SIGNIFICANT CONCENTRATIONS

During most of the first quarter of 2019 and throughout 2018, ARM Energy Management, LLC (“ARM”) marketed our oil, gas and NGLs for a marketing fee that is deducted from sales proceeds collected by ARM from purchasers. The sales are generally made under short-term contracts with month-to-month pricing based on published regional indices, adjusted for transportation, location and quality. In March 2019, in preparation for handling oil and NGL marketing responsibilities internally, we began receiving payments for the sale of oil and NGLs directly from purchasers and separately paying the marketing fee owed to ARM. As of June 1, 2019, we terminated our oil and NGL marketing agreement with ARM and have begun marketing such products internally. We have extended the term of our gas marketing agreement with ARM through November 30, 2019.

ARM also provides us with strategic advice, execution and reporting services with respect to our derivatives activities.



	Successor				Predecessor
(in thousands)	Three Months Ended March 31, 2019		February 9, 2018 Through March 31, 2018		January 1, 2018 Through February 8, 2018
Revenue marketed by ARM on our behalf	$	93,391	$	41,216	$	28,757

Marketing and management fees paid to ARM	$	697	$	—	$	—
Fees paid to ARM for services relating to our derivatives	193		74		66
Total fees paid to ARM	$	890	$	74	$	66

Receivables from ARM for sales on our behalf were $13.0 million and $43.8 million as of March 31, 2019 and December 31, 2018, respectively, which are reflected in accounts receivable on our balance sheets.

We believe that the loss of any of our customers, or of our marketing agent ARM, would not have a material adverse effect on us because alternative purchasers are readily available.