Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2011

Consolidating Financial Statements [Abstract]

Consolidating Balance Sheet

(In thousands, except share data)

		September 30,			September 30,			September 30,			September 30,
	December 31, 2011
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	443,482		$	27,390		$	—		$	470,872
Short-term investments		19,994			—			—			19,994
Accounts receivable – oil and gas revenues		—			52,164			—			52,164
Accounts receivable – joint interest partners		88			68,808			(1,628	)		67,268
Inventory		—			3,543			—			3,543
Prepaid expenses		309			1,831			—			2,140
Advances to joint interest partners		—			3,935			—			3,935
Deferred income taxes		—			3,233			—			3,233
Other current assets		18			473			—			491

Total current assets		463,891			161,377			(1,628	)		623,640

Property, plant and equipment
Oil and gas properties (successful efforts method)		—			1,235,357			—			1,235,357
Other property and equipment		—			20,859			—			20,859
Less: accumulated depreciation, depletion, amortization and impairment		—			(176,261	)		—			(176,261	)

Total property, plant and equipment, net		—			1,079,955			—			1,079,955

Investments in and advances to subsidiaries		958,880			—			(958,880	)		—
Derivative instruments		—			4,362			—			4,362
Deferred costs and other assets		15,742			3,683			—			19,425

Total assets	$	1,438,513		$	1,249,377		$	(960,508	)	$	1,727,382

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,563		$	12,272		$	(1,628	)	$	12,207
Advances from joint interest partners		—			9,064			—			9,064
Revenues and production taxes payable		—			19,468			—			19,468
Accrued liabilities		103			119,589			—			119,692
Accrued interest payable		15,767			7			—			15,774
Derivative instruments		—			5,907			—			5,907
Other current liabilities		—			472			—			472

Total current liabilities		17,433			166,779			(1,628	)		182,584

Long-term debt		800,000			—			—			800,000
Asset retirement obligations		—			13,075			—			13,075
Derivative instruments		—			3,505			—			3,505
Deferred income taxes		(13,158	)		106,141			—			92,983
Other liabilities		—			997			—			997

Total liabilities		804,275			290,497			(1,628	)		1,093,144

Stockholders' equity
Capital contributions from affiliates		—			941,575			(941,575	)		—
Common stock, $0.01 par value; 300,000,000 shares authorized; 92,483,393 issued and 92,460,914 outstanding		921			—			—			921
Treasury stock, at cost; 22,479 shares		(602	)		—			—			(602	)
Additional paid-in-capital		647,374			8,743			(8,743	)		647,374
Retained deficit		(13,455	)		8,562			(8,562	)		(13,455	)

Total stockholders' equity		634,238			958,880			(958,880	)		634,238

Total liabilities and stockholders' equity	$	1,438,513		$	1,249,377		$	(960,508	)	$	1,727,382

		September 30,			September 30,			September 30,			September 30,
	December 31, 2010
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	119,940		$	23,580		$	—		$	143,520
Accounts receivable – oil and gas revenues		—			25,909			—			25,909
Accounts receivable – joint interest partners		—			28,902			(306	)		28,596
Inventory		—			1,323			—			1,323
Prepaid expenses		236			254			—			490
Advances to joint interest partners		—			3,595			—			3,595
Deferred income taxes		—			2,470			—			2,470

Total current assets		120,176			86,033			(306	)		205,903

Property, plant and equipment
Oil and gas properties (successful efforts method)		—			580,968			—			580,968
Other property and equipment		—			1,970			—			1,970
Less: accumulated depreciation, depletion, amortization and impairment		—			(99,255	)		—			(99,255	)

Total property, plant and equipment, net		—			483,683			—			483,683
Investments in and advances to subsidiaries		430,970			—			(430,970	)		—
Deferred costs and other assets		—			2,266			—			2,266

Total assets	$	551,146		$	571,982		$	(431,276	)	$	691,852

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	306		$	8,198		$	(306	)	$	8,198
Advances from joint interest partners		—			3,101			—			3,101
Revenues and production taxes payable		—			6,180			—			6,180
Accrued liabilities		—			58,239			—			58,239
Accrued interest payable		—			2			—			2
Derivative instruments		—			6,543			—			6,543

