LRR Energy 8-K Other Events

Exhibit 99.1

ITEM 6.                SELECTED FINANCIAL DATA.

The selected consolidated financial data presented as of December 31, 2012 and 2011 and for the year ended December 31, 2012 and for the period from November 16 to December 31, 2011 are derived from our audited financial statements. The selected financial data for the period from January 1 to November 15, 2011 and as of and for the years ended December 31, 2010, 2009 and 2008 are derived from the audited financial statements of our predecessor. See Note 2 to our “Consolidated and Combined Financial Statements” contained in this Form 8-K for information regarding the retrospective adjustment of our financial information for the year ended December 31, 2012 and the period from November 16 to December 31, 2011 in connection with acquisitions between entities under common control. The selected financial data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data,” both contained herein. The following table shows selected financial data of the Partnership and our predecessor for the periods and as of the dates indicated.

	Partnership						Predecessor
	Year Ended			November 16 to			January 1 to			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			November 15,			December 31,			December 31,			December 31,
(in thousands)	2012			2011			2011			2010			2009			2008
Statement of Operations Data:
Revenues:
Oil sales	$	72,916		$	9,766		$	59,605		$	52,670		$	34,604		$	58,852
Natural gas sales	23,502			3,976			35,883			48,088			33,798			100,378
Natural gas liquids sales	11,627			1,976			14,500			14,748			10,617			20,393
Realized gain (loss) on commodity derivative instruments	23,350			4,015			9,353			48,029			70,902			(2,676		)
Unrealized gain (loss) on commodity derivative instruments	(10,602		)	8,272			12,674			(23,964		)	(62,375		)	117,757
Other income	45			—			159			116			24			18
Total revenues	120,838			28,005			132,174			139,687			87,570			294,722
Operating expenses:
Lease operating expenses	29,069			3,193			21,391			23,804			19,066			18,781
Production and ad valorem taxes	7,790			1,076			7,763			9,320			6,731			13,899
Depletion and depreciation	46,928			5,876			37,206			55,828			56,349			79,477
Impairment of oil and gas properties	3,544			—			16,765			11,712			—			121,561
Accretion expense	1,575			191			1,290			1,366			1,255			691
(Gain) loss on settlement of asset retirement obligations	(31		)	—			496			(209		)	(1,570		)	250
Management fees	—			—			5,435			6,104			8,500			8,500
General and administrative expenses	13,758			1,892			5,149			5,293			2,408			2,493
Total operating expenses	102,633			12,228			95,495			113,218			92,739			245,652
Operating income (loss)	18,205			15,777			36,679			26,469			(5,169		)	49,070
Other income (expense), net
Interest income	—			—			1			17			87			623
Interest expense	(6,596		)	(604		)	(919		)	(3,223		)	(1,274		)	(2,131		)
Realized loss on interest rate derivative instruments	(465		)	—			(574		)	(649		)	(457		)	(71		)
Unrealized gain (loss) on interest rate derivative instruments	(4,185		)	—			441			(248		)	95			(709		)
Other income (expense), net	(11,246		)	(604		)	(1,051		)	(4,103		)	(1,549		)	(2,288		)
Income (loss) before taxes	6,959			15,173			35,628			22,366			(6,718		)	46,782
Income tax benefit (expense)	(172		)	(48		)	76			(32		)	622			(971		)
Net income (loss)	$	6,787		$	15,125		$	35,704		$	22,334		$	(6,096	)	$	45,811
Net income attributable to predecessor operations	(6,790		)	(2,975		)
Net income (loss) available to unitholders	$	(3	)	$	12,150
General partner’s interest in net income (loss)	$	—		$	12
Limited partners’ interest in net income (loss)	$	(3	)	$	12,138
Net income (loss) per limited partner unit (basic and diluted)	$	0.00		$	0.54
Weighted average number of limited partner units outstanding (basic and diluted)	22,425			22,418
Other Financial Data:
Adjusted EBITDA	$	81,136		$	13,603		$	79,762		$	119,130		$	113,240		$	133,292

	Partnership						Predecessor
	Year Ended			November 16 to			January 1 to			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			November 15,			December 31,			December 31,			December 31,
(in thousands)	2012			2011			2011			2010			2009			2008
Cash Flow Data:
Net cash provided by operating activities	$	77,223		$	5,523		$	84,027		$	121,269		$	108,148		$	139,236
Net cash used in investing activities	$	(40,433	)	$	(755	)	$	(44,891	)	$	(125,846	)	$	(25,129	)	$	(217,986	)
Net cash provided by (used in) financing activities	$	(34,836	)	$	(3,255	)	$	(38,000	)	$	1,505		$	(118,151	)	$	117,758
Balance Sheet Data:
Working capital	$	19,366		$	23,124		(1		)	$	33,209		$	57,466		$	113,846
Total assets	$	565,470		$	579,934		(1		)	$	504,622		$	465,691		$	593,866
Total debt	$	228,000		$	155,800		(1		)	$	27,251		$	24,150		$	32,250
Unitholders’ Equity/partners’ capital	$	290,776		$	390,150		(1		)	$	426,733		$	405,646		$	521,784

(1)These balance sheet amounts are not presented as they are not included in the predecessor’s financial statements included in “Item 8. Financial Statements and Supplementary Data.”

