Jones Energy, Inc.
Condensed Consolidating Statement of Operations (Unaudited)
Year Ended December 31, 2016
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Guarantor |
| Non-Guarantor |
| Eliminations |
| Consolidated |
| ||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| $ | — |
| $ | — |
| $ | 124,877 |
| $ | — |
| $ | — |
| $ | 124,877 |
|
Other revenues |
| — |
| 2,384 |
| 586 |
| — |
| — |
| 2,970 |
| ||||||
Total operating revenues |
| — |
| 2,384 |
| 125,463 |
| — |
| — |
| 127,847 |
| ||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Lease operating |
| — |
| — |
| 32,640 |
| — |
| — |
| 32,640 |
| ||||||
Production and ad valorem taxes |
| — |
| — |
| 7,768 |
| — |
| — |
| 7,768 |
| ||||||
Exploration |
| — |
| — |
| 6,673 |
| — |
| — |
| 6,673 |
| ||||||
Depletion, depreciation and amortization |
| — |
| — |
| 153,843 |
| 87 |
| — |
| 153,930 |
| ||||||
Accretion of ARO liability |
| — |
| — |
| 1,263 |
| — |
| — |
| 1,263 |
| ||||||
General and administrative |
| — |
| 12,028 |
| 17,244 |
| 368 |
| — |
| 29,640 |
| ||||||
Other operating |
| — |
| — |
| 199 |
| — |
| — |
| 199 |
| ||||||
Total operating expenses |
| — |
| 12,028 |
| 219,630 |
| 455 |
| — |
| 232,113 |
| ||||||
Operating income (loss) |
| — |
| (9,644 | ) | (94,167 | ) | (455 | ) | — |
| (104,266 | ) | ||||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| — |
| (53,080 | ) | (47 | ) | — |
| — |
| (53,127 | ) | ||||||
Gain on debt extinguishment |
| — |
| 99,530 |
| — |
| — |
| — |
| 99,530 |
| ||||||
Net gain (loss) on commodity derivatives |
| — |
| (51,264 | ) | — |
| — |
| — |
| (51,264 | ) | ||||||
Other income (expense) |
| 784 |
| (321 | ) | 73 |
| — |
| — |
| 536 |
| ||||||
Other income (expense), net |
| 784 |
| (5,135 | ) | 26 |
| — |
| — |
| (4,325 | ) | ||||||
Income (loss) before income tax |
| 784 |
| (14,779 | ) | (94,141 | ) | (455 | ) | — |
| (108,591 | ) | ||||||
Equity interest in income |
| (66,804 | ) | (42,571 | ) | — |
| — |
| 109,375 |
| — |
| ||||||
Income tax provision (benefit) |
| (23,468 | ) | (318 | ) | — |
| — |
| — |
| (23,786 | ) | ||||||
Net income (loss) |
| (42,552 | ) | (57,032 | ) | (94,141 | ) | (455 | ) | 109,375 |
| (84,805 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) attributable to non-controlling interests |
| — |
| — |
| — |
| — |
| (42,253 | ) | (42,253 | ) | ||||||
Net income (loss) attributable to controlling interests |
| $ | (42,552 | ) | $ | (57,032 | ) | $ | (94,141 | ) | $ | (455 | ) | $ | 151,628 |
| $ | (42,552 | ) |
Dividends and accretion on preferred stock |
| (2,669 | ) | — |
| — |
| — |
| — |
| (2,669 | ) | ||||||
Net income (loss) attributable to common shareholders |
| $ | (45,221 | ) | $ | (57,032 | ) | $ | (94,141 | ) | $ | (455 | ) | $ | 151,628 |
| $ | (45,221 | ) |
Jones Energy, Inc.
