Annual report pursuant to Section 13 and 15(d)

Supplemental Guarantor Information (Tables)

v2.4.0.6
Supplemental Guarantor Information (Tables)
12 Months Ended
Dec. 31, 2012
Condensed Consolidating Balance Sheet

The following 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 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                    20,755   

Income taxes

          116,132        (115,866     266   
 

 

 

   

 

 

   

 

 

   

 

 

 

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   

Commitments and contingencies

       

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 Balance Sheet as of December 31, 2011

 

    Parent
Company
    Guarantor
Subsidiaries
    Eliminations     Consolidated
W&T
Offshore, Inc.
 
    (In thousands)  
Assets        

Current assets:

       

Cash and cash equivalents

  $ 4,512      $     $     $ 4,512   

Receivables:

       

Oil and natural gas sales

    78,131        20,419              98,550   

Joint interest and other

    25,089                    25,089   

Insurance

    715                    715   

Income taxes

    74,183              (74,183       
 

 

 

   

 

 

   

 

 

   

 

 

 

Total receivables

    178,118        20,419        (74,183     124,354   

Deferred income taxes

    2,007                    2,007   

Prepaid expenses and other assets

    30,315                    30,315   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    214,952        20,419        (74,183     161,188   

Property and equipment – at cost:

       

Oil and natural gas properties and equipment

    5,689,535        269,481              5,959,016   

Furniture, fixtures and other

    19,500                    19,500   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total property and equipment

    5,709,035        269,481              5,978,516   

Less accumulated depreciation, depletion and amortization

    4,208,825        111,585              4,320,410   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net property and equipment

    1,500,210        157,896              1,658,106   

Restricted deposits for asset retirement obligations

    33,462                    33,462   

Deferred income taxes

          17,637        (17,637 )       

Other assets

    372,572        275,181        (631,584     16,169   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

  $ 2,121,196      $ 471,133      $ (723,404   $ 1,868,925   
 

 

 

   

 

 

   

 

 

   

 

 

 
Liabilities and Shareholders’ Equity        

Current liabilities:

       

Accounts payable

  $ 73,333      $ 2,538      $     $ 75,871   

Undistributed oil and natural gas proceeds

    33,391        341              33,732   

Asset retirement obligations

    138,185                    138,185   

Accrued liabilities

    29,705                    29,705   

Income taxes

          84,575        (74,183     10,392   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    274,614        87,454        (74,183     287,885   

Long-term debt

    717,000                    717,000   

Asset retirement obligations, less current portion

    228,419        27,276              255,695   

Deferred income taxes

    76,518              (17,637     58,881   

Other liabilities

    280,071              (275,181     4,890   

Commitments and contingencies

       

Shareholders’ equity:

       

Common stock

    1                    1   

Additional paid-in capital

    386,920        231,759        (231,759     386,920   

Retained earnings

    181,820        124,644        (124,644     181,820   

Treasury stock, at cost

    (24,167                 (24,167
 

 

 

   

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

    544,574        356,403        (356,403     544,574   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

  $ 2,121,196      $ 471,133      $ (723,404   $ 1,868,925   
 

 

 

   

 

 

   

 

 

   

 

 

 
Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income for the Twelve Months Ended December 31, 2012

 

     Parent
Company
    Guarantor
Subsidiaries
     Eliminations     Consolidated
W&T
Offshore, Inc.
 
     (In thousands)  

Revenues

   $ 659,203      $ 215,288       $     $ 874,491   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating costs and expenses:

         

Lease operating expenses

     209,581        22,679               232,260   

Production taxes

     5,840                     5,840   

Gathering and transportation

     11,703        3,175               14,878   

Depreciation, depletion and amortization

     253,807        82,370               336,177   

Asset retirement obligation accretion

     17,463        2,592               20,055   

General and administrative expenses

     79,424        2,593               82,017   

Derivative loss

     13,954                     13,954   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total costs and expenses

     591,772        113,409               705,181   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

     67,431        101,879               169,310   

Earnings of affiliates

     66,195               (66,195      

Interest expense:

         

Incurred

     63,268                     63,268   

Capitalized

     (13,274                  (13,274

Other income

     215                     215   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax expense

     83,847        101,879         (66,195     119,531   

Income tax expense

     11,863        35,684               47,547   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 71,984      $ 66,195       $ (66,195   $ 71,984   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

Condensed Consolidating Statement of Income for the Twelve Months Ended December 31, 2011

 

     Parent
Company
    Guarantor
Subsidiaries
     Eliminations     Consolidated
W&T
Offshore, Inc.
 
