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Condensed Consolidating Financial Information (Tables) | 9 Months Ended
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Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet (In thousands, except share data)
| September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
ASSETS |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 32,955 |  |  | $ | 92,485 |  |  | $ | — |  |  | $ | 125,440 |
Restricted cash | 986,210 |  |  | — |  |  | — |  |  | 986,210 |
Accounts receivable – oil and gas revenues | — |  |  | 155,068 |  |  | — |  |  | 155,068 |
Accounts receivable – joint interest partners | — |  |  | 120,058 |  |  | — |  |  | 120,058 |
Accounts receivable – from affiliates | 770 |  |  | 8,432 |  |  | (9,202 | ) |  | — |
Inventory | — |  |  | 18,358 |  |  | — |  |  | 18,358 |
Prepaid expenses | 477 |  |  | 6,963 |  |  | — |  |  | 7,440 |
Advances to joint interest partners | — |  |  | 1,170 |  |  | — |  |  | 1,170 |
Derivative instruments | — |  |  | 374 |  |  | — |  |  | 374 |
Deferred income taxes | — |  |  | 8,683 |  |  | — |  |  | 8,683 |
Other current assets | 2 |  |  | 471 |  |  | — |  |  | 473 |
Total current assets | 1,020,414 |  |  | 412,062 |  |  | (9,202 | ) |  | 1,423,274 |
Property, plant and equipment |  |  |  |  |  |  |
Oil and gas properties (successful efforts method) | — |  |  | 3,044,515 |  |  | — |  |  | 3,044,515 |
Other property and equipment | — |  |  | 157,926 |  |  | — |  |  | 157,926 |
Less: accumulated depreciation, depletion, amortization and impairment | — |  |  | (589,173 | ) |  | — |  |  | (589,173 | )
Total property, plant and equipment, net | — |  |  | 2,613,268 |  |  | — |  |  | 2,613,268 |
Investments in and advances to subsidiaries | 2,082,828 |  |  | — |  |  | (2,082,828 | ) |  | — |
Derivative instruments | — |  |  | 3,405 |  |  | — |  |  | 3,405 |
Deferred income taxes | 69,795 |  |  | — |  |  | (69,795 | ) |  | — |
Deferred costs and other assets | 34,128 |  |  | 9,308 |  |  | — |  |  | 43,436 |
Total assets | $ | 3,207,165 |  |  | $ | 3,038,043 |  |  | $ | (2,161,825 | ) |  | $ | 4,083,383 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 39,468 |  |  | $ | — |  |  | $ | 39,468 |
Accounts payable – from affiliates | 8,432 |  |  | 770 |  |  | (9,202 | ) |  | — |
Advances from joint interest partners | — |  |  | 13,211 |  |  | — |  |  | 13,211 |
Revenues and production taxes payable | — |  |  | 133,083 |  |  | — |  |  | 133,083 |
Accrued liabilities | 46 |  |  | 198,447 |  |  | — |  |  | 198,493 |
Accrued interest payable | 22,809 |  |  | 64 |  |  | — |  |  | 22,873 |
Derivative instruments | — |  |  | 17,060 |  |  | — |  |  | 17,060 |
Total current liabilities | 31,287 |  |  | 402,103 |  |  | (9,202 | ) |  | 424,188 |
Long-term debt | 2,200,000 |  |  | 160,000 |  |  | — |  |  | 2,360,000 |
Asset retirement obligations | — |  |  | 26,999 |  |  | — |  |  | 26,999 |
Derivative instruments | — |  |  | 852 |  |  | — |  |  | 852 |
Deferred income taxes | — |  |  | 362,951 |  |  | (69,795 | ) |  | 293,156 |
Other liabilities | — |  |  | 2,310 |  |  | — |  |  | 2,310 |
Total liabilities | 2,231,287 |  |  | 955,215 |  |  | (78,997 | ) |  | 3,107,505 |
Stockholders’ equity |  |  |  |  |  |  |
Capital contributions from affiliates | — |  |  | 1,643,729 |  |  | (1,643,729 | ) |  | — |
Common stock, $0.01 par value; 300,000,000 shares authorized; 93,854,867 issued and 93,690,494 outstanding | 926 |  |  | — |  |  | — |  |  | 926 |
Treasury stock, at cost; 164,373 shares | (5,220 | ) |  | — |  |  | — |  |  | (5,220 | )
