Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet



	December 31, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents	$	777		$	8,953		$	—		$	9,730
Accounts receivable – oil and gas revenues	—			96,495			—			96,495
Accounts receivable – joint interest and other	15			100,899			—			100,914
Accounts receivable – affiliates	1,248			247,488			(248,736		)	—
Inventory	—			11,072			—			11,072
Prepaid expenses	278			7,050			—			7,328
Derivative instruments	—			139,697			—			139,697
Other current assets	—			50			—			50
Total current assets	2,318			611,704			(248,736		)	365,286
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			6,284,401			—			6,284,401
Other property and equipment	—			443,265			—			443,265
Less: accumulated depreciation, depletion, amortization and impairment	—			(1,509,424		)	—			(1,509,424		)
Total property, plant and equipment, net	—			5,218,242			—			5,218,242
Assets held for sale	—			26,728			—			26,728
Investments in and advances to subsidiaries	4,573,172			—			(4,573,172		)	—
Derivative instruments	—			15,776			—			15,776
Deferred income taxes	205,174			—			(205,174		)	—
Other assets	100			23,243			—			23,343
Total assets	$	4,780,764		$	5,895,693		$	(5,027,082	)	$	5,649,375
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	9,983		$	—		$	9,983
Accounts payable – affiliates	247,488			1,248			(248,736		)	—
Revenues and production taxes payable	—			132,356			—			132,356
Accrued liabilities	10			167,659			—			167,669
Accrued interest payable	49,340			73			—			49,413
Advances from joint interest partners	—			4,647			—			4,647
Other current liabilities	—			6,500			—			6,500
Total current liabilities	296,838			322,466			(248,736		)	370,568
Long-term debt	2,164,584			138,000			—			2,302,584
Deferred income taxes	—			813,329			(205,174		)	608,155
Asset retirement obligations	—			35,338			—			35,338
Liabilities held for sale	—			10,228			—			10,228
Other liabilities	—			3,160			—			3,160
Total liabilities	2,461,422			1,322,521			(453,910		)	3,330,033
Stockholders’ equity
Capital contributions from affiliates	—			3,369,895			(3,369,895		)	—
Common stock, $0.01 par value: 300,000,000 shares authorized; 139,583,990 shares issued and 139,076,064 shares outstanding	1,376			—			—			1,376
Treasury stock, at cost: 507,926 shares	(13,620		)	—			—			(13,620		)
Additional paid-in-capital	1,497,065			8,743			(8,743		)	1,497,065
Retained earnings	834,521			1,194,534			(1,194,534		)	834,521
Total stockholders’ equity	2,319,342			4,573,172			(4,573,172		)	2,319,342
Total liabilities and stockholders’ equity	$	4,780,764		$	5,895,693		$	(5,027,082	)	$	5,649,375

Condensed Consolidating Balance Sheet



	December 31, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents	$	776		$	45,035		$	—		$	45,811
Accounts receivable – oil and gas revenues	—			130,934			—			130,934
Accounts receivable – joint interest and other	—			175,537			—			175,537
Accounts receivable – affiliates	781			91,459			(92,240		)	—
Inventory	—			21,354			—			21,354
Prepaid expenses	297			13,976			—			14,273
Derivative instruments	—			302,159			—			302,159
Other current assets	—			6,539			—			6,539
Total current assets	1,854			786,993			(92,240		)	696,607
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			5,966,140			—			5,966,140
Other property and equipment	—			313,439			—			313,439
Less: accumulated depreciation, depletion, amortization and impairment	—			(1,092,793		)	—			(1,092,793		)
Total property, plant and equipment, net	—			5,186,786			—			5,186,786
Investments in and advances to subsidiaries	4,032,494			—			(4,032,494		)	—
Derivative instruments	—			13,348			—			13,348
Deferred income taxes	149,317			—			(149,317		)	—
Other assets	99			12,236			—			12,335
Total assets	$	4,183,764		$	5,999,363		$	(4,274,051	)	$	5,909,076
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	20,958		$	—		$	20,958
Accounts payable - affiliates	91,459			781			(92,240		)	—
Revenues and production taxes payable	—			209,890			—			209,890
Accrued liabilities	—			410,379			—			410,379
Accrued interest payable	49,340			446			—			49,786
Deferred income taxes	—			97,499			—			97,499
Advances from joint interest partners	—			6,616			—			6,616
Total current liabilities	140,799			746,569			(92,240		)	795,128
Long-term debt	2,170,664			500,000			—			2,670,664
Deferred income taxes	—			676,087			(149,317		)	526,770
Asset retirement obligations	—			42,097			—			42,097
Other liabilities	—			2,116			—			2,116
Total liabilities	2,311,463			1,966,869			(241,557		)	4,036,775
Stockholders’ equity
Capital contributions from affiliates	—			2,899,203			(2,899,203		)	—
Common stock, $0.01 par value: 300,000,000 shares authorized; 101,627,296 shares issued and 101,341,619 shares outstanding	1,001			—			—			1,001
Treasury stock, at cost: 285,677 shares	(10,671		)	—			—			(10,671		)
Additional paid-in-capital	1,007,202			8,743			(8,743		)	1,007,202
Retained earnings	874,769			1,124,548			(1,124,548		)	874,769
Total stockholders’ equity	1,872,301			4,032,494			(4,032,494		)	1,872,301
Total liabilities and stockholders’ equity	$	4,183,764		$	5,999,363		$	(4,274,051	)	$	5,909,076

