UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 1, 2017
Jones Energy, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
|
001-36006 |
|
80-0907968 |
(State or Other Jurisdiction of |
|
(Commission File |
|
(I.R.S. Employer Identification No.) |
807 Las Cimas Parkway, Suite 350 |
78746 |
(Address of Principal Executive Offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (512) 328-2953
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 2.01 Completion of Acquisition or Disposition of Assets.
As previously announced, on June 22, 2017, Jones Energy, Inc. (“Jones Energy” or “the Company”) entered into a definitive agreement (the “Arkoma Agreement”) to sell its Arkoma Basin properties (the “Divestiture”) for a purchase price of $65.0 million, subject to customary adjustments. The Company closed the Divestiture on August 1, 2017. The Company may also receive a contingent payment of up to $2.5 million based on improving natural gas prices. Unaudited pro forma condensed consolidated information of the Company to give effect to the Divestiture is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
On August 1, 2017, Jones Energy issued a press release announcing the closing of the Divestiture. A copy of the press release is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.
The information disclosed in Item 7.01, including Exhibit 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial information:
Unaudited pro forma information of the Company to give effect to the disposition of our Arkoma assets is filed as Exhibit 99.1 and is incorporated by reference:
-- Unaudited pro forma condensed consolidated balance sheets as of June 30, 2017
-- Unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2017 and the year ended December 31, 2016
(d) Exhibits
Exhibit No. |
|
Description |
99.1 |
|
Unaudited Pro Forma Condensed Consolidated Financial Statements. |
99.2 |
|
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
JONES ENERGY, INC. |
|
|
|
|
|
|
|
Date: August 7, 2017 |
By: |
/s/ Robert J. Brooks |
|
|
Robert J. Brooks |
|
|
Executive Vice President and Chief Financial Officer |
3
EXHIBIT INDEX
Exhibit No. |
|
Description |
99.1 |
|
Unaudited Pro Forma Condensed Consolidated Financial Statements. |
99.2 |
|
Press Release of Jones Energy, Inc., dated August 1, 2017. |
4
Exhibit 99.1
Unaudited Pro Forma Condensed Consolidated Financial Statements
Introduction
On June 22, 2017, Jones Energy, Inc. (“Jones Energy” or “the Company”) entered into a definitive agreement (the “Arkoma Agreement”) to sell its Arkoma Basin properties (the “Divestiture”) for a purchase price of $65.0 million, subject to customary adjustments. The Company closed the Divestiture on August 1, 2017. The Divestiture does not qualify as discontinued operations as it does not represent a strategic shift that will have a major effect on the Company’s operations or financial results.
The unaudited pro forma condensed consolidated financial data of the Company was derived from historical condensed consolidated financial statements. The unaudited pro forma condensed consolidated balance sheet assumes the Divestiture occurred on June 30, 2017. The unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2017 and the year ended December 31, 2016 give effect to the Divestiture as if it occurred as of January 1, 2016. The following unaudited pro forma condensed consolidated financial information should be read in conjunction with the Company’s historical financial statements and accompanying notes.
The pro forma adjustments are based on the best information available and assumptions that management believes are factually supportable and reasonable; however, such adjustments are subject to change. In addition, such adjustments are estimates. The unaudited pro forma condensed consolidated financial information is for illustrative and informational purposes only and is not intended to reflect what the Company’s consolidated financial position and results of operations would have been had the Divestiture occurred on the dates indicated and is not necessarily indicative of the Company’s future consolidated financial position and results of operations.
The pro forma adjustments remove the Divestiture’s consolidated assets, liabilities and results of operations and also give effect to adjustments to reflect the cash proceeds from the Divestiture. The Company expects to use the cash proceeds to repay outstanding borrowings under its revolving credit facility.
