Carbon Energy (CRBO) 10-Q 19 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Carbon Natural Gas Co
Trading Symbol	CRBO
Entity Central Index Key	86,264
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,627,589

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 630	$ 858
Accounts receivable:
Revenue	2,170	2,369
Trade receivables	546	330
Receivable - related party	200
Other	435	1,921
Prepaid expenses, deposits and other current assets	373	305
Total current assets	4,354	5,783
Oil and gas properties, full cost method of accounting;
Proved, net	33,063	33,212
Unproved	1,966	1,999
Other property and equipment, net	326	325
Total property and equipment, net	35,355	35,536
Investments in affiliates (note 5)	6,444	668
Other long-term assets	1,273	725
Total assets	47,426	42,712
Current liabilities:
Accounts payable and accrued liabilities	7,672	9,121
Commodity derivative liability	311	1,341
Firm transportation contract obligations (note 12)	452	561
Total current liabilities	8,435	11,023
Non-current liabilities:
Firm transportation contract obligations (note 12)	230	261
Commodity derivative liability		591
Ad valorem taxes payable	610	628
Warrant derivative liability	4,939
Asset retirement obligations (note 2)	5,077	5,006
Notes payable (note 6)	15,530	16,230
Total non-current liabilities	26,386	22,716
Commitments (note 12)
Stockholders' equity:
Preferred stock, $0.01 par value; authorized 1,000,000 shares, no shares issued and outstanding at March 31, 2017 and December 31, 2016
Common stock, $0.01 par value; authorized 200,000,000 shares, 5,525,756 and 5,482,673 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	1,097	1,096
Additional paid-in capital	56,866	56,548
Accumulated deficit	(47,244)	(50,536)
Total Carbon stockholders' equity	10,719	7,108
Non-controlling interests	1,886	1,865
Total stockholders' equity	12,605	8,973
Total liabilities and stockholders' equity	$ 47,426	$ 42,712

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Balance Sheets [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	5,525,756	5,482,673
Common stock, shares outstanding	5,525,756	5,482,673

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Natural gas sales	$ 3,994	$ 1,092
Oil sales	1,046	628
Commodity derivative gain	2,144	140
Other income	9	1
Total revenue	7,193	1,861
Expenses:
Lease operating expenses	1,205	589
Transportation costs	489	372
Production and property taxes	412	135
General and administrative	1,670	1,523
Depreciation, depletion and amortization	573	503
Accretion of asset retirement obligations	78	35
Impairment of oil and gas properties		3,890
Total expenses	4,427	7,047
Operating income (loss)	2,766	(5,186)
Other income and (expense):
Interest expense	(267)	(57)
Warrant derivative gain	830
Equity investment income	7
Total other income (expense)	570	(57)
Income (loss) before income taxes	3,336	(5,243)
Provision for income taxes
Net income (loss) before non-controlling interests	3,336	(5,243)
Net income (loss) attributable to non-controlling interests	44	(316)
Net income (loss) attributable to controlling interest	$ 3,292	$ (4,927)
Net income (loss) per common share:
Basic	$ 0.60	$ (0.92)
Diluted	$ 0.40	$ (0.92)
Weighted average common shares outstanding:
Basic	5,487	5,359
Diluted	6,225	5,359

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Non-Controlling Interests	Accumulated Deficit
Beginning balances at Dec. 31, 2016	$ 8,973	$ 1,096	$ 56,548	$ 1,865	$ (50,536)
Beginning balances, (in shares) at Dec. 31, 2016		5,482
Stock-based compensation	319		319
Restricted stock vested		$ 1	(1)
Restricted stock vested, shares		43
Non-controlling interest distributions, net	(23)			(23)
Net income	3,336			44	3,292
Ending balances at Mar. 31, 2017	$ 12,605	$ 1,097	$ 56,866	$ 1,886	$ (47,244)
Ending balances, (in shares) at Mar. 31, 2017		5,525

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 3,336	$ (5,243)
Items not involving cash:
Depreciation, depletion and amortization	573	503
Accretion of asset retirement obligations	78	35
Impairment of oil and gas properties		3,890
Unrealized commodity derivative (gain) loss	(2,167)	62
Warrant derivative gain	(830)
Stock-based compensation expense	319	371
Equity investment income	(7)
Other	(36)
Net change in:
Accounts receivable	1,268	320
Prepaid expenses, deposits and other current assets	(67)	(39)
Accounts payable, accrued liabilities and firm transportation obligations	(1,573)	(163)
Net cash provided (used in) operating activities	894	(264)
Cash flows from investing activities:
Development and acquisition of properties and equipment	(396)	(262)
Other long-term assets	(3)	5
Equity investment		275
Net cash (used in) provided by investing activities	(399)	18
Cash flows from financing activities:
Proceeds from notes payable	300	600
Payments on notes payable	(1,000)	(200)
Distributions to non-controlling interests	(23)	(3)
Net cash (used in) provided by financing activities	(723)	397
Net (decrease) increase in cash and cash equivalents	(228)	151
Cash and cash equivalents, beginning of period	858	305
Cash and cash equivalents, end of period	$ 630	$ 456

