Reporting Segments (Tables)

12 Months Ended

Dec. 31, 2017

Reporting Segments

Schedule of Segment Information

The following tables present financial information for each operating segment for the periods indicated based on the realignment of our operating segments (in thousands):

	For the Year Ended December 31, 2017
	Production		Midstream		Total
Segment operating revenues:
Natural gas sales	$	6,626	$	—	$	6,626
Oil sales		23,701		—		23,701
Natural gas liquid sales		1,997		—		1,997
Gathering and transportation sales		—		55,825		55,825
Earnings (losses) from equity investments		(101)		7,986		7,885
Total segment operating revenues		32,223		63,811		96,034
Segment operating costs:
Lease operating expenses		12,066		928		12,994
Transportation operating expenses		—		11,600		11,600
Earnout rebate		—		64		64
Cost of sales		77		—		77
Production taxes		1,476		—		1,476
Gain on sale of assets		(4,150)		—		(4,150)
Depreciation, depletion and amortization		9,522		25,308		34,830
Asset impairments		4,688		—		4,688
Accretion expense		499		274		773
Total segment operating costs		24,178		38,174		62,352
Segment operating income	$	8,045	$	25,637	$	33,682

	For the Year Ended December 31, 2016
	Production		Midstream		Total
Segment operating revenues:
Natural gas sales	$	10,408	$	—	$	10,408
Oil sales		5,138		—		5,138
Natural gas liquid sales		1,167		—		1,167
Gathering and transportation sales		—		53,972		53,972
Earnings from equity investments		81		2,301		2,382
Total segment operating revenues		16,794		56,273		73,067
Segment operating costs:
Lease operating expenses		14,327		654		14,981
Transportation operating expenses		—		12,478		12,478
Cost of sales		328		—		328
Production taxes		1,167		—		1,167
Loss on sale of assets		219		—		219
Depreciation, depletion and amortization		6,722		27,077		33,799
Asset impairments		7,646		—		7,646
Accretion expense		875		252		1,127
Total segment operating costs		31,284		40,461		71,745
Segment operating income (loss)	$	(14,490)	$	15,812	$	1,322

	For the Years Ended
	December 31,
	2017		2016
Reconciliation of segment operating income to net income (loss):
Total segment operating income	$	33,682	$	1,322
General and administrative		(22,655)		(22,901)
Unit-based compensation expense		(3,373)		(1,941)
Interest expense, net		(8,341)		(5,093)
Gain on embedded derivative		—		47,794
Other income (expense)(a)		(2,353)		50
Net income (loss)	$	(3,040)	$	19,231

Other expense in 2017 excludes earnout rebate.  As the rebate is reviewed by the CODM at the segment level, it was included in the Midstream segment operating costs.

Schedule of reconciliation of segment operating income to net income (loss)

	For the Years Ended
	December 31,
	2017		2016
Reconciliation of segment operating income to net income (loss):
Total segment operating income	$	33,682	$	1,322
General and administrative		(22,655)		(22,901)
Unit-based compensation expense		(3,373)		(1,941)
Interest expense, net		(8,341)		(5,093)
Gain on embedded derivative		—		47,794
Other income (expense)(a)		(2,353)		50
Net income (loss)	$	(3,040)	$	19,231

Summary of Total Assets by Operating Segment

The following table summarizes the total assets and capital expenditures by operating segment based on the segment realignment as of December 31, 2017 and 2016 (in thousands):

	December 31, 2017
	Production		Midstream		Corporate (a)		Total
Other financial information
Total assets	$	58,623	$	468,656	$	1,144	$	528,423
Capital expenditures(b)	$	441	$	46,452	$	—	$	46,893

	December 31, 2016
	Production		Midstream		Corporate (a)		Total
Other financial information
Total assets	$	96,262	$	440,675	$	2,768	$	539,705
Capital expenditures(b)	$	939	$	18,595	$	—	$	19,534

(a) Corporate assets not reviewed by the CODM on a segment basis consists of cash, some prepaids, and other assets.

(a) Inclusive of  capital contributions made to equity method investments.

Summary of Percentage of Revenue Earned from Customers by Segment

	For the Years Ended
	December 31,
	2017			2016
Midstream
Sanchez Energy		63	%		76	%
Total		63	%		76	%