     (In thousands)  

Revenues

   $ 697,899      $ 273,148       $     $ 971,047   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating costs and expenses:

         

Lease operating expenses

     182,165        37,041               219,206   

Production taxes

     4,275                     4,275   

Gathering and transportation

     12,676        4,244               16,920   

Depreciation, depletion and amortization

     214,740        84,275               299,015   

Asset retirement obligation accretion

     26,947        2,824               29,771   

General and administrative expenses

     71,714        2,582               74,296   

Derivative gain

     (1,896                  (1,896
  

 

 

   

 

 

    

 

 

   

 

 

 

Total costs and expenses

     510,621        130,966               641,587   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

     187,278        142,182               329,460   

Earnings of affiliates

     92,533               (92,533      

Interest expense:

         

Incurred

     52,393                     52,393   

Capitalized

     (9,877                  (9,877

Loss on extinguishment of debt

     22,694                     22,694   

Other income

     84                     84   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax expense

     214,685        142,182         (92,533     264,334   

Income tax expense

     41,868        49,649               91,517   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 172,817      $ 92,533       $ (92,533   $ 172,817   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

Condensed Consolidating Statement of Income for the Twelve Months Ended December 31, 2010

 

     Parent
Company
    Guarantor
Subsidiaries (1)
     Eliminations     Consolidated
W&T
Offshore, Inc.
 
     (In thousands)  

Revenues

   $ 608,600      $ 97,183       $     $ 705,783   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating costs and expenses:

         

Lease operating expenses

     152,534        17,136               169,670   

Production taxes

     1,194                     1,194   

Gathering and transportation

     15,338        1,146               16,484   

Depreciation, depletion and amortization

     241,105        27,310               268,415   

Asset retirement obligation accretion

     25,122        563               25,685   

General and administrative expenses

     51,662        1,628               53,290   

Derivative loss

     4,256                     4,256   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total costs and expenses

     491,211        47,783               538,994   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

     117,389        49,400               166,789   

Earnings of affiliates

     32,110               (32,110      

Interest expense:

         

Incurred

     43,101                     43,101   

Capitalized

     (5,395                  (5,395

Other income

     710                     710   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax expense (benefit)

     112,503        49,400         (32,110     129,793   

Income tax expense (benefit)

     (5,389     17,290               11,901   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 117,892      $ 32,110       $ (32,110   $ 117,892   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Began operations on May 1, 2010.
Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Twelve Months Ended December 31, 2012

 

    Parent
Company
    Guarantor
Subsidiaries
    Eliminations     Consolidated
W&T
Offshore, Inc.
 
    (In thousands)  

Operating activities:

       

Net income

  $ 71,984      $ 66,195      $ (66,195   $ 71,984   

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation, depletion, amortization and accretion

    271,270        84,962              356,232   

Amortization of debt issuance costs and premium

    2,575                    2,575   

Share-based compensation

    12,398                    12,398   

Derivative loss

    13,954                    13,954   

Cash payments on derivative settlements

    (7,664                 (7,664

Deferred income taxes

    83,981        4,128              88,109   

Earnings of affiliates

    (66,195           66,195         

Changes in operating assets and liabilities:

       

Oil and natural gas receivables

    (2,597     3,415              818   

Joint interest and other receivables

    (31,399                 (31,399

Insurance receivables

    2,576                    2,576   

Income taxes

    (89,568     31,557              (58,011

Prepaid expenses and other assets

    7,442        (118,320     118,318        7,440   

Asset retirement obligations

    (112,199     (628           (112,827

Accounts payable and accrued liabilities

    40,530        (2,504            38,026   

Other liabilities

    119,244              (118,318     926   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    316,332        68,805              385,137   
 

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities:

       

Acquisition of property interest in oil and natural gas properties

    (205,550 )                  (205,550

Investment in oil and natural gas properties and equipment

    (410,508     (68,805           (479,313

Proceeds from sales of oil and natural gas properties and equipment

    30,453                    30,453   

Purchases of furniture, fixtures, misc. sales and other

    (3,031                 (3,031
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

    (588,636     (68,805            (657,441
 

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities:

       

Issuance of 8.50% Senior Notes

    318,000                    318,000   

Borrowings of long-term debt – revolving bank credit facility

    732,000                    732,000   

Repayments of long-term debt – revolving bank credit facility

    (679,000                 (679,000

Debt issuance costs

    (8,510                 (8,510

Dividends to shareholders

    (82,832                 (82,832

Other

    379                    379   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

    280,037                      280,037   
 

 

 

   

 

 

   

 

 

   

 

 

 

Increase in cash and cash equivalents

    7,733                    7,733   

Cash and cash equivalents, beginning of period

    4,512                    4,512   
 

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

  $ 12,245      $     $     $ 12,245   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

Condensed Consolidating Statement of Cash Flows for the Twelve Months Ended December 31, 2011

 

    Parent
Company
    Guarantor
Subsidiaries
    Eliminations     Consolidated
W&T
Offshore, Inc.
 