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization [Abstract]
Organization	Note 1 – Organization Carbon Natural Gas Company (“Carbon” or the “Company”) is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in the United States. The Company’s business is comprised of the assets and properties of Nytis Exploration (USA) Inc. (“Nytis USA”) and its subsidiary Nytis Exploration Company LLC (“Nytis LLC”) which conducts the Company’s operations in the Appalachian and Illinois Basins, in addition to its subsidiary, Carbon California Operating Company, LLC which conducts the Company’s operations in California and the Company’s equity investment in Carbon California Company, LLC. Collectively, Carbon California Operating Company, LLC and Carbon California Company, LLC are referred to as Carbon California and collectively Carbon, Nytis USA, Nytis LLC and Carbon California are referred to as the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of March 31, 2017 and the Company’s results of operations and cash flows for the three months ended March 31, 2017 and 2016. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for oil and natural gas, natural production declines, the uncertainty of exploration and development drilling results and other factors. For a more complete understanding of the Company’s operations, financial position and accounting policies, the unaudited Consolidated Financial Statements and the notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year ended December 31, 2016 filed on Form 10-K with the Securities and Exchange Commission (“SEC”). In the course of preparing the unaudited Consolidated Financial Statements, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenue and expenses and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and accordingly, actual results could differ from amounts initially established. Principles of Consolidation The Consolidated Financial Statements include the accounts of Carbon, Nytis USA and its consolidated subsidiary. Carbon owns 100% of Nytis USA. Nytis USA owns approximately 99% of Nytis LLC. Nytis LLC also holds an interest in various oil and gas partnerships. For partnerships where the Company has a controlling interest, the partnerships are consolidated. The Company is currently consolidating on a pro-rata basis 46 partnerships. In these instances, the Company reflects the non-controlling ownership interest in partnerships and subsidiaries as non-controlling interests on its Consolidated Statements of Operations and also reflects the non-controlling ownership interests in the net assets of the partnerships as non-controlling interests within stockholders’ equity on its Consolidated Balance Sheets. All significant intercompany accounts and transactions have been eliminated. In accordance with established practice in the oil and gas industry, the Company’s unaudited Consolidated Financial Statements also include its pro-rata share of assets, liabilities, income, lease operating costs and general and administrative expenses of the oil and gas partnerships in which the Company has a non-controlling interest. Non-majority owned investments that do not meet the criteria for pro-rata consolidation are accounted for using the equity method when the Company has the ability to significantly influence the operating decisions of the investee. When the Company does not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All transactions, if any, with investees have been eliminated in the accompanying Consolidated Financial Statements. Accounting for Oil and Gas Operations The Company uses the full cost method of accounting for oil and gas properties. Accordingly, all costs incidental to the acquisition, exploration and development of oil and gas properties, including costs of undeveloped leasehold, dry holes and leasehold equipment, are capitalized. Overhead costs incurred that are directly identified with acquisition, exploration and development activities undertaken by the Company for its own account, and which are not related to production, general corporate overhead or similar activities, are also capitalized. Unproved properties are excluded from amortized capitalized costs until it is determined whether or not proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment at least annually. Significant unproved properties are assessed individually. Capitalized costs are depleted by an equivalent unit-of-production method, converting oil to gas at the ratio of one barrel of oil to six thousand cubic feet of natural gas. Depletion is calculated using capitalized costs, including estimated asset retirement costs, plus the estimated future expenditures (based on current costs) to be incurred in developing proved reserves, net of estimated salvage values. No gain or loss is recognized upon disposal of oil and gas properties unless such disposal significantly alters the relationship between capitalized costs and proved reserves. All costs related to production activities, including work-over costs incurred solely to maintain or increase levels of production from an existing completion interval, are charged to expense as incurred. The Company performs a ceiling test quarterly. The full cost ceiling test is a limitation on capitalized costs prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is not a fair value based measurement, rather it is a standardized mathematical calculation. The ceiling test provides that capitalized costs less related accumulated depletion and deferred income taxes may not exceed the sum of (1) the present value of future net revenue from estimated production of proved oil and gas reserves using the un-weighted arithmetic average of the first-day-of-the month price for the previous twelve month period, excluding the future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, at a discount factor of 10%; plus (2) the cost of properties not being amortized, if any; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) income tax effects related to differences in the book and tax basis of oil and gas properties. Should the net capitalized costs exceed the sum of the components noted above, a ceiling test write-down would be recognized to the extent of the excess capitalized costs. Such impairments are permanent and cannot be recovered in future periods even if the sum of the components noted above exceeds the capitalized costs in future periods. For the three months ended March 31, 2017, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitation. For the three months ended March 31, 2016, the Company recognized a ceiling test impairment of approximately $3.9 million as the Company’s full cost pool exceeded its ceiling limitation. Future declines in oil and natural gas prices, and increases in future operating expenses and future development costs could result in additional impairments of our oil and gas properties in future periods. The effects of low commodity prices may continue to impact the ceiling test value until such time prices stabilize or improve. Impairment charges are a non-cash charge and accordingly, do not affect cash flow, but adversely affect our net income and stockholders’ equity. Investments in Affiliates Investments in non-consolidated affiliates are accounted for under either the equity or cost method of accounting as appropriate. The cost method of accounting is used for investments in affiliates in which the Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence. Investments in non-consolidated affiliates, accounted for using the cost method of accounting, are recorded at cost and impairment assessments for each investment are made annually to determine if a decline in the fair value of the investment, other than temporary, has occurred. A permanent impairment is recognized if a decline in the fair value occurs. If the Company holds between 20% and 50% of the Related Party Transactions On February 15, 2017, the Company entered into an amended and restated limited liability company agreement of Carbon California. Pursuant to the limited liability agreement, the Company was reimbursed $575,000 from Carbon California for due diligence costs incurred on behalf of Carbon California and allocated general and administrative expense in connection with its role of manager of Carbon California. This amount was recorded as a reduction of general and administrative expenses for the three months ended March 31, 2017. See Note 5 for additional information. Warrant Derivative Liability The Company issued a warrant related to its investment in Carbon California. The Company accounts for this warrant in accordance with guidance contained in ASC 815, Derivatives and Hedging Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depleted on a units-of-production basis as part of the full cost pool. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability. The estimated ARO liability is based on estimated economic lives, estimates as to the cost to abandon the wells in the future, and federal and state regulatory requirements. The liability is discounted using a credit-adjusted risk-free rate estimated at the time the liability is incurred or increased as a result of a reassessment of expected cash flows and assumptions inherent in the estimation of the liability. Upward revisions to the liability could occur due to changes in estimated abandonment costs or well economic lives, or if federal or state regulators enact new requirements regarding the abandonment of wells. AROs are valued utilizing Level 3 fair value measurement inputs. The following table is a reconciliation of the ARO for the three months ended March 31, 2017 and 2016: (in thousands) Three Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 78 35 Additions during period 3 5 5,201 3,135 Less: ARO recognized as a current liability (124 ) - Balance at end of period $ 5,077 $ 3,135 Earnings Per Common Share Basic earnings or loss per common share is computed by dividing the net income or loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. The shares of restricted common stock granted to certain officers, directors and employees of the Company are included in the computation of basic net income or loss per share only after the shares become fully vested. Diluted earnings per common share includes both the vested and unvested shares of restricted stock and the potential dilution that could occur upon exercise of options and warrants to acquire common stock, computed using the treasury stock method, which assumes that the increase in the number of shares is reduced by the number of shares which could have been repurchased by the Company with the proceeds from the exercise of warrants (which were assumed to have been made at the average market price of the common shares during the reporting period). The following table sets forth the calculation of basic and diluted income (loss) per share: in thousands except per share amounts Three Months Ended 2017 2016 Basic Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Net income (loss) per common share, basic $ 0.60 $ (0.92 ) Diluted Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Less: decrease in fair value of warrant (830 ) - Adjusted net income (loss) available to common shareholders, diluted $ 2,462 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Add: dilutive effects of warrant and nonvested shares of restricted stock 738 - Weighted-average shares outstanding, diluted 6,225 5,359 Net income (loss) per common share, diluted $ 0.40 $ (0.92 ) For the quarter ended March 31, 2017, the Company had net income and the diluted net income per share calculation for that period includes the dilutive effect of approximately 306,000 non-vested shares of restricted stock and approximately 432,000 in-the-money warrants. In addition, approximately 13,000 out-of-the-money warrants and approximately 296,000 restricted performance units, subject to future contingencies, were excluded from the basic and diluted loss per share calculations. For the quarter ended March 31, 2016, the Company had a net loss and therefore, the diluted net loss per share calculation for that period excludes the anti-dilutive effect of approximately 13,000 warrants and approximately 289,000 non-vested shares of restricted stock. In addition, approximately 296,000 restricted performance units, subject to future contingencies, were excluded from the basic and diluted loss per share calculations. Adopted and Recently Issued Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements To Employee Share-Based Payment Accounting In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2017
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	Note 3 – Acquisitions and Divestitures In October 2016, Nytis LLC completed an acquisition (the “EXCO Acquisition”) consisting of producing natural gas wells and natural gas gathering facilities located in the Company’s Appalachian Basin operating area. The natural gas gathering facilities are primarily used to gather the Company’s natural gas production. The acquisition was pursuant to a purchase and sale agreement, effective October 1, 2016 (the “EXCO Purchase Agreement”) by and among EXCO Production Company (WV), LLC, BG Production Company (WV), LLC and EXCO Resources (PA) LLC (collectively, the “Sellers”) and Nytis LLC, as the buyer. The purchase price of the acquired assets pursuant to the EXCO Purchase Agreement was $9.0 million subject to customary closing adjustments plus certain assumed obligations. The EXCO Acquisition provided the Company with proved developed reserves, production and operating cash flow in a location where the Company has similar assets. EXCO Acquisition Unaudited Pro Forma Results of Operations Below are consolidated results of operations for the quarters ended March 31, 2017 and 2016 as though the EXCO Acquisition had been completed as of January 1, 2016. The EXCO Acquisition closed October 3, 2016, and accordingly, the Company’s consolidated statement of operations for the quarter ended March 31, 2017 includes the results of operations for the three months ended March 31, 2017 of the EXCO properties acquired. Unaudited Pro Forma Consolidated Results For Three Months Ended (in thousands, except per share amounts) 2017 2016 Revenue $ 7,193 $ 2,880 Net income (loss) before non-controlling interests 3,336 (2,520 ) Net income (loss) attributable to non-controlling interests 44 (316 ) Net income (loss) attributable to controlling interests 3,292 (2,204 ) Net income (loss) income per share (basic) 0.60 (0.41 ) Net income (loss) income per share (diluted) 0.40 (0.41 )

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property and Equipment [Abstract]
Property and Equipment	Note 4 – Property and Equipment Net property and equipment as of March 31, 2017 and December 31, 2016 consists of the following: (in thousands) March 31, 2017 December 31, 2016 Oil and gas properties: Proved oil and gas properties $ 112,155 $ 111,771 Unproved properties not subject to depletion 1,966 1,999 Accumulated depreciation, depletion, amortization and impairment (79,092 ) (78,559 ) Net oil and gas properties 35,029 35,211 Furniture and fixtures, computer hardware and software, and other equipment 1,000 990 Accumulated depreciation and amortization (674 ) (665 ) Net other property and equipment 326 325 Total net property and equipment $ 35,355 $ 35,536 As of March 31, 2017 and December 31, 2016, the Company had approximately $2.0 million of unproved oil and gas properties not subject to depletion. The costs not subject to depletion relate to unproved properties that are excluded from amortized capital costs until it is determined whether or not proved reserves can be assigned to such properties. The excluded properties are assessed for impairment at least annually. Subject to industry conditions, evaluation of most of these properties and the inclusion of their costs in amortized capital costs is expected to be completed within five years. During the three months ended March 31, 2017 and 2016, the Company capitalized general and administrative expenses applicable to development and exploration activities of approximately $75,000 and $133,000, respectively. Depletion expense related to oil and gas properties for the three months ended March 31, 2017 and 2016 was approximately $533,000, or $0.41 per Mcfe, and $472,000, or $0.79 per Mcfe, respectively. Depreciation and amortization expense related to furniture and fixtures, computer hardware and software and other equipment for the three months ended March 31, 2017 and 2016 was approximately $40,000 and $31,000, respectively.