Additional paid-in-capital | 666,770 |  |  | 8,743 |  |  | (8,743 | ) |  | 666,770 |
Retained earnings | 313,402 |  |  | 430,356 |  |  | (430,356 | ) |  | 313,402 |
Total stockholders’ equity | 975,878 |  |  | 2,082,828 |  |  | (2,082,828 | ) |  | 975,878 |
Total liabilities and stockholders’ equity | $ | 3,207,165 |  |  | $ | 3,038,043 |  |  | $ | (2,161,825 | ) |  | $ | 4,083,383 |
| December 31, 2012
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
ASSETS |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 133,797 |  |  | $ | 79,650 |  |  | $ | — |  |  | $ | 213,447 |
Short-term investments | 25,891 |  |  | — |  |  | — |  |  | 25,891 |
Accounts receivable – oil and gas revenues | — |  |  | 110,341 |  |  | — |  |  | 110,341 |
Accounts receivable – joint interest partners | — |  |  | 99,194 |  |  | — |  |  | 99,194 |
Accounts receivable – from affiliates | 310 |  |  | 5,845 |  |  | (6,155 | ) |  | — |
Inventory | — |  |  | 20,707 |  |  | — |  |  | 20,707 |
Prepaid expenses | 313 |  |  | 1,457 |  |  | — |  |  | 1,770 |
Advances to joint interest partners | — |  |  | 1,985 |  |  | — |  |  | 1,985 |
Derivative instruments | — |  |  | 19,016 |  |  | — |  |  | 19,016 |
Other current assets | 235 |  |  | 100 |  |  | — |  |  | 335 |
Total current assets | 160,546 |  |  | 338,295 |  |  | (6,155 | ) |  | 492,686 |
Property, plant and equipment |  |  |  |  |  |  |
Oil and gas properties (successful efforts method) | — |  |  | 2,348,128 |  |  | — |  |  | 2,348,128 |
Other property and equipment | — |  |  | 49,732 |  |  | — |  |  | 49,732 |
Less: accumulated depreciation, depletion, amortization and impairment | — |  |  | (391,260 | ) |  | — |  |  | (391,260 | )
Total property, plant and equipment, net | — |  |  | 2,006,600 |  |  | — |  |  | 2,006,600 |
Investments in and advances to subsidiaries | 1,807,010 |  |  | — |  |  | (1,807,010 | ) |  | — |
Derivative instruments | — |  |  | 4,981 |  |  | — |  |  | 4,981 |
Deferred income taxes | 42,746 |  |  | — |  |  | (42,746 | ) |  | — |
Deferred costs and other assets | 20,748 |  |  | 3,779 |  |  | — |  |  | 24,527 |
Total assets | $ | 2,031,050 |  |  | $ | 2,353,655 |  |  | $ | (1,855,911 | ) |  | $ | 2,528,794 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Accounts payable | $ | 9 |  |  | $ | 12,482 |  |  | $ | — |  |  | $ | 12,491 |
Accounts payable – from affiliates | 5,845 |  |  | 310 |  |  | (6,155 | ) |  | — |
Advances from joint interest partners | — |  |  | 21,176 |  |  | — |  |  | 21,176 |
Revenues and production taxes payable | — |  |  | 71,553 |  |  | — |  |  | 71,553 |
Accrued liabilities | 100 |  |  | 189,763 |  |  | — |  |  | 189,863 |
Accrued interest payable | 30,091 |  |  | 5 |  |  | — |  |  | 30,096 |
Derivative instruments | — |  |  | 1,048 |  |  | — |  |  | 1,048 |
Deferred income taxes | — |  |  | 4,558 |  |  | — |  |  | 4,558 |
Total current liabilities | 36,045 |  |  | 300,895 |  |  | (6,155 | ) |  | 330,785 |
Long-term debt | 1,200,000 |  |  | — |  |  | — |  |  | 1,200,000 |
Asset retirement obligations | — |  |  | 22,956 |  |  | — |  |  | 22,956 |
Derivative instruments | — |  |  | 380 |  |  | — |  |  | 380 |
Deferred income taxes | — |  |  | 220,417 |  |  | (42,746 | ) |  | 177,671 |
Other liabilities | — |  |  | 1,997 |  |  | — |  |  | 1,997 |
Total liabilities | 1,236,045 |  |  | 546,645 |  |  | (48,901 | ) |  | 1,733,789 |
Stockholders’ equity |  |  |  |  |  |  |
Capital contributions from affiliates | — |  |  | 1,586,780 |  |  | (1,586,780 | ) |  | — |
