Jones Energy (JONEQ) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Entity Registrant Name	Jones Energy, Inc.
Entity Central Index Key	1,573,166
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Class A common stock
Entity Common Stock, Shares Outstanding		57,009,550
Class B common stock
Entity Common Stock, Shares Outstanding		29,832,098

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 24,041	$ 21,893
Accounts receivable, net
Oil and gas sales	20,720	19,292
Joint interest owners	4,880	11,314
Other	10,015	15,170
Commodity derivative assets	48,784	124,207
Other current assets	2,603	2,298
Total current assets	111,043	194,174
Oil and gas properties, net, at cost under the successful efforts method	1,742,165	1,635,766
Other property, plant and equipment, net	3,186	3,873
Commodity derivative assets	50,469	93,302
Other assets	6,406	8,039
Total assets	1,913,269	1,935,154
Current liabilities
Trade accounts payable	27,328	7,467
Oil and gas sales payable	26,445	32,408
Accrued liabilities	28,793	27,011
Commodity derivative liabilities	1,618	11
Asset retirement obligations	679	679
Total current liabilities	84,863	67,576
Long-term debt	688,432	837,654
Deferred revenue	9,589	11,417
Commodity derivative liabilities	526
Asset retirement obligations	27,452	20,301
Liability under tax receivable agreement	43,212	38,052
Other liabilities	656	330
Deferred tax liabilities	16,070	22,972
Total liabilities	870,800	998,302
Commitments and contingencies
Mezzanine equity
Series A preferred stock	88,743
Stockholders' equity
Treasury stock, at cost: 22,602 shares at September 30, 2016 and December 31, 2015	(358)	(358)
Additional paid-in-capital	447,400	363,723
Retained earnings	21,617	36,569
Stockholders' equity	468,746	399,996
Non-controlling interest	484,980	536,856
Total stockholders' equity	953,726	936,852
Total liabilities and stockholders' equity	1,913,269	1,935,154
Class A common stock
Stockholders' equity
Common stock	57	31
Class B common stock
Stockholders' equity
Common stock	$ 30	$ 31

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Mezzanine equity
Series A preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series A preferred stock, shares issued	1,840,000	0
Series A preferred stock, shares outstanding	1,840,000	0
Treasury stock
Treasury stock, shares	22,602	22,602
Class A common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	56,991,824	30,573,509
Common stock, shares outstanding	56,969,222	30,550,907
Class B common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	29,872,426	31,273,130
Common stock, shares outstanding	29,872,426	31,273,130

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Oil and gas sales	$ 32,582	$ 46,499	$ 86,060	$ 156,955
Other revenues	771	653	2,295	2,210
Total operating revenues	33,353	47,152	88,355	159,165
Operating costs and expenses
Lease operating	7,865	8,872	24,027	32,930
Production and ad valorem taxes	1,733	2,513	5,061	9,292
Exploration	998	5,556	1,237	6,184
Depletion, depreciation and amortization	36,550	52,766	116,449	156,151
Accretion of ARO liability	323	210	913	610
General and administrative	6,448	9,628	22,078	27,572
Other operating				4,188
Total operating expenses	53,917	79,545	169,765	236,927
Operating income (loss)	(20,564)	(32,393)	(81,410)	(77,762)
Other income (expense)
Interest expense	(12,792)	(16,722)	(40,397)	(47,553)
Gain on debt extinguishment			99,530
Net gain (loss) on commodity derivatives	4,014	90,483	(18,769)	111,714
Other income (expense)	364	(7)	251	(1,631)
Other income (expense), net	(8,414)	73,754	40,615	62,530
Income (loss) before income tax	(28,978)	41,361	(40,795)	(15,232)
Income tax provision (benefit)	(6,549)	6,519	(8,234)	(4,590)
Net income (loss)	(22,429)	34,842	(32,561)	(10,642)
Net income (loss) attributable to non-controlling interests	(12,576)	21,604	(18,374)	(7,625)
Net income (loss) attributable to controlling interests	(9,853)	13,238	(14,187)	(3,017)
Dividends and accretion on preferred stock	(765)		(765)
Net income (loss) attributable to common shareholders	$ (10,618)	$ 13,238	$ (14,952)	$ (3,017)
Earnings (loss) per share:
Basic - Net income (loss) attributable to common shareholders	$ (0.26)	$ 0.44	$ (0.44)	$ (0.12)
Diluted - Net income (loss) attributable to common shareholders	$ (0.26)	$ 0.44	$ (0.44)	$ (0.12)
Weighted average shares outstanding:
Basic (in shares)	41,375	30,432	34,300	25,591
Diluted (in shares)	41,375	30,432	34,300	25,591

Statement of Changes in Stockho

Statement of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Common StockClass A common stock	Common StockClass B common stock	Treasury StockClass A common stock	Additional Paid-in-Capital	Retained (Deficit)/ Earnings	Non-controlling Interest	Total
Balance at Dec. 31, 2015	$ 31	$ 31	$ (358)	$ 363,723	$ 36,569	$ 536,856	$ 936,852
Balance (in shares) at Dec. 31, 2015	30,551	31,273	23
Increase (Decrease) Stockholders' Equity
Stock-compensation expense				5,269			5,269
Vested restricted shares (in shares)	369
Distributions from partnership						(10,109)	(10,109)
Sale of common stock	$ 25			65,523			65,548
Sale of common stock (in shares)	24,648
Exchange of Class B Shares for Class A Shares	$ 1	$ (1)		12,885		(23,393)	(10,508)
Exchange of Class B shares for Class A shares (in shares)	1,401	(1,401)
Preferred dividends on redeemable non-controlling interest					(716)		(716)
Accretion of redeemable non-controlling interest					(49)		(49)
Net income (loss)					(14,187)	(18,374)	(32,561)
Balance at Sep. 30, 2016	$ 57	$ 30	$ (358)	$ 447,400	$ 21,617	$ 484,980	$ 953,726
Balance (in shares) at Sep. 30, 2016	56,969	29,872	23

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income (loss)	$ (32,561)	$ (10,642)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depletion, depreciation, and amortization	116,449	156,151
Exploration (dry hole and lease abandonment)	945	5,250
Accretion of ARO liability	913	610
Amortization of debt issuance costs	3,083	3,379
Stock compensation expense	5,269	5,287
Deferred and other non-cash compensation expense	614	326
Amortization of deferred revenue	(1,828)	(1,521)
(Gain) loss on commodity derivatives	18,769	(111,714)
(Gain) loss on sales of assets	(68)	(10)
(Gain) on debt extinguishment	(99,530)
Deferred income tax provision	(11,824)	(4,590)
Other - net	805	1,178
Changes in operating assets and liabilities
Accounts receivable	8,964	54,244
Other assets	(466)	719
Accrued interest expense	(1,050)	9,577
Accounts payable and accrued liabilities	6,425	(19,185)
Net cash provided by operations	14,909	89,059
Cash flows from investing activities
Additions to oil and gas properties	(210,878)	(280,528)
Proceeds from sales of assets	74	37
Acquisition of other property, plant and equipment (net of reimbursements)	(194)	(1,034)
Current period settlements of matured derivative contracts	106,151	103,858
Net cash (used in) investing	(104,847)	(177,667)
Cash flows from financing activities
Proceeds from issuance of long-term debt	75,000	75,000
Repayment under long-term debt	(42,000)	(335,000)
Proceeds from senior notes		236,475
Purchase of senior notes	(84,589)
Payment of debt issuance costs		(1,514)
Net distributions paid to JEH unitholders	(10,109)
Proceeds from sale of common stock	65,548	122,779
Proceeds from sale of preferred stock	88,236
Net cash (used in) / provided by financing	92,086	97,740
Net increase (decrease) in cash	2,148	9,132
Cash
Beginning of period	21,893	13,566
End of period	24,041	22,698
Supplemental disclosure of cash flow information
Cash paid for interest	38,380	34,594
Change in accrued additions to oil and gas properties	9,031	(94,552)
Asset retirement obligations incurred, including changes in estimate	$ 6,785	$ 1,370

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2016
Organization and Description of Business
Organization and Description of Business	Jones Energy, Inc. Notes to the Consolidated Financial Statement 1. Organization and Description of Business Organization Jones Energy, Inc. (the “Company”) was formed in March 2013 as a Delaware corporation to become a publicly-traded entity and the holding company of Jones Energy Holdings, LLC (“JEH”). As the sole managing member of JEH, the Company is responsible for all operational, management and administrative decisions relating to JEH’s business and consolidates the financial results of JEH and its subsidiaries. JEH was formed as a Delaware limited liability company on December 16, 2009 through investments made by the Jones family and through private equity funds managed by Metalmark Capital and Wells Fargo Energy Capital (collectively, the “Pre-IPO Owners”). JEH acts as a holding company of operating subsidiaries that own and operate assets that are used in the exploration, development, production and acquisition of oil and natural gas properties. The Company’s certificate of incorporation authorizes two classes of common stock, Class A common stock and Class B common stock. The Class B common stock is held by the owners of JEH prior to the Company’s initial public offering (“IPO”) and can be exchanged (together with a corresponding number of common units representing membership interests in JEH (“JEH Units”)) for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions. The Class B common stock has no economic rights but entitles its holders to one vote on all matters to be voted on by the Company’s stockholders generally. As of September 30, 2016, the Company held 56,969,222 JEH Units and all of the preferred units representing membership interests in JEH, and the remaining 29,872,426 JEH Units are held by the Pre-IPO Owners. The Pre-IPO Owners have no voting rights with respect to their economic interest in JEH, resulting in the Company reporting this ownership interest as a non-controlling interest. The Company’s certificate of incorporation also authorizes the Board of Directors of the Company to establish one or more series of preferred stock. Unless required by law or by any stock exchange on which our common stock is listed, the authorized shares of preferred stock will be available for issuance without further action. Rights and privileges associated with shares of preferred stock are subject to authorization by the Board of Directors of the Company and may differ from those of any and all other series at any time outstanding. On August 25, 2016, the Company issued 1.84 million shares of its 8.0% Series A Perpetual Convertible preferred stock, par value $0.001 per share (the “Series A preferred stock”), pursuant to a registered public offering at $50 per share, for gross proceeds of approximately $92 million, before underwriting discounts and commissions of $3.68 million. See Note 11, “Stockholders’ and Mezzanine equity”. Description of Business The Company is engaged in the exploration, development, production and acquisition of oil and natural gas properties in the mid-continent United States. The Company’s assets are located within the Western Anadarko, Eastern Anadarko and Arkoma basins of Texas and Oklahoma, and are owned by JEH and its operating subsidiaries. The Company is headquartered in Austin, Texas.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s financial position as of December 31, 2015 and the financial statements reported for September 30, 2016 and 2015 and the three and nine month periods then ended include the Company and all of its subsidiaries. Certain prior period amounts have been reclassified to conform to the current presentation. The accompanying unaudited condensed consolidated financial statements for the periods ending September 30, 2016 and 2015 have been prepared in accordance with GAAP accounting principles for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report. The Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. It is recommended that these unaudited condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements included in Jones Energy, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates There have been no significant changes in our use of estimates since those reported in Jones Energy, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015. Recent Accounting Pronouncements Adopted in the current year-to-date period: In January 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, “Income Statement—Extraordinary and Unusual Items.” This ASU removes the concept of extraordinary items from GAAP. Under existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net of tax presentation will no longer be allowed. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Therefore, the Company adopted ASU No. 2015-01 beginning in the period ended March 31, 2016. Adoption did not have a material impact on the financial position, cash flows or results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest” (Subtopic 835-30): “Simplifying the Presentation of Debt Issuance Costs.” Entities that have historically presented debt issuance costs as an asset, related to a recognized debt liability, will be required to present those costs as a direct deduction from the carrying amount of that debt liability. The ASU does not change the recognition, measurement, or subsequent measurement guidance for debt issuance costs. Adoption of this ASU will be applied retrospectively. In August 2015, the FASB issued ASU No. 2015-15, “Interest—Imputation of Interest” (Subtopic 835-30), which addresses the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Therefore, the Company adopted ASU No. 2015-03 beginning with the period ended March 31, 2016. Changes to the balance sheet have been applied on a retrospective basis. This resulted in the reclassification of debt issuance costs of $10.3 million from Other assets to Long-term debt in the Consolidated Balance Sheet for the period ended December 31, 2015. Adoption did not have a material impact on the financial position, cash flows or results of operations. To be adopted in a future period: In May 2014, the FASB issued ASU No. 2014‑09, “Revenue from Contracts with Customers,” which creates a new topic in the Accounting Standards Codification (“ASC”), topic 606, “Revenue from Contracts with Customers.” This ASU sets forth a five‑step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additional disclosures will be required to describe the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015‑14, which deferred the effective date of ASU 2014‑09 by one year. The amendments are now effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied on either a full or modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of Update 2014‑09 and Update 2015‑14 will have on our financial statements. In February 2016, the FASB issued ASU 2016‑02, “Leases” (Topic 842). This amendment requires, among other things, that lessees recognize the following for all leases (with the exception of short‑term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impacts of the amendments to our financial statements and accounting practices for leases. In March 2016, the FASB issued ASU 2016‑09, “Compensation—Stock Compensation” (Topic 718). This amendment is intended to simplify the accounting for share-based payment awards to employees, specifically in regard to (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. The amendments are effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of ASU 2016-09 will have on our financial statements.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2016
Acquisitions
Acquisitions	3. Acquisitions Merge Acquisition On August 18, 2016, JEH entered into a definitive purchase and sale agreement with SCOOP Energy Company, LLC, an Oklahoma limited liability company, to acquire oil and gas properties located in the Merge area of the STACK/SCOOP (the “Merge”) play in Central Oklahoma (the “Merge Acquisition”). The oil and gas properties acquired in the Merge Acquisition principally consist of approximately 18,000 undeveloped net acres in Canadian, Grady and McClain Counties, Oklahoma. The Company closed the Merge Acquisition on September 22, 2016, for cash consideration of approximately $136.5 million, subject to customary post-closing adjustments. This transaction has been accounted for as an asset acquisition. The Company used proceeds from our equity offerings to fund the purchase. See Note 11, “Stockholders’ and Mezzanine equity”. Anadarko Acquisition On August 3, 2016, JEH LLC entered into a definitive agreement to acquire producing and undeveloped oil and gas assets in the Western Anadarko Basin (the “Anadarko Acquisition”) for $27.1 million, subject to customary closing adjustments. The assets acquired in the Anadarko Acquisition included interests in 174 wells, 59% of which were operated by the company, and approximately 25,000 net acres in Lipscomb and Ochiltree Counties in the Texas Panhandle, subject to reductions for exercised preferential purchase rights and failures to obtain required consents. The Company closed the Anadarko Acquisition on August 25, 2016, at which time, the acquired acreage was producing approximately 900 barrels of oil equivalent per day. This transaction was accounted for as a business combination. The Company allocated the entire purchase price of $27.1 million to “Oil and gas properties,” based on the respective fair values of the assets acquired. The Anadarko Acquisition did not result in a significant impact to net income and as such, pro forma financial information was not included. The Company funded the Anadarko Acquisition with cash on hand.

