Subsidiary Guarantors (Tables)

9 Months Ended

Sep. 30, 2017

Table Text Blocks

Condensed Consolidating Balance Sheet

Jones Energy, Inc.

Condensed Consolidating Balance Sheet

September 30, 2017

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	3,254	$	35	$	2,169	$	20	$	—	$	5,478
Accounts receivable, net
Oil and gas sales		—		—		29,136		—		—		29,136
Joint interest owners		—		—		17,533		—		—		17,533
Other		—		2,162		1,708		—		—		3,870
Commodity derivative assets		—		7,590		—		—		—		7,590
Other current assets		3,128		431		6,832		—		—		10,391
Intercompany receivable		199,444		1,104,136		—		—		(1,303,580)		—
Total current assets		205,826		1,114,354		57,378		20		(1,303,580)		73,998
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,578,739		—		—		1,578,739
Other property, plant and equipment, net		—		—		2,015		550		—		2,565
Commodity derivative assets		—		1,608		—		—		—		1,608
Other assets		—		3,707		961		—		—		4,668
Investment in subsidiaries		292,368		298,896		—		—		(591,264)		—
Total assets	$	498,194	$	1,418,565	$	1,639,093	$	570	$	(1,894,844)	$	1,661,578
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	—	$	59	$	67,491	$	—	$	—	$	67,550
Oil and gas sales payable		—		—		21,510		—		—		21,510
Accrued liabilities		33		14,593		9,845		1		—		24,472
Commodity derivative liabilities		—		15,696		—		—		—		15,696
Other current liabilities		639		1,985		600		—		—		3,224
Intercompany payable		—		—		1,300,579		3,001		(1,303,580)		—
Total current liabilities		672		32,333		1,400,025		3,002		(1,303,580)		132,452
Long-term debt		—		698,740		—		—		—		698,740
Deferred revenue		—		5,632		—		—		—		5,632
Commodity derivative liabilities		—		5,355		—		—		—		5,355
Asset retirement obligations		—		—		19,239		—		—		19,239
Liability under tax receivable agreement		55,096		—		—		—		—		55,096
Other liabilities		—		310		700		—		—		1,010
Deferred tax liabilities		—		2,732		—		—		—		2,732
Total liabilities		55,768		745,102		1,419,964		3,002		(1,303,580)		920,256
Mezzanine equity
Series A preferred stock, $0.001 par value; 1,839,995 shares issued and outstanding at September 30, 2017		89,413		—		—		—		—		89,413
Stockholders’/ members' equity (deficit)
Members' equity		—		673,463		219,129		(2,432)		(890,160)		—
Class A common stock, $0.001 par value; 74,376,391 shares issued and 74,353,789 shares outstanding at September 30, 2017		74		—		—		—		—		74
Class B common stock, $0.001 par value; 23,718,779 shares issued and outstanding at September 30, 2017		24		—		—		—		—		24
Treasury stock, at cost: 22,602 shares at September 30, 2017		(358)		—		—		—		—		(358)
Additional paid-in-capital		534,499		—		—		—		—		534,499
Retained earnings (deficit)		(181,226)		—		—		—		—		(181,226)
Stockholders' equity (deficit)		353,013		673,463		219,129		(2,432)		(890,160)		353,013
Non-controlling interest		—		—		—		—		298,896		298,896
Total stockholders’ equity		353,013		673,463		219,129		(2,432)		(591,264)		651,909
Total liabilities and stockholders’ equity	$	498,194	$	1,418,565	$	1,639,093	$	570	$	(1,894,844)	$	1,661,578

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 September 30, 2017

					Guarantor		Non-Guarantor
(inthousands of dollars)	JEI(Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	43,636	$	—	$	—	$	43,636
Other revenues		—		475		91		—		—		566
Total operating revenues		—		475		43,727		—		—		44,202
Operating costs and expenses
Lease operating		—		—		9,458		—		—		9,458
Production and ad valorem taxes		—		—		2,757		—		—		2,757
Exploration		—		—		1,969		—		—		1,969
Depletion, depreciation and amortization		—		—		46,330		23		—		46,353
Impairment of oil and gas properties		—		—		—		—		—		—
Accretion of ARO liability		—		—		253		—		—		253
General and administrative		—		3,044		4,705		70		—		7,819
Total operating expenses		—		3,044		65,472		93		—		68,609
Operating income (loss)		—		(2,569)		(21,745)		(93)		—		(24,407)
Other income (expense)
Interest expense		—		(12,917)		100		—		—		(12,817)
Net gain (loss) on commodity derivatives		—		(32,539)		—		—		—		(32,539)
Other income (expense)		(12,417)		(25)		(1,250)		—		—		(13,692)
Other income (expense), net		(12,417)		(45,481)		(1,150)		—		—		(59,048)
Income (loss) before income tax		(12,417)		(48,050)		(22,895)		(93)		—		(83,455)
Equity interest in income (loss)		(52,955)		(18,083)		—		—		71,038		—
Income tax provision (benefit)		(566)		74		—		—		—		(492)
Net income (loss)		(64,806)		(66,207)		(22,895)		(93)		71,038		(82,963)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(18,157)		(18,157)
Net income (loss) attributable to controlling interests	$	(64,806)	$	(66,207)	$	(22,895)	$	(93)	$	89,195	$	(64,806)
Dividends and accretion on preferred stock		(1,966)		—		—		—		—		(1,966)
Net income (loss) attributable to common shareholders	$	(66,772)	$	(66,207)	$	(22,895)	$	(93)	$	89,195	$	(66,772)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2017

