Warren Resources (WRES) 8-K Entry into a Material Definitive Agreement

Jefferies LLC

Member SIPC

Warren Resources, Inc.

Presentation to Bondholders

March 2016  /  Confidential

Exhibit 99.1

Disclaimer

This

Opportunity

Overview,

or

presentation,

relates

to

an

opportunity

to

enter

into

a

transaction

with

Warren

Resources,

Inc.

(“Warren”

or

the

“Company”).

Neither

the

Company

nor

its

affiliates

nor

Jefferies

LLC

(“Jefferies”),

nor

any

subsidiaries,

affiliates,

officers,

directors,

shareholders,

employees,

consultants,

advisors,

agents

or

representatives

(collectively,

“Representatives”)

of

the

foregoing,

make

any

representation

or

warranty,

express

or

implied

at

law

or

in

equity,

in

connection

with

any

of

the

information

made

available

herein,

including,

but

not

limited

to,

the

past,

present,

or

future

value

of

the

anticipated

reserves,

expected

drilling

results,

cash

flows,

income,

costs,

expenses,

liabilities

and

profits,

if

any,

to

be

derived

from

the

opportunity

described

herein

(“Opportunity”).

Accordingly,

any

person,

company

or

interested

party

will

rely

solely

upon

its

own

independent

examination,

assessment

and

verification

of

the

information

in

making

any

decision

in

connection

with

the

Opportunity

and

in

no

event

shall

any

recipient

party

make

any

claim

against

the

Company,

Jefferies

or

any

of

their

respective

Representatives

in

respect

of,

or

based

upon,

the

information

contained

herein.

Neither

the

Company

nor

Jefferies,

nor

any

of

their

respective

Representatives,

shall

have

any

liability

to

any

recipient

party

or

its

respective

Representatives

as

a

result

of

receiving

and/or

evaluating

any

information

concerning

the

Opportunity

(including,

but

not

limited

to,

this

Opportunity

Overview).

With

respect

to

any

projection

or

forecast

contained

herein,

including,

but

not

limited

to,

the

past,

present,

or

future

value

of

the

anticipated

reserves,

expected

drilling

results,

cash

flows,

income,

costs,

expenses,

liabilities

and

profits,

if

any,

to

be

derived

from

the

Opportunity,

the

recipient

hereby

acknowledges

that

(i)

there

are

uncertainties

inherent

in

attempting

to

make

such

projections

and

forecasts,

(ii)

the

accuracy

and

correctness

of

any

such

projections

and

forecasts

may

be

affected

by

information

which

may

become

available

through

discovery

or

otherwise

after

the

date

of

such

projections

and

forecasts,

(iii)

the

underlying

assumptions

for

the

projections

or

forecasts

could

change,

(iv)

the

projections

and

forecasts

may

no

longer

be

accurate

as

a

result

of

any

of

(i)-(iii)

or

any

other

factor,

(v)

none

of

the

Company,

Jefferies

or

any

of

their

Representatives

has

an

obligation

to

update

any

such

projections

or

forecasts

and

(vi)

it

is

familiar

with

each

of

the

foregoing.

The

market

and

industry

data

contained

in

this

presentation

are

based

on

management's

own

estimates,

internal

company

research

surveys

and

studies

conducted

by

third

parties

and

industry

and

general

publications,

and

in

each

case,

are

believed

by

management

to

be

reasonable

estimates.

Jefferies

has

not

independently

verified

market

and

industry

data

from

third-party

sources.

This

data

is

subject

to

change

and

cannot

always

be

verified

with

complete

certainty

due

to

limits

on

the

availability

and

reliability

of

raw

data,

the

voluntary

nature

of

the

data

gathering

process

and

other

limitations

and

uncertainties

inherent

in

any

statistical

survey

of

market

or

industry

data.

As

a

result,

you

should

be

aware

that

market

and

industry

data

set

forth

herein,

and

estimates

and

beliefs

based

on

such

data,

may

not

be

reliable.

This

Opportunity

Overview

is

being

made

to

you

on

a

confidential

basis

in

accordance

with

the

terms

of

the

confidentiality

agreement

(the

“CA”)

entered

into

between

the

recipient

and

the

Company

on

or

about

the

date

the

recipient

was

provided

this

Opportunity

Overview.

