Rosehill Resources 10-Q 15 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
Entity Registrant Name	Rosehill Resources Inc.
Entity Central Index Key	1,659,122
Document Type	10-Q
Trading Symbol	ROSE
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017
Common Class A [Member]
Entity Common Stock, Shares Outstanding		5,962,245
Class F Common Stock [Member]
Entity Common Stock, Shares Outstanding		29,807,692

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents		$ 11,058	$ 8,434
Accounts receivable		2,054	1,928
Accounts receivable, related parties		5,239	4,837
Inventory		165	280
Derivative assets		1,909	247
Prepaid and other current assets		1,413	617
Total current assets		21,838	16,343
Property and Equipment
Oil and natural gas properties (successful efforts)		313,307	262,033
Other property and equipment		3,566	3,807
Accumulated depletion, depreciation and amortization	[1]	(159,802)	(142,467)
Total property and equipment, net		157,071	123,373
Other assets, net		750	110
Total Assets		179,659	139,826
Current Liabilities
Accounts payable		5,446	4,658
Accounts payable, related parties		376	612
Accrued liabilities and other		13,616	7,235
Derivative liabilities			1,856
Total current liabilities		19,438	14,361
Revolving credit facility		20,000	55,000
Asset retirement obligations		4,936	5,180
Deferred income taxes		273
Other		51	65
Total liabilities		44,698	74,606
Commitments and Contingencies (Note 15)
Stockholders' Equity / Parent Net Investment
Preferred Stock, $0.0001 par value, 1,000,000 shares authorized, 8.000% Series A Cumulative Perpetual Convertible, $1,000 per share liquidation preference, 96,372 shares issued and outstanding as of June 30, 2017 (including a stock dividend declared on June 29, 2017, of 1,372 shares issued on July 15, 2017)		78,666
Additional paid-in capital		20,960
Accumulated deficit		(457)
Total common stockholders' equity		20,507
Noncontrolling interest		35,788
Parent net investment			65,220
Total Equity / Parent Net Investment		134,961	65,220
Total Liabilities and Stockholders' Equity / Parent Net Investment		179,659	139,826
Common Class A [Member]
Stockholders' Equity / Parent Net Investment
Common stock		1
Common Class B [Member]
Stockholders' Equity / Parent Net Investment
Common stock		$ 3
[1]	Accumulated Depreciation, Depletion and Amortization ('DD&A') of oil and natural gas properties including impairment, if any, is $157.3 million and $139.8 million as of June 30, 2017 and December 31, 2016, respectively.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	1,000,000	1,000,000
8.0% Series A Cumulative Perpetual Preferred Stock [Member]
Preferred stock, issued	96,372	96,372
Preferred stock, outstanding	96,372	96,372
Preferred stock, liquidation preference (in dollars per share)	$ 1,000	$ 1,000
Preferred stock dividend declared (in dollars per share)	1,372
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0.0001
Common stock, authorised	95,000,000
Common stock, issued	5,856,579
Common stock, outstanding	5,856,579
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.0001
Common stock, authorised	30,000,000
Common stock, issued	29,807,692
Common stock, outstanding	29,807,692

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Oil sales	$ 11,246	$ 6,430	$ 25,029	$ 9,528
Natural gas sales	1,817	1,159	3,711	2,064
Natural gas liquids sales	1,602	1,194	3,426	1,929
Total revenues	14,665	8,783	32,166	13,521
Operating expenses
Lease operating expenses	1,918	1,310	3,535	2,307
Production taxes	659	403	1,467	606
Gathering and transportation	768	585	1,494	1,068
Depreciation, depletion, amortization and accretion	9,536	5,616	17,767	10,638
Exploration costs	457	175	774	318
General and administrative	2,204	1,141	3,669	2,549
Transaction costs	1,375		2,469
Gain on sale of other assets			(11)
Total operating expenses	16,917	9,230	31,164	17,486
Operating income (loss)	(2,252)	(447)	1,002	(3,965)
Other income (expense)
Interest expense	(431)	(612)	(974)	(2,046)
Gain (loss) on commodity derivative instruments	1,303	(1,918)	3,202	(1,901)
Other income (expense), net	153	8	43	22
Total other income (expense)	1,025	(2,522)	2,271	(3,925)
Income (loss) before income taxes	(1,227)	(2,969)	3,273	(7,890)
Income tax expense	187	46	273	64
Net income (loss)	(1,414)	(3,015)	3,000	(7,954)
Net income (loss) attributable to noncontrolling interest	(2,329)		(2,329)
Net income (loss) attributable to Rosehill Resources Inc. before preferred stock dividend	915	(3,015)	5,329	(7,954)
Preferred stock dividend	1,372		1,372
Net income (loss) attributable to Rosehill Resources Inc.	$ (457)	$ (3,015)	$ 3,957	$ (7,954)
Earnings (loss) per common share
Basic (in dollars per share)	$ (0.08)	$ (0.51)	$ 0.68	$ (1.36)
Diluted (in dollars per share)	$ (0.08)	$ (0.51)	$ 0.68	$ (1.36)
Weighted average common shares outstanding
Basic (in shares)	5,857	5,857	5,857	5,857
Diluted (in shares)	5,857	5,857	5,857	5,857

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY/PARENT NET INVESTMENT (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Preferred Stock [Member]	Common Class A [Member]	Common Class B [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total Common Stockholders' Equity [Member]	Noncontrolling Interest [Member]	Parent Net Investment [Member]	Total
Balance at beginning at Dec. 31, 2016								$ 65,220	$ 65,220
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distribution to Parent								2,267	(2,267)
Distribution to Parent (in shares)
Net Income (Loss)					(457)	(457)	(2,329)	4,414	1,628
Effect of the Transaction:
Issuance of preferred stock and warrants	$ 77,294			13,486		13,486			90,780
Issuance of preferred stock and warrants (in shares)	95,000
Proceeds and shares obtained in the Transaction		$ 1	$ 3	7,474		7,478	78,604	(67,367)	18,715
Proceeds and shares obtained in the Transaction (in shares)		5,856,579	29,807,692
Distribution to Noncontrolling interest							(40,487)		(40,487)
Preferred stock dividend paid in kind	$ 1,372								1,372
Preferred stock dividend paid in kind (in shares)	1,372
Balance at end at Jun. 30, 2017	$ 78,666	$ 1	$ 3	$ 20,960	$ (457)	$ 20,507	$ 35,788		$ 134,961
Balance at end (in shares) at Jun. 30, 2017	96,372	5,856,579	29,807,692

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net income (loss)	$ 3,000	$ (7,954)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion	17,767	10,638
Deferred income taxes	273
Gain on sale of other assets	(11)
(Gain) loss on derivative instruments	(2,827)	3,104
Net cash received (paid) in settlement of derivative instruments	(458)	387
Amortization of debt issuance costs	130	56
Settlement of asset retirement obligations	(596)	(46)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable and accounts receivable, related parties	(726)	(769)
(Increase) decrease in inventory	115	(2)
(Increase) decrease in prepaid and other current assets	(907)	70
Increase (decrease) in accounts payable and accrued liabilities and other	1,359	(4,587)
Increase (decrease) in accounts payable, related parties	(236)	(297)
Net cash provided by operating activities	16,883	600
Cash flows from investing activities
Additions to oil and natural gas properties	(38,745)	(7,213)
Acquisition of mineral interests	(6,500)
Additions to other property and equipment	(128)	(124)
Proceeds from sale of other property and equipment	47
Net cash used in investing activities	(45,326)	(7,337)
Cash flows from financing activities
Proceeds from revolving credit facility	20,000
Repayment on revolving credit facility	(55,000)
Repayments of long term debt		(12,000)
Proceeds from issuance of preferred stock and warrants, net	90,780
Net proceeds from the Transaction	18,715
Distribution to noncontrolling interest	(40,487)
Distribution to parent	(2,267)	(528)
Debt issuance costs	(659)
Payments on capital lease obligation	(15)	(13)
Net cash used in financing activities	31,067	(12,541)
Net decrease in cash and cash equivalents	2,624	(19,278)
Cash and cash equivalents, beginning of period	8,434	27,734
Cash and cash equivalents, end of period	11,058	8,456
Supplemental disclosures
Cash paid for interest	27	36
Asset retirement obligations incurred	312
Changes in accrued capital expenditures	5,717	933
Series A Preferred Stock dividend paid-in-kind	$ 1,372

