Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information

v3.8.0.1
Supplemental Guarantor Information
9 Months Ended
Sep. 30, 2017
Supplemental Guarantor Information [Abstract]  
Supplemental Guarantor Information

10.  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 to the ceiling test write-down recorded in 2016, the computation is performed for each subsidiary on a stand-alone basis and also for the consolidated Company.  Due to this methodology, consolidating adjustments are required to present the consolidated results appropriately.  

Condensed Consolidating Balance Sheet as of September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

106,164

 

 

$

 

 

$

 

 

$

106,164

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

4,866

 

 

 

34,299

 

 

 

 

 

 

39,165

 

Joint interest

 

21,877

 

 

 

 

 

 

 

 

 

21,877

 

Income taxes

 

120,402

 

 

 

 

 

 

(108,779

)

 

 

11,623

 

Total receivables

 

147,145

 

 

 

34,299

 

 

 

(108,779

)

 

 

72,665

 

Prepaid expenses and other assets

 

13,884

 

 

 

1,189

 

 

 

 

 

 

15,073

 

Total current assets

 

267,193

 

 

 

35,488

 

 

 

(108,779

)

 

 

193,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

402,385

 

 

 

156,172

 

 

 

(3,303

)

 

 

555,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits for asset retirement obligations

 

25,339

 

 

 

 

 

 

 

 

 

25,339

 

Income tax receivables

 

52,097

 

 

 

 

 

 

 

 

 

52,097

 

Other assets

 

493,965

 

 

 

441,133

 

 

 

(874,319

)

 

 

60,779

 

Total assets

$

1,240,979

 

 

$

632,793

 

 

$

(986,401

)

 

$

887,371

 

Liabilities and Shareholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

65,581

 

 

$

6,616

 

 

$

 

 

$

72,197

 

Undistributed oil and natural gas proceeds

 

18,582

 

 

 

1,502

 

 

 

 

 

 

20,084

 

Asset retirement obligations

 

27,613

 

 

 

1,843

 

 

 

 

 

 

29,456

 

Long-term debt

 

11,147

 

 

 

 

 

 

 

 

 

11,147

 

Accrued liabilities

 

26,572

 

 

 

108,757

 

 

 

(108,779

)

 

 

26,550

 

Total current liabilities

 

149,495

 

 

 

118,718

 

 

 

(108,779

)

 

 

159,434

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

873,733

 

 

 

 

 

 

 

 

 

873,733

 

Carrying value adjustments

 

108,884

 

 

 

 

 

 

 

 

 

108,884

 

Long term debt, less current portion - carrying value

 

982,617

 

 

 

 

 

 

 

 

 

982,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

148,468

 

 

 

127,092

 

 

 

 

 

 

275,560

 

Other liabilities

 

554,366

 

 

 

 

 

 

(487,335

)

 

 

67,031

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

545,422

 

 

 

704,885

 

 

 

(704,885

)

 

 

545,422

 

Retained earnings (deficit)

 

(1,115,223

)

 

 

(317,902

)

 

 

314,598

 

 

 

(1,118,527

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(593,967

)

 

 

386,983

 

 

 

(390,287

)

 

 

(597,271

)

Total liabilities and shareholders’ equity (deficit)

$

1,240,979

 

 

$

632,793

 

 

$

(986,401

)

 

$

887,371

 

 

Condensed Consolidating Balance Sheet as of December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

70,236

 

 

$

 

 

$

 

 

$

70,236

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

2,173

 

 

 

40,900

 

 

 

 

 

 

43,073

 

Joint interest

 

21,885

 

 

 

 

 

 

 

 

 

21,885

 

Insurance reimbursement

 

30,100

 

 

 

 

 

 

 

 

 

30,100

 

Income taxes

 

111,215

 

 

 

 

 

 

(99,272

)

 

 

11,943

 

Total receivables

 

165,373

 

 

 

40,900

 

 

 

(99,272

)

 

 

107,001

 

Prepaid expenses and other assets

 

12,448

 

 

 

2,056

 

 

 

 

 

 

14,504

 

