The following fresh-start condensed consolidated balance sheet presents the implementation of the Plan and the adoption of fresh-start accounting as of December 15, 2016. Reorganization adjustments have been recorded within the condensed consolidated balance sheet to reflect the effects of the Plan, including discharge of liabilities subject to compromise and the adoption of fresh-start accounting in accordance with ASC 852 (in thousands).



	Predecessor Company			Reorganization Adjustments (A)				Fresh Start Adjustments				Successor Company
ASSETS
Current assets:
Cash and cash equivalents	$	38,751		$	52,437		B	$	—			$	91,188
Restricted cash	19,292			5,400			C	—				24,692
Accounts receivable, net	72,560			(210		)	D	—				72,350
Inventories	22,900			—				383			N	23,283
Other current assets	27,648			(2,295		)	E	—				25,353
Total current assets	181,151			55,332				383				236,866
Property and equipment, gross	2,235,828			—				(1,827,392		)	O	408,436
Accumulated depreciation	(1,523,585		)	—				1,523,585			O	—
Property and equipment, net	712,243			—				(303,807		)		408,436
Other intangible assets, net	3,596			—				(3,076		)	P	520
Other assets	17,428			—				369			Q	17,797
TOTAL ASSETS	$	914,418		$	55,332			$	(306,131	)		$	663,619
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	12,338		$	—			$	—			$	12,338
Other current liabilities	99,524			(1,032		)	F	(264		)	R	98,228
Current portion of long-term debt	(3,099		)	5,599			G	—				2,500
Total current liabilities	108,763			4,567				(264		)		113,066
Long-term debt	—			245,460			H	—				245,460
Workers’ compensation, vehicular and health insurance liabilities	23,126			—				—				23,126
Deferred tax liabilities	35			—				—				35
Other non-current liabilities	35,754			332			I	(6,284		)	S	29,802
Liabilities subject to compromise	996,527			(996,527		)	J	—				—
Equity:
Common stock	16,055			(15,854		)	K	—				201
Additional paid-in capital	969,915			252,516			L	(970,502		)	T	251,929
Accumulated other comprehensive loss	(40,394		)	—				40,394			T	—
Retained earnings (deficit)	(1,195,363		)	564,838			M	630,525			T	—
Total equity	(249,787		)	801,500				(299,583		)		252,130
TOTAL LIABILITIES AND EQUITY	$	914,418		$	55,332			$	(306,131	)		$	663,619

Reorganization and Fresh Start Adjustments

Reorganization Adjustments (in thousands)

Represents amounts recorded on the Effective Date for the implementation of the Plan, including the settlement of liabilities subject to compromise, issuance of new debt and repayment of old debt, reinstatement of contract rejection obligations, write-off of debt issuance costs, proceeds received from the rights offering, distributions of Successor common stock and the Warrants, the cancellation of the Predecessor common stock, and the cancellation of the Predecessor stock incentive plan.



B.	The Effective Date cash activity from the implementation of the Plan and the Rights Offering are as follows:
	Sources:
		Proceeds from Rights Offering	$	108,984
		Overfunding of Rights Offering to be returned	98
		Total Sources	$	109,082
	Uses:
		Payment of Predecessor Term Loan Facility	$	(38,876	)
		Payment of interest on Predecessor Term Loan Facility	(4,277		)
		Payment of bank fees	(2,126		)
		Transfer to restricted cash to fund professional fee escrow	(5,400		)
		Payment of professional fees	(5,656		)
		Payment of letters of credit fees and fronting fees of Predecessor ABL Facility	(260		)
		Equity Holder Cash-Out Subscription	200
		Payment to Equity Holders who chose to cash out	(200		)
		Payment to non-qualified holders of the 2021 Notes	(25		)
		Payment of contract rejection damage claim	(25		)
		Total Uses	$	(56,645	)
		Net sources of cash	$	52,437



C.	Transfer of cash and cash equivalents to fund professional fee escrow cash account as required by the Plan.

D.	Satisfaction of payroll withholdings related to accelerated vesting of Predecessor restricted stock units and awards.

E.	Elimination of Predecessor Directors and Officers ("D&O") insurance policies and release of prepaid professional retainer net of capitalized ABL Facility related fee:
	Predecessor D&O insurance	$	(2,203	)
	Release of professional retainer	(150		)
	Payment of ABL Facility related fee	58
	Total	$	(2,295	)



F.	Decrease in accrued current liabilities consists of the following:
	Reinstate rejection damage and other claims from Liabilities Subject to Compromise (short-term)	$	2,677
	Accrual for success fees incurred upon emergence	3,786
	Over funding of Rights Offering to be returned	98
	Payment of interest on Predecessor Term Loan Facility	(4,277		)
	Payment of professional fees and the application of retainer balances	(3,056		)
	Payment of letters of credit fees and fronting fees on the Predecessor ABL Facility	(260		)
	Total	$	(1,032	)



G.	Elimination of debt issuance costs on Predecessor ABL Facility and record current portion of Term Loan Facility:
	Predecessor ABL Facility issuance costs	$	3,099
	Current portion of Term Loan Facility	2,500
	Total	$	5,599



