FRESH-START ACCOUNTING (Tables)

12 Months Ended

Dec. 31, 2018

The following table reconciles the enterprise value to the estimated fair value of Successor Company's common stock as of the Effective Date (in thousands, except per share amounts):



Enterprise Value	$	642,999
Plus: Cash and cash equivalents	70,183
Less: Interest bearing liabilities	(29,061		)
Less: Fair value of warrants	(4,081		)
Fair value of Successor common stock	$	680,040

Shares outstanding at April 28, 2017	20,356

Per share value	$	33.41

Successor Condensed Consolidated Balance Sheet

The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date (in thousands):



Enterprise Value	$	642,999
Plus: Cash and cash equivalents	70,183
Plus: Working capital liabilities	63,871
Plus: Other long-term liabilities	17,919
Reorganization value of Successor assets	$	794,972

The explanatory notes highlight methods used to determine estimated fair values or other amounts of assets and liabilities, as well as significant assumptions.



	Predecessor Company			Reorganization Adjustments				Fresh-Start Adjustments				Successor Company
	(in thousands, except share amounts)
ASSETS
Current Assets:
Cash and cash equivalents	$	96,286		$	(26,103	)	(1)	$	—			$	70,183
Accounts receivable:
Oil and gas sales	24,876			—				—				24,876
Joint interest and other	3,028			—				—				3,028
Prepaid expenses and other	4,952			—				—				4,952
Inventory of oilfield equipment	4,218			—				—				4,218
Total current assets	133,360			(26,103		)		—				107,257
Property and equipment (successful efforts method):
Proved properties	2,531,834			—				(2,031,373		)	(6)	500,461
Less: accumulated depreciation, depletion and amortization	(1,720,736		)	—				1,720,736			(6)	—
Total proved properties, net	811,098			—				(310,637		)		500,461
Unproved properties	163,781			—				14,679			(6)	178,460
Wells in progress	18,002			—				(18,002		)	(7)	—
Other property and equipment, net	6,056			—				—				6,056
Total property and equipment, net	998,937			—				(313,960		)		684,977



Other noncurrent assets	2,738			—				—				2,738
Total assets	$	1,135,035		$	(26,103	)		$	(313,960	)		$	794,972

LIABILITIES AND STOCKHOLDERS'S EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	72,635		$	(33,701	)	(2)	$	—			$	38,934
Oil and gas revenue distribution payable	24,937			—				—				24,937
Predecessor credit facility - current portion	191,667			(191,667		)	(3)	—				—
Total current liabilities	289,239			(225,368		)		—				63,871
Long-term liabilities:
Ad valorem taxes	17,919			—				—				17,919
Asset retirement obligations for oil and gas properties	31,660			—				(2,599		)	(8)	29,061
Liabilities subject to compromise	873,292			(873,292		)	(4)	—				—
Total liabilities	$	1,212,110		$	(1,098,660	)		$	(2,599	)		$	110,851
Stockholders' equity:
Predecessor preferred stock	—			—				—				—
Predecessor common stock	49			—				(49		)	(9)	—
Additional paid in capital	816,679			—				(816,679		)	(9)	—
Successor common stock	—			204			(5)	—				204
Successor warrants	—			4,081			(5)	—				4,081
Additional paid-in capital	—			679,836			(5)	—				679,836
Retained deficit	(893,803		)	388,436			(4)	505,367			(10)	—
Total stockholders' equity	(77,075		)	1,072,557				(311,361		)		684,121
Total liabilities and stockholders' equity	$	1,135,035		$	(26,103	)		$	(313,960	)		$	794,972

Schedule of Net Cash Payments Made Upon Emergence

The following table reflects the net cash payments made upon emergence on the Effective Date (in thousands):



Sources:
Proceeds from rights offering	$	200,000
Proceeds from ad hoc equity committee	7,500
Total sources	$	207,500
Uses and transfers:
Payment on predecessor credit facility (principal, interest and fees)	$	(193,729	)
Payment and funding of escrow account related to professional fees	(17,193		)
Payment of professional fees and other	(13,831		)
Payment of Silo contract settlement and other	(7,228		)
Payment of remaining 2016 STIP	(1,622		)
Total uses and transfers	$	(233,603	)

Total net sources, uses and transfers	$	(26,103	)

Schedule of Accounts Payable and Accrued Liabilities Attributable to Reorganization Items

The following table shows the decrease of accounts payable and accrued liabilities attributable to reorganization items settled or paid upon emergence (in thousands):



Accounts payable and accrued expenses:
Accrued 2016 STIP payment	$	(1,574	)
Escrow account funding	(17,193		)
Professional fees and other	(13,831		)
Accrued unpaid interest on predecessor credit facility	(1,103		)
Total accounts payable and accrued expenses settled	$	(33,701	)

Schedule of Liabilities Subject to Compromise

On the Effective Date, the obligations of the Company with respect to the Senior Notes were canceled. Liabilities subject to compromise were settled as follows in accordance with the Plan (in thousands):



Senior Notes	$	800,000
Accrued interest on Senior Notes (pre-petition)	14,879
Make-whole payment on Senior Notes	51,185
Silo contract settlement accrual	7,228
Total liabilities subject to compromise of the predecessor	873,292

Rights offering	200,000
Fair value of equity issued to creditors, excluding equity issued to existing equity holders	(653,212		)
Payment of Silo contract settlement	(7,228		)
Gain on settlement of liabilities subject to compromise	412,852

Payment on predecessor credit facility fees and remaining unaccrued 2016 STIP	(1,007		)

Total reorganization items at emergence	$	411,845

Issuance of warrants to existing shareholders	$	(4,081	)
Proceeds from ad hoc equity committee	7,500
Issuance of shares to existing shareholders	(26,828		)
Total reorganization adjustments to retained deficit	$	388,436

Schedule of Reorganization Items

The following table summarizes reorganization items recorded in the Current Predecessor Period (in thousands):



Gain on settlement of liabilities subject to compromise	$	412,852
Payment on predecessor credit facility fees and remaining unaccrued 2016 STIP	(1,007		)
Fresh-start valuation adjustments	(311,361		)
Legal and professional fees and expenses	(34,335		)
Write-off of debt issuance and premium costs	(6,156		)
Make-whole payment on Senior Notes	(51,185		)
Total reorganization items, net	$	8,808