Schedule of Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	721,672		$	—		$	721,672
Well services and midstream revenues	—			68,063			—			68,063
Total revenues	—			789,735			—			789,735
Operating expenses
Lease operating expenses	—			144,481			—			144,481
Well services and midstream operating expenses	—			28,031			—			28,031
Marketing, transportation and gathering expenses	—			31,610			—			31,610
Production taxes	—			69,584			—			69,584
Depreciation, depletion and amortization	—			485,322			—			485,322
Exploration expenses	—			2,369			—			2,369
Rig termination	—			3,895			—			3,895
Impairment of oil and gas properties	—			46,109			—			46,109
General and administrative expenses	27,930			64,568			—			92,498
Total operating expenses	27,930			875,969			—			903,899
Operating loss	(27,930		)	(86,234		)	—			(114,164		)
Other income (expense)
Equity in earnings of subsidiaries	69,986			—			(69,986		)	—
Net gain on derivative instruments	—			210,376			—			210,376
Interest expense, net of capitalized interest	(138,166		)	(11,482		)	—			(149,648		)
Other income (expense)	5			(2,940		)	—			(2,935		)
Total other income (expense)	(68,175		)	195,954			(69,986		)	57,793
Income (loss) before income taxes	(96,105		)	109,720			(69,986		)	(56,371		)
Income tax benefit (expense)	55,857			(39,734		)	—			16,123
Net income (loss)	$	(40,248	)	$	69,986		$	(69,986	)	$	(40,248	)

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	1,304,004		$	—		$	1,304,004
Well services and midstream revenues	—			86,224			—			86,224
Total revenues	—			1,390,228			—			1,390,228
Operating expenses
Lease operating expenses	—			169,600			—			169,600
Well services and midstream operating expenses	—			50,252			—			50,252
Marketing, transportation and gathering expenses	—			29,133			—			29,133
Production taxes	—			127,648			—			127,648
Depreciation, depletion and amortization	—			412,334			—			412,334
Exploration expenses	—			3,064			—			3,064
Impairment of oil and gas properties	—			47,238			—			47,238
General and administrative expenses	23,528			68,778			—			92,306
Total operating expenses	23,528			908,047			—			931,575
Gain on sale of properties	—			186,999			—			186,999
Operating income (loss)	(23,528		)	669,180			—			645,652
Other income (expense)
Equity in earnings of subsidiaries	613,601			—			(613,601		)	—
Net gain on derivative instruments	—			327,011			—			327,011
Interest expense, net of capitalized interest	(147,230		)	(11,160		)	—			(158,390		)
Other income (expense)	5			190			—			195
Total other income (expense)	466,376			316,041			(613,601		)	168,816
Income before income taxes	442,848			985,221			(613,601		)	814,468
Income tax benefit (expense)	64,029			(371,620		)	—			(307,591		)
Net income	$	506,877		$	613,601		$	(613,601	)	$	506,877