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	132,427	$	—	$	—	$	132,427
Other revenues		—		1,417		217		—		—		1,634
Total operating revenues		—		1,417		132,644		—		—		134,061
Operating costs and expenses
Lease operating		—		—		27,689		—		—		27,689
Production and ad valorem taxes		—		—		4,641		—		—		4,641
Exploration		—		—		11,638		—		—		11,638
Depletion, depreciation and amortization		—		—		127,275		68		—		127,343
Impairment of oil and gas properties		—		—		148,016		—		—		148,016
Accretion of ARO liability		—		—		720		—		—		720
General and administrative		—		8,957		15,336		200		—		24,493
Total operating expenses		—		8,957		335,315		268		—		344,540
Operating income (loss)		—		(7,540)		(202,671)		(268)		—		(210,479)
Other income (expense)
Interest expense		—		(38,673)		292		—		—		(38,381)
Net gain (loss) on commodity derivatives		—		11,308		—		—		—		11,308
Other income (expense)		15,831		(72)		(1,370)		—		—		14,389
Other income (expense), net		15,831		(27,437)		(1,078)		—		—		(12,684)
Income (loss) before income tax		15,831		(34,977)		(203,749)		(268)		—		(223,163)
Equity interest in income (loss)		(167,027)		(71,966)		—		—		238,993		—
Income tax provision (benefit)		(2,787)		80		—		—		—		(2,707)
Net income (loss)		(148,409)		(107,023)		(203,749)		(268)		238,993		(220,456)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(72,047)		(72,047)
Net income (loss) attributable to controlling interests	$	(148,409)	$	(107,023)	$	(203,749)	$	(268)	$	311,040	$	(148,409)
Dividends and accretion on preferred stock		(5,959)		—		—		—		—		(5,959)
Net income (loss) attributable to common shareholders	$	(154,368)	$	(107,023)	$	(203,749)	$	(268)	$	311,040	$	(154,368)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2016

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	32,582	$	—	$	—	$	32,582
Other revenues		—		587		184		—		—		771
Total operating revenues		—		587		32,766		—		—		33,353
Operating costs and expenses
Lease operating		—		—		7,865		—		—		7,865
Production and ad valorem taxes		—		—		1,733		—		—		1,733
Exploration		—		—		998		—		—		998
Depletion, depreciation and amortization		—		—		36,527		23		—		36,550
Accretion of ARO liability		—		—		323		—		—		323
General and administrative		—		2,928		3,476		44		—		6,448
Total operating expenses		—		2,928		50,922		67		—		53,917
Operating income (loss)		—		(2,341)		(18,156)		(67)		—		(20,564)
Other income (expense)
Interest expense		—		(12,652)		(140)		—		—		(12,792)
Net gain (loss) on commodity derivatives		—		4,014		—		—		—		4,014
Other income (expense)		261		(25)		128		—		—		364
Other income (expense), net		261		(8,663)		(12)		—		—		(8,414)
Income (loss) before income tax		261		(11,004)		(18,168)		(67)		—		(28,978)
Equity interest in income (loss)		(15,999)		(13,240)		—		—		29,239		—
Income tax provision (benefit)		(5,885)		(664)		—		—		—		(6,549)
Net income (loss)		(9,853)		(23,580)		(18,168)		(67)		29,239		(22,429)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(12,576)		(12,576)
Net income (loss) attributable to controlling interests	$	(9,853)	$	(23,580)	$	(18,168)	$	(67)	$	41,815	$	(9,853)
Dividends and accretion on preferred stock		(765)		—		—		—		—		(765)
Net income (loss) attributable to common shareholders	$	(10,618)	$	(23,580)	$	(18,168)	$	(67)	$	41,815	$	(10,618)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2016

