Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information (Tables)

v3.8.0.1
Supplemental Guarantor Information (Tables)
3 Months Ended
Mar. 31, 2018
Supplemental Guarantor Information [Abstract]  
Condensed Consolidating Balance Sheet

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 a result of the JV Drilling Program, we recorded proportional consolidation adjustments, which are not considered a guarantor asset under our debt agreements and, accordingly, are reported as non-guarantor adjustments in the following tables.  Due to the methodology of recording the ceiling-test write down in prior periods, consolidating adjustments are required to present the consolidated results appropriately.  

Condensed Consolidating Balance Sheet as of March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

130,711

 

 

$

 

 

$

 

 

$

 

 

$

130,711

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

3,842

 

 

 

41,100

 

 

 

 

 

 

 

 

 

44,942

 

Joint interest

 

17,835

 

 

 

 

 

 

 

 

 

 

 

 

17,835

 

Income taxes

 

186,134

 

 

 

 

 

 

 

 

 

(121,031

)

 

 

65,103

 

Total receivables

 

207,811

 

 

 

41,100

 

 

 

 

 

 

(121,031

)

 

 

127,880

 

Prepaid expenses and other assets

 

14,592

 

 

 

3,206

 

 

 

2,399

 

 

 

 

 

 

20,197

 

Total current assets

 

353,114

 

 

 

44,306

 

 

 

2,399

 

 

 

(121,031

)

 

 

278,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

406,308

 

 

 

128,745

 

 

 

44,947

 

 

 

(6,648

)

 

 

573,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits for asset retirement obligations

 

25,622

 

 

 

 

 

 

 

 

 

 

 

 

25,622

 

Other assets

 

577,871

 

 

 

503,839

 

 

 

(46,378

)

 

 

(970,918

)

 

 

64,414

 

Total assets

$

1,362,915

 

 

$

676,890

 

 

$

968

 

 

$

(1,098,597

)

 

$

942,176

 

Liabilities and Shareholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

70,997

 

 

$

5,477

 

 

$

970

 

 

$

 

 

$

77,444

 

Undistributed oil and natural gas proceeds

 

20,598

 

 

 

1,675

 

 

 

 

 

 

 

 

 

22,273

 

Asset retirement obligations

 

23,635

 

 

 

2,113

 

 

 

 

 

 

 

 

 

25,748

 

Long-term debt

 

22,858

 

 

 

 

 

 

 

 

 

 

 

 

22,858

 

Accrued liabilities

 

23,437

 

 

 

120,887

 

 

 

 

 

 

(121,031

)

 

 

23,293

 

Total current liabilities

 

161,525

 

 

 

130,152

 

 

 

970

 

 

 

(121,031

)

 

 

171,616

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

889,790

 

 

 

 

 

 

 

 

 

 

 

 

889,790

 

Carrying value adjustments

 

77,691

 

 

 

 

 

 

 

 

 

 

 

 

77,691

 

Long term debt, less current portion - carrying value

 

967,481

 

 

 

 

 

 

 

 

 

 

 

 

967,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

154,861

 

 

 

125,862

 

 

 

12

 

 

 

 

 

 

280,735

 

Other liabilities

 

617,034

 

 

 

 

 

 

 

 

 

(550,041

)

 

 

66,993

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

547,039

 

 

 

704,885

 

 

 

 

 

 

(704,885

)

 

 

547,039

 

Retained earnings (deficit)

 

(1,060,859

)

 

 

(284,009

)

 

 

(14

)

 

 

277,360

 

 

 

(1,067,522

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity (deficit)

 

(537,986

)

 

 

420,876

 

 

 

(14

)

 

 

(427,525

)

 

 

(544,649

)

Total liabilities and shareholders’ equity (deficit)

$

1,362,915

 

 

$

676,890

 

 

$

968

 

 

$

(1,098,597

)

 

$

942,176

 

 

Condensed Consolidating Balance Sheet as of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

99,058

 

 

$

 

 

$

 

 

$

99,058

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

5,665

 

 

 