Common stock, $0.01 par value; 300,000,000 shares authorized; 93,432,712 issued and 93,303,298 outstanding | 925 |  |  | — |  |  | — |  |  | 925 |
Treasury stock, at cost; 129,414 shares | (3,796 | ) |  | — |  |  | — |  |  | (3,796 | )
Additional paid-in-capital | 657,943 |  |  | 8,743 |  |  | (8,743 | ) |  | 657,943 |
Retained earnings | 139,933 |  |  | 211,487 |  |  | (211,487 | ) |  | 139,933 |
Total stockholders’ equity | 795,005 |  |  | 1,807,010 |  |  | (1,807,010 | ) |  | 795,005 |
Total liabilities and stockholders’ equity | $ | 2,031,050 |  |  | $ | 2,353,655 |  |  | $ | (1,855,911 | ) |  | $ | 2,528,794 |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations (In thousands)
| Three Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 286,952 |  |  | $ | — |  |  | $ | 286,952 |
Well services and midstream revenues | — |  |  | 18,546 |  |  | — |  |  | 18,546 |
Total revenues | — |  |  | 305,498 |  |  | — |  |  | 305,498 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 21,831 |  |  | — |  |  | 21,831 |
Well services and midstream operating expenses | — |  |  | 10,319 |  |  | — |  |  | 10,319 |
Marketing, transportation and gathering expenses | — |  |  | 5,688 |  |  | — |  |  | 5,688 |
Production taxes | — |  |  | 26,823 |  |  | — |  |  | 26,823 |
Depreciation, depletion and amortization | — |  |  | 72,728 |  |  | — |  |  | 72,728 |
Exploration expenses | — |  |  | 463 |  |  | — |  |  | 463 |
Impairment of oil and gas properties | — |  |  | 56 |  |  | — |  |  | 56 |
General and administrative expenses | 3,746 |  |  | 12,982 |  |  | — |  |  | 16,728 |
Total expenses | 3,746 |  |  | 150,890 |  |  | — |  |  | 154,636 |
Operating income (loss) | (3,746 | ) |  | 154,608 |  |  | — |  |  | 150,862 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 70,118 |  |  | — |  |  | (70,118 | ) |  | — |
Net loss on derivative instruments | — |  |  | (39,817 | ) |  | — |  |  | (39,817 | )
Interest expense, net of capitalized interest | (21,277 | ) |  | (1,577 | ) |  | — |  |  | (22,854 | )
Other income | 15 |  |  | 8 |  |  | — |  |  | 23 |
Total other income (expense) | 48,856 |  |  | (41,386 | ) |  | (70,118 | ) |  | (62,648 | )
Income before income taxes | 45,110 |  |  | 113,222 |  |  | (70,118 | ) |  | 88,214 |
Income tax benefit (expense) | 9,389 |  |  | (43,104 | ) |  | — |  |  | (33,715 | )
Net income | $ | 54,499 |  |  | $ | 70,118 |  |  | $ | (70,118 | ) |  | $ | 54,499 |
Condensed Consolidating Statement of Operations (In thousands)
| Three Months Ended September 30, 2012
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 178,748 |  |  | $ | — |  |  | $ | 178,748 |
Well services revenues | — |  |  | 5,963 |  |  | — |  |  | 5,963 |
Total revenues | — |  |  | 184,711 |  |  | — |  |  | 184,711 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 16,134 |  |  | — |  |  | 16,134 |
Well services operating expenses | — |  |  | 5,420 |  |  | — |  |  | 5,420 |
Marketing, transportation and gathering expenses | — |  |  | 2,744 |  |  | — |  |  | 2,744 |
Production taxes | — |  |  | 16,433 |  |  | — |  |  | 16,433 |
Depreciation, depletion and amortization | — |  |  | 57,684 |  |  | — |  |  | 57,684 |
Exploration expenses | — |  |  | 336 |  |  | — |  |  | 336 |
Impairment of oil and gas properties | — |  |  | 36 |  |  | — |  |  | 36 |
General and administrative expenses | 2,988 |  |  | 10,898 |  |  | — |  |  | 13,886 |
Total expenses | 2,988 |  |  | 109,685 |  |  | — |  |  | 112,673 |
Operating income (loss) | (2,988 | ) |  | 75,026 |  |  | — |  |  | 72,038 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 32,735 |  |  | — |  |  | (32,735 | ) |  | — |
