2012 Annual Report - Stone Energy Corporation

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWSYEAR ENDED DECEMBER 31, 2012(In thousands of dollars)GuarantorSubsidiaryNon-GuarantorSubsidiary Eliminations ConsolidatedParentCash flows from operating activities:Net income (loss).............................................................. $149,426 $223,555 ($75) ($223,480) $149,426Adjustments to reconcile net income (loss) to net cashprovided by operating activities:Depreciation, depletion and amortization ......................... 63,022 281,152 191 - 344,365Accretion expense ............................................................. 561 32,513 257 - 33,331Deferred income tax provision (benefit)........................... (56,175) 125,750 - - 69,575Settlement of asset retirement obligations ........................ - (65,567) - - (65,567)Non-cash stock compensation expense ............................. 8,699 - - - 8,699Excess tax benefits ............................................................ (949) - - - (949)Non-cash derivative income ............................................. - (509) - - (509)Loss on early extinguishment of debt ............................... 1,972 - - - 1,972Non-cash interest expense ................................................ 13,085 - - - 13,085Non-cash (income) loss from investment insubsidiaries ................................................................ (223,555) 75 - 223,480 -Change in current income taxes ....................................... 10,618 - - - 10,618Change in intercompany receivables/payables ................. 275,819 (275,125) (694) - -(Increase) decrease in accounts receivable........................ (22,750) (33,345) 224 - (55,871)Increase in other current assets ......................................... (2,836) - - - (2,836)Decrease in inventory ...................................................... 436 - - - 436Increase (decrease) in accounts payable ........................... 5,348 (208) (39) - 5,101Decrease in other current liabilities ................................. (5,311) (5,115) - - (10,426)Other ................................................................................ 10,960 (1,661) - - 9,299Net cash provided by (used in) operating activities ...... 228,370 281,515 (136) - 509,749Cash flows from investing activities:Investment in oil and gas properties ................................. (324,542) (231,313) - - (555,855)Proceeds from sale of oil and gas properties, net ofexpenses .................................................................... 403 - - - 403Sale of fixed assets ............................................................ 134 - - - 134Investment in fixed and other assets ................................. (13,370) - - - (13,370)Net cash used in investing activities ............................... (337,375) (231,313) - - (568,688)Cash flows from financing activities:Proceeds from bank borrowings ....................................... 25,000 - - - 25,000Repayment of bank borrowings ........................................ (70,000) - - - (70,000)Proceeds from issuance of senior convertible notes .......... 300,000 - - - 300,000Deferred financing costs of senior convertible notes ........ (8,855) - - - (8,855)Proceeds from sold warrants ............................................. 40,170 - - - 40,170Payments for purchased call options ................................. (70,830) - - - (70,830)Proceeds from issuance of senior notes ............................ 300,000 - - - 300,000Deferred financing costs ................................................... (11,966) - - - (11,966)Redemption of senior subordinated notes ......................... (200,681) - - - (200,681)Excess tax benefits ............................................................ 949 - - - 949Net payments for share based compensation .................... (3,773) - - - (3,773)Net cash provided by financing activities ...................... 300,014 - - - 300,014Net change in cash and cash equivalents ....................... 191,009 50,202 (136) - 241,075Cash and cash equivalents, beginning of period ........... 37,389 926 136 - 38,451Cash and cash equivalents, end of period ..................... $228,398 $51,128 $ - $ - $279,526F-37