Quarterly report pursuant to Section 13 or 15(d)

Business Acquisition Pro Forma Information Incremental Items (Detail)

v2.4.0.8
Business Acquisition Pro Forma Information Incremental Items (Detail) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Business Acquisition [Line Items]    
Revenues $ 254,516 $ 259,222
Lease operating expenses 55,617 59,341
DD&A 123,306 108,872
Interest expense 21,460 21,234
Capitalized interest 2,072 2,433
Income tax expense 6,648 14,902
Callon Properties
    
Business Acquisition [Line Items]    
Revenues 8,700  
Lease operating expenses 900  
DD&A 3,500  
Income tax expense 1,500  
Callon Properties | Pro Forma
    
Business Acquisition [Line Items]    
Revenues   11,353 [1]
Lease operating expenses   2,206 [1]
DD&A   4,205 [2]
Interest expense   411 [3]
Capitalized interest   (84) [4]
Income tax expense   $ 1,615 [5]
[1] Revenues and direct operating expenses for the Callon Properties were derived from the historical financial records of Callon.
[2] DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon Properties’ costs, reserves and production into our full cost pool in order to compute such amounts. The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation. ARO was estimated by W&T management.
[3] The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $82.3 million, which equates to the cash component of the transaction, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.
[4] The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings. The negative amount represents a decrease to net expenses.
[5] Income tax expense was computed using the 35% federal statutory rate.