Net loss on derivative instruments | — |  |  | (22,441 | ) |  | — |  |  | (22,441 | )
Interest expense, net of capitalized interest | (20,307 | ) |  | (672 | ) |  | — |  |  | (20,979 | )
Other income | 238 |  |  | 909 |  |  | — |  |  | 1,147 |
Total other income (expense) | 12,666 |  |  | (22,204 | ) |  | (32,735 | ) |  | (42,273 | )
Income before income taxes | 9,678 |  |  | 52,822 |  |  | (32,735 | ) |  | 29,765 |
Income tax benefit (expense) | 8,636 |  |  | (20,087 | ) |  | — |  |  | (11,451 | )
Net income | $ | 18,314 |  |  | $ | 32,735 |  |  | $ | (32,735 | ) |  | $ | 18,314 |
Condensed Consolidating Statement of Operations (In thousands)
| Nine Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 770,445 |  |  | $ | — |  |  | $ | 770,445 |
Well services and midstream revenues | — |  |  | 37,939 |  |  | — |  |  | 37,939 |
Total revenues | — |  |  | 808,384 |  |  | — |  |  | 808,384 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 59,586 |  |  | — |  |  | 59,586 |
Well services and midstream operating expenses | — |  |  | 19,877 |  |  | — |  |  | 19,877 |
Marketing, transportation and gathering expenses | — |  |  | 19,856 |  |  | — |  |  | 19,856 |
Production taxes | — |  |  | 70,309 |  |  | — |  |  | 70,309 |
Depreciation, depletion and amortization | — |  |  | 205,779 |  |  | — |  |  | 205,779 |
Exploration expenses | — |  |  | 2,712 |  |  | — |  |  | 2,712 |
Impairment of oil and gas properties | — |  |  | 762 |  |  | — |  |  | 762 |
General and administrative expenses | 10,146 |  |  | 37,092 |  |  | — |  |  | 47,238 |
Total expenses | 10,146 |  |  | 415,973 |  |  | — |  |  | 426,119 |
Operating income (loss) | (10,146 | ) |  | 392,411 |  |  | — |  |  | 382,265 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 218,869 |  |  | — |  |  | (218,869 | ) |  | — |
Net loss on derivative instruments | — |  |  | (41,838 | ) |  | — |  |  | (41,838 | )
Interest expense, net of capitalized interest | (61,955 | ) |  | (3,474 | ) |  | — |  |  | (65,429 | )
Other income | (348 | ) |  | 1,445 |  |  | — |  |  | 1,097 |
Total other income (expense) | 156,566 |  |  | (43,867 | ) |  | (218,869 | ) |  | (106,170 | )
Income before income taxes | 146,420 |  |  | 348,544 |  |  | (218,869 | ) |  | 276,095 |
Income tax benefit (expense) | 27,049 |  |  | (129,675 | ) |  | — |  |  | (102,626 | )
Net income | $ | 173,469 |  |  | $ | 218,869 |  |  | $ | (218,869 | ) |  | $ | 173,469 |
Condensed Consolidating Statement of Operations (In thousands)
| Nine Months Ended September 30, 2012
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 461,857 |  |  | $ | — |  |  | $ | 461,857 |
Well services and midstream revenues | — |  |  | 10,484 |  |  | — |  |  | 10,484 |
Total revenues | — |  |  | 472,341 |  |  | — |  |  | 472,341 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 37,979 |  |  | — |  |  | 37,979 |
Well services and midstream operating expenses | — |  |  | 7,104 |  |  | — |  |  | 7,104 |
Marketing, transportation and gathering expenses | — |  |  | 7,283 |  |  | — |  |  | 7,283 |
Production taxes | — |  |  | 43,419 |  |  | — |  |  | 43,419 |
Depreciation, depletion and amortization | — |  |  | 140,783 |  |  | — |  |  | 140,783 |
Exploration expenses | — |  |  | 3,171 |  |  | — |  |  | 3,171 |
Impairment of oil and gas properties | — |  |  | 2,607 |  |  | — |  |  | 2,607 |
General and administrative expenses | 8,078 |  |  | 31,544 |  |  | — |  |  | 39,622 |
Total expenses | 8,078 |  |  | 273,890 |  |  | — |  |  | 281,968 |
