Note

- Chapter

Proceeding and Emergence

July 8, 2016,

C&J Energy Services Ltd., a Bermuda corporation (the “Predecessor”) and certain of its direct and indirect subsidiaries (collectively, the “Debtors”), including C&J Corporate Services (Bermuda) Ltd. (together with the Predecessor, the “Bermudian Entities”), C&J Energy Production Services-Canada Ltd. and Mobile Data Technologies Ltd. (together, the “Canadian Entities”), entered into a Restructuring Support and Lock-Up Agreement (the “Restructuring Support Agreement”), with certain lenders (the “Supporting Lenders”) holding approximately

90.0%

of the secured claims and interests arising under the Credit Agreement, dated as of

March

24,

2015

(as amended and otherwise modified, the “Original Credit Agreement”). The Restructuring Support Agreement contemplated the implementation of a financial restructuring of the Company, including the elimination of all amounts owed under the Original Credit Agreement through a complete debt-to-equity conversion and a re-investment in the Company through an equity rights offering. This financial restructuring was effectuated through the Restructuring Plan under Chapter

of the Bankruptcy Code.

To implement the Restructuring Support Agreement, on

July 20, 2016

(

the “Petition Date”), the Debtors filed voluntary petitions for reorganization (the “Bankruptcy Petitions”) seeking relief under the provisions of Chapter

of the Bankruptcy Code with the

United States Bankruptcy Court in the Southern District of Texas, Houston Division

(the “Bankruptcy Court”), and also commenced ancillary proceedings in Canada on behalf of the Canadian Entities and a provisional liquidation proceeding in Bermuda on behalf of the Bermudian Entities (collectively, the “Chapter

Proceeding”). The Chapter

Proceeding was being administered under the caption “

In re: CJ Holding Co., et al., Case

No.

33590

”. Throughout the Chapter

Proceeding, the Debtors continued operations and management of their assets in the ordinary course as debtors-in-possession under the jurisdiction of the Bankruptcy Court in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

In accordance with the Restructuring Support Agreement, the Debtors filed the plan of reorganization (the " Restructuring Plan") and related disclosure statement (the “Disclosure Statement”) with the Bankruptcy Court on

August 19, 2016,

with a

first

amendment to the Restructuring Plan filed on

September 28, 2016

and a

second

amendment filed on

November 3, 2016.

November 4, 2016,

the Bankruptcy Court approved the Disclosure Statement, finding that the Disclosure Statement contained adequate information as required by the Bankruptcy Code. The Debtors then launched a solicitation of acceptances of the Restructuring Plan, as required by the Bankruptcy Code. On

December

16,

2016,

an order confirming the Restructuring Plan was entered by the Bankruptcy Court. On

January 6, 2017 (

the "Plan Effective Date"), the Debtors substantially consummated the Restructuring Plan and emerged from the Chapter

Proceeding. As part of the transactions undertaken pursuant to the Restructuring Plan, as of the Plan Effective Date, the Successor was formed, the Predecessor's equity was canceled, the Predecessor transferred all of its assets and operations to the Successor and the Predecessor was subsequently dissolved. As a result, the Successor became the successor issuer to the Predecessor. For additional information regarding the Chapter

Proceeding and Emergence, please read the Company’s Annual Report on Form

-K for the fiscal year ended

December

31,

2017.

Reorganization Items

The Company classifies all income, expenses, gains or losses that were incurred or realized as a result of the Chapter

Proceeding as reorganization items in its consolidated statements of operations. In addition, the Company reports professional fees and related costs associated with and incurred during the Chapter

Proceeding as reorganization items. The components of reorganization items are as follows (in thousands):

	On January 1, 2017
Gain on settlement of liabilities subject to compromise	$	666,399
Net loss on fresh start fair value adjustments		(358,557	)
Professional fees		(13,435	)
Vendor claims adjustment		(438	)
Total reorganization items	$	293,969

While the Company’s emergence from bankruptcy is complete, certain administrative activities will continue under the authority of the Bankruptcy Court through at least the remainder of

2018.