The explanatory notes highlight methods used to determine fair values or other amounts of the assets and liabilities as well as significant assumptions or inputs.

	Predecessor August 31, 2016			Reorganization Adjustments				Fresh Start Adjustments				Successor September 1, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	35,688		$	(20,260	)	(a)	$	—				$	15,428
Accounts receivable		56,621			—				(56	)	(a)			56,565
Advances to affiliates		5,592			—				—					5,592
Prepaid expenses and other		18,635			—				—					18,635
Total current assets		116,536			(20,260	)			(56	)				96,220
Property, plant and equipment, net		1,154,866			—				(396,661	)	(b)			758,205
Goodwill		13,639			—				(13,639	)	(c)			—
Other assets, net		15,773			(7,040	)	(b)		—					8,733
Total assets	$	1,300,814		$	(27,300	)		$	(410,356	)			$	863,158
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)/ MEMBERS’ EQUITY
Current liabilities:
Accounts payable	$	49,324		$	—			$	—				$	49,324
Derivative payable to Drilling Partnerships		534			—				—					534
Current portion of derivative liability		3,087			—				—					3,087
Accrued well drilling and completion costs		12,322			—				—					12,322
Accrued interest		3,210			(3,210	)	(c)		—					—
Accrued liabilities		18,311			—				(2,774	)	(d)			15,537
Current portion of long-term debt		30,000			—				—					30,000
Total current liabilities		116,788			(3,210	)			(2,774	)				110,804
Long-term debt, less current portion, net		405,809			250,346		(d)		—					656,155
Long-term derivative liability		4,259			—				—					4,259
Asset retirement obligations		130,935			—				(72,067	)	(e)			58,868
Other long-term liabilities		7,108			—				(52	)	(f)			7,056
Liabilities subject to compromise		915,626			(915,626	)	(e)		—					—
Commitments and contingencies (Note 11)
Partners’ Capital (Deficit) / Members’ Equity:
General partner’s interest	$	(34,902	)	$	34,902		(f)		—					—
Preferred limited partners’ interests		103,698			(103,698	)	(f)		—					—
Common limited partners’ interests		(357,124	)		357,124		(f)		—					—
Accumulated other comprehensive income		8,617			(8,617	)	(f)		—					—
Series A Preferred member’s interest		—			7,230		(g)		(6,709	)	(g)			521
Common shareholders’ interests		—			354,249		(g)		(328,754	)	(g)			25,495
Total partners’ deficit / members’ equity		(279,711	)		641,190				(335,463	)				26,016
Total liabilities and partners’ deficit / members’ equity	$	1,300,814		$	(27,300	)		$	(410,356	)			$	863,158

Reorganization Adjustments:

(a)	Reflects the use of cash on the Plan Effective Date from implementation of the Plan:

First Lien Credit Facility deferred financing costs	$	(2,525	)
Second Lien Credit Facility deferred financing costs		(1,838	)
Accrued interest on old first lien credit facility		(3,210	)
Accrued interest on old second lien credit facility		(2,375	)
Professional fees		(10,312	)
Total uses	$	(20,260	)

(b)	Reflects the adjustment made to record the elimination of $9.6 million of the old first lien credit facility deferred financing costs offset by the recognition of $2.5 million in additional deferred financing costs related to the new First Lien Credit Facility.

(c)	Reflects the payment of $3.2 million of accrued interest related to the old first lien credit facility pursuant to the Plan.

(d)	Reflects the incurrence of indebtedness under the Second Lien Credit Facility, which has an aggregate principal amount of $252.5 million pursuant to the Plan, and is net of deferred financing costs of $2.2 million.

(e)	Liabilities subject to compromise were settled as follows in accordance with the Plan:

Liabilities subject to compromise (“LSTC”):
7.75% and 9.25% Senior Notes, net of debt discount and deferred financing costs	$	648,612
Old second lien credit facility, net of debt discount and deferred financing costs		234,451
Accrued interest related to the Senior Notes and old second lien credit facility		32,563
LSTC of Predecessor		915,626
Issuance of Second Lien Credit Facility		(252,500	)
Payment of accrued interest related to the old second lien credit facility		(2,375	)
Second Lien Credit Facility deferred financing costs reinstated		316
Gain on the settlement of LSTC	$	661,067

(f)	Reflects the cancellation of our Predecessor’s general partner’s interest, preferred limited partners’ interests, common limited partner interests and elimination of accumulated other comprehensive income pursuant to the Plan.