Condensed Consolidating Statement of Cash Flows (Unaudited)
Year Ended December 31, 2016
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Guarantor |
| Non-Guarantor |
| Eliminations |
| Consolidated |
| ||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | (42,552 | ) | $ | (57,032 | ) | $ | (94,141 | ) | $ | (455 | ) | $ | 109,375 |
| $ | (84,805 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (105,877 | ) | (28,124 | ) | 353,426 |
| 455 |
| (109,375 | ) | 110,505 |
| ||||||
Net cash (used in) / provided by operations |
| (148,429 | ) | (85,156 | ) | 259,285 |
| — |
| — |
| 25,700 |
| ||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Additions to oil and gas properties |
| — |
| — |
| (264,462 | ) | — |
| — |
| (264,462 | ) | ||||||
Proceeds from sales of assets |
| — |
| — |
| 1,645 |
| — |
| — |
| 1,645 |
| ||||||
Acquisition of other property, plant and equipment |
| — |
| — |
| (310 | ) | — |
| — |
| (310 | ) | ||||||
Current period settlements of matured derivative contracts |
| — |
| 132,265 |
| — |
| — |
| — |
| 132,265 |
| ||||||
Net cash (used in) / provided by investing |
| — |
| 132,265 |
| (263,127 | ) | — |
| — |
| (130,862 | ) | ||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from issuance of long-term debt |
| — |
| 130,000 |
| — |
| — |
| — |
| 130,000 |
| ||||||
Repayment under long-term debt |
| — |
| (62,000 | ) | — |
| — |
| — |
| (62,000 | ) | ||||||
Purchase of senior notes |
| — |
| (84,589 | ) | — |
| — |
| — |
| (84,589 | ) | ||||||
Payment of dividends on preferred stock |
| (1,615 | ) | — |
| — |
| — |
| — |
| (1,615 | ) | ||||||
Net distributions paid to JEH unitholders |
| 23,674 |
| (40,993 | ) | — |
| — |
| — |
| (17,319 | ) | ||||||
Proceeds from sale of common stock |
| 65,446 |
| — |
| — |
| — |
| — |
| 65,446 |
| ||||||
Proceeds from sale of preferred stock |
| 87,988 |
| — |
| — |
| — |
| — |
| 87,988 |
| ||||||
Net cash (used in) / provided by financing |
| 175,493 |
| (57,582 | ) | — |
| — |
| — |
| 117,911 |
| ||||||
Net increase (decrease) in cash |
| 27,064 |
| (10,473 | ) | (3,842 | ) | — |
| — |
| 12,749 |
| ||||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Beginning of period |
| 100 |
| 12,448 |
| 9,325 |
| 20 |
| — |
| 21,893 |
| ||||||
End of period |
| $ | 27,164 |
| $ | 1,975 |
| $ | 5,483 |
| $ | 20 |
| $ | — |
| $ | 34,642 |
|
Jones Energy, Inc.
Condensed Consolidating Balance Sheet (Unaudited)
December 31, 2015
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash |
| $ | 100 |
| $ | 12,448 |
| $ | 9,325 |
| $ | 20 |
| $ | — |
| $ | 21,893 |
|
Accounts receivable, net |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| — |
| — |
| 19,292 |
| — |
| — |
| 19,292 |
| ||||||
Joint interest owners |
| — |
| — |
| 11,314 |
| — |
| — |
| 11,314 |
| ||||||
Other |
| — |
| 14,444 |
| 726 |
| — |
| — |
| 15,170 |
| ||||||
Commodity derivative assets |
| — |
| 124,207 |
| — |
| — |
| — |
| 124,207 |
| ||||||
Other current assets |
| — |
| 444 |
| 1,854 |
| — |
| — |
| 2,298 |
| ||||||
Intercompany receivable |
| 12,866 |
| 844,550 |
| — |
| — |
| (857,416 | ) | — |
| ||||||
Total current assets |
| 12,966 |
| 996,093 |
| 42,511 |
| 20 |
| (857,416 | ) | 194,174 |
| ||||||
Oil and gas properties, net, at cost under the successful efforts method |
| — |
| — |
| 1,635,766 |
| — |
| — |
| 1,635,766 |
| ||||||
Other property, plant and equipment, net |
| — |
| — |
| 3,168 |
| 705 |
| — |
| 3,873 |
| ||||||
Commodity derivative assets |
| — |
| 93,302 |
| — |
| — |
| — |
| 93,302 |
| ||||||
Other assets |
| — |
| 7,456 |
| 583 |
| — |
| — |
| 8,039 |
| ||||||
Investment in subsidiaries |
| 444,362 |
| 536,856 |
| — |
| — |
| (981,218 | ) | — |
| ||||||
Total assets |
| $ | 457,328 |
| $ | 1,633,707 |
| $ | 1,682,028 |
| $ | 725 |
| $ | (1,838,634 | ) | $ | 1,935,154 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Trade accounts payable |
| $ | — |
| $ | 388 |
| $ | 7,079 |
| $ | — |
| $ | — |
| $ | 7,467 |
|
Oil and gas sales payable |
| — |
| — |
| 32,408 |
| — |
| — |
| 32,408 |
| ||||||
Accrued liabilities |
| — |
| 15,741 |
| 11,270 |
| — |
| — |
| 27,011 |
| ||||||
Commodity derivative liabilities |
| — |
| 11 |
| — |
| — |
| — |
| 11 |
| ||||||
Other current liabilities |
| — |
| — |
| 679 |
| — |