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Note 1 – Nature of Operations Rosehill Resources Inc. (the “Company” or “Rosehill”) is an independent oil and natural gas company focused on the exploration, development, acquisition and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin as well as the Fort Worth Basin. The Company was incorporated in Delaware on September 21, 2015 as a special purpose acquisition company under the name of KLR Energy Acquisition Corporation (“KLRE”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving the Company and one or more businesses. On April 27, 2017, the Company consummated a reverse recapitalization (the “Transaction”) pursuant to which the Company acquired a portion of the equity of Rosehill Operating Company, LLC (“Rosehill Operating”), into which Tema Oil & Gas Company (“Tema”), a wholly-owned subsidiary of Rosemore, Inc. (“Rosemore”), contributed certain assets and liabilities. At the closing of the Transaction, the Company became the sole managing member of Rosehill Operating and the Company’s sole material asset is its interest in Rosehill Operating. Following the Transaction, the Company changed its name to Rosehill Resources Inc. As the sole managing member of Rosehill Operating, the Company, through its officers and directors, is responsible for all operational and administrative decision-making and control of all of the day-to-day business affairs of Rosehill Operating without the approval of any other member, unless specified in the Amended and Restated Limited Liability Company Agreement of Rosehill Operating (the “LLC Agreement”). Basis of Presentation The Company consists of Rosehill Resources Inc. and its consolidated subsidiary Rosehill Operating. Pursuant to the Transaction described in Note 2 - Transaction Because Tema has effective control of the combined company after the Transaction through its majority voting interest in both the Company and Rosehill Operating, this transaction was accounted for as a reverse recapitalization. Although the Company was the legal acquirer, Rosehill Operating was the accounting acquirer. As a result, t he reports filed by the Company subsequent to the Transaction are prepared “as if” Rosehill Operating is the predecessor and legal successor to the Company. t All periods prior to the date of the Transaction shown in the accompanying unaudited condensed consolidated financial statements have been prepared on a “carve-out” basis and are derived from the accounting records of Tema. The accompanying unaudited condensed consolidated financial statements prior to the Transaction include direct expenses related to Rosehill Operating and expense allocations for certain functions of Tema including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, insurance, utilities, and compensation. These expenses have been allocated on the basis of direct usage when identifiable, actual volumes and revenues, with the remainder allocated proportionately on a barrel of oil equivalent (“Boe”) basis. Management considers the basis on which the expenses have been allocated to reasonably reflect the utilization of services provided to or the benefit received by Rosehill Operating during the periods presented. The allocations may not, however, reflect the expenses that would have been incurred as an independent company for the periods presented. Actual costs that may have been incurred prior to the Transaction would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. The allocations and related estimates and assumptions are described more fully in Note 14 – Transactions with Related Parties. The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain notes and other information have been condensed or omitted. condensed audited financial statements for the year ended December 31, 2016 Variable Interest Entities Rosehill Operating is a variable interest entity (“VIE”). The Company determined that it is the primary beneficiary of Rosehill Operating as the Company is the sole managing member and has the power to direct the activities most significant to Rosehill Operating’s economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At June 30, 2017, the Company had approximately 16% economic interest in Rosehill Operating and 100% of Rosehill Operating’s assets and liabilities and results of operations are consolidated in the Company’s unaudited condensed consolidated financial statements contained herein. At June 30, 2017, Tema had approximately 84% economic interest in Rosehill Operating; however, Tema has disproportionally fewer voting rights, and is shown as a noncontrolling interest holder of Rosehill Operating. For further discussion see Noncontrolling Interest Stockholder’s Equity. Use of Estimates The preparation of unaudited condensed Income Taxes

Transaction

Transaction	6 Months Ended
	Jun. 30, 2017
Transaction
Transaction	Note 2 - Transaction On April 27, 2017, upon consummation of the Transaction, the Company acquired a portion of the common units of Rosehill Operating for (i) the contribution to Rosehill Operating by the Company of $35.0 million in cash, excluding the working capital adjustment, (the “Cash Consideration”) and for the issuance to Rosehill Operating by the Company of 29,807,692 shares of its Class B Common Stock, (ii) the assumption by Rosehill Operating of $55.0 million in Tema indebtedness and (iii) the contribution to Rosehill Operating by the Company of the remaining cash proceeds of the Company’s initial public offering net of redemptions of approximately $60.6 million. In connection with the closing of the Transaction, the Company issued to Rosehill Operating 4,000,000 warrants exercisable for shares of its Class A Common Stock (the “Tema warrants”) in exchange for 4,000,000 warrants exercisable for Rosehill Operating Common Units (the “Rosehill warrants”). The Cash Consideration, estimated working capital adjustment, Tema warrants and shares of Class B Common Stock were immediately distributed to Tema. In connection with the Transaction, the Company issued and sold 75,000 shares of its 8% Series A Cumulative Perpetual Convertible Preferred Stock (the “Series A Preferred Stock”) and 5,000,000 warrants in a private placement to certain qualified institutional buyers and accredited investors (the “PIPE Investors”) for net proceeds of $70.8 million (the “PIPE Investment”). The Company issued an additional 20,000 shares of Series A Preferred Stock to Rosemore Holdings, Inc. (wholly owned subsidiary of Rosemore) and KLR Energy Sponsor, LLC (the “Sponsor”) in connection with the closing of the Transaction for net proceeds of $20.0 million. The Company contributed the net proceeds from the PIPE Investment and from the issuance of 20,000 shares of Series A preferred stock to Rosemore Holdings, Inc. and the Sponsor to Rosehill Operating in exchange for Rosehill Operating Series A preferred units and additional Rosehill warrants. Of these proceeds, $55.0 million was used to retire the indebtedness assumed by Rosehill Operating. Net cash provided by the Company upon consummation of the Transaction was $109.5 million which consisted of $90.8 million of net proceeds from the sale of Series A Preferred Stock and $18.7 million from the sale of common shares prior to the Transaction, net of redemptions and offering and transaction costs.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recently Issued Accounting Standards	Note 3 – Summary of Significant Accounting Policies and Recently Issued Accounting Standards The significant accounting policies followed by the Company are set forth in Note 3 – Summary of Significant Accounting Policies Recently Issued Accounting Standards The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date , Revenue from Contracts with Customers Topic 605, Revenue Recognition Subtopic 932-605, Extractive Activities – Oil and Gas – Revenue Recognition Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow – Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 320): Classification of Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Other Income Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Accounting Changes and Error Corrections In May 2017, the FASB issued ASU, 2017-09 – Compensation – Stock Compensation (Topic 718); Scope of Modification Accounting. In July 2017, the FASB issued ASU. 2017-11— Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception .

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings (loss) per common share
Earnings Per Share	Note 4 – Earnings Per Share The Transaction was structured as a reverse recapitalization by which the Company issued stock for the net assets of Rosehill Operating accompanied by a recapitalization. Earnings per share has been recast for all historical periods to reflect the Company’s capital structure for all comparative periods. The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands, except per share data) Income (numerator): Basic: Net income (loss) to Rosehill Resources Inc. $ (457 ) (3,015 ) $ 3,957 (7,954 ) Diluted: Net income (loss) to Rosehill Resources Inc. $ (457 ) (3,015 ) $ 3,957 (7,954 ) Weighted average shares (denominator): Weighted average shares basic and diluted 5,857 5,857 5,857 5,857 Basic earnings per share $ (0.08 ) (0.51 ) $ 0.68 (1.36 ) Diluted earnings per share $ (0.08 ) (0.51 ) $ 0.68 (1.36 ) For the periods presented, the Company excluded 8.3 million shares of common stock issuable upon conversion of the Company’s Series A Preferred Stock and 25.6 million warrants in calculating diluted earnings per share, as the effect was anti-dilutive.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Accounts Receivable	Note 5 – Accounts Receivable Accounts receivable is comprised of the following: (in thousands) June 30, December 31, Revenue receivable $ 1,408 $ 1,291 Joint interest billings 599 557 Other 47 80 Accounts receivable $ 2,054 $ 1,928