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2013
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	1,084,412		$	—		$	1,084,412
Well services and midstream revenues	—			57,587			—			57,587
Total revenues	—			1,141,999			—			1,141,999
Operating expenses
Lease operating expenses	—			94,634			—			94,634
Well services and midstream operating expenses	—			30,713			—			30,713
Marketing, transportation and gathering expenses	—			25,924			—			25,924
Production taxes	—			100,537			—			100,537
Depreciation, depletion and amortization	—			307,055			—			307,055
Exploration expenses	—			2,260			—			2,260
Impairment of oil and gas properties	—			1,168			—			1,168
General and administrative expenses	14,044			61,266			—			75,310
Total operating expenses	14,044			623,557			—			637,601
Operating income (loss)	(14,044		)	518,442			—			504,398
Other income (expense)
Equity in earnings of subsidiaries	299,459			—			(299,459		)	—
Net loss on derivative instruments	—			(35,432		)	—			(35,432		)
Interest expense, net of capitalized interest	(99,663		)	(7,502		)	—			(107,165		)
Other income (expense)	(335		)	1,551			—			1,216
Total other income (expense)	199,461			(41,383		)	(299,459		)	(141,381		)
Income before income taxes	185,417			477,059			(299,459		)	363,017
Income tax benefit (expense)	42,542			(177,600		)	—			(135,058		)
Net income	$	227,959		$	299,459		$	(299,459	)	$	227,959

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	(40,248	)	$	69,986		$	(69,986	)	$	(40,248	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in earnings of subsidiaries	(69,986		)	—			69,986			—
Depreciation, depletion and amortization	—			485,322			—			485,322
Impairment of oil and gas properties	—			46,109			—			46,109
Deferred income taxes	(55,857		)	39,743			—			(16,114		)
Derivative instruments	—			(210,376		)	—			(210,376		)
Stock-based compensation expenses	24,762			510			—			25,272
Deferred financing costs amortization and other	4,964			7,335			—			12,299
Working capital and other changes:
Change in accounts receivable	(482		)	(47,553		)	156,496			108,461
Change in inventory	—			6,873			—			6,873
Change in prepaid expenses	19			1,809			—			1,828
Change in other current assets	—			6,489			—			6,489
Change in other assets	—			(950		)	—			(950		)
Change in accounts payable and accrued liabilities	156,039			(71,160		)	(156,496		)	(71,617		)
Change in other current liabilities	—			6,500			—			6,500
Change in other liabilities and deferred credits	—			(33		)	—			(33		)
Net cash provided by operating activities	19,211			340,604			—			359,815
Cash flows from investing activities:
Capital expenditures	—			(819,847		)	—			(819,847		)
Acquisition of oil and gas properties	—			(28,817		)	—			(28,817		)
Proceeds from sale of properties	—			1,075			—			1,075
Derivative settlements	—			370,410			—			370,410
Advances from joint interest partners	—			(1,969		)	—			(1,969		)
Net cash used in investing activities	—			(479,148		)	—			(479,148		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			630,000			—			630,000
Principal payments on revolving credit facility	—			(992,000		)	—			(992,000		)
Deferred financing costs	(11,045		)	(3,587		)	—			(14,632		)
Proceeds from sale of common stock	462,833			—			—			462,833
Purchases of treasury stock	(2,949		)	—			—			(2,949		)
Investment in / capital contributions from subsidiaries	(468,049		)	468,049			—			—
Net cash provided by (used in) financing activities	(19,210		)	102,462			—			83,252
Increase (decrease) in cash and cash equivalents	1			(36,082		)	—			(36,081		)
Cash and cash equivalents at beginning of period	776			45,035			—			45,811
Cash and cash equivalents at end of period	$	777		$	8,953		$	—		$	9,730

