Subsidiary Guarantors (Tables)

3 Months Ended

Mar. 31, 2017

Jones Energy, Inc.

Condensed Consolidating Balance Sheet

March 31, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	4,781	$	239	$	3,668	$	20	$	—	$	8,708
Accounts receivable, net
Oil and gas sales		—		—		25,787		—		—		25,787
Joint interest owners		—		—		6,533		—		—		6,533
Other		—		3,907		311		—		—		4,218
Commodity derivative assets		—		30,101		—		—		—		30,101
Other current assets		342		224		6,712		—		—		7,278
Intercompany receivable		17,581		1,175,883		—		—		(1,193,464)		—
Total current assets		22,704		1,210,354		43,011		20		(1,193,464)		82,625
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,764,947		—		—		1,764,947
Other property, plant and equipment, net		—		—		2,325		595		—		2,920
Commodity derivative assets		—		17,767		—		—		—		17,767
Other assets		—		4,867		895		—		—		5,762
Investment in subsidiaries		548,561		—		—		—		(548,561)		—
Total assets	$	571,265	$	1,232,988	$	1,811,178	$	615	$	(1,742,025)	$	1,874,021
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	31	$	29	$	55,697	$	—	$	—	$	55,757
Oil and gas sales payable		—		—		28,112		—		—		28,112
Accrued liabilities		58		14,813		10,077		—		—		24,948
Commodity derivative liabilities		—		8,717		—		—		—		8,717
Other current liabilities		639		1,984		600		—		—		3,223
Intercompany payable		—		—		1,583,080		2,849		(1,585,929)		—
Total current liabilities		728		25,543		1,677,566		2,849		(1,585,929)		120,757
Long-term debt		—		701,586		—		—		—		701,586
Deferred revenue		—		6,591		—		—		—		6,591
Commodity derivative liabilities		—		178		—		—		—		178
Asset retirement obligations		—		—		20,035		—		—		20,035
Liability under tax receivable agreement		41,720		—		—		—		—		41,720
Other liabilities		—		316		633		—		—		949
Deferred tax liabilities		85		2,841		—		—		—		2,926
Total liabilities		42,533		737,055		1,698,234		2,849		(1,585,929)		894,742
Mezzanine equity
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at March 31, 2017		89,162		—		—		—		—		89,162
Stockholders’/ members' equity
Members' equity		—		495,933		112,944		(2,234)		(606,643)		—
Class A common stock, $0.001 par value; 63,395,635 shares issued and 63,373,033 shares outstanding at March 31, 2017		63		—		—		—		—		63
Class B common stock, $0.001 par value; 29,832,098 shares issued and outstanding at March 31, 2017		30		—		—		—		—		30
Treasury stock, at cost: 22,602 shares at March 31, 2017		(358)		—		—		—		—		(358)
Additional paid-in-capital		470,107		—		—		—		—		470,107
Retained earnings (deficit)		(30,272)		—		—		—		—		(30,272)
Stockholders' equity		439,570		495,933		112,944		(2,234)		(606,643)		439,570
Non-controlling interest		—		—		—		—		450,547		450,547
Total stockholders’ equity		439,570		495,933		112,944		(2,234)		(156,096)		890,117
Total liabilities and stockholders’ equity	$	571,265	$	1,232,988	$	1,811,178	$	615	$	(1,742,025)	$	1,874,021

Jones Energy, Inc.

