Reconciliation Items 26 (1) Includes accretion expense and asset impairments (2) Includes $1.0 MM in charges related to the implementation of the Services Agreements in 14Q2; employee severance charges of $4.4 MM, transaction charges of $0.6 MM, conversion charges of $0.3 MM, and litigation charges of less than $0.1 MM in 15Q1; and litigation charges of $0.3 MM, transaction charges of $1.2 MM, and out of period charges of $1.9 MM in 15Q3; Excluding these non-recurring items in the quarterly results shown, 15Q1 Adjusted EBITDA was $4.9 MM and 15Q3 Adjusted EBITDA was $3.7 MM; Excluding these non-recurring items in year-to-date results, YTD 14Q3 Adjusted EBITDA was $20.7 MM and YTD 15Q3 Adjusted EBITDA was $13.8 MM (3) Includes lease operating expenses, production taxes, general and administrative expenses, and unit-based compensation program expenses (4) See footnote (2) for a description of Non-recurring items Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in 000s) 14Q3 YTD 14Q3 15Q1 15Q2 15Q3 YTD 15Q3 Net income (loss) 5,655 $ (2,295) $ (89,986) $ (10,341) $ 7,795 $ (92,532) $ Interest expense, net 511 1,569 646 1,122 672 2,440 Income tax expense - - - - 3 3 DD&A (1) 5,030 13,894 86,238 4,205 4,053 94,496 EBITDA 11,196 $ 13,168 $ (3,102) $ (5,014) $ 12,523 $ 4,407 $ (Gain) loss on sale of assets - (23) (59) (54) 2 (111) Unit-based compensation programs 86 1,216 1,992 396 75 2,463 (Gain) loss on mark-to-market activities (5,594) 5,318 732 9,902 (12,305) (1,671) Adjusted EBITDA (1),(2) 5,688 $ 19,679 $ (437) $ 5,230 $ 295 $ 5,088 $ Operating Expense to Operating Cost ($/BOE) 14Q3 YTD 14Q3 15Q1 15Q2 15Q3 YTD 15Q3 Operating expenses (3) 25.99 $ 27.40 $ 45.78 $ 24.12 $ 35.44 $ 34.34 $ Less: Unit-based compensation included in operating expense 0.23 1.07 6.15 0.99 0.20 2.25 Less: Non-recurring items (4) - 0.88 16.43 - 9.28 7.99 Operating cost 25.76 $ 25.45 $ 23.20 $ 23.13 $ 25.96 $ 24.10 $
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