(g)

Reflects the establishment of member’s equity following the consummation of the transactions pursuant to the Plan. Pursuant to our amended and restated limited liability company agreement, the holder of the Series A Preferred Share is entitled to 2% of the aggregate of distributions paid to shareholders (as if it held 2% of our members’ equity), subject to dilution if certain catch-up contributions are not made with respect to future equity issuances.

Reflects the cumulative impact of reorganization adjustments as discussed above:
Gain on liabilities subject to compromise	$	661,067
Cancellation of Predecessor's capital interests		(279,711	)
Net cash, deferring financing costs, and other adjustments		(19,877	)
Total impact of reorganization adjustments	$	361,479
Allocation of total impact of reorganization adjustments to establish members’ equity:
Series A Preferred member's interest	$	7,230
Common shareholders’ interests	$	354,249

Fresh Start Accounting Adjustments:

(a)	Reflects the adjustment of certain accounts receivable to their estimated fair value.

(b)

Reflects the following adjustments made to record property, plant and equipment, net at its estimated fair value. The fair values of proved natural gas and oil properties and support equipment and other were measured using a discounted cash flow model, which considered the estimated remaining lives of the wells based on reserve estimates, future operating and development costs of the assets, as well as the respective natural gas, oil and natural gas liquids forward price curves. The fair value of unproved properties was the result of the excess reorganization value over the fair value of identified tangible and intangible assets and represents the value of our probable and possible drilling locations within our various acreage positions.

	Predecessor			Fresh Start Adjustments			Successor
Natural gas and oil properties:
Proved properties	$	3,620,371		$	(2,950,427	)	$	669,944
Unproved properties		213,047			(138,613	)		74,434
Support equipment and other		131,587			(117,760	)		13,827
Total natural gas and oil properties		3,965,005			(3,206,800	)		758,205
Accumulated depreciation, depletion and amortization		(2,810,139	)		2,810,139			—
Property, plant and equipment, net	$	1,154,866		$	(396,661	)	$	758,205

(c)	Reflects the adjustment made to record the elimination of the Predecessor’s goodwill.

(d)	Reflects the adjustment of certain accrued liabilities to their estimated fair value.

(e)

Reflects the adjustment made to record asset retirement obligations at fair value. The fair value of asset retirement obligations was measured using a discounted cash flow model based on our historical experience in plugging and abandoning wells, the estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future, and federal and state regulatory requirements. We used the discount rate consistent with the rate used for our gas and oil production business.

(f)	Reflects the adjustment of certain other long-term liabilities to their estimated fair value.

(g)

Reflects the adjustment to members’ equity following the fresh start accounting adjustments. Pursuant to our LLC Agreement, the holder of the Series A Preferred Share is entitled to 2% of the aggregate of distributions paid to shareholders (as if it held 2% of our members’ equity), subject to dilution if certain catch-up contributions are not made with respect to future equity issuances.

Reflects the cumulative impact of fresh start adjustments as discussed above:
Property, plant, and equipment, net fair value adjustment	$	(396,661	)
Elimination of Predecessor’s goodwill		(13,639	)
Accounts receivable fair value adjustment		(56	)
Other liabilities fair value adjustment		52
Accrued liabilities fair value adjustment		2,774
Asset retirement fair value adjustment		72,067
Total impact of fresh start adjustments	$	(335,463	)
Allocation of total impact of fresh start adjustments to members’ equity:
Series A Preferred member's interest	$	(6,709	)
Common shareholders’ interest	$	(328,754	)

Reorganization Items, net:

Incremental costs incurred as a result of the Chapter 11 Filings, net gain on settlement of liabilities subject to compromise and reorganization adjustments, and net impact of fresh start adjustments are classified as “Reorganization items, net” in the Predecessor’s consolidated statement of operations. The following table summarizes the reorganization items:

Professional fees and other	$	(33,065	)
Accelerated amortization of deferred financing costs		(9,565	)
Net gain on reorganization adjustments		361,479
Net loss on fresh start adjustments		(335,463	)
Total reorganization items, net	$	(16,614	)