DISCONTINUED OPERATIONS (Predecessor)

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Alta Mesa distributed its remaining non-STACK oil and gas assets and liabilities to High Mesa just prior to the closing of the Business Combination. We have determined that these non-STACK oil and gas assets and liabilities are discontinued operations during the Predecessor Periods and we have segregated their financial information in the financial statements.

Prior to the Business Combination, Alta Mesa had notes payable to its founder (“Founder Notes”) that bore simple interest at 10%. The Founder Notes were part of the non-STACK distribution. The balance of the Founder Notes at the time of conversion

was approximately $28.3 million, including accrued interest. Interest on the Founder Notes was $0.1 million for the 2018 Predecessor Period.



(in thousands)	January 1, 2018 Through February 8, 2018
Revenue:
Oil	$	1,617
Natural gas	1,023
Natural gas liquids	236
Other	16
Operating revenue	2,892
Loss on sale of assets	(1,923		)
Total revenue	969
Operating expenses:
Lease operating	1,770
Transportation and marketing	83
Production taxes	167
Workovers	127
Depreciation, depletion and amortization	884
Impairment of assets	5,560
General and administrative	21
Total operating expenses	8,612
Other income (expense)
Interest expense	(103		)
Total other expense	(103		)
Loss from discontinued operations, net of state income taxes	$	(7,746	)



(in thousands)	January 1, 2018 Through February 8, 2018
Total operating cash flows of discontinued operations	$	2,974
Total investing cash flows of discontinued operations	(601		)