This

Opportunity

Overview

and

the

information

contained

herein

may

only

be

used

by

the

recipient

as

provided

in

the

CA.

With

respect

to

the

Opportunity,

the

Company

reserves

the

right

to:

(1)

accept

any

proposal

at

any

time;

(2)

reject

any

and

all

proposals;

(3)

withdraw

the

solicitation

of

offers

for

the

Opportunity

or

modify

the

transaction

process

prior

to

the

execution

of

any

agreement;

or

(4)

after

execution

of

an

agreement,

withdraw

under

conditions

set

forth

in

said

agreement.

This

Opportunity

Overview

is

not,

and

nothing

contained

herein

should

be

construed

as,

an

offer

to

sell

or

a

solicitation

to

purchase

securities

that

may

in

the

future

be

offered

through

the

Opportunity.

Under

no

circumstances,

and

at

no

time,

should

any

interested

party

infer

or

consider

that

a

transaction

relating

to

the

Opportunity

or

the

Company

has

occurred,

or

will

occur,

until

an

agreement

with

the

Company

has

been

properly

executed.

i

Disclaimer (cont’d)

This

presentation

contains

forward-looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934.

A

number

of

factors

may

cause

actual

results

to

differ

materially

from

the

projections,

anticipated

results

or

other

expectations

expressed

in

this

presentation.

Warren

believes

that

its

expectations

are

based

on

reasonable

assumptions.

No

assurance,

however,

can

be

given

that

such

expectations

will

prove

to

have

been

correct.

Some

factors

that

could

cause

actual

results

to

differ

materially

from

those

in

the

forward-looking

statements,

include,

but

are

not

limited

to:

the

market

prices

of

oil

and

gas

and

hedging

activities

undertaken

in

relation

thereto;

financial

market

conditions

and

the

availability

of

liquidity;

lenders

willingness

to

waive

or

amend

financial

covenants

applicable

to

us;

delisting

of

our

stock;

changes

in

expected

levels

of

oil

and

gas

reserve

estimates

and

production

estimates;

the

inability

to

drill

wells

on

a

substantial

portion

of

our

acreage

due

to

insufficient

capital,

market

conditions

or

other

factors;

the

timing

and

results

of

drilling

and

other

development

activities;

any

inability

to

hold

substantial

leases;

governmental

and

environmental

regulations

and

permitting

requirements

and

delays;

the

availability

of

capital

and

credit

market

conditions;

unsuccessful

exploratory

activities;

unexpected

cost

increases;

delays

in

completing

production,

treatment

and

transportation

facilities;

the

availability

and

cost

of

obtaining

equipment

and

technical

personnel;

operating

hazards;

risks

associated

with

the

availability

of

acceptable

transportation

arrangements;

unanticipated

operational

problems;

potential

liability

for

remedial

actions

under

existing

or

future

environmental

regulations;

changes

in

tax,

environmental

and

other

laws

applicable

to

our

business

as

well

as

general

domestic

and

international

economic

and

political

conditions;

concentration

of

customers;

inability

to

replace

reserves

as

they

are

produced;

climate

change;

computer

security

breaches;

and

factors

that

may

affect

our

common

stock

including

the

numbers

of

shares

subject

to

registration

rights;

stock

price

volatility;

anti-takeover

measures

in

our

organizational

documents;

and

any

failure

to

make

appropriate

assumptions

or

estimates

in

the

preparation

of

our

financial

statements

or

to

maintain

adequate

internal

control

over

financial

reporting.

All

forward-looking

statements

are

made

only

as

of

the

date

hereof

and,

unless

legally

required,

the

Company

undertakes

no

obligation

to

update

any

such

statements,

whether

as

a

result

of

new

information,

future

events

or

otherwise.

Further

information

on

risks

and

uncertainties

that

may

affect

Warren’s

operations

and

financial

performance,

and

the

forward-

looking

statements

made

herein,

is

available

in

the

Company’s

filings

with

the

Securities

and

Exchange

Commission,

including

its

Annual

Report

on

Form

10-

K

under

the

headings

“Risk

Factors”

and

“Management’s

Discussion

and

Analysis

of

Financial

Condition

and

Results

of

Operations”

and

in

other

public

filings,

press

releases

and

presentations.

ii

Table of Contents

Overview of Warren Resources

1

Review of Unencumbered Assets

11

iii

Overview of Warren Resources

1

Asset Overview

Area

Net

Acreage

Q4 2015 Net

Production

(MMcfe/d)

Proved

Reserves

(Bcfe)

(1)

California

2,460

16

80

Wyoming

70,631

13

65

Pennsylvania

5,289

63

95

Other

2,167

1

1

Total

80,547

93

241

(1)

Net proved reserves and proved PV-10 as of 12/31/15 assuming SEC pricing of $42.81 / Bbl and $1.74 / Mcf.

