Subsidiary Guarantors (Tables)

6 Months Ended

Jun. 30, 2017

Jones Energy, Inc.

Condensed Consolidating Balance Sheet

June 30, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	3,254	$	781	$	2,199	$	20	$	—	$	6,254
Accounts receivable, net
Oil and gas sales		—		—		24,557		—		—		24,557
Joint interest owners		—		—		9,032		—		—		9,032
Other		—		3,943		3,262		—		—		7,205
Commodity derivative assets		—		39,823		—		—		—		39,823
Other current assets		2,746		311		8,324		—		—		11,381
Assets held for sale		—		—		3,455		—		—		3,455
Intercompany receivable		18,567		1,204,759		—		—		(1,223,326)		—
Total current assets		24,567		1,249,617		50,829		20		(1,223,326)		101,707
Assets held for sale, net		—		—		64,200		—		—		64,200
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,545,991		—		—		1,545,991
Other property, plant and equipment, net		—		—		2,239		573		—		2,812
Commodity derivative assets		—		5,914		—		—		—		5,914
Other assets		—		4,467		928		—		—		5,395
Investment in subsidiaries		432,964		394,331		—		—		(827,295)		—
Total assets	$	457,531	$	1,654,329	$	1,664,187	$	593	$	(2,050,621)	$	1,726,019
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	27	$	62	$	55,964	$	—	$	—	$	56,053
Oil and gas sales payable		—		—		22,301		—		—		22,301
Accrued liabilities		33		11,418		8,120		—		—		19,571
Commodity derivative liabilities		—		3,036		—		—		—		3,036
Other current liabilities		639		1,985		5,475		—		—		8,099
Liabilities related to assets held for sale		—		—		7,472		—		—		7,472
Intercompany payable		—		—		1,220,390		2,936		(1,223,326)		—
Total current liabilities		699		16,501		1,319,722		2,936		(1,223,326)		116,532
Liabilities related to assets held for sale		—		—		1,143		—		—		1,143
Long-term debt		—		728,163		—		—		—		728,163
Deferred revenue		—		6,106		—		—		—		6,106
Commodity derivative liabilities		—		123		—		—		—		123
Asset retirement obligations		—		—		19,061		—		—		19,061
Liability under tax receivable agreement		11,807		—		—		—		—		11,807
Other liabilities		—		236		666		—		—		902
Deferred tax liabilities		85		2,826		—		—		—		2,911
Total liabilities		12,591		753,955		1,340,592		2,936		(1,223,326)		886,748
Mezzanine equity
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at June 30, 2017		89,288		—		—		—		—		89,288
Stockholders’/ members' equity (deficit)
Members' equity		—		900,374		323,595		(2,343)		(1,221,626)		—
Class A common stock, $0.001 par value; 66,671,659 shares issued and 66,649,057 shares outstanding at June 30, 2017		67		—		—		—		—		67
Class B common stock, $0.001 par value; 29,823,927 shares issued and outstanding at June 30, 2017		30		—		—		—		—		30
Treasury stock, at cost: 22,602 shares at June 30, 2017		(358)		—		—		—		—		(358)
Additional paid-in-capital		477,390		—		—		—		—		477,390
Retained earnings (deficit)		(121,477)		—		—		—		—		(121,477)
Stockholders' equity (deficit)		355,652		900,374		323,595		(2,343)		(1,221,626)		355,652
Non-controlling interest		—		—		—		—		394,331		394,331
Total stockholders’ equity		355,652		900,374		323,595		(2,343)		(827,295)		749,983
Total liabilities and stockholders’ equity	$	457,531	$	1,654,329	$	1,664,187	$	593	$	(2,050,621)	$	1,726,019

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		1,100,834		—		—		(1,116,500)		—
Total current assets		42,830		1,132,765		40,207		20		(1,116,500)		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		453,237		—		—		(984,600)		—
Total assets	$	574,193	$	1,626,011	$	1,786,958	$	638	$	(2,101,100)	$	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		—		—		1,113,704		2,796		(1,116,500)		—
Total current liabilities		3,874		27,874		1,189,754		2,805		(1,116,500)		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		1,209,735		2,805		(1,116,500)		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 (deficit)
Members' equity		—		862,781		577,223		(2,167)		(1,437,837)		—
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 (deficit)		438,214		862,781		577,223		(2,167)		(1,437,837)		438,214
Non-controlling interest		—		—		—		—		453,237		453,237
Total stockholders’ equity		438,214		862,781		577,223		(2,167)		(984,600)		891,451
Total liabilities and stockholders’ equity	$	574,193	$	1,626,011	$	1,786,958	$	638	$	(2,101,100)	$	1,886,700