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 6 – Derivative Instruments Various derivative instruments have been entered into to mitigate a portion of the exposure to potentially adverse market changes in commodity prices, market interest rates and associated impact on cash flows. All contracts are entered into for other-than-trading purposes. Tema’s interest rate swap was terminated by Tema on April 20, 2017. At the closing of the Transaction a portion of crude oil options and natural gas options remained with Tema and the remainder was transferred to the Company. A portion of crude oil swaps and natural gas swaps were also transferred to the Company as part of the Transaction with the remainder being transferred to the Company by July 2017. The fair value of the derivative assets and liabilities is as follows as of the respective dates: (in thousands) June 30, December 31, Derivative assets Commodity derivative options $ 74 $ 21 Commodity derivative swaps 1,835 — Interest rate swap — 226 Total $ 1,909 $ 247 Derivative liabilities Commodity derivative swaps $ — 1,856 As of June 30, 2017, the open commodity derivative positions with respect to future production were as follows: 2017 2018 Commodity derivative swaps Oil: Notional volume (Barrels) 153,000 90,000 Weighted average price ($/Barrel) $ 54.18 $ 53.45 Natural Gas: Notional volume (MMBtu) 780,000 630,000 Weighted average price ($/MBtu) $ 3.12 $ 3.47 Commodity derivative options Oil: Notional volume (Barrels) 45,000 — Weighted average price ($/Barrel) $ 48.33 $ — Natural Gas: Notional volume (MMBtu) 540,000 — Weighted average price ($/MBtu) $ 3.29 $ — For the three and six months ended June 30, 2017 and 2016, the effect of the derivative activity on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended June 30 Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Realized gain (loss) on derivatives Commodity derivative options $ — $ (720 ) $ 154 $ (14 ) Commodity derivative swaps (15 ) 822 (463 ) 822 Total (15 ) 102 (309 ) 808 Interest rate swap 1 (190 ) (149 ) (421 ) Total realized gain (loss) on derivatives (14 ) (88 ) (458 ) 387 Unrealized gain (loss) on derivatives Commodity derivative options $ 143 $ (939 ) $ 305 $ (1,489 ) Commodity derivative swaps 1,175 (1,081 ) 3,206 (1,220 ) Total 1,318 (2,020 ) 3,511 (2,709 ) Interest rate swap (226 ) (134 ) (226 ) (781 ) Total unrealized gain (loss) on derivatives $ 1,092 $ (2,154 ) $ 3,285 $ (3,490 ) The gains and losses resulting from the cash settlement and mark-to-market of the commodity derivatives are included within “Other income (expense)” in the Condensed Consolidated Statements of Operations. The gains and losses resulting from the cash settlement and mark-to-market of the interest rate swap are included in “Interest expense” in the Condensed Consolidated Statements of Operations.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7 – Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed within the following fair value hierarchy: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis, such as commodity options. Level 2 – Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset of liability. This category includes those derivative instruments that are valued using observable market data, such as derivatives related to interest rate swaps. Level 3 – Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources. Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment, such as commodity swaps. Observable data is considered to be market data if it is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, provided by multiple, independent sources that are actively involved in the relevant market. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level with the fair value hierarchy is based on lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. However, the determination of what constitutes “observable” requires significant judgment. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the perceived risk of that investment. Fair Value of Financial Instruments The financial instruments measured at fair value on a recurring basis consist of the following: June 30, December 31, (in thousands) 2017 2016 Derivative instruments: Derivative assets $ 1,909 $ 247 Derivative liabilities — (1,856 ) Total recurring fair value measurement, net $ 1,909 $ (1,609 ) Derivative assets and liabilities represent unrealized amounts related to the derivative positions within current assets and current liabilities on the Condensed Consolidated Balance Sheets. The tables below set forth by level within the fair value hierarchy the gross components of the assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016. These gross balances are intended solely to provide information on sources of inputs to fair value and proportions of fair value involving objective versus subjective valuations and do not represent either the actual credit exposure or net economic exposure. June 30, 2017 (in thousands) Level 1 Level 2 Level 3 Total Derivative assets $ — $ 1,909 $ — $ 1,909 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Derivative assets $ 21 $ 226 $ — $ 247 Derivative liabilities (1,856 ) — — (1,856 ) Total derivative assets (liabilities) $ (1,835 ) $ 226 $ — $ (1,609 ) Financing Arrangements The fair value measurements for the Credit Agreement represent Level 2 inputs. Based on the average of certain imputed interest rates, the book value of the Tema Credit Agreement (see Note 11 – Revolving Credit Facility Non-Financial Assets and Liabilities Non-financial assets and liabilities that are initially measured at fair value are comprised of asset retirement obligations and the corresponding increase to the related long-lived asset and are not remeasured at fair value in subsequent periods. Such initial measurements are classified as Level 3 since certain significant unobservable inputs are utilized in their determination. The fair value of additions to ARO liability and certain changes in the estimated fair value of the liability are measured using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs to the valuation include (i) estimated plug and abandonment cost per well based on historical experience and information from third-party vendors; (ii) estimated remaining life per well; (iii) future inflation factors; and (iv) average credit-adjusted risk-free rate. These inputs require significant judgments and estimates by management at the time of the valuation and are the most sensitive and subject to change. If the carrying amount of oil and natural gas properties exceeds the estimated undiscounted future cash flows, the carrying amount of the oil and natural gas properties will be adjusted to the fair value. The fair value of oil and natural gas properties is determined using valuation techniques consistent with the income and market approach. The factors used to determine fair value are subject to management’s judgment and expertise and include, but are not limited to, (i) recent sales prices of comparable properties; (ii) the present value of future cash flows, net of estimated operating and development costs using estimates of proved oil and natural gas reserves; (iii) future commodity prices; (iv) future production estimates; (v) anticipated capital expenditures; and (vi) various discount rates commensurate with the risk and current market conditions associated with the projected cash flows. These assumptions represent “Level 3” inputs.

Property and equipment

Property and equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and equipment	Note 8 – Property and equipment Property and equipment is comprised of the following: June 30, December 31, (in thousands) 2017 2016 Proved oil and natural gas properties $ 312,368 $ 258,530 Unproved oil and natural gas properties 533 1,942 Land 406 1,561 Other property and equipment 3,566 3,807 Total property and equipment 316,873 265,840 Less: accumulated DD&A (1) (159,802 ) (142,467 ) Property and equipment, net $ 157,071 123,373 (1) Accumulated Depreciation, Depletion and Amortization (“DD&A”) of oil and natural gas properties including impairment, is 139.8 million as of June 30, 2017 and December 31, 2016 . DD&A expense related to oil and natural gas properties was $9.4 million and $5.5 million for the three months ended June 30, 2017 and 2016, respectively and $17.5 million and $10.5 million for the six months ended June 30, 2017 and 2016, respectively. Depreciation and amortization expense related to other property and equipment was for the In the second quarter of 2017, Rosehill Operating completed the purchase of additional working interests in various operated wells and leasehold interests leasehold interests in Loving County, Texas, from unaffiliated individuals and entities for total consideration of $6.5 million, which approximates fair value. The effective date of the purchase of the working interests was May 1, 2017. The acquisition was accounted for using the guidance in ASC Topic 805, “Business Combinations”.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 9 – Asset Retirement Obligations The change in asset retirement obligations (“ARO”) for the six month period ended June 30, 2017 is set forth below: ( In thousands) 2017 Balance at January 1, $ 5,431 Liabilities incurred 312 Liabilities settled (596 ) Accretion expense 133 Balance at June 30, 5,280 Less: current portion (344 ) Long term $ 4,936

Accrued Liabilities and Other

Accrued Liabilities and Other	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Liabilities and Other	Note 10 –Accrued Liabilities and Other Accrued liabilities and other is comprised of the following as of the respective dates: June 30, December 31, (in thousands) 2017 2016 Accrued payroll $ 352 $ 948 Accrued legal and professional fees 1,006 223 Production taxes 140 120 Royalties payable 1,860 2,494 Advances from joint owners 113 219 Deferred rent 137 138 Asset retirement obligations, current 344 251 Accrued lease operating expense 307 — Accrued capital expenditures 8,160 2,443 Other 1,197 399 Total $ 13,616 $ 7,235