Condensed Consolidating Balance Sheet

December 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	27,164	$	1,975	$	5,483	$	20	$	—	$	34,642
Accounts receivable, net
Oil and gas sales		—		—		26,568		—		—		26,568
Joint interest owners		—		—		5,267		—		—		5,267
Other		—		5,434		627		—		—		6,061
Commodity derivative assets		—		24,100		—		—		—		24,100
Other current assets		—		422		2,262		—		—		2,684
Intercompany receivable		15,666		1,180,859		—		—		(1,196,525)		—
Total current assets		42,830		1,212,790		40,207		20		(1,196,525)		99,322
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,743,588		—		—		1,743,588
Other property, plant and equipment, net		—		—		2,378		618		—		2,996
Commodity derivative assets		—		34,744		—		—		—		34,744
Other assets		—		5,265		785		—		—		6,050
Investment in subsidiaries		531,363		—		—		—		(531,363)		—
Total assets	$	574,193	$	1,252,799	$	1,786,958	$	638	$	(1,727,888)	$	1,886,700
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	—	$	13	$	36,514	$	—	$	—	$	36,527
Oil and gas sales payable		—		—		28,339		—		—		28,339
Accrued liabilities		3,874		11,227		10,597		9		—		25,707
Commodity derivative liabilities		—		14,650		—		—		—		14,650
Other current liabilities		—		1,984		600		—		—		2,584
Intercompany payable		—		—		1,566,941		2,796		(1,569,737)		—
Total current liabilities		3,874		27,874		1,642,991		2,805		(1,569,737)		107,807
Long-term debt		—		724,009		—		—		—		724,009
Deferred revenue		—		7,049		—		—		—		7,049
Commodity derivative liabilities		—		1,209		—		—		—		1,209
Asset retirement obligations		—		—		19,458		—		—		19,458
Liability under tax receivable agreement		43,045		—		—		—		—		43,045
Other liabilities		—		269		523		—		—		792
Deferred tax liabilities		85		2,820		—		—		—		2,905
Total liabilities		47,004		763,230		1,662,972		2,805		(1,569,737)		906,274
Mezzanine equity
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at December 31, 2016		88,975		—		—		—		—		88,975
Stockholders’/ members' equity
Members' equity		—		489,569		123,986		(2,167)		(611,388)		—
Class A common stock, $0.001 par value; 57,048,076 shares issued and 57,025,474 shares outstanding at December 31, 2016		57		—		—		—		—		57
Class B common stock, $0.001 par value; 29,832,098 shares issued and outstanding at December 31, 2016		30		—		—		—		—		30
Treasury stock, at cost: 22,602 shares at December 31, 2016		(358)		—		—		—		—		(358)
Additional paid-in-capital		447,137		—		—		—		—		447,137
Retained earnings (deficit)		(8,652)		—		—		—		—		(8,652)
Stockholders' equity		438,214		489,569		123,986		(2,167)		(611,388)		438,214
Non-controlling interest		—		—		—		—		453,237		453,237
Total stockholders’ equity		438,214		489,569		123,986		(2,167)		(158,151)		891,451
Total liabilities and stockholders’ equity	$	574,193	$	1,252,799	$	1,786,958	$	638	$	(1,727,888)	$	1,886,700

Condensed Consolidating Statement of Operations

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended March 31, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	40,677	$	—	$	—	$	40,677
Other revenues		—		458		98		—		—		556
Total operating revenues		—		458		40,775		—		—		41,233
Operating costs and expenses
Lease operating		—		—		8,806		—		—		8,806
Production and ad valorem taxes		—		—		(906)		—		—		(906)
Exploration		—		—		2,944		—		—		2,944
Depletion, depreciation and amortization		—		—		35,631		23		—		35,654
Accretion of ARO liability		—		—		201		—		—		201
General and administrative		—		2,993		5,004		44		—		8,041
Total operating expenses		—		2,993		51,680		67		—		54,740
Operating income (loss)		—		(2,535)		(10,905)		(67)		—		(13,507)
Other income (expense)
Interest expense		—		(12,814)		(73)		—		—		(12,887)
Net gain (loss) on commodity derivatives		—		22,320		—		—		—		22,320
Other income (expense)		668		(24)		(64)		—		—		580
Other income (expense), net		668		9,482		(137)		—		—		10,013
Income (loss) before income tax		668		6,947		(11,042)		(67)		—		(3,494)
Equity interest in income		(2,055)		—		—		—		2,055		—
Income tax provision (benefit)		—		21		—		—		—		21
Net income (loss)		(1,387)		6,926		(11,042)		(67)		2,055		(3,515)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(2,128)		(2,128)
Net income (loss) attributable to controlling interests	$	(1,387)	$	—	$	—	$	—	$	—	$	(1,387)
Dividends and accretion on preferred stock		(2,027)		—		—		—		—		(2,027)
Net income (loss) attributable to common shareholders	$	(3,414)	$	—	$	—	$	—	$	—	$	(3,414)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended March 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	25,080	$	—	$	—	$	25,080
Other revenues		—		645		133		—		—		778
Total operating revenues		—		645		25,213		—		—		25,858
Operating costs and expenses
Lease operating		—		—		8,617		—		—		8,617
Production and ad valorem taxes		—		—		1,601		—		—		1,601
Exploration		—		—		162		—		—		162
Depletion, depreciation and amortization		—		—		41,739		23		—		41,762
Accretion of ARO liability		—		—		293		—		—		293
General and administrative		—		2,878		4,601		25		—		7,504
Total operating expenses		—		2,878		57,013		48		—		59,939
Operating income (loss)		—		(2,233)		(31,800)		(48)		—		(34,081)
Other income (expense)
Interest expense		—		(15,038)		240		—		—		(14,798)
Gain on debt extinguishment		—		90,652		—		—		—		90,652
Net gain (loss) on commodity derivatives		—		17,219		—		—		—		17,219
Other income (expense)		429		(200)		(4)		—		—		225
Other income (expense), net		429		92,633		236		—		—		93,298
Income (loss) before income tax		429		90,400		(31,564)		(48)		—		59,217
Equity interest in income		28,968		—		—		—		(28,968)		—
Income tax provision (benefit)		10,486		217		—		—		—		10,703
Net income (loss)		18,911		90,183		(31,564)		(48)		(28,968)		48,514
Net income (loss) attributable to non-controlling interests		—		—		—		—		29,603		29,603
Net income (loss) attributable to controlling interests	$	18,911	$	—	$	—	$	—	$	—	$	18,911