Jones Energy, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheets
June 30, 2017
(in thousands of dollars) |
|
Historical |
|
Pro Forma |
(a) |
Adjusted for |
|
Pro Forma |
(b) |
Unaudited |
|||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
6,254 |
|
$ |
54,165 |
|
$ |
60,419 |
|
$ |
(64,200) |
|
$ |
(3,781) |
Accounts receivable, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas sales |
|
|
24,557 |
|
|
— |
|
|
24,557 |
|
|
— |
|
|
24,557 |
Joint interest owners |
|
|
9,032 |
|
|
— |
|
|
9,032 |
|
|
— |
|
|
9,032 |
Other |
|
|
7,205 |
|
|
— |
|
|
7,205 |
|
|
— |
|
|
7,205 |
Commodity derivative assets |
|
|
39,823 |
|
|
— |
|
|
39,823 |
|
|
— |
|
|
39,823 |
Other current assets |
|
|
11,381 |
|
|
— |
|
|
11,381 |
|
|
— |
|
|
11,381 |
Assets held for sale |
|
|
3,455 |
|
|
(3,455) |
|
|
— |
|
|
— |
|
|
— |
Total current assets |
|
|
101,707 |
|
|
50,710 |
|
|
152,417 |
|
|
(64,200) |
|
|
88,217 |
Assets held for sale, net |
|
|
64,200 |
|
|
(64,200) |
|
|
— |
|
|
— |
|
|
— |
Oil and gas properties, net, at cost under the successful efforts method |
|
|
1,545,991 |
|
|
— |
|
|
1,545,991 |
|
|
— |
|
|
1,545,991 |
Other property, plant and equipment, net |
|
|
2,812 |
|
|
— |
|
|
2,812 |
|
|
— |
|
|
2,812 |
Commodity derivative assets |
|
|
5,914 |
|
|
— |
|
|
5,914 |
|
|
— |
|
|
5,914 |
Other assets |
|
|
5,395 |
|
|
— |
|
|
5,395 |
|
|
— |
|
|
5,395 |
Total assets |
|
$ |
1,726,019 |
|
$ |
(13,490) |
|
$ |
1,712,529 |
|
$ |
(64,200) |
|
$ |
1,648,329 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable |
|
$ |
56,053 |
|
$ |
— |
|
$ |
56,053 |
|
$ |
— |
|
$ |
56,053 |
Oil and gas sales payable |
|
|
22,301 |
|
|
— |
|
|
22,301 |
|
|
— |
|
|
22,301 |
Accrued liabilities |
|
|
19,571 |
|
|
— |
|
|
19,571 |
|
|
— |
|
|
19,571 |
Commodity derivative liabilities |
|
|
3,036 |
|
|
— |
|
|
3,036 |
|
|
— |
|
|
3,036 |
Other current liabilities |
|
|
8,099 |
|
|
(4,875) |
|
|
3,224 |
|
|
— |
|
|
3,224 |
Liabilities related to assets held for sale |
|
|
7,472 |
|
|
(7,472) |
|
|
— |
|
|
— |
|
|
— |
Total current liabilities |
|
|
116,532 |
|
|
(12,347) |
|
|
104,185 |
|
|
— |
|
|
104,185 |
Liabilities related to assets held for sale |
|
|
1,143 |
|
|
(1,143) |
|
|
— |
|
|
— |
|
|
— |
Long-term debt |
|
|
728,163 |
|
|
— |
|
|
728,163 |
|
|
(64,200) |
|
|
663,963 |
Deferred revenue |
|
|
6,106 |
|
|
— |
|
|
6,106 |
|
|
— |
|
|
6,106 |
Commodity derivative liabilities |
|
|
123 |
|
|
— |
|
|
123 |
|
|
— |
|
|
123 |
Asset retirement obligations |
|
|
19,061 |
|
|
— |
|
|
19,061 |
|
|
— |
|
|
19,061 |
Liability under tax receivable agreement |
|
|
11,807 |
|
|
— |
|
|
11,807 |
|
|
— |
|
|
11,807 |
Other liabilities |
|
|
902 |
|
|
— |
|
|
902 |
|
|
— |
|
|
902 |
Deferred tax liabilities |
|
|
2,911 |
|
|
— |
|
|
2,911 |
|
|
— |
|
|
2,911 |
Total liabilities |
|
|
886,748 |
|
|
(13,490) |
|
|
873,258 |
|
|
(64,200) |
|
|
809,058 |
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at June 30, 2017 |
|
|
89,288 |
|
|
— |
|
|
89,288 |
|
|
— |
|
|
89,288 |
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock, $0.001 par value; 66,671,659 shares issued and 66,649,057 shares outstanding at June 30, 2017 |
|
|
67 |
|
|
— |
|
|
67 |
|
|
— |
|
|
67 |
Class B common stock, $0.001 par value; 29,823,927 shares issued and outstanding at June 30, 2017 |
|
|
30 |
|
|
— |
|
|
30 |
|
|
— |
|
|
30 |
Treasury stock, at cost: 22,602 shares at June 30, 2017 |
|
|
(358) |
|
|
— |
|
|
(358) |
|
|
— |
|
|
(358) |
Additional paid-in-capital |
|
|
477,390 |
|
|
— |
|
|
477,390 |
|
|
— |
|
|
477,390 |
Retained (deficit) / earnings |
|
|
(121,477) |
|
|
— |
|
|
(121,477) |
|
|
— |
|
|
(121,477) |
Stockholders' equity |
|
|
355,652 |
|
|
— |
|
|
355,652 |
|
|
— |
|
|
355,652 |
Non-controlling interest |
|
|
394,331 |
|
|
— |
|
|
394,331 |
|
|
— |
|
|
394,331 |
Total stockholders’ equity |
|
|
749,983 |
|
|
— |
|
|
749,983 |
|
|
— |
|
|
749,983 |
Total liabilities and stockholders' equity |
|
$ |
1,726,019 |
|
$ |
(13,490) |
|
$ |
1,712,529 |
|
$ |
(64,200) |
|
$ |
1,648,329 |
See accompanying notes.