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income	$	506,877		$	613,601		$	(613,601	)	$	506,877
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(613,601		)	—			613,601			—
Depreciation, depletion and amortization	—			412,334			—			412,334
Gain on sale of properties	—			(186,999		)	—			(186,999		)
Impairment of oil and gas properties	—			47,238			—			47,238
Deferred income taxes	(64,029		)	371,486			—			307,457
Derivative instruments	—			(327,011		)	—			(327,011		)
Stock-based compensation expenses	20,701			601			—			21,302
Deferred financing costs amortization and other	4,549			6,479			—			11,028
Working capital and other changes:
Change in accounts receivable	(11		)	(65,657		)	82,370			16,702
Change in inventory	—			(3,776		)	—			(3,776		)
Change in prepaid expenses	21			(3,220		)	—			(3,199		)
Change in other current assets	—			(6,135		)	—			(6,135		)
Change in other assets	—			114			—			114
Change in accounts payable and accrued liabilities	84,044			75,049			(82,370		)	76,723
Change in other liabilities	—			(139		)	—			(139		)
Net cash provided by (used in) operating activities	(61,449		)	933,965			—			872,516
Cash flows from investing activities:
Capital expenditures	—			(1,354,281		)	—			(1,354,281		)
Acquisition of oil and gas properties	—			(46,247		)	—			(46,247		)
Proceeds from sale of properties	—			324,852			—			324,852
Costs related to sale of properties	—			(2,337		)	—			(2,337		)
Derivative settlements	—			6,774			—			6,774
Advances from joint interest partners	—			(6,213		)	—			(6,213		)
Net cash used in investing activities	—			(1,077,452		)	—			(1,077,452		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			620,000			—			620,000
Principal payments on revolving credit facility	—			(455,570		)	—			(455,570		)
Deferred financing costs	—			(99		)	—			(99		)
Purchases of treasury stock	(5,309		)	—			—			(5,309		)
Investment in / capital contributions from subsidiaries	33,433			(33,433		)	—			—
Other	(176		)	—			—			(176		)
Net cash provided by financing activities	27,948			130,898			—			158,846
Decrease in cash and cash equivalents	(33,501		)	(12,589		)	—			(46,090		)
Cash and cash equivalents at beginning of period	34,277			57,624			—			91,901
Cash and cash equivalents at end of period	$	776		$	45,035		$	—		$	45,811

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2013
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income	$	227,959		$	299,459		$	(299,459	)	$	227,959
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(299,459		)	—			299,459			—
Depreciation, depletion and amortization	—			307,055			—			307,055
Impairment of oil and gas properties	—			1,168			—			1,168
Deferred income taxes	(42,542		)	177,125			—			134,583
Derivative instruments	—			35,432			—			35,432
Stock-based compensation expenses	11,602			380			—			11,982
Deferred financing costs amortization and other	4,018			230			—			4,248
Working capital and other changes:
Change in accounts receivable	(460		)	(110,266		)	3,253			(107,473		)
Change in inventory	—			(13,941		)	—			(13,941		)
Change in prepaid expenses	(5		)	(8,186		)	—			(8,191		)
Change in other current assets	235			(291		)	—			(56		)
Change in other assets	—			(3,248		)	—			(3,248		)
Change in accounts payable and accrued liabilities	20,710			89,994			(3,253		)	107,451
Change in other liabilities	—			887			—			887
Net cash provided by (used in) operating activities	(77,942		)	775,798			—			697,856
Cash flows from investing activities:
Capital expenditures	—			(893,524		)	—			(893,524		)
Acquisition of oil and gas properties	—			(1,560,072		)	—			(1,560,072		)
Derivative settlements	—			(8,133		)	—			(8,133		)
Redemptions of short-term investments	25,000			—			—			25,000
Advances from joint interest partners	—			(8,347		)	—			(8,347		)
Net cash provided by (used in) investing activities	25,000			(2,470,076		)	—			(2,445,076		)
Cash flows from financing activities:
Proceeds from issuance of senior notes	1,000,000			—			—			1,000,000
Proceeds from revolving credit facility	—			600,000			—			600,000
Principal payments on revolving credit facility	—			(264,430		)	—			(264,430		)
Deferred financing costs	(16,362		)	(6,548		)	—			(22,910		)
Proceeds from sale of common stock	314,580			—			—			314,580
Purchases of treasury stock	(1,566		)	—			—			(1,566		)
Investment in / capital contributions from subsidiaries	(1,343,230		)	1,343,230			—			—
Net cash provided by (used in) financing activities	(46,578		)	1,672,252			—			1,625,674
Decrease in cash and cash equivalents	(99,520		)	(22,026		)	—			(121,546		)
Cash and cash equivalents at beginning of period	133,797			79,650			—			213,447
Cash and cash equivalents at end of period	$	34,277		$	57,624		$	—		$	91,901