(2)

“Shut-in” is defined as being one of the following: (1) idle, (2) drilled but not completed or (3) plugged back and suspended.

(3)

“Shut-in” also includes wells that are (1) idle, (2) TA’d, (3) down or (4) monitoring.

Key Points

2016 decline rate ±20% oil and gas without new capital

Extensive RTP wells in inventory

2015 production ratio: 83% natural gas, 17% oil

Total Proved PV-10: $96 MM

(1)

Pennsylvania Properties

“Core-of-the-core” Marcellus

100% of asset is held by production

34 PDP wells with an average lateral length of ~4,360 feet

31 Lower Marcellus producers

3 Upper Marcellus producers

Identified 26 additional locations in the Lower Marcellus and 48 additional locations in the

Upper Marcellus

Early data indicates Upper Marcellus OGIP is 75% of Lower Marcellus

Pad and pipeline infrastructure in place

Wyoming Properties

Commercial CBM production from the Mesaverde

coals in the Washakie Basin

138 producing wells and 124 shut-in wells

(3)

140 gross identified potential CBM drilling and recompletion locations

Deep formations include: Browning, Shannon, Niobrara, Frontier, Dakota, Phosphoria, and

Tensleep

Operators are currently testing various deep formations offsetting WRES acreage position

Considering JV with strategic partners to develop the deep zones of interest

California Properties

Wilmington Field in the Los Angeles Basin

3

largest oilfield in the U.S.

Waterflood

oil recovery allows for high recovery factors of the estimated 797 MMBbls

original in place

100% of asset is held by production

180 producing wells (140 WTU and 40 NWU, 127 producers and 53 injectors) and 193 shut-

in wells (96 WTU and 97 NWU, 147 producers and 46 injectors)

(2)

140 gross identified drilling locations

Horizontal / sinusoidal development to drill highly targeted wells in five stacked pay zones

Dry-gas plays

Oil plays

2

rd

NSAI Year-End Reserve Report Summary

Key Points

Based on NSAI’s year-end reserve

report of Warren’s assets

Warren has proved PV-10 of $96

MM

Warren has 241 Bcfe of proved

reserves (80% PD, 68% gas)

SEC pricing: $42.81 / Bbl oil pricing

and $1.74 / Mcf gas pricing

Reserve Summary

1P Reserves by Area: 241 Bcfe

1P Reserves by Reserve Category: 241

Bcfe

($Millions, unless otherwise noted)

SEC Pricing

3

145

49

47

PDP

PDNP

PUD

80

95

65

CA

PA

WY

NM & TX

1

Oil

Gas

Total

PV-10

(MMBbls)

(Bcf)

(Bcfe)

($MM)

PDP

6

110

145

60

$            

PDNP

1

43

49

26

PUD

6

11

47

11

Total Proved

13

164

241

96

$            

2016 Guidance

Key Points

Warren estimates that 2016 oil and gas

production will decline by approximately

18% and 20%, respectively for both Plans

A and B

–

These forecasted decreases reflect

Warren’s assumption that it will expend

no new drilling capital on any of the

properties in 2016

–

However, Warren plans to maintain

investments in all properties and areas

for all appropriate safety related

measures, and it plans to continue

work-over programs

As a result of decreased production and

ongoing negotiations with vendors and

pipeline operators, Warren anticipates

that LOE, field gathering and

transportation fees and taxes will decline

by $13.7 million, or 28%, in 2016

Warren also forecasts net cash G&A to

decline by 27% in 2016

The only capital expenditures currently

included in Warren’s 2016 plan are for

facility and pipeline work in California

($Millions, unless otherwise noted)

4

980

803

Oil (MBbls)

28

34

22

27

Gas (Bcf)

Total (Bcfe)