Equity Method Investment

Equity Method Investment	3 Months Ended
	Mar. 31, 2017
Equity Method Investment [Abstract]
Equity Method Investment	Note 5 – Equity Method Investment The Company has a 50% interest in Crawford County Gas Gathering Company, LLC (“CCGGC”) which owns and operates pipelines and related gathering and treatment facilities. The Company’s gas production located in Illinois is gathered by CCGGC’s gathering facilities. The Company’s investment in CCGGC is accounted for under the equity method of accounting, and its share of income or loss is recognized. During the three months ended March 31, 2017 and 2016, the Company recorded equity method income of approximately $7,000 and nil, respectively, related to this investment. During the first quarter of 2016, the Company received a cash distribution of $275,000 from CCGGC. On February 15, 2017, the Company entered into an amended and restated limited liability company agreement (the “Carbon California LLC Agreement”) of Carbon California, a Delaware limited liability company established by the Company. Pursuant to the Carbon California LLC Agreement, Carbon acquired a 17.8% interest in Carbon California represented by Class B Units. The Class B Units were acquired for no cash consideration. On February 15, 2017, Carbon California (i) issued and sold Class A Units to two institutional investors for an aggregate cash consideration of $22.0 million, (ii) entered into a Note Purchase Agreement (the “Note Purchase Agreement” ) with two institutional investors for the issuance and sale of up to $25.0 million of Senior Secured Revolving Notes (the “Senior Revolving Notes” Securities Purchase Agreement” “Subordinated Notes” Net proceeds from the Offering Transaction were used by Carbon California to complete the acquisitions of oil and gas assets in the Ventura Basin of California, which acquisitions also closed on February 15, 2017. The remainder of the net proceeds are being used to fund field development projects and to fund future complementary acquisitions and for general working capital purposes of Carbon California. In connection with the Company entering into the Carbon California LLC Agreement described above and Carbon California engaging in the transactions also described above, the Company issued to an affiliate of one of the institutional investors which purchased Class A Units of Carbon California (which is also an affiliate of the Company’s largest stockholders), a warrant to purchase approximately 1.5 million shares of the Company’s common stock at an exercise price of $7.20 per share (the “Warrant”). The exercise price for the Warrant is payable exclusively with Class A Units of Carbon California and the number of shares of the Company’s common stock for which the Warrant is exercisable is determined, as of the time of exercise, by dividing (a) the aggregate unreturned capital of the warrantholder’s Class A Units of Carbon California by (b) the exercise price. The Warrant has a term of seven years and includes certain standard registration rights with respect to the shares of the Company’s common stock issuable upon exercise of the Warrant. Based on its 17.8% interest in Carbon California and its role of manager of Carbon California, the Company is accounting for its investment in Carbon California under the equity method of accounting. For the period of February 15, 2017 through March 31, 2017, Carbon California had a net loss. Once Carbon California reports income, the Company will not record income (or losses) until the Company’s share of such income equals the amount of its share of losses not previously reported. The Company accounts for the Warrant as the initial investment in Carbon California and a liability based on the fair value of the Warrant as of the date of grant (February 15, 2017). Future changes to the fair value of the Warrant will be recognized in earnings. As of grant date of the Warrant, the Company estimated that the fair market value of the Warrant was approximately $5.8 million and recorded that amount to its investment in Carbon California and a long-term liability. This valuation is preliminary and may change in future time periods. As of March 31, 2017, the Company estimated that the fair value of the Warrant was approximately $4.9 million. The difference in the fair value of the Warrant from the grant date though March 31, 2017 was approximately $830,000 and was recognized in other income in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2017.

Bank Credit Facility

Bank Credit Facility	3 Months Ended
	Mar. 31, 2017
Bank Credit Facility [Abstract]
Bank Credit Facility	Note 6 – Bank Credit Facility In 2016, Carbon entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank. LegacyTexas Bank is the initial lender and acts as administrative agent. The credit facility has a maximum availability of $100.0 million (with a $500,000 sublimit for letters of credit), which availability is subject to the amount of the borrowing base. The initial borrowing base established under the credit facility was $17.0 million. The borrowing base is subject to semi-annual redeterminations in March and September commencing March 2017. On March 30, 2017, the borrowing base was increased to $23.0 million. The credit facility is guaranteed by each existing and future direct or indirect subsidiary of Carbon (subject to certain exceptions). The obligations of Carbon and the subsidiary guarantors under the credit facility are secured by essentially all tangible and intangible personal and real property of the Company (subject to certain exclusions). Interest is payable quarterly and accrues on borrowings under the credit facility at a rate per annum equal to either (i) the base rate plus an applicable margin between 0.50% and 1.50% or (ii) the Adjusted LIBOR rate plus an applicable margin between 3.50% and 4.50% at Carbon’s option. The actual margin percentage is dependent on the credit facility utilization percentage. Carbon is obligated to pay certain fees and expenses in connection with the credit facility, including a commitment fee for any unused amounts of 0.50%. The credit facility contains certain affirmative and negative covenants that, among other things, limit the Company’s ability to (1) incur additional debt; (ii) incur additional liens; (iii) sell, transfer or dispose of assets; (iv) merge or consolidate, wind-up, dissolve or liquidate; (v) make dividends and distributions on, or repurchases of, equity; (vi) make certain investments; (vii) enter into certain transactions with its affiliates; (viii) enter into sales-leaseback transaction; (ix) make optional or voluntary payment of debt; (x) change the nature of its business; (xi) change its fiscal year to make changes to the accounting treatment or reporting practices; (xii) amend constituent documents; and (xiii) enter into certain hedging transactions. The affirmative and negative covenants are subject to various exceptions, including certain basket amounts and acceptable transaction levels. In addition, the credit facility requires Carbon’s compliance, on a consolidated basis, with (i) maximum funded Debt/EBITDA ratio of 3.5 to 1.0 and (ii) a minimum current ratio of 1.0 to 1.0, commencing with the quarter ended March 31, 2017. The Company was in compliance with the financial covenants associated with the credit facility as of March 31, 2017. Carbon may at any time repay the loans under the credit facility, in whole or in part, without penalty. Carbon must pay down borrowings under the credit facility or provide mortgages of additional oil and natural gas properties to the extent that outstanding loan and letters of credit exceed the borrowing base. As required under the terms of the credit facility, the Company established pricing for a certain percentage of its production through the use of derivative contracts. The Company is party to an ISDA Master Agreement with BP Energy Company that establishes standard terms for the derivative contracts and an inter-creditor agreement with LegacyTexas Bank and BP Energy Company whereby any credit exposure related to the derivative contracts entered into by the Company and BP Energy Company is secured by the collateral and backed by the guarantees supporting the credit facility. As of March 31, 2017, there were approximately $15.5 million in outstanding borrowings and approximately $7.5 million of additional borrowing capacity available under the credit facility. The Company’s effective borrowing rate at March 31, 2017 was approximately 5.75%.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Income Taxes	Note 7 – Income Taxes The Company recognizes deferred income tax assets and liabilities for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company has net operating loss carryforwards available in certain jurisdictions to reduce future taxable income. Future tax benefits for net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 8 – Stockholders’ Equity Authorized and Issued Capital Stock Effective March 15, 2017 and pursuant to a reverse stock split approved by the shareholders and Board of Directors, each 20 shares of issued and outstanding common stock became one share of common stock and no fractional shares were issued. References to the number of shares and price per share give retroactive effect to the reverse stock split for all periods presented. As of March 31, 2017, the Company had 200,000,000 shares of common stock authorized with a par value of $0.01 per share, of which approximately 5.5 million were issued and outstanding and 1,000,000 shares of preferred stock authorized with a par value of $0.01 per share, none of which were issued and outstanding. During the first three months of 2017, the increase in the Company’s issued and outstanding common stock was a result of restricted stock that vested during the period. Equity Plans Prior to Merger Pursuant to the merger of Nytis USA with and into the Company in 2011, all options, warrants and restricted stock were adjusted to reflect the conversion ratio used in the merger. As of March 31, 2017, the Company has 12,500 warrants outstanding and exercisable related to these plans. Nytis USA Restricted Stock Plan As of March 31, 2017, all of restricted stock issued under the Nytis USA Restricted Stock Plan (“Nytis USA Plan”) have vested. The Company accounted for these grants at their intrinsic value. From the date of grant through March 31, 2013, the Company estimated that none of these shares would vest and accordingly, no compensation cost had been recorded through March 31, 2013. In June 2013, the vesting terms of these restricted stock grants were modified so that 25% of the shares would vest on the first of January from 2014 through 2017. As such, the Company recognized compensation expense for those restricted stock grants based on the fair value of the shares on the date the vesting terms were modified. Compensation expense recognized for those restricted stock grants was nil and approximately $84,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, compensation costs relative to those restricted stock grants were fully recognized. Carbon Stock Incentive Plans The Company has two stock plans, the Carbon 2011 and 2015 Stock Incentive Plans (collectively the “Carbon Plans”). The Carbon Plans were approved by the shareholders of the Company and in the aggregate provide for the issuance of approximately 1.1 million shares of common stock to Carbon officers, directors, employees or consultants eligible to receive these awards under the Carbon Plans. The Carbon Plans provide for granting Director Stock Awards to non-employee directors and for granting Incentive Stock Options, Non-qualified Stock Options, Restricted Stock Awards, Performance Awards and Phantom Stock Awards, or a combination of the foregoing, as is best suited to the circumstances of the particular employee, officer, director or consultant. Restricted Stock During the three months ended March 31, 2017, approximately 81,000 shares of restricted stock were granted under the terms of the Carbon Plan in addition to 462,000 shares granted during previous years. For employees, these restricted stock awards either vest ratably over a three-year service period or cliff vest after a three year service period. For non-employee directors the awards vest upon the earlier of a change in control of the Company or the date their membership on the Board of Directors is terminated other than for cause. The Company recognizes compensation expense for these restricted stock grants based on the estimated grant date fair value of the shares, amortized ratably over three years for employee awards (based on the required service period for vesting) and seven years for non- employee director awards (based on a market survey of the average tenure of directors among U.S. public companies). As of March 31, 2017, approximately 236,000 of these restricted stock grants have vested. Compensation costs recognized for these restricted stock grants were approximately $188,000 and $201,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, there was approximately $1.1 million of unrecognized compensation costs related to these restricted stock grants. This cost is expected to be recognized over the next six years. Restricted Performance Units As of March 31, 2017, approximately 401,000 shares of restricted performance units have been granted under the terms of the Carbon Plan. The performance units represent a contractual right to receive one share of the Company’s common stock subject to the terms and conditions of the agreements including the achievement of certain performance measures relative to a defined peer group or the growth of certain performance measures over a defined period of time for the Company as well as the lapse of forfeiture restrictions pursuant to the terms and conditions of the agreements, including for certain of the grants, the requirement of continuous employment by the grantee prior to a change in control of the Company. Based on the relative achievement of performance, approximately 296,000 restricted performance units are outstanding as of March 31, 2017. The Company accounts for the performance units granted during 2012 and 2014 through 2016 at their fair value determined at the date of grant. The final measurement of compensation cost will be based on the number of performance units that ultimately vest. At March 31, 2017, the Company estimated that none of the performance units granted in 2012 and 2016 would vest due to change in control and other performance provisions and accordingly, no compensation cost has been recorded for these performance units. At September 30, 2016, the Company estimated that it was probable that certain of the performance units granted in 2014 and 2015 would vest. Compensation costs of approximately $132,000 and nil related to these performance units were recognized for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, if change in control and other performance provisions pursuant to the terms and conditions of these agreements are met in full, the estimated unrecognized compensation cost related to the performance units granted in 2012 and 2014 through 2016 would be approximately $1.9 million. The performance units granted in 2013 contain specific vesting provisions, no change in control provisions nor any performance conditions other than stock price performance. Due to different earning requirements compared to the performance units granted in 2012 and 2014 through 2016, the Company recognized compensation expense for the performance units granted in 2013 based on the grant date fair value of the performance units, amortized ratably over three years (the performance period). The fair value of the performance units granted in 2013 was estimated using a Monte Carlo simulation (“MCS”) valuation model using the following key assumptions: no expected dividends, volatility of our stock and those of defined peer companies used to determine our performance relative to the defined peer group, a risk free interest rate and an expected life of three years. Compensation costs recognized for these performance unit grants were approximately nil and $86,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, compensation costs relative to these performance units have been fully recognized.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	3 Months Ended
	Mar. 31, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Accounts Payable and Accrued Liabilities	Note 9 – Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at March 31, 2017 and December 31, 2016 consist of the following: (in thousands) March 31, 2017 December 31, 2016 Accounts payable $ 1,973 $ 2,315 Oil and gas revenue payable to oil and gas property owners 1,918 1,415 Gathering and transportation payables 423 468 Production taxes payable 201 113 Drilling advances received from joint venture partner 140 955 Accrued drilling costs - 4 Accrued lease operating costs 185 282 Accrued ad valorem taxes 1,315 1,552 Accrued general and administrative expenses 1,117 1,572 Accrued interest 189 184 Other liabilities 211 261 Total accounts payable and accrued liabilities $ 7,672 $ 9,121

