Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information

v3.2.0.727
Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2015
Supplemental Guarantor Information [Abstract]  
Supplemental Guarantor Information

W&T OFFSHORE, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

 

12.  Supplemental Guarantor Information

Our payment obligations under the 8.50% Senior Notes, the 9.00% Term Loan and the Credit Agreement (see Note 5) 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 of the 8.50% Senior Notes 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 Sales provisions (as such terms are define in certain debt documents);

(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 Sales” 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 certain debt documents) 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.  Transfers of property were made from the Parent Company to the Guarantor Subsidiaries.  As these transfers were transactions between entities under common control, the prior period financial information has been 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 June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

5,671

 

 

$

 

 

$

 

 

$

5,671

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

23,109

 

 

 

28,848

 

 

 

 

 

 

51,957

 

Joint interest and other

 

114,021

 

 

 

 

 

 

(81,413

)

 

 

32,608

 

Total receivables

 

137,130

 

 

 

28,848

 

 

 

(81,413

)

 

 

84,565

 

Deferred income taxes

 

56,955

 

 

 

1,865

 

 

 

(52,000

)

 

 

6,820

 

Prepaid expenses and other assets

 

22,821

 

 

 

4,469

 

 

 

 

 

 

27,290

 

Total current assets

 

222,577

 

 

 

35,182

 

 

 

(133,413

)

 

 

124,346

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

6,064,146

 

 

 

2,143,019

 

 

 

 

 

 

8,207,165

 

Furniture, fixtures and other

 

23,981

 

 

 

 

 

 

 

 

 

23,981

 

Total property and equipment

 

6,088,127

 

 

 

2,143,019

 

 

 

 

 

 

8,231,146

 

Less accumulated depreciation, depletion and amortization

 

4,937,933

 

 

 

1,368,186

 

 

 

 

 

 

6,306,119

 

Net property and equipment

 

1,150,194

 

 

 

774,833

 

 

 

 

 

 

1,925,027

 

Restricted deposits for asset retirement obligations

 

15,538

 

 

 

 

 

 

 

 

 

15,538

 

Other assets

 

868,316

 

 

 

293,570

 

 

 

(1,141,820

)

 

 

20,066

 

Total assets

$

2,256,625

 

 

$

1,103,585

 

 

$

(1,275,233

)

 

$

2,084,977

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

130,386

 

 

$

4,779

 

 

$

 

 

$

135,165

 

Undistributed oil and natural gas proceeds

 

28,650

 

 

 

1,043

 

 

 

 

 

 

29,693

 

Asset retirement obligations

 

34,992

 

 

 

6,502

 

 

 

 

 

 

41,494

 

Accrued liabilities

 

13,543

 

 

 

80,990

 

 

 

(81,413

)

 

 

13,120

 

Total current liabilities

 

207,571

 

 

 

93,314

 

 

 

(81,413

)

 

 

219,472

 

Long-term debt, less current maturities

 

1,468,870

 

 

 

 

 

 

 

 

 

1,468,870

 

Asset retirement obligations, less current portion

 

216,706

 

 

 

131,867

 

 

 

 

 

 

348,573

 

Deferred income taxes

 

382

 

 

 

85,908

 

 

 

(52,000

)

 

 

34,290

 

Other liabilities

 

363,884

 

 

 

 

 

 

(349,324

)

 

 

14,560

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

420,028

 

 

 

704,885

 

 

 

(704,885

)

 

 

420,028

 

Retained earnings (deficit)

 

(396,650

)

 

 

87,611

 

 

 

(87,611

)

 

 

(396,650

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(788

)

 

 

792,496

 

 

 

(792,496

)

 

 

(788

)

Total liabilities and shareholders’ equity

$

2,256,625

 

 

$

1,103,585

 

 

$

(1,275,233

)

 

$

2,084,977

 

 

Condensed Consolidating Balance Sheet as of December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

23,666

 

 

$

 

 

$

 

 

$

23,666

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

41,820

 

 

 

25,422

 

 

 

 

 

 

67,242

 

Joint interest and other

 

142,885

 