39,778

 

 

 

 

 

 

45,443

 

Joint interest

 

19,754

 

 

 

 

 

 

 

 

 

19,754

 

Income taxes

 

128,835

 

 

 

 

 

 

(115,829

)

 

 

13,006

 

Total receivables

 

154,254

 

 

 

39,778

 

 

 

(115,829

)

 

 

78,203

 

Prepaid expenses and other assets

 

11,154

 

 

 

2,265

 

 

 

 

 

 

13,419

 

Total current assets

 

264,466

 

 

 

42,043

 

 

 

(115,829

)

 

 

190,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and other, net

 

430,354

 

 

 

152,464

 

 

 

(3,802

)

 

 

579,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits for asset retirement obligations

 

25,394

 

 

 

 

 

 

 

 

 

25,394

 

Income taxes receivable

 

52,097

 

 

 

 

 

 

 

 

 

52,097

 

Other assets

 

505,304

 

 

 

453,306

 

 

 

(898,217

)

 

 

60,393

 

Total assets

$

1,277,615

 

 

$

647,813

 

 

$

(1,017,848

)

 

$

907,580

 

Liabilities and Shareholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

76,703

 

 

$

6,962

 

 

$

 

 

$

83,665

 

Undistributed oil and natural gas proceeds

 

18,762

 

 

 

1,367

 

 

 

 

 

 

20,129

 

Asset retirement obligations

 

22,488

 

 

 

1,125

 

 

 

 

 

 

23,613

 

Long-term debt

 

22,925

 

 

 

 

 

 

 

 

 

22,925

 

Accrued liabilities

 

18,058

 

 

 

115,701

 

 

 

(115,829

)

 

 

17,930

 

Total current liabilities

 

158,936

 

 

 

125,155

 

 

 

(115,829

)

 

 

168,262

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

889,790

 

 

 

 

 

 

 

 

 

889,790

 

Carrying value adjustments

 

79,337

 

 

 

 

 

 

 

 

 

79,337

 

Long term debt, less current portion - carrying value

 

969,127

 

 

 

 

 

 

 

 

 

969,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations, less current portion

 

152,883

 

 

 

123,950

 

 

 

 

 

 

276,833

 

Other liabilities

 

566,375

 

 

 

 

 

 

(499,509

)

 

 

66,866

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

545,820

 

 

 

704,885

 

 

 

(704,885

)

 

 

545,820

 

Retained earnings (deficit)

 

(1,091,360

)

 

 

(306,177

)

 

 

302,375

 

 

 

(1,095,162

)

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ deficit

 

(569,706

)

 

 

398,708

 

 

 

(402,510

)

 

 

(573,508

)

Total liabilities and shareholders’ deficit

$

1,277,615

 

 

$

647,813

 

 

$

(1,017,848

)

 

$

907,580

 


 

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

63,786

 

 

$

70,427

 

 

$

 

 

$

 

 

$

134,213

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

19,760

 

 

 

17,083

 

 

 

 

 

 

 

 

 

36,843

 

Production taxes

 

455

 

 

 

 

 

 

 

 

 

 

 

 

455

 

Gathering and transportation

 

2,703

 

 

 

2,354

 

 

 

 

 

 

 

 

 

5,057

 

Depreciation, depletion, amortization

   and accretion

 

19,420

 

 

 

15,814

 

 

 

 

 

 

2,847

 

 

 

38,081

 

General and administrative expenses

 

7,203

 

 

 

7,824

 

 

 

11

 

 

 

 

 

 

15,038

 

Total costs and expenses

 

49,541

 

 

 

43,075

 

 

 

11

 

 

 

2,847

 

 

 

95,474

 

Operating income

 

14,245

 

 

 

27,352

 

 

 

(11

)

 

 

(2,847

)

 

 

38,739

 

Earnings of affiliates

 

22,167

 

 

 

 

 

 

 

 

 

(22,167

)

 

 

 

Interest expense incurred

 

11,323

 

 

 

 

 

 

 

 

 

 

 

 