Total current assets

 

248,057

 

 

 

42,956

 

 

 

(99,272

)

 

 

191,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

360,966

 

 

 

187,040

 

 

 

(953

)

 

 

547,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits for asset retirement obligations

 

27,371

 

 

 

 

 

 

 

 

 

27,371

 

Income tax receivables

 

52,097

 

 

 

 

 

 

 

 

 

52,097

 

Other assets

 

394,931

 

 

 

344,742

 

 

 

(728,209

)

 

 

11,464

 

Total assets

$

1,083,422

 

 

$

574,738

 

 

$

(828,434

)

 

$

829,726

 

Liabilities and Shareholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

74,306

 

 

$

6,733

 

 

$

 

 

$

81,039

 

Undistributed oil and natural gas proceeds

 

24,493

 

 

 

1,761

 

 

 

 

 

 

26,254

 

Asset retirement obligations

 

62,261

 

 

 

16,003

 

 

 

 

 

 

78,264

 

Long-term debt

 

8,272

 

 

 

 

 

 

 

 

 

8,272

 

Accrued liabilities

 

9,293

 

 

 

99,179

 

 

 

(99,272

)

 

 

9,200

 

Total current liabilities

 

178,625

 

 

 

123,676

 

 

 

(99,272

)

 

 

203,029

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

873,733

 

 

 

 

 

 

 

 

 

873,733

 

Carrying value adjustments

 

138,722

 

 

 

 

 

 

 

 

 

138,722

 

Long term debt, less current portion - carrying value

 

1,012,455

 

 

 

 

 

 

 

 

 

1,012,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

142,376

 

 

 

113,798

 

 

 

 

 

 

256,174

 

Other liabilities

 

408,050

 

 

 

 

 

 

(390,945

)

 

 

17,105

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

539,973

 

 

 

704,885

 

 

 

(704,885

)

 

 

539,973

 

Retained earnings (deficit)

 

(1,173,891

)

 

 

(367,621

)

 

 

366,668

 

 

 

(1,174,844

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ deficit

 

(658,084

)

 

 

337,264

 

 

 

(338,217

)

 

 

(659,037

)

Total liabilities and shareholders’ deficit

$

1,083,422

 

 

$

574,738

 

 

$

(828,434

)

 

$

829,726

 


 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

51,981

 

 

$

58,300

 

 

$

 

 

$

110,281

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

18,796

 

 

 

16,338

 

 

 

 

 

 

35,134

 

Production taxes

 

340

 

 

 

 

 

 

 

 

 

340

 

Gathering and transportation

 

1,804

 

 

 

2,304

 

 

 

 

 

 

4,108

 

Depreciation, depletion, amortization and accretion

 

18,804

 

 

 

16,855

 

 

 

830

 

 

 

36,489

 

General and administrative expenses

 

7,131

 

 

 

8,500

 

 

 

 

 

 

15,631

 

Derivative gain

 

2,879

 

 

 

 

 

 

 

 

 

2,879

 

Total costs and expenses

 

49,754

 

 

 

43,997

 

 

 

830

 

 

 

94,581

 

Operating income

 

2,227

 

 

 

14,303

 

 

 

(830

)

 

 

15,700

 

Earnings of affiliates

 

13,251

 

 

 

 

 

 

(13,251

)

 

 

 

Interest expense incurred

 

11,554

 

 

 

 

 

 

 

 

 

11,554

 

Gain on exchange of debt

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

(41

)

 

 

 

 

 

 

 

 

(41

)

Income before income tax expense

 

3,965

 

 

 

14,303

 

 

 

(14,081

)

 

 

4,187

 

Income tax expense

 

4,432

 

 

 

1,052

 

 

 

 

 

 

5,484

 

Net income (loss)

$

(467

)

 

$

13,251

 

 

$

(14,081

)

 

$

(1,297

)

 

 


 

Condensed Consolidating Statement of Operations for the Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

163,105

 

 

$

194,892

 

 

$

 

 

$

357,997

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

59,823

 

 

 

46,994

 

 

 

 