| — |
| 679 |
| ||||||
Intercompany payable |
| — |
| — |
| 854,982 |
| 2,434 |
| (857,416 | ) | — |
| ||||||
Total current liabilities |
| — |
| 16,140 |
| 906,418 |
| 2,434 |
| (857,416 | ) | 67,576 |
| ||||||
Long-term debt |
| — |
| 837,654 |
| — |
| — |
| — |
| 837,654 |
| ||||||
Deferred revenue |
| — |
| 11,417 |
| — |
| — |
| — |
| 11,417 |
| ||||||
Asset retirement obligations |
| — |
| — |
| 20,301 |
| — |
| — |
| 20,301 |
| ||||||
Liability under tax receivable agreement |
| 38,052 |
| — |
| — |
| — |
| — |
| 38,052 |
| ||||||
Other liabilities |
| — |
| — |
| 330 |
| — |
| — |
| 330 |
| ||||||
Deferred tax liabilities |
| 19,280 |
| 3,692 |
| — |
| — |
| — |
| 22,972 |
| ||||||
Total liabilities |
| 57,332 |
| 868,903 |
| 927,049 |
| 2,434 |
| (857,416 | ) | 998,302 |
| ||||||
Stockholders’/ members’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Members’ equity |
| — |
| 764,804 |
| 754,979 |
| (1,709 | ) | (1,518,074 | ) | — |
| ||||||
Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding at December 31, 2015 |
| 31 |
| — |
| — |
| — |
| — |
| 31 |
| ||||||
Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding at December 31, 2015 |
| 31 |
| — |
| — |
| — |
| — |
| 31 |
| ||||||
Treasury stock, at cost: 22,602 shares at December 31, 2015 |
| (358 | ) | — |
| — |
| — |
| — |
| (358 | ) | ||||||
Additional paid-in-capital |
| 363,723 |
| — |
| — |
| — |
| — |
| 363,723 |
| ||||||
Retained earnings (deficit) |
| 36,569 |
| — |
| — |
| — |
| — |
| 36,569 |
| ||||||
Stockholders’ equity |
| 399,996 |
| 764,804 |
| 754,979 |
| (1,709 | ) | (1,518,074 | ) | 399,996 |
| ||||||
Non-controlling interest |
| — |
| — |
| — |
| — |
| 536,856 |
| 536,856 |
| ||||||
Total stockholders’ equity |
| 399,996 |
| 764,804 |
| 754,979 |
| (1,709 | ) | (981,218 | ) | 936,852 |
| ||||||
Total liabilities and stockholders’ equity |
| $ | 457,328 |
| $ | 1,633,707 |
| $ | 1,682,028 |
| $ | 725 |
| $ | (1,838,634 | ) | $ | 1,935,154 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Operations (Unaudited)
Year Ended December 31, 2015
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| $ | — |
| $ | — |
| $ | 194,555 |
| $ | — |
| $ | — |
| $ | 194,555 |
|
Other revenues |
| — |
| 1,960 |
| 884 |
| — |
| — |
| 2,844 |
| ||||||
Total operating revenues |
| — |
| 1,960 |
| 195,439 |
| — |
| — |
| 197,399 |
| ||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Lease operating |
| — |
| — |
| 41,027 |
| — |
| — |
| 41,027 |
| ||||||
Production and ad valorem taxes |
| — |
| — |
| 12,130 |
| — |
| — |
| 12,130 |
| ||||||
Exploration |
| — |
| — |
| 6,551 |
| — |
| — |
| 6,551 |
| ||||||
Depletion, depreciation and amortization |
| — |
| — |
| 205,407 |
| 91 |
| — |
| 205,498 |
| ||||||
Accretion of ARO liability |
| — |
| — |
| 1,087 |
| — |
| — |
| 1,087 |
| ||||||
General and administrative |
| — |
| 13,565 |
| 19,707 |
| 116 |
| — |
| 33,388 |
| ||||||
Other operating |
|
|
| — |
| 4,188 |
| — |
|
|
| 4,188 |
| ||||||
Total operating expenses |
| — |
| 13,565 |
| 290,097 |
| 207 |
| — |
| 303,869 |
| ||||||
Operating income (loss) |
| — |
| (11,605 | ) | (94,658 | ) | (207 | ) | — |
| (106,470 | ) | ||||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| — |
| (63,160 | ) | (1,298 | ) | — |
| — |
| (64,458 | ) | ||||||
Net gain (loss) on commodity derivatives |
| — |
| 158,753 |
| — |
| — |
| — |
| 158,753 |
| ||||||
Other income (expense) |
| 1,984 |
| (1,663 | ) | (4 | ) | — |
| — |
| 317 |
| ||||||
Other income (expense), net |
| 1,984 |
| 93,930 |
| (1,302 | ) | — |
| — |
| 94,612 |
| ||||||
Income (loss) before income tax |
| 1,984 |
| 82,325 |
| (95,960 | ) | (207 | ) | — |
| (11,858 | ) | ||||||
Equity interest in income |
| (4,728 | ) | (9,114 | ) | — |
| — |
| 13,842 |
| — |
| ||||||
Income tax provision (benefit) |
| (363 | ) | (2,418 | ) | — |
| — |
| — |
| (2,781 | ) | ||||||
Net income (loss) |
| (2,381 | ) | 75,629 |
| (95,960 | ) | (207 | ) | 13,842 |
| (9,077 | ) | ||||||
Net income (loss) attributable to non-controlling interests |
| — |
| — |
| — |
| — |
| (6,696 | ) | (6,696 | ) | ||||||
Net income (loss) attributable to controlling interests |
| $ | (2,381 | ) | $ | 75,629 |
| $ | (95,960 | ) | $ | (207 | ) | $ | 20,538 |
| $ | (2,381 | ) |
Jones Energy, Inc.