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets or liabilities that are observable for the asset or liability; or Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s policy is to recognize transfers in and/or out of the fair value hierarchy as of the end of the reporting period for which the event or change in circumstances caused the transfer. The Company has consistently applied the valuation techniques discussed below for all periods presented. The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by level within the fair value hierarchy: (in thousands) Fair Value Measurements Using Level 1 Level 2 Level 3 Total March 31, 2017 Assets: Commodity derivatives $ - $ 546 $ - $ 546 Liabilities: Commodity derivatives $ - $ 311 $ - $ 311 Warrant derivative $ - $ - $ 4,939 $ 4,939 December 31, 2016 Liabilities: Commodity derivatives $ - $ 1,932 $ - $ 1,932 As of March 31, 2017, the Company’s commodity derivative financial instruments are comprised of eight natural gas and nine oil swap agreements. The fair values of these agreements are determined under an income valuation technique. The valuation requires a variety of inputs, including contractual terms, published forward prices, volatilities for options, and discount rates, as appropriate. The Company’s estimates of fair value of derivatives include consideration of the counterparty’s credit worthiness, the Company’s credit worthiness and the time value of money. The consideration of these factors resulted in an estimated exit-price for each derivative asset or liability under a market place participant’s view. All of the significant inputs are observable, either directly or indirectly; therefore, the Company’s derivative instruments are included within the Level 2 fair value hierarchy. The counterparty for all of the Company’s commodity financial instruments as of March 31, 2017 is BP Energy Company. Level 3 Fair Value Measurements A third-party valuation specialist is utilized to determine the fair value of the Company’s warrant designated as Level 3. The Company reviews this valuation, including the related model inputs and assumptions, and analyzes changes in fair value measurements between periods. The Company corroborates such inputs, calculations and fair value changes using various methodologies, and reviews unobservable inputs for reasonableness utilizing relevant information from other published sources. The Company estimated the fair value of the Company’s warrant designated as Level 3 on February 15, 2017, the grant date of the warrant, to be approximately $5.8 million, using a call option pricing model with the following assumptions: a seven-year term, exercise price of $7.20, volatility rate of 41.8% and a risk free rate of 2.3%. The Company remeasured the warrant as of March 31, 2017, using the same call option pricing model, using the following assumptions: a term of 6.9 years, exercise price of $7.20, volatility rate of 39.3% and a risk free rate of 2.2%. As of March 31, 2017, the fair value of the warrant was approximately $4.9 million. Assets Measured and Recorded at Fair Value on a Non-recurring Basis The fair value of the following liabilities measured and recorded at fair value on a non-recurring basis are based on unobservable pricing inputs and therefore, are included within the Level 3 fair value hierarchy. The Company uses the income valuation technique to estimate the fair value of asset retirement obligations using the amounts and timing of expected future dismantlement costs, credit-adjusted risk-free rates and time value of money. During the three months ended March 31, 2017 and 2016, the Company recorded asset retirement obligations for additions of approximately $3,000 and $5,000 respectively. See Note 2 for additional information.

Physical Delivery Contracts and

Physical Delivery Contracts and Oil and Gas Derivatives	3 Months Ended
	Mar. 31, 2017
Physical Delivery Contracts and Oil and Gas Derivatives [Abstract]
Physical Delivery Contracts and Oil and Gas Derivatives	Note 11 – Physical Delivery Contracts and Oil and Gas Derivatives The Company has historically used commodity-based derivative contracts to manage exposures to commodity price on certain of its oil and natural gas production. The Company does not hold or issue derivative financial instruments for speculative or trading purposes. The Company also enters into, on occasion, oil and natural gas physical delivery contracts to effectively provide commodity price hedges. Because these contracts are not expected to be net cash settled, they are considered to be normal sales contracts and not derivatives. Therefore, these contracts are not recorded at fair value in the unaudited Consolidated Financial Statements. Pursuant to the terms of the Company’s credit facility with LegacyTexas Bank, the Company has entered into swap derivative agreements to hedge certain of its oil and natural gas production for 2017 through 2019. As of March 31, 2017, these derivative agreements consisted of the following: Natural Gas Oil Weighted Weighted Average Average Year MMBtu Price (a) Bbl Price (b) 2017 2,520,000 $ 3.30 45,000 $ 52.98 2018 3,120,000 $ 3.01 48,000 $ 54.11 2019 1,320,000 $ 2.85 36,000 $ 54.90 (a) NYMEX Henry Hub Natural Gas futures contract for the respective delivery month. (b) NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month For its swap instruments, the Company receives a fixed price for the hedged commodity and pays a floating price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. The following table summarizes the fair value of the derivatives recorded in the unaudited Consolidated Balance Sheets. These derivative instruments are not designated as cash flow hedging instruments for accounting purposes: (in thousands) March 31, December 31, Commodity derivative contracts: Current assets $ - $ - Non-current assets $ 546 $ - Current liabilities $ 311 $ 1,341 Non-current liabilities $ - $ 591 The table below summarizes the commodity settlements and unrealized gains and losses related to the Company’s derivative instruments for the three months ended March 31, 2017 and 2016. These commodity derivative settlements and unrealized gains and losses are recorded and included in commodity derivative income or loss in the accompanying Consolidated Statements of Operations. (in thousands) Three Months Ended 2017 2016 Commodity derivative contracts: Settlement (losses) gains $ (23 ) $ 202 Unrealized gains (losses) 2,167 (62 ) Total settlement and unrealized gains (losses), net $ 2,144 $ 140 Commodity derivative settlement gains and losses are included in cash flows from operating activities in the Company’s unaudited Consolidated Statements of Cash Flows. The counterparty in all of the Company’s derivative instruments is BP Energy Company. The Company has entered into an ISDA Master Agreement with BP Energy Company that establishes standard terms for the derivative contracts and an inter-creditor agreement with LegacyTexas Bank and BP Energy Company whereby any credit exposure related to the derivative contracts entered into by the Company and BP Energy Company is secured by the collateral and backed by the guarantees supporting the credit facility. The Company nets its derivative instrument fair value amounts executed with is its counterparty pursuant to an ISDA master agreement, which provides for the net settlement over the term of the contracts and in the event of default or termination of the contracts. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited Consolidated Balance Sheet, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited Consolidated Balance Sheet as of March 31, 2017. Net Gross Recognized Recognized Gross Fair Value Assets/ Amounts Assets/ Balance Sheet Classification Liabilities Offset Liabilities Commodity derivative assets: Current assets $ 179 $ (179 ) $ - Other long-term assets 651 (105 ) 546 Total derivative assets $ 830 $ (284 ) $ 546 Commodity derivative liabilities: Current liability $ 490 $ (179 ) $ 311 Non-current liabilities 105 (105 ) - Total derivative liabilities $ 595 $ (284 ) $ 311 Due to the volatility of oil and natural gas prices, the estimated fair values of the Company’s derivatives are subject to large fluctuations from period to period.