Revolving Credit Facility

Revolving Credit Facility	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Revolving Credit Facility	Note 11 – Revolving Credit Facility Credit Agreement On April 27, 2017, Rosehill Operating and PNC Bank, National Association, as lender, Administrative Agent and Issuing Bank, and each of the lenders from time to time party thereto (collectively, the “Lenders”) entered into a credit agreement, which provides Rosehill Operating with a revolving line of credit and a letter of credit facility of up to $250 million (“the Credit Agreement”), subject to a borrowing base that is determined semi-annually by the Lenders based upon Rosehill Operating’s financial statements and the estimated value of its oil and gas properties, in accordance with the Lenders’ customary practices for oil and gas loans. Such redetermined borrowing base will become effective and applicable to Rosehill Operating and the Lenders on or about April 1st and October 1st of each year, as applicable, commencing October 1, 2017. Rosehill Operating and the Lenders may each request an additional redetermination of the borrowing base once between two successive scheduled redeterminations. The borrowing base will be automatically reduced upon the issuance or incurrence of debt under senior unsecured notes or upon Rosehill Operating’s or any of its subsidiary’s disposition of properties or liquidation of hedges in excess of certain thresholds. Amounts borrowed under the Credit Agreement may not exceed the borrowing base. Rosehill Operating’s initial borrowing base is $55.0 million, which may be increased with the consent of all Lenders. The Credit Agreement also does not permit Rosehill Operating to borrow funds if at the time of such borrowing Rosehill Operating is not in pro forma compliance with the financial covenants. Additionally, Rosehill Operating’s borrowing base may be reduced in connection with the subsequent redetermination of the borrowing base. The amounts outstanding under the Credit Agreement are secured by first priority liens on substantially all of Rosehill Operating’s oil and natural gas properties and associated assets and all of the stock of Rosehill Operating’s material operating subsidiaries that are guarantors of the Credit Agreement. If an event of default occurs under the Credit Agreement, the Lenders have the right to proceed against the pledged capital stock and take control of substantially all of Rosehill Operating and Rosehill Operating’s material operating subsidiaries that are guarantors’ assets. Borrowings under the Credit Agreement will bear interest at a base rate plus an applicable margin ranging from 1.00% to 2.00% or at London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 2.00% to 3.00%. The Credit Agreement matures on April 27, 2022. The amount outstanding at June 30, 2017 under the Credit Agreement is $20.0 million with a weighted average interest rate of 3.2 %. The Credit Agreement contains various affirmative and negative covenants. These covenants may limit Rosehill Operating’s ability to, among other things: incur additional indebtedness; make loans to others; make investments; enter into mergers; make or declare dividends or distributions; enter into commodity hedges exceeding a specified percentage of Rosehill Operating’s expected production; enter into interest rate hedges exceeding a specified percentage of Rosehill Operating’s outstanding indebtedness; incur liens; sell assets; and engage in certain other transactions without the prior consent of the Lenders. The Credit Agreement also requires Rosehill Operating to maintain the following financial ratios: (1) a working capital ratio, which is the ratio of consolidated current assets (including unused commitments under the Credit Agreement, but excluding non-cash assets) to consolidated current liabilities (excluding non-cash obligations, reclamation obligations to the extent classified as current liabilities and current maturities under the Credit Agreement), of not less than 1.0 to 1.0, and (2) a leverage ratio, which is the ratio of the sum of all of Rosehill Operating’s Total Funded Debt to EBITDAX (as such terms are defined in the Credit Agreement) for the four fiscal quarters then ended, of not greater than 4.00 to 1.00. We were in compliance with the financial covenants in the Credit Facility agreement for the measurement period ended June 30, 2017. Tema Credit Agreement In December 2012, Tema entered into a secured line of credit with a bank for $60.0 million (the “Tema Credit Agreement”), with an optional expansion to $75.0 million, subject to satisfactory credit underwriting. Borrowings under the Tema Credit Agreement bore interest at floating LIBOR plus 1.00% (the Applicable Margin), and was collateralized by the existing producing oil and natural gas properties. There was no principal amortization required until the expiration of the Tema Credit Agreement, when all outstanding amounts became due. Upon the closing of the Transaction on April 27, 2017, the $55.0 million outstanding balance under the Tema Credit Agreement was assumed by Rosehill Operating and immediately paid off using proceeds from the issuance of equity in the recapitalization. Concurrent with the initial drawdown of the Tema Credit Agreement, an interest rate swap was entered into with a bank to fix the interest rate of the Tema Credit Agreement. In anticipation of the closing of the Transaction on April 20, 2017, the interest rate swap was terminated by Tema. Deferred Financing Costs Deferred financing costs incurred in connection with securing the Credit Agreement were $0.6 million and at June 30, 2017, the net balance of $0.6 million was included in other long term assets in the condensed consolidated balance sheet.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 – Income Taxes The Company’s sole material asset is Rosehill Operating, which is treated as a partnership for U.S. federal income tax purposes and for purposes of certain state and local income taxes. Rosehill Operating’s net taxable income and any related tax credits are passed through to its members and are included in the members’ tax returns, even though such net taxable income or tax credits may not have actually been distributed. While the Company consolidates Rosehill Operating for financial reporting purposes, the Company will be taxed on its share of future earnings not attributed to the noncontrolling interest holder, Tema, which will continue to bear its share of income tax on future earnings. The income tax burden on the earnings taxed to the noncontrolling interest is not reported by the Company in its condensed consolidated financial statements under GAAP. As a result, the Company’s effective tax rate is expected to differ materially from the statutory rate. The Company currently estimates its annual effective income tax rate to be 5%. No current or deferred income tax liability is recorded as a result of the Transaction since its legal form (an investment in a newly created entity taxed as a pass-through partnership for U.S. federal income tax purposes) is treated as a purchase of property such that the Company did not assume an existing tax obligation on the purchased assets. The Company expects that the excess of its tax basis in its investment in Rosehill Operating over its book carrying value in this investment resulting from the equity shift from the Transaction will reduce certain income tax payments in the future. Any tax benefit from the Transaction will not cause a reduction in the effective tax rate of the Company, but will be credited to additional paid in capital when recognized. In connection with the Transaction the Company entered into a Tax Receivable Agreement (“TRA“) with the noncontrolling interest holder, Tema, which provides for the payment by the Company to Tema of 90% of the net cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the closing of the Transaction as a result of (i) any tax basis increases in the assets of Rosehill Operating resulting from the distribution to Tema of the cash consideration, the shares of Class B common stock and warrants and the assumption of Tema liabilities in connection with the Transaction, (ii) the tax basis increases in the assets of Rosehill Operating resulting from the redemption by Rosehill Operating or the exchange by the Company, as applicable, of Rosehill Operating Common Units for Class A common stock or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the TRA. No liability under the TRA has been recognized in the accompanying condensed consolidated balance sheet. In the future, if and when Tema exercises its right to cause Rosehill Operating to redeem all or a portion of its Rosehill Operating Common Units, a liability under the TRA will be recorded based on 90% of the estimated future cash tax savings that the Company will realize as a result of increases in the basis of the assets of Rosehill Operating attributed to the Company as a result of such redemption. The amount of the increase in asset basis, the related estimated cash tax savings and the attendant TRA liability to be recorded will depend on the price of the Company’s Class A common stock at the time of the relevant redemption. Due to the uncertainty surrounding the amount and timing of future redemptions of Rosehill Operating Common Units by Tema, the Company does not believe it is appropriate to record a TRA liability until such time that Tema exercises its right to cause Rosehill Operating common units to be redeemed or converted into the Company’s Class A common shares or cash. Though the Company has not yet completed its analysis of the tax treatment for certain costs associated with the Transaction, the Company does not anticipate a material increase in the tax basis of Rosehill Operating assets in connection with the distribution to the noncontrolling interest holder of cash consideration, shares of Class B common stock and warrants and the assumption of liabilities or other costs in connection with the Transaction; therefore, no liability associated with the TRA is reflected in the condensed consolidated financial statements. The Company is treated as acquiring a net operating loss carryover of approximately $400,000 in the Transaction. This deferred tax asset is offset by a valuation allowance such that no net deferred tax assets are presently recorded on the financial statements, as the Company does not presently believe that the deferred tax assets are more likely than not realizable. The effects of uncertain tax positions are recognized in the condensed consolidated financial statements if these positions meet a “more-likely-than-not” threshold. For those uncertain tax positions that are recognized in the condensed consolidated financial statements, liabilities are established to reflect the portion of those positions it cannot conclude “more-likely-than-not” to be realized upon ultimate settlement. As of June 30, 2017. no uncertain tax positions were recognized as liabilities in the condensed consolidated financial statements. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity / Parent Net Investment
Stockholders' Equity	Note 13 – Stockholders’ Equity The following description summarizes the material terms and provisions of the securities that the Company has authorized. For the complete terms of these securities, refer to the Company’s amended and restated certificate of incorporation, and bylaws, which are incorporated by reference into this Form 10-Q. Prior to the Transaction, KLRE was a shell company with no operations, formed as a vehicle to effect a business combination with one or more operating businesses. After the closing of the Transaction, the Company became a holding company whose sole material asset consists of its interest in Rosehill Operating. The following table summarizes the changes in the outstanding preferred stock, common stock and Class A common stock warrants through the date of the Transaction. Series A Preferred Stock Class A Common Stock Class B Common Stock Class F Common Stock Total Class A Common Stock Warrants Issued at formation — 588,276 — 4,312,500 4,900,776 588,276 Issued at IPO — 7,597,044 — — 7,597,044 7,597,044 Issued in connection with private placement — — — — — 8,408,838 Forfeitures/Cancellation of founder shares — — — (2,266,170 ) (2,266,170 ) — Conversion of founder shares — 3,475,663 — (2,046,330 ) 1,429,333 — Redemption of Class A shares — (5,804,404 ) — — (5,804,404 ) — Issued to Tema in connection with the Transaction — — 29,807,692 — 29,807,692 4,000,000 Preferred stock and warrants issued to PIPE Investors 95,000 — — — — 5,000,000 Outstanding at the Transaction date 95,000 5,856,579 29,807,692 — 35,664,271 25,594,158 Class A Common Stock. In connection with the Transaction, the Company distributed approximately $60.6 million of the cash proceeds from the Company’s initial public offering to redeem approximately 5.8 million shares of Class A common stock, which shares were then cancelled by the Company. Cash transferred to Rosehill Operating, net of transaction expenses incurred in connection with the Transaction, was $18.7 million. Class B Common Stock. Holders of Class B common stock, generally have the right to cause the Company to redeem all or a portion of their stock in exchange for shares of the Company's Series A common stock on a one-to-one basis or, at the Company's option, an equivalent amount of cash. The Company may, however, at its option, affect a direct exchange of cash or Class A common stock for such Rosehill Operating common units in lieu of such a redemption. Upon the future redemption or exchange of Rosehill Operating common units, a corresponding number of shares of Class B common stock will be canceled. In the Transaction, the Company issued to Rosehill Operating 29,807,692 shares of its Class B common stock and 4,000,000 warrants exercisable for shares of its Class A common stock in exchange for 4,000,000 warrants exercisable for Rosehill Operating common units. Rosehill Operating immediately distributed the warrants and shares of Class B common stock to Tema. Class F Common Stock. The 2,046,330 remaining Founder Shares represented 20.0% of the outstanding shares upon the completion of the IPO. On April 28, 2017, all of the outstanding Founder Shares were automatically converted into 3,475,663 shares of Class A common stock in connection with the Transaction. As used herein, unless the context otherwise requires, the “Founder Shares” are deemed to include the shares of Class A common stock issued upon conversion thereof and such converted shares continue to be subject to certain transfer restrictions. 8% Series A Cumulative Perpetual Convertible Preferred Stock. The Company contributed the net proceeds of $70.8 million ($75.0 million gross proceeds, net of $4.2 million in equity issuance costs) from its issuance of 75,000 shares of Series A Preferred Stock and 5,000,000 warrants (the “PIPE Warrants”), exercisable for shares of Class A common stock, to Rosehill Operating. The net proceeds from the issuance of these preferred shares and warrants was attributed to the preferred stock and warrants (reflected in additional paid-in capital in the accompanying condensed consolidated balance sheet) issued to the PIPE Investors based on the fair value of those securities using the closing price of the Class A common stock and the warrants on April 27, 2017. The residual proceeds were attributed to the value of the preferred stock in the accompanying condensed consolidated balance sheet because there was and is no quoted prices in active markets for those securities. Rosemore and the Sponsor backstopped redemptions by the public stockholders of the Company once 30% of the outstanding shares of Class A common stock were redeemed by purchasing 20,000 shares of Series A Preferred Stock for net proceeds of $20.0 million pursuant to a side letter entered into between Rosemore, the Sponsor and the Company. The Company contributed the net proceeds from the issuance of 20,000 shares of Series A Preferred Stock to Rosemore Holdings, Inc. and the Sponsor to Rosehill Operating. The Company’s Board of Directors declared a dividend on the Series A Preferred Stock on June 29, 2017, which was paid in-kind through the issuance of 1,372 shares of Series A preferred stock on July 15, 2017. Warrants. There were 588,276 warrants issued in connection with the formation of the Company and 7,597,044 public warrants issued in connection with KLRE’s IPO. Additionally, there were 8,408,838 warrants issued to the Sponsor and EarlyBirdCapital Inc. pursuant to a private placement (the “Private Placement Warrants”) in connection with the Company’s initial public offering (including the Class A common stock issuable upon exercise of the Private Placement Warrants). The Private Placement Warrants will not be redeemable by the Company and will be exercisable on a cashless basis so long as they are held by the initial holders or their permitted transferees. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the warrants described above. If the Private Placement Warrants are held by holders other than the initial holders or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the warrants described above. In connection with the closing of the Transaction, the Company issued 5,000,000 warrants to the PIPE Investors and 4,000,000 warrants to Tema. These warrants were issued on the same terms, and are subject to the same rights and obligations, as described above. At June 30, 2017, there were 25,594,158 warrants outstanding. Noncontrolling Interest. Long Term Incentive Plan