11,323

 

Other (income) expense, net

 

(336

)

 

 

 

 

 

3

 

 

 

 

 

 

(333

)

Income before income tax

   expense (benefit)

 

25,425

 

 

 

27,352

 

 

 

(14

)

 

 

(25,014

)

 

 

27,749

 

Income tax expense (benefit)

 

(5,076

)

 

 

5,185

 

 

 

 

 

 

 

 

 

109

 

Net income

$

30,501

 

 

$

22,167

 

 

$

(14

)

 

$

(25,014

)

 

$

27,640

 

 

Condensed Consolidating Statement of Operations for the Three Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

53,707

 

 

$

70,686

 

 

$

 

 

$

124,393

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

23,702

 

 

 

16,462

 

 

 

 

 

 

40,164

 

Production taxes

 

515

 

 

 

 

 

 

 

 

 

515

 

Gathering and transportation

 

2,566

 

 

 

3,643

 

 

 

 

 

 

6,209

 

Depreciation, depletion, amortization and accretion

 

19,154

 

 

 

20,105

 

 

 

731

 

 

 

39,990

 

General and administrative expenses

 

5,776

 

 

 

7,498

 

 

 

 

 

 

13,274

 

Derivative gain

 

(3,955

)

 

 

 

 

 

 

 

 

(3,955

)

Total costs and expenses

 

47,758

 

 

 

47,708

 

 

 

731

 

 

 

96,197

 

Operating income

 

5,949

 

 

 

22,978

 

 

 

(731

)

 

 

28,196

 

Earnings of affiliates

 

17,527

 

 

 

 

 

 

(17,527

)

 

 

 

Interest expense incurred

 

11,294

 

 

 

 

 

 

 

 

 

11,294

 

Other expense, net

 

191

 

 

 

 

 

 

 

 

 

191

 

Income before income tax expense (benefit)

 

11,991

 

 

 

22,978

 

 

 

(18,258

)

 

 

16,711

 

Income tax expense (benefit)

 

(13,039

)

 

 

5,451

 

 

 

 

 

 

(7,588

)

Net income

$

25,030

 

 

$

17,527

 

 

$

(18,258

)

 

$

24,299

 

 

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Adjustments

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

30,501

 

 

$

22,167

 

 

$

(14

)

 

$

(25,014

)

 

$

27,640

 

Adjustments to reconcile net income to net cash

  provided by  operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

19,420

 

 

 

15,814

 

 

 

 

 

 

2,847

 

 

 

38,081

 

Amortization of debt items

 

466

 

 

 

 

 

 

 

 

 

 

 

 

466

 

Share-based compensation

 

1,219

 

 

 

 

 

 

 

 

 

 

 

 

1,219

 

Deferred income taxes

 

109

 

 

 

 

 

 

 

 

 

 

 

 

109

 

Earnings of affiliates

 

(22,167

)

 

 

 

 

 

 

 

 

22,167

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

1,823

 

 

 

(1,322

)

 

 

 

 

 

 

 

 

501

 

Joint interest receivables

 

1,919

 

 

 

 

 

 

 

 

 

 

 

 

1,919

 

Income taxes

 

(5,186

)

 

 

5,186

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

25,275

 

 

 

(31,783

)

 

 

1,991

 

 

 

(1,874

)

 

 

(6,391

)

Asset retirement obligation settlements

 

(5,633

)

 

 

(1,389

)

 

 

 

 

 

 

 

 

(7,022

)

Cash advances from JV partners

 

13,129

 

 

 

6,018

 

 

 

 

 

 

 

 

 

19,147

 

Accounts payable, accrued liabilities and other

 

2,403

 

 

 

(4,965

)

 

 

-

 

 

 

1,874

 

 

 

(688

)

Net cash provided by operating activities

 

63,278

 

 

 

9,726

 

 

 

1,977

 

 

 

 

 

 

74,981

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(10,674

)

 

 

(7,496

)

 

 

(2,947

)

 

 

 

 

 

(21,117

)

