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Condensed Consolidating Financial Information | 9 Months Ended
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Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The Notes (see Note 8) are guaranteed on a senior unsecured basis by the Guarantors, which are 100% owned by the Company. These guarantees are full and unconditional and joint and several among the Guarantors. Certain of the Company’s immaterial wholly-owned subsidiaries do not guarantee the Notes (“Non-Guarantor Subsidiaries”). The following financial information reflects consolidating financial information of the parent company, Oasis Petroleum Inc. (“Issuer”), and its Guarantors on a combined basis, prepared on the equity basis of accounting. The Non-Guarantor Subsidiaries are immaterial and, therefore, not presented separately. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantors operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantors because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantors.
Condensed Consolidating Balance Sheet
| September 30, 2014
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands, except share data)
ASSETS |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 777 |  |  | $ | 66,417 |  |  | $ | — |  |  | $ | 67,194 |
Accounts receivable – oil and gas revenues | — |  |  | 191,711 |  |  | — |  |  | 191,711 |
Accounts receivable – joint interest partners | — |  |  | 197,929 |  |  | — |  |  | 197,929 |
Accounts receivable – affiliates | 781 |  |  | 78,053 |  |  | (78,834 | ) |  | — |
Inventory | — |  |  | 24,648 |  |  | — |  |  | 24,648 |
Prepaid expenses | 445 |  |  | 13,808 |  |  | — |  |  | 14,253 |
Derivative instruments | — |  |  | 33,874 |  |  | — |  |  | 33,874 |
Advances to joint interest partners | — |  |  | 97 |  |  | — |  |  | 97 |
Other current assets | — |  |  | 1,972 |  |  | — |  |  | 1,972 |
Total current assets | 2,003 |  |  | 608,509 |  |  | (78,834 | ) |  | 531,678 |
Property, plant and equipment |  |  |  |  |  |  |
Oil and gas properties (successful efforts method) | — |  |  | 5,546,424 |  |  | — |  |  | 5,546,424 |
Other property and equipment | — |  |  | 261,665 |  |  | — |  |  | 261,665 |
Less: accumulated depreciation, depletion, amortization and impairment | — |  |  | (933,237 | ) |  | — |  |  | (933,237 | )
Total property, plant and equipment, net | — |  |  | 4,874,852 |  |  | — |  |  | 4,874,852 |
Investments in and advances to subsidiaries | 3,826,612 |  |  | — |  |  | (3,826,612 | ) |  | — |
Derivative instruments | — |  |  | 6,422 |  |  | — |  |  | 6,422 |
Deferred income taxes | 133,526 |  |  | — |  |  | (133,526 | ) |  | — |
Deferred costs and other assets | 30,582 |  |  | 13,941 |  |  | — |  |  | 44,523 |
Total assets | $ | 3,992,723 |  |  | $ | 5,503,724 |  |  | $ | (4,038,972 | ) |  | $ | 5,457,475 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 39,550 |  |  | $ | — |  |  | $ | 39,550 |
Accounts payable – affiliates | 78,053 |  |  | 781 |  |  | (78,834 | ) |  | — |
Revenues and production taxes payable | — |  |  | 248,272 |  |  | — |  |  | 248,272 |
Accrued liabilities | 55 |  |  | 340,425 |  |  | — |  |  | 340,480 |
Accrued interest payable | 24,528 |  |  | 374 |  |  | — |  |  | 24,902 |
Deferred income taxes | — |  |  | 9,625 |  |  | — |  |  | 9,625 |
Advances from joint interest partners | — |  |  | 6,776 |  |  | — |  |  | 6,776 |