Total current liabilities		306			82,263			(306	)		82,263

Long-term debt		—			—			—			—
Asset retirement obligations		—			7,640			—			7,640
Derivative instruments		—			3,943			—			3,943
Deferred income taxes		(954	)		46,386			—			45,432
Other liabilities		—			780			—			780

Total liabilities		(648	)		141,012			(306	)		140,058

Stockholders' equity
Capital contributions from affiliates		—			513,501			(513,501	)		—
Common stock, $0.01 par value; 300,000,000 shares authorized; 92,240,345 issued and outstanding		920			—			—			920
Additional paid-in-capital		643,719			8,743			(8,743	)		643,719
Retained deficit		(92,845	)		(91,274	)		91,274			(92,845	)

Total stockholders' equity		551,794			430,970			(430,970	)		551,794

Total liabilities and stockholders' equity	$	551,146		$	571,982		$	(431,276	)	$	691,852

Schedule Of Consolidating Statement Of Operations

Consolidating Statement of Operations

(In thousands)

		September 30,			September 30,			September 30,			September 30,
	Years Ended December 31, 2011
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Oil and gas revenues	$	—		$	330,422		$	—		$	330,422
Expenses
Lease operating expenses		—			34,072			—			34,072
Production taxes		—			33,865			—			33,865
Depreciation, depletion and amortization		—			74,981			—			74,981
Exploration expenses		—			1,685			—			1,685
Impairment of oil and gas properties		—			3,610			—			3,610
Loss on sale of properties		—			207			—			207
General and administrative expenses		5,505			23,930			—			29,435

Total expenses		5,505			172,350			—			177,855

Operating income (loss)		(5,505	)		158,072			—			152,567

Other income (expense)
Equity in earnings of subsidiaries		99,836			—			(99,836	)		—
Net gain on derivative instruments		—			1,595			—			1,595
Interest expense		(28,310	)		(1,308	)		—			(29,618	)
Other income (expense)		1,165			470			—			1,635

Total other income (expense)		72,691			757			(99,836	)		(26,388	)

Income (loss) before income taxes		67,186			158,829			(99,836	)		126,179
Income tax benefit (expense)		12,204			(58,993	)		—			(46,789	)

Net income (loss)	$	79,390		$	99,836		$	(99,836	)	$	79,390

Consolidating Statement of Operations

(In thousands)

		September 30,			September 30,			September 30,		September 30,
	Year Ended December 31, 2010
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
Oil and gas revenues	$	—		$	128,927		$	—	$	128,927
Expenses
Lease operating expenses		—			14,582			—		14,582
Production taxes		—			13,768			—		13,768
Depreciation, depletion and amortization		—			37,832			—		37,832
Exploration expenses		—			297			—		297
Impairment of oil and gas properties		—			11,967			—		11,967
Stock-based compensation expenses		—			8,743			—		8,743
General and administrative expenses		2,780			16,965			—		19,745

Total expenses		2,780			104,154			—		106,934

Operating income (loss)		(2,780	)		24,773			—		21,993

Other income (expense)
Equity in earnings of subsidiaries		(28,124	)		—			28,124		—
Net loss on derivative instruments		—			(7,653	)		—		(7,653	)
Interest expense		—			(1,357	)		—		(1,357	)
Other income (expense)		255			29			—		284

Total other income (expense)		(27,869	)		(8,981	)		28,124		(8,726	)

Income (loss) before income taxes		(30,649	)		15,792			28,124		13,267
Income tax benefit (expense)		954			(43,916	)		—		(42,962	)

Net income (loss)	$	(29,695	)	$	(28,124	)	$	28,124	$	(29,695	)

Schedule Of Consolidating Statement Of Cash Flows

Consolidating Statement of Cash Flows

(In thousands)