 

 

106,817

 

Production taxes

 

1,304

 

 

 

 

 

 

 

 

 

1,304

 

Gathering and transportation

 

6,948

 

 

 

8,687

 

 

 

 

 

 

15,635

 

Depreciation, depletion, amortization and accretion

 

59,391

 

 

 

55,103

 

 

 

2,349

 

 

 

116,843

 

General and administrative expenses

 

20,569

 

 

 

24,810

 

 

 

 

 

 

45,379

 

Derivative gain

 

(4,765

)

 

 

 

 

 

 

 

 

(4,765

)

Total costs and expenses

 

143,270

 

 

 

135,594

 

 

 

2,349

 

 

 

281,213

 

Operating income

 

19,835

 

 

 

59,298

 

 

 

(2,349

)

 

 

76,784

 

Earnings of affiliates

 

49,719

 

 

 

 

 

 

(49,719

)

 

 

 

Interest expense incurred

 

34,284

 

 

 

 

 

 

 

 

 

34,284

 

Gain on exchange of debt

 

7,811

 

 

 

 

 

 

 

 

 

7,811

 

Other expense, net

 

5,073

 

 

 

 

 

 

 

 

 

5,073

 

Income before income tax expense (benefit)

 

38,008

 

 

 

59,298

 

 

 

(52,068

)

 

 

45,238

 

Income tax expense (benefit)

 

(20,658

)

 

 

9,579

 

 

 

 

 

 

(11,079

)

Net income

$

58,666

 

 

$

49,719

 

 

$

(52,068

)

 

$

56,317

 

 


 

Condensed Consolidating Statement of Operations for the Three Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

44,585

 

 

$

62,818

 

 

$

 

 

$

107,403

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

22,624

 

 

 

14,896

 

 

 

 

 

 

37,520

 

Production taxes

 

482

 

 

 

 

 

 

 

 

 

482

 

Gathering and transportation

 

2,103

 

 

 

3,058

 

 

 

 

 

 

5,161

 

Depreciation, depletion, amortization and accretion

 

21,959

 

 

 

29,861

 

 

 

(320

)

 

 

51,500

 

Ceiling test write-down of oil and natural gas

   properties

 

28,305

 

 

 

25,317

 

 

 

4,290

 

 

 

57,912

 

General and administrative expenses

 

5,417

 

 

 

7,275

 

 

 

 

 

 

12,692

 

Derivative loss

 

412

 

 

 

 

 

 

 

 

 

412

 

Total costs and expenses

 

81,302

 

 

 

80,407

 

 

 

3,970

 

 

 

165,679

 

Operating loss

 

(36,717

)

 

 

(17,589

)

 

 

(3,970

)

 

 

(58,276

)

Loss of affiliates

 

(16,925

)

 

 

 

 

 

16,925

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

23,666

 

 

 

27

 

 

 

 

 

 

23,693

 

Capitalized

 

(48

)

 

 

(27

)

 

 

 

 

 

(75

)

Gain on exchange of debt

 

123,960

 

 

 

 

 

 

 

 

 

123,960

 

Other expense, net

 

(73

)

 

 

 

 

 

 

 

 

(73

)

Loss before income tax benefit

 

46,773

 

 

 

(17,589

)

 

 

12,955

 

 

 

42,139

 

Income tax benefit

 

(3,125

)

 

 

(664

)

 

 

 

 

 

(3,789

)

Net income (loss)

$

49,898

 

 

$

(16,925

)

 

$

12,955

 

 

$

45,928

 

 


Condensed Consolidating Statement of Operations for the Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

119,011

 

 

$

165,762

 

 

$

 

 

$

284,773

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

66,823

 

 

 

51,788

 

 

 

 

 

 

118,611

 

Production taxes

 

1,378

 

 

 

 

 

 

 

 

 

1,378

 

Gathering and transportation

 

6,125

 

 

 

10,526

 

 

 

 

 

 

16,651

 

Depreciation, depletion, amortization and accretion

 

65,230

 

 

 

99,956

 

 

 

7,540

 

 

 