Jones Energy, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the six months ended June 30, 2017
(in thousands except per share data) |
|
Historical |
|
Pro Forma |
(c) |
Adjusted for |
|
Pro Forma |
(d) |
Unaudited |
|||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas sales |
|
$ |
88,791 |
|
$ |
(9,988) |
|
$ |
78,803 |
|
$ |
— |
|
$ |
78,803 |
Other revenues |
|
|
1,068 |
|
|
— |
|
|
1,068 |
|
|
— |
|
|
1,068 |
Total operating revenues |
|
|
89,859 |
|
|
(9,988) |
|
|
79,871 |
|
|
— |
|
|
79,871 |
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
|
18,231 |
|
|
(1,490) |
|
|
16,741 |
|
|
— |
|
|
16,741 |
Production and ad valorem taxes |
|
|
1,884 |
|
|
(1,190) |
|
|
694 |
|
|
— |
|
|
694 |
Exploration |
|
|
9,669 |
|
|
— |
|
|
9,669 |
|
|
— |
|
|
9,669 |
Depletion, depreciation and amortization |
|
|
80,990 |
|
|
(9,524) |
|
|
71,466 |
|
|
— |
|
|
71,466 |
Impairment of oil and gas properties |
|
|
161,886 |
|
|
— |
|
|
161,886 |
|
|
— |
|
|
161,886 |
Accretion of ARO liability |
|
|
467 |
|
|
(35) |
|
|
432 |
|
|
— |
|
|
432 |
General and administrative |
|
|
16,674 |
|
|
— |
|
|
16,674 |
|
|
— |
|
|
16,674 |
Total operating expenses |
|
|
289,801 |
|
|
(12,239) |
|
|
277,562 |
|
|
— |
|
|
277,562 |
Operating income (loss) |
|
|
(199,942) |
|
|
2,251 |
|
|
(197,691) |
|
|
— |
|
|
(197,691) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(25,564) |
|
|
— |
|
|
(25,564) |
|
|
734 |
|
|
(24,830) |
Net gain (loss) on commodity derivatives |
|
|
43,847 |
|
|
— |
|
|
43,847 |
|
|
— |
|
|
43,847 |
Other income (expense) |
|
|
30,414 |
|
|
(502) |
|
|
29,912 |
|
|
(164) |
|
|
29,748 |
Other income (expense), net |
|
|
48,697 |
|
|
(502) |
|
|
48,195 |
|
|
570 |
|
|
48,765 |
Income (loss) before income tax |
|
|
(151,245) |
|
|
1,749 |
|
|
(149,496) |
|
|
570 |
|
|
(148,926) |
Income tax provision |
|
|
(2,398) |
|
|
171 |
|
|
(2,227) |
|
|
— |
|
|
(2,227) |
Net income (loss) |
|
|
(148,847) |
|
|
1,578 |
|
|
(147,269) |
|
|
570 |
|
|
(146,699) |
Net income (loss) attributable to non-controlling interests |
|
|
(58,221) |
|
|
682 |
|
|
(57,539) |
|
|
240 |
|
|
(57,299) |
Net income (loss) attributable to controlling interests |
|
$ |
(90,626) |
|
$ |
896 |
|
$ |
(89,730) |
|
$ |
330 |
|
$ |
(89,400) |
Dividends and accretion on preferred stock |
|
|
(3,993) |
|
|
— |
|
|
(3,993) |
|
|
— |
|
|
(3,993) |
Net income (loss) attributable to common shareholders |
|
$ |
(94,619) |
|
$ |
896 |
|
$ |
(93,723) |
|
$ |
330 |
|
$ |
(93,393) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic - Net income (loss) attributable to common shareholders |
|
$ |
(1.48) |
|
$ |
— |
|
$ |
(1.47) |
|
$ |
— |
|
|
(1.46) |
Diluted - Net income (loss) attributable to common shareholders |
|
$ |
(1.48) |
|
$ |
— |
|
$ |
(1.47) |
|
$ |
— |
|
|
(1.46) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Class A shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
63,948 |
|
|
— |
|
|
63,948 |
|
|
— |
|
|
63,948 |
Diluted |
|
|
63,948 |
|
|
— |
|
|
63,948 |
|
|
— |
|
|
63,948 |
See accompanying notes.