2015

2016

Production Guidance

$89.4

$49.6

$15.5

$57.2

$35.9

$11.4

$57.2

$35.9

$11.4

Total Revenue

LOE, Gathering Fees & Taxes

Net Cash G&A

2015 Actual

2016 Forecast -

Plan B

2016 Forecast -

Plan A

Financial Guidance

Business Plan Overview

Warren Forward Business Plan –

March 18, 2016

Business Case

Scenarios

Overview

Plan A

Plan A would follow the NSAI reserve report investment scenario which would require additional capital by mid-

2017

Such plan, at current forecast prices is not sustainable without additional capital on an annual basis and the

Company would run out of cash by mid-2017 under this plan

Due to the ongoing debt load of the Company, it will be difficult under this plan to either acquire additional

properties or merge with another operator

Plan A attempts to preserve option value for a more favorable commodity price environment

Plan B

Plan B would assume that by year end 2016 the California and Wyoming properties are sold for approximately

$145.0 mm in the aggregate

Cash would be used to pay down the restructured first lien debt and at the same time the second lien debt is

assumed to convert to equity

The Company could approach 2017 with no debt, assets focused in the Marcellus that have minimal

environmental or other long term liabilities

The Company could add other properties or companies through conventional debt or equity issuances or be

merged into another operator

Overview

Warren has constructed two business case scenarios for the post-reorganized company, Plan A and a Plan B, to be presented to current stakeholders

Both plans would require a centralized management team with production offices in California, Wyoming and Pennsylvania.  The centralized

management

team

would

consist

of

the

CEO

(Watt),

CFO

(Smith),

SR.

VP

of

Operations

(Open),

SR

VP

of

Engineering

and

Acquisitions

(Waite),

SR

VP of Land (Collins) and a  VP of Administration and Human Resources (Open)

Although the reserve report included in Plan A assumed a significant drilling program in commencing in 2017, Warren doesn’t believe it’s a realistic

plan.  Warren believes minimal drilling will be conducted in the next couple of years and most activity will revolve around accretive acquisitions

5

Projected Cash Flows

Summary of Projected Cash Flows

Note: NYMEX pricing as of February 26, 2016.

Source: Company Management.

Forward

Business

Plan

–

Plan

A

($Millions, unless otherwise noted)

6

Q1 2016

Q2 2016

Q3 2016

Q4 2016

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Free Cash Flow Summary

Production:

Oil (Bbls)

211,184

203,427

196,290

191,689

802,590

770,712

822,421

906,148

999,966

Natural Gas (Mcf)

6,287,061

5,750,074

5,334,726

4,991,308

22,363,169

25,379,802

30,372,614

34,611,850

28,219,412

Realized Pricing:

Oil (per barrel)

26.07

$           

28.87

$           

31.39

$           

32.75

$           

29.77

$           

34.76

$           

36.65

$           

37.90

$           

38.89

$           

Natural Gas (per Mcf)

1.26

$             

1.18

$             

1.30

$             

1.42

$             

1.29

$             

1.57

$             

1.61

$             

1.64

$             

1.71

$             

EBITDAX

8.1

$               

5.5

$               

5.4

$               

6.8

$               

25.7

$             

24.1

$             

34.4

$             

43.8

$             

40.6

$             

Capex

(2.5)

-

-

(0.1)

(2.6)

(81.9)

(85.0)

(62.7)

(23.8)

Asset Sale Proceeds

-

-

-

-

-

-

-

-

-

Change in Working Capital:

4.1

$               

1.2

$               

2.2

$               

1.9

$               

9.4

$               

8.6

$               

3.7

$               

0.7

$               

(2.2)

$              

Unlevered Free Cash

Flow

9.8

$               

6.6

$               

7.6

$               

8.5

$               

32.5

$             

(49.2)

$            

(46.9)

$            

(18.3)

$            

14.6

$             

Projected Cash Flows

Summary of Projected Cash Flows

Forward

Business

Plan

–

Plan

B

Note: NYMEX pricing as of February 26, 2016.

Source: Company Management.