Properties, Plant and Equipment

Properties, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
Properties, Plant and Equipment
Properties, Plant and Equipment	4. Properties, Plant and Equipment Oil and Gas Properties The Company accounts for its oil and natural gas exploration and production activities under the successful efforts method of accounting. Oil and gas properties consisted of the following at September 30, 2016 and December 31, 2015: September 30, December 31, (in thousands of dollars) 2016 2015 Mineral interests in properties Unproved $ $ Proved Wells and equipment and related facilities Less: Accumulated depletion and impairment Net oil and gas properties $ $ One exploratory well was drilled during the nine months ended September 30, 2016, for which associated costs of $1.2 million were capitalized. There were no exploratory wells drilled during the nine months ended September 30, 2015 and, as such, no associated costs were capitalized. No exploratory wells resulted in exploration expense during either year. The Company did not capitalize any interest during the nine months ended September 30, 2016 as no projects lasted more than six months. Costs incurred to maintain wells and related equipment are charged to expense as incurred. Depletion of oil and gas properties amounted to $36.3 million and $115.6 million for the three and nine months ended September 30, 2016, respectively, and $52.5 million and $155.3 million for the three and nine months ended September 30, 2015, respectively. Due to recent fluctuations in forward commodity prices, the Company continued to monitor its proved and unproved properties for impairment as of September 30, 2016, and no impairment charges were recorded in the quarter. Other Property, Plant and Equipment Other property, plant and equipment consisted of the following at September 30, 2016 and December 31, 2015: September 30, December 31, (in thousands of dollars) 2016 2015 Leasehold improvements $ $ Furniture, fixtures, computers and software Vehicles Aircraft Other Less: Accumulated depreciation and amortization Net other property, plant and equipment $ $ Depreciation and amortization of other property, plant and equipment amounted to $0.3 million and $0.9 million for the three and nine months ended September 30, 2016, respectively, and $0.3 million and $0.9 million for the three and nine months ended September 30, 2015, respectively.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Long-Term Debt
Long-Term Debt	5. Long-Term Debt Long-term debt consisted of the following at September 30, 2016 and December 31, 2015: (in thousands of dollars) September 30, 2016 December 31, 2015 Revolver $ $ 2022 Notes 2023 Notes Total principal amount Less: unamortized discount Less: debt issuance costs, net Total carrying amount $ $ Senior Unsecured Notes On April 1, 2014, JEH and Jones Energy Finance Corp., JEH’s wholly owned subsidiary formed for the sole purpose of co-issuing certain of JEH’s debt (collectively, the “Issuers”), sold $500.0 million in aggregate principal amount of the Issuers’ 6.75% senior notes due 2022 (the “2022 Notes”). The Company used the net proceeds from the issuance of the 2022 Notes to repay all outstanding borrowings under the Term Loan (as defined below) ($160.0 million), a portion of the outstanding borrowings under the Revolver (as defined below) ($308.0 million) and for working capital and general corporate purposes. The Company subsequently terminated the Term Loan in accordance with its terms. The 2022 Notes bear interest at a rate of 6.75% per year, payable semi-annually on April 1 and October 1 of each year beginning October 1, 2014. The 2022 Notes were registered in March 2015. On February 23, 2015, the Issuers sold $250.0 million in aggregate principal amount of 9.25% senior notes due 2023 (the “2023 Notes”) in a private placement to affiliates of GSO Capital Partners LP and Magnetar Capital LLC. The 2023 Notes were issued at a discounted price equal to 94.59% of the principal amount. The Company used the $236.5 million net proceeds from the issuance of the 2023 Notes to repay outstanding borrowings under the Revolver and for working capital and general corporate purposes. The 2023 Notes bear interest at a rate of 9.25% per year, payable semi-annually on March 15 and September 15 of each year beginning September 15, 2015. The 2023 Notes were registered in February 2016. During the nine months ended September 30, 2016, through several open market and privately negotiated purchases, the Company purchased an aggregate principal amount of $190.9 million of its senior unsecured notes. As of September 30, 2016, the Company had purchased $90.9 million principal amount of its 2022 Notes for $38.1 million, and $100.0 million principal amount of its 2023 Notes for $46.5 million, in each case excluding accrued interest and including any associated fees. The Company used cash on hand and borrowings from its Revolver to fund the note purchases. In conjunction with the extinguishment of this debt, JEH recognized cancellation of debt income of $99.5 million for the nine months ended September 30, 2016, on a pre-tax basis. This income is recorded in Gain on debt extinguishment on the Company’s Consolidated Statement of Operations. Of the Company’s total repurchases, $20.3 million principal amount of its 2022 Notes were not cancelled and are available for future reissuance, subject to applicable securities laws. The 2022 Notes and 2023 Notes are guaranteed on a senior unsecured basis by the Company and by all of its significant subsidiaries other than the new subsidiary formed to acquire the properties in the Merge Acquisition, which is required to become a guarantor no later than January 31, 2017. The 2022 Notes and 2023 Notes will be senior in right of payment to any future subordinated indebtedness of the Issuers. The Company may redeem the 2022 Notes at any time on or after April 1, 2017 and the 2023 Notes at any time on or after March 15, 2018 at a declining redemption price set forth in the respective indentures, plus accrued and unpaid interest. The indentures governing the 2022 Notes and 2023 Notes are substantially identical and contain covenants that, among other things, limit the ability of the Company to incur additional indebtedness or issue certain preferred stock, pay dividends on capital stock, transfer or sell assets, make investments, create certain liens, enter into agreements that restrict dividends or other payments from the Company’s restricted subsidiaries to the Company, consolidate, merge or transfer all of the Company’s assets, engage in transactions with affiliates or create unrestricted subsidiaries. If at any time when the 2022 Notes or 2023 Notes are rated investment grade and no default or event of default (as defined in the indenture) has occurred and is continuing, many of the foregoing covenants pertaining to the 2022 Notes or 2023 Notes, as applicable, will be suspended. If the ratings on the 2022 Notes or 2023 Notes, as applicable, were to decline subsequently to below investment grade, the suspended covenants would be reinstated. As of September 30, 2016, the Company was in compliance with the indentures governing the 2022 Notes and 2023 Notes. Other Long-Term Debt The Company entered into two credit agreements dated December 31, 2009, with Wells Fargo Bank N.A, the Senior Secured Revolving Credit Facility (the “Revolver”) and the Second Lien Term Loan (the “Term Loan”). On April 1, 2014, the Term Loan was repaid in full and terminated in connection with the issuance of the 2022 Notes. On November 6, 2014, the Company amended the Revolver to, among other things, extend the maturity date of the Revolver to November 6, 2019. The Company’s oil and gas properties are pledged as collateral to secure its obligations under the Revolver. The borrowing base on the Revolver was subsequently adjusted to $562.5 million in accordance with its terms as a result of the issuance of the 2023 Notes in February 2015 and was reaffirmed at this level effective April 1, 2015. Effective October 8, 2015, the borrowing base was reduced to $510.0 million during the semi-annual borrowing base re-determination. On August 1, 2016, the Company entered into an amendment to the Revolver to, among other things (i) require that the Company's deposit accounts and securities accounts (subject to certain exclusions) become subject to control agreements, (ii) restrict the Company from borrowing or receiving Letters of Credit under the Revolver if the Company has, or, after giving effect to such borrowing or issuance of Letter of Credit, will have, a Consolidated Cash Balance (as defined in the Revolver) in excess of $30.0 million (in each case giving effect to the anticipated use of proceeds thereof) and (iii) set the borrowing base under the Revolver at $425.0 million. The borrowing base was reaffirmed at this level during the semi-annual borrowing base re-determination effective October 24, 2016. The terms of the Revolver require the Company to make periodic payments of interest on the loans outstanding thereunder, with all outstanding principal and interest under the Revolver due on the maturity date. The Revolver is subject to a borrowing base, which limits the amount of borrowings which may be drawn thereunder. The borrowing base will be re-determined by the lenders at least semi-annually on or about April 1 and October 1 of each year, with such re-determination based primarily on reserve reports using lender commodity price expectations at such time. Any reduction in the borrowing base will reduce our liquidity, and, if the reduction results in the outstanding amount under our revolving credit facility exceeding the borrowing base, we will be required to repay the deficiency within a short period of time. Interest on the Revolver is calculated, at the Company’s option, at either (a) the London Interbank Offered (“LIBO”) rate for the applicable interest period plus a margin of 1.50% to 2.50% based on the level of borrowing base utilization at such time or (b) the greatest of the federal funds rate plus 0.50%, the one month adjusted LIBO rate plus 1.00%, or the prime rate announced by Wells Fargo Bank, N.A. in effect on such day, in each case plus a margin of 0.50% to 1.50% based on the level of borrowing base utilization at such time. For the three and nine months ended September 30, 2016, the average interest rates under the Revolver were 2.29% and 2.38%, respectively, on average outstanding balances of $184.5 million and $170.9 million, respectively. For the three and nine months ended September 30, 2015, the average interest rates under the Revolver were 2.31% and 2.40%, respectively, on average outstanding balances of $100.0 million and $156.7 million, respectively. Total interest and commitment fees under the Revolver were $1.3 million and $4.0 million for the three and nine months ended September 30, 2016, respectively, and $1.0 million and $4.0 million for the three and nine months ended September 30, 2015, respectively. Jones Energy, Inc. and its consolidated subsidiaries are subject to certain covenants under the Revolver, including the requirement to maintain the following financial ratios: · a total leverage ratio, consisting of consolidated debt to EBITDAX, of not greater than 4.00 to 1.00 as of the last day of any fiscal quarter; and · a current ratio, consisting of consolidated current assets, including the unused amounts of the total commitments, to consolidated current liabilities, of not less than 1.0 to 1.0 as of the last day of any fiscal quarter. As of September 30, 2016, our total leverage ratio is approximately 3.3x and our current ratio is approximately 4.1x, as calculated based on the requirements in our covenants. We are in compliance with all terms of our Revolver at September 30, 2016.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	6. Derivative Instruments and Hedging Activities The Company uses derivative instruments to mitigate volatility in commodity prices. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future revenues from favorable price changes. Depending on changes in oil and gas futures markets and management’s view of underlying supply and demand trends, we may increase or decrease our hedging positions. The following tables summarize our hedging positions as of September 30, 2016 and December 31, 2015: Hedging Positions September 30, 2016 Weighted Final Low High Average Expiration Oil swaps Exercise price $ $ $ June 2019 Offset exercise price $ $ Net barrels per month — Natural gas swaps Exercise price $ $ $ June 2019 Offset exercise price $ $ $ Net mmbtu per month — Basis swaps Contract differential $ $ $ December 2016 mmbtu per month Natural gas liquids swaps Exercise price $ $ $ December 2017 Barrels per month Oil collars Puts (floors) $ $ $ December 2019 Calls (ceilings) $ $ Net barrels per month December 31, 2015 Weighted Final Low High Average Expiration Oil swaps Exercise price $ $ $ June 2019 Barrels per month Natural gas swaps Exercise price $ $ $ June 2019 mmbtu per month Basis swaps Contract differential $ $ $ December 2016 mmbtu per month Natural gas liquids swaps Exercise price $ $ $ December 2017 Barrels per month The Company recognized net gains on derivative instruments of $4.0 million and net losses of $18.8 million for the three and nine months ended September 30, 2016, respectively. The Company recognized net gains on derivative instruments of $90.5 million and $111.7 million for the three and nine months ended September 30, 2015, respectively. The Company routinely enters into oil and natural gas swap contracts as seller, thus resulting in a fixed price. In early 2016, the Company realized certain mark-to-market gains associated with oil and natural gas hedges the Company had in place for years 2018 and 2019. The gains were effectively realized by purchasing, as opposed to selling, oil and natural gas swap contracts for the equal volume that was associated with the initial hedge transaction. Therefore, as prices fluctuate, the loss (or gain) on any single contract in 2018 and 2019 will be offset by an equal gain (or loss). This essentially leaves the underlying production open to fluctuations in market prices. Based on current contract terms, the gains will be recognized as the hedge contracts mature in 2018 and 2019. Information related to these purchased oil and natural gas swap contracts is presented in the table above as the “offset exercise price”, and the volumes in the table above are presented “net” of such purchased oil and natural gas swap contracts. Offsetting Assets and Liabilities As of September 30, 2016, the counterparties to our commodity derivative contracts consisted of six financial institutions. All of our counterparties or their affiliates are also lenders under the Revolver. We are not generally required to post additional collateral under our derivative agreements. Our derivative agreements contain set-off provisions that state that in the event of default or early termination, any obligation owed by the defaulting party may be offset against any obligation owed to the defaulting party. The following table presents information about our commodity derivative contracts that are netted on our Consolidated Balance Sheet as of September 30, 2016 and December 31, 2015: Net Amounts Gross of Assets / Gross Amounts Gross Amounts Amounts Liabilities Not of Recognized Offset in the Presented in Offset in the Assets / Balance the Balance Balance (in thousands of dollars) Liabilities Sheet Sheet Sheet Net Amount September 30, 2016 Commodity derivative contracts Assets $ $ $ $ — $ Liabilities — December 31, 2015 Commodity derivative contracts Assets $ $ $ $ — $ Liabilities —