Total current liabilities | 102,636 |  |  | 645,803 |  |  | (78,834 | ) |  | 669,605 |
Long-term debt | 2,200,000 |  |  | 350,000 |  |  | — |  |  | 2,550,000 |
Deferred income taxes | — |  |  | 638,261 |  |  | (133,526 | ) |  | 504,735 |
Asset retirement obligations | — |  |  | 41,052 |  |  | — |  |  | 41,052 |
Other liabilities | — |  |  | 1,996 |  |  | — |  |  | 1,996 |
Total liabilities | 2,302,636 |  |  | 1,677,112 |  |  | (212,360 | ) |  | 3,767,388 |
Stockholders’ equity |  |  |  |  |  |  |
Capital contributions from affiliates | — |  |  | 2,896,147 |  |  | (2,896,147 | ) |  | — |
Common stock, $0.01 par value: 300,000,000 shares authorized; 101,614,588 issued | 1,000 |  |  | — |  |  | — |  |  | 1,000 |
Treasury stock, at cost: 283,249 shares | (10,602 | ) |  | — |  |  | — |  |  | (10,602 | )
Additional paid-in capital | 1,001,424 |  |  | 8,743 |  |  | (8,743 | ) |  | 1,001,424 |
Retained earnings | 698,265 |  |  | 921,722 |  |  | (921,722 | ) |  | 698,265 |
Total stockholders’ equity | 1,690,087 |  |  | 3,826,612 |  |  | (3,826,612 | ) |  | 1,690,087 |
Total liabilities and stockholders’ equity | $ | 3,992,723 |  |  | $ | 5,503,724 |  |  | $ | (4,038,972 | ) |  | $ | 5,457,475 |
Condensed Consolidating Balance Sheet
| December 31, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands, except share data)
ASSETS |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 34,277 |  |  | $ | 57,624 |  |  | $ | — |  |  | $ | 91,901 |
Accounts receivable – oil and gas revenues | — |  |  | 175,653 |  |  | — |  |  | 175,653 |
Accounts receivable – joint interest partners | — |  |  | 139,459 |  |  | — |  |  | 139,459 |
Accounts receivable – affiliates | 770 |  |  | 9,100 |  |  | (9,870 | ) |  | — |
Inventory | — |  |  | 20,652 |  |  | — |  |  | 20,652 |
Prepaid expenses | 318 |  |  | 9,873 |  |  | — |  |  | 10,191 |
Deferred income taxes | — |  |  | 6,335 |  |  | — |  |  | 6,335 |
Derivative instruments | — |  |  | 2,264 |  |  | — |  |  | 2,264 |
Advances to joint interest partners | — |  |  | 760 |  |  | — |  |  | 760 |
Other current assets | — |  |  | 391 |  |  | — |  |  | 391 |
Total current assets | 35,365 |  |  | 422,111 |  |  | (9,870 | ) |  | 447,606 |
Property, plant and equipment |  |  |  |  |  |  |
Oil and gas properties (successful efforts method) | — |  |  | 4,528,958 |  |  | — |  |  | 4,528,958 |
Other property and equipment | — |  |  | 188,468 |  |  | — |  |  | 188,468 |
Less: accumulated depreciation, depletion, amortization and impairment | — |  |  | (637,676 | ) |  | — |  |  | (637,676 | )
Total property, plant and equipment, net | — |  |  | 4,079,750 |  |  | — |  |  | 4,079,750 |
Assets held for sale | — |  |  | 137,066 |  |  | — |  |  | 137,066 |
Investments in and advances to subsidiaries | 3,450,668 |  |  | — |  |  | (3,450,668 | ) |  | — |
Derivative instruments | — |  |  | 1,333 |  |  | — |  |  | 1,333 |
Deferred income taxes | 85,288 |  |  | — |  |  | (85,288 | ) |  | — |
Deferred costs and other assets | 33,983 |  |  | 12,186 |  |  | — |  |  | 46,169 |
Total assets | $ | 3,605,304 |  |  | $ | 4,652,446 |  |  | $ | (3,545,826 | ) |  | $ | 4,711,924 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 8,920 |  |  | $ | — |  |  | $ | 8,920 |
Accounts payable – affiliates | 9,100 |  |  | 770 |  |  | (9,870 | ) |  | — |
Revenues and production taxes payable | — |  |  | 146,741 |  |  | — |  |  | 146,741 |