Operating income (loss) | (8,078 | ) |  | 198,451 |  |  | — |  |  | 190,373 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 145,021 |  |  | — |  |  | (145,021 | ) |  | — |
Net gain on derivative instruments | — |  |  | 33,568 |  |  | — |  |  | 33,568 |
Interest expense, net of capitalized interest | (47,136 | ) |  | (1,816 | ) |  | — |  |  | (48,952 | )
Other income | 533 |  |  | 1,988 |  |  | — |  |  | 2,521 |
Total other income (expense) | 98,418 |  |  | 33,740 |  |  | (145,021 | ) |  | (12,863 | )
Income before income taxes | 90,340 |  |  | 232,191 |  |  | (145,021 | ) |  | 177,510 |
Income tax benefit (expense) | 20,458 |  |  | (87,170 | ) |  | — |  |  | (66,712 | )
Net income | $ | 110,798 |  |  | $ | 145,021 |  |  | $ | (145,021 | ) |  | $ | 110,798 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows (In thousands)
| Nine Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Cash flows from operating activities: |  |  |  |  |  |  |
Net income | $ | 173,469 |  |  | $ | 218,869 |  |  | $ | (218,869 | ) |  | $ | 173,469 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |
Equity in earnings of subsidiaries | (218,869 | ) |  | — |  |  | 218,869 |  |  | — |
Depreciation, depletion and amortization | — |  |  | 205,779 |  |  | — |  |  | 205,779 |
Impairment of oil and gas properties | — |  |  | 762 |  |  | — |  |  | 762 |
Deferred income taxes | (27,049 | ) |  | 129,293 |  |  | — |  |  | 102,244 |
Derivative instruments | — |  |  | 41,838 |  |  | — |  |  | 41,838 |
Stock-based compensation expenses | 8,196 |  |  | 215 |  |  | — |  |  | 8,411 |
Debt discount amortization and other | 2,850 |  |  | (157 | ) |  | — |  |  | 2,693 |
Working capital and other changes: |  |  |  |  |  |  |
Change in accounts receivable | (460 | ) |  | (69,614 | ) |  | 2,587 |  |  | (67,487 | )
Change in inventory | — |  |  | (8,820 | ) |  | — |  |  | (8,820 | )
Change in prepaid expenses | (164 | ) |  | (5,011 | ) |  | — |  |  | (5,175 | )
Change in other current assets | 233 |  |  | (371 | ) |  | — |  |  | (138 | )
Change in other assets | — |  |  | (63 | ) |  | — |  |  | (63 | )
Change in accounts payable and accrued liabilities | (4,758 | ) |  | 89,591 |  |  | (2,587 | ) |  | 82,246 |
Change in other current liabilities | — |  |  | — |  |  | — |  |  | — |
Change in other liabilities | — |  |  | 922 |  |  | — |  |  | 922 |
Net cash provided by (used in) operating activities | (66,552 | ) |  | 603,233 |  |  | — |  |  | 536,681 |
Cash flows from investing activities: |  |  |  |  |  |  |
Capital expenditures | — |  |  | (654,175 | ) |  | — |  |  | (654,175 | )
Acquisitions of oil and gas properties | — |  |  | (133,061 | ) |  | — |  |  | (133,061 | )
Increase in restricted cash | (986,210 | ) |  | — |  |  | — |  |  | (986,210 | )
Derivative settlements | — |  |  | (5,135 | ) |  | — |  |  | (5,135 | )
Redemptions of short-term investments | 25,000 |  |  | — |  |  | — |  |  | 25,000 |
Advances from joint interest partners | — |  |  | (7,965 | ) |  | — |  |  | (7,965 | )
Net cash used in investing activities | (961,210 | ) |  | (800,336 | ) |  | — |  |  | (1,761,546 | )
Cash flows from financing activities: |  |  |  |  |  |  |
Proceeds from credit facility | — |  |  | 160,000 |  |  | — |  |  | 160,000 |
Proceeds from issuance of senior notes | 1,000,000 |  |  | — |  |  | — |  |  | 1,000,000 |
Purchases of treasury stock | (1,424 | ) |  | — |  |  | — |  |  | (1,424 | )
Debt issuance costs | (15,340 | ) |  | (6,378 | ) |  | — |  |  | (21,718 | )
Investment in / capital contributions from affiliates | (56,316 | ) |  | 56,316 |  |  | — |  |  | — |