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2016
Fair Value Measurement
Fair Value Measurement	7. Fair Value Measurement Fair Value of Financial Instruments The Company determines fair value amounts using available market information and appropriate valuation methodologies. Fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts. The Company enters into a variety of derivative financial instruments, which may include over-the-counter instruments, such as natural gas, crude oil, and natural gas liquid contracts. The Company utilizes valuation techniques that maximize the use of observable inputs, where available. If listed market prices or quotes are not published, fair value is determined based upon a market quote, adjusted by other market-based or independently sourced market data, such as trading volume, historical commodity volatility, and counterparty-specific considerations. These adjustments may include amounts to reflect counterparty credit quality, the time value of money, and the liquidity of the market. Counterparty credit valuation adjustments are necessary when the market price of an instrument is not indicative of the fair value as a result of the credit quality of the counterparty. Generally, market quotes assume that all counterparties have low default rates and equal credit quality. Therefore, an adjustment may be necessary to reflect the quality of a specific counterparty to determine the fair value of the instrument. The Company currently has all derivative positions placed and held by members of its lending group, which have high credit quality. Liquidity valuation adjustments are necessary when the Company is not able to observe a recent market price for financial instruments that trade in less active markets. Exchange traded contracts are valued at market value without making any additional valuation adjustments; therefore, no liquidity reserve is applied. Valuation Hierarchy Fair value measurements are grouped into a three-level valuation hierarchy. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the hierarchy is based upon the input that requires the highest degree of judgment in the determination of the instrument’s fair value. The three levels are defined as follows: Level 1 Pricing inputs are based on published prices in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, as of the reporting date. Contracts that are not traded on a recognized exchange or are tied to pricing transactions for which forward curve pricing is readily available are classified as Level 2 instruments. These include natural gas, crude oil and some natural gas liquids price swaps and natural gas basis swaps. Level 3 Pricing inputs include significant inputs that are generally unobservable from objective sources. The Company classifies natural gas liquid swaps and basis swaps for which future pricing is not readily available as Level 3. The Company obtains estimates from independent third parties for its open positions and subjects those to the credit adjustment criteria described above. The financial instruments carried at fair value as of September 30, 2016 and December 31, 2015, by consolidated balance sheet caption and by valuation hierarchy, as described above are as follows: (in thousands of dollars) September 30, 2016 Fair Value Measurements Using Commodity Price Hedges (Level 1) (Level 2) (Level 3) Total Current assets (1) $ — $ $ $ Long-term assets (1) — Current liabilities — Long-term liabilities — — (in thousands of dollars) December 31, 2015 Fair Value Measurements Using Commodity Price Hedges (Level 1) (Level 2) (Level 3) Total Current assets $ — $ $ $ Long-term assets — — Current liabilities — — Long-term liabilities — — — — (1) Level 3 current assets are negative as a result of the netting of our commodity derivative reflected on our Consolidated Balance Sheet as of September 30, 2016. Our agreements include set-off provisions, as noted in Note 6, “Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities”. The following table represents quantitative information about Level 3 inputs used in the fair value measurement of the Company’s commodity derivative contracts as of September 30, 2016: Quantitative Information About Level 3 Fair Value Measurements Fair Value Unobservable Commodity Price Hedges (000’s) Valuation Technique Input Range Natural gas liquid swaps $ Use a discounted cash flow approach using inputs including forward price statements from counterparties Natural gas liquid futures $8.90 - $25.20 per barrel Crude oil collars $ Use a discounted option model approach using inputs including interpolated volatilities for certain settlement months where market volatility quotes were unavailable for the option strike price Market volatility quotes at the option strike for certain settlement months in 2019 $45.00 - $61.00 per barrel Significant increases/decreases in natural gas liquid prices in isolation would result in a significantly lower/higher fair value measurement. The following table presents the changes in the Level 3 financial instruments for the nine months ended September 30, 2016. Changes in fair value of Level 3 instruments represent changes in gains and losses for the periods that are reported in other income (expense). New contracts entered into during the year are generally entered into at no cost with changes in fair value from the date of agreement representing the entire fair value of the instrument. Transfers between levels are evaluated at the end of the reporting period. (in thousands of dollars) Balance at December 31, 2015, net $ Purchases Settlements Transfers to Level 2 Transfers to Level 3 — Changes in fair value Balance at September 30, 2016, net $ Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated financial statements: September 30, 2016 December 31, 2015 Principal Principal (in thousands of dollars) Amount Fair Value Amount Fair Value Debt: Revolver $ $ $ $ 2022 Notes 2023 Notes The Revolver (as defined in Note 5) is categorized as Level 3 in the valuation hierarchy as the debt is not publicly traded and no observable market exists to determine the fair value; however, the carrying value of the Revolver approximates fair value, as it is subject to short-term floating interest rates that approximate the rates available to the Company for those periods. The fair value of the 2022 Notes (as defined in Note 5) is based on pricing that is readily available in the public market. Accordingly, the 2022 Notes are classified as Level 1 in the valuation hierarchy as the pricing is based on quoted market prices for the debt securities and is actively traded. The fair value of the 2023 Notes (as defined in Note 5) is based on indicative pricing that is available in the public market. Accordingly, the 2023 Notes are classified as Level 2 in the valuation hierarchy as the pricing is based on quoted market prices for the debt securities but is not actively traded. The Company reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset. Significant assumptions associated with the calculation of future cash flows used in the impairment analysis include the Company’s estimate of future commodity prices, production costs, development expenditures, production, risk-adjusted discount rates, and other relevant data. As such, the fair value of oil and gas properties used in estimating impairment represents a nonrecurring Level 3 measurement.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2016
Asset Retirement Obligations
Asset Retirement Obligations	8. Asset Retirement Obligations A summary of the Company’s Asset Retirement Obligations (“ARO”) for the nine months ended September 30, 2016 is as follows: (in thousands of dollars) Balance at December 31, 2015 $ Liabilities incurred (1) Accretion of ARO liability Liabilities settled due to sale of related properties Liabilities settled due to plugging and abandonment Change in estimate Total ARO balance at September 30, 2016 Less: Current portion of ARO Total long-term ARO at September 30, 2016 $ (1) Includes $6.4 million related to wells acquired in the Anadarko Acquisition. See Note 3, “Acquisitions”.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2016
Stock-based Compensation
Stock-based Compensation	9. Stock-based Compensation Management Unit Awards Effective January 1, 2010, JEH implemented a management incentive plan that provided indirect awards of membership interests in JEH to members of senior management (“Management Units”). These awards had various vesting schedules, and a portion of the Management Units vested in a lump sum at the IPO date. In connection with the IPO, both the vested and unvested Management Units were converted into the right to receive JEH Units and shares of Class B common stock. The JEH Units (together with a corresponding number of shares of Class B common stock) will become exchangeable under this plan into a like number of shares of Class A common stock upon vesting or forfeiture. No new Management Units have been awarded since the IPO and no new JEH Units or shares of Class B common stock are created upon a vesting event. Grants listed below reflect the transfer of JEH Units that occurred upon forfeiture. The following table summarizes information related to the vesting of Management Units as of September 30, 2016: Weighted Average Grant Date Fair Value JEH Units per Share Unvested at December 31, 2015 $ Granted Forfeited Vested Unvested at September 30, 2016 $ Stock compensation expense associated with the Management Units was $0.2 million and $1.0 million for the three and nine months ended September 30, 2016, respectively, and $0.3 million and $0.9 million for the three and nine months ended September 30, 2015, respectively, and is included in general and administrative expenses on the Company’s Consolidated Statement of Operations. 2013 Omnibus Incentive Plan Under the Amended and Restated Jones Energy, Inc. 2013 Omnibus Incentive Plan (the “LTIP”), established in conjunction with the Company’s IPO and amended on May 4, 2016 following approval by the Company’s stockholders, the Company has reserved a total of 7,350,000 shares of Class A common stock for non-employee director, consultant, and employee stock-based compensation awards. The Company granted (i) performance share unit and restricted stock unit awards to certain officers and employees and (ii) restricted shares of Class A common stock to the Company’s non-employee directors under the LTIP during 2014, 2015 and 2016. During 2016, the Company also granted performance unit awards to certain members of the senior management team under the LTIP. Restricted Stock Unit Awards The Company has outstanding restricted stock unit awards granted to certain officers and employees of the Company under the LTIP. The fair value of the restricted stock unit awards is based on the value of the Company’s Class A common stock on the date of grant and is expensed on a straight-line basis over the applicable vesting period, which is typically three years. The following table summarizes information related to the total number of units awarded to officers and employees as of September 30, 2016: Restricted Weighted Average Stock Unit Grant Date Fair Value Awards per Share Unvested at December 31, 2015 $ Granted Forfeited Vested Unvested at September 30, 2016 $ Stock compensation expense associated with the employee restricted stock unit awards was $1.0 million and $2.0 million for the three and nine months ended September 30, 2016, respectively, and $0.9 million and $2.1 million for the three and nine months ended September 30, 2015, respectively, and is included in general and administrative expenses on the Company’s Consolidated Statement of Operations. Performance Share Unit Awards The Company has outstanding performance share unit awards granted to certain members of the senior management team of the Company under the LTIP. Prior to the second quarter of 2016, the performance share unit awards were described in the Company’s filings as performance unit awards. During the second quarter of 2016, the Company created a new class of equity award, described below as a performance unit award, that is settled in cash rather than shares of the Company’s Class A common stock. As a result, references to performance unit awards in the Company’s filings prior to the second quarter of 2016 refer to this description of performance share unit awards. Upon the completion of the applicable three-year performance period, each recipient may vest in a number of performance share units. The percent of awarded performance share units in which each recipient vests at such time, if any, will range from 0% to 200% based on the Company’s total shareholder return relative to an industry peer group over the applicable three-year performance period. Each vested performance share unit is exchangeable for one share of the Company’s Class A common stock. The grant date fair value of the performance share units was determined using a Monte Carlo simulation model, which results in an estimated percentage of performance share units earned. The fair value of the performance share units is expensed on a straight-line basis over the applicable three-year performance period. The following assumptions were used for the Monte Carlo model to determine the grant date fair value and associated stock-based compensation expense of the performance share unit awards granted during the nine months ended September 30, 2016: Forecast period (years) Risk-free interest rate % Jones stock price volatility % For the performance share units granted during the nine months ended September 30, 2016, the Monte Carlo simulation model resulted in approximately 69% of performance share units expected to be earned. The following table summarizes information related to the total number of performance share units awarded to the senior management team as of September 30, 2016: Performance Weighted Average Share Unit Grant Date Fair Value Awards per Share Unvested at December 31, 2015 $ Granted Forfeited Vested — — Unvested at September 30, 2016 $ Stock compensation expense associated with the performance share unit awards was $0.8 million and $1.9 million for the three and nine months ended September 30, 2016, respectively, and $0.7 million and $1.7 million for the three and nine months ended September 30, 2015, respectively, and is included in general and administrative expenses on the Company’s Consolidated Statement of Operations. Performance Unit Awards The Company has outstanding performance unit awards, granted initially in 2016, to certain members of the senior management team of the Company under the LTIP. References to performance unit awards in prior filings do not correspond to these newly created performance unit awards. Upon the completion of the applicable three-year performance period, each recipient may vest in a number of performance units. The value of awarded performance units in which each recipient vests at such time, if any, will range from $0.0 to $200.0 per performance unit based on the Company’s total shareholder return relative to an industry peer group over the applicable three-year performance period. For accounting purposes, the performance units are treated as a liability award with the liability being re-measured at the end of each reporting period. Therefore, the expense associated with these awards is subject to volatility until the payout is finally determined at the end of the performance period. The value of the performance units was determined using a Monte Carlo simulation model, as of the grant date, which results in an estimated final value upon vesting of $1.3 million. The fair value measured as of September 30, 2016 was the same as the grant date value of $1.3 million. The following assumptions were used for the Monte Carlo model to determine the grant date fair value and associated stock-based compensation expense of the performance unit awards granted during the nine months ended September 30, 2016: Forecast period (years) Risk-free interest rate % Jones stock price volatility % For the performance units granted during the nine months ended September 30, 2016, the Monte Carlo simulation model resulted in a payout of $67.38 per performance unit was expected to be earned as of the grant date. Stock compensation expense associated with the performance unit awards was $0.1 million and $0.2 million for the three and nine months ended September 30, 2016, respectively, and is included in general and administrative expenses on the Company’s Consolidated Statement of Operations. As of September 30, 2016, $1.1 million of unrecognized compensation expense related to the performance unit awards, subject to re-measurement and adjustment for the change in estimated final value as of the end of each reporting period, is expected to be recognized over the remaining weighted-average service period of 2.25 years. Restricted Stock Awards The Company has outstanding restricted stock awards granted to the non-employee members of the Board of Directors of the Company under the LTIP. The restricted stock will vest upon the director serving as a director of the Company for a one-year service period in accordance with the terms of the award. The fair value of the awards was based on the price of the Company’s Class A common stock on the date of grant. The following table summarizes information related to the total value of the awards to the Board of Directors as of September 30, 2016: Weighted Average Restricted Grant Date Fair Value Stock Awards per Share Unvested at December 31, 2015 $ Granted Forfeited — — Vested Unvested at September 30, 2016 $ Stock compensation expense associated with awards to the members of the Board of Directors was $0.1 million and $0.4 million for the three and nine months ended September 30, 2016, respectively, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2015, respectively, and is included in general and administrative expenses on the Company’s Consolidated Statement of Operations.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes
Income Taxes	10. Income Taxes The Company records federal and state income tax liabilities associated with its status as a corporation. The Company recognizes a tax liability on its share of pre-tax book income, exclusive of the non-controlling interest. JEH is not subject to income tax at the federal level and only recognizes Texas franchise tax expense. The Company’s effective tax rate was 22.6% and 20.2% for the three and nine months ended September 30, 2016, respectively and 15.8% and 30.1% for the three and nine months ended September 30, 2015, respectively. The effective rate differs from the statutory rate of 35% due to net income allocated to the non-controlling interest, percentage depletion, state income taxes, and other permanent differences between book and tax accounting. The Company had an income tax benefit of $6.5 million and $8.2 million for the three and nine months ended September 30, 2016, respectively, and an expense of $6.5 million and a benefit of $4.6 million for the three and nine months ended September 30, 2015, respectively. The following table summarizes information related to the allocation of the income tax provision between the controlling and non-controlling interests: Three Months Ended September 30, Nine Months Ended September 30, (in thousands of dollars) 2016 2015 2016 2015 Jones Energy, Inc. $ $ $ $ Non-controlling interest Income tax provision (benefit) $ $ $ $ The Company had deferred tax assets for its federal and state net operating loss carry forwards at September 30, 2016 recorded in its deferred taxes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of September 30, 2016, we have a valuation allowance of $2.7 million as a result of management’s assessment of the realizability of deferred tax assets in Oklahoma. Management believes that there will be sufficient future taxable income based on the reversal of temporary differences to enable utilization of substantially all other tax carryforwards. Tax Receivable Agreement As of September 30, 2016 and December 31, 2015 the Company had recorded a Tax Receivable Agreement (“TRA”) liability of $43.2 million and $38.1 million net of valuation allowance, respectively, for the estimated payments that will be made to the pre-IPO members who have exchanged JEH Units (and shares of Class B common stock) for shares of Class A common stock. Such exchanges generated tax basis increases leading to deferred tax assets as of September 30, 2016 and December 31, 2015 of $50.6 million and $44.8 million, respectively, net of valuation allowance. The amount of the TRA liability was increased by $5.3 million and $5.5 million during the three and nine months ended September 30, 2016, respectively, as a result of exchanges that have occurred year to date. During the three and nine months ended September 30, 2016 the TRA liability increase has been offset by $0.1 and $0.3 million, respectively, as a result of the valuation allowance recorded against the Company’s deferred tax assets. Of the change, during the three and nine months ended September 30, 2016, $0.3 million and $0.4 million, respectively, has been included in other income (expense) on the Company’s Consolidated Statement of Operations with the remainder recorded against equity. To the extent the Company does not realize all of the tax benefits in future years or in the event of a change in future tax rates, this liability may change. As of September 30, 2016, the Company had not made any payments under the TRA to pre-IPO members who have exchanged JEH Units and Class B common stock for Class A common stock. Cash Tax Distributions The holders of JEH Units, including Jones Energy, Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of JEH. Under the terms of its operating agreement, JEH is generally required to make quarterly pro-rata cash tax distributions to its unitholders (including us) based on income allocated to its unitholders through the end of each relevant quarter, as adjusted to take into account good faith projections by the Company of taxable income or loss for the remainder of the calendar year, to the extent JEH has cash available for such distributions and subject to certain other restrictions. A Special Committee of the Board of Directors comprised solely of directors who do not have a direct or indirect interest in such distribution approved, and JEH made, aggregate cash tax distributions of $20.0 million to its unitholders towards its total 2016 projected tax distribution obligation. The distributions were made with respect to the first and second quarters of 2016, pro-rata to all members of JEH, and included a $9.9 million payment to the Company. The 2016 tax distributions are the result of taxable income generated by our operations and debt extinguishment.

Stockholders_ and Mezzanine equ

Stockholders’ and Mezzanine equity	9 Months Ended
	Sep. 30, 2016
Stockholders’ and Mezzanine equity
Stockholders’ and Mezzanine equity	11. Stockholders’ and Mezzanine equity Stockholders’ equity is comprised of two classes of common stock, Class A common stock and Class B common stock. The Class B common stock is held by the owners of JEH prior to the Company’s IPO and can be exchanged (together with a corresponding number of units representing membership interests in JEH Units) for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions. The Class B common stock has no economic rights but entitles its holders to one vote on all matters to be voted on by the Company’s stockholders generally. The Company has classified the Series A preferred stock as mezzanine equity based upon the terms and conditions that contain various redemption and conversion features. For a description of these features, please see below under “—Offering of 8.0% Series A Perpetual Convertible Preferred Stock.” Equity Distribution Agreement On May 24, 2016, the Company and Jones Energy Holdings, LLC entered into an Equity Distribution Agreement (“Equity Distribution Agreement”) with Citigroup Global Markets Inc. and Wells Fargo Securities, LLC (each, a “Manager” and collectively, the “Managers”). Pursuant to the terms of the Equity Distribution Agreement, the Company may sell from time to time through the Managers, as the Company’s sales agents, the Company’s Class A common stock having an aggregate offering price of up to $73.0 million (the “Class A Shares”). Under the terms of the Equity Distribution Agreement, the Company may also sell Class A Shares from time to time to any Manager as principal for its own account at a price to be agreed upon at the time of sale. Any sale of Class A Shares to a Manager as principal would be pursuant to the terms of a separate terms agreement between the Company and such Manager. Sales of the Class A Shares, if any, will be made by means of ordinary brokers’ transactions, to or through a market maker or directly on or through an electronic communication network, a “dark pool” or any similar market venue, or as otherwise agreed by the Company and one or more of the Managers. During the nine months ended September 30, 2016, the Company sold approximately 0.5 million Class A Shares under the Equity Distribution Agreement for net proceeds of approximately $1.8 million ($2.1 million gross proceeds, net of approximately $0.3 million in commissions and professional services expenses). The Company used the net proceeds for general corporate purposes. At September 30, 2016, approximately $70.9 million in aggregate offering proceeds remained available to be issued and sold under the Equity Distribution Agreement. Offering of Class A Common Stock On August 19, 2016, the Company and JEH LLC entered into an underwriting agreement (the “Common Stock Underwriting Agreement”) with Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, as representatives of the underwriters named therein (the “Common Stock Underwriters”), with respect to the offer and sale of 21,000,000 shares of the Company’s Class A common stock, par value $0.001 per share (the “Class A Common Stock”). The Common Stock Underwriting Agreement also provided the Common Stock Underwriters an option (the “Common Stock Option”) to purchase an additional 3,150,000 shares of Class A Common Stock (the “Additional Offering”) within 30 days of the date of the Common Stock Underwriting Agreement. On September 7, 2016, the Underwriters exercised the Common Stock Option in full. The total net proceeds from the offering of Class A Common Stock (after underwriters’ compensation, but before estimated expenses) pursuant to the Common Stock Underwriting Agreement, including the exercise of the Common Stock Option, was $64.0 million. The Class A Common Stock was issued pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-211568), which became effective July 26, 2016, and a prospectus, which consists of a base prospectus, dated as of July 26, 2016, and a prospectus supplement, dated August 19, 2016. The closing of the sale of Class A Common Stock occurred on August 26, 2016 and the Additional Offering closed on September 12, 2016. Offering of 8.0% Series A Perpetual Convertible Preferred Stock On August 19, 2016, the Company and JEH LLC entered into an underwriting agreement (the “Preferred Stock Underwriting Agreement”) with Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC (the “Preferred Stock Underwriters”) with respect to the offer and sale of 1,600,000 shares of the Series A preferred stock. The Preferred Stock Underwriting Agreement also provided the Preferred Stock Underwriters an option (the “Preferred Stock Option”) to purchase an additional 240,000 shares of Series A preferred stock, which was exercised in full. The total net proceeds from the offering of Series A preferred stock (after underwriters’ compensation, but before estimated expenses) pursuant to the Preferred Stock Underwriting Agreement, including the exercise of the Preferred Stock Option, was $88.3 million. The Series A preferred stock was issued pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-211568), which became effective July 26, 2016, and an additional registration statement with respect thereto on Form S-3 (Registration No. 333-213201) filed under Rule 462(b) of the Act, which became effective upon filing on August 19, 2016. The closing of the sale of Series A preferred stock occurred on August 26, 2016. Holders of Series A preferred stock are entitled to receive, when as and if declared by the Company’s Board of Directors, cumulative dividends at the rate of 8.0% per annum (the “dividend rate”) per share on the $50.00 liquidation preference per share of the Series A Preferred Stock, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on November 15, 2016. Dividends may be paid in cash or, subject to certain limitations, in Class A common stock, or a combination thereof. Under the terms of the Series A preferred stock, the Company’s ability to declare or pay dividends or make distributions on, or purchase, redeem or otherwise acquire for consideration, shares of the Company’s Class A common stock, or any junior stock or parity stock currently outstanding or issued in the future, will be subject to certain restrictions in the event that the Company does not pay in full or declare and set aside for payment in full all accrued and unpaid dividends on the Series A preferred stock (including certain unpaid excess cash payment amounts excused from payment as a dividend due to restrictions in credit facilities or other indebtedness or legal requirements (“Unpaid Excess Cash Payment Amounts”)). Each share of Series A preferred stock has a liquidation preference of $50.00 per share and is convertible, at the holder’s option at any time, initially into approximately 15.6961 shares of Class A common stock (which is equivalent to an initial conversion price of approximately $3.19 per share), subject to specified adjustments and limitations as set forth in the certificate of designations for the Series A preferred stock. Based on the initial conversion rate and the full exercise of the Preferred Stock Underwriters’ over-allotment option, approximately 28.9 million shares of Class A common stock would be issuable upon conversion of all the Series A preferred stock. On or after August 15, 2021, the Company may, at its option, give notice of its election to cause all outstanding shares of Series A preferred stock to be automatically converted into shares of Class A common stock at the conversion rate, if the closing sale price of the Class A common stock equals or exceeds 175% of the conversion price for at least 20 trading days in a period of 30 consecutive trading days. On August 15, 2024 (the “designated redemption date”), each holder of Series A preferred stock may require us to redeem any or all Series A preferred stock held by such holder outstanding on the designated redemption date at a redemption price equal to a liquidation preference of $50.00 per share plus all accrued dividends on the shares up to but excluding the designated redemption date that have not been paid plus any Unpaid Excess Cash Payment Amounts (the “redemption price”). At our option, the redemption price may be paid in cash or, subject to certain limitations, in Class A common stock, or a combination thereof. Except as required by law or the Company’s certificate of incorporation, which includes the certificate of designations for the Series A preferred stock, the holders of Series A preferred stock have no voting rights (other than with respect to certain matters regarding the Series A preferred stock or when dividends payable on the Series A preferred stock have not been paid for an aggregate of six quarterly dividend periods, or more, whether or not consecutive, as provided in the certificate of designations for the Series A preferred stock). The Series A preferred stock is classified as mezzanine equity on the Company’s Consolidated Balance Sheet. Mezzanine equity consisted of the following at September 30, 2016: (in thousands of dollars) September 30, 2016 Series A preferred stock, at issuance $ Dividends on preferred stock Accretion on preferred stock Mezzanine equity at September 30, 2016 $