Condensed Consolidating Statement of Operations

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended June 30, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	48,114	$	—	$	—	$	48,114
Other revenues		—		485		27		—		—		512
Total operating revenues		—		485		48,141		—		—		48,626
Operating costs and expenses
Lease operating		—		—		9,425		—		—		9,425
Production and ad valorem taxes		—		—		2,790		—		—		2,790
Exploration		—		—		6,725		—		—		6,725
Depletion, depreciation and amortization		—		—		45,313		23		—		45,336
Impairment of oil and gas properties		—		—		161,886		—		—		161,886
Accretion of ARO liability		—		—		266		—		—		266
General and administrative		—		2,920		5,626		87		—		8,633
Total operating expenses		—		2,920		232,031		110		—		235,061
Operating income (loss)		—		(2,435)		(183,890)		(110)		—		(186,435)
Other income (expense)
Interest expense		—		(12,941)		264		—		—		(12,677)
Net gain (loss) on commodity derivatives		—		21,527		—		—		—		21,527
Other income (expense)		29,913		(24)		(55)		—		—		29,834
Other income (expense), net		29,913		8,562		209		—		—		38,684
Income (loss) before income tax		29,913		6,127		(183,681)		(110)		—		(147,751)
Equity interest in income (loss)		(121,557)		(56,107)		—		—		177,664		—
Income tax provision (benefit)		(2,405)		(14)		—		—		—		(2,419)
Net income (loss)		(89,239)		(49,966)		(183,681)		(110)		177,664		(145,332)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(56,093)		(56,093)
Net income (loss) attributable to controlling interests	$	(89,239)	$	(49,966)	$	(183,681)	$	(110)	$	233,757	$	(89,239)
Dividends and accretion on preferred stock		(1,966)		—		—		—		—		(1,966)
Net income (loss) attributable to common shareholders	$	(91,205)	$	(49,966)	$	(183,681)	$	(110)	$	233,757	$	(91,205)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	88,791	$	—	$	—	$	88,791
Other revenues		—		942		126		—		—		1,068
Total operating revenues		—		942		88,917		—		—		89,859
Operating costs and expenses
Lease operating		—		—		18,231		—		—		18,231
Production and ad valorem taxes		—		—		1,884		—		—		1,884
Exploration		—		—		9,669		—		—		9,669
Depletion, depreciation and amortization		—		—		80,945		45		—		80,990
Impairment of oil and gas properties		—		—		161,886		—		—		161,886
Accretion of ARO liability		—		—		467		—		—		467
General and administrative		—		5,913		10,630		131		—		16,674
Total operating expenses		—		5,913		283,712		176		—		289,801
Operating income (loss)		—		(4,971)		(194,795)		(176)		—		(199,942)
Other income (expense)
Interest expense		—		(25,755)		191		—		—		(25,564)
Net gain (loss) on commodity derivatives		—		43,847		—		—		—		43,847
Other income (expense)		30,581		(48)		(119)		—		—		30,414
Other income (expense), net		30,581		18,044		72		—		—		48,697
Income (loss) before income tax		30,581		13,073		(194,723)		(176)		—		(151,245)
Equity interest in income (loss)		(123,611)		(58,215)		—		—		181,826		—
Income tax provision (benefit)		(2,404)		6		—		—		—		(2,398)
Net income (loss)		(90,626)		(45,148)		(194,723)		(176)		181,826		(148,847)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(58,221)		(58,221)
Net income (loss) attributable to controlling interests	$	(90,626)	$	(45,148)	$	(194,723)	$	(176)	$	240,047	$	(90,626)
Dividends and accretion on preferred stock		(3,993)		—		—		—		—		(3,993)
Net income (loss) attributable to common shareholders	$	(94,619)	$	(45,148)	$	(194,723)	$	(176)	$	240,047	$	(94,619)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended June 30, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	28,398	$	—	$	—	$	28,398
Other revenues		—		596		150		—		—		746
Total operating revenues		—		596		28,548		—		—		29,144
Operating costs and expenses
Lease operating		—		—		7,545		—		—		7,545
Production and ad valorem taxes		—		—		1,727		—		—		1,727
Exploration		—		—		77		—		—		77
Depletion, depreciation and amortization		—		—		38,118		19		—		38,137
Accretion of ARO liability		—		—		297		—		—		297
General and administrative		—		3,293		4,806		27		—		8,126
Total operating expenses		—		3,293		52,570		46		—		55,909
Operating income (loss)		—		(2,697)		(24,022)		(46)		—		(26,765)
Other income (expense)
Interest expense		—		(12,727)		(80)		—		—		(12,807)
Gain on debt extinguishment		—		8,878		—		—		—		8,878
Net gain (loss) on commodity derivatives		—		(40,002)		—		—		—		(40,002)
Other income (expense)		(267)		(73)		2		—		—		(338)
Other income (expense), net		(267)		(43,924)		(78)		—		—		(44,269)
Income (loss) before income tax		(267)		(46,621)		(24,100)		(46)		—		(71,034)
Equity interest in income (loss)		(35,100)		(35,667)		—		—		70,767		—
Income tax provision (benefit)		(12,122)		(266)		—		—		—		(12,388)
Net income (loss)		(23,245)		(82,022)		(24,100)		(46)		70,767		(58,646)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(35,401)		(35,401)
Net income (loss) attributable to controlling interests	$	(23,245)	$	(82,022)	$	(24,100)	$	(46)	$	106,168	$	(23,245)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	53,478	$	—	$	—	$	53,478
Other revenues		—		1,241		283		—		—		1,524
Total operating revenues		—		1,241		53,761		—		—		55,002
Operating costs and expenses
Lease operating		—		—		16,162		—		—		16,162
Production and ad valorem taxes		—		—		3,328		—		—		3,328
Exploration		—		—		239		—		—		239
Depletion, depreciation and amortization		—		—		79,857		42		—		79,899
Accretion of ARO liability		—		—		590		—		—		590
General and administrative		—		6,171		9,407		52		—		15,630
Total operating expenses		—		6,171		109,583		94		—		115,848
Operating income (loss)		—		(4,930)		(55,822)		(94)		—		(60,846)
Other income (expense)
Interest expense		—		(27,766)		161		—		—		(27,605)
Gain on debt extinguishment		—		99,530		—		—		—		99,530
Net gain (loss) on commodity derivatives		—		(22,783)		—		—		—		(22,783)
Other income (expense)		162		(274)		(1)		—		—		(113)
Other income (expense), net		162		48,707		160		—		—		49,029
Income (loss) before income tax		162		43,777		(55,662)		(94)		—		(11,817)
Equity interest in income (loss)		(6,132)		(5,847)		—		—		11,979		—
Income tax provision (benefit)		(1,636)		(49)		—		—		—		(1,685)
Net income (loss)		(4,334)		37,979		(55,662)		(94)		11,979		(10,132)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(5,798)		(5,798)
Net income (loss) attributable to controlling interests	$	(4,334)	$	37,979	$	(55,662)	$	(94)	$	17,777	$	(4,334)