    (In thousands)  

Operating activities:

       

Net income

  $ 172,817      $ 92,533      $ (92,533   $ 172,817   

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation, depletion, amortization and accretion

    241,687        87,099              328,786   

Amortization of debt issuance costs

    2,010                      2,010   

Loss on extinguishment of debt

    22,694                      22,694   

Share-based compensation

    9,710                      9,710   

Derivative gain

    (1,896                   (1,896 )

Cash payments on derivative settlements

    (9,873                   (9,873

Deferred income taxes

    76,717        (14,882            61,835   

Earnings of affiliates

    (92,533            92,533          

Changes in operating assets and liabilities:

       

Oil and natural gas receivables

    (27,709     9,070               (18,639

Joint interest and other receivables

    375                      375   

Insurance receivables

    20,771                      20,771   

Income taxes

    (71,655     64,531               (7,124

Prepaid expenses and other assets

    (8,003     (228,020     228,214        (7,809

Asset retirement obligations

    (59,958                   (59,958

Accounts payable and accrued liabilities

    8,589        (514     (194     7,881   

Other liabilities

    227,918               (228,020     (102
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    511,661        9,817          521,478   
 

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities:

       

Acquisition of property interest in oil and natural gas properties

    (437,247 )                   (437,247

Investment in oil and natural gas properties and equipment

    (277,147     (4,632            (281,779

Investment in subsidiary

    5,185               (5,185 )       

Purchases of furniture, fixtures, misc. sales and other

    (3,645                   (3,645
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

    (712,854     (4,632     (5,185     (722,671
 

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities:

       

Issuance of 8.50% Senior Notes

    600,000                      600,000   

Repurchase of 8.25% Senior Notes

    (450,000                   (450,000

Borrowings of long-term debt – revolving bank credit facility

    623,000                      623,000   

Repayments of long-term debt – revolving bank credit facility

    (506,000                   (506,000

Repurchase premium and debt issuance costs

    (32,288                   (32,288

Dividends to shareholders

    (58,756                   (58,756

Other

    1,094                      1,094   

Investment from parent

           (5,185     5,185          
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

    177,050        (5,185     5,185        177,050   
 

 

 

   

 

 

   

 

 

   

 

 

 

Decrease in cash and cash equivalents

    (24,143                   (24,143

Cash and cash equivalents, beginning of period

    28,655                      28,655   
 

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

  $ 4,512      $      $      $ 4,512   
 

 

 

   

 

 

   

 

 

   

 

 

 

 

Condensed Consolidating Statement of Cash Flows for the Twelve Months Ended December 31, 2010

 

     Parent
Company
    Guarantor
Subsidiaries  (1)
    Eliminations     Consolidated
W&T
Offshore, Inc.
 
     (In thousands)  

Operating activities:

        

Net income

   $ 117,892      $ 32,110      $ (32,110   $ 117,892   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation, depletion, amortization and accretion

     266,227        27,873               294,100   

Amortization of debt issuance costs

     1,338                      1,338   

Share-based compensation

     5,533                      5,533   

Derivative loss

     4,256                      4,256   

Cash payments on derivative settlements

     874                      874   

Deferred income taxes

     (5,511     (2,755            (8,266

Earnings of affiliates

     (32,110            32,110          

Changes in operating assets and liabilities:

        

Oil and natural gas receivables

     4,556        (29,489            (24,933

Joint interest and other receivables

     25,897                      25,897   

Insurance receivables

     54,873                      54,873   

Income taxes

     84,023        20,044               104,067   

Prepaid expenses and other assets

     4,536        (47,160     47,160        4,536   

Asset retirement obligations

     (87,166                   (87,166

Accounts payable and accrued liabilities

     (35,278     3,393               (31,885

Other liabilities

     50,816               (47,160     3,656   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     460,756        4,016               464,772   
  

 

 

   

 

 

   

 

 

   

 

 

 

Investing activities:

        

Acquisition of property interest in oil and natural gas properties

            (236,944            (236,944

Investment in oil and natural gas properties and equipment

     (174,693     (4,016            (178,709

Proceeds from sales of oil and natural gas properties and equipment

     1,420                      1,420   

Investment in subsidiary

     (236,944            236,944          

Purchases of furniture, fixtures and other

     (760                   (760
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (410,977     (240,960     236,944        (414,993
  

 

 

   

 

 

   

 

 

   

 

 

 

Financing activities:

        

Borrowings of revolving bank credit facility

     627,500                      627,500   

Repayments of revolving bank credit facility

     (627,500                   (627,500

Dividends to shareholders

     (59,609                   (59,609

Other

     298                      298   

Investment from parent

            236,944        (236,944       
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (59,311     236,944        (236,944     (59,311
  

 

 

   

 

 

   

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (9,532                   (9,532

Cash and cash equivalents, beginning of period

     38,187                      38,187   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 28,655      $      $      $ 28,655   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Began operations on May 1, 2010.