Accrued liabilities | 33 |  |  | 241,797 |  |  | — |  |  | 241,830 |
Accrued interest payable | 47,622 |  |  | 288 |  |  | — |  |  | 47,910 |
Derivative instruments | — |  |  | 8,188 |  |  | — |  |  | 8,188 |
Advances from joint interest partners | — |  |  | 12,829 |  |  | — |  |  | 12,829 |
Total current liabilities | 56,755 |  |  | 419,533 |  |  | (9,870 | ) |  | 466,418 |
Long-term debt | 2,200,000 |  |  | 335,570 |  |  | — |  |  | 2,535,570 |
Deferred income taxes | — |  |  | 408,435 |  |  | (85,288 | ) |  | 323,147 |
Asset retirement obligations | — |  |  | 35,918 |  |  | — |  |  | 35,918 |
Derivative instruments | — |  |  | 139 |  |  | — |  |  | 139 |
Other liabilities | — |  |  | 2,183 |  |  | — |  |  | 2,183 |
Total liabilities | 2,256,755 |  |  | 1,201,778 |  |  | (95,158 | ) |  | 3,363,375 |
Stockholders’ equity |  |  |  |  |  |  |
Capital contributions from affiliates | — |  |  | 2,930,978 |  |  | (2,930,978 | ) |  | — |
Common stock, $0.01 par value: 300,000,000 shares authorized; 100,866,589 issued | 996 |  |  | — |  |  | — |  |  | 996 |
Treasury stock, at cost: 167,155 shares | (5,362 | ) |  | — |  |  | — |  |  | (5,362 | )
Additional paid-in capital | 985,023 |  |  | 8,743 |  |  | (8,743 | ) |  | 985,023 |
Retained earnings | 367,892 |  |  | 510,947 |  |  | (510,947 | ) |  | 367,892 |
Total stockholders’ equity | 1,348,549 |  |  | 3,450,668 |  |  | (3,450,668 | ) |  | 1,348,549 |
Total liabilities and stockholders’ equity | $ | 3,605,304 |  |  | $ | 4,652,446 |  |  | $ | (3,545,826 | ) |  | $ | 4,711,924 |
Condensed Consolidating Statement of Operations
| Three Months Ended September 30, 2014
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 344,706 |  |  | $ | — |  |  | $ | 344,706 |
Well services and midstream revenues | — |  |  | 23,953 |  |  | — |  |  | 23,953 |
Total revenues | — |  |  | 368,659 |  |  | — |  |  | 368,659 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 44,361 |  |  | — |  |  | 44,361 |
Well services and midstream operating expenses | — |  |  | 14,922 |  |  | — |  |  | 14,922 |
Marketing, transportation and gathering expenses | — |  |  | 7,306 |  |  | — |  |  | 7,306 |
Production taxes | — |  |  | 34,584 |  |  | — |  |  | 34,584 |
Depreciation, depletion and amortization | — |  |  | 106,972 |  |  | — |  |  | 106,972 |
Exploration expenses | — |  |  | 1,100 |  |  | — |  |  | 1,100 |
Impairment of oil and gas properties | — |  |  | 1,439 |  |  | — |  |  | 1,439 |
General and administrative expenses | 6,373 |  |  | 17,542 |  |  | — |  |  | 23,915 |
Total expenses | 6,373 |  |  | 228,226 |  |  | — |  |  | 234,599 |
Gain on sale of properties | — |  |  | 43 |  |  | — |  |  | 43 |
Operating income (loss) | (6,373 | ) |  | 140,476 |  |  | — |  |  | 134,103 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 148,357 |  |  | — |  |  | (148,357 | ) |  | — |
Net gain on derivative instruments | — |  |  | 103,426 |  |  | — |  |  | 103,426 |
Interest expense, net of capitalized interest | (36,724 | ) |  | (2,696 | ) |  | — |  |  | (39,420 | )
Other income (expense) | — |  |  | (38 | ) |  | — |  |  | (38 | )
Total other income (expense) | 111,633 |  |  | 100,692 |  |  | (148,357 | ) |  | 63,968 |
Income before income taxes | 105,260 |  |  | 241,168 |  |  | (148,357 | ) |  | 198,071 |
Income tax benefit (expense) | 16,327 |  |  | (92,811 | ) |  | — |  |  | (76,484 | )
Net income | $ | 121,587 |  |  | $ | 148,357 |  |  | $ | (148,357 | ) |  | $ | 121,587 |
