Exhibit 99.3
Rex Energy Corporation
Consolidated Balance Sheet
($ in Thousands, Except Share and per Share Data)
December 31, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 15,247 | $ | 3,697 | ||||
Accounts Receivable | 25,974 | 25,448 | ||||||
Taxes Receivable | 2,049 | 211 | ||||||
Short-Term Derivative Instruments | 6,757 | 650 | ||||||
Inventory, Prepaid Expenses and Other | 4,614 | 2,546 | ||||||
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Total Current Assets | 54,641 | 32,552 | ||||||
Property and Equipment (Successful Efforts Method) | ||||||||
Evaluated Oil and Gas Properties | 1,086,625 | 1,053,461 | ||||||
Unevaluated Oil and Gas Properties | 186,523 | 215,794 | ||||||
Other Property and Equipment | 19,640 | 21,401 | ||||||
Wells and Facilities in Progress | 38,660 | 21,964 | ||||||
Pipelines | 16,803 | 18,029 | ||||||
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Total Property and Equipment | 1,348,251 | 1,330,649 | ||||||
Less: Accumulated Depreciation, Depletion and Amortization | (463,899 | ) | (475,205 | ) | ||||
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Net Property and Equipment | 884,352 | 855,444 | ||||||
Other Assets | 44 | 2,492 | ||||||
Long-Term Derivative Instruments | 2,970 | 3,435 | ||||||
Deferred Tax Assets—Long Term | 130 | — | ||||||
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Total Assets | $ | 942,137 | $ | 893,923 | ||||
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LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ | 62,354 | $ | 40,712 | ||||
Current Maturities of Long-Term Debt | 1,926 | 764 | ||||||
Accrued Liabilities | 45,218 | 37,207 | ||||||
Short-Term Derivative Instruments | 14,892 | 25,025 | ||||||
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Total Current Liabilities | 124,390 | 103,708 | ||||||
Long-Term Derivative Instruments | 14,249 | 7,227 | ||||||
Senior Secured Line of Credit, Net | — | 113,785 | ||||||
Term Loans, Net | 182,028 | — | ||||||
Senior Notes, Net | 650,371 | 638,161 | ||||||
Other Long-Term Debt | 8,156 | 3,409 | ||||||
Other Deposits and Liabilities | 7,153 | 8,671 | ||||||
Future Abandonment Cost | 9,352 | 8,736 | ||||||
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Total Liabilities | $ | 995,699 | $ | 883,697 | ||||
Commitments and Contingencies (See Note 12) | ||||||||
Stockholders’ Equity | ||||||||
Preferred Stock, $.001 par value per share, 100,000 shares authorized and 3,987 issued and outstanding on December 31, 2017 and December 31, 2016 | $ | 1 | $ | 1 | ||||
Common Stock, $.001 par value per share, 100,000,000 shares authorized and 10,244,394 shares issued and outstanding on December 31, 2017 and 9,787,146 shares issued and outstanding on December 31, 2016. | 10 | 10 | ||||||
AdditionalPaid-In Capital | 652,917 | 650,669 | ||||||
Accumulated Deficit | (706,490 | ) | (640,454 | ) | ||||
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Total Stockholders’ Equity | (53,562 | ) | 10,226 | |||||
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Total Liabilities and Stockholders’ Equity | $ | 942,137 | $ | 893,923 | ||||
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Rex Energy Corporation
Consolidated Statements of Operations
($ in Thousands, Except Share and per Share Data)
For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
OPERATING REVENUE | ||||||||||||||||
Natural Gas, NGL and Condensate Sales | $ | 57,755 | $ | 48,022 | $ | 205,246 | $ | 139,000 | ||||||||
Other Operating Revenue | 4 | 5 | 20 | 17 | ||||||||||||
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TOTAL OPERATING REVENUE | 57,759 | 48,027 | 205,266 | 139,017 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Production and Lease Operating Expense | 31,912 | 28,694 | 120,794 | 104,699 | ||||||||||||