($Millions, unless otherwise noted)

7

Q1 2016

Q2 2016

Q3 2016

Q4 2016

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Free Cash Flow Summary

Production:

Oil (Bbls)

211,184

203,427

196,290

191,689

802,590

139

101

75

59

Natural Gas (Mcf)

6,287,061

5,750,074

5,334,726

4,991,308

22,363,169

20,121,711

24,138,672

27,623,520

20,578,284

Realized Pricing:

Oil (per barrel)

26.07

$           

28.87

$           

31.39

$           

32.75

$           

29.77

$           

34.76

$           

36.65

$           

37.90

$           

38.89

$           

Natural Gas (per Mcf)

1.26

$             

1.18

$             

1.30

$             

1.42

$             

1.29

$             

1.57

$             

1.61

$             

1.64

$             

1.71

$             

EBITDAX

8.1

$               

5.5

$               

5.4

$               

6.8

$               

25.7

$             

7.0

$               

13.0

$             

18.1

$             

10.5

$             

Capex

(2.5)

-

-

(0.1)

(2.6)

(33.9)

(52.3)

(30.2)

-

Asset Sale Proceeds

-

-

-

145.0

145.0

-

-

-

-

Change in Working Capital:

4.1

$               

1.2

$               

2.2

$               

1.9

$               

9.4

$               

3.5

$               

4.7

$               

0.5

$               

(2.0)

$              

Unlevered Free Cash Flow

9.8

$               

6.6

$               

7.6

$               

153.5

$           

177.5

$           

(23.4)

$            

(34.6)

$            

(11.6)

$            

8.4

$               

Preliminary Cost-Saving Initiatives

Initiative

Commentary

1

Salary Reductions

Salary run rate 12/31/15:

$9.1 mm annually

Salary run rate 04/01/16:

$7.7 mm annually

Projected run rate 09/01/16:

$7.0 mm annually

Total Reduction: ±

$2.7mm / year with benefits

Close NYC Office 03/31/16

Close New Mexico Office 11/01/15

Streamline organization to ±

65 people

±

41 of the ±

65 field personal mostly billed out or capitalized

2

G&A Reduction

$500k insurance

$500k legal and $500k other

$200k sublet excess office space

Total Potential Reduction: $4.4 mm / year

D&A Amount and Rate Excessive

Legal fees for ongoing entity to be much lower

New York Office: $35,000/month sublease

Long Beach Office: $10,000/month sublease

$4.1 mm assumed reductions from 2015 in 2016 plan

3

LOE & Taxes

$5.0 mm / year UGI

renegotiation

$1.0 mm / year Compression Fee Reduction

$1.5 mm / year California Transportation fee

$1.0 mm / year taxes

$2.5 mm / year D&A

$1.0 mm / year deferred projects

Total Potential Reduction: $12.0 mm

Requested 2 year 50% reduction of $1.2mm / month

transportation fees on gross basis

In discussion with Energy Transfer

Phillips granted $1.20 / BO from $4.20 / BO previously

Seeking additional concessions of $1.0/BD

Reduced severance and ad valorem due to pricing

No D&A in California for property sales and defer other D&A

where possible

Only complete essential projects

$10.9 mm assumed from 2015 in 2016 plan

8

Health, Safety and Environmental Record

Company Wide

–

Zero lost time incidents (LTI) for 2015

California

–

Zero reportable spills for 2015

–

Notice of Violation (NOV) free for TTM

–

Compliant with both Federal OSHA and Cal/OSHA standards

Wyoming

–

No major spills throughout 2015

–

Detailed safety program in place since purchase of asset from previous owner

–

Continued stewardship and partnership with the Bureau of Land Management (BLM)

–

Operational deferrals due to strength of relationship with the BLM

Pennsylvania

–

Zero violations received by PA Department of Environmental Protection (DEP) in the last 12 months

–

Leading regional standards for Stormwater Waste Management

–

Closing location permits in order to maximize pad restoration while maintaining production levels

–

Outperforming industry standards in conjunction with largest lease owner, Proctor & Gamble

9

Management Overview

Previously served as President, CEO and Director of Dune Energy, Chairman and CEO of Maverick Oil & Gas,

Chairman and CEO of Remington Oil and Gas, VP –

Exploration of Seagull E&P and VP –

Exploration and

Exploitation of Nerco

Oil and Gas

Currently serves on the Board of Directors of Bonanza Creek Energy, where he is Chairman, and Helix Energy