Condensed Consolidating Statement of Operations
| Three Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
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 (expense) | 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
| Nine Months Ended September 30, 2014
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
Revenues |  |  |  |  |  |  |
Oil and gas revenues | $ | — |  |  | $ | 1,030,735 |  |  | $ | — |  |  | $ | 1,030,735 |
Well services and midstream revenues | — |  |  | 59,821 |  |  | — |  |  | 59,821 |
Total revenues | — |  |  | 1,090,556 |  |  | — |  |  | 1,090,556 |
Expenses |  |  |  |  |  |  |
Lease operating expenses | — |  |  | 124,903 |  |  | — |  |  | 124,903 |
Well services and midstream operating expenses | — |  |  | 34,611 |  |  | — |  |  | 34,611 |
Marketing, transportation and gathering expenses | — |  |  | 19,606 |  |  | — |  |  | 19,606 |
Production taxes | — |  |  | 100,880 |  |  | — |  |  | 100,880 |
Depreciation, depletion and amortization | — |  |  | 295,520 |  |  | — |  |  | 295,520 |
Exploration expenses | — |  |  | 1,955 |  |  | — |  |  | 1,955 |
Impairment of oil and gas properties | — |  |  | 2,243 |  |  | — |  |  | 2,243 |
General and administrative expenses | 17,790 |  |  | 50,396 |  |  | — |  |  | 68,186 |
Total expenses | 17,790 |  |  | 630,114 |  |  | — |  |  | 647,904 |
Gain on sale of properties | — |  |  | 187,076 |  |  | — |  |  | 187,076 |
Operating income (loss) | (17,790 | ) |  | 647,518 |  |  | — |  |  | 629,728 |
Other income (expense) |  |  |  |  |  |  |
Equity in earnings in subsidiaries | 410,775 |  |  | — |  |  | (410,775 | ) |  | — |
Net gain on derivative instruments | — |  |  | 20,253 |  |  | — |  |  | 20,253 |
Interest expense, net of capitalized interest | (110,853 | ) |  | (7,715 | ) |  | — |  |  | (118,568 | )
Other income (expense) | 3 |  |  | 247 |  |  | — |  |  | 250 |
Total other income (expense) | 299,925 |  |  | 12,785 |  |  | (410,775 | ) |  | (98,065 | )
Income before income taxes | 282,135 |  |  | 660,303 |  |  | (410,775 | ) |  | 531,663 |
Income tax benefit (expense) | 48,238 |  |  | (249,528 | ) |  | — |  |  | (201,290 | )
Net income | $ | 330,373 |  |  | $ | 410,775 |  |  | $ | (410,775 | ) |  | $ | 330,373 |
Condensed Consolidating Statement of Operations
| Nine Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
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 (expense) | (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 Cash Flows
| Nine Months Ended September 30, 2014
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
Cash flows from operating activities: |  |  |  |  |  |  |
Net income | $ | 330,373 |  |  | $ | 410,775 |  |  | $ | (410,775 | ) |  | $ | 330,373 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |
Equity in earnings of subsidiaries | (410,775 | ) |  | — |  |  | 410,775 |  |  | — |
Depreciation, depletion and amortization | — |  |  | 295,520 |  |  | — |  |  | 295,520 |
Gain on sale of properties | — |  |  | (187,076 | ) |  |  |  | (187,076 | )
Impairment of oil and gas properties | — |  |  | 2,243 |  |  | — |  |  | 2,243 |
Deferred income taxes | (48,238 | ) |  | 245,786 |  |  | — |  |  | 197,548 |
Derivative instruments | — |  |  | (20,253 | ) |  | — |  |  | (20,253 | )
Stock-based compensation expenses | 15,398 |  |  | 357 |  |  | — |  |  | 15,755 |