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Transactions with Related Parties	Note 14 – Transactions with Related Parties The Company is not entitled to compensation for its services as managing member of Rosehill Operating. The Company is entitled to reimbursement by Rosehill Operating for any costs, fees or expenses incurred on behalf of Rosehill Operating (including costs of securities offerings not borne directly by members, board of directors’ compensation and meeting costs, cost of periodic reports to its stockholders, litigation costs and damages arising from litigation, accounting and legal costs); provided that the Company will not be reimbursed for any of its income tax obligations. Rosemore. Gateway Gathering and Marketing (‘Gateway”) During the three and six months ended June 30, 2017, approximately $0.3 million and $0.5 million, respectively, was incurred related to a marketing and gathering agreement with Gateway compared to approximately $0.2 million and $0.4 million, during the three and six months ended June 30, 2016, respectively. As of June 30, 2017 and December 31, 2016, the payable due to Gateway related to this agreement was approximately $0.2 million and $0.3 million, respectively. Certain consulting services are provided to Gateway, and for each of the three and six months ended June 30, 2017 and three and six months ended June 30, 2016, Gateway was invoiced amounts less than $0.1 million related to these services, which were recorded in general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. Certain other general and administrative services are also provided to Gateway, for which Gateway was invoiced approximately $0.1 million in the three months ended June 30 2016 and was invoiced approximately $0.1 million and $0.2 million in six months ended June 30 2017, and June 30, 2016, respectively. As of June 30, 2017 and December 31, 2016, the receivable due from Gateway related to these services was approximately $0.1 million and $0.3 million, respectively. Transaction expenses. Under the terms of the Transaction, the Company reimbursed Tema and Rosemore $1.6 million and $2.4 million, respectively, on April 27, 2017, for costs incurred in connection with the Transaction. Distributions. Cost Allocations Where costs incurred related to Rosehill Operating could not be determined by specific identification, the costs are primarily allocated proportionately on a Boe basis. Management believes these allocations are a reasonable reflection of the utilization of services provided. However, the allocations may not fully reflect the expense that would have been incurred had the assets that were contributed by Tema in the Transaction been a stand-alone company. Transition Service Agreement

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15 – Commitments and Contingencies Legal Environmental Matters Rights of Securities Holders Rosehill Operating Common Unit Redemption Right Maintenance of One-to-One Ratios.

Nature of Operations (Policies)

Nature of Operations (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company consists of Rosehill Resources Inc. and its consolidated subsidiary Rosehill Operating. Pursuant to the Transaction described in Note 2 - Transaction Because Tema has effective control of the combined company after the Transaction through its majority voting interest in both the Company and Rosehill Operating, this transaction was accounted for as a reverse recapitalization. Although the Company was the legal acquirer, Rosehill Operating was the accounting acquirer. As a result, t he reports filed by the Company subsequent to the Transaction are prepared “as if” Rosehill Operating is the predecessor and legal successor to the Company. t All periods prior to the date of the Transaction shown in the accompanying unaudited condensed consolidated financial statements have been prepared on a “carve-out” basis and are derived from the accounting records of Tema. The accompanying unaudited condensed consolidated financial statements prior to the Transaction include direct expenses related to Rosehill Operating and expense allocations for certain functions of Tema including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, insurance, utilities, and compensation. These expenses have been allocated on the basis of direct usage when identifiable, actual volumes and revenues, with the remainder allocated proportionately on a barrel of oil equivalent (“Boe”) basis. Management considers the basis on which the expenses have been allocated to reasonably reflect the utilization of services provided to or the benefit received by Rosehill Operating during the periods presented. The allocations may not, however, reflect the expenses that would have been incurred as an independent company for the periods presented. Actual costs that may have been incurred prior to the Transaction would depend on a number of factors, including the organizational structure, whether functions were outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure. The allocations and related estimates and assumptions are described more fully in Note 14 – Transactions with Related Parties. The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain notes and other information have been condensed or omitted. condensed audited financial statements for the year ended December 31, 2016
Variable Interest Entities	Variable Interest Entities Rosehill Operating is a variable interest entity (“VIE”). The Company determined that it is the primary beneficiary of Rosehill Operating as the Company is the sole managing member and has the power to direct the activities most significant to Rosehill Operating’s economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At June 30, 2017, the Company had approximately 16% economic interest in Rosehill Operating and 100% of Rosehill Operating’s assets and liabilities and results of operations are consolidated in the Company’s unaudited condensed consolidated financial statements contained herein. At June 30, 2017, Tema had approximately 84% economic interest in Rosehill Operating; however, Tema has disproportionally fewer voting rights, and is shown as a noncontrolling interest holder of Rosehill Operating. For further discussion see Noncontrolling Interest Stockholder’s Equity.
Use of Estimates	Use of Estimates The preparation of unaudited condensed

Summary of Significant Accoun23

Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date , Revenue from Contracts with Customers Topic 605, Revenue Recognition Subtopic 932-605, Extractive Activities – Oil and Gas – Revenue Recognition Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow – Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 320): Classification of Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Other Income Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Accounting Changes and Error Corrections In May 2017, the FASB issued ASU, 2017-09 – Compensation – Stock Compensation (Topic 718); Scope of Modification Accounting. In July 2017, the FASB issued ASU. 2017-11— Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings (loss) per common share
Schedule of basic and diluted weighted average shares outstanding and earnings per share	The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands, except per share data) Income (numerator): Basic: Net income (loss) to Rosehill Resources Inc. $ (457 ) (3,015 ) $ 3,957 (7,954 ) Diluted: Net income (loss) to Rosehill Resources Inc. $ (457 ) (3,015 ) $ 3,957 (7,954 ) Weighted average shares (denominator): Weighted average shares basic and diluted 5,857 5,857 5,857 5,857 Basic earnings per share $ (0.08 ) (0.51 ) $ 0.68 (1.36 ) Diluted earnings per share $ (0.08 ) (0.51 ) $ 0.68 (1.36 )