Condensed Consolidating Statement of Cash Flows (Unaudited)
Year Ended December 31, 2015
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | (2,381 | ) | $ | 75,629 |
| $ | (95,960 | ) | $ | (207 | ) | $ | 13,842 |
| $ | (9,077 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (120,398 | ) | (193,245 | ) | 405,214 |
| 197 |
| (13,842 | ) | 77,926 |
| ||||||
Net cash (used in) / provided by operations |
| (122,779 | ) | (117,616 | ) | 309,254 |
| (10 | ) | — |
| 68,849 |
| ||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Additions to oil and gas properties |
| — |
| — |
| (311,305 | ) | — |
| — |
| (311,305 | ) | ||||||
Proceeds from sales of assets |
| — |
| — |
| 41 |
| — |
| — |
| 41 |
| ||||||
Acquisition of other property, plant and equipment |
| — |
| — |
| (1,101 | ) | — |
| — |
| (1,101 | ) | ||||||
Current period settlements of matured derivative contracts |
| — |
| 144,145 |
|
|
| — |
| — |
| 144,145 |
| ||||||
Net cash (used in) / provided by investing |
| — |
| 144,145 |
| (312,365 | ) | — |
| — |
| (168,220 | ) | ||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from issuance of long-term debt |
| — |
| 85,000 |
| — |
| — |
| — |
| 85,000 |
| ||||||
Repayment under long-term debt |
| — |
| (335,000 | ) | — |
| — |
| — |
| (335,000 | ) | ||||||
Proceeds from senior notes |
| — |
| 236,475 |
| — |
| — |
| — |
| 236,475 |
| ||||||
Payment of debt issuance costs |
| — |
| (1,556 | ) | — |
| — |
| — |
| (1,556 | ) | ||||||
Proceeds from sale of common stock, net of expense |
| 122,779 |
| — |
| — |
| — |
| — |
| 122,779 |
| ||||||
Net cash (used in) / provided by financing |
| 122,779 |
| (15,081 | ) | — |
| — |
| — |
| 107,698 |
| ||||||
Net increase (decrease) in cash |
| — |
| 11,448 |
| (3,111 | ) | (10 | ) | — |
| 8,327 |
| ||||||
Cash |
|
|
|
|
|
|
|
|
|
|
| — |
| ||||||
Beginning of period |
| 100 |
| 1,000 |
| 12,436 |
| 30 |
| — |
| 13,566 |
| ||||||
End of period |
| $ | 100 |
| $ | 12,448 |
| $ | 9,325 |
| $ | 20 |
| $ | — |
| $ | 21,893 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Operations (Unaudited)
Year Ended December 31, 2014
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| $ | — |
| $ | — |
| $ | 378,401 |
| $ | — |
| $ | — |
| $ | 378,401 |
|
Other revenues |
| — |
| 1,154 |
| 1,042 |
| — |
| — |
| 2,196 |
| ||||||
Total operating revenues |
| — |
| 1,154 |
| 379,443 |
| — |
| — |
| 380,597 |
| ||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Lease operating |
| — |
| — |
| 37,760 |
| — |
| — |
| 37,760 |
| ||||||
Production and ad valorem taxes |
| — |
| — |
| 22,556 |
| — |
| — |
| 22,556 |
| ||||||
Exploration |
| — |
| — |
| 3,453 |
| — |
| — |
| 3,453 |
| ||||||
Depletion, depreciation and amortization |
| — |
| — |
| 181,578 |
| 91 |
| — |
| 181,669 |
| ||||||
Accretion of ARO liability |
| — |
| — |
| 770 |
| — |
| — |
| 770 |
| ||||||
General and administrative |
| — |
| 4,493 |
| 21,181 |
| 89 |
| — |
| 25,763 |
| ||||||
Total operating expenses |
| — |
| 4,493 |
| 267,298 |
| 180 |
| — |
| 271,971 |
| ||||||
Operating income (loss) |
| — |
| (3,339 | ) | 112,145 |
| (180 | ) | — |
| 108,626 |
| ||||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| — |
| (40,365 | ) | (1,510 | ) | — |
| — |
| (41,875 | ) | ||||||
Net gain (loss) on commodity derivatives |
| — |
| 189,641 |
| — |
| — |
| — |
| 189,641 |
| ||||||
Other income (expense) |
| — |
| (4,851 | ) | 297 |
| — |
| — |
| (4,554 | ) | ||||||
Other income (expense), net |
| — |
| 144,425 |
| (1,213 | ) | — |
| — |
| 143,212 |
| ||||||
Income (loss) before income tax |
| — |
| 141,086 |
| 110,932 |
| (180 | ) | — |
| 251,838 |
| ||||||
Equity interest in income |
| 63,197 |
| 188,641 |
| — |
| — |
| (251,838 | ) | — |
| ||||||
Income tax provision (benefit) |
| 22,061 |
| 4,157 |
| — |
| — |
| — |
| 26,218 |
| ||||||
Net income (loss) |
| 41,136 |
| 325,570 |
| 110,932 |
| (180 | ) | (251,838 | ) | 225,620 |
