Annual report pursuant to Section 13 and 15(d)

Supplemental Guarantor Information (Tables)

v2.4.1.9
Supplemental Guarantor Information (Tables)
12 Months Ended
Dec. 31, 2014
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.  Transfers of property, including related ARO and deferred income tax liabilities, were made from the Parent Company to the Guarantor Subsidiaries to assist the Parent Company to continue to qualify for a waiver of certain supplemental bonding requirements from the BOEM.  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.  The condensed consolidating financial information for current and prior periods was adjusted as if all transfers occurred at the beginning of the period presented.  None of the above adjustments had any effect on the consolidated results for the current or prior periods presented.

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

 

 

 

349,912

 

 

 

(1,306,717

)

 

 

17,244

 

Total assets

$

2,855,674

 

 

$

1,259,390

 

 

$

(1,405,957

)

 

$

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

 

 

 

199,083

 

 

 

(199,083

)

 

 

118,894

 

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity

 

509,308

 

 

 

902,523

 

 

 

(902,523

)

 

 

509,308

 

Total liabilities and shareholders’ equity

$

2,855,674

 

 

$

1,259,390

 

 

$

(1,405,957

)

 

$

2,709,107

 

 

Condensed Consolidating Balance Sheet as of December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

15,800

 

 

$

 

 

$

 

 

$

15,800

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas sales

 

61,373

 

 

 

35,379

 

 

 

 

 

 

96,752

 

Joint interest and other

 

123,595

 

 

 

 

 

 

(92,491

)

 

 

31,104

 

Total receivables

 

184,968

 

 

 

35,379

 

 

 

(92,491

)

 

 

127,856

 

Deferred income taxes

 

584

 

 

 

-

 

 

 

 

 

 

584

 

Prepaid expenses and other assets

 

23,090

 

 

 

6,272

 

 

 

 

 

 

29,362

 

Total current assets

 

224,442

 

 

 

41,651

 

 

 

(92,491

)

 

 

173,602

 

Property and equipment – at cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas properties and equipment

 

5,667,389

 

 

 

1,671,708

 

 

 

 

 

 

7,339,097

 

Furniture, fixtures and other

 

21,431

 

 

 

 

 

 

 

 

 

21,431

 

Total property and equipment

 

5,688,820

 

 

 

1,671,708

 

 

 

 

 

 

7,360,528

 

Less accumulated depreciation, depletion and amortization

 

4,166,359

 

 

 

918,345

 

 

 

 

 

 

5,084,704

 

Net property and equipment

 

1,522,461

 

 

 

753,363

 

 

 

 

 

 

2,275,824

 

Restricted deposits for asset retirement obligations

 

37,421

 

 

 

 

 

 

 

 

 

37,421

 

Other assets

 

951,203

 

 

 

479,820

 

 

 

(1,410,568

)

 

 

20,455

 

Total assets

$

2,735,527

 

 

$

1,274,834

 

 

$

(1,503,059

)

 

$

2,507,302

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

144,492

 

 

$

720

 

 

$

 

 

$

145,212

 

Undistributed oil and natural gas proceeds

 

41,735

 

 

 

372

 

 

 

 

 

 

42,107

 

Asset retirement obligations

 

65,329

 

 

 

12,456

 

 

 

 

 

 

77,785

 

Accrued liabilities

 

28,000

 

 

 

92,491

 

 

 

(92,491

)

 

 

28,000

 

Total current liabilities

 

279,556

 

 

 

106,039

 

 

 

(92,491

)

 

 

293,104

 

Long-term debt, less current maturities

 

1,205,421

 

 

 

 

 

 

 

 

 

1,205,421

 

Asset retirement obligations, less current portion

 

189,507

 

 

 

87,130

 

 

 

 

 

 

276,637

 

Deferred income taxes

 

79,424

 

 

 

98,718

 

 

 

 

 

 

178,142

 

Other liabilities

 

441,009

 

 

 

 