Commitments

Commitments	3 Months Ended
	Mar. 31, 2017
Commitments [Abstract]
Commitments	Note 12 – Commitments The Company has entered into employment agreements with certain executives and officers of the Company. The term of the agreements generally range from one to two years and provide for renewal provisions in one year increments thereafter. The agreements provide for, among other items, severance and continuation of benefit payments upon termination of employment or certain change of control events. The Company has entered into long-term firm transportation contracts to ensure the transport for certain of its gas production to purchasers. Firm transportation volumes and the related demand charges for the remaining term of these contracts at March 31, 2017 are summarized in the table below. Period Dekatherms Demand Charges Apr 2016 - Apr 2018 5,530 $ 0.20 - $0.65 May 2018 - May 2020 3,230 $ 0.20 - $0.62 Apr 2020 – May 2020 2,150 $ 0.20 Jun 2020 – May 2036 1,000 $ 0.20 A liability of approximately $682,000 related to firm transportation contracts assumed in asset acquisitions, which represents the remaining commitment, is reflected on the Company’s unaudited Consolidated Balance Sheet as of March 31, 2017. The fair value of these firm transportation obligations were determined based upon the contractual obligations assumed by the Company and discounted based upon the Company’s effective borrowing rate. These contractual obligations are being amortized on a monthly basis as the Company pays these firm transportation obligations in the future.

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosure	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Disclosure [Abstract]
Supplemental Cash Flow Disclosure	Note 13 – Supplemental Cash Flow Disclosure Supplemental cash flow disclosures for the three months ended March 31, 2017 and 2016 are presented below: Three Months Ended (in thousands) 2017 2016 Cash paid during the period for: Interest $ 216 $ 53 Non-cash transactions: Increase in net asset retirement obligations $ 3 $ 5 (Decrease) increase in accounts payable and accrued liabilities included in oil and gas properties $ (8 ) $ 38

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 14 – Subsequent Events On April 3, 2017, the Company finalized a limited liability company agreement (the “Carbon Appalachia LLC Agreement” Carbon Appalachia Pursuant to the Carbon Appalachia LLC Agreement, Carbon acquired a 2.0% interest in Carbon Appalachia represented by Class A Units associated with its equity commitment of $2.0 million. Carbon also has the ability to earn up to an additional 20.0% of Carbon Appalachia (represented by Class B Units) after certain return thresholds to the holders of Class A Units are met. The Class B Units were acquired for no cash consideration. In addition, Carbon acquired a 1.0% carried interest represented by Class C Units which were obtained in connection with the contribution to Carbon Appalachia of a portion of its working interest in undeveloped properties in Tennessee. If Carbon Appalachia agrees to drill horizontal Chattanooga Shale wells on these properties, it will pay 100% of the cost of drilling and completion of the first 20 wells to earn a 75% working interest in such properties. Carbon, through its subsidiary, Nytis LLC, will retain a 25% working interest in the properties. In connection with and concurrently with the closing of the acquisition described below, Carbon Tennessee Company, LLC (“ Carbon Tennessee Borrowings under the credit facility, along with the initial equity contributions made to Carbon Appalachia, were used by Carbon Tennessee to complete the acquisition of natural gas producing properties and related facilities located predominantly in Tennessee (the “Acquisition” ). In connection with the Company entering into the Carbon Appalachia LLC Agreement described above and Carbon Tennessee engaging in the Acquisition, the Company issued to an affiliate of one of the institutional investors which purchased Class A Units of Carbon Appalachia (which is also an affiliate of the Company’s largest stockholders), a warrant to purchase approximately 400,000 shares of the Company’s common stock at an exercise price of $7.20 per share. The exercise price for the warrant is payable exclusively with Class A Units of Carbon Appalachia and the number of shares of the Company common stock for which the warrant is exercisable is determined, as of the time of exercise, by dividing (a) the aggregate unreturned capital plus an internal rate of return on such capital of the warrantholder’s Class A Units of Carbon Appalachia by (b) the exercise price. The warrant has a term of seven years and includes certain standard registration rights with respect to the shares of Carbon’s common stock issuable upon exercise of the warrant. If exercised, the warrant provides Carbon an opportunity to increase its ownership stake in Carbon Appalachia without requiring the payment of cash.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of March 31, 2017 and the Company’s results of operations and cash flows for the three months ended March 31, 2017 and 2016. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for oil and natural gas, natural production declines, the uncertainty of exploration and development drilling results and other factors. For a more complete understanding of the Company’s operations, financial position and accounting policies, the unaudited Consolidated Financial Statements and the notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year ended December 31, 2016 filed on Form 10-K with the Securities and Exchange Commission (“SEC”). In the course of preparing the unaudited Consolidated Financial Statements, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenue and expenses and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and accordingly, actual results could differ from amounts initially established.
Principles of Consolidation	Principles of Consolidation The Consolidated Financial Statements include the accounts of Carbon, Nytis USA and its consolidated subsidiary. Carbon owns 100% of Nytis USA. Nytis USA owns approximately 99% of Nytis LLC. Nytis LLC also holds an interest in various oil and gas partnerships. For partnerships where the Company has a controlling interest, the partnerships are consolidated. The Company is currently consolidating on a pro-rata basis 46 partnerships. In these instances, the Company reflects the non-controlling ownership interest in partnerships and subsidiaries as non-controlling interests on its Consolidated Statements of Operations and also reflects the non-controlling ownership interests in the net assets of the partnerships as non-controlling interests within stockholders’ equity on its Consolidated Balance Sheets. All significant intercompany accounts and transactions have been eliminated. In accordance with established practice in the oil and gas industry, the Company’s unaudited Consolidated Financial Statements also include its pro-rata share of assets, liabilities, income, lease operating costs and general and administrative expenses of the oil and gas partnerships in which the Company has a non-controlling interest. Non-majority owned investments that do not meet the criteria for pro-rata consolidation are accounted for using the equity method when the Company has the ability to significantly influence the operating decisions of the investee. When the Company does not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All transactions, if any, with investees have been eliminated in the accompanying Consolidated Financial Statements.
Accounting for Oil and Gas Operations	Accounting for Oil and Gas Operations The Company uses the full cost method of accounting for oil and gas properties. Accordingly, all costs incidental to the acquisition, exploration and development of oil and gas properties, including costs of undeveloped leasehold, dry holes and leasehold equipment, are capitalized. Overhead costs incurred that are directly identified with acquisition, exploration and development activities undertaken by the Company for its own account, and which are not related to production, general corporate overhead or similar activities, are also capitalized. Unproved properties are excluded from amortized capitalized costs until it is determined whether or not proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment at least annually. Significant unproved properties are assessed individually. Capitalized costs are depleted by an equivalent unit-of-production method, converting oil to gas at the ratio of one barrel of oil to six thousand cubic feet of natural gas. Depletion is calculated using capitalized costs, including estimated asset retirement costs, plus the estimated future expenditures (based on current costs) to be incurred in developing proved reserves, net of estimated salvage values. No gain or loss is recognized upon disposal of oil and gas properties unless such disposal significantly alters the relationship between capitalized costs and proved reserves. All costs related to production activities, including work-over costs incurred solely to maintain or increase levels of production from an existing completion interval, are charged to expense as incurred. The Company performs a ceiling test quarterly. The full cost ceiling test is a limitation on capitalized costs prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is not a fair value based measurement, rather it is a standardized mathematical calculation. The ceiling test provides that capitalized costs less related accumulated depletion and deferred income taxes may not exceed the sum of (1) the present value of future net revenue from estimated production of proved oil and gas reserves using the un-weighted arithmetic average of the first-day-of-the month price for the previous twelve month period, excluding the future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, at a discount factor of 10%; plus (2) the cost of properties not being amortized, if any; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) income tax effects related to differences in the book and tax basis of oil and gas properties. Should the net capitalized costs exceed the sum of the components noted above, a ceiling test write-down would be recognized to the extent of the excess capitalized costs. Such impairments are permanent and cannot be recovered in future periods even if the sum of the components noted above exceeds the capitalized costs in future periods. For the three months ended March 31, 2017, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitation. For the three months ended March 31, 2016, the Company recognized a ceiling test impairment of approximately $3.9 million as the Company’s full cost pool exceeded its ceiling limitation. Future declines in oil and natural gas prices, and increases in future operating expenses and future development costs could result in additional impairments of our oil and gas properties in future periods. The effects of low commodity prices may continue to impact the ceiling test value until such time prices stabilize or improve. Impairment charges are a non-cash charge and accordingly, do not affect cash flow, but adversely affect our net income and stockholders’ equity.
Investments in Affiliates	Investments in Affiliates Investments in non-consolidated affiliates are accounted for under either the equity or cost method of accounting as appropriate. The cost method of accounting is used for investments in affiliates in which the Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence. Investments in non-consolidated affiliates, accounted for using the cost method of accounting, are recorded at cost and impairment assessments for each investment are made annually to determine if a decline in the fair value of the investment, other than temporary, has occurred. A permanent impairment is recognized if a decline in the fair value occurs. If the Company holds between 20% and 50% of the voting interest in non-consolidated corporate affiliates or greater than a 3% to 5% interest of a partnership or limited liability company and exercises significant influence or control, the equity method of accounting is used to account for the investment. The Company’s investment in affiliates that is accounted for using the equity method of accounting, increases or decreases by the Company’s share of the affiliate’s profits or losses and such profits or losses are recognized in the Company’s Consolidated Statements of Operations. The Company reviews equity method investments for impairment whenever events or changes in circumstances indicate that an other than temporary decline in value has occurred. The amount of the impairment is based on quoted market prices, where available, or other valuation techniques.
Related Party Transactions	Related Party Transactions On February 15, 2017, the Company entered into an amended and restated limited liability company agreement of Carbon California. Pursuant to the limited liability agreement, the Company was reimbursed $575,000 from Carbon California for due diligence costs incurred on behalf of Carbon California and allocated general and administrative expense in connection with its role of manager of Carbon California. This amount was recorded as a reduction of general and administrative expenses for the three months ended March 31, 2017. See Note 5 for additional information.
Warrant Derivative Liability	Warrant Derivative Liability The Company issued a warrant related to its investment in Carbon California. The Company accounts for this warrant in accordance with guidance contained in ASC 815, Derivatives and Hedging
Asset Retirement Obligations	Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depleted on a units-of-production basis as part of the full cost pool. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability. The estimated ARO liability is based on estimated economic lives, estimates as to the cost to abandon the wells in the future, and federal and state regulatory requirements. The liability is discounted using a credit-adjusted risk-free rate estimated at the time the liability is incurred or increased as a result of a reassessment of expected cash flows and assumptions inherent in the estimation of the liability. Upward revisions to the liability could occur due to changes in estimated abandonment costs or well economic lives, or if federal or state regulators enact new requirements regarding the abandonment of wells. AROs are valued utilizing Level 3 fair value measurement inputs. The following table is a reconciliation of the ARO for the three months ended March 31, 2017 and 2016: (in thousands) Three Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 78 35 Additions during period 3 5 5,201 3,135 Less: ARO recognized as a current liability (124 ) - Balance at end of period $ 5,077 $ 3,135
Earnings Per Common Share	Earnings Per Common Share Basic earnings or loss per common share is computed by dividing the net income or loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. The shares of restricted common stock granted to certain officers, directors and employees of the Company are included in the computation of basic net income or loss per share only after the shares become fully vested. Diluted earnings per common share includes both the vested and unvested shares of restricted stock and the potential dilution that could occur upon exercise of options and warrants to acquire common stock, computed using the treasury stock method, which assumes that the increase in the number of shares is reduced by the number of shares which could have been repurchased by the Company with the proceeds from the exercise of warrants (which were assumed to have been made at the average market price of the common shares during the reporting period). The following table sets forth the calculation of basic and diluted income (loss) per share: in thousands except per share amounts Three Months Ended 2017 2016 Basic Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Net income (loss) per common share, basic $ 0.60 $ (0.92 ) Diluted Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Less: decrease in fair value of warrant (830 ) - Adjusted net income (loss) available to common shareholders, diluted $ 2,462 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Add: dilutive effects of warrant and nonvested shares of restricted stock 738 - Weighted-average shares outstanding, diluted 6,225 5,359 Net income (loss) per common share, diluted $ 0.40 $ (0.92 ) For the quarter ended March 31, 2017, the Company had net income and the diluted net income per share calculation for that period includes the dilutive effect of approximately 306,000 non-vested shares of restricted stock and approximately 432,000 in-the-money warrants. In addition, approximately 13,000 out-of-the-money warrants and approximately 296,000 restricted performance units, subject to future contingencies, were excluded from the basic and diluted loss per share calculations. For the quarter ended March 31, 2016, the Company had a net loss and therefore, the diluted net loss per share calculation for that period excludes the anti-dilutive effect of approximately 13,000 warrants and approximately 289,000 non-vested shares of restricted stock. In addition, approximately 296,000 restricted performance units, subject to future contingencies, were excluded from the basic and diluted loss per share calculations.
Adopted and Recently Issued Accounting Pronouncements	Adopted and Recently Issued Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements To Employee Share-Based Payment Accounting In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of reconciliation of the ARO	(in thousands) Three Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 78 35 Additions during period 3 5 5,201 3,135 Less: ARO recognized as a current liability (124 ) - Balance at end of period $ 5,077 $ 3,135
Schedule of basic and diluted income (loss) per share	in thousands except per share amounts Three Months Ended 2017 2016 Basic Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Net income (loss) per common share, basic $ 0.60 $ (0.92 ) Diluted Earnings (Loss) per Share Net income (loss)available to common shareholders, basic $ 3,292 $ (4,927 ) Less: decrease in fair value of warrant (830 ) - Adjusted net income (loss) available to common shareholders, diluted $ 2,462 $ (4,927 ) Weighted average shares outstanding, basic 5,487 5,359 Add: dilutive effects of warrant and nonvested shares of restricted stock 738 - Weighted-average shares outstanding, diluted 6,225 5,359 Net income (loss) per common share, diluted $ 0.40 $ (0.92 )