General and Administrative Expense | 4,414 | 5,384 | 17,858 | 20,621 | ||||||||||||
Loss (Gain) on Disposal of Assets | 279 | 164 | (1,428 | ) | (4,121 | ) | ||||||||||
Impairment Expense | 4,928 | 29,275 | 21,383 | 74,619 | ||||||||||||
Exploration Expense | 114 | 224 | 527 | 2,178 | ||||||||||||
Depreciation, Depletion, Amortization and Accretion | 13,442 | 16,503 | 59,028 | 62,874 | ||||||||||||
Other Operating (Income) Expense | 280 | (176 | ) | 611 | 10,754 | |||||||||||
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TOTAL OPERATING EXPENSES | 55,369 | 80,068 | 218,773 | 271,624 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | 2,390 | (32,041 | ) | (13,507 | ) | (132,607 | ) | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest Expense | (13,807 | ) | (9,404 | ) | (48,826 | ) | (43,519 | ) | ||||||||
Other Operating Expense | (2,031 | ) | (24,261 | ) | (1,347 | ) | (32,515 | ) | ||||||||
Other Expense | (68 | ) | (2,152 | ) | (261 | ) | (2,124 | ) | ||||||||
Debt Exchange Expense | — | (15 | ) | — | (9,063 | ) | ||||||||||
(Loss) Gain on Extinguishments of Debt | — | 497 | (3,029 | ) | 24,627 | |||||||||||
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TOTAL OTHER EXPENSE | (15,906 | ) | (35,335 | ) | (53,463 | ) | (62,594 | ) | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | (13,516 | ) | (67,376 | ) | (66,970 | ) | (195,201 | ) | ||||||||
Income Tax Benefit (Expense) | 2,728 | (8,221 | ) | 2,728 | (2,436 | ) | ||||||||||
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NET LOSS FROM CONTINUING OPERATIONS | (10,788 | ) | (75,597 | ) | (64,242 | ) | (197,637 | ) | ||||||||
Income From Discontinued Operations, Net of Income Taxes | — | 8,203 | — | 20,922 | ||||||||||||
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NET LOSS | (10,788 | ) | (67,394 | ) | (64,242 | ) | (176,715 | ) | ||||||||
Preferred Stock Dividends | (598 | ) | (650 | ) | (2,392 | ) | (5,091 | ) | ||||||||
Effect of Preferred Stock Conversions | — | 668 | — | 72,984 | ||||||||||||
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (11,386 | ) | $ | (67,376 | ) | $ | (66,634 | ) | $ | (108,822 | ) | ||||
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Rex Energy Corporation
Consolidated Statement of Changes in Stockholders’ Equity (Deficit)
For the Twelve Months Ended December 31, 2017
(Unaudited, in Thousands)
Common Stock | Preferred Stock | |||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||
BALANCE December 31, 2016 | 9,787 | $ | 10 | 4 | $ | 1 | $ | 650,669 | $ | (640,454 | ) | $ | 10,226 | |||||||||||||||
Equity Based Compensation | — | — | — | — | 1,231 | — | 1,231 | |||||||||||||||||||||
Issuance of Common Stock for Debt Extinguishments | 84 | — | — | — | 467 | — | 467 | |||||||||||||||||||||
Issuance of Restricted Stock, Net of Forfeitures | 59 | — | — | — | — | — | — | |||||||||||||||||||||
Effect of Reverse Stock Split | — | (48 | ) | (48 | ) | |||||||||||||||||||||||
Payment of Preferred Dividends in Arrears | — | — | — | — | — | (1,196 | ) | (1,196 | ) | |||||||||||||||||||
Preferred Dividends in Arrears Paid in Common Shares | 314 | — | — | — | 598 | (598 | ) | — | ||||||||||||||||||||
Net Loss | — | — | — | — | — | (64,242 | ) | (64,242 | ) | |||||||||||||||||||
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BALANCE December 31, 2017 | 10,244 | $ | 10 | 4 | $ | 1 | $ | 652,917 | $ | (706,490 | ) | $ | (53,562 | ) | ||||||||||||||
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Rex Energy Corporation
Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
For the Year Ended December 31, | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Loss | $ | (64,242 | ) | $ | (176,715 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Provided (Used) by Operating Activities | ||||||||
