Chapter 11 Proceedings (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Liabilities Subject to Compromise

Following are the components of liabilities subject to compromise included on the condensed consolidated balance sheet:



(in thousands)	September 30, 2019
2024 Notes	$	500,000
Accounts payable and accrued liabilities	21,670
Accrued interest payable on 2024 Notes	9,515
Operating lease liabilities	1,996
Liabilities subject to compromise	$	533,181

Schedule of Reorganization Items

Following are the components of reorganization items, net included in our Condensed Consolidated Statements of Operations:



(in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Unamortized deferred financing fees and premiums	$	24,748		$	24,748
Terminated contracts	394			394
Legal and other professional advisory fees	(2,675		)	(2,675		)
Reorganization items, net	$	22,467		$	22,467

Schedule of Financials

Condensed Combined Financial Information of Debtors

Combined Statement of Operations (Unaudited)



(in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Revenue
Oil	$	84,010		$	261,041
Natural gas	10,788			41,622
Natural gas liquids	8,333			29,800
Other	302			1,200
Operating revenue	103,433			333,663
Gain on sale of assets	—			1,483
Loss on derivatives	(379		)	(11,744		)
Total revenue	103,054			323,402
Operating expenses
Lease operating	18,071			62,302
Transportation and marketing	17,561			54,936
Production taxes	4,673			15,273
Workovers	757			1,366
Exploration	40,847			46,190
Depreciation, depletion and amortization	33,407			102,586
Impairment of assets	387,721			394,221
General and administrative	19,781			62,869
Total operating expenses	522,818			739,743
Operating income	(419,764		)	(416,341		)
Other income (expenses)
Interest expense	(12,233		)	(39,134		)
Interest income	45			126
Reorganization items, net	22,467			22,467
Total other income (expense), net	10,279			(16,541		)
Loss from continuing operations before income taxes	(409,485		)	(432,882		)
Net loss	$	(409,485	)	$	(432,882	)

Combined Balance Sheet (Unaudited)



(in thousands)	September 30, 2019
ASSETS
Current assets
Cash and cash equivalents	$	58,143
Restricted cash	951
Accounts receivable, net	55,666
Other receivables	1,171
Related party receivables, net	17,419
Note receivables from related parties, net	—
Prepaid expenses and other current assets	6,948
Total current assets	140,298
Property and equipment, net
Oil and gas properties, successful efforts method	365,343
Other property and equipment	36,818
Total property and equipment, net	402,161
Other assets
Investment in subsidiary	1,504,147
Operating lease right-of-use assets, net	7,113
Deposits and other long-term assets	6,171
Total other assets	1,517,431
Total assets	$	2,059,890

LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Current portion of debt	$	340,004
Accounts payable and accrued liabilities	51,722
Accounts payable - related parties	18,301
Advances from non-operators	619
Advances from related party	2,607
Asset retirement obligations, current portion	74
Current operating lease liability	650
Total current liabilities	413,977
Long-term liabilities
Asset retirement obligations, net of current portion	12,717
Operating lease liabilities, net of current portion	10,569
Total long-term liabilities	23,286
Liabilities subject to compromise	533,181
Total liabilities	970,444
Partners’ capital	1,089,446
Total liabilities and partners’ capital	$	2,059,890

Combined Statement of Cash Flows (Unaudited)



(in thousands)	Nine Months Ended September 30, 2019
Cash flows from operating activities:
Net loss	$	(432,882	)
Adjustments to reconcile net loss to cash from operating activities:
Depreciation, depletion and amortization	102,586
Non-cash lease expense	2,216
Provision for uncollectible receivables	1,139
Impairment of assets	394,221
Non-cash reorganization items, net	(25,142		)
Amortization of deferred financing costs	195
Amortization of debt premium	(3,432		)
Equity-based compensation expense	4,453
Non-cash exploration expense	40,245
(Gain) loss on derivatives	11,744
Cash settlements of derivatives	7,642
Cash paid for derivatives	(1,906		)
Impact on cash from changes in:
Accounts receivable	12,441
Other receivables	5,097
Related party receivables	3,826
Prepaid expenses and other assets	(12,127		)
Advances from related party	(7,215		)
Settlement of asset retirement obligations	(180		)
Accounts payable, accrued liabilities and other liabilities	8,494
Operating lease obligations	(2,151		)
Cash from operating activities	109,264
Cash flows from investing activities:
Capital expenditures	(243,709		)
Distribution received from subsidiary	691
Cash from investing activities	(243,018		)
Cash flows from financing activities:
Proceeds from long-term debt borrowings	183,500
Repayments of long-term debt	(4,496		)
Payment of taxes withheld on equity-based compensation awards	(141		)
Cash from financing activities	178,863
Net increase in cash, cash equivalents and restricted cash	45,109
Cash, cash equivalents and restricted cash, beginning of period	13,985
Cash, cash equivalents and restricted cash, end of period	$	59,094