172,726

 

Ceiling test write-down of oil and natural gas

   properties

 

28,305

 

 

 

110,709

 

 

 

140,049

 

 

 

279,063

 

General and administrative expenses

 

19,390

 

 

 

25,980

 

 

 

 

 

 

45,370

 

Derivative loss

 

2,861

 

 

 

 

 

 

 

 

 

2,861

 

Total costs and expenses

 

190,112

 

 

 

298,959

 

 

 

147,589

 

 

 

636,660

 

Operating loss

 

(71,101

)

 

 

(133,197

)

 

 

(147,589

)

 

 

(351,887

)

Loss of affiliates

 

(130,719

)

 

 

 

 

 

130,719

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

81,096

 

 

 

184

 

 

 

 

 

 

81,280

 

Capitalized

 

(336

)

 

 

(184

)

 

 

 

 

 

(520

)

Gain on exchange of debt

 

123,960

 

 

 

 

 

 

 

 

 

123,960

 

Other expense, net

 

1,209

 

 

 

 

 

 

 

 

 

1,209

 

Loss before income tax benefit

 

(159,829

)

 

 

(133,197

)

 

 

(16,870

)

 

 

(309,896

)

Income tax benefit

 

(41,915

)

 

 

(2,478

)

 

 

 

 

 

(44,393

)

Net loss

$

(117,914

)

 

$

(130,719

)

 

$

(16,870

)

 

$

(265,503

)


Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

58,666

 

 

$

49,719

 

 

$

(52,068

)

 

$

56,317

 

Adjustments to reconcile net income to net cash

  provided by  operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

59,391

 

 

 

55,103

 

 

 

2,349

 

 

 

116,843

 

Gain on exchange of debt

 

(7,811

)

 

 

 

 

 

 

 

 

(7,811

)

Amortization of debt items

 

1,271

 

 

 

 

 

 

 

 

 

1,271

 

Share-based compensation

 

5,449

 

 

 

 

 

 

 

 

 

5,449

 

Derivative gain

 

(4,765

)

 

 

 

 

 

 

 

 

(4,765

)

Cash receipts on derivative settlements, net

 

3,924

 

 

 

 

 

 

 

 

 

3,924

 

Deferred income taxes

 

321

 

 

 

 

 

 

 

 

 

321

 

Earnings of affiliates

 

(49,719

)

 

 

 

 

 

49,719

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

(2,694

)

 

 

6,600

 

 

 

 

 

 

3,906

 

Joint interest receivables

 

8

 

 

 

 

 

 

 

 

 

8

 

Insurance reimbursements

 

31,740

 

 

 

 

 

 

 

 

 

31,740

 

Income taxes

 

(9,259

)

 

 

9,579

 

 

 

 

 

 

320

 

Prepaid expenses and other assets

 

1,326

 

 

 

(95,523

)

 

 

96,391

 

 

 

2,194

 

Escrow deposit - Apache lawsuit

 

(49,500

)

 

 

 

 

 

 

 

 

(49,500

)

Asset retirement obligation settlements

 

(41,381

)

 

 

(14,845

)

 

 

 

 

 

(56,226

)

Accounts payable, accrued liabilities and other

 

126,601

 

 

 

(3,881

)

 

 

(96,391

)

 

 

26,329

 

Net cash provided by operating activities

 

123,568

 

 

 

6,752

 

 

 

 

 

 

130,320

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(68,831

)

 

 

(10,257

)

 

 

 

 

 

(79,088

)

Changes in operating assets and liabilities associated with

   investing activities

 

2,174

 

 

 

3,505

 

 

 

 

 

 

5,679

 

Purchases of furniture, fixtures and other

 

(905

)

 

 

 

 

 

 

 

 

(905

)

Net cash used in investing activities

 

(67,562

)

 

 

(6,752

)

 

 

 

 

 

(74,314

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of interest on 1.5 Lien Term Loan

 

(6,170

)

 

 

 

 

 

 

 

 

(6,170

)

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

)

Debt exchange costs

 

(421

)

 

 

 

 

 

 