| ||||||
Net income (loss) attributable to non-controlling interests |
| — |
| — |
| — |
| — |
| 184,484 |
| 184,484 |
| ||||||
Net income (loss) attributable to controlling interests |
| $ | 41,136 |
| $ | 325,570 |
| $ | 110,932 |
| $ | (180 | ) | $ | (436,322 | ) | $ | 41,136 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Cash Flows (Unaudited)
Year Ended December 31, 2014
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Guarantor |
| Non- |
| Eliminations |
| Consolidated |
| ||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | 41,136 |
| $ | 325,570 |
| $ | 110,932 |
| $ | (180 | ) | $ | (251,838 | ) | $ | 225,620 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (40,778 | ) | (515,500 | ) | 343,999 |
| 140 |
| 251,838 |
| 39,699 |
| ||||||
Net cash (used in) / provided by operations |
| 358 |
| (189,930 | ) | 454,931 |
| (40 | ) | — |
| 265,319 |
| ||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Additions to oil and gas properties |
| — |
| — |
| (474,619 | ) | — |
| — |
| (474,619 | ) | ||||||
Net adjustments to purchase price of properties acquired |
| — |
| — |
| 15,709 |
| — |
| — |
| 15,709 |
| ||||||
Proceeds from sales of assets |
| — |
| — |
| 448 |
| — |
| — |
| 448 |
| ||||||
Acquisition of other property, plant and equipment |
| — |
| — |
| (1,683 | ) | — |
| — |
| (1,683 | ) | ||||||
Current period settlements of matured derivative contracts |
| — |
| (3,654 | ) | — |
| — |
| — |
| (3,654 | ) | ||||||
Net cash (used in) / provided by investing |
| — |
| (3,654 | ) | (460,145 | ) | — |
| — |
| (463,799 | ) | ||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from issuance of long-term debt |
| — |
| 170,000 |
| — |
| — |
| — |
| 170,000 |
| ||||||
Repayment under long-term debt |
| — |
| (468,000 | ) | — |
| — |
| — |
| (468,000 | ) | ||||||
Proceeds from senior notes |
| — |
| 500,000 |
| — |
| — |
| — |
| 500,000 |
| ||||||
Payment of debt issuance costs |
| — |
| (13,416 | ) | — |
| — |
| — |
| (13,416 | ) | ||||||
Purchases of treasury stock |
| (358 | ) | — |
| — |
| — |
| — |
| (358 | ) | ||||||
Net cash (used in) / provided by financing |
| (358 | ) | 188,584 |
| — |
| — |
| — |
| 188,226 |
| ||||||
Net increase (decrease) in cash |
| — |
| (5,000 | ) | (5,214 | ) | (40 | ) | — |
| (10,254 | ) | ||||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Beginning of period |
| 100 |
| 6,000 |
| 17,650 |
| 70 |
| — |
| 23,820 |
| ||||||
End of period |
| $ | 100 |
| $ | 1,000 |
| $ | 12,436 |
| $ | 30 |
| $ | — |
| $ | 13,566 |
|
Jones Energy, Inc.
Condensed Consolidating Balance Sheet (Unaudited)
March 31, 2017
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Guarantor |
| Non-Guarantor |
| Eliminations |
| Consolidated |
| ||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash |
| $ | 4,781 |
| $ | 239 |
| $ | 3,668 |
| $ | 20 |
| $ | — |
| $ | 8,708 |
|
Accounts receivable, net |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| — |
| — |
| 25,787 |
| — |
| — |
| 25,787 |
| ||||||
Joint interest owners |
| — |
| — |
| 6,533 |
| — |
| — |
| 6,533 |
| ||||||
Other |
| — |
| 3,907 |
| 311 |
| — |
| — |
| 4,218 |
| ||||||
Commodity derivative assets |
| — |
| 30,101 |
| — |
| — |
| — |
| 30,101 |
| ||||||
Other current assets |
| 342 |
| 224 |
| 6,712 |
| — |
| — |
| 7,278 |
| ||||||
Intercompany receivable |
| 17,581 |
| 1,117,801 |
| — |
| — |
| (1,135,382 | ) | — |
| ||||||
Total current assets |
| 22,704 |
| 1,152,272 |
| 43,011 |
| 20 |
| (1,135,382 | ) | 82,625 |
| ||||||
Oil and gas properties, net, at cost under the successful efforts method |
| — |
| — |
| 1,764,947 |
| — |
| — |
| 1,764,947 |
| ||||||
Other property, plant and equipment, net |
| — |
| — |
| 2,325 |
| 595 |
| — |
| 2,920 |
| ||||||
Commodity derivative assets |
| — |
| 17,767 |
| — |
| — |
| — |
| 17,767 |
| ||||||
Other assets |
| — |
| 4,867 |
| 895 |
| — |
| — |
| 5,762 |
| ||||||