Changes in operating assets and liabilities associated with

   investing activities

 

(15,894

)

 

 

(2,230

)

 

 

970

 

 

 

 

 

 

(17,154

)

Deposit for acquisition

 

(3,000

)

 

 

 

 

 

 

 

 

 

 

 

(3,000

)

Net cash used in investing activities

 

(29,568

)

 

 

(9,726

)

 

 

(1,977

)

 

 

 

 

 

(41,271

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of interest on 1.5 Lien Term Loan

 

(2,057

)

 

 

 

 

 

 

 

 

 

 

 

(2,057

)

Net cash used in financing activities

 

(2,057

)

 

 

 

 

 

 

 

 

 

 

 

(2,057

)

Increase in cash and cash equivalents

 

31,653

 

 

 

 

 

 

 

 

 

 

 

 

31,653

 

Cash and cash equivalents, beginning of period

 

99,058

 

 

 

 

 

 

 

 

 

 

 

 

99,058

 

Cash and cash equivalents, end of period

$

130,711

 

 

$

 

 

$

 

 

$

 

 

$

130,711

 

 

Condensed Consolidating Statement of Cash Flows for the Three Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W&T

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

Offshore,

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

25,030

 

 

$

17,527

 

 

$

(18,258

)

 

$

24,299

 

Adjustments to reconcile net loss to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

19,154

 

 

 

20,105

 

 

 

731

 

 

 

39,990

 

Amortization of debt items

 

412

 

 

 

 

 

 

 

 

 

412

 

Share-based compensation

 

1,928

 

 

 

 

 

 

 

 

 

1,928

 

Derivative gain

 

(3,955

)

 

 

 

 

 

 

 

 

(3,955

)

Cash receipts on derivative settlements

 

713

 

 

 

 

 

 

 

 

 

713

 

Deferred income taxes

 

105

 

 

 

 

 

 

 

 

 

105

 

Earnings of affiliates

 

(17,527

)

 

 

 

 

 

17,527

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

(2,004

)

 

 

122

 

 

 

 

 

 

(1,882

)

Joint interest receivables

 

5,042

 

 

 

 

 

 

 

 

 

5,042

 

Insurance reimbursements

 

30,100

 

 

 

 

 

 

 

 

 

30,100

 

Income taxes

 

(5,451

)

 

 

5,451

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

(6,927

)

 

 

(42,395

)

 

 

41,350

 

 

 

(7,972

)

Asset retirement obligations

 

(12,940

)

 

 

(1,559

)

 

 

 

 

 

(14,499

)

Cash advances from JV partners

 

(2,531

)

 

 

 

 

 

 

 

 

(2,531

)

Accounts payable, accrued liabilities and other

 

49,295

 

 

 

1,488

 

 

 

(41,350

)

 

 

9,433

 

Net cash provided by operating activities

 

80,444

 

 

 

739

 

 

 

 

 

 

81,183

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in oil and natural gas properties and equipment

 

(23,593

)

 

 

255

 

 

 

 

 

 

(23,338

)

Changes in operating assets and liabilities associated with

   investing activities

 

2,162

 

 

 

(994

)

 

 

 

 

 

1,168

 

Purchases of furniture, fixtures and other

 

(853

)

 

 

 

 

 

 

 

 

(853

)

Net cash used in investing activities

 

(22,284

)

 

 

(739

)

 

 

 

 

 

(23,023

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of interest on 1.5 Lien Term Loan

 

(2,056

)

 

 

 

 

 

 

 

 

(2,056

)

Other

 

(245

)

 

 

 

 

 

 

 

 

(245

)

Net cash provided by financing activities

 

(2,301

)

 

 

 

 

 

 

 

 

(2,301

)

Increase in cash, cash equivalents and restricted cash

 

55,859

 

 

 

 

 

 

 

 

 

55,859

 

Cash and cash equivalents, beginning of period

 

70,236

 

 

 

 

 

 

 

 

 

70,236

 

Cash and cash equivalents, end of period

$

126,095

 

 

$

 

 

$

 

 

$

126,095