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2016
Earnings per Share
Earnings per Share	12. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) attributable to controlling interests by the weighted average number of shares of Class A common stock outstanding during the period. Shares of Class B common stock are not included in the calculation of earnings per share because they are not participating securities and have no economic interest in the Company. Diluted earnings per share takes into account the potential dilutive effect of shares that could be issued by the Company in conjunction with the Series A preferred stock and from stock awards that have been granted to directors and employees. Awards of nonvested shares are considered outstanding as of the respective grant dates for purposes of computing diluted EPS even though the award is contingent upon vesting. For the three and nine months ending September 30, 2016, 1,274,611 restricted stock units, 1,035,205 performance share units, and 28,880,824 shares from the convertible Class A preferred stock, were excluded from the calculation as they would have had an anti-dilutive effect. The following is a calculation of the basic and diluted weighted-average number of shares of Class A Common Stock outstanding and EPS: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2016 2015 2016 2015 Income (numerator): Net income (loss) attributable to controlling interests $ $ $ $ Less: Dividends and accretion on preferred stock — — Net income (loss) attributable to common shareholder $ $ $ $ Weighted-average shares (denominator): Weighted-average number of shares of Class A common stock - basic Weighted-average number of shares of Class A common stock - diluted Earnings (loss) per share: Basic - Net income (loss) attributable to common shareholders $ $ $ $ Diluted - Net income (loss) attributable to common shareholders $ $ $ $ The sum of the quarterly earnings (loss) per share amounts differ from the total earnings (loss) per share for the nine months ended September 30, 2016 due to the change in weighted-average shares outstanding.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2016
Related Parties
Related Parties	13. Related Parties Related Party Transactions Transactions with Our Executive Officers, Directors and 5% Stockholders On May 7, 2013, the Company entered into a natural gas sale and purchase agreement with Monarch Natural Gas, LLC, (“Monarch”), under which Monarch has the first right to gather the natural gas the Company produces from dedicated properties, process the NGLs from this natural gas production and market the processed natural gas and extracted NGLs. Effective May 1, 2015, the rights to gather natural gas under the sale and purchase agreement transferred from Monarch to Enable Midstream Partners LP (“Enable”), an unaffiliated third party. Therefore, no related party revenue relating to natural gas and NGL production was recognized during 2016 associated with the aforementioned agreement. The initial term of the agreement, which remains unchanged by the transfer to Enable, runs for 10 years from the effective date of September 1, 2013. At the time the Company entered into the 2013 Monarch agreement, Metalmark Capital owned approximately 81% of the outstanding equity interests of Monarch. In addition, Metalmark Capital beneficially owns in excess of five percent of the Company’s outstanding equity interests and two of our directors, Howard I. Hoffen and Gregory D. Myers, are managing directors of Metalmark Capital. In connection with the Company’s entering into the 2013 Monarch agreement, Monarch issued to JEH equity interests in Monarch, having an estimated fair value of $15.0 million, in return for marketing services to be provided throughout the term of the agreement. The Company recorded this amount as deferred revenue which is being amortized on an estimated units-of-production basis commencing in September 2013, the first month of product sales to Monarch. The Company amortized $0.6 million and $1.8 million, respectively, of the deferred revenue balance during the three and nine months ended September 30, 2016 and $0.5 million and $1.5 million, respectively, during the three and nine months ended September 30, 2015. This revenue is included in other revenues on the Company’s Consolidated Statement of Operations. In September 2014, the Company signed a 10 year oil gathering and transportation agreement with Monarch Oil Pipeline LLC, pursuant to which Monarch Oil Pipeline LLC built, at its expense, a new oil gathering system and connected the gathering system to dedicated Company leases in Texas. At the time the Company entered into the agreement, Metalmark Capital owned the majority of the outstanding equity interests of Monarch Oil Pipeline LLC and/or its parent. The system began service during the fourth quarter of 2015 and provides connectivity to both a regional refinery market as well as the Cushing market hub. The Company incurred gathering fees, which were paid to Monarch Oil Pipeline LLC, of $0.7 million and $2.0 million for the three and nine months ended September 30, 2016, respectively, associated with the approximately 0.3 MMBoe and 1.0 MMBoe of oil production transported under the agreement. These costs are recorded as an offset to Oil and gas sales in the Company’s Consolidated Statement of Operations. The aforementioned production was recognized as Oil and gas sales on the Company’s Consolidated Statement of Operations at the time it was sold to the purchasers, who are unaffiliated third parties, after passing through the gathering and transportation system. Purchase of Senior Unsecured Notes On February 29, 2016, JEH and Jones Energy Finance Corp. purchased $50.0 million principal amount of their outstanding 2023 Notes from investment funds managed by Magnetar Capital and its affiliates, which investment funds collectively own more than 5% of a class of voting securities of the Company, for approximately $23.3 million excluding accrued interest and including any associated fees. On the same day, JEH and Jones Energy Finance Corp. purchased an additional $50.0 million principal amount of their outstanding 2023 Notes from investment funds managed by Blackstone Group Management L.L.C. and its affiliates, which investment funds collectively own more than 5% of a class of voting securities of the Company, for approximately $23.3 million excluding accrued interest and including any associated fees. In conjunction with the extinguishment of this $100.0 million principal amount of debt, JEH recognized cancellation of debt income of $48.3 million on a pre-tax basis. This income is recorded in Gain on debt extinguishment on the Company’s Consolidated Statement of Operations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. When applicable, we record accruals for contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. While the outcome of lawsuits and other proceedings against us cannot be predicted with certainty, in the opinion of management, individually or in the aggregate, no such lawsuits are expected to have a material effect on our financial position, results of operations, or liquidity. In an action filed on June 12, 2015 in the 31 st District Court of Hemphill County, Texas, Donna Kim Flowers and Mitchell Kirk Flowers v. Jones Energy, LLC f/k/a Jones Energy Limited, LLC f/k/a Jones Energy, Ltd. (Case No. 7225), the Company was sued by Donna Kim Flowers and Mitchell Kirk Flowers (the “plaintiffs”). The plaintiffs own surface rights to property located in Hemphill County, Texas. The mineral rights are leased to third parties, and the Company is the operator of the Oil and Gas Mineral Lease. On May 28, 2010, the plaintiffs and the Company entered into a Surface Use Agreement concerning the Company’s fracking operations on the property, which require the Company to minimize disruption and damage to the plaintiffs’ surface rights. The plaintiffs allege that the Company is in breach of such contract, and seek monetary damages. In June 2016, the Company presented a settlement offer to the plaintiffs. As a result of this settlement offer, the Company has accrued $1.5 million related to its estimated obligation under this settlement offer. This accrual was included in accrued liabilities on the Company’s Consolidated Balance Sheet as of September 30, 2016, and the charge was recorded as general and administrative expense on the Company’s Consolidated Statement of Operations for the nine months ended September 30, 2016. However, no certainty exists that a settlement will be reached or if so, the amount of any such settlement. Therefore, the ultimate loss could be greater or less than the amount accrued. In the event the plaintiffs and the Company are not able to reach a settlement, a court date has been set for May 30, 2017.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	15. Subsequent Events Preferred Stock Dividend Declared On October 18, 2016, the Company’s Board of Directors declared a prorated quarterly cash dividend per share equal to 8.0% based on the liquidation preference of $50.00 per share on an annualized basis, or approximately $0.8777778 per share, on the Company’s 8.0% Series A Perpetual Convertible Preferred Stock. This dividend is prorated for the period beginning on the issue date of August 26, 2016 through November 14, 2016 and will be payable in cash on November 15, 2016 to shareholders of record as of November 1, 2016. Borrowing Base Redetermination Availability under the Revolver is subject to a borrowing base. The borrowing base is re-determined at least semi-annually on or about April 1 and October 1 of each year, with such re-determination based primarily on reserve reports using lender commodity price expectations at such time. Our borrowing base at September 30, 2016 was $425.0 million. The borrowing base was reaffirmed at this level during the semi-annual borrowing base re-determination effective October 24, 2016.

Subsidiary Guarantors

Subsidiary Guarantors	9 Months Ended
	Sep. 30, 2016
Subsidiary Guarantors
Subsidiary Guarantors	16. Subsidiary Guarantors On April 1, 2014, the Issuers sold $500.0 million in aggregate principal amount of the 2022 Notes. On February 23, 2015, the Issuers sold $250.0 million in aggregate principal amount of the 2023 Notes. The 2022 Notes and the 2023 Notes are guaranteed on a senior unsecured basis by the Company and by all of JEH’s current subsidiaries (except Jones Energy Finance Corp., two immaterial subsidiaries and the new subsidiary formed to acquire the properties in the Merge Acquisition, which is required to become a guarantor no later than January 31, 2017) and certain future subsidiaries, including any future subsidiaries that guarantee any indebtedness under the Revolver. Each subsidiary guarantor is 100% owned by JEH, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing our 2022 Notes and 2023 Notes, as discussed below, and joint and several with all other subsidiary guarantees and the parent guarantee. Any subsidiaries of JEH other than the subsidiary guarantors and Jones Energy Finance Corp. are immaterial. Guarantees of the 2022 Notes and 2023 Notes will be released under certain circumstances, including (i) in connection with any sale or other disposition of (a) all or substantially all of the properties or assets of a guarantor (including by way of merger or consolidation) or (b) all of the capital stock of such guarantor, in each case, to a person that is not the Company or a restricted subsidiary of the Company, (ii) if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary, (iii) upon legal defeasance, covenant defeasance or satisfaction and discharge of the applicable indenture, or (iv) at such time as such guarantor ceases to guarantee any other indebtedness of the Company or any other guarantor. The Company is a holding company whose sole material asset is an equity interest in JEH. The Company is the sole managing member of JEH and is responsible for all operational, management and administrative decisions related to JEH’s business. In accordance with JEH’s limited liability company agreement, the Company may not be removed as the sole managing member of JEH. As of September 30, 2016, the Company held 56,969,222 JEH Units and all of the preferred units representing membership interests in JEH, and the remaining 29,872,426 JEH Units are held by a group of investors that owned interests in JEH prior to the Company’s IPO (the “Pre-IPO Owners”). The Pre-IPO Owners have no voting rights with respect to their economic interest in JEH. The Company has two classes of common stock, Class A common stock, which was sold to investors in the IPO, and Class B common stock, and one series of preferred stock, Series A preferred stock. Pursuant to the Company’s certificate of incorporation, each share of Class A common stock is entitled to one vote per share, and the shares of Class A common stock are entitled to 100% of the economic interests in the Company. Each share of Class B common stock has no economic rights in the Company, but entitles its holder to one vote on all matters to be voted on by the Company’s stockholders generally. Except as required by law or the Company’s certificate of incorporation, which includes the certificate of designations for the Series A preferred stock, the holders of Series A preferred stock have no voting rights (other than with respect to certain matters regarding the Series A preferred stock or when dividends payable on the Series A preferred stock have not been paid for an aggregate of six quarterly dividend periods, or more, whether or not consecutive, as provided in the certificate of designations for the Series A preferred stock). In connection with a reorganization that occurred immediately prior to the IPO, each Existing Owner was issued a number of shares of Class B common stock that was equal to the number of JEH Units that such Existing Owner held. Holders of the Company’s Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval. Accordingly, the Pre-IPO Owners collectively have a number of votes in the Company equal to the aggregate number of JEH Units that they hold. The Pre-IPO Owners have the right, pursuant to the terms of an exchange agreement by and among the Company, JEH and each of the Pre-IPO Owners (the “Exchange Agreement”), to exchange their JEH Units (together with a corresponding number of shares of Class B common stock) for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions. As a result, the Company expects that over time the Company will have an increasing economic interest in JEH as Class B common stock and JEH Units are exchanged for Class A common stock. Moreover, any transfers of JEH Units outside of the Exchange Agreement (other than permitted transfers to affiliates) must be approved by the Company. The Company intends to retain full voting and management control over JEH. Jones Energy, Inc. Condensed Consolidating Balance Sheet September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — — Total current assets Oil and gas properties, net, at cost under the successful efforts method — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — — Total assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Current liabilities Trade accounts payable $ $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — — Total current liabilities Long-term debt — — — — Deferred revenue — — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Other liabilities — — — Deferred tax liabilities — — — Total liabilities Mezzanine equity Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at September 30, 2016 — — — — Stockholders’/ members' equity Members' equity — — Class A common stock, $0.001 par value; 56,991,824 shares issued and 56,969,222 shares outstanding at September 30, 2016 — — — — Class B common stock, $0.001 par value; 29,872,426 shares issued and outstanding at September 30, 2016 — — — — Treasury stock, at cost: 22,602 shares at September 30, 2016 — — — — Additional paid-in-capital — — — — Retained earnings (deficit) — — — — Stockholders' equity Non-controlling interest — — — — Total stockholders’ equity Total liabilities and stockholders’ equity $ $ $ $ $ $ Jones Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — — Total current assets Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — — Total assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — — Total current liabilities — Long-term debt — — — — Deferred revenue — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Other liabilities — — — — Deferred tax liabilities — — — Total liabilities Stockholders’/ members' equity Members' equity — — Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding at December 31, 2015 — — — — Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding at December 31, 2015 — — — — Treasury stock, at cost: 22,602 shares at December 31, 2015 — — — — Additional paid-in-capital — — — — Retained earnings (deficit) — — — — Stockholders' equity Non-controlling interest — — — — Total stockholders’ equity Total liabilities and stockholders’ equity $ $ $ $ $ $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — Other income (expense), net — — Income (loss) before income tax — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Dividends and accretion on preferred stock — — — — Net income (loss) attributable to common shareholders $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Gain on debt extinguishment — — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — Other income (expense), net — — Income (loss) before income tax — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Dividends and accretion on preferred stock — — — — Net income (loss) attributable to common shareholders $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — — Other income (expense), net — — — Income (loss) before income tax — — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — — Other income (expense), net — — — Income (loss) before income tax — — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities Net cash (used in) / provided by operations — Cash flows from investing activities Additions to oil and gas properties — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — — — Current period settlements of matured derivative contracts — — — — Net cash (used in) / provided by investing — — Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — — — — Purchase of senior notes — — — — Net distributions paid to JEH unitholders — — — Proceeds from sale of common stock — — — — Proceeds from sale of preferred stock — — — — Net cash (used in) / provided by financing — — — Net increase (decrease) in cash — — Cash Beginning of period — End of period $ $ $ $ $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities Net cash (used in) / provided by operations — — Cash flows from investing activities Additions to oil and gas properties — — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — — — Current period settlements of matured derivative contracts — — — Net cash (used in) / provided by investing — — — Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — — — — Proceeds from senior notes — — — — Payment of debt issuance costs — — — — Proceeds from sale of common stock, net of expense — — — — Net cash (used in) / provided by financing — — — Net increase (decrease) in cash — — — Cash — Beginning of period — End of period $ $ $ $ $ — $

Significant Accounting Polici23

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s financial position as of December 31, 2015 and the financial statements reported for September 30, 2016 and 2015 and the three and nine month periods then ended include the Company and all of its subsidiaries. Certain prior period amounts have been reclassified to conform to the current presentation. The accompanying unaudited condensed consolidated financial statements for the periods ending September 30, 2016 and 2015 have been prepared in accordance with GAAP accounting principles for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report. The Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. It is recommended that these unaudited condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements included in Jones Energy, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015.
Use of Estimates	Use of Estimates There have been no significant changes in our use of estimates since those reported in Jones Energy, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted in the current year-to-date period: In January 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, “Income Statement—Extraordinary and Unusual Items.” This ASU removes the concept of extraordinary items from GAAP. Under existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of an unusual nature and occurs infrequently. This separate, net of tax presentation will no longer be allowed. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Therefore, the Company adopted ASU No. 2015-01 beginning in the period ended March 31, 2016. Adoption did not have a material impact on the financial position, cash flows or results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest” (Subtopic 835-30): “Simplifying the Presentation of Debt Issuance Costs.” Entities that have historically presented debt issuance costs as an asset, related to a recognized debt liability, will be required to present those costs as a direct deduction from the carrying amount of that debt liability. The ASU does not change the recognition, measurement, or subsequent measurement guidance for debt issuance costs. Adoption of this ASU will be applied retrospectively. In August 2015, the FASB issued ASU No. 2015-15, “Interest—Imputation of Interest” (Subtopic 835-30), which addresses the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Therefore, the Company adopted ASU No. 2015-03 beginning with the period ended March 31, 2016. Changes to the balance sheet have been applied on a retrospective basis. This resulted in the reclassification of debt issuance costs of $10.3 million from Other assets to Long-term debt in the Consolidated Balance Sheet for the period ended December 31, 2015. Adoption did not have a material impact on the financial position, cash flows or results of operations. To be adopted in a future period: In May 2014, the FASB issued ASU No. 2014‑09, “Revenue from Contracts with Customers,” which creates a new topic in the Accounting Standards Codification (“ASC”), topic 606, “Revenue from Contracts with Customers.” This ASU sets forth a five‑step model for determining when and how revenue is recognized. Under the model, an entity will be required to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Additional disclosures will be required to describe the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015‑14, which deferred the effective date of ASU 2014‑09 by one year. The amendments are now effective for interim and annual reporting periods beginning after December 15, 2017 and may be applied on either a full or modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of Update 2014‑09 and Update 2015‑14 will have on our financial statements. In February 2016, the FASB issued ASU 2016‑02, “Leases” (Topic 842). This amendment requires, among other things, that lessees recognize the following for all leases (with the exception of short‑term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right‑of‑use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impacts of the amendments to our financial statements and accounting practices for leases. In March 2016, the FASB issued ASU 2016‑09, “Compensation—Stock Compensation” (Topic 718). This amendment is intended to simplify the accounting for share-based payment awards to employees, specifically in regard to (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. The amendments are effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of ASU 2016-09 will have on our financial statements.