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	3 Months Ended
	Mar. 31, 2017
Acquisitions and Divestitures [Abstract]
Schedule on EXCO acquisition unaudited Pro Forma results of operations	Unaudited Pro Forma Consolidated Results For Three Months Ended (in thousands, except per share amounts) 2017 2016 Revenue $ 7,193 $ 2,880 Net income (loss) before non-controlling interests 3,336 (2,520 ) Net income (loss) attributable to non-controlling interests 44 (316 ) Net income (loss) attributable to controlling interests 3,292 (2,204 ) Net income (loss) income per share (basic) 0.60 (0.41 ) Net income (loss) income per share (diluted) 0.40 (0.41 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property and Equipment [Abstract]
Summary of net property and equipment	(in thousands) March 31, 2017 December 31, 2016 Oil and gas properties: Proved oil and gas properties $ 112,155 $ 111,771 Unproved properties not subject to depletion 1,966 1,999 Accumulated depreciation, depletion, amortization and impairment (79,092 ) (78,559 ) Net oil and gas properties 35,029 35,211 Furniture and fixtures, computer hardware and software, and other equipment 1,000 990 Accumulated depreciation and amortization (674 ) (665 ) Net other property and equipment 326 325 Total net property and equipment $ 35,355 $ 35,536

Accounts Payable and Accrued 25

Accounts Payable and Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Summary of accounts payable and accrued liabilities	(in thousands) March 31, 2017 December 31, 2016 Accounts payable $ 1,973 $ 2,315 Oil and gas revenue payable to oil and gas property owners 1,918 1,415 Gathering and transportation payables 423 468 Production taxes payable 201 113 Drilling advances received from joint venture partner 140 955 Accrued drilling costs - 4 Accrued lease operating costs 185 282 Accrued ad valorem taxes 1,315 1,552 Accrued general and administrative expenses 1,117 1,572 Accrued interest 189 184 Other liabilities 211 261 Total accounts payable and accrued liabilities $ 7,672 $ 9,121

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Summary of financial assets and liabilities at fair value	(in thousands) Fair Value Measurements Using Level 1 Level 2 Level 3 Total March 31, 2017 Assets: Commodity derivatives $ - $ 546 $ - $ 546 Liabilities: Commodity derivatives $ - $ 311 $ - $ 311 Warrant derivative $ - $ - $ 4,939 $ 4,939 December 31, 2016 Liabilities: Commodity derivatives $ - $ 1,932 $ - $ 1,932

Physical Delivery Contracts a27

Physical Delivery Contracts and Oil and Gas Derivatives (Tables)	3 Months Ended
	Mar. 31, 2017
Physical Delivery Contracts and Oil and Gas Derivatives [Abstract]
Schedule of swap derivative agreements	Natural Gas Oil Weighted Weighted Average Average Year MMBtu Price (a) Bbl Price (b) 2017 2,520,000 $ 3.30 45,000 $ 52.98 2018 3,120,000 $ 3.01 48,000 $ 54.11 2019 1,320,000 $ 2.85 36,000 $ 54.90 (a) NYMEX Henry Hub Natural Gas futures contract for the respective delivery month. (b) NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month
Schedule of fair value of the derivatives recorded	(in thousands) March 31, 2017 December 31, 2016 Commodity derivative contracts: Current assets $ - $ - Non-current assets $ 546 $ - Current liabilities $ 311 $ 1,341 Non-current liabilities $ - $ 591
Schedule of realized and unrealized gains and losses	(in thousands) Three Months Ended 2017 2016 Commodity derivative contracts: Settlement (losses) gains $ (23 ) $ 202 Unrealized gains (losses) 2,167 (62 ) Total settlement and unrealized gains (losses), net $ 2,144 $ 140
Schedule of fair value amounts of all derivative instruments assets and liabilities	Net Gross Recognized Recognized Gross Fair Value Assets/ Amounts Assets/ Balance Sheet Classification Liabilities Offset Liabilities Commodity derivative assets: Current assets $ 179 $ (179 ) $ - Other long-term assets 651 (105 ) 546 Total derivative assets $ 830 $ (284 ) $ 546 Commodity derivative liabilities: Current liability $ 490 $ (179 ) $ 311 Non-current liabilities 105 (105 ) - Total derivative liabilities $ 595 $ (284 ) $ 311