Investment in subsidiaries |
| 548,561 |
| 450,547 |
| — |
| — |
| (999,108 | ) | — |
| ||||||
Total assets |
| $ | 571,265 |
| $ | 1,625,453 |
| $ | 1,811,178 |
| $ | 615 |
| $ | (2,134,490 | ) | $ | 1,874,021 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Trade accounts payable |
| $ | 31 |
| $ | 29 |
| $ | 55,697 |
| $ | — |
| $ | — |
| $ | 55,757 |
|
Oil and gas sales payable |
| — |
| — |
| 28,112 |
| — |
| — |
| 28,112 |
| ||||||
Accrued liabilities |
| 58 |
| 14,813 |
| 10,077 |
| — |
| — |
| 24,948 |
| ||||||
Commodity derivative liabilities |
| — |
| 8,717 |
| — |
| — |
| — |
| 8,717 |
| ||||||
Other current liabilities |
| 639 |
| 1,984 |
| 600 |
| — |
| — |
| 3,223 |
| ||||||
Intercompany payable |
| — |
| — |
| 1,132,533 |
| 2,849 |
| (1,135,382 | ) | — |
| ||||||
Total current liabilities |
| 728 |
| 25,543 |
| 1,227,019 |
| 2,849 |
| (1,135,382 | ) | 120,757 |
| ||||||
Long-term debt |
| — |
| 701,586 |
| — |
| — |
| — |
| 701,586 |
| ||||||
Deferred revenue |
| — |
| 6,591 |
| — |
| — |
| — |
| 6,591 |
| ||||||
Commodity derivative liabilities |
| — |
| 178 |
| — |
| — |
| — |
| 178 |
| ||||||
Asset retirement obligations |
| — |
| — |
| 20,035 |
| — |
| — |
| 20,035 |
| ||||||
Liability under tax receivable agreement |
| 41,720 |
| — |
| — |
| — |
| — |
| 41,720 |
| ||||||
Other liabilities |
| — |
| 316 |
| 633 |
| — |
| — |
| 949 |
| ||||||
Deferred tax liabilities |
| 85 |
| 2,841 |
| — |
| — |
| — |
| 2,926 |
| ||||||
Total liabilities |
| 42,533 |
| 737,055 |
| 1,247,687 |
| 2,849 |
| (1,135,382 | ) | 894,742 |
| ||||||
Mezzanine equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at March 31, 2017 |
| 89,162 |
| — |
| — |
| — |
| — |
| 89,162 |
| ||||||
Stockholders’/ members’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Members’ equity |
| — |
| 888,398 |
| 563,491 |
| (2,234 | ) | (1,449,655 | ) | — |
| ||||||
Class A common stock, $0.001 par value; 63,395,635 shares issued and 63,373,033 shares outstanding at March 31, 2017 |
| 63 |
| — |
| — |
| — |
| — |
| 63 |
| ||||||
Class B common stock, $0.001 par value; 29,832,098 shares issued and outstanding at March 31, 2017 |
| 30 |
| — |
| — |
| — |
| — |
| 30 |
| ||||||
Treasury stock, at cost: 22,602 shares at March 31, 2017 |
| (358 | ) | — |
| — |
| — |
| — |
| (358 | ) | ||||||
Additional paid-in-capital |
| 470,107 |
| — |
| — |
| — |
| — |
| 470,107 |
| ||||||
Retained earnings (deficit) |
| (30,272 | ) | — |
| — |
| — |
| — |
| (30,272 | ) | ||||||
Stockholders’ equity |
| 439,570 |
| 888,398 |
| 563,491 |
| (2,234 | ) | (1,449,655 | ) | 439,570 |
| ||||||
Non-controlling interest |
| — |
| — |
| — |
| — |
| 450,547 |
| 450,547 |
| ||||||
Total stockholders’ equity |
| 439,570 |
| 888,398 |
| 563,491 |
| (2,234 | ) | (999,108 | ) | 890,117 |
| ||||||
Total liabilities and stockholders’ equity |
| $ | 571,265 |
| $ | 1,625,453 |
| $ | 1,811,178 |
| $ | 615 |
| $ | (2,134,490 | ) | $ | 1,874,021 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Operations (Unaudited)
Three Months Ended March 31, 2017
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| $ | — |
| $ | — |
| $ | 40,677 |
| $ | — |
| $ | — |
| $ | 40,677 |
|
Other revenues |
| — |
| 458 |
| 98 |
| — |
| — |
| 556 |
| ||||||
Total operating revenues |
| — |
| 458 |
| 40,775 |
| — |
| — |
| 41,233 |
| ||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Lease operating |
| — |
| — |
| 8,806 |
| — |
| — |
| 8,806 |
| ||||||
Production and ad valorem taxes |
| — |
| — |
| (906 | ) | — |
| — |
| (906 | ) | ||||||
Exploration |
| — |
| — |
| 2,944 |
| — |
| — |
| 2,944 |
| ||||||
Depletion, depreciation and amortization |
| — |
| — |
| 35,631 |
| 23 |
| — |
| 35,654 |
| ||||||
Accretion of ARO liability |
| — |
| — |
| 201 |
| — |
| — |
| 201 |
| ||||||
General and administrative |
| — |
| 2,993 |
| 5,004 |
| 44 |
| — |
| 8,041 |
| ||||||
Total operating expenses |
| — |
| 2,993 |
