Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
20. Other Matters (Continued)
cooperate with the Department of Justice (‘‘DOJ’’) with regard to its ongoing parallel investigation. We
are unable to predict the outcome of the DOJ’s ongoing investigation or any action that the DOJ may
decide to pursue.
21. Related Party Transactions
On February 20, 2013, the Company entered into software licensing and consulting service
agreements with Quorum Business Solutions, Inc. (‘‘Quorum’’) and Quorum Business Solutions
(U.S.A.), Inc, related to certain enterprise resource planning software. Under these agreements,
Quorum will license, host, and support this software for us for an initial term of three years. The
approximate value of these agreements is $1.5 million. Quorum is owned in part by Riverstone
Holdings, LLC, one of our former financial sponsors. For the years ended December 31, 2014 and
2013, the Company incurred a total of 1.5 million and $1.3 million, respectively, in costs relating to
Quorum. The Company did not have any material related party transactions for the year ended
December 31, 2012.
22. Selected Quarterly Financial Data—Unaudited
Unaudited quarterly financial data for the years ended December 31, 2014 and 2013 are as follows:
1
st
Quarter 2
nd
Quarter 3
rd
Quarter 4
th
Quarter
($ in thousands, except per share data)
Year ended December 31, 2014
Operating costs and expenses . . . . . . . . . . . . . . . . . $ 47,293 $ 77,591 $ 120,961 $ 196,097
Operating income (loss) . . . . . . . . . . . . . . . . . . . . .
(47,293) (77,591) (120,961) (196,097)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
(56,915) (94,756) (142,529) (216,564)
Basic and diluted income (loss) per common
share(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.14) $ (0.23) $ (0.35) $ (0.53)
Year ended December 31, 2013
Operating costs and expenses . . . . . . . . . . . . . . . . . $ 112,452 $ 65,365 $ 145,663 $ 209,204
Operating income (loss) . . . . . . . . . . . . . . . . . . . . .
(112,452) (65,365) (145,663) (209,204)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
(128,087) (78,818) (160,000) (222,119)
Basic and diluted income (loss) per common
share(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.31) $ (0.19) $ (0.39) $ (0.55)
(1) Totals may not add due to rounding.
23. Supplemental Information on Oil and Gas Exploration and Production Activities (Unaudited)
The unaudited supplemental information on oil and gas exploration activities that follows is
presented in accordance with supplemental disclosure requirements under ASC No. 932,
‘‘Extractive
Activities—Oil and Gas’’
(‘‘ASC No. 932’’) and the Securities and Exchange Commission’s final rule,
Modernization of Oil and Gas Reporting.
Disclosures include (1) capitalized costs, costs incurred and
results of operations related to oil and gas producing activities, (2) net proved oil and gas reserves, and
(3) a standardized measure of discounted future net cash flows relating to proved oil and gas reserves.
Since the Company did not have any production activities for years ended December 31, 2014, 2013
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