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	86,060	$	—	$	—	$	86,060
Other revenues		—		1,828		467		—		—		2,295
Total operating revenues		—		1,828		86,527		—		—		88,355
Operating costs and expenses
Lease operating		—		—		24,027		—		—		24,027
Production and ad valorem taxes		—		—		5,061		—		—		5,061
Exploration		—		—		1,237		—		—		1,237
Depletion, depreciation and amortization		—		—		116,385		64		—		116,449
Accretion of ARO liability		—		—		913		—		—		913
General and administrative		—		8,782		13,087		209		—		22,078
Total operating expenses		—		8,782		160,710		273		—		169,765
Operating income (loss)		—		(6,954)		(74,183)		(273)		—		(81,410)
Other income (expense)
Interest expense		—		(40,417)		20		—		—		(40,397)
Gain on debt extinguishment		—		99,530		—		—		—		99,530
Net gain (loss) on commodity derivatives		—		(18,769)		—		—		—		(18,769)
Other income (expense)		423		(298)		126		—		—		251
Other income (expense), net		423		40,046		146		—		—		40,615
Income (loss) before income tax		423		33,092		(74,037)		(273)		—		(40,795)
Equity interest in income (loss)		(22,130)		(19,088)		—		—		41,218		—
Income tax provision (benefit)		(7,520)		(714)		—		—		—		(8,234)
Net income (loss)		(14,187)		14,718		(74,037)		(273)		41,218		(32,561)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(18,374)		(18,374)
Net income (loss) attributable to controlling interests	$	(14,187)	$	14,718	$	(74,037)	$	(273)	$	59,592	$	(14,187)
Dividends and accretion on preferred stock		(765)		—		—		—		—		(765)
Net income (loss) attributable to common shareholders	$	(14,952)	$	14,718	$	(74,037)	$	(273)	$	59,592	$	(14,952)

Condensed Consolidating Statement of Cash Flows

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2017

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI(Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(148,409)	$	(107,023)	$	(203,749)	$	(268)	$	238,993	$	(220,456)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		118,459		64,770		317,377		268		(238,993)		261,881
Net cash (used in) / provided by operations		(29,950)		(42,253)		113,628		—		—		41,425
Cash flows from investing activities
Additions to oil and gas properties		—		—		(179,152)		—		—		(179,152)
Net adjustments to purchase price of properties acquired		—		—		2,391		—		—		2,391
Proceeds from sales of assets		—		—		60,422		—		—		60,422
Acquisition of other property, plant and equipment		—		—		(603)		—		—		(603)
Current period settlements of matured derivative contracts		—		69,412		—		—		—		69,412
Net cash (used in) / provided by investing		—		69,412		(116,942)		—		—		(47,530)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		102,000		—		—		—		102,000
Repayment of long-term debt		—		(129,000)		—		—		—		(129,000)
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		8,332		—		—		—		—		8,332
Net cash (used in) / provided by financing		6,040		(29,099)		—		—		—		(23,059)
Net increase (decrease) in cash		(23,910)		(1,940)		(3,314)		—		—		(29,164)
Cash
Beginning of period		27,164		1,975		5,483		20		—		34,642
End of period	$	3,254	$	35	$	2,169	$	20	$	—	$	5,478

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2016

					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI(Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(14,187)	$	14,718	$	(74,037)	$	(273)	$	41,218	$	(32,561)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(134,592)		(53,206)		276,213		273		(41,218)		47,470
Net cash (used in) / provided by operations		(148,779)		(38,488)		202,176		—		—		14,909
Cash flows from investing activities
Additions to oil and gas properties		—		—		(212,419)		—		—		(212,419)
Proceeds from sales of assets		—		—		1,615		—		—		1,615
Acquisition of other property, plant and equipment		—		—		(194)		—		—		(194)
Current period settlements of matured derivative contracts		—		106,151		—		—		—		106,151
Net cash (used in) / provided by investing		—		106,151		(210,998)		—		—		(104,847)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		75,000		—		—		—		75,000
Repayment under long-term debt		—		(42,000)		—		—		—		(42,000)
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		65,548		—		—		—		—		65,548
Proceeds from sale of preferred stock		88,236		—		—		—		—		88,236
Net cash (used in) / provided by financing		163,694		(71,608)		—		—		—		92,086
Net increase (decrease) in cash		14,915		(3,945)		(8,822)		—		—		2,148
Cash												—
Beginning of period		100		12,448		9,325		20		—		21,893
End of period	$	15,015	$	8,503	$	503	$	20	$	—	$	24,041