 

 

 

 

 

(99,240

)

 

 

43,645

 

Total receivables

 

184,705

 

 

 

25,422

 

 

 

(99,240

)

 

 

110,887

 

Deferred income taxes

 

9,797

 

 

 

1,865

 

 

 

 

 

 

11,662

 

Prepaid expenses and other assets

 

28,728

 

 

 

7,619

 

 

 

 

 

 

36,347

 

Total current assets

 

246,896

 

 

 

34,906

 

 

 

(99,240

)

 

 

182,562

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

6,038,915

 

 

 

2,006,751

 

 

 

 

 

 

8,045,666

 

Furniture, fixtures and other

 

23,269

 

 

 

 

 

 

 

 

 

23,269

 

Total property and equipment

 

6,062,184

 

 

 

2,006,751

 

 

 

 

 

 

8,068,935

 

Less accumulated depreciation, depletion and amortization

 

4,442,899

 

 

 

1,132,179

 

 

 

 

 

 

5,575,078

 

Net property and equipment

 

1,619,285

 

 

 

874,572

 

 

 

 

 

 

2,493,857

 

Restricted deposits for asset retirement obligations

 

15,444

 

 

 

 

 

 

 

 

 

15,444

 

Other assets

 

974,049

 

 

 

357,992

 

 

 

(1,314,797

)

 

 

17,244

 

Total assets

$

2,855,674

 

 

$

1,267,470

 

 

$

(1,414,037

)

 

$

2,709,107

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

188,654

 

 

$

5,455

 

 

$

 

 

$

194,109

 

Undistributed oil and natural gas proceeds

 

36,130

 

 

 

879

 

 

 

 

 

 

37,009

 

Asset retirement obligations

 

30,711

 

 

 

5,292

 

 

 

 

 

 

36,003

 

Accrued liabilities

 

17,437

 

 

 

99,180

 

 

 

(99,240

)

 

 

17,377

 

Total current liabilities

 

272,932

 

 

 

110,806

 

 

 

(99,240

)

 

 

284,498

 

Long-term debt, less current maturities

 

1,360,057

 

 

 

 

 

 

 

 

 

1,360,057

 

Asset retirement obligations, less current portion

 

235,876

 

 

 

118,689

 

 

 

 

 

 

354,565

 

Deferred income taxes

 

59,616

 

 

 

127,372

 

 

 

 

 

 

186,988

 

Other liabilities

 

417,885

 

 

 

 

 

 

(404,194

)

 

 

13,691

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

414,580

 

 

 

703,440

 

 

 

(703,440

)

 

 

414,580

 

Retained earnings

 

118,894

 

 

 

207,163

 

 

 

(207,163

)

 

 

118,894

 

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity

 

509,308

 

 

 

910,603

 

 

 

(910,603

)

 

 

509,308

 

Total liabilities and shareholders’ equity

$

2,855,674

 

 

$

1,267,470

 

 

$

(1,414,037

)

 

$

2,709,107

 

 

 

 


Condensed Consolidating Statement of Operations for the Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

90,465

 

 

$

58,601

 

 

$

 

 

$

149,066

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

30,104

 

 

 

15,026

 

 

 

 

 

 

45,130

 

Production taxes

 

1,000

 

 

 

 

 

 

 

 

 

1,000

 

Gathering and transportation

 

2,769

 

 

 

2,024

 

 

 

 

 

 

4,793

 

Depreciation, depletion, amortization and accretion

 

58,023

 

 

 

45,319

 

 

 

 

 

 

103,342

 

Ceiling test write-down of oil and natural gas properties

 

181,300

 

 

 

71,472

 

 

 

 

 

 

252,772

 

General and administrative expenses

 

10,856

 

 

 

8,901

 

 

 

 

 

 

19,757

 

Derivative loss

 

1,078

 

 

 

 

 

 

 

 

 

1,078

 

Total costs and expenses

 

285,130

 

 

 

142,742

 

 

 

 

 

 

427,872

 

Operating loss

 

(194,665

)

 

 

(84,141

)

 

 

 

 

 