 

 

(427,621

)

 

 

13,388

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

1

 

 

 

 

 

 

 

 

 

1

 

Additional paid-in capital

 

403,564

 

 

 

784,104

 

 

 

(784,104

)

 

 

403,564

 

Retained earnings

 

161,212

 

 

 

198,843

 

 

 

(198,843

)

 

 

161,212

 

Treasury stock, at cost

 

(24,167

)

 

 

 

 

 

 

 

 

(24,167

)

Total shareholders’ equity

 

540,610

 

 

 

982,947

 

 

 

(982,947

)

 

 

540,610

 

Total liabilities and shareholders’ equity

$

2,735,527

 

 

$

1,274,834

 

 

$

(1,503,059

)

 

$

2,507,302

 

 

Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

592,460

 

 

$

356,248

 

 

$

 

 

$

948,708

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

179,344

 

 

 

85,407

 

 

 

 

 

 

264,751

 

Production taxes

 

7,932

 

 

 

 

 

 

 

 

 

7,932

 

Gathering and transportation

 

11,712

 

 

 

8,109

 

 

 

 

 

 

19,821

 

Depreciation, depletion, amortization and accretion

 

276,636

 

 

 

213,833

 

 

 

 

 

 

490,469

 

Asset retirement obligations accretion

 

10,981

 

 

 

9,652

 

 

 

 

 

 

20,633

 

General and administrative expenses

 

48,084

 

 

 

38,915

 

 

 

 

 

 

86,999

 

Derivative gain

 

(3,965

)

 

 

 

 

 

 

 

 

(3,965

)

Total costs and expenses

 

530,724

 

 

 

355,916

 

 

 

 

 

 

886,640

 

Operating income

 

61,736

 

 

 

332

 

 

 

 

 

 

62,068

 

Earnings of affiliates

 

240

 

 

 

 

 

 

(240

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

84,460

 

 

 

2,462

 

 

 

 

 

 

86,922

 

Capitalized

 

(6,064

)

 

 

(2,462

)

 

 

 

 

 

(8,526

)

Other income, net

 

208

 

 

 

 

 

 

 

 

 

208

 

Income (loss) before income tax expense (benefit)

 

(16,212

)

 

 

332

 

 

 

(240

)

 

 

(16,120

)

Income tax expense (benefit)

 

(4,551

)

 

 

92

 

 

 

 

 

 

(4,459

)

Net income (loss)

$

(11,661

)

 

$

240

 

 

$

(240

)

 

$

(11,661

)

 

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

631,267

 

 

$

352,821

 

 

$

 

 

$

984,088

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

202,096

 

 

 

68,743

 

 

 

 

 

 

270,839

 

Production taxes

 

7,135

 

 

 

 

 

 

 

 

 

7,135

 

Gathering and transportation

 

9,248

 

 

 

8,262

 

 

 

 

 

 

17,510

 

Depreciation, depletion, amortization and accretion

 

236,600

 

 

 

194,011

 

 

 

 

 

 

430,611

 

Asset retirement obligations accretion

 

14,218

 

 

 

6,700

 

 

 

 

 

 

 

20,918

 

General and administrative expenses

 

44,040

 

 

 

37,834

 

 

 

 

 

 

81,874

 

Derivative loss

 

8,470

 

 

 

 

 

 

 

 

 

8,470

 

Total costs and expenses

 

521,807

 

 

 

315,550

 

 

 

 

 

 

837,357

 

Operating income

 

109,460

 

 

 

37,271

 

 

 

 

 

 

146,731

 

Earnings of affiliates

 

24,400

 

 

 

 

 

 

(24,400

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

82,570

 

 

 

3,069

 

 

 

 

 

 

85,639

 

Capitalized

 

(6,989

)

 

 

(3,069

)

 

 

 

 

 

(10,058

)

Other income, net

 

8,946

 

 

 

 

 

 

 

 

 

8,946

 

Income before income tax expense

 

