DISCONTINUED OPERATIONS (Predecessor)

We distributed our remaining non-STACK oil and gas assets and liabilities to the AM Contributor just prior to the closing of the Business Combination. We have determined that the remaining non-STACK oil and gas assets and liabilities as well as our Weeks Island field sold during the 4th quarter of 2017 are discontinued operations during the Predecessor Periods and have segregated their financial information from ours in the financial statements.

Prior to the Business Combination, we had notes payable to our founder (“Founder Notes”) that bore simple interest at 10%. The Founder Notes were part of the non-STACK distribution. The balance of the Founder Notes at the time of conversion was approximately $28.3 million, including accrued interest. Interest on the Founder Notes was $0.1 million, $1.2 million and $1.2 million for the 2018 Predecessor Period and the years ended December 31, 2017 and 2016, respectively.



	Predecessor
(in thousands)	January 1, 2018 Through February 8, 2018			Year Ended December 31, 2017			Year Ended December 31, 2016
Revenue:
Oil	$	1,617		$	47,218		$	57,866
Natural gas	1,023			10,090			10,932
Natural gas liquids	236			2,359			1,489
Other	16			316			213
Operating revenue	2,892			59,983			70,500
Loss on sale of assets	(1,923		)	(22,207		)	3,539
Gain on acquisition of oil and gas properties	—			1,626			—
Total revenue	969			39,402			74,039
Operating expenses:
Lease operating	1,770			27,763			29,474
Transportation and marketing	83			1,354			1,698
Production taxes	167			6,730			7,985
Workover	127			2,088			1,273
Exploration	—			11,431			7,547
Depreciation, depletion and amortization	884			24,519			41,320
Impairments of assets	5,560			29,129			15,924
General and administrative	21			82			1,290
Total operating expenses	8,612			103,096			106,511
Other income (expense)
Interest expense	(103		)	(1,209		)	(1,209		)
Interest income and other	—			88			10
Total other income (expense)	(103		)	(1,121		)	(1,199		)
Income tax provision (benefit)	—			—			(29		)
Loss from discontinued operations, net of state income taxes	$	(7,746	)	$	(64,815	)	$	(33,642	)



	Predecessor
(in thousands)	December 31, 2017
Assets associated with discontinued operations:
Current assets
Cash	$	61
Accounts receivable	4,980
Other receivables	154
Total current assets	5,195
Noncurrent assets
Investments	9,000
Oil and gas properties, net	33,618
Other long-term assets	1,167
Total noncurrent assets	43,785
Total assets associated with discontinued operations	$	48,980

Liabilities associated with discontinued operations:
Current liabilities
Accounts payable and accrued liabilities	$	7,882
Asset retirement obligations	7,537
Total current liabilities	15,419
Noncurrent liabilities
Asset retirement obligations, net of current portion	37,049
Founder Notes	28,166
Other long-term liabilities	1,647
Total noncurrent liabilities	66,862
Total liabilities associated with discontinued operations	$	82,281



	Predecessor
(in thousands)	January 1, 2018 Through February 8, 2018			Year Ended December 31, 2017		Year Ended December 31, 2016
Total operating cash flows of discontinued operations	$	2,974		$	21,138	$	31,255
Total investing cash flows of discontinued operations	(601		)	6,891		(14,378		)