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments [Abstract]
Summary of firm transportation volumes and related demand charges	Period Dekatherms Demand Charges Apr 2016 - Apr 2018 5,530 $ 0.20 - $0.65 May 2018 - May 2020 3,230 $ 0.20 - $0.62 Apr 2020 – May 2020 2,150 $ 0.20 Jun 2020 – May 2036 1,000 $ 0.20

Supplemental Cash Flow Disclo29

Supplemental Cash Flow Disclosure (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Disclosure [Abstract]
Summary of supplemental cash flow disclosures	Three Months Ended (in thousands) 2017 2016 Cash paid during the period for: Interest $ 216 $ 53 Non-cash transactions: Increase in net asset retirement obligations $ 3 $ 5 (Decrease) increase in accounts payable and accrued liabilities included in oil and gas properties $ (8 ) $ 38

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Summary of reconciliation of the ARO
Balance at beginning of period	$ 5,006	$ 3,095
Accretion expense	78	35
Additions during period	3	5
Reconciliation of the ARO, Gross	5,201	3,135
Less: ARO recognized as a current liability	(124)
Balance at end of period	$ 5,077	$ 3,135

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic Earnings (Loss) per Share
Net income (loss)available to common shareholders, basic	$ 3,292	$ (4,927)
Weighted average shares outstanding, basic	5,487	5,359
Net income (loss) per common share, basic	$ 0.60	$ (0.92)
Diluted Earnings (Loss) per Share
Net income (loss)available to common shareholders, basic	$ 3,292	$ (4,927)
Less: decrease in fair value of warrant	(830)
Adjusted net income (loss) available to common shareholders, diluted	$ 2,462	$ (4,927)
Weighted average shares outstanding, basic	5,487	5,359
Add: dilutive effects of warrant and nonvested shares of restricted stock	738
Weighted-average shares outstanding, diluted	6,225	5,359
Net income (loss) per common share, diluted	$ 0.40	$ (0.92)

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details Textual)	1 Months Ended	3 Months Ended
	Feb. 15, 2017USD ($)	Mar. 31, 2017Partnershipshares	Mar. 31, 2016USD ($)shares
Summary of Significant Accounting Policies (Textual)
Number of consolidated partnerships | Partnership		46
Cost method investments, additional information		The Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence.
Equity method investment, additional information		If the Company holds between 20% and 50% of the voting interest in non-consolidated corporate affiliates or greater than a 3% to 5% interest of a partnership or limited liability company and exercises significant influence or control, the equity method of accounting is used to account for the investment.
Ceiling test impairment cost | $			$ 3,900,000
Reimbursed amount | $	$ 575,000
Warrant [Member]
Summary of Significant Accounting Policies (Textual)
Anti-dilutive earnings per shares		432,000	13,000
Restricted Stock [Member]
Summary of Significant Accounting Policies (Textual)
Anti-dilutive earnings per shares		306,000
Non-vested shares of restricted stock			289,000
Restricted Performance Units [Member]
Summary of Significant Accounting Policies (Textual)
Common stock equivalent restricted to future contingencies		296,000	296,000
Anti-dilutive earnings per shares		13,000
Nytis LLC [Member]
Summary of Significant Accounting Policies (Textual)
Percentage of ownership interest in the subsidiary		99.00%
Nytis USA [Member]
Summary of Significant Accounting Policies (Textual)
Percentage of ownership interest in the subsidiary		100.00%

Acquisitions and Divestitures33

Acquisitions and Divestitures (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Acquisitions and Divestitures [Abstract]
Revenue	$ 7,193	$ 2,880
Net income (loss) before non-controlling interests	3,336	(2,520)
Net income (loss) attributable to non-controlling interests	(44)	316
Net income (loss) attributable to controlling interests	$ 3,292	$ (2,204)
Net income (loss) income per share (basic)	$ 0.60	$ (0.41)
Net income (loss) income per share (diluted)	$ 0.40	$ (0.41)

Acquisitions and Divestitures34

Acquisitions and Divestitures (Details Textual) $ in Millions	Oct. 01, 2016USD ($)
Purchase Agreement [Member]
Acquisitions and Divestitures (Textual)
Purchase price of acquired assets	$ 9

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Oil and gas properties:
Accumulated depreciation, depletion, amortization and impairment	$ (79,092)	$ (78,559)
Net oil and gas properties	35,029	35,211
Furniture and fixtures, computer hardware and software, and other equipment	1,000	990
Accumulated depreciation and amortization	(674)	(665)
Net other property and equipment	326	325
Total net property and equipment	35,355	35,536
Proved oil and gas properties [Member]
Oil and gas properties:
Oil and gas properties, gross	112,155	111,771
Unproved properties not subject to depletion [Member]
Oil and gas properties:
Oil and gas properties, gross	$ 1,966	$ 1,999

Property and Equipment (Detai36

Property and Equipment (Details Textual)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)Per_Mcfe	Mar. 31, 2016USD ($)Per_Mcfe	Dec. 31, 2016USD ($)
Property and Equipment (Textual)
Depletion expense related to unproved oil and gas properties	$ 2,000,000		$ 2,000,000
Capitalized general and administrative expenses	75,000	$ 133,000
Depletion expense related to oil and gas properties	$ 533,000	$ 472,000
Depletion expense related to oil and gas properties (in dollars per Mcfe) | Per_Mcfe	0.41	0.79
Depreciation and amortization expense	$ 40,000	$ 31,000

Equity Method Investment (Detai

Equity Method Investment (Details) - USD ($) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended
	Feb. 15, 2017	Mar. 31, 2017	Mar. 31, 2016
Equity Method Investment (Textual)
Ownership interest percentage in crawford county gas gathering company, LLC	17.80%	50.00%
Equity investment income (loss) in crawford county gas gathering company, LLC		$ 7,000
Received cash distributions		$ 275,000
Business acquisitions description	Carbon California (i) issued and sold Class A Units to two institutional investors for an aggregate cash consideration of $22.0 million, (ii) entered into a Note Purchase Agreement (the “Note Purchase Agreement” “Senior Revolving Notes” Securities Purchase Agreement” “Subordinated Notes”
Warrant to purchase common stock		1.5
Warrant exercise price		$ 7.20
Estimated fair market value of warrant		$ 4,900,000
Fair value of warrant		(830,000)
Warrant [Member]
Equity Method Investment (Textual)
Estimated fair market value of warrant		$ 5.8

Bank Credit Facility (Details)

Bank Credit Facility (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 30, 2017
Bank Credit Facility (Textual)
Additional borrowing capacity available	$ 7,500,000
Effective borrowing rate (as a percent)	5.75%
Outstanding borrowings	$ 15,500,000
Line of Credit [Member]
Bank Credit Facility (Textual)
Line of credit facility maximum borrowing capacity	$ 100,000,000	$ 23,000,000
Variable interest rate basis	(i) the base rate plus an applicable margin between 0.50% and 1.50% or (ii) the Adjusted LIBOR rate plus an applicable margin between 3.50% and 4.50% at Carbon's option. The actual margin percentage is dependent on the credit facility utilization percentage. Carbon is obligated to pay certain fees and expenses in connection with the credit facility, including a commitment fee for any unused amounts of 0.50%.
Initial borrowing	$ 17,000,000
Submit letters of credit	500,000
Senior secured asset	$ 100,000,000
Revolving credit facility, description	Carbon entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank. LegacyTexas Bank is the initial lender and acts as administrative agent.
Percentage of commitment fee	0.50%
Line of Credit [Member] | Minimum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage	0.50%
Funded debt ratio required to be maintained	1
Current ratio required to be maintained	1
Line of Credit [Member] | Maximum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage	1.50%
Funded debt ratio required to be maintained	3.5
Current ratio required to be maintained	1
Line of Credit [Member] | LIBOR [Member] | Minimum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage	3.50%
Line of Credit [Member] | LIBOR [Member] | Maximum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage	4.50%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Mar. 15, 2017	Jun. 30, 2013	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Stockholders' Equity (Textual)
Reverse stock split, description	reverse stock split approved by the shareholders and Board of Directors, each 20 shares of issued and outstanding common stock became one share of common stock and no fractional shares were issued.
Common stock, shares authorized			200,000,000			200,000,000
Common stock, par value (in dollars per share)			$ 0.01			$ 0.01
Common stock, shares issued			5,525,756			5,482,673
Common stock, shares outstanding			5,525,756			5,482,673
Preferred stock, shares authorized			1,000,000			1,000,000
Preferred stock, par value (in dollars per share)			$ 0.01			$ 0.01
Preferred stock, shares issued
Preferred stock, shares outstanding
Compensation expense for restricted stock grants			$ 84,000	$ 84,000
Number of shares granted			81,000
Warrants outstanding and exercisable			$ 12,500
Restricted Stock Units (RSUs) [Member]
Stockholders' Equity (Textual)
Compensation expense for restricted stock grants			$ 188,000	201,000
Expected period of recognition of unrecognized compensation costs			6 years
Restricted Stock [Member]
Stockholders' Equity (Textual)
Unrecognized compensation cost			$ 1,100,000
Number of shares granted			236,000
Restricted stock awards vest period			3 years
Restricted Stock [Member] | Officer [Member]
Stockholders' Equity (Textual)
Stock incentive plan, common stock shares authorized			1,100,000
Restricted Performance Units [Member]
Stockholders' Equity (Textual)
Number of shares outstanding			296,000
Unrecognized compensation cost						$ 1,900,000	$ 1,900,000	$ 1,900,000	$ 1,900,000
Compensation expense for restricted stock grants			$ 86,000	86,000
Compensation cost recognized			$ 132,000	$ 132,000
Number of shares granted			401,000
Expected term			3 years
Nytis USA Restricted Stock Plan [Member]
Stockholders' Equity (Textual)
Vesting terms of restricted stock			The vesting terms of these restricted stock grants were modified so that 25% of the shares would vest on the first of January from 2014 through 2017.
Vesting, percentage		25.00%
Carbon Stock Incentive Plans [Member]
Stockholders' Equity (Textual)
Number of shares granted			462,000