Solutions

James Watt

President & CEO

Previously served as VP and CAO of Dune Energy

Also held roles as Operation Manager of Southwest Wholesale, Special Projects Coordinator and Accounting

Consultant of Citation Oil & Gas, Accounting Consultant of Black Stone Oil Company and Audit Manager of Arthur

Young & Company

John Powers

Vice President –

Accounting

Previously spent five years at Citrus, overseeing drilling and completion of all of Citrus’ 30 producing wells

Integral part of corporate strategy team at Citrus and was responsible for financial planning, engineering, geology

and geophysical, business development, and interfacing with Citrus’ reserve engineering firm in addition to his role

on the corporate strategy team

Zach Waite

Vice President –

Operations &

Business

Development

Over 33 years of oil & gas experience

During his time at Citrus, was responsible for Citrus’ land department and all land functions

Previously served as co-owner and Vice President of Dallas Operating Corp and as President of Corral Energy

Resources

Dan Collins

Vice President –

Land

Over 40 years of oil & gas experience

Served as SVP and CFO of Dune Energy, President and CFO of Sonoran Energy and SVP –

Finance and Corporate

Secretary of Remington Oil and Gas

Held positions of increasing responsibility in the energy banking departments of the Bank of Texas, First National

Bank of Boston and other major, publicly-traded U.S. financial institutions

Frank Smith, Jr.

Senior Vice President &

CFO

10

Review of Unencumbered Assets

11

Review of Unencumbered Assets

Asset

Commentary

Assets of and equity interests in Warren

Energy Services, LLC

Includes midstream assets in Wyoming, which comprise compression and dehydration facilities

and 59 miles of (6” and 8” steel) pipeline

Assets of Warren Development Corp.

Inactive; formed to facilitate certain joint ventures which were never consummated. No material

assets

Note that the Perfection Certificate delivered in connection with the First Lien Credit Agreement

lists this subsidiary as having a deposit account with JPMorgan Chase Bank as of May 22, 2015

Assets of Warren Drilling Corp.

Inactive; no material assets

Assets of Warren Management Corp.

Inactive; no material assets formed to facilitate certain transactions that were never

consummated

Warren Marcellus’s JPMorgan Chase

Bank deposit account, account number

622696115

Warren E&P executed the applicable control agreement

Perfection certificate says account actually owned by Warren Marcellus

The perfection issue would only be to the extent the assets in such deposit account are not

proceeds that are properly perfected under 9-315(c) and (d) of the NY UCC

Leroy Pine Prospect oil and gas leases or

wells owned by Warren California, Inc. and

located in Santa Barbara County, CA

No known, current oil production from such wells

Certain surface fee lots owned by Warren

Resources of California, Inc.

Potential reclamation liabilities exceed the value of the lots

Assets of Warren Operating, LLC

N/A

Office leases in California, New York,

Colorado, and Pennsylvania

N/A

Certain fractional non-operated oil and gas

interests (producing and non-producing) of

Warren E&P located in East Texas, New

Mexico, Colorado, North Dakota

N/A

12

APPENDIX A

EBITDAX

We define “EBITDAX” as net income (loss) plus (i) interest expense, (ii) depletion, depreciation and amortization, (iii) amortization of deferred financing costs, (iv) share-based compensation, (v) accretion of debt discounts, (vi) gain on derivative liability and (vii) other non-cash items, less (viii) interest income. The following tables present a reconciliation of EBITDAX to net income (loss) for each of the plans and periods indicated:

PLAN A

	Three Months Ended												Year Ended December 31,
	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016			2016			2017			2018			2019			2020
	(in thousands)
Net income (loss)	$	(11,619	)	$	(12,561	)	$	(9,051	)	$	(6,973	)	$	(40,204	)	$	(43,419	)	$	(43,036	)	$	(39,381	)	$	(31,815	)
Interest expense		10,898			9,250			5,863			5,970			31,981			24,923			26,614			28,529			30,720
Depletion, depreciation & amortization		9,150			8,444			7,889			7,439			32,922			38,124			46,579			50,785			38,166
Amortization of deferred financing costs		614			667			797			758			2,837			2,677			2,188			1,788			1,462
Share-based compensation		454			454			454			454			1,816			1,816			1,816			1,816			1,816
Accretion of debt discounts		53			53			53			53			212			214			214			214			214
Gain on derivative liability		