Condensed Consolidating Statement of Cash Flows

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(1,387)	$	6,926	$	(11,042)	$	(67)	$	2,055	$	(3,515)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(23,060)		(11,848)		53,994		67		(2,055)		17,098
Net cash (used in) / provided by operations		(24,447)		(4,922)		42,952		—		—		13,583
Cash flows from investing activities
Additions to oil and gas properties		—		—		(47,110)		—		—		(47,110)
Net adjustments to purchase price of properties acquired		—		—		2,391		—		—		2,391
Proceeds from sales of assets		—		—		144		—		—		144
Acquisition of other property, plant and equipment		—		—		(192)		—		—		(192)
Current period settlements of matured derivative contracts		—		27,854		—		—		—		27,854
Net cash (used in) / provided by investing		—		27,854		(44,767)		—		—		(16,913)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		30,000		—		—		—		30,000
Repayment of long-term debt		—		(53,000)		—		—		—		(53,000)
Payment of dividends on preferred stock		(1,840)		—		—		—		—		(1,840)
Net distributions paid to JEH unitholders		1,075		(1,637)		—		—		—		(562)
Net payments for share based compensation		—		(31)		—		—		—		(31)
Proceeds from sale of common stock		2,829		—		—		—		—		2,829
Net cash (used in) / provided by financing		2,064		(24,668)		—		—		—		(22,604)
Net increase (decrease) in cash		(22,383)		(1,736)		(1,815)		—		—		(25,934)
Cash
Beginning of period		27,164		1,975		5,483		20		—		34,642
End of period	$	4,781	$	239	$	3,668	$	20	$	—	$	8,708

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	18,911	$	90,183	$	(31,564)	$	(48)	$	(28,968)	$	48,514
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(18,911)		(134,122)		70,677		48		28,968		(53,340)
Net cash (used in) / provided by operations		—		(43,939)		39,113		—		—		(4,826)
Cash flows from investing activities
Additions to oil and gas properties		—		—		(7,176)		—		—		(7,176)
Proceeds from sales of assets		—		—		3		—		—		3
Acquisition of other property, plant and equipment		—		—		40		—		—		40
Current period settlements of matured derivative contracts		—		42,298				—		—		42,298
Net cash (used in) / provided by investing		—		42,298		(7,133)		—		—		35,165
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		75,000		—		—		—		75,000
Purchase of senior notes		—		(73,427)		—		—		—		(73,427)
Net cash (used in) / provided by financing		—		1,573		—		—		—		1,573
Net increase (decrease) in cash		—		(68)		31,980		—		—		31,912
Cash												—
Beginning of period		100		12,448		9,325		20		—		21,893
End of period	$	100	$	12,380	$	41,305	$	20	$	—	$	53,805