Jones Energy, Inc.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the twelve months ended December 31, 2016
(in thousands except per share data) |
|
Historical |
|
Pro Forma |
(c) |
Adjusted for |
|
Pro Forma |
(d) |
Unaudited |
|||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas sales |
|
$ |
124,877 |
|
$ |
(15,677) |
|
$ |
109,200 |
|
$ |
— |
|
$ |
109,200 |
Other revenues |
|
|
2,970 |
|
|
— |
|
|
2,970 |
|
|
— |
|
|
2,970 |
Total operating revenues |
|
|
127,847 |
|
|
(15,677) |
|
|
112,170 |
|
|
— |
|
|
112,170 |
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
|
32,640 |
|
|
(3,237) |
|
|
29,403 |
|
|
— |
|
|
29,403 |
Production and ad valorem taxes |
|
|
7,768 |
|
|
(2,418) |
|
|
5,350 |
|
|
— |
|
|
5,350 |
Exploration |
|
|
6,673 |
|
|
— |
|
|
6,673 |
|
|
— |
|
|
6,673 |
Depletion, depreciation and amortization |
|
|
153,930 |
|
|
(19,078) |
|
|
134,852 |
|
|
— |
|
|
134,852 |
Accretion of ARO liability |
|
|
1,263 |
|
|
(102) |
|
|
1,161 |
|
|
— |
|
|
1,161 |
General and administrative |
|
|
29,640 |
|
|
— |
|
|
29,640 |
|
|
— |
|
|
29,640 |
Other operating |
|
|
199 |
|
|
— |
|
|
199 |
|
|
— |
|
|
199 |
Total operating expenses |
|
|
232,113 |
|
|
(24,835) |
|
|
207,278 |
|
|
— |
|
|
207,278 |
Operating income (loss) |
|
|
(104,266) |
|
|
9,158 |
|
|
(95,108) |
|
|
— |
|
|
(95,108) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(53,127) |
|
|
— |
|
|
(53,127) |
|
|
1,187 |
|
|
(51,940) |
Gain on debt extinguishment |
|
|
99,530 |
|
|
— |
|
|
99,530 |
|
|
— |
|
|
99,530 |
Net gain (loss) on commodity derivatives |
|
|
(51,264) |
|
|
— |
|
|
(51,264) |
|
|
— |
|
|
(51,264) |
Other income (expense) |
|
|
536 |
|
|
(657) |
|
|
(121) |
|
|
(17) |
|
|
(138) |
Other income (expense), net |
|
|
(4,325) |
|
|
(657) |
|
|
(4,982) |
|
|
1,170 |
|
|
(3,812) |
Income (loss) before income tax |
|
|
(108,591) |
|
|
8,501 |
|
|
(100,090) |
|
|
1,170 |
|
|
(98,920) |
Income tax provision |
|
|
(23,786) |
|
|
1,168 |
|
|
(22,618) |
|
|
184 |
|
|
(22,434) |
Net income (loss) |
|
|
(84,805) |
|
|
7,333 |
|
|
(77,472) |
|
|
986 |
|
|
(76,486) |
Net income (loss) attributable to non-controlling interests |
|
|
(42,253) |
|
|
4,255 |
|
|
(37,998) |
|
|
524 |
|
|
(37,474) |
Net income (loss) attributable to controlling interests |
|
$ |
(42,552) |
|
$ |
3,078 |
|
$ |
(39,474) |
|
$ |
462 |
|
$ |
(39,012) |
Dividends and accretion on preferred stock |
|
|
(2,669) |
|
|
— |
|
|
(2,669) |
|
|
|
|
|
(2,669) |
Net income (loss) attributable to common shareholders |
|
|
(45,221) |
|
|
3,078 |
|
|
(42,143) |
|
|
462 |
|
|
(41,681) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic - Net income (loss) attributable to common shareholders (as adjusted) |
|
|
(1.04) |
|
|
— |
|
|
(0.97) |
|
|
— |
|
|
(0.96) |
Diluted - Net income (loss) attributable to common shareholders (as adjusted) |
|
|
(1.04) |
|
|
— |
|
|
(0.97) |
|
|
— |
|
|
(0.96) |
Weighted average Class A shares outstanding (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (as adjusted) |
|
|
43,506 |
|
|
— |
|
|
43,506 |
|
|
— |
|
|
43,506 |
Diluted (as adjusted) |
|
|
43,506 |
|
|
— |
|
|
43,506 |
|
|
— |
|
|
43,506 |
(1) |
All share and earnings per share information presented has been recast to retrospectively adjust for the effects of the 0.087423 per share Special Stock Dividend, distributed on March 31, 2017. |
See accompanying notes.