Net cash provided by financing activities | 926,920 |  |  | 209,938 |  |  | — |  |  | 1,136,858 |
Increase (decrease) in cash and cash equivalents | (100,842 | ) |  | 12,835 |  |  | — |  |  | (88,007 | )
Cash and cash equivalents at beginning of period | 133,797 |  |  | 79,650 |  |  | — |  |  | 213,447 |
Cash and cash equivalents at end of period | $ | 32,955 |  |  | $ | 92,485 |  |  | $ | — |  |  | $ | 125,440 |
Condensed Consolidating Statement of Cash Flows (In thousands)
| Nine Months Ended September 30, 2012
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
Cash flows from operating activities: |  |  |  |  |  |  |
Net income | $ | 110,798 |  |  | $ | 145,021 |  |  | $ | (145,021 | ) |  | $ | 110,798 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |
Equity in earnings of subsidiaries | (145,021 | ) |  | — |  |  | 145,021 |  |  | — |
Depreciation, depletion and amortization | — |  |  | 140,783 |  |  | — |  |  | 140,783 |
Impairment of oil and gas properties | — |  |  | 2,607 |  |  | — |  |  | 2,607 |
Deferred income taxes | (20,458 | ) |  | 87,106 |  |  | — |  |  | 66,648 |
Derivative instruments | — |  |  | (33,568 | ) |  | — |  |  | (33,568 | )
Stock-based compensation expenses | 6,397 |  |  | 230 |  |  | — |  |  | 6,627 |
Debt discount amortization and other | 1,616 |  |  | 422 |  |  | — |  |  | 2,038 |
Working capital and other changes: |  |  |  |  |  |  |
Change in accounts receivable | (203 | ) |  | (70,899 | ) |  | 1,939 |  |  | (69,163 | )
Change in inventory | — |  |  | (26,790 | ) |  | — |  |  | (26,790 | )
Change in prepaid expenses | (192 | ) |  | (1,817 | ) |  | — |  |  | (2,009 | )
Change in other current assets | (60 | ) |  | 473 |  |  | — |  |  | 413 |
Change in other assets | (24 | ) |  | (95 | ) |  | — |  |  | (119 | )
Change in accounts payable and accrued liabilities | 8,620 |  |  | 72,398 |  |  | (1,939 | ) |  | 79,079 |
Change in other current liabilities | — |  |  | 4,784 |  |  | — |  |  | 4,784 |
Net cash provided by operating activities | (38,527 | ) |  | 320,655 |  |  | — |  |  | 282,128 |
Cash flows from investing activities: |  |  |  |  |  |  |
Capital expenditures | — |  |  | (777,516 | ) |  | — |  |  | (777,516 | )
Derivative settlements | — |  |  | 2,784 |  |  | — |  |  | 2,784 |
Purchases of short-term investments | (126,213 | ) |  | — |  |  | — |  |  | (126,213 | )
Redemptions of short-term investments | 19,994 |  |  | — |  |  | — |  |  | 19,994 |
Advances from joint interest partners | — |  |  | 17,508 |  |  | — |  |  | 17,508 |
Net cash used in investing activities | (106,219 | ) |  | (757,224 | ) |  | — |  |  | (863,443 | )
Cash flows from financing activities: |  |  |  |  |  |  |
Proceeds from issuance of senior notes | 400,000 |  |  | — |  |  |  |  | 400,000 |
Purchases of treasury stock | (1,299 | ) |  | — |  |  | — |  |  | (1,299 | )
Debt issuance costs | (7,255 | ) |  | (700 | ) |  | — |  |  | (7,955 | )
Investment in / capital contributions from affiliates | (459,012 | ) |  | 459,012 |  |  | — |  |  | — |
Net cash provided by (used in) financing activities | (67,566 | ) |  | 458,312 |  |  | — |  |  | 390,746 |
Increase (decrease) in cash and cash equivalents | (212,312 | ) |  | 21,743 |  |  | — |  |  | (190,569 | )
Cash and cash equivalents at beginning of period | 443,482 |  |  | 27,390 |  |  | — |  |  | 470,872 |
Cash and cash equivalents at end of period | $ | 231,170 |  |  | $ | 49,133 |  |  | $ | — |  |  | $ | 280,303 |

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