		September 30,			September 30,			September 30,			September 30,
	Year Ended December 31, 2011
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	79,390		$	99,836		$	(99,836	)	$	79,390
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(99,836	)		—			99,836			—
Depreciation, depletion and amortization		—			74,981			—			74,981
Impairment of oil and gas properties		—			3,610			—			3,610
Loss on sale of properties		—			207			—			207
Deferred income taxes		(12,204	)		58,993			—			46,789
Derivative instruments		—			(1,595	)		—			(1,595	)
Stock-based compensation expenses		3,656			—			—			3,656
Debt discount amortization and other		1,196			365			—			1,561
Working capital and other changes:
Change in accounts receivable		(88	)		(66,134	)		1,322			(64,900	)
Change in inventory		—			(2,550	)		—			(2,550	)
Change in prepaid expenses		(73	)		(1,527	)		—			(1,600	)
Change in other current assets		(18	)		(473	)		—			(491	)
Change in other assets		(100	)		(39	)		—			(139	)
Change in accounts payable and accrued liabilities		17,127			20,511			(1,322	)		36,316
Change in other current liabilities		—			472			—			472
Change in other liabilities		—			317			—			317

Net cash provided by operating activities		(10,950	)		186,974			—			176,024

Cash flows from investing activities:
Capital expenditures		—			(613,223	)		—			(613,223	)
Derivative settlements		—			(3,841	)		—			(3,841	)
Purchases of short-term investments		(184,907	)		—			—			(184,907	)
Redemptions of short-term investments		164,913			—			—			164,913
Advances to joint interest partners		—			(497	)		—			(497	)
Advances from joint interest partners		—			5,963			—			5,963
Proceeds from equipment and property sales		—			2,202			—			2,202

Net cash used in investing activities		(19,994	)		(609,396	)		—			(629,390	)

Cash flows from financing activities:
Proceeds from issuance of senior notes		800,000			—			—			800,000
Purchases of treasury stock		(602	)		—			—			(602	)
Debt issuance costs		(16,838	)		(1,842	)		—			(18,680	)
Investment in / capital contributions from subsidiaries		(428,074	)		428,074			—			—

Net cash provided by financing activities		354,486			426,232			—			780,718

Increase in cash and cash equivalents		323,542			3,810			—			327,352
Cash and cash equivalents at beginning of period		119,940			23,580			—			143,520

Cash and cash equivalents at end of period	$	443,482		$	27,390		$	—		$	470,872

Consolidating Statement of Cash Flows

(In thousands)

		September 30,			September 30,			September 30,			September 30,
	Year Ended December 31, 2010
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Cash flows from operating activities:
Net loss	$	(29,695	)	$	(28,124	)	$	28,124		$	(29,695	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in earnings of subsidiaries		28,124			—			(28,124	)		—
Depreciation, depletion and amortization		—			37,832			—			37,832
Impairment of oil and gas properties		—			11,967			—			11,967
Deferred income taxes		(954	)		43,916			—			42,962
Derivative instruments		—			7,653			—			7,653
Stock-based compensation expenses		1,227			8,743			—			9,970
Debt discount amortization and other		—			470			—			470
Working capital and other changes:
Change in accounts receivable		—			(44,756	)		306			(44,450	)
Change in inventory		—			(498	)		—			(498	)
Change in prepaid expenses		(236	)		(120	)		—			(356	)
Change in other assets		—			(164	)		—			(164	)
Change in accounts payable and accrued liabilities		306			13,917			(306	)		13,917
Change in other liabilities		—			4			—			4

Net cash provided by (used in) operating activities		(1,228	)		50,840			—			49,612

Cash flows from investing activities:
Capital expenditures		—			(226,544	)		—			(226,544	)
Acquisition of oil and gas properties		—			(86,393	)		—			(86,393	)
Derivative settlements		—			(120	)		—			(120	)
Advances to joint interest partners		—			1,010			—			1,010
Advances from joint interest partners		—			2,512			—			2,512

Net cash used in investing activities		—			(309,535	)		—			(309,535	)

Cash flows from financing activities:
Proceeds from sale of common stock		399,669			—			—			399,669
Proceeds from credit facility		—			72,000			—			72,000
Principal payments on credit facility		—			(107,000	)		—			(107,000	)
Debt issuance costs		—			(1,788	)		—			(1,788	)
Investment in / capital contributions from subsidiaries		(278,501	)		278,501			—			—

Net cash provided by (used in) financing activities		121,168			241,713			—			362,881

Increase (decrease) in cash and cash equivalents		119,940			(16,982	)		—			102,958
Cash and cash equivalents at beginning of period		—			40,562			—			40,562

Cash and cash equivalents at end of period	$	119,940		$	23,580		$	—		$	143,520