Properties, Plant and Equipme24

Properties, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Properties, Plant and Equipment
Schedule of oil and gas properties	September 30, December 31, (in thousands of dollars) 2016 2015 Mineral interests in properties Unproved $ $ Proved Wells and equipment and related facilities Less: Accumulated depletion and impairment Net oil and gas properties $ $
Schedule of other property, plant and equipment	September 30, December 31, (in thousands of dollars) 2016 2015 Leasehold improvements $ $ Furniture, fixtures, computers and software Vehicles Aircraft Other Less: Accumulated depreciation and amortization Net other property, plant and equipment $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Long-Term Debt
Summary of long-term debt	(in thousands of dollars) September 30, 2016 December 31, 2015 Revolver $ $ 2022 Notes 2023 Notes Total principal amount Less: unamortized discount Less: debt issuance costs, net Total carrying amount $ $

Derivative Instruments and He26

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities
Schedule of various commodity derivatives in place to offset uncertain price fluctuations that could affect the entity's future operations	September 30, 2016 Weighted Final Low High Average Expiration Oil swaps Exercise price $ $ $ June 2019 Offset exercise price $ $ Net barrels per month — Natural gas swaps Exercise price $ $ $ June 2019 Offset exercise price $ $ $ Net mmbtu per month — Basis swaps Contract differential $ $ $ December 2016 mmbtu per month Natural gas liquids swaps Exercise price $ $ $ December 2017 Barrels per month Oil collars Puts (floors) $ $ $ December 2019 Calls (ceilings) $ $ Net barrels per month December 31, 2015 Weighted Final Low High Average Expiration Oil swaps Exercise price $ $ $ June 2019 Barrels per month Natural gas swaps Exercise price $ $ $ June 2019 mmbtu per month Basis swaps Contract differential $ $ $ December 2016 mmbtu per month Natural gas liquids swaps Exercise price $ $ $ December 2017 Barrels per month
Schedule of commodity derivative contracts that are netted on Consolidated Balance Sheet	Net Amounts Gross of Assets / Gross Amounts Gross Amounts Amounts Liabilities Not of Recognized Offset in the Presented in Offset in the Assets / Balance the Balance Balance (in thousands of dollars) Liabilities Sheet Sheet Sheet Net Amount September 30, 2016 Commodity derivative contracts Assets $ $ $ $ — $ Liabilities — December 31, 2015 Commodity derivative contracts Assets $ $ $ $ — $ Liabilities —

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurement
Schedule of financial instruments carried at fair value	(in thousands of dollars) September 30, 2016 Fair Value Measurements Using Commodity Price Hedges (Level 1) (Level 2) (Level 3) Total Current assets (1) $ — $ $ $ Long-term assets (1) — Current liabilities — Long-term liabilities — — (in thousands of dollars) December 31, 2015 Fair Value Measurements Using Commodity Price Hedges (Level 1) (Level 2) (Level 3) Total Current assets $ — $ $ $ Long-term assets — — Current liabilities — — Long-term liabilities — — — — (1) Level 3 current assets are negative as a result of the netting of our commodity derivative reflected on our Consolidated Balance Sheet as of September 30, 2016. Our agreements include set-off provisions, as noted in Note 6, “Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities”.
Schedule of quantitative information about Level 3 inputs used in the fair value measurement, assets	Quantitative Information About Level 3 Fair Value Measurements Fair Value Unobservable Commodity Price Hedges (000’s) Valuation Technique Input Range Natural gas liquid swaps $ Use a discounted cash flow approach using inputs including forward price statements from counterparties Natural gas liquid futures $8.90 - $25.20 per barrel Crude oil collars $ Use a discounted option model approach using inputs including interpolated volatilities for certain settlement months where market volatility quotes were unavailable for the option strike price Market volatility quotes at the option strike for certain settlement months in 2019 $45.00 - $61.00 per barrel
Schedule of changes in fair value of Level 3 financial instruments	(in thousands of dollars) Balance at December 31, 2015, net $ Purchases Settlements Transfers to Level 2 Transfers to Level 3 — Changes in fair value Balance at September 30, 2016, net $
Schedule of fair value of financial instruments that are not recorded at fair value in the consolidated financial statements	September 30, 2016 December 31, 2015 Principal Principal (in thousands of dollars) Amount Fair Value Amount Fair Value Debt: Revolver $ $ $ $ 2022 Notes 2023 Notes

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2016
Asset Retirement Obligations
Summary of the Company's ARO	(in thousands of dollars) Balance at December 31, 2015 $ Liabilities incurred (1) Accretion of ARO liability Liabilities settled due to sale of related properties Liabilities settled due to plugging and abandonment Change in estimate Total ARO balance at September 30, 2016 Less: Current portion of ARO Total long-term ARO at September 30, 2016 $ (1) Includes $6.4 million related to wells acquired in the Anadarko Acquisition. See Note 3, “Acquisitions”.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Management Unit Awards
Stock-based Compensation
Summary of information related to the units/shares or awards	Weighted Average Grant Date Fair Value JEH Units per Share Unvested at December 31, 2015 $ Granted Forfeited Vested Unvested at September 30, 2016 $
Restricted Stock Unit Awards
Stock-based Compensation
Summary of information related to the units/shares or awards	Restricted Weighted Average Stock Unit Grant Date Fair Value Awards per Share Unvested at December 31, 2015 $ Granted Forfeited Vested Unvested at September 30, 2016 $
Performance Share Unit Awards
Stock-based Compensation
Schedule of assumptions used for the Monte Carlo simulation model to determine the grant date fair value and associated compensation expense	Forecast period (years) Risk-free interest rate % Jones stock price volatility %
Summary of information related to the units/shares or awards	Performance Weighted Average Share Unit Grant Date Fair Value Awards per Share Unvested at December 31, 2015 $ Granted Forfeited Vested — — Unvested at September 30, 2016 $
Performance Unit Awards
Stock-based Compensation
Schedule of assumptions used for the Monte Carlo simulation model to determine the grant date fair value and associated compensation expense	Forecast period (years) Risk-free interest rate % Jones stock price volatility %
Restricted Stock Awards
Stock-based Compensation
Summary of information related to the units/shares or awards	Weighted Average Restricted Grant Date Fair Value Stock Awards per Share Unvested at December 31, 2015 $ Granted Forfeited — — Vested Unvested at September 30, 2016 $

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Taxes
Schedule of allocation of the income tax provision between the controlling and non-controlling interests	Three Months Ended September 30, Nine Months Ended September 30, (in thousands of dollars) 2016 2015 2016 2015 Jones Energy, Inc. $ $ $ $ Non-controlling interest Income tax provision (benefit) $ $ $ $

Stockholder's and Mezzanine equ

Stockholder's and Mezzanine equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders’ and Mezzanine equity
Schedule of mezzanine equity	(in thousands of dollars) September 30, 2016 Series A preferred stock, at issuance $ Dividends on preferred stock Accretion on preferred stock Mezzanine equity at September 30, 2016 $

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings per Share
Schedule of calculation of the basic and diluted weighted-average shares and EPS	Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2016 2015 2016 2015 Income (numerator): Net income (loss) attributable to controlling interests $ $ $ $ Less: Dividends and accretion on preferred stock — — Net income (loss) attributable to common shareholder $ $ $ $ Weighted-average shares (denominator): Weighted-average number of shares of Class A common stock - basic Weighted-average number of shares of Class A common stock - diluted Earnings (loss) per share: Basic - Net income (loss) attributable to common shareholders $ $ $ $ Diluted - Net income (loss) attributable to common shareholders $ $ $ $

Subsidiary Guarantors (Tables)

Subsidiary Guarantors (Tables)	9 Months Ended
	Sep. 30, 2016
Subsidiary Guarantors
Condensed Consolidating Balance Sheet	Jones Energy, Inc. Condensed Consolidating Balance Sheet September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — — Total current assets Oil and gas properties, net, at cost under the successful efforts method — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — — Total assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Current liabilities Trade accounts payable $ $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — — Total current liabilities Long-term debt — — — — Deferred revenue — — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Other liabilities — — — Deferred tax liabilities — — — Total liabilities Mezzanine equity Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at September 30, 2016 — — — — Stockholders’/ members' equity Members' equity — — Class A common stock, $0.001 par value; 56,991,824 shares issued and 56,969,222 shares outstanding at September 30, 2016 — — — — Class B common stock, $0.001 par value; 29,872,426 shares issued and outstanding at September 30, 2016 — — — — Treasury stock, at cost: 22,602 shares at September 30, 2016 — — — — Additional paid-in-capital — — — — Retained earnings (deficit) — — — — Stockholders' equity Non-controlling interest — — — — Total stockholders’ equity Total liabilities and stockholders’ equity $ $ $ $ $ $ Jones Energy, Inc. Condensed Consolidating Balance Sheet December 31, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets Cash $ $ $ $ $ — $ Accounts receivable, net Oil and gas sales — — — — Joint interest owners — — — — Other — — — Commodity derivative assets — — — — Other current assets — — — Intercompany receivable — — — Total current assets Oil and gas properties, net, at cost under the successful efforts method — — — — Other property, plant and equipment, net — — — Commodity derivative assets — — — — Other assets — — — Investment in subsidiaries — — — — Total assets $ $ $ $ $ $ Liabilities and Stockholders’ Equity Current liabilities Trade accounts payable $ — $ $ $ — $ — $ Oil and gas sales payable — — — — Accrued liabilities — — — Commodity derivative liabilities — — — — Asset retirement obligations — — — — Intercompany payable — — — Total current liabilities — Long-term debt — — — — Deferred revenue — — — — Asset retirement obligations — — — — Liability under tax receivable agreement — — — — Other liabilities — — — — Deferred tax liabilities — — — Total liabilities Stockholders’/ members' equity Members' equity — — Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding at December 31, 2015 — — — — Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding at December 31, 2015 — — — — Treasury stock, at cost: 22,602 shares at December 31, 2015 — — — — Additional paid-in-capital — — — — Retained earnings (deficit) — — — — Stockholders' equity Non-controlling interest — — — — Total stockholders’ equity Total liabilities and stockholders’ equity $ $ $ $ $ $
Condensed Consolidating Statement of Operations	Jones Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — Other income (expense), net — — Income (loss) before income tax — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Dividends and accretion on preferred stock — — — — Net income (loss) attributable to common shareholders $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Gain on debt extinguishment — — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — Other income (expense), net — — Income (loss) before income tax — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Dividends and accretion on preferred stock — — — — Net income (loss) attributable to common shareholders $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Three Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — — Other income (expense), net — — — Income (loss) before income tax — — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Operating revenues Oil and gas sales $ — $ — $ $ — $ — $ Other revenues — — — Total operating revenues — — — Operating costs and expenses Lease operating — — — — Production and ad valorem taxes — — — — Exploration — — — — Depletion, depreciation and amortization — — — Accretion of ARO liability — — — — General and administrative — — Other operating — — — — Total operating expenses — — Operating income (loss) — — Other income (expense) Interest expense — — — Net gain (loss) on commodity derivatives — — — — Other income (expense) — — — Other income (expense), net — — — Income (loss) before income tax — — Equity interest in income — — — — Income tax provision (benefit) — — — Net income (loss) Net income (loss) attributable to non-controlling interests — — — — Net income (loss) attributable to controlling interests $ $ — $ — $ — $ — $
Condensed Consolidating Statement of Cash Flows	Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities Net cash (used in) / provided by operations — Cash flows from investing activities Additions to oil and gas properties — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — — — Current period settlements of matured derivative contracts — — — — Net cash (used in) / provided by investing — — Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — — — — Purchase of senior notes — — — — Net distributions paid to JEH unitholders — — — Proceeds from sale of common stock — — — — Proceeds from sale of preferred stock — — — — Net cash (used in) / provided by financing — — — Net increase (decrease) in cash — — Cash Beginning of period — End of period $ $ $ $ $ — $ Jones Energy, Inc. Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Guarantor Non-Guarantor (in thousands of dollars) JEI (Parent) Issuers Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities Net income (loss) $ $ $ $ $ $ Adjustments to reconcile net income (loss) to net cash provided by operating activities Net cash (used in) / provided by operations — — Cash flows from investing activities Additions to oil and gas properties — — — — Proceeds from sales of assets — — — — Acquisition of other property, plant and equipment — — — — Current period settlements of matured derivative contracts — — — Net cash (used in) / provided by investing — — — Cash flows from financing activities Proceeds from issuance of long-term debt — — — — Repayment under long-term debt — — — — Proceeds from senior notes — — — — Payment of debt issuance costs — — — — Proceeds from sale of common stock, net of expense — — — — Net cash (used in) / provided by financing — — — Net increase (decrease) in cash — — — Cash — Beginning of period — End of period $ $ $ $ $ — $

Organization and Description 34

Organization and Description of Business (Details) $ / shares in Units, $ in Thousands	Aug. 25, 2016USD ($)$ / sharesshares	Sep. 30, 2016class$ / sharesshares	Dec. 31, 2015$ / shares
Organization
Number of classes of common stock | class		2
Series A preferred stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
Minimum
Organization
Number of series of preferred stock authorized		1
Class B common stock
Organization
Economic interests/rights (as a percent)		0.00%
Votes per share entitled to holders		1
Series A preferred stock
Organization
Shares issued (in shares)	1.84
Dividend rate (as a percent)	8.00%
Series A preferred stock, par value (in dollars per share) | $ / shares	$ 0.001
Preferred stock, share price (in dollars per share) | $ / shares	$ 50
Gross proceeds form sale of preferred stock | $	$ 92,000
Underwriting discounts and commissions | $	$ 3,680
Pre-IPO Owners
Organization
Ratio in which JEH Units and Class B common stock are exchanged for Class A common stock		1
JEH | Jones Energy, Inc.
Organization
Number of units held		56,969,222
JEH | Pre-IPO Owners
Organization
Number of units held		29,872,426

Significant Accounting Polici35

Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Recent Accounting Pronouncements
Other assets	$ 6,406	$ 8,039
Long-term debt	$ 688,432	837,654
Adjustment | Accounting Standards Update 2015-03
Recent Accounting Pronouncements
Other assets		(10,300)
Long-term debt		$ (10,300)

Acquisitions - Merge Acquisitio

Acquisitions - Merge Acquisition (Details) - Merge Acquisition $ in Millions	Sep. 22, 2016USD ($)a
Acquisitions
Number of net acres | a	18,000
Purchase consideration | $	$ 136.5