| 51,680 |
| 67 |
| — |
| 54,740 |
| ||||||
Operating income (loss) |
| — |
| (2,535 | ) | (10,905 | ) | (67 | ) | — |
| (13,507 | ) | ||||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| — |
| (12,814 | ) | (73 | ) | — |
| — |
| (12,887 | ) | ||||||
Net gain (loss) on commodity derivatives |
| — |
| 22,320 |
| — |
| — |
| — |
| 22,320 |
| ||||||
Other income (expense) |
| 668 |
| (24 | ) | (64 | ) | — |
| — |
| 580 |
| ||||||
Other income (expense), net |
| 668 |
| 9,482 |
| (137 | ) | — |
| — |
| 10,013 |
| ||||||
Income (loss) before income tax |
| 668 |
| 6,947 |
| (11,042 | ) | (67 | ) | — |
| (3,494 | ) | ||||||
Equity interest in income |
| (2,055 | ) | (2,107 | ) | — |
| — |
| 4,162 |
| — |
| ||||||
Income tax provision (benefit) |
| — |
| 21 |
| — |
| — |
| — |
| 21 |
| ||||||
Net income (loss) |
| (1,387 | ) | 4,819 |
| (11,042 | ) | (67 | ) | 4,162 |
| (3,515 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) attributable to non-controlling interests |
| — |
| — |
| — |
| — |
| (2,128 | ) | (2,128 | ) | ||||||
Net income (loss) attributable to controlling interests |
| $ | (1,387 | ) | $ | 4,819 |
| $ | (11,042 | ) | $ | (67 | ) | $ | 6,290 |
| $ | (1,387 | ) |
Dividends and accretion on preferred stock |
| (2,027 | ) | — |
| — |
| — |
| — |
| (2,027 | ) | ||||||
Net income (loss) attributable to common shareholders |
| $ | (3,414 | ) | $ | 4,819 |
| $ | (11,042 | ) | $ | (67 | ) | $ | 6,290 |
| $ | (3,414 | ) |
Jones Energy, Inc.
Condensed Consolidating Statement of Cash Flows (Unaudited)
Three Months Ended March 31, 2017
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | (1,387 | ) | $ | 4,819 |
| $ | (11,042 | ) | $ | (67 | ) | $ | 4,162 |
| $ | (3,515 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (23,060 | ) | (9,741 | ) | 53,994 |
| 67 |
| (4,162 | ) | 17,098 |
| ||||||
Net cash (used in) / provided by operations |
| (24,447 | ) | (4,922 | ) | 42,952 |
| — |
| — |
| 13,583 |
| ||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Additions to oil and gas properties |
| — |
| — |
| (47,110 | ) | — |
| — |
| (47,110 | ) | ||||||
Net adjustments to purchase price of properties acquired |
| — |
| — |
| 2,391 |
| — |
| — |
| 2,391 |
| ||||||
Proceeds from sales of assets |
| — |
| — |
| 144 |
| — |
| — |
| 144 |
| ||||||
Acquisition of other property, plant and equipment |
| — |
| — |
| (192 | ) | — |
| — |
| (192 | ) | ||||||
Current period settlements of matured derivative contracts |
| — |
| 27,854 |
| — |
| — |
| — |
| 27,854 |
| ||||||
Net cash (used in) / provided by investing |
| — |
| 27,854 |
| (44,767 | ) | — |
| — |
| (16,913 | ) | ||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from issuance of long-term debt |
| — |
| 30,000 |
| — |
| — |
| — |
| 30,000 |
| ||||||
Repayment of long-term debt |
| — |
| (53,000 | ) | — |
| — |
| — |
| (53,000 | ) | ||||||
Payment of dividends on preferred stock |
| (1,840 | ) | — |
| — |
| — |
| — |
| (1,840 | ) | ||||||
Net distributions paid to JEH unitholders |
| 1,075 |
| (1,637 | ) | — |
| — |
| — |
| (562 | ) | ||||||
Net payments for share based compensation |
| — |
| (31 | ) | — |
| — |
| — |
| (31 | ) | ||||||
Proceeds from sale of common stock |
| 2,829 |
| — |
| — |
| — |
| — |
| 2,829 |
| ||||||
Net cash (used in) / provided by financing |
| 2,064 |
| (24,668 | ) | — |
| — |
| — |
| (22,604 | ) | ||||||
Net increase (decrease) in cash |
| (22,383 | ) | (1,736 | ) | (1,815 | ) | — |
| — |
| (25,934 | ) | ||||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Beginning of period |
| 27,164 |
| 1,975 |
| 5,483 |
| 20 |
| — |
| 34,642 |
| ||||||
End of period |
| $ | 4,781 |
| $ | 239 |
| $ | 3,668 |
| $ | 20 |
| $ | — |
| $ | 8,708 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Operations (Unaudited)
Three Months Ended March 31, 2016
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Oil and gas sales |
| $ | — |
| $ | — |
| $ | 25,080 |