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Schedule of Accounts receivable	Accounts receivable is comprised of the following: (in thousands) June 30, December 31, Revenue receivable $ 1,408 $ 1,291 Joint interest billings 599 557 Other 47 80 Accounts receivable $ 2,054 $ 1,928

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative assets and liabilities	The fair value of the derivative assets and liabilities is as follows as of the respective dates: June 30, December 31, (in thousands) 2017 2016 Derivative assets Commodity derivative options $ 74 $ 21 Commodity derivative swaps 1,835 — Interest rate swap — 226 Total $ 1,909 $ 247 Derivative liabilities Commodity derivative swaps $ — 1,856
Schedule of commodity derivative positions with respect to future production	As of June 30, 2017, the open commodity derivative positions with respect to future production were as follows: 2017 2018 Commodity derivative swaps Oil: Notional volume (Barrels) 153,000 90,000 Weighted average price ($/Barrel) $ 54.18 $ 53.45 Natural Gas: Notional volume (MMBtu) 780,000 630,000 Weighted average price ($/MBtu) $ 3.12 $ 3.47 Commodity derivative options Oil: Notional volume (Barrels) 45,000 — Weighted average price ($/Barrel) $ 48.33 $ — Natural Gas: Notional volume (MMBtu) 540,000 — Weighted average price ($/MBtu) $ 3.29 $ —
Schedule of effect of the derivative activity on Consolidated Statements of Operations	For the three and six months ended June 30, 2017 and 2016, the effect of the derivative activity on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended June 30 Six Months Ended June 30, (in thousands) 2017 2016 2017 2016 Realized gain (loss) on derivatives Commodity derivative options $ — $ (720 ) $ 154 $ (14 ) Commodity derivative swaps (15 ) 822 (463 ) 822 Total (15 ) 102 (309 ) 808 Interest rate swap 1 (190 ) (149 ) (421 ) Total realized gain (loss) on derivatives (14 ) (88 ) (458 ) 387 Unrealized gain (loss) on derivatives Commodity derivative options $ 143 $ (939 ) $ 305 $ (1,489 ) Commodity derivative swaps 1,175 (1,081 ) 3,206 (1,220 ) Total 1,318 (2,020 ) 3,511 (2,709 ) Interest rate swap (226 ) (134 ) (226 ) (781 ) Total unrealized gain (loss) on derivatives $ 1,092 $ (2,154 ) $ 3,285 $ (3,490 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	The financial instruments measured at fair value on a recurring basis consist of the following: June 30, December 31, (in thousands) 2017 2016 Derivative instruments: Derivative assets $ 1,909 $ 247 Derivative liabilities — (1,856 ) Total recurring fair value measurement, net $ 1,909 $ (1,609 )
Schedule of fair value of the Level 1 & 2 assets (liabilities) measured on a recurring basis	The tables below set forth by level within the fair value hierarchy the gross components of the assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016. These gross balances are intended solely to provide information on sources of inputs to fair value and proportions of fair value involving objective versus subjective valuations and do not represent either the actual credit exposure or net economic exposure. June 30, 2017 (in thousands) Level 1 Level 2 Level 3 Total Derivative assets $ — $ 1,909 $ — $ 1,909 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Derivative assets $ 21 $ 226 $ — $ 247 Derivative liabilities (1,856 ) — — (1,856 ) Total derivative assets (liabilities) $ (1,835 ) $ 226 $ — $ (1,609 )

Property and equipment (Tables)

Property and equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and equipment	Property and equipment is comprised of the following: June 30, December 31, (in thousands) 2017 2016 Proved oil and natural gas properties $ 312,368 $ 258,530 Unproved oil and natural gas properties 533 1,942 Land 406 1,561 Other property and equipment 3,566 3,807 Total property and equipment 316,873 265,840 Less: accumulated DD&A (1) (159,802 ) (142,467 ) Property and equipment, net $ 157,071 123,373 (1) Accumulated Depreciation, Depletion and Amortization (“DD&A”) of oil and natural gas properties including impairment, is 139.8 million as of June 30, 2017 and December 31, 2016 .

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Schedule of change in asset retirement obligations	The change in asset retirement obligations (“ARO”) for the six month period ended June 30, 2017 is set forth below: (In thousands) 2017 Balance at January 1, $ 5,431 Liabilities incurred 312 Liabilities settled (596 ) Accretion expense 133 Balance at June 30, 5,280 Less: current portion (344 ) Long term $ 4,936

Accrued Liabilities and Other (

Accrued Liabilities and Other (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Schedule of accrued liabilities and other	Accrued liabilities and other is comprised of the following as of the respective dates: June 30, December 31, (in thousands) 2017 2016 Accrued payroll $ 352 $ 948 Accrued legal and professional fees 1,006 223 Production taxes 140 120 Royalties payable 1,860 2,494 Advances from joint owners 113 219 Deferred rent 137 138 Asset retirement obligations, current 344 251 Accrued lease operating expense 307 — Accrued capital expenditures 8,160 2,443 Other 1,197 399 Total $ 13,616 $ 7,235

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity / Parent Net Investment
Schedule of changes in the outstanding preferred stock, common stock and Class A common stock warrants	The following table summarizes the changes in the outstanding preferred stock, common equity and Class A common stock warrants through the date of the Transaction. Series A Preferred Stock Class A Common Stock Class B Common Stock Class F Common Stock Total Class A Common Stock Warrants Issued at formation — 588,276 — 4,312,500 4,900,776 588,276 Issued at IPO — 7,597,044 — — 7,597,044 7,597,044 Issued in connection with private placement — — — — — 8,408,838 Forfeitures/Cancellation of founder shares — — — (2,266,170 ) (2,266,170 ) — Conversion of founder shares — 3,475,663 — (2,046,330 ) 1,429,333 — Redemption of Class A shares — (5,804,404 ) — — (5,804,404 ) — Issued to Tema in connection with the Transaction — — 29,807,692 — 29,807,692 4,000,000 Preferred stock and warrants issued to PIPE Investors 95,000 — — — — 5,000,000 Outstanding at the Transaction date 95,000 5,856,579 29,807,692 — 35,664,271 25,594,158

Nature of Operations (Details N

Nature of Operations (Details Narrative)	Jun. 30, 2017a
Ownership percentage	16.00%
Economic interest percentage	16.00%
Rosehill Operating [Member]
Ownership percentage	84.00%
Economic interest percentage	100.00%
Delaware Basin [Member]
Area of land	4,645

Transaction (Details Narrative)

Transaction (Details Narrative) - USD ($) $ in Thousands	Apr. 27, 2017	Jun. 30, 2017	Jun. 30, 2016
Transaction amount		$ 90,780
Proceeds from the preferred stock		$ 90,780
Common Class A [Member]
Number of shares issued		588,276
Rosehill Operating [Member]
Cash consideration	$ 35,000
Proceeds from issuance initial public offering	60,600
Proceeds from the preferred stock	90,779
Rosehill Operating [Member] | Tema [Member]
Amount of indebtedness	$ 55,000
Warrants exercisable	4,000,000
Rosehill Operating [Member] | 8.0% Series A Cumulative Perpetual Preferred Stock [Member]
Proceeds from the preferred stock	$ 90,800
Proceeds from sale of common shares	18,700
Net cash provided by the Company upon consummation	$ 109,500
Rosehill Operating [Member] | Common Class B [Member]
Number of shares issued	29,807,692
Rosehill Operating [Member] | Common Class A [Member] | Tema [Member]
Warrants exercisable	4,000,000
PIPE Investment [Member] | Private Placement [Member]
Net cash provided by the Company upon consummation	$ 75,000
PIPE Investment [Member] | 8.0% Series A Cumulative Perpetual Preferred Stock [Member]
Number of shares issued	20,000
Annual interest rate	8.00%
Proceeds from warrant exercises	$ 55,000
PIPE Investment [Member] | 8.0% Series A Cumulative Perpetual Preferred Stock [Member] | Private Placement [Member]
Number of shares issued	75,000
Annual interest rate	8.00%
PIPE Investment [Member] | Warrant [Member] | Private Placement [Member]
Number of shares issued	5,000,000
Proceeds from warrant exercises	$ 70,800
Rosemore Holdings, Inc. [Member] | 8.0% Series A Cumulative Perpetual Preferred Stock [Member]
Number of shares issued	20,000
Transaction amount	$ 20,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic:
Net income (loss) to Rosehill Resources Inc.	$ (457)	$ (3,015)	$ 3,957	$ (7,954)
Diluted:
Net income (loss) to Rosehill Resources Inc.	$ (457)	$ (3,015)	$ 3,957	$ (7,954)
Add potentially dilutive securities:
Weighted average shares - diluted (in shares)	5,857	5,857	5,857	5,857
Basic earnings per share (in dollars per share)	$ (0.08)	$ (0.51)	$ 0.68	$ (1.36)
Diluted earnings per share (in dollars per share)	$ (0.08)	$ (0.51)	$ 0.68	$ (1.36)