 

 

(421

)

Other

 

49

 

 

 

 

 

 

 

 

 

49

 

Net cash used in financing activities

 

(20,078

)

 

 

 

 

 

 

 

 

(20,078

)

Increase in cash and cash equivalents

 

35,928

 

 

 

 

 

 

 

 

 

35,928

 

Cash and cash equivalents, beginning of period

 

70,236

 

 

 

 

 

 

 

 

 

70,236

 

Cash and cash equivalents, end of period

$

106,164

 

 

$

 

 

$

 

 

$

106,164

 

 


 

Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(117,914

)

 

$

(130,719

)

 

$

(16,870

)

 

$

(265,503

)

Adjustments to reconcile net loss to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

65,230

 

 

 

99,956

 

 

 

7,540

 

 

 

172,726

 

Ceiling test write-down of oil and natural gas properties

 

28,305

 

 

 

110,709

 

 

 

140,049

 

 

 

279,063

 

Gain on exchange of debt

 

(123,960

)

 

 

 

 

 

 

 

 

(123,960

)

Debt issuance costs write-off/ amortization of debt items

 

2,135

 

 

 

 

 

 

 

 

 

2,135

 

Share-based compensation

 

7,642

 

 

 

 

 

 

 

 

 

7,642

 

Derivative gain

 

2,861

 

 

 

 

 

 

 

 

 

2,861

 

Cash receipts on derivative settlements

 

4,746

 

 

 

 

 

 

 

 

 

4,746

 

Deferred income taxes

 

17,962

 

 

 

(2,478

)

 

 

 

 

 

15,484

 

Loss of affiliates

 

130,719

 

 

 

 

 

 

(130,719

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

4,335

 

 

 

(4,041

)

 

 

 

 

 

294

 

Joint interest receivables

 

4,281

 

 

 

 

 

 

 

 

 

4,281

 

Income taxes

 

(52,392

)

 

 

 

 

 

 

 

 

(52,392

)

Prepaid expenses and other assets

 

(14,535

)

 

 

(46,758

)

 

 

45,165

 

 

 

(16,128

)

Asset retirement obligations

 

(37,925

)

 

 

(18,242

)

 

 

 

 

 

(56,167

)

Accounts payable, accrued liabilities and other

 

23,584

 

 

 

37,331

 

 

 

(45,165

)

 

 

15,750

 

Net cash provided by (used in) operating activities

 

(54,926

)

 

 

45,758

 

 

 

 

 

 

(9,168

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(17,473

)

 

 

(6,589

)

 

 

 

 

 

(24,062

)

Changes in operating assets and liabilities associated with

   investing activities

 

2,269

 

 

 

(39,669

)

 

 

 

 

 

(37,400

)

Proceeds from sales of assets

 

1,000

 

 

 

500

 

 

 

 

 

 

1,500

 

Purchases of furniture, fixtures and other

 

(96

)

 

 

 

 

 

 

 

 

(96

)

Net cash used in investing activities

 

(14,300

)

 

 

(45,758

)

 

 

 

 

 

(60,058

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of long-term debt – revolving bank credit facility

 

340,000

 

 

 

 

 

 

 

 

 

340,000

 

Repayments of long-term debt – revolving bank credit facility

 

(340,000

)

 

 

 

 

 

 

 

 

(340,000

)

Issuance of 1.5 Lien Term Loan

 

75,000

 

 

 

 

 

 

 

 

 

75,000

 

Debt exchange costs

 

(17,920

)

 

 

 

 

 

 

 

 

(17,920

)

Other

 

83

 

 

 

 

 

 

 

 

 

83

 

Net cash provided by financing activities

 

57,163

 

 

 

 

 

 

 

 

 

57,163

 

Decrease in cash and cash equivalents

 

(12,063

)

 

 

 

 

 

 

 

 

(12,063

)

Cash and cash equivalents, beginning of period

 

85,414

 

 

 

 

 

 

 

 

 

85,414

 

Cash and cash equivalents, end of period

$

73,351

 

 

$

 

 

$

 

 

$

73,351