Acquisitions and Divestitures -

Acquisitions and Divestitures - Andarko Acquisition (Details) - Anadarko Acquisition $ in Millions	Aug. 25, 2016USD ($)abbl / ditem
Acquisitions
Purchase consideration	$ 27.1
Number of wells | item	174
Wells operated by entity (as a percent)	59.00%
Number of net acres | a	25,000
Production per day (in barrels per day) | bbl / d	900
Purchase price	$ 27.1

Properties, Plant and Equipme38

Properties, Plant and Equipment - Oil and Gas Properties - Tabular Information (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Mineral interests in properties
Unproved	$ 205,589	$ 75,308
Proved	1,060,465	1,031,669
Wells and equipment and related facilities	1,353,160	1,289,323
Gross oil and gas properties	2,619,214	2,396,300
Less: Accumulated depletion and impairment	(877,049)	(760,534)
Net oil and gas properties	$ 1,742,165	$ 1,635,766

Properties, Plant and Equipme39

Properties, Plant and Equipment - Oil and Gas Properties - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)project	Sep. 30, 2015USD ($)project
Oil and Gas Properties
Number of exploratory wells for which costs were capitalized | project			1	0
Costs capitalized in connection with exploratory wells	$ 1,200	$ 0	$ 1,200	$ 0
Exploration expense on exploratory wells			0	0
Amount of capitalized interest on expenditures			0
Depletion of oil and gas properties	36,300	$ 52,500	$ 115,600	$ 155,300
Impairments of proved or unproved oil and gas properties	$ 0

Properties, Plant and Equipme40

Properties, Plant and Equipment - Other Property, Plant and Equipment - Tabular Information (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Property, Plant and Equipment
Gross other property, plant and equipment	$ 8,137	$ 8,044
Less: Accumulated depreciation and amortization	(4,951)	(4,171)
Net other property, plant and equipment	3,186	3,873
Leasehold improvements
Other Property, Plant and Equipment
Gross other property, plant and equipment	1,213	1,260
Furniture, fixtures, computers and software
Other Property, Plant and Equipment
Gross other property, plant and equipment	4,124	4,090
Vehicles
Other Property, Plant and Equipment
Gross other property, plant and equipment	1,606	1,537
Aircraft
Other Property, Plant and Equipment
Gross other property, plant and equipment	910	910
Other
Other Property, Plant and Equipment
Gross other property, plant and equipment	$ 284	$ 247

Properties, Plant and Equipme41

Properties, Plant and Equipment - Other Property, Plant and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Properties, Plant and Equipment
Depreciation and amortization of other property, plant and equipment	$ 0.3	$ 0.3	$ 0.9	$ 0.9

Long-Term Debt - Tabular Disclo

Long-Term Debt - Tabular Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Long-Term Debt
Total principal amount	$ 702,148	$ 860,000
Less: unamortized discount	(6,494)	(12,088)
Less: debt issuance costs, net	(7,222)	(10,258)
Total carrying amount	688,432	837,654
2022 Notes | Senior notes
Long-Term Debt
Total principal amount	409,148	500,000
2023 Notes | Senior notes
Long-Term Debt
Total principal amount	150,000	250,000
Revolving credit facility | Wells Fargo Bank N.A. | Revolver | Line of credit
Long-Term Debt
Total principal amount	$ 143,000	$ 110,000

Long-Term Debt - Senior Unsecur

Long-Term Debt - Senior Unsecured Notes (Details) - USD ($) $ in Thousands	Feb. 29, 2016	Feb. 23, 2015	Apr. 01, 2014	Sep. 30, 2016	Sep. 30, 2015
Senior Unsecured Notes
Notes proceeds from issuance					$ 236,475
Repayment under long-term debt				$ 42,000	$ 335,000
Gain on debt extinguishment				99,530
Senior notes
Senior Unsecured Notes
Aggregate principal amount repurchased				190,900
Gain on debt extinguishment				99,500
2022 Notes | Senior notes
Senior Unsecured Notes
Aggregate principal amount			$ 500,000
Stated interest rate (as a percent)			6.75%
Aggregate principal amount repurchased				90,900
Purchased amount				38,100
Aggregate principle amount repurchased and available for reissuance				20,300
2023 Notes | Senior notes
Senior Unsecured Notes
Aggregate principal amount		$ 250,000
Stated interest rate (as a percent)		9.25%
Discount of principal amount (as a percent)		94.59%
Notes proceeds from issuance		$ 236,500
Wells Fargo Bank N.A. | Revolving credit facility | Revolver | Line of credit
Senior Unsecured Notes
Repayment under long-term debt			$ 308,000
Wells Fargo Bank N.A. | Term loan | Term Loan | Line of credit
Senior Unsecured Notes
Repayment under long-term debt			$ 160,000
Beneficial owner | 2023 Notes | Senior notes
Senior Unsecured Notes
Aggregate principal amount repurchased	$ 100,000			100,000
Purchased amount				$ 46,500
Gain on debt extinguishment	$ 48,300

Long-Term Debt - Other Long-Ter

Long-Term Debt - Other Long-Term Debt (Details) - Wells Fargo Bank N.A. - Line of credit $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Aug. 01, 2016USD ($)	Oct. 08, 2015USD ($)	Feb. 23, 2015USD ($)	Dec. 31, 2009agreement
Other Long-Term Debt
Number of credit agreements | agreement								2
Revolving credit facility | Revolver
Other Long-Term Debt
Borrowing base	$ 425		$ 425		$ 425	$ 510	$ 562.5
Cash balance threshold					$ 30
Average interest rate (as a percent)	2.29%	2.31%	2.38%	2.40%
Average outstanding balance	$ 184.5	$ 100	$ 170.9	$ 156.7
Total interest and commitment fees	$ 1.3	$ 1	$ 4	$ 4
Covenant, total leverage ratio	4		4
Covenant, current ratio	1		1
Total leverage ratio	3.3		3.3
Current ratio	4.1		4.1
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			1.50%
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			2.50%
Revolving credit facility | Federal Funds Effective Swap Rate | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			0.50%
Revolving credit facility | One Month Adjust LIBO Rate | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			1.00%
Revolving credit facility | Base rate | Minimum | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			0.50%
Revolving credit facility | Base rate | Maximum | Revolver
Other Long-Term Debt
Margin interest rate (as a percent)			1.50%

Derivative Instruments and He45

Derivative Instruments and Hedging Activities - Hedging Positions (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016bbl / mo$ / bblMMBTU / mo$ / MMBTU	Dec. 31, 2015bbl / moMMBTU / mo$ / bbl$ / MMBTU
Basis swaps | Minimum
Hedging Positions
Contract differential (in dollars per mmbtu) | $ / MMBTU	(0.30)	(0.39)
Net mmbtu per month (in mmbtu per month) | MMBTU / mo	1,190,000	1,190,000
Basis swaps | Maximum
Hedging Positions
Contract differential (in dollars per mmbtu) | $ / MMBTU	(0.15)	(0.11)
Net mmbtu per month (in mmbtu per month) | MMBTU / mo	1,220,000	1,730,000
Basis swaps | Weighted Average
Hedging Positions
Contract differential (in dollars per mmbtu) | $ / MMBTU	(0.18)	(0.18)
Net mmbtu per month (in mmbtu per month) | MMBTU / mo	1,203,333	1,360,833
Oil | Swaps | Minimum
Hedging Positions
Exercise price (in dollars per barrel)	41.59	54.53
Offset exercise price (in dollars per barrel)	34.70
Net barrels per month (in barrels per month) | bbl / mo		54,000
Oil | Swaps | Maximum
Hedging Positions
Exercise price (in dollars per barrel)	90.50	100.87
Offset exercise price (in dollars per barrel)	49
Net barrels per month (in barrels per month) | bbl / mo	156,000	194,000
Oil | Swaps | Weighted Average
Hedging Positions
Exercise price (in dollars per barrel)	65.43	79.16
Offset exercise price (in dollars per barrel)	46.04
Net barrels per month (in barrels per month) | bbl / mo	93,333	97,119
Oil | Collars | Minimum
Hedging Positions
Net barrels per month (in barrels per month) | bbl / mo	65,000
Oil | Collars | Maximum
Hedging Positions
Net barrels per month (in barrels per month) | bbl / mo	65,000
Oil | Collars | Weighted Average
Hedging Positions
Net barrels per month (in barrels per month) | bbl / mo	65,000
Natural gas | Swaps | Minimum
Hedging Positions
Exercise price (in dollars per mmbtu) | $ / MMBTU	2.25	3.22
Offset exercise price (in dollars per mmbtu)	2.34
Net mmbtu per month (in mmbtu per month) | MMBTU / mo		700,000
Natural gas | Swaps | Maximum
Hedging Positions
Exercise price (in dollars per mmbtu) | $ / MMBTU	5.25	6.45
Offset exercise price (in dollars per mmbtu)	3.02
Net mmbtu per month (in mmbtu per month)	1,470,000	1,640,000
Natural gas | Swaps | Weighted Average
Hedging Positions
Exercise price (in dollars per mmbtu) | $ / MMBTU	3.71	4.25
Offset exercise price (in dollars per mmbtu)	2.83
Net mmbtu per month (in mmbtu per month)	1,018,182	1,042,857
Natural gas liquids | Swaps | Minimum
Hedging Positions
Exercise price (in dollars per barrel)	8.90	8.90
Net barrels per month (in barrels per month) | bbl / mo	110,000	2,000
Natural gas liquids | Swaps | Maximum
Hedging Positions
Exercise price (in dollars per barrel)	78.86	95.24
Net barrels per month (in barrels per month) | bbl / mo	126,000	112,000
Natural gas liquids | Swaps | Weighted Average
Hedging Positions
Exercise price (in dollars per barrel)	25.43	32.62
Net barrels per month (in barrels per month) | bbl / mo	116,467	51,792
Puts (floors) | Oil | Collars | Minimum
Hedging Positions
Exercise price (in dollars per barrel)	45
Puts (floors) | Oil | Collars | Maximum
Hedging Positions
Exercise price (in dollars per barrel)	50
Puts (floors) | Oil | Collars | Weighted Average
Hedging Positions
Exercise price (in dollars per barrel)	48.46
Calls (ceilings) | Oil | Collars | Minimum
Hedging Positions
Exercise price (in dollars per barrel)	56.60
Calls (ceilings) | Oil | Collars | Maximum
Hedging Positions
Exercise price (in dollars per barrel)	61
Calls (ceilings) | Oil | Collars | Weighted Average
Hedging Positions
Exercise price (in dollars per barrel)	59.62

Derivative Instruments and He46

Derivative Instruments and Hedging Activities - Recognized Gain (Loss ) on Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commodity Derivative Instruments
Recognized Net Gain (Loss) on Derivative Instruments
Net (losses) gains recognized on derivative instruments	$ 4	$ 90.5	$ (18.8)	$ 111.7

Derivative Instruments and He47

Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities - Counterparties (Details)	Sep. 30, 2016Counterparty
Derivative Instruments and Hedging Activities
Number of counterparties to commodity derivative contracts	6

Derivative Instruments and He48

Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - Commodity Derivative Instruments - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Gross Amounts of Recognized Assets	$ 119,012	$ 218,036
Gross Amounts Offset in the Balance Sheet	(19,759)	(527)
Net Amounts of Assets Presented in the Balance Sheet	99,253	217,509
Net Amount	$ 99,253	$ 217,509

Derivative Instruments and He49

Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - Commodity Derivative Instruments - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Liabilities
Gross Amounts of Recognized Liabilities	$ (21,903)	$ (538)
Gross Amounts Offset in the Balance Sheet	19,759	527
Net Amounts of Liabilities Presented in the Balance Sheet	(2,144)	(11)
Net Amount	$ (2,144)	$ (11)

Fair Value Measurement - Financ

Fair Value Measurement - Financial Instruments Carried at Fair Value by Consolidated Balance Sheet Caption and by Valuation Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Valuation Hierarchy
Current assets	$ 48,784	$ 124,207
Long-term assets	50,469	93,302
Current liabilities	1,618	11
Long-term liabilities	526
Recurring | Commodity Derivative Instruments
Valuation Hierarchy
Current assets	48,784	124,207
Long-term assets	50,469	93,302
Current liabilities	1,618	11
Long-term liabilities	526
Recurring | Level 2 | Commodity Derivative Instruments
Valuation Hierarchy
Current assets	49,168	122,779
Long-term assets	51,189	93,302
Current liabilities	1,563	11
Long-term liabilities	526
Recurring | Level 3 | Commodity Derivative Instruments
Valuation Hierarchy
Current assets	(384)	$ 1,428
Long-term assets	(720)
Current liabilities	$ 55

Fair Value Measurement - Quanti

Fair Value Measurement - Quantitative Information about Level 3 Inputs - Assets (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016USD ($)$ / bbl	Dec. 31, 2015USD ($)$ / bbl
Commodity Derivative Instruments
Commodity Derivative Instruments - Assets
Fair Value | $	$ 119,012	$ 218,036
Natural gas liquids | Swaps | Minimum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	8.90	8.90
Natural gas liquids | Swaps | Maximum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	78.86	95.24
Oil | Swaps | Minimum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	41.59	54.53
Oil | Swaps | Maximum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	90.50	100.87
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps
Commodity Derivative Instruments - Assets
Fair Value | $	$ (562)
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps | Minimum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	8.90
Discounted cash flow approach | Level 3 | Natural gas liquids | Swaps | Maximum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	25.20
Discounted option model approach | Level 3 | Oil | Collars
Commodity Derivative Instruments - Assets
Fair Value | $	$ (597)
Discounted option model approach | Level 3 | Oil | Collars | Minimum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	45
Discounted option model approach | Level 3 | Oil | Collars | Maximum
Commodity Derivative Instruments - Assets
Price (in dollars per barrel)	61

Fair Value Measurement - Change

Fair Value Measurement - Changes in Level 3 Financial Instruments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Changes in fair value of Level 3 instruments
Balance at the beginning of the period	$ 1,428
Purchases	(3,339)
Settlements	(667)
Transfers to Level 2	2,363
Changes in fair value	(944)
Balance at the end of the period	$ (1,159)

Fair Value Measurement - Assets

Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Principal Amount | 2022 Notes | Senior notes
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	$ 409,148	$ 500,000
Principal Amount | 2023 Notes | Senior notes
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	150,000	250,000
Principal Amount | Revolving credit facility | Revolver | Line of credit
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	143,000	110,000
Fair Value | 2022 Notes | Senior notes
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	352,121	260,000
Fair Value | 2023 Notes | Senior notes
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	142,032	153,283
Fair Value | Revolving credit facility | Revolver | Line of credit
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Debt	$ 143,000	$ 110,000

Asset Retirement Obligations -

Asset Retirement Obligations - Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Asset Retirement Obligations
Balance at beginning of period			$ 20,980
Liabilities incurred			6,736
Accretion of ARO liability	$ 323	$ 210	913	$ 610
Liabilities settled due to sale of related properties			(446)
Liabilities settled due to plugging and abandonment			(101)
Change in estimate			49
Balance at end of period	$ 28,131		$ 28,131

Asset Retirement Obligations 55

Asset Retirement Obligations - Liability at Period End (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Asset Retirement Obligations
ARO liability at end of period	$ 28,131	$ 20,980
Less: Current portion of ARO	(679)	(679)
Total long-term ARO at end of period	$ 27,452	$ 20,301

Asset Retirement Obligations 56

Asset Retirement Obligations - Related to Acquisition (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Asset Retirement Obligations
Liabilities incurred	$ 6,736
Anadarko Acquisition
Asset Retirement Obligations
Liabilities incurred	$ 6,400

Stock-based Compensation - Mana

Stock-based Compensation - Management Unit Awards - New Awards (Details)	38 Months Ended
	Sep. 30, 2016shares
Management Unit Awards
Stock-based Compensation
Awards (in shares)	0

Stock-based Compensation - Ma58

Stock-based Compensation - Management Unit Awards - Activity (Details) - Management Unit Awards	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Units
Unvested at the beginning of the period (in shares) | shares	189,355
Granted (in shares) | shares	40,630
Forfeited (in shares) | shares	(40,630)
Vested (in shares) | shares	(98,593)
Unvested at the end of the period (in shares) | shares	90,762
Weighted Average Grant Date Fair Value per Share
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 15
Granted (in dollars per share) | $ / shares	15
Forfeited (in dollars per share) | $ / shares	15
Vested (in dollars per share) | $ / shares	15
Unvested at the end of the period (in dollars per share) | $ / shares	$ 15

Stock-based Compensation - Ma59

Stock-based Compensation - Management Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
General and administrative expenses | Management Unit Awards
Stock compensation expense
Stock compensation expense	$ 0.2	$ 0.3	$ 1	$ 0.9

Stock-based Compensation - 2013

Stock-based Compensation - 2013 Omnibus Incentive Plan (Details)	Sep. 30, 2016shares
2013 Omnibus Incentive Plan | Class A common stock
Stock-based Compensation
Shares reserved (in shares)	7,350,000

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Unit Awards - General Information (Details)	9 Months Ended
	Sep. 30, 2016
Restricted Stock Unit Awards
Stock-based Compensation
Vesting term	3 years

