8,033 (2,175) 35,358 33,959
Newfield Properties | Pro Forma
        
Business Acquisition [Line Items]        
Revenues   31,768 [1]   104,463 [1]
Direct operating expenses   9,026 [1]   33,089 [1]
Insurance and acquisition costs, net   128 [2]   444 [2]
DD&A   15,757 [3]   52,634 [3]
Interest expense   3,960 [4]   11,881 [4]
Capitalized interest   148 [5]   634 [5]
Income tax expense (benefit)   $ 1,066 [6]   $ 2,467 [6]
[1] Revenues and direct operating expenses for the Newfield Properties were derived from the historical financial records of Newfield.
[2] Incremental costs for insurance were estimated using the incremental costs to add the Newfield Properties to W&T’s insurance programs. The direct operating expenses for the Newfield Properties described above exclude insurance costs. Expenses were reduced for acquisition costs incurred.
[3] DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Newfield Properties’ costs, reserves and production into our currently existing full cost pool in order to compute such amounts. The purchase price allocation included $13.1 million that was allocated to the pool of unevaluated properties for oil and natural gas interests. Accordingly, no DD&A expense was estimated for the unevaluated properties. ARO was estimated by W&T management.
[4] The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $205.7 million, which equates to the cash paid including purchase price adjustments and an interest rate of 7.7%, which equates to the effective yield on net proceeds for the additional senior notes issued shortly after the acquisition closed.
[5] Incremental capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings.
[6] Income tax expense was computed using the 35% federal statutory rate.