(278,806

)

Loss of affiliates

 

(54,548

)

 

 

 

 

 

54,548

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

25,322

 

 

 

794

 

 

 

 

 

 

26,116

 

Capitalized

 

(1,230

)

 

 

(794

)

 

 

 

 

 

(2,024

)

Debt issuance costs write-off and other, net

 

1,685

 

 

 

 

 

 

 

 

 

1,685

 

Loss before income tax benefit

 

(274,990

)

 

 

(84,141

)

 

 

54,548

 

 

 

(304,583

)

Income tax benefit

 

(14,541

)

 

 

(29,593

)

 

 

 

 

 

(44,134

)

Net loss

$

(260,449

)

 

$

(54,548

)

 

$

54,548

 

 

$

(260,449

)

 

 

Condensed Consolidating Statement of Operations for the Six Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

167,808

 

 

$

109,165

 

 

$

 

 

$

276,973

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

67,742

 

 

 

30,719

 

 

 

 

 

 

98,461

 

Production taxes

 

1,637

 

 

 

 

 

 

 

 

 

1,637

 

Gathering and transportation

 

5,334

 

 

 

4,283

 

 

 

 

 

 

9,617

 

Depreciation, depletion, amortization and accretion

 

129,374

 

 

 

99,435

 

 

 

 

 

 

228,809

 

Ceiling test write-down of oil and natural gas properties

 

371,995

 

 

 

141,167

 

 

 

 

 

 

513,162

 

General and administrative expenses

 

22,615

 

 

 

17,908

 

 

 

 

 

 

40,523

 

Derivative loss

 

1,078

 

 

 

 

 

 

 

 

 

1,078

 

Total costs and expenses

 

599,775

 

 

 

293,512

 

 

 

 

 

 

893,287

 

Operating loss

 

(431,967

)

 

 

(184,347

)

 

 

 

 

 

(616,314

)

Loss of affiliates

 

(119,552

)

 

 

 

 

 

119,552

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

47,554

 

 

 

1,508

 

 

 

 

 

 

49,062

 

Capitalized

 

(2,299

)

 

 

(1,508

)

 

 

 

 

 

(3,807

)

Debt issuance costs write-off and other, net

 

1,683

 

 

 

 

 

 

 

 

 

1,683

 

Loss before income tax benefit

 

(598,457

)

 

 

(184,347

)

 

 

119,552

 

 

 

(663,252

)

Income tax benefit

 

(82,913

)

 

 

(64,795

)

 

 

 

 

 

(147,708

)

Net loss

$

(515,544

)

 

$

(119,552

)

 

$

119,552

 

 

$

(515,544

)

 

 

 

Condensed Consolidating Statement of Operations for the Three Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

156,033

 

 

$

106,961

 

 

$

 

 

$

262,994

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

40,846

 

 

 

20,919

 

 

 

 

 

 

61,765

 

Production taxes

 

1,842

 

 

 

 

 

 

 

 

 

1,842

 

Gathering and transportation

 

2,232

 

 

 

1,753

 

 

 

 

 

 

3,985

 

Depreciation, depletion, amortization and accretion

 

68,921

 

 

 

59,315

 

 

 

 

 

 

128,236

 

General and administrative expenses

 

10,269

 

 

 

9,413

 

 

 

 

 

 

19,682

 

Derivative loss

 

13,079

 

 

 

 

 

 

 

 

 

13,079

 

Total costs and expenses

 

137,189

 

 

 

91,400

 

 

 

 

 

 

228,589

 

Operating income

 

18,844

 

 

 

15,561

 

 

 

 

 

 

34,405

 

Earnings of affiliates

 

10,252

 

 

 

 

 

 

(10,252

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

20,617

 

 

 

837

 

 

 

 

 

 

21,454

 

Capitalized

 

(1,322

)

 

 

(837

)

 

 

 

 

 

(2,159

)

Income before income tax expense

 

9,801

 

 

 

15,561

 

 

 

(10,252

)

 

 

15,110

 

Income tax expense (benefit)

 

(36

)

 

 

5,309

 

 

 