Stock-based Compensation - Re62

Stock-based Compensation - Restricted Stock Unit Awards - Activity (Details) - Restricted Stock Unit Awards	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Awards
Unvested at the beginning of the period (in shares) | shares	757,245
Granted (in shares) | shares	941,010
Forfeited (in shares) | shares	(194,258)
Vested (in shares) | shares	(229,388)
Unvested at the end of the period (in shares) | shares	1,274,609
Weighted Average Grant Date Fair Value per Share
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 11.65
Granted (in dollars per share) | $ / shares	3.99
Forfeited (in dollars per share) | $ / shares	9.96
Vested (in dollars per share) | $ / shares	11.75
Unvested at the end of the period (in dollars per share) | $ / shares	$ 6.24

Stock-based Compensation - Re63

Stock-based Compensation - Restricted Stock Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
General and administrative expenses | Restricted Stock Unit Awards
Stock compensation expense
Stock compensation expense	$ 1	$ 0.9	$ 2	$ 2.1

Stock-based Compensation - Perf

Stock-based Compensation - Performance Share Unit Awards - General Information (Details) - Performance Share Unit Awards	9 Months Ended
	Sep. 30, 2016
Stock-based Compensation
Vesting term	3 years
Exchangeable ratio of vested performance unit (as a percent)	1
Class A common stock | Minimum
Stock-based Compensation
Number of shares of common stock issuable upon vesting of the performance unit awards (as a percent)	0.00%
Class A common stock | Maximum
Stock-based Compensation
Number of shares of common stock issuable upon vesting of the performance unit awards (as a percent)	200.00%

Stock-based Compensation - Pe65

Stock-based Compensation - Performance Share Unit Awards - Assumptions (Details) - Performance Share Unit Awards	9 Months Ended
	Sep. 30, 2016
Stock-based Compensation
Forecast period (years)	2 years 7 months 6 days
Risk-free interest rate (as a percent)	1.00%
Jones stock price volatility (as a percent)	71.47%
Expected percentage of performance share units earned (as a percent)	69.00%

Stock-based Compensation - Pe66

Stock-based Compensation - Performance Share Unit Awards - Activity (Details) - Performance Share Unit Awards	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Awards
Unvested at the beginning of the period (in shares) | shares	539,188
Granted (in shares) | shares	551,252
Forfeited (in shares) | shares	(55,235)
Unvested at the end of the period (in shares) | shares	1,035,205
Weighted Average Grant Date Fair Value per Share
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 14.22
Granted (in dollars per share) | $ / shares	4.75
Forfeited (in dollars per share) | $ / shares	13.27
Unvested at the end of the period (in dollars per share) | $ / shares	$ 9.23

Stock-based Compensation - Pe67

Stock-based Compensation - Performance Share Unit Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
General and administrative expenses | Performance Share Unit Awards
Stock compensation expense
Stock compensation expense	$ 0.8	$ 0.7	$ 1.9	$ 1.7

Stock-based Compensation - Pe68

Stock-based Compensation - Performance Unit Awards - General Information (Details) - Performance Unit Awards $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)$ / shares
Stock-based Compensation
Performance period (in years)	3 years
Estimated final value upon vesting | $	$ 1.3
Fair value | $	$ 1.3
Minimum
Stock-based Compensation
Vested (in dollars per share) | $ / shares	$ 0
Maximum
Stock-based Compensation
Vested (in dollars per share) | $ / shares	$ 200

Stock-based Compensation - Pe69

Stock-based Compensation - Performance Unit Awards - Assumptions (Details) - Performance Unit Awards	9 Months Ended
	Sep. 30, 2016$ / shares
Stock-based Compensation
Forecast period (years)	2 years 7 months 6 days
Risk-free interest rate (as a percent)	1.00%
Jones stock price volatility (as a percent)	71.47%
Expected payout per unit as of the grant date (in dollars per share)	$ 67.38

Stock-based Compensation - Pe70

Stock-based Compensation - Performance Unit Awards - Stock Compensation Expense (Details) - Performance Unit Awards $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)
Stock-based Compensation
Unrecognized expenses	$ 1.1	$ 1.1
Weighted-average remaining recognition period (in years)		2 years 3 months
General and administrative expenses
Stock-based Compensation
Stock compensation expense	$ 0.1	$ 0.2

Stock-based Compensation - Re71

Stock-based Compensation - Restricted Stock Awards - General Information (Details)	9 Months Ended
	Sep. 30, 2016
Restricted Stock Awards
Stock-based Compensation
Service period from date of grant	1 year

Stock-based Compensation - Re72

Stock-based Compensation - Restricted Stock Awards - Activity (Details) - Restricted Stock Awards	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Awards
Unvested at the beginning of the period (in shares) | shares	67,380
Granted (in shares) | shares	139,825
Vested (in shares) | shares	(67,380)
Unvested at the end of the period (in shares) | shares	139,825
Weighted Average Grant Date Fair Value per Share
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 7.30
Granted (in dollars per share) | $ / shares	4
Vested (in dollars per share) | $ / shares	7.30
Unvested at the end of the period (in dollars per share) | $ / shares	$ 4

Stock-based Compensation - Re73

Stock-based Compensation - Restricted Stock Awards - Stock Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
General and administrative expenses | Restricted Stock Awards
Stock compensation expense
Stock compensation expense	$ 0.1	$ 0.1	$ 0.4	$ 0.4

Income Taxes - Tax Rate (Detail

Income Taxes - Tax Rate (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes
Effective tax rate (as a percent)	22.60%	15.80%	20.20%	30.10%
Statutory rate (as a percent)			35.00%

Income Taxes - Tax Provision -

Income Taxes - Tax Provision - Attributable to Controlling Interests and Non-controlling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Tax provision
Jones Energy, Inc.	$ (6,254)	$ 7,157	$ (7,900)	$ (3,195)
Non-controlling interest	(295)	(638)	(334)	(1,395)
Income tax provision (benefit)	(6,549)	6,519	(8,234)	(4,590)
JEI (Parent)
Tax provision
Income tax provision (benefit)	$ (5,885)	$ 7,271	$ (7,520)	$ (2,570)

Income Taxes - Net Operating Lo

Income Taxes - Net Operating Loss Carry-forward (Details) $ in Millions	Sep. 30, 2016USD ($)
Income Taxes
Valuation allowance	$ 2.7

Income Taxes - Tax Receivable A

Income Taxes - Tax Receivable Agreement (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Liability under tax receivable agreement	$ 43,212	$ 43,212	$ 38,052
Deferred tax assets associated with exchanges of shares, net of valuation allowance	50,600	50,600	44,800
Increase (decrease) in TRA liability due to unit and share exchanges	5,300	5,500
Increase (decrease) in TRA liability due to valuation allowance recorded	(100)	(300)
Other income (expense)
Amount of change charged to other income (expense)	300	400
JEI (Parent)
Liability under tax receivable agreement	$ 43,212	$ 43,212	$ 38,052

Income Taxes - Cash Tax Distrib

Income Taxes - Cash Tax Distributions (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Income Taxes
Cash tax distributions	$ 20
Cash tax distributions, JEH to the Company	$ 9.9

Stockholders_ and Mezzanine e79

Stockholders’ and Mezzanine equity (Details) $ in Thousands, shares in Millions	Aug. 25, 2016	Sep. 30, 2016USD ($)classshares	Sep. 30, 2015USD ($)	May 24, 2016USD ($)
Stockholders' equity
Number of classes of common stock | class		2
Proceeds from sale of common stock		$ 65,548	$ 122,779
Pre-IPO Owners
Stockholders' equity
Ratio in which JEH Units and Class B common stock are exchanged for Class A common stock		1
Class A common stock
Stockholders' equity
Economic interests/rights (as a percent)		100.00%
Votes per share entitled to holders		1
Proceeds from sale of common stock		$ 1,800
Gross proceeds from sale of common stock		2,100
Professional services expenses		300
Aggregate offering price		$ 70,900
Class A common stock | Maximum
Stockholders' equity
Offering value to sell common stock shares under equity distribution agreement				$ 73,000
Class B common stock
Stockholders' equity
Economic interests/rights (as a percent)		0.00%
Votes per share entitled to holders		1
Series A preferred stock
Stockholders' equity
Dividend rate (as a percent)	8.00%
Common Stock | Class A common stock
Stockholders' equity
Sale of stock (in shares) | shares		0.5

Stockholders' and Mezzanine equ

Stockholders' and Mezzanine equity - Offering of Class A Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 07, 2016	Aug. 19, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Common Stock
Proceeds from sale of common stock			$ 65,548	$ 122,779
Class A common stock
Common Stock
Common stock, par value (in dollars per share)			$ 0.001		$ 0.001
Proceeds from sale of common stock			$ 1,800
Class A common stock | Common Stock Underwriting Agreement
Common Stock
Shares issued		21,000,000
Common stock, par value (in dollars per share)		$ 0.001
Period for purchase of additional shares by underwriters		30 days
Proceeds from sale of common stock	$ 64,000
Class A common stock | Over-Allotment Option
Common Stock
Shares issued	3,150,000

Stockholders_ and Mezzanine e81

Stockholders’ and Mezzanine equity - Mezzanine equity (Details)	Oct. 18, 2016$ / shares	Aug. 25, 2016	Aug. 19, 2016USD ($)item$ / sharesshares	Sep. 30, 2016USD ($)$ / shares	Dec. 31, 2015$ / shares
Series A Perpetual Convertible Preferred Stock
Net proceeds from offering				$ 88,236,000
Series A preferred stock, par value (in dollars per share) | $ / shares				$ 0.001	$ 0.001
Conversion threshold (as a percent)				$ 175
Mezzanine equity
Mezzanine equity at end of period				88,743,000
Series A preferred stock
Series A Perpetual Convertible Preferred Stock
Dividend rate (as a percent)	8.00%	8.00%
Liquidation preference (in dollars per share) | $ / shares	$ 50		$ 50
Conversion ratio			15.6961
Equivalent conversion price (in dollars per share) | $ / shares			$ 3.19
Shares issuable upon conversion | shares			28,900,000
Minimum number of trading days | item			20
Consecutive trading days			30 days
Mezzanine equity
Series A preferred stock, at issuance				87,978,000
Dividends on preferred stock				716,000
Accretion on preferred stock				49,000
Mezzanine equity at end of period				$ 88,743,000
Series A preferred stock | Preferred Stock Underwriting Agreement
Series A Perpetual Convertible Preferred Stock
Shares issued (in shares) | shares			1,600,000
Net proceeds from offering			$ 88,300,000
Series A preferred stock | Over-Allotment Option
Series A Perpetual Convertible Preferred Stock
Shares issued (in shares) | shares			240,000
Class A common stock
Series A Perpetual Convertible Preferred Stock
Common stock, par value (in dollars per share) | $ / shares				$ 0.001	$ 0.001

Earnings per Share - Anti-dilut

Earnings per Share - Anti-dilutive Securities (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Restricted Stock Unit Awards
Earnings per Share
Antidilutive securities (in shares)	1,274,611	1,274,611
Performance Share Unit Awards
Earnings per Share
Antidilutive securities (in shares)	1,035,205	1,035,205
Class B common stock
Earnings per Share
Economic interests/rights (as a percent)		0.00%
Series A preferred stock
Earnings per Share
Antidilutive securities (in shares)		28,880,824

Earnings per Share - Basic Earn

Earnings per Share - Basic Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income (numerator):
Net income (loss) attributable to controlling interests	$ (9,853)	$ 13,238	$ (14,187)	$ (3,017)
Less: Dividends and accretion on preferred stock	(765)		(765)
Net income (loss) attributable to common shareholders	$ (10,618)	$ 13,238	$ (14,952)	$ (3,017)
Weighted-average shares (denominator):
Weighted-average number of shares of Class A common stock - basic	41,375	30,432	34,300	25,591
Weighted-average number of shares of Class A common stock - diluted	41,375	30,432	34,300	25,591
Earnings (loss) per share:
Basic - Net income (loss) attributable to common shareholders	$ (0.26)	$ 0.44	$ (0.44)	$ (0.12)
Diluted - Net income (loss) attributable to common shareholders	$ (0.26)	$ 0.44	$ (0.44)	$ (0.12)
JEI (Parent)
Income (numerator):
Net income (loss) attributable to controlling interests	$ (9,853)	$ 13,238	$ (14,187)	$ (3,017)
Less: Dividends and accretion on preferred stock	(765)		(765)
Net income (loss) attributable to common shareholders	$ (10,618)		$ (14,952)

Related Parties - Natural Gas S

Related Parties - Natural Gas Sale and Purchase Agreement with Monarch Natural Gas, LLC (Details) - USD ($) $ in Thousands	Sep. 01, 2013	Sep. 30, 2016
Enable Midstream Partners LP
Related Party Transactions
Initial term of the agreement (in years)	10 years
Investee | Monarch Natural Gas, LLC
Related Party Transactions
Related party revenue		$ 0

Related Parties - Metalmark Cap

Related Parties - Metalmark Capital and Monarch Natural Gas, LLC (Details) - director	May 07, 2013	Sep. 30, 2016
Monarch Natural Gas, LLC | Investee | Metalmark
Related Party Transactions
Metalmark Capital's ownership percentage in Monarch (as a percent)	81.00%
Metalmark | Beneficial owner
Related Party Transactions
Number of directors who are managing directors of the related party		2
Minimum | Metalmark | Beneficial owner
Related Party Transactions
Beneficial ownership interest (as a percent)		5.00%

Related Parties - Monarch Natur

Related Parties - Monarch Natural Gas, LLC Equity Interests (Details) - Monarch Natural Gas, LLC - Investee - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	May 07, 2013
Related Party Transactions
Estimated fair value of equity interests issued to the entity					$ 15
Amortization of deferred revenue	$ 0.6	$ 0.5	$ 1.8	$ 1.5

Related Parties - Transportatio

Related Parties - Transportation Agreement with Monarch Oil Pipeline LLC (Details) - Monarch Oil Pipeline LLC - Investee $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2016USD ($)MMBoe	Sep. 30, 2016USD ($)MMBoe
Related Party Transactions
Term of Oil Gathering and Transportation Agreement (in years)	10 years
Gathering fees | $		$ 0.7	$ 2
Oil production transported (in MMBoe) | MMBoe		0.3	1

Related Parties - Purchase of S

Related Parties - Purchase of Senior Notes (Details) - USD ($) $ in Thousands	Feb. 29, 2016	Sep. 30, 2016
Senior Unsecured Notes
Gain on debt extinguishment		$ 99,530
Minimum | Magnetar Capital and Affiliates | Beneficial owner
Senior Unsecured Notes
Beneficial ownership interest (as a percent)	5.00%
Minimum | Blackstone Group Management L.L.C. and Affiliates | Beneficial owner
Senior Unsecured Notes
Beneficial ownership interest (as a percent)	5.00%
Senior notes
Senior Unsecured Notes
Aggregate principal amount repurchased		190,900
Gain on debt extinguishment		99,500
2023 Notes | Senior notes | Beneficial owner
Senior Unsecured Notes
Aggregate principal amount repurchased	$ 100,000	100,000
Purchased amount		$ 46,500
Gain on debt extinguishment	48,300
2023 Notes | Senior notes | Magnetar Capital and Affiliates | Beneficial owner
Senior Unsecured Notes
Aggregate principal amount repurchased	50,000
Purchased amount	23,300
2023 Notes | Senior notes | Blackstone Group Management L.L.C. and Affiliates | Beneficial owner
Senior Unsecured Notes
Aggregate principal amount repurchased	50,000
Purchased amount	$ 23,300

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2016USD ($)
Surface Rights Use Violation Case
Loss contingencies
Accrued liability on settlement offer	$ 1.5

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 18, 2016	Aug. 25, 2016	Sep. 30, 2016	Aug. 19, 2016	Aug. 01, 2016	Oct. 08, 2015	Feb. 23, 2015
Series A preferred stock
Preferred Stock Dividend Declared
Dividend rate (as a percent)	8.00%	8.00%
Liquidation preference (in dollars per share)	$ 50			$ 50
Series A preferred stock | Subsequent event
Preferred Stock Dividend Declared
Dividend declared (in dollars per share)	$ 0.8777778
Wells Fargo Bank N.A. | Revolving credit facility | Revolver | Line of credit
Borrowing Base Redetermination
Borrowing base			$ 425		$ 425	$ 510	$ 562.5
Line of Credit Facility, Maximum Borrowing Capacity			$ 425		$ 425	$ 510	$ 562.5

Subsidiary Guarantors - Debt an

Subsidiary Guarantors - Debt and Equity (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Feb. 23, 2015	Apr. 01, 2014
Senior notes | 2022 Notes
Subsidiary Guarantors
Issuance of debt			$ 500
Senior notes | 2023 Notes
Subsidiary Guarantors
Issuance of debt		$ 250
Issuers | Guarantor Subsidiaries
Subsidiary Guarantors
Ownership percentage in subsidiary guarantors	100.00%
JEH | Jones Energy, Inc.
Subsidiary Guarantors
Number of units held	56,969,222
JEH | Pre-IPO Owners
Subsidiary Guarantors
Number of units held	29,872,426

