Restatement of Previously Issued Financial Statements

As previously disclosed, we determined that instead of using updated oil and natural gas reserve estimates to calculate depreciation, depletion and amortization (“DD&A”) expense calculations looking back to the beginning of the applicable fiscal year, we instead should have used the updated oil and natural gas reserve estimates to calculate DD&A looking back to the beginning of the applicable current quarter. This methodology resulted in the understatement of DD&A expense and the overstatement of oil and gas properties, as well as the related income tax effects.

We concluded that the impact of applying the correct oil and natural gas reserve revision methodology to the DD&A calculation was materially different from our previously reported results under our historical practice. As a result, we are restating our condensed consolidated financial statements for the periods impacted.

The table below sets forth the condensed consolidated statements of operations, including the balances originally reported, corrections and the as restated balances for each period:



	Three Months Ended
	June 30, 2018									June 30, 2017
(In thousands except per share data)	As Previously Reported			Correction			As Restated			As Previously Reported			Correction			As Restated
Depreciation, depletion and amortization	$	19,464		$	1,273		$	20,737		$	12,551		$	947		$	13,498
Total expenses	34,017			1,273			35,290			50,715			947			51,662
Income (loss) from operations	13,835			(1,273		)	12,562			(32,580		)	(947		)	(33,527		)
Loss before income taxes	(23,423		)	(1,273		)	(24,696		)	(35,369		)	(947		)	(36,316		)
Income tax benefit (expense)	4,648			(1,545		)	3,103			12,208			393			12,601
Net loss attributable to common stockholders	(20,707		)	(2,818		)	(23,525		)	(23,457		)	(554		)	(24,011		)
Net loss per common share:
Basic	$	(0.84	)	$	(0.12	)	$	(0.96	)	$	(1.07	)	$	(0.03	)	$	(1.10	)
Diluted	$	(0.84	)	$	(0.12	)	$	(0.96	)	$	(1.07	)	$	(0.03	)	$	(1.10	)



	Six Months Ended
	June 30, 2018									June 30, 2017
(In thousands except per share data)	As Previously Reported			Correction			As Restated			As Previously Reported			Correction			As Restated
Depreciation, depletion and amortization	$	35,027		$	1,135		$	36,162		$	24,693		$	779		$	25,472
Total expenses	61,307			1,135			62,442			69,663			779			70,442
Income (loss) from operations	23,237			(1,135		)	22,102			(33,912		)	(779		)	(34,691		)
Loss before income taxes	(43,206		)	(1,135		)	(44,341		)	(30,717		)	(779		)	(31,496		)
Income tax benefit (expense)	7,778			(1,567		)	6,211			10,621			277			10,898
Net loss attributable to common stockholders	(39,249		)	(2,702		)	(41,951		)	(20,392		)	(502		)	(20,894		)
Net loss per common share
Basic	$	(1.60	)	$	(0.11	)	$	(1.71	)	$	(0.93	)	$	(0.03	)	$	(0.96	)
Diluted	$	(1.60	)	$	(0.11	)	$	(1.71	)	$	(0.93	)	$	(0.03	)	$	(0.96	)

The table below sets forth the condensed consolidated balance sheet, including the balances originally reported, corrections and the as restated balances for the restated period:



	June 30, 2018
(In thousands)	As Previously Reported			Correction			As Restated
Assets
Accumulated depreciation, depletion and amortization	$	(294,049	)	$	(16,127	)	(310,176	)
Net property and equipment	633,880			(16,127		)	617,753
Deferred tax assets, net	—			1,662			1,662
Total assets	656,723			(14,465		)	642,258
Liabilities and Stockholders' equity
Deferred tax liabilities, net	106			(106		)	—
Total long-term liabilities	374,508			(106		)	374,402
Accumulated deficit	(137,608		)	(14,358		)	(151,966	)
Total stockholders' equity	179,516			(14,358		)	165,158

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances originally reported, corrections and the as restated balances for each period:



	Six Months Ended
	June 30, 2018						June 30, 2017
(In thousands)	As Previously Reported		Correction		As Restated		As Previously Reported			Correction			As Restated
Cash flows from operating activities:
Net (loss) income	(35,428	)	(2,702	)	(38,130	)	$	(20,096	)	$	(502	)	$	(20,598	)
Depreciation, depletion and amortization	35,027		1,135		36,162		24,693			779			25,472
Deferred taxes	(7,999	)	1,567		(6,432	)	(10,985		)	(277		)	(11,262		)
Net cash provided by operating activities	38,751		—		38,751		17,112			—			17,112

The restatement had no impact on cash flows from investing activities or financing activities.

The table below sets forth the condensed consolidated statement of stockholders’ equity, including the balances originally reported, corrections and the as restated balances for the period:



				Total
	Accumulated			Stockholders'
(In thousands)	Deficit			Equity
Balance at June 30, 2018, as previously reported	$	(137,608	)	$	179,516
Correction	(14,358		)	(14,358		)
Balance at June 30, 2018, as restated	(151,966		)	165,158

In addition to the restated consolidated financial statements, the information contained in Note 3 has been restated.