 

 

 

5,273

 

Net income

$

9,837

 

 

$

10,252

 

 

$

(10,252

)

 

$

9,837

 

 

 

Condensed Consolidating Statement of Operations for the Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

302,156

 

 

$

215,354

 

 

$

 

 

$

517,510

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

80,172

 

 

 

37,212

 

 

 

 

 

 

117,384

 

Production taxes

 

3,834

 

 

 

 

 

 

 

 

 

3,834

 

Gathering and transportation

 

5,580

 

 

 

3,701

 

 

 

 

 

 

9,281

 

Depreciation, depletion, amortization and accretion

 

132,117

 

 

 

119,425

 

 

 

 

 

 

251,542

 

General and administrative expenses

 

21,850

 

 

 

21,420

 

 

 

 

 

 

43,270

 

Derivative loss

 

20,571

 

 

 

 

 

 

 

 

 

20,571

 

Total costs and expenses

 

264,124

 

 

 

181,758

 

 

 

 

 

 

445,882

 

Operating income

 

38,032

 

 

 

33,596

 

 

 

 

 

 

71,628

 

Earnings of affiliates

 

21,940

 

 

 

 

 

 

(21,940

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

41,294

 

 

 

1,618

 

 

 

 

 

 

42,912

 

Capitalized

 

(2,613

)

 

 

(1,618

)

 

 

 

 

 

(4,231

)

Income before income tax expense

 

21,291

 

 

 

33,596

 

 

 

(21,940

)

 

 

32,947

 

Income tax expense (benefit)

 

265

 

 

 

11,656

 

 

 

 

 

 

11,921

 

Net income

$

21,026

 

 

$

21,940

 

 

$

(21,940

)

 

$

21,026

 

 

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(515,544

)

 

$

(119,552

)

 

$

119,552

 

 

$

(515,544

)

Adjustments to reconcile net loss to net cash provided by

      (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

129,374

 

 

 

99,435

 

 

 

 

 

 

228,809

 

Ceiling test write-down of oil and gas properties

 

371,995

 

 

 

141,167

 

 

 

 

 

 

513,162

 

Debt issuance costs write-off/amortization of debt items

 

2,432

 

 

 

 

 

 

 

 

 

2,432

 

Share-based compensation

 

5,708

 

 

 

 

 

 

 

 

 

5,708

 

Derivative loss

 

1,078

 

 

 

 

 

 

 

 

 

1,078

 

Deferred income taxes

 

(105,818

)

 

 

(41,890

)

 

 

 

 

 

(147,708

)

Loss of affiliates

 

119,552

 

 

 

 

 

 

(119,552

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

18,710

 

 

 

(3,425

)

 

 

 

 

 

15,285

 

Joint interest and other receivables

 

11,036

 

 

 

 

 

 

 

 

 

11,036

 

Income taxes

 

22,580

 

 

 

(22,905

)

 

 

 

 

 

(325

)

Prepaid expenses and other assets

 

(8,913

)

 

 

72,712

 

 

 

(54,870

)

 

 

8,929

 

Asset retirement obligation settlements

 

(21,146

)

 

 

(793

)

 

 

 

 

 

(21,939

)

Accounts payable, accrued liabilities  and other

 

(125,219

)

 

 

(513

)

 

 

54,870

 

 

 

(70,862

)

Net cash provided by (used in) operating activities

 

(94,175

)

 

 

124,236

 

 

 

 

 

 

30,061

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(25,313

)

 

 

(125,681

)

 

 

 

 

 

(150,994

)

Investment in subsidiary

 

(1,445

)

 

 

 

 

 

1,445

 

 

 

 

Purchases of furniture, fixtures and other

 

(709

)

 

 

 

 

 

 

 

 

(709

)

Net cash used in investing activities

 

(27,467

)

 

 

(125,681

)

 

 

1,445

 

 

 

(151,703

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

194,000

 

 

 

 

 

 

 

 

 

194,000

 

Repayments of long-term debt – revolving bank credit facility

 

(381,000

)

 

 

 

 

 

 

 

 

(381,000

)