Depreciation, Depletion, Amortization and Accretion | 59,028 | 67,975 | ||||||
(Gain) Loss on Derivatives | 1,347 | 32,515 | ||||||
Cash Settlements of Derivatives | (10,100 | ) | 32,571 | |||||
Non-cash Dry Hole Expense | 13 | 905 | ||||||
Equity-based Compensation Expense | 1,231 | 2,959 | ||||||
Impairment Expense | 21,383 | 78,162 | ||||||
Amortization of net Bond Discount and Deferred Debt Issuance Costs | — | 1,231 | ||||||
Non-cash Interest Expense related to Debt Restructurings and Exchanges | 15,228 | 19,912 | ||||||
Loss (Gain) on Extinguishments of Debt | 3,029 | (24,627 | ) | |||||
Gain on Sale of Assets | (1,428 | ) | (34,651 | ) | ||||
Deferred Income Tax Benefit | (130 | ) | — | |||||
OtherNon-cash Expense | 471 | 22 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts Receivable | 5,258 | (6,414 | ) | |||||
Taxes Receivable | (1,839 | ) | — | |||||
Inventory, Prepaid Expenses and Other Assets | (2,060 | ) | 906 | |||||
Accounts Payable and Accrued Liabilities | 14,558 | 2,795 | ||||||
Other Assets and Liabilities | (3,259 | ) | (1,950 | ) | ||||
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 38,488 | (4,404 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from the Sale of Oil and Gas Properties, Prospects and Other Assets | 31,704 | 40,884 | ||||||
Proceeds from Joint Venture for Reimbursement of Capital Costs | — | 19,461 | ||||||
Acquisitions of Undeveloped Acreage | (3,805 | ) | (6,712 | ) | ||||
Capital Expenditures for Development of Oil & Gas Properties and Equipment | (113,411 | ) | (48,982 | ) | ||||
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NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (85,512 | ) | 4,651 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from Long-Term Debt and Line of Credit | 217,000 | 71,400 | ||||||
Repayments of Long-Term Debt and Line of Credit | (145,170 | ) | (65,230 | ) | ||||
Repayments of Loans and Other Notes Payable | (1,306 | ) | (828 | ) | ||||
Debt Issuance Costs | (10,754 | ) | (2,983 | ) | ||||
Payment of Preferred Dividends in Arrears | (1,196 | ) | — | |||||
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NET CASH PROVIDED BY FINANCING ACTIVITIES | 58,574 | 2,359 | ||||||
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NET INCREASE IN CASH | 11,550 | 2,606 | ||||||
CASH – BEGINNING | 3,697 | 1,091 | ||||||
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CASH – ENDING | $ | 15,247 | $ | 3,697 | ||||
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CASH AND CASH EQUIVALENTS ATTRIBUTABLE TO CONTINUING OPERATIONS | $ | 15,247 | $ | 3,697 | ||||
SUPPLEMENTAL DISCLOSURES | ||||||||
Interest Paid, net of capitalized interest | $ | 22,382 | $ | 30,805 | ||||
Cash (Received) Paid for Income Taxes | 1,839 | 29 | ||||||
Capital Expenditures for Development of Oil & Gas Properties and Equipment Attributable to Discontinued Operations | — | 1,346 | ||||||
NON-CASH ACTIVITIES | ||||||||
Change in fair value of contingent consideration receivable—sale of Illinois Basin | $ | (1,216 | ) | $ | (2,936 | ) | ||
Proceeds held inEscrow—non-cash component of Gain on Sale of Assets | 5,000 | — | ||||||
Increase (Decrease) in Accounts Payable and Accrued Liabilities for Capital Expenditures | 14,637 | 712 | ||||||
Net Increase in Property and Equipment—Capital Lease Financing | 7,170 | — | ||||||
Decrease in Senior Notes carrying value net of Issuance Costs, Deferred Gain on Exchanges, and Net Premium / Discount due to Debt to Equity Conversions | (879 | ) | (47,182 | ) | ||||
Decrease in Bond Interest Payable due to Debt to Equity Conversions | (12 | ) | (892 | ) | ||||
Increase in Common Stock outstanding due to Debt to Equity Conversions | 467 | 17,378 | ||||||
Preferred Dividends in Arrears Paid in Common Shares | 598 | — |