67,225

 

 

 

37,271

 

 

 

(24,400

)

 

 

80,096

 

Income tax expense

 

15,903

 

 

 

12,871

 

 

 

 

 

 

28,774

 

Net income

$

51,322

 

 

$

24,400

 

 

$

(24,400

)

 

$

51,322

 

 

Condensed Consolidating Statement of Operations for the Year Ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Revenues

$

539,958

 

 

$

334,533

 

 

$

 

 

$

874,491

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

168,033

 

 

 

64,227

 

 

 

 

 

 

232,260

 

Production taxes

 

5,840

 

 

 

 

 

 

 

 

 

5,840

 

Gathering and transportation

 

10,197

 

 

 

4,681

 

 

 

 

 

 

14,878

 

Depreciation, depletion, amortization and accretion

 

187,039

 

 

 

149,138

 

 

 

 

 

 

336,177

 

Asset retirement obligations accretion

 

14,979

 

 

 

5,076

 

 

 

 

 

 

 

20,055

 

General and administrative expenses

 

45,260

 

 

 

36,757

 

 

 

 

 

 

82,017

 

Derivative loss

 

13,954

 

 

 

 

 

 

 

 

 

13,954

 

Total costs and expenses

 

445,302

 

 

 

259,879

 

 

 

 

 

 

705,181

 

Operating income

 

94,656

 

 

 

74,654

 

 

 

 

 

 

169,310

 

Earnings of affiliates

 

49,799

 

 

 

 

 

 

(49,799

)

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred

 

60,778

 

 

 

2,490

 

 

 

 

 

 

63,268

 

Capitalized

 

(10,784

)

 

 

(2,490

)

 

 

 

 

 

(13,274

)

Other income, net

 

215

 

 

 

 

 

 

 

 

 

215

 

Income before income tax expense

 

94,676

 

 

 

74,654

 

 

 

(49,799

)

 

 

119,531

 

Income tax expense

 

22,692

 

 

 

24,855

 

 

 

 

 

 

47,547

 

Net income

$

71,984

 

 

$

49,799

 

 

$

(49,799

)

 

$

71,984

 

 

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

Parent

 

 

Guarantor

 

 

 

 

 

 

W&T

 

 

Company

 

 

Subsidiaries

 

 

Eliminations

 

 

Offshore, Inc.

 

 

(In thousands)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(11,661

)

 

$

240

 

 

$

(240

)

 

$

(11,661

)

Adjustments to reconcile net income (loss) to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

287,617

 

 

 

223,485

 

 

 

 

 

 

511,102

 

Amortization of debt issuance costs and premium

 

701

 

 

 

 

 

 

 

 

 

701

 

Share-based compensation

 

14,744

 

 

 

 

 

 

 

 

 

14,744

 

Derivative gain

 

(3,965

)

 

 

 

 

 

 

 

 

(3,965

)

Cash payments on derivative settlements, net

 

(5,318

)

 

 

 

 

 

 

 

 

(5,318

)

Deferred income taxes

 

(32,456

)

 

 

27,696

 

 

 

 

 

 

(4,760

)

Earnings of affiliates

 

(240

)

 

 

 

 

 

240

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas receivables

 

19,553

 

 

 

9,957

 

 

 

 

 

 

29,510

 

Joint interest and other receivables

 

(4,255

)

 

 

 

 

 

 

 

 

(4,255

)

Income taxes

 

30,747

 

 

 

(27,604

)

 

 

 

 

 

3,143

 

Prepaid expenses and other assets

 

25,555

 

 

 

12,882

 

 

 

(23,425

)

 

 

15,012

 

Asset retirement obligation settlements

 

(57,253

)

 

 

(17,060

)

 

 

 

 

 

(74,313

)

Accounts payable, accrued liabilities  and other

 

12,816

 

 

 

5,242

 

 

 

23,425

 

 

 

41,483

 

Net cash provided by operating activities

 

276,585

 

 

 

234,838