Earnings Per Share (Details Nar

Earnings Per Share (Details Narrative)	6 Months Ended
	Jun. 30, 2017shares
Series A Preferred Stock [Member]
Anti-dilutive excluded from calculation	8,300,000
Warrant [Member]
Anti-dilutive excluded from calculation	25,600,000

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Revenue receivable	$ 1,408	$ 1,291
Joint interest billings	599	557
Other	47	80
Accounts receivable	$ 2,054	$ 1,928

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Derivative assets	$ 1,909	$ 247
Derivative liabilities
Commodity Derivative Options [Member]
Derivative [Line Items]
Derivative assets	74	21
Commodity Derivative Swap [Member]
Derivative [Line Items]
Derivative assets	1,835
Derivative liabilities		1,856
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative assets		$ 226

Derivative Instruments (Detai38

Derivative Instruments (Details 1)	6 Months Ended
	Jun. 30, 2017MMBTU$ / bbl$ / MMBTUbbl
2017 [Member] | Commodity Derivative Swap [Member]
Oil:
Notional volume (Barrels) | bbl	153,000
Weighted average price ($/Barrel) | $ / bbl	54.18
Natural Gas:
Notional volume (MMBtu) | MMBTU	780,000
Weighted average price ($/MBtu) | $ / MMBTU	3.12
2017 [Member] | Commodity Derivative Options [Member]
Oil:
Notional volume (Barrels) | bbl	45,000
Weighted average price ($/Barrel) | $ / bbl	48.33
Natural Gas:
Notional volume (MMBtu) | MMBTU	540,000
Weighted average price ($/MBtu) | $ / MMBTU	3.29
2018 [Member] | Commodity Derivative Swap [Member]
Oil:
Notional volume (Barrels) | bbl	90,000
Weighted average price ($/Barrel) | $ / bbl	53.45
Natural Gas:
Notional volume (MMBtu) | MMBTU	630,000
Weighted average price ($/MBtu) | $ / MMBTU	3.47
2018 [Member] | Commodity Derivative Options [Member]
Oil:
Notional volume (Barrels) | bbl
Natural Gas:
Notional volume (MMBtu) | MMBTU

Derivative Instruments (Detai39

Derivative Instruments (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Realized gain (loss) on derivatives
Total	$ (15)	$ 102	$ (309)	$ (309)
Total realized gain (loss) on derivatives	(14)	(88)	(458)	387
Unrealized gain (loss) on derivatives
Total	1,318	(2,020)	3,511	(2,709)
Total unrealized gain (loss) on derivatives	1,092	(2,154)	3,285	(3,490)
Commodity Derivative Options [Member]
Realized gain (loss) on derivatives
Total		(720)	154	(14)
Unrealized gain (loss) on derivatives
Total	143	(939)	305	(1,489)
Commodity Derivative Swap [Member]
Realized gain (loss) on derivatives
Total	(15)	822	(463)	822
Unrealized gain (loss) on derivatives
Total	1,175	(1,081)	3,206	(1,220)
Interest Rate Swap [Member]
Realized gain (loss) on derivatives
Total realized gain (loss) on derivatives	(1)	190	149	421
Unrealized gain (loss) on derivatives
Total unrealized gain (loss) on derivatives	$ (226)	$ (134)	$ (226)	$ (781)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative instruments:
Derivative assets	$ 1,909	$ 247
Derivative liabilities
Fair Value, Measurements, Recurring [Member]
Derivative instruments:
Derivative assets	1,909	247
Derivative liabilities		(1,856)
Total recurring fair value measurement, net	$ 1,909	$ (1,609)

Fair Value Measurements (Deta41

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 1,909	$ 247
Derivative liabilities
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,909	247
Derivative liabilities		(1,856)
Total derivative assets (liabilities)	1,909	(1,609)
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		21
Derivative liabilities		(1,856)
Total derivative assets (liabilities)		(1,835)
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	1,909	226
Derivative liabilities
Total derivative assets (liabilities)		226
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets
Derivative liabilities
Total derivative assets (liabilities)

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment		$ 316,873	$ 265,840
Less: accumulated DD&A	[1]	(159,802)	(142,467)
Property and equipment, net		157,071	123,373
Proved Oil and Natural Gas Properties [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		312,368	258,530
Unproved Oil and Natural Gas Properties [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		533	1,942
Land [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		406	1,561
Other Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment		$ 3,566	$ 3,807
[1]	Accumulated Depreciation, Depletion and Amortization ('DD&A') of oil and natural gas properties including impairment, if any, is $157.3 million and $139.8 million as of June 30, 2017 and December 31, 2016, respectively.

Property and equipment (Detai43

Property and equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Accumulated DD&A of oil and natural gas properties	$ 157,300		$ 157,300		$ 139,800
Depreciation, depletion, amortization and accretion (DD&A)	9,400	$ 5,500	17,500	$ 10,500
Depreciation and amortization expense	9,536	5,616	17,767	10,638
Total consideration			6,500
Other Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 100	$ 100	$ 200	$ 200

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at beginning	$ 5,431
Liabilities incurred	312
Liabilities settled	(596)
Accretion expense	133
Balanace at end	5,280
Less: current portion	(344)	$ (251)
Long term	$ 4,936	$ 5,180

Accrued Liabilities and Other45

Accrued Liabilities and Other (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued payroll	$ 352	$ 948
Accrued legal and professional fees	1,006	223
Production taxes	140	120
Royalties payable	1,860	2,494
Advances from joint owners	113	219
Deferred rent	137	138
Asset retirement obligations, current	344	251
Accrued lease operating expense	307
Accrued capital expenditures	8,160	2,443
Other	1,197	399
Total	$ 13,616	$ 7,235

Revolving Credit Facility (Deta

Revolving Credit Facility (Details Narrative) - USD ($) $ in Thousands	Apr. 27, 2017	Dec. 31, 2012	Jun. 30, 2017	Dec. 31, 2016
Outstanding borrowing credit facility			$ 20,000	$ 55,000
Credit Agreement [Member] | Revolving Credit Facility [Member] | Tema [Member]
Maximum borrowing credit facility		$ 75,000
Current borrowing credit facility		$ 60,000
Outstanding borrowing credit facility	$ 55,000
Description of interest rate		Bore interest at floating LIBOR plus 1.00% (the Applicable Margin)
Credit Agreement [Member] | Rosehill Operating Company, LLC ("Rosehill Operating") [Member] | Revolving Credit Facility [Member]
Deferred financing costs			$ 600
Credit Agreement [Member] | Rosehill Operating Company, LLC ("Rosehill Operating") [Member] | Lenders [Member] | Revolving Credit Facility [Member]
Maximum borrowing credit facility	250,000
Current borrowing credit facility	55,000
Outstanding borrowing credit facility	$ 20,000
Description of interest rate	Bear interest at a base rate plus an applicable margin ranging from 1.00% to 2.00% or at London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 2.00% to 3.00%.
Expiration date	Apr. 27, 2022
Weighted average interest rate	3.20%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - Tax Receivable Agreement [Member] - Tema [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Percentage of payment net cash savings	90.00%
Percentage of payment estimated future cash tax savings	90.00%
Effective income tax rate	5.00%
Net operating loss carryover	$ 400,000

Stockholders' Equity (Details)

Stockholders' Equity (Details)	6 Months Ended
	Jun. 30, 2017shares
Common Stock [Member]
Issued at formation	4,900,776
Issued at IPO	7,597,044
Forfeitures/Cancellation of founder shares	(2,266,170)
Conversion of founder shares	1,429,333
Redemption of Class A shares	(5,804,404)
Issued to Tema in connection with the Transaction	29,807,692
Outstanding at the Transaction date	35,664,271
Series A Preferred Stock [Member]
Preferred stock and warrants issued to PIPE Investors	95,000
Outstanding at the Transaction date	95,000
Common Class A [Member]
Issued at formation	588,276
Issued at IPO	7,597,044
Conversion of founder shares	3,475,663
Redemption of Class A shares	(5,804,404)
Outstanding at the Transaction date	5,856,579
Common Class B [Member]
Issued to Tema in connection with the Transaction	29,807,692
Outstanding at the Transaction date	29,807,692
Class F Common Stock [Member]
Issued at formation	4,312,500
Forfeitures/Cancellation of founder shares	(2,266,170)
Conversion of founder shares	(2,046,330)
Class A Common Stock Warrants [Member]
Issued at formation	588,276
Issued at IPO	7,597,044
Issued in connection with private placement	8,408,838
Issued to Tema in connection with the Transaction	4,000,000
Preferred stock and warrants issued to PIPE Investors	5,000,000
Outstanding at the Transaction date	25,594,158