Deferred financing costs amortization and other | 3,400 |  |  | 1,809 |  |  | — |  |  | 5,209 |
Working capital and other changes: |  |  |  |  |  |  |
Change in accounts receivable | (11 | ) |  | (131,523 | ) |  | 68,953 |  |  | (62,581 | )
Change in inventory | — |  |  | (4,089 | ) |  | — |  |  | (4,089 | )
Change in prepaid expenses | (127 | ) |  | (3,052 | ) |  | — |  |  | (3,179 | )
Change in other current assets | — |  |  | (1,581 | ) |  | — |  |  | (1,581 | )
Change in other assets | — |  |  | (3,069 | ) |  | — |  |  | (3,069 | )
Change in accounts payable and accrued liabilities | 45,881 |  |  | 131,860 |  |  | (68,953 | ) |  | 108,788 |
Change in other liabilities | — |  |  | (116 | ) |  | — |  |  | (116 | )
Net cash provided by (used in) operating activities | (64,099 | ) |  | 737,591 |  |  | — |  |  | 673,492 |
Cash flows from investing activities: |  |  |  |  |  |  |
Capital expenditures | — |  |  | (972,763 | ) |  | — |  |  | (972,763 | )
Acquisition of oil and gas properties | — |  |  | (26,126 | ) |  | — |  |  | (26,126 | )
Proceeds from sale of properties | — |  |  | 324,938 |  |  | — |  |  | 324,938 |
Costs related to sale of properties | — |  |  | (2,337 | ) |  |  |  | (2,337 | )
Derivative settlements | — |  |  | (24,773 | ) |  | — |  |  | (24,773 | )
Advances from joint interest partners | — |  |  | (6,053 | ) |  | — |  |  | (6,053 | )
Net cash used in investing activities | — |  |  | (707,114 | ) |  | — |  |  | (707,114 | )
Cash flows from financing activities: |  |  |  |  |  |  |
Proceeds from revolving credit facility | — |  |  | 370,000 |  |  | — |  |  | 370,000 |
Principal payments on revolving credit facility | — |  |  | (355,570 | ) |  | — |  |  | (355,570 | )
Debt issuance costs | — |  |  | (99 | ) |  | — |  |  | (99 | )
Purchases of treasury stock | (5,240 | ) |  | — |  |  | — |  |  | (5,240 | )
Investment in / capital contributions from affiliates | 36,015 |  |  | (36,015 | ) |  | — |  |  | — |
Other | (176 | ) |  | — |  |  | — |  |  | (176 | )
Net cash provided by (used in) financing activities | 30,599 |  |  | (21,684 | ) |  | — |  |  | 8,915 |
Increase (decrease) in cash and cash equivalents | (33,500 | ) |  | 8,793 |  |  | — |  |  | (24,707 | )
Cash and cash equivalents at beginning of period | 34,277 |  |  | 57,624 |  |  | — |  |  | 91,901 |
Cash and cash equivalents at end of period | $ | 777 |  |  | $ | 66,417 |  |  | $ | — |  |  | $ | 67,194 |
Condensed Consolidating Statement of Cash Flows
| Nine Months Ended September 30, 2013
| Parent/ Issuer |  | Combined Guarantor Subsidiaries |  | Intercompany Eliminations |  | Consolidated
| (In thousands)
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 |
Deferred financing costs 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 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 issuance of senior notes | 1,000,000 |  |  | — |  |  | — |  |  | 1,000,000 |
Proceeds from revolving credit facility | — |  |  | 160,000 |  |  | — |  |  | 160,000 |
Debt issuance costs | (15,340 | ) |  | (6,378 | ) |  | — |  |  | (21,718 | )
Purchases of treasury stock | (1,424 | ) |  | — |  |  | — |  |  | (1,424 | )
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 |

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- Definition The entire disclosure for condensed financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 10 -Paragraph f -Article 3 + Details
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