H.	Represents Term Loan Facility, at fair value, net of deferred finance costs on ABL Facility:
	Long-term debt	$	250,000
	Less: current portion	(2,500		)
	Bank fees on the ABL Facility	(2,040		)
	Total	$	245,460



I.	Reinstate rejection damage and other claims from Liabilities Subject to Compromise.

J.	Liabilities Subject to Compromise were settled as follows in accordance with the Plan:
	Write-off of Liabilities Subject to Compromise	$	996,527
	Term Loan Facility	(250,000		)
	Payment of Predecessor Term Loan Facility principal	(38,876		)
	Contract rejection damage and other claims to be satisfied in cash (long and short-term)	(3,010		)
	Payment of contract rejection damage claim	(25		)
	Payment to non-qualified holders of the 2021 Notes	(25		)
	Issuance of Successor common stock to satisfy 2021 Notes claims	(125,892		)
	Gain due to settlement of Liabilities Subject to Compromise	$	578,699



K.	Represents the cancellation of Predecessor common stock (par value of $16,055) and the distribution of Successor common stock (par value of $201).


L.	Consists of the net impact of the following:
	Predecessor additional paid in capital:
	Elimination of par value of Predecessor common stock	$	16,055
	Compensation expense related to acceleration of Predecessor restricted stock units and awards	1,996
	Warrants issued to holders of Predecessor common stock	(3,768		)
	Issuance of Successor common stock to holders of Predecessor common stock	(13,695		)
	Total	$	588

	Successor additional paid in capital:
	Issuance of common stock for the Rights Offering	$	108,866
	Issuance of Successor common stock to satisfy 2021 Notes claims	125,817
	Issuance of Successor common stock to holders of Predecessor common stock	13,687
	Warrants issued to holders of Predecessor common stock	3,768
	Shares withheld to satisfy payroll tax obligations	(210		)
	Total	251,928
	Net impact of Predecessor and Successor additional paid in capital	$	252,516



M.	Reflects the cumulative impact of the reorganization adjustments discussed above:
	Reorganization items:
	Gain due to settlement of Liabilities Subject to Compromise	$	578,699
	Success fees incurred upon emergence	(6,536		)
	Write of deferred issuance costs of Predecessor ABL Facility	(3,099		)
	Total	$	569,064

	Other:
	Elimination of Predecessor D&O prepaid insurance	$	(2,203	)
	Bank fees and charges	(27		)
	Compensation expense related to acceleration of Predecessor restricted stock awards	(1,996		)
	Total	$	(4,226	)

	Net cumulative impact of the reorganization adjustments	$	564,838

N.	A fresh start adjustment to increase the net book value of inventories to their estimated fair value, based upon current replacement costs.



O.	An adjustment to adjust the net book value of property and equipment to estimated fair value.
	The following table summarizes the components of property and equipment, net as of the Effective Date, both before (Predecessor) and after (Successor) fair value adjustments:

		Successor Fair Value		Predecessor Historical Cost
	Oilfield service equipment	$	267,648	$	1,660,592
	Disposal wells	23,288		74,008
	Motor vehicles	39,322		262,370
	Furniture and equipment	8,835		129,084
	Buildings and land	65,525		103,635
	Work in progress	3,818		6,139
	Gross property and equipment	408,436		2,235,828
	Accumulated depreciation	—		(1,523,585		)
	Net property and equipment	$	408,436	$	712,243



P.	An adjustment the net book value of other intangible assets to estimated fair value.

	The following table summarizes the components of other intangible assets, net as of the Effective Date, both before (Predecessor) and after (Successor) fair value adjustments:

		Successor Fair Value		Predecessor Historical Cost
	Non-compete agreements	$	—	$	1,535
	Patents, trademarks and tradenames	520		400
	Customer relationships and contracts	—		40,640
	Developed technology	—		4,778
	Gross carrying value	520		47,353
	Accumulated amortization	—		(43,757		)
	Net other intangible assets	$	520	$	3,596



Q.	Represents fair value adjustment related to assets held for sale.


R.	Reduction in other current liabilities relates to the elimination of the current portion of deferred rent liabilities.

S.	Reduction in other long term liabilities relates to the elimination of the non-current portion of deferred rent liabilities totaling $3,429 and reduction in asset retirement obligation to reflect estimated fair value totaling $2,855.

T.	Reflects the cumulative impact of the fresh start accounting adjustments discussed above and the elimination of the Predecessor Company’s accumulated other comprehensive loss:

	Property and equipment fair value adjustment	$	(303,807	)
	Assets held for sale fair value adjustment	369
	Elimination of deferred rent liability	3,693
	ARO fair value adjustment	2,855
	Inventory fair value adjustment	383
	Intangible assets fair value adjustment	(3,076		)
	Elimination of Predecessor accumulated other comprehensive loss	(40,394		)
	Elimination of Predecessor additional paid in capital	970,502
	Elimination of Predecessor retained deficit	$	630,525