Non-GAAP Financial Measures

Below we disclose the non-GAAP financial measures Adjusted EBITDA and Distributable Cash Flow for the periods presented and provide reconciliations of these items to net income (loss), our most directly comparable financial performance measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss):

·Plus:

·Income tax expense (benefit);

·Interest expense-net, including realized and unrealized losses on interest rate derivative contracts;

·Depletion and depreciation;

·Accretion of asset retirement obligations;

·Amortization of equity awards;

·Gain (loss) on settlement of asset retirement obligations;

·Unrealized losses on commodity derivative contracts;

·Impairment of oil and natural gas properties; and

·Other non-recurring items that we deem appropriate.

·Less:

·Interest income;

·Unrealized gains on commodity derivative contracts; and

·Other non-recurring items that we deem appropriate.

We define Distributable Cash Flow as Adjusted EBITDA less income tax expense; cash interest expense; and estimated maintenance capital expenditures.

Adjusted EBITDA and Distributable Cash Flow are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess:

·our operating performance as compared to that of other companies and partnerships in our industry, without regard to financing methods, capital structure or historical cost basis; and

·the ability of our assets to generate sufficient cash flow to make distributions to our unitholders.

Our management believes that both Adjusted EBITDA and Distributable Cash Flow are useful to investors because these measures are used by many partnerships in the industry as measures of operating and financial performance and are commonly employed by financial analysts and others to evaluate the operating and financial

performance of the Partnership from period to period and to compare it with the performance of other publicly traded partnerships within the industry. Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income, operating income, or any other measures of financial performance presented in accordance with GAAP. Our Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Distributable Cash Flow in the same manner.

Our Adjusted EBITDA for the year ended December 31, 2012 and for the period from November 16 to December 31, 2011 was approximately $81.1 million and $13.6 million, respectively. Our predecessor’s Adjusted EBITDA for the period from January 1 to November 11, 2011 and the years ended December 31, 2010, 2009 and 2008 was approximately $79.8 million, $119.1 million, $113.2 million and $133.3 million, respectively.

Our Distributable Cash Flow for the year ended December 31, 2012 and for the period from November 16 to December 31, 2011 was approximately $54.1 million and $11.0 million, respectively.

Reconciliation of Adjusted EBITDA to Net Income

The following table presents a reconciliation of Adjusted EBITDA to net income, our most directly comparable GAAP performance measure, for each of the periods presented.

	Partnership						Predecessor
	Year Ended			November 16 to			January 1 to			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			November 15,			December 31,			December 31,			December 31,
(in thousands)	2012			2011			2011			2010			2009			2008
Net income (loss)	$	6,787		$	15,125		$	35,704		$	22,334		$	(6,096	)	$	45,811
Income tax expense (benefit)	172			48			(76		)	32			(622		)	971
Interest expense-net, including realized and unrealized losses on interest rate derivative instruments	11,246			604			1,052			4,120			1,636			2,911
Depletion and depreciation	46,928			5,876			37,206			55,828			56,349			79,477
Accretion of asset retirement obligations	1,575			191			1,290			1,366			1,255			691
Amortization of equity awards	313			31			—			—			—			—
Gain (loss) on settlement of asset retirement obligations	(31		)	—			496			(209		)	(1,570		)	250
Unrealized losses on commodity derivative instruments	10,602			—			—			23,964			62,375			—
Impairment of oil and natural gas properties	3,544			—			16,765			11,712			—			121,561
Interest income	—			—			(1		)	(17		)	(87		)	(623		)
Unrealized gain on commodity derivative instruments	—			(8,272		)	(12,674		)	—			—			(117,757		)
Adjusted EBITDA	$	81,136		$	13,603		$	79,762		$	119,130		$	113,240		$	133,292

Distributable Cash Flow

The following table presents a reconciliation of Distributable Cash Flow to Adjusted EBITDA for the periods presented. Adjusted EBITDA is reconciled to net income, our most directly comparable GAAP performance measure, above.

	Year Ended			November 16 to
	December 31,			December 31,
(in thousands)	2012			2011
Adjusted EBITDA	$	81,136		$	13,603
Income tax expense	(172		)	(48		)
Cash interest expense	(6,547		)	—
Estimated maintenance capital	(20,300		)	(2,538		)
Distributable Cash Flow	$	54,117		$	11,017