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands

Jul. 19, 2017

Jul. 15, 2017

Apr. 28, 2017

Apr. 27, 2017

Nov. 20, 2015

Mar. 31, 2016

Feb. 29, 2016

Jan. 31, 2016

Dec. 31, 2015

Jun. 30, 2017

Jun. 30, 2016

Dec. 31, 2016

Description of economic interest

The ownership percentages with respect to the Company following the Transaction take into account the shares of Class A common stock issued upon conversion of the Founder Shares, but do not take into account (i) warrants to purchase Class A common stock outstanding following the Transaction, (ii) the issuance of any shares upon completion of the Transaction under the Rosehill Resources Inc. Long Term Incentive Plan dated as of April 27, 2017 (the “ LTIP

Value of shares issued

$ 90,780

Proceeds from the preferred stock

$ 90,780

Long-Term Incentive Plan [Member]

Number of shares issued

7,500

Long-Term Incentive Plan [Member] | Restricted Stock [Member] | Subsequent Event [Member]

Number of shares granted

105,666

Vesting period

1 year

Description of award terms

These shares will vest on July 18, 2018. Stock-based compensation cost associated with this award totaling $840,000 will be recognized over the one-year vesting period.

Stock-based compensation cost

$ 840,000

Expiration date

Jul. 18, 2018

Rosehill Operating Company, LLC ("Rosehill Operating") [Member]

Description noncontrolling interest

On April 27, 2017, upon the close of the Transaction, the Company’s noncontrolling interest percentage in Rosehill Operating, held by Tema, was approximately 84%, The Company has consolidated the financial position and results of operations of Rosehill Operating and reflected that portion retained by Tema as a noncontrolling interest. Of the proceeds received in connection with the Transaction, $40.5 million was distributed to the noncontrolling interest.

Rosehill Operating [Member]

Proceeds from issuance initial public offering

$ 60,600

Proceeds from the preferred stock

$ 90,779

Rosehill Operating [Member] | Tema [Member]

Warrants exercisable

4,000,000

PIPE Investment [Member] | Private Placement Warrants [Member]

Net proceeds from issuance of sale of shares

$ 75,000

Net proceeds from equity issuance costs

$ 4,200

Sponsor [Member] | Early Bird Capital Inc [Member] | Private Placement Warrants [Member]

Number of warrant issued

8,408,838

Warrant [Member]

Description of warrants transaction

The warrants have a five year term which commenced on April 27, 2017, upon the completion of the Transaction and will expire on April 27, 2022. The Company may call the warrants for redemption if the reported last sale price of the Class A common stock equals or exceeds $21.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders.

Number of warrant issued

588,276

Warrants outstanding

25,594,158

Warrant [Member] | IPO [Member]

Number of warrant issued

7,597,044

Warrant [Member] | Tema [Member]

Number of warrant issued

4,000,000

Warrant [Member] | PIPE Investors [Member]

Number of warrant issued

5,000,000

Common Stock [Member]

Number of shares issued

4,900,776

Number of shares forfeited

(2,266,170)

Number of shares issued upon conversion

1,429,333

Common Stock [Member] | Sponsor [Member]

Number of shares cancelled

862,500

Number of shares forfeited

828,670

Common Stock [Member] | Sponsor [Member] | Securities Subscription Agreement [Member]

Number of shares transfer to former officers and directors

150,000

Number of shares forfeited

253,670

Remaining common stock

2,046,330

Percentage of common stock outstanding

20.00%

Common Stock [Member] | Officer [Member]

Number of shares cancelled

575,000

Common Class A [Member]

Common stock issued

5,856,579

Shares issued upon conversion

8,260,868

Number of shares issued

588,276

Number of shares issued upon conversion

3,475,663

Common Class A [Member] | Rosehill Operating [Member]

Number of shares cancelled

5,800

Common Class A [Member] | Rosehill Operating [Member] | Tema [Member]

Warrants exercisable

4,000,000

Common Class A [Member] | Sponsor [Member] | Tema [Member]

Description of transfers securities

The Company’s Sponsor and Tema agreed to restrictions on certain transfers of the Company’s securities, which include, subject to certain exceptions, restrictions on the transfer of (i) 33% of their common stock through the first anniversary the closing date of the Transaction and (ii) 67% of their common stock through the second anniversary of the closing date, provided

Common Class A [Member] | Sponsor [Member] | Rosemore Holdings, Inc. [Member]

Description of redemption

Rosemore and the Sponsor backstopped redemptions by the public stockholders of the Company once 30% of the outstanding shares of Class A common stock were redeemed by purchasing 20,000 shares of Series A Preferred Stock for net proceeds of $20.0 million pursuant to a side letter entered into between Rosemore, the Sponsor and the Company.

Common Class A [Member] | Warrant [Member]

Stock price (in dollers per share)

$ 11.50

Warrant expiration date

Apr. 27, 2022

Common Class A [Member] | Common Stock [Member] | Sponsor [Member] | Securities Subscription Agreement [Member]

Number of shares issued upon conversion

3,475,663

8% Series A Cumulative Perpetual Convertible Preferred Stock [Member]

Liquidation preference (in dollers per share)

$ 1,000

Shares issued upon conversion

86.9565

Conversion price (in dollers per share)

$ 11.50

Class F Common Stock [Member]

Number of shares issued

4,312,500

Number of shares forfeited

(2,266,170)

Number of shares issued upon conversion

(2,046,330)

Class F Common Stock [Member] | Sponsor [Member] | Securities Subscription Agreement [Member]

Number of shares issued

4,312,500

Value of shares issued

$ 25,000

Warrant [Member] | PIPE Investment [Member] | Private Placement Warrants [Member]

Number of shares issued

5,000,000

8.0% Series A Cumulative Perpetual Preferred Stock [Member]

Liquidation preference (in dollers per share)

$ 1,000

$ 1,000

8.0% Series A Cumulative Perpetual Preferred Stock [Member] | Rosehill Operating [Member]

Net proceeds from issuance of sale of shares

$ 109,500

Proceeds from the preferred stock

$ 90,800

8.0% Series A Cumulative Perpetual Preferred Stock [Member] | PIPE Investment [Member]

Number of shares issued

20,000

8.0% Series A Cumulative Perpetual Preferred Stock [Member] | PIPE Investment [Member] | Private Placement Warrants [Member]

Number of shares issued

75,000

8.0% Series A Cumulative Perpetual Preferred Stock [Member] | Rosemore Holdings, Inc. [Member]

Number of shares issued

20,000

Value of shares issued

$ 20,000

Common Class B [Member]

Common stock issued

29,807,692

Common Class B [Member] | Rosehill Operating [Member]

Number of shares issued

29,807,692

Series A Preferred Stock [Member] | Director [Member] | Subsequent Event [Member]

Number of shares issued

1,372

Series A Preferred Stock [Member] | Sponsor [Member] | Rosemore Holdings, Inc. [Member]

Number of shares issued

20,000

Transactions with Related Par50

Transactions with Related Parties (Details Narrative) - USD ($) $ in Thousands	Apr. 27, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
General and administrative services		$ 2,204	$ 1,141	$ 3,669	$ 2,549
Rosemore, Inc ("Rosemore") [Member]
Transaction expenses from related party	$ 2,400
Reimbursement of related party transaction expenses	1,700
Rosemore, Inc ("Rosemore") [Member] | Cost Allocations [Member]
Due to related parties		100		100		$ 300
Rosemore, Inc ("Rosemore") [Member] | General and Administrative Expense [Member]
Overhead costs		0	1,100	1,500	2,500
Rosemore, Inc ("Rosemore") [Member] | Rosehill Operating Company, LLC ("Rosehill Operating") [Member]
Charges for employee benefits and other administrative services		1,400	1,200	2,900	2,600
Gateway Gathering and Marketing Company [Member]
Due from related parties		4,300		4,300		4,500
Revenues from production sold to related parties		11,000	6,300	24,800	9,300
Gateway Gathering and Marketing Company [Member] | Marketing and gathering agreement [Member]
Due from related parties		200		200		300
Expenses from related party for services		300	200	500	400
Gateway Gathering and Marketing Company [Member] | General and Administrative Expense [Member]
Due from related parties		100		100		$ 300
General and administrative services			100	100	200
Gateway Gathering and Marketing Company [Member] | General and Administrative Expense [Member] | Minimum [Member]
General and administrative services				100
Gateway Gathering and Marketing Company [Member] | Other General and Administrative Expense [Member]
Other general and administrative services		$ 100	$ 100	100	$ 100
Tema [Member]
Transaction expenses from related party	1,600
Reimbursement of related party transaction expenses	$ 600
Tema [Member] | Transition Service Agreement [Member]
Expenses from related party for services				$ 400