Jones Energy, Inc.
Notes to the Consolidated Financial Statements
1. Basis of Presentation
The unaudited pro forma condensed consolidated financial statements give effect to the pro forma adjustments necessary to reflect the Divestiture as if it had occurred as of January 1, 2016 in the unaudited pro forma statements of operations for the six months ended June 30, 2017 and the year ended December 31, 2016 and on June 30, 2017 in the unaudited pro forma balance sheet. The Company agreed to sell the Arkoma Basin properties for $65.0 million and incurred closing adjustments of $6.5 million to arrive at closing consideration of $58.5 million in cash, subject to customary post-closing adjustments.
2. Pro Forma Adjustments
The unaudited pro forma condensed consolidated financial statements reflect the following adjustments:
Balance Sheet
“Historical” represents the historical condensed consolidated balance sheet of Jones Energy, Inc. as of June 30, 2017.
(a) |
Pro forma adjustment to remove the assets and liabilities sold in the Divestiture. The purchase price of $65.0 million was reduced by closing adjustments through the balance sheet date and by the deposit of $4.9 million associated with the pending sale which was included in Other current liabilities on the Company’s Consolidated Balance Sheet as of June 30, 2017. This adjustment removes that liability and presents the cash proceeds net of the deposit and net of closing adjustments through the balance sheet date. |
(b) |
Pro forma adjustment to reflect the cash proceeds from the Divestiture, which are assumed to be used toward the repayment of long-term debt. |
Statement of Operations
“Historical” represents the historical condensed consolidated statements of operations of Jones Energy, Inc. for the six months ended June 30, 2017 and for the year ended December 31, 2016.
(c) |
Pro forma adjustment to eliminate revenues and expenses of the assets sold in the Divestiture from the Company’s consolidated statements of operations. This adjustment also (i) reflects the change in the balance of the tax receivable agreement, included in other income (expense), to reflect the impact of the change in valuation allowance recorded against the Company’s deferred tax assets, (ii) reflects the change in the tax provision associated with the assets and liabilities sold in the Divestiture, and (iii) reflects the change in income allocation between controlling and non-controlling interest associated with the assets and liabilities sold in the Divestiture. |
(d) |
Pro forma adjustment to reflect the reduction in interest expense as a result of the repayment of long-term debt with the proceeds from the Divestiture. This adjustment also (i) reflects the change in the balance of the tax receivable agreement, included in other income (expense), to reflect the impact of the change in valuation allowance recorded against the Company’s deferred tax assets, (ii) reflects the change in the tax provision associated with the repayment of long-term debt with the proceeds from the Divestiture, and (iii) reflects the change in income allocation between controlling and non-controlling interest associated with the repayment of long-term debt with the proceeds from the Divestiture. |
Exhibit 99.2
JONES ENERGY, INC. ANNOUNCES CLOSING OF ARKOMA BASIN SALE AND SCHEDULES 2017 SECOND QUARTER EARNINGS RELEASE AND CONFERENCE CALL
Austin, TX – August 1, 2017 – Jones Energy, Inc. (NYSE: JONE) (“Jones Energy” or “the Company”) announced today the closing of its previously announced Arkoma Basin divestiture for $65 million, subject to customary closing adjustments.
Jonny Jones, founder, chairman and CEO said, “The sale of our Arkoma Basin properties is a significant catalyst in our deleveraging story. Jones Energy is now a pure play Anadarko Basin company and we are using proceeds from the sale to pay down debt and focus our attention on the Merge. I look forward to updating you with additional asset sales as they occur and updating you with details on our second quarter earnings later this week.”
2017 Second Quarter Earnings Release and Conference Call
The Company also announced today that it plans to release its second quarter 2017 financial and operational results on Thursday, August 3, 2017 after the market closes. In connection with the earnings release, Jones Energy will host a conference call for investors and analysts to discuss its results on Friday, August 4, 2017 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (833) 231-8272 (for domestic U.S.) or (647) 689-4117 (International) and entering conference code 56297957.
If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko basin of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Investor Contact:
Page Portas, 512-493-4834
Investor Relations Associate
Or
Robert Brooks, 512-328-2953
Executive Vice President & CFO
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expected use of proceeds from the transactions contemplated by the Arkoma Basin divestiture, and the Company’s continued marketing of non-core assets. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current economic and market conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.