Accounts Payable and Accrued 40

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable	$ 1,973	$ 2,315
Oil and gas revenue payable to oil and gas property owners	1,918	1,415
Gathering and transportation payables	423	468
Production taxes payable	201	113
Drilling advances received from joint venture partner	140	955
Accrued drilling costs		4
Accrued lease operating costs	185	282
Accrued ad valorem taxes	1,315	1,552
Accrued general and administrative expenses	1,117	1,572
Accrued interest	189	184
Other liabilities	211	261
Total accounts payable and accrued liabilities	$ 7,672	$ 9,121

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Commodity derivatives	$ 546
Warrant derivative	4,939
Liabilities:
Commodity derivatives	311	$ 1,932
Recurring basis [Member] | Level 1 [Member]
Assets:
Commodity derivatives
Warrant derivative
Liabilities:
Commodity derivatives
Recurring basis [Member] | Level 2 [Member]
Assets:
Commodity derivatives	546
Warrant derivative
Liabilities:
Commodity derivatives	311	1,932
Recurring basis [Member] | Level 3 [Member]
Assets:
Commodity derivatives
Warrant derivative	4,939
Liabilities:
Commodity derivatives

Fair Value Measurements (Deta42

Fair Value Measurements (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 15, 2017	Mar. 31, 2017	Mar. 31, 2016
Fair Value Measurements (Textual)
Asset retirement obligation		$ 3,000	$ 5,000
Level 3 [Member]
Fair Value Measurements (Textual)
Fair value of warrant	$ 5,800,000	$ 4,900,000
Term	7 years	6 years 10 months 25 days
Exercise price	$ 7.20	$ 7.20
Volatility rate	41.80%	39.30%
Risk free rate	2.30%	2.20%

Physical Delivery Contracts a43

Physical Delivery Contracts and Oil and Gas Derivatives (Details)	Mar. 31, 2017USD_MMBtuUSD_Bbl$ / shares
2017 [Member] | Natural Gas [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_MMBtu	2,520,000
Weighted Average Price	$ 3.30	[1]
2017 [Member] | Oil [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_Bbl	45,000
Weighted Average Price	$ 52.98	[2]
2018 [Member] | Natural Gas [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_MMBtu	3,120,000
Weighted Average Price	$ 3.01	[1]
2018 [Member] | Oil [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_Bbl	48,000
Weighted Average Price	$ 54.11	[2]
2019 [Member] | Natural Gas [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_MMBtu	1,320,000
Weighted Average Price	$ 2.85	[1]
2019 [Member] | Oil [Member]
Derivative Instrument Detail [Abstract]
Quantity | USD_Bbl	36,000
Weighted Average Price	$ 54.90	[2]
[1]	NYMEX Henry Hub Natural Gas futures contract for the respective delivery month.
[2]	NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month

Physical Delivery Contracts a44

Physical Delivery Contracts and Oil and Gas Derivatives (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Commodity derivative contracts:
Current assets
Non-current assets	546
Current liabilities	311	1,341
Non-current liabilities		$ 591

Physical Delivery Contracts a45

Physical Delivery Contracts and Oil and Gas Derivatives (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commodity derivative contracts:
Unrealized gains (losses)	$ 2,167	$ (62)
Commodity derivative contracts [Member]
Commodity derivative contracts:
Settlement (losses) gains	(23)	202
Unrealized gains (losses)	2,167	(62)
Total settlement and unrealized gains (losses), net	$ 2,144	$ 140

Physical Delivery Contracts a46

Physical Delivery Contracts and Oil and Gas Derivatives (Details 3) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Commodity derivative assets:
Current assets
Other long-term assets	546
Total derivative assets	546
Commodity derivative liabilities:
Current liability	311	1,341
Non-current liabilities		591
Total derivative liabilities	311	$ 1,932
Gross Recognized Assets/Liabilities [Member]
Commodity derivative assets:
Current assets	179
Other long-term assets	651
Total derivative assets	830
Commodity derivative liabilities:
Current liability	490
Non-current liabilities	105
Total derivative liabilities	595
Gross Amounts Offset [Member]
Commodity derivative assets:
Current assets	(179)
Other long-term assets	(105)
Total derivative assets	(284)
Commodity derivative liabilities:
Current liability	(179)
Non-current liabilities	(105)
Total derivative liabilities	(284)
Net Recognized Fair Value Assets/Liabilities [Member]
Commodity derivative assets:
Current assets
Other long-term assets	546
Total derivative assets	546
Commodity derivative liabilities:
Current liability	311
Non-current liabilities
Total derivative liabilities	$ 311

Commitments (Details)

Commitments (Details)	3 Months Ended
	Mar. 31, 2017Per_McfePartnership
Apr 2016 - Apr 2018 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	5,530
Apr 2016 - Apr 2018 [Member] | Minimum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.20
Apr 2016 - Apr 2018 [Member] | Maximum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.65
May 2018 - Mar 2020 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	3,230
May 2018 - Mar 2020 [Member] | Minimum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.20
May 2018 - Mar 2020 [Member] | Maximum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.62
Apr 2020 - May 2020 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	2,150
Demand charges (in dollars per dekatherm)	0.20
Jun 2020 - May 2036 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	1,000
Demand charges (in dollars per dekatherm)	0.20

Commitments (Details Textual)

Commitments (Details Textual)	Mar. 31, 2017USD ($)
Commitments (Textual)
Liability related to firm transportation contracts assumed	$ 682,000

Supplemental Cash Flow Disclo49

Supplemental Cash Flow Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash paid during the period for:
Interest Paid	$ 216	$ 53
Non-cash transactions:
Increase in net asset retirement obligations	3	5
(Decrease) increase in accounts payable and accrued liabilities included in oil and gas properties	$ (8)	$ 38

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Apr. 03, 2017USD ($)InvestorsWell$ / sharesshares	Mar. 31, 2017$ / sharesshares
Subsequent Event (Textual)
Warrant exercise price | $ / shares		$ 7.20
Warrant to purchase common stock | shares		1,500,000
Subsequent Events [Member] | Carbon Appalachia [Member]
Subsequent Event (Textual)
Amount of initial equity commitment	$ 100
Number of institutional investors | Investors	2
Interest of acquisition	2.00%
Descriiption of acquired entity	Carbon Appalachia was formed by Carbon and two institutional investors to acquire producing assets in Southern Appalachia and has an initial equity commitment of $100.0 million. Pursuant to the Carbon Appalachia LLC Agreement, Carbon acquired a 2.0% interest in Carbon Appalachia represented by Class A Units associated with its equity commitment of $2.0 million. Carbon also has the ability to earn up to an additional 20.0% of Carbon Appalachia (represented by Class B Units) after certain return thresholds to the holders of Class A Units are met. The Class B Units were acquired for no cash consideration.
Subsequent events, description	Carbon acquired a 1.0% carried interest represented by Class C Units which were obtained in connection with the contribution to Carbon Appalachia of a portion of its working interest in undeveloped properties in Tennessee. If Carbon Appalachia agrees to drill horizontal Chattanooga Shale wells on these properties, it will pay 100% of the cost of drilling and completion of the first 20 wells to earn a 75% working interest in such properties. Carbon, through its subsidiary, Nytis LLC, will retain a 25% working interest in the properties.
Number of wells | Well	20
Revolving credit facility, description	Carbon Tennessee Company, LLC ("Carbon Tennessee"), an indirect subsidiary of Carbon Appalachia, entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank.
Senior secured asset	$ 100
Purchase price of acquired assets	20
Credit facility purchase price	$ 8.5
Warrant exercise price | $ / shares	$ 7.20
Equity commitment	$ 2
Long-term Line of Credit	$ 10
Warrant to purchase common stock | shares	400,000