Condensed Consolidating Statement of Cash Flows

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2017


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(90,626)	$	(45,148)	$	(194,723)	$	(176)	$	181,826	$	(148,847)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		60,656		(2,685)		294,004		176		(181,826)		170,325
Net cash (used in) / provided by operations		(29,970)		(47,833)		99,281		—		—		21,478
Cash flows from investing activities
Additions to oil and gas properties		—		—		(107,250)		—		—		(107,250)
Net adjustments to purchase price of properties acquired		—		—		2,391		—		—		2,391
Proceeds from sales of assets		—		—		2,730		—		—		2,730
Acquisition of other property, plant and equipment		—		—		(436)		—		—		(436)
Current period settlements of matured derivative contracts		—		45,738		—		—		—		45,738
Net cash (used in) / provided by investing		—		45,738		(102,565)		—		—		(56,827)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		75,000		—		—		—		75,000
Repayment of long-term debt		—		(72,000)		—		—		—		(72,000)
Payment of cash dividends on preferred stock		(3,367)		—		—		—		—		(3,367)
Net distributions paid to JEH unitholders		1,075		(1,637)		—		—		—		(562)
Net payments for share based compensation		—		(462)		—		—		—		(462)
Proceeds from sale of common stock		8,352		—		—		—		—		8,352
Net cash (used in) / provided by financing		6,060		901		—		—		—		6,961
Net increase (decrease) in cash		(23,910)		(1,194)		(3,284)		—		—		(28,388)
Cash
Beginning of period		27,164		1,975		5,483		20		—		34,642
End of period	$	3,254	$	781	$	2,199	$	20	$	—	$	6,254

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(4,334)	$	37,979	$	(55,662)	$	(94)	$	11,979	$	(10,132)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		3,278		(86,767)		111,506		94		(11,979)		16,132
Net cash (used in) / provided by operations		(1,056)		(48,788)		55,844		—		—		6,000
Cash flows from investing activities
Additions to oil and gas properties		—		—		(27,592)		—		—		(27,592)
Proceeds from sales of assets		—		—		5		—		—		5
Acquisition of other property, plant and equipment		—		—		12		—		—		12
Current period settlements of matured derivative contracts		—		77,622		—		—		—		77,622
Net cash (used in) / provided by investing		—		77,622		(27,575)		—		—		50,047
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		75,000		—		—		—		75,000
Purchase of senior notes		—		(84,589)		—		—		—		(84,589)
Net distributions paid to JEH unitholders		9,910		(20,019)		—		—		—		(10,109)
Proceeds from sale of common stock		1,056		—		—		—		—		1,056
Net cash (used in) / provided by financing		10,966		(29,608)		—		—		—		(18,642)
Net increase (decrease) in cash		9,910		(774)		28,269		—		—		37,405
Cash												—
Beginning of period		100		12,448		9,325		20		—		21,893
End of period	$	10,010	$	11,674	$	37,594	$	20	$	—	$	59,298