Subsidiary Guarantors - General

Subsidiary Guarantors - General Information (Details)	9 Months Ended
	Sep. 30, 2016class
Subsidiary Guarantors
Number of classes of common stock	2
Class A common stock
Subsidiary Guarantors
Economic interests/rights (as a percent)	100.00%
Votes per share entitled to holders	1
Class B common stock
Subsidiary Guarantors
Economic interests/rights (as a percent)	0.00%
Votes per share entitled to holders	1
Pre-IPO Owners
Subsidiary Guarantors
Ratio in which JEH Units and Class B common stock are exchanged for Class A common stock	1

Subsidiary Guarantors - Condens

Subsidiary Guarantors - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 24,041	$ 21,893
Accounts receivable, net
Oil and gas sales	20,720	19,292
Joint interest owners	4,880	11,314
Other	10,015	15,170
Commodity derivative assets	48,784	124,207
Other current assets	2,603	2,298
Total current assets	111,043	194,174
Oil and gas properties, net, at cost under the successful efforts method	1,742,165	1,635,766
Other property, plant and equipment, net	3,186	3,873
Commodity derivative assets	50,469	93,302
Other assets	6,406	8,039
Total assets	1,913,269	1,935,154
Current liabilities
Trade accounts payable	27,328	7,467
Oil and gas sales payable	26,445	32,408
Accrued liabilities	28,793	27,011
Commodity derivative liabilities	1,618	11
Asset retirement obligations	679	679
Total current liabilities	84,863	67,576
Long-term debt	688,432	837,654
Deferred revenue	9,589	11,417
Commodity derivative liabilities	526
Asset retirement obligations	27,452	20,301
Liability under tax receivable agreement	43,212	38,052
Other liabilities	656	330
Deferred tax liabilities	16,070	22,972
Total liabilities	870,800	998,302
Mezzanine equity
Series A preferred stock	88,743
Stockholders' / members' equity
Treasury stock, at cost: 22,602 shares at September 30, 2016 and December 31, 2015	(358)	(358)
Additional paid-in-capital	447,400	363,723
Retained earnings (deficit)	21,617	36,569
Stockholders' equity	468,746	399,996
Non-controlling interest	484,980	536,856
Total stockholders' equity	953,726	936,852
Total liabilities and stockholders' equity	1,913,269	1,935,154
Class A common stock
Stockholders' / members' equity
Common stock	57	31
Class B common stock
Stockholders' / members' equity
Common stock	30	31
Eliminations
Accounts receivable, net
Intercompany receivable	(1,153,266)	(1,174,863)
Total current assets	(1,153,266)	(1,174,863)
Investment in subsidiaries	(589,523)	(444,362)
Total assets	(1,742,789)	(1,619,225)
Current liabilities
Intercompany payable	(1,539,962)	(1,394,272)
Total current liabilities	(1,539,962)	(1,394,272)
Total liabilities	(1,539,962)	(1,394,272)
Stockholders' / members' equity
Members' equity	(687,807)	(761,809)
Stockholders' equity	(687,807)	(761,809)
Non-controlling interest	484,980	536,856
Total stockholders' equity	(202,827)	(224,953)
Total liabilities and stockholders' equity	(1,742,789)	(1,619,225)
JEI (Parent)
Current assets
Cash	15,015	100
Accounts receivable, net
Intercompany receivable	13,815	12,866
Total current assets	28,830	12,966
Investment in subsidiaries	589,523	444,362
Total assets	618,353	457,328
Current liabilities
Trade accounts payable	469
Accrued liabilities	3,608
Total current liabilities	4,077
Liability under tax receivable agreement	43,212	38,052
Deferred tax liabilities	13,575	19,280
Total liabilities	60,864	57,332
Mezzanine equity
Series A preferred stock	88,743
Stockholders' / members' equity
Treasury stock, at cost: 22,602 shares at September 30, 2016 and December 31, 2015	(358)	(358)
Additional paid-in-capital	447,400	363,723
Retained earnings (deficit)	21,617	36,569
Stockholders' equity	468,746	399,996
Total stockholders' equity	468,746	399,996
Total liabilities and stockholders' equity	618,353	457,328
JEI (Parent) | Class A common stock
Stockholders' / members' equity
Common stock	57	31
JEI (Parent) | Class B common stock
Stockholders' / members' equity
Common stock	30	31
Issuers
Current assets
Cash	8,503	12,448
Accounts receivable, net
Other	9,912	14,444
Commodity derivative assets	48,784	124,207
Other current assets	531	444
Intercompany receivable	1,139,451	1,161,997
Total current assets	1,207,181	1,313,540
Commodity derivative assets	50,469	93,302
Other assets	5,666	7,456
Total assets	1,263,316	1,414,298
Current liabilities
Trade accounts payable	53	388
Accrued liabilities	14,735	15,741
Commodity derivative liabilities	1,618	11
Total current liabilities	16,406	16,140
Long-term debt	688,432	837,654
Deferred revenue	9,589	11,417
Commodity derivative liabilities	526
Other liabilities	168
Deferred tax liabilities	2,495	3,692
Total liabilities	717,616	868,903
Stockholders' / members' equity
Members' equity	545,700	545,395
Stockholders' equity	545,700	545,395
Total stockholders' equity	545,700	545,395
Total liabilities and stockholders' equity	1,263,316	1,414,298
Guarantor Subsidiaries
Current assets
Cash	503	9,325
Accounts receivable, net
Oil and gas sales	20,720	19,292
Joint interest owners	4,880	11,314
Other	103	726
Other current assets	2,072	1,854
Total current assets	28,278	42,511
Oil and gas properties, net, at cost under the successful efforts method	1,604,716	1,635,766
Other property, plant and equipment, net	2,545	3,168
Other assets	740	583
Total assets	1,636,279	1,682,028
Current liabilities
Trade accounts payable	26,806	7,079
Oil and gas sales payable	26,445	32,408
Accrued liabilities	10,450	11,270
Asset retirement obligations	679	679
Intercompany payable	1,399,870	1,391,838
Total current liabilities	1,464,250	1,443,274
Asset retirement obligations	27,452	20,301
Other liabilities	488	330
Total liabilities	1,492,190	1,463,905
Stockholders' / members' equity
Members' equity	144,089	218,123
Stockholders' equity	144,089	218,123
Total stockholders' equity	144,089	218,123
Total liabilities and stockholders' equity	1,636,279	1,682,028
Non-Guarantor Subsidiaries
Current assets
Cash	20	20
Accounts receivable, net
Total current assets	20	20
Oil and gas properties, net, at cost under the successful efforts method	137,449
Other property, plant and equipment, net	641	705
Total assets	138,110	725
Current liabilities
Intercompany payable	140,092	2,434
Total current liabilities	140,092	2,434
Total liabilities	140,092	2,434
Stockholders' / members' equity
Members' equity	(1,982)	(1,709)
Stockholders' equity	(1,982)	(1,709)
Total stockholders' equity	(1,982)	(1,709)
Total liabilities and stockholders' equity	$ 138,110	$ 725

Subsidiary Guarantors - Conde94

Subsidiary Guarantors - Condensed Consolidating Balance Sheet - Additional Information (Details) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Mezzanine equity
Series A preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series A preferred stock, shares issued	1,840,000	0
Series A preferred stock, shares outstanding	1,840,000	0
Treasury stock
Treasury stock, shares	22,602	22,602
Class A common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	56,991,824	30,573,509
Common stock, shares outstanding	56,969,222	30,550,907
Class B common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	29,872,426	31,273,130
Common stock, shares outstanding	29,872,426	31,273,130
JEI (Parent)
Mezzanine equity
Series A preferred stock, par value (in dollars per share)	$ 0.001
Series A preferred stock, shares issued	1,840,000
Series A preferred stock, shares outstanding	1,840,000
Treasury stock
Treasury stock, shares		22,602
JEI (Parent) | Class A common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	56,991,824	30,573,509
Common stock, shares outstanding	56,969,222	30,550,907
JEI (Parent) | Class B common stock
Common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	29,872,426	31,273,130
Common stock, shares outstanding	29,872,426	31,273,130

Subsidiary Guarantors - Conde95

Subsidiary Guarantors - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Oil and gas sales	$ 32,582	$ 46,499	$ 86,060	$ 156,955
Other revenues	771	653	2,295	2,210
Total operating revenues	33,353	47,152	88,355	159,165
Operating costs and expenses
Lease operating	7,865	8,872	24,027	32,930
Production and ad valorem taxes	1,733	2,513	5,061	9,292
Exploration	998	5,556	1,237	6,184
Depletion, depreciation and amortization	36,550	52,766	116,449	156,151
Accretion of ARO liability	323	210	913	610
General and administrative	6,448	9,628	22,078	27,572
Other operating				4,188
Total operating expenses	53,917	79,545	169,765	236,927
Operating income (loss)	(20,564)	(32,393)	(81,410)	(77,762)
Other income (expense)
Interest expense	(12,792)	(16,722)	(40,397)	(47,553)
Gain on debt extinguishment			99,530
Net gain (loss) on commodity derivatives	4,014	90,483	(18,769)	111,714
Other income (expense)	364	(7)	251	(1,631)
Other income (expense), net	(8,414)	73,754	40,615	62,530
Income (loss) before income tax	(28,978)	41,361	(40,795)	(15,232)
Income tax provision (benefit)	(6,549)	6,519	(8,234)	(4,590)
Net income (loss)	(22,429)	34,842	(32,561)	(10,642)
Net income (loss) attributable to non-controlling interests	(12,576)	21,604	(18,374)	(7,625)
Net income (loss) attributable to controlling interests	(9,853)	13,238	(14,187)	(3,017)
Dividends and accretion on preferred stock	(765)		(765)
Net income (loss) attributable to common shareholders	(10,618)	13,238	(14,952)	(3,017)
Eliminations
Other income (expense)
Equity interest in income	15,999	(20,509)	22,130	5,587
Net income (loss)	15,999	(20,509)	22,130	5,587
Net income (loss) attributable to non-controlling interests	(12,576)	21,604	(18,374)	(7,625)
JEI (Parent)
Other income (expense)
Other income (expense)	261		423
Other income (expense), net	261		423
Income (loss) before income tax	261		423
Equity interest in income	(15,999)	20,509	(22,130)	(5,587)
Income tax provision (benefit)	(5,885)	7,271	(7,520)	(2,570)
Net income (loss)	(9,853)	13,238	(14,187)	(3,017)
Net income (loss) attributable to controlling interests	(9,853)	13,238	(14,187)	(3,017)
Dividends and accretion on preferred stock	(765)		(765)
Net income (loss) attributable to common shareholders	(10,618)		(14,952)
Issuers
Operating revenues
Other revenues	587	493	1,828	1,521
Total operating revenues	587	493	1,828	1,521
Operating costs and expenses
General and administrative	2,928	6,730	8,782	9,715
Total operating expenses	2,928	6,730	8,782	9,715
Operating income (loss)	(2,341)	(6,237)	(6,954)	(8,194)
Other income (expense)
Interest expense	(12,652)	(16,533)	(40,417)	(46,681)
Gain on debt extinguishment			99,530
Net gain (loss) on commodity derivatives	4,014	90,483	(18,769)	111,714
Other income (expense)	(25)	(23)	(298)	(2,324)
Other income (expense), net	(8,663)	73,927	40,046	62,709
Income (loss) before income tax	(11,004)	67,690	33,092	54,515
Income tax provision (benefit)	(664)	(752)	(714)	(2,020)
Net income (loss)	(10,340)	68,442	33,806	56,535
Guarantor Subsidiaries
Operating revenues
Oil and gas sales	32,582	46,499	86,060	156,955
Other revenues	184	160	467	689
Total operating revenues	32,766	46,659	86,527	157,644
Operating costs and expenses
Lease operating	7,865	8,872	24,027	32,930
Production and ad valorem taxes	1,733	2,513	5,061	9,292
Exploration	998	5,556	1,237	6,184
Depletion, depreciation and amortization	36,527	52,743	116,385	156,083
Accretion of ARO liability	323	210	913	610
General and administrative	3,476	2,853	13,087	17,765
Other operating				4,188
Total operating expenses	50,922	72,747	160,710	227,052
Operating income (loss)	(18,156)	(26,088)	(74,183)	(69,408)
Other income (expense)
Interest expense	(140)	(189)	20	(872)
Other income (expense)	128	16	126	693
Other income (expense), net	(12)	(173)	146	(179)
Income (loss) before income tax	(18,168)	(26,261)	(74,037)	(69,587)
Net income (loss)	(18,168)	(26,261)	(74,037)	(69,587)
Non-Guarantor Subsidiaries
Operating costs and expenses
Depletion, depreciation and amortization	23	23	64	68
General and administrative	44	45	209	92
Total operating expenses	67	68	273	160
Operating income (loss)	(67)	(68)	(273)	(160)
Other income (expense)
Income (loss) before income tax	(67)	(68)	(273)	(160)
Net income (loss)	$ (67)	$ (68)	$ (273)	$ (160)

Subsidiary Guarantors - Conde96

Subsidiary Guarantors - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net income (loss)	$ (22,429)	$ 34,842	$ (32,561)	$ (10,642)
Adjustments to reconcile net income (loss) to net cash provided by operating activities			47,470	99,701
Net cash provided by operations			14,909	89,059
Cash flows from investing activities
Additions to oil and gas properties			(210,878)	(280,528)
Proceeds from sales of assets			74	37
Acquisition of other property, plant and equipment (net of reimbursements)			(194)	(1,034)
Current period settlements of matured derivative contracts			106,151	103,858
Net cash (used in) investing			(104,847)	(177,667)
Cash flows from financing activities
Proceeds from issuance of long-term debt			75,000	75,000
Repayment under long-term debt			(42,000)	(335,000)
Proceeds from senior notes				236,475
Purchase of senior notes			(84,589)
Payment of debt issuance costs				(1,514)
Net distributions paid to JEH unitholders			(10,109)
Proceeds from sale of common stock, net of expense			65,548	122,779
Proceeds from sale of preferred stock			88,236
Net cash (used in) / provided by financing			92,086	97,740
Net increase (decrease) in cash			2,148	9,132
Cash
Beginning of period			21,893	13,566
End of period	24,041	22,698	24,041	22,698
Eliminations
Cash flows from operating activities
Net income (loss)	15,999	(20,509)	22,130	5,587
Adjustments to reconcile net income (loss) to net cash provided by operating activities			(22,130)	(5,587)
JEI (Parent)
Cash flows from operating activities
Net income (loss)	(9,853)	13,238	(14,187)	(3,017)
Adjustments to reconcile net income (loss) to net cash provided by operating activities			(134,592)	(119,762)
Net cash provided by operations			(148,779)	(122,779)
Cash flows from financing activities
Net distributions paid to JEH unitholders			9,910
Proceeds from sale of common stock, net of expense			65,548	122,779
Proceeds from sale of preferred stock			88,236
Net cash (used in) / provided by financing			163,694	122,779
Net increase (decrease) in cash			14,915
Cash
Beginning of period			100	100
End of period	15,015	100	15,015	100
Issuers
Cash flows from operating activities
Net income (loss)	(10,340)	68,442	33,806	56,535
Adjustments to reconcile net income (loss) to net cash provided by operating activities			(72,294)	(133,068)
Net cash provided by operations			(38,488)	(76,533)
Cash flows from investing activities
Current period settlements of matured derivative contracts			106,151	103,858
Net cash (used in) investing			106,151	103,858
Cash flows from financing activities
Proceeds from issuance of long-term debt			75,000	75,000
Repayment under long-term debt			(42,000)	(335,000)
Proceeds from senior notes				236,475
Purchase of senior notes			(84,589)
Payment of debt issuance costs				(1,514)
Net distributions paid to JEH unitholders			(20,019)
Net cash (used in) / provided by financing			(71,608)	(25,039)
Net increase (decrease) in cash			(3,945)	2,286
Cash
Beginning of period			12,448	1,000
End of period	8,503	3,286	8,503	3,286
Guarantor Subsidiaries
Cash flows from operating activities
Net income (loss)	(18,168)	(26,261)	(74,037)	(69,587)
Adjustments to reconcile net income (loss) to net cash provided by operating activities			276,076	357,958
Net cash provided by operations			202,039	288,371
Cash flows from investing activities
Additions to oil and gas properties			(210,741)	(280,528)
Proceeds from sales of assets			74	37
Acquisition of other property, plant and equipment (net of reimbursements)			(194)	(1,034)
Net cash (used in) investing			(210,861)	(281,525)
Cash flows from financing activities
Net increase (decrease) in cash			(8,822)	6,846
Cash
Beginning of period			9,325	12,436
End of period	503	19,282	503	19,282
Non-Guarantor Subsidiaries
Cash flows from operating activities
Net income (loss)	(67)	(68)	(273)	(160)
Adjustments to reconcile net income (loss) to net cash provided by operating activities			410	160
Net cash provided by operations			137
Cash flows from investing activities
Additions to oil and gas properties			(137)
Net cash (used in) investing			(137)
Cash
Beginning of period			20	30
End of period	$ 20	$ 30	$ 20	$ 30