| $ | — |
| $ | — |
| $ | 25,080 |
|
Other revenues |
| — |
| 645 |
| 133 |
| — |
| — |
| 778 |
| ||||||
Total operating revenues |
| — |
| 645 |
| 25,213 |
| — |
| — |
| 25,858 |
| ||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Lease operating |
| — |
| — |
| 8,617 |
| — |
| — |
| 8,617 |
| ||||||
Production and ad valorem taxes |
| — |
| — |
| 1,601 |
| — |
| — |
| 1,601 |
| ||||||
Exploration |
| — |
| — |
| 162 |
| — |
| — |
| 162 |
| ||||||
Depletion, depreciation and amortization |
| — |
| — |
| 41,739 |
| 23 |
| — |
| 41,762 |
| ||||||
Accretion of ARO liability |
| — |
| — |
| 293 |
| — |
| — |
| 293 |
| ||||||
General and administrative |
| — |
| 2,878 |
| 4,601 |
| 25 |
| — |
| 7,504 |
| ||||||
Total operating expenses |
| — |
| 2,878 |
| 57,013 |
| 48 |
| — |
| 59,939 |
| ||||||
Operating income (loss) |
| — |
| (2,233 | ) | (31,800 | ) | (48 | ) | — |
| (34,081 | ) | ||||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| — |
| (15,038 | ) | 240 |
| — |
| — |
| (14,798 | ) | ||||||
Gain on debt extinguishment |
| — |
| 90,652 |
| — |
| — |
| — |
| 90,652 |
| ||||||
Net gain (loss) on commodity derivatives |
| — |
| 17,219 |
| — |
| — |
| — |
| 17,219 |
| ||||||
Other income (expense) |
| 429 |
| (200 | ) | (4 | ) | — |
| — |
| 225 |
| ||||||
Other income (expense), net |
| 429 |
| 92,633 |
| 236 |
| — |
| — |
| 93,298 |
| ||||||
Income (loss) before income tax |
| 429 |
| 90,400 |
| (31,564 | ) | (48 | ) | — |
| 59,217 |
| ||||||
Equity interest in income |
| 28,968 |
| 29,820 |
| — |
| — |
| (58,788 | ) | — |
| ||||||
Income tax provision (benefit) |
| 10,486 |
| 217 |
| — |
| — |
| — |
| 10,703 |
| ||||||
Net income (loss) |
| 18,911 |
| 120,003 |
| (31,564 | ) | (48 | ) | (58,788 | ) | 48,514 |
| ||||||
Net income (loss) attributable to non-controlling interests |
| — |
| — |
| — |
| — |
| 29,603 |
| 29,603 |
| ||||||
Net income (loss) attributable to controlling interests |
| $ | 18,911 |
| $ | 120,003 |
| $ | (31,564 | ) | $ | (48 | ) | $ | (88,391 | ) | $ | 18,911 |
|
Jones Energy, Inc.
Condensed Consolidating Statement of Cash Flows (Unaudited)
Three Months Ended March 31, 2016
|
|
|
|
|
| Guarantor |
| Non-Guarantor |
|
|
|
|
| ||||||
(in thousands of dollars) |
| JEI (Parent) |
| Issuers |
| Subsidiaries |
| Subsidiaries |
| Eliminations |
| Consolidated |
| ||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | 18,911 |
| $ | 120,003 |
| $ | (31,564 | ) | $ | (48 | ) | $ | (58,788 | ) | $ | 48,514 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (18,911 | ) | (163,942 | ) | 70,677 |
| 48 |
| 58,788 |
| (53,340 | ) | ||||||
Net cash (used in) / provided by operations |
| — |
| (43,939 | ) | 39,113 |
| — |
| — |
| (4,826 | ) | ||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Additions to oil and gas properties |
| — |
| — |
| (7,176 | ) | — |
| — |
| (7,176 | ) | ||||||
Proceeds from sales of assets |
| — |
| — |
| 3 |
| — |
| — |
| 3 |
| ||||||
Acquisition of other property, plant and equipment |
| — |
| — |
| 40 |
| — |
| — |
| 40 |
| ||||||
Current period settlements of matured derivative contracts |
| — |
| 42,298 |
|
|
| — |
| — |
| 42,298 |
| ||||||
Net cash (used in) / provided by investing |
| — |
| 42,298 |
| (7,133 | ) | — |
| — |
| 35,165 |
| ||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from issuance of long-term debt |
| — |
| 75,000 |
| — |
| — |
| — |
| 75,000 |
| ||||||
Purchase of senior notes |
| — |
| (73,427 | ) | — |
| — |
| — |
| (73,427 | ) | ||||||
Net cash (used in) / provided by financing |
| — |
| 1,573 |
| — |
| — |
| — |
| 1,573 |
| ||||||
Net increase (decrease) in cash |
| — |
| (68 | ) | 31,980 |
| — |
| — |
| 31,912 |
| ||||||
Cash |
|
|
|
|
|
|
|
|
|
|
| — |
| ||||||
Beginning of period |
| 100 |
| 12,448 |
| 9,325 |
| 20 |
| — |
| 21,893 |
| ||||||
End of period |
| $ | 100 |
| $ | 12,380 |
| $ | 41,305 |
| $ | 20 |
| $ | — |
| $ | 53,805 |
|