Issuance of 9.00% Term Loan

 

297,000

 

 

 

 

 

 

 

 

 

297,000

 

Debt issuance costs

 

(6,407

)

 

 

 

 

 

 

 

 

(6,407

)

Other

 

54

 

 

 

 

 

 

 

 

 

54

 

Investment from parent

 

 

 

 

1,445

 

 

 

(1,445

)

 

 

 

Net cash provided by financing activities

 

103,647

 

 

 

1,445

 

 

 

(1,445

)

 

 

103,647

 

Decrease in cash and cash equivalents

 

(17,995

)

 

 

 

 

 

 

 

 

(17,995

)

Cash and cash equivalents, beginning of period

 

23,666

 

 

 

 

 

 

 

 

 

23,666

 

Cash and cash equivalents, end of period

$

5,671

 

 

$

 

 

$

 

 

$

5,671

 

 


 

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

21,026

 

 

$

21,940

 

 

$

(21,940

)

 

$

21,026

 

Adjustments to reconcile net income to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

132,117

 

 

 

119,425

 

 

 

 

 

 

251,542

 

Amortization of debt issuance costs and premium

 

366

 

 

 

 

 

 

 

 

 

366

 

Share-based compensation

 

7,644

 

 

 

 

 

 

 

 

 

7,644

 

Derivative loss

 

20,571

 

 

 

 

 

 

 

 

 

20,571

 

Cash payments on derivative settlements

 

(14,310

)

 

 

 

 

 

 

 

 

(14,310

)

Deferred income taxes

 

25,078

 

 

 

(13,157

)

 

 

 

 

 

11,921

 

Earnings of affiliates

 

(21,940

)

 

 

 

 

 

21,940

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

7,636

 

 

 

(5,301

)

 

 

 

 

 

2,335

 

Joint interest and other receivables

 

3,550

 

 

 

 

 

 

 

 

 

3,550

 

Income taxes

 

(21,896

)

 

 

24,814

 

 

 

 

 

 

2,918

 

Prepaid expenses and other assets

 

(123,770

)

 

 

(91,015

)

 

 

219,224

 

 

 

4,439

 

Asset retirement obligations

 

(18,583

)

 

 

(11,755

)

 

 

 

 

 

(30,338

)

Accounts payable, accrued liabilities  and other

 

203,344

 

 

 

5,266

 

 

 

(219,224

)

 

 

(10,614

)

Net cash provided by operating activities

 

220,833

 

 

 

50,217

 

 

 

 

 

 

271,050

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property interest in oil and natural gas properties

 

 

 

 

(53,363

)

 

 

 

 

 

(53,363

)

Investment in oil and natural gas properties and equipment

 

(157,128

)

 

 

(55,552

)

 

 

 

 

 

(212,680

)

Investment in subsidiary

 

(58,698

)

 

 

 

 

 

58,698

 

 

 

 

Purchases of furniture, fixtures and other

 

(1,715

)

 

 

 

 

 

 

 

 

(1,715

)

Net cash used in investing activities

 

(217,541

)

 

 

(108,915

)

 

 

58,698

 

 

 

(267,758

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

220,000

 

 

 

 

 

 

 

 

 

220,000

 

Repayments of long-term debt – revolving bank credit facility

 

(200,000

)

 

 

 

 

 

 

 

 

(200,000

)

Dividends to shareholders

 

(15,129

)

 

 

 

 

 

 

 

 

(15,129

)

Other

 

(116

)

 

 

 

 

 

 

 

 

(116

)

Investment from parent

 

 

 

 

58,698

 

 

 

(58,698

)

 

 

 

Net cash used in financing activities

 

4,755

 

 

 

58,698

 

 

 

(58,698

)

 

 

4,755

 

Increase in cash and cash equivalents

 

8,047

 

 

 

 

 

 

 

 

 

8,047

 

Cash and cash equivalents, beginning of period

 

15,800

 

 

 

 

 

 

 

 

 

15,800

 

Cash and cash equivalents, end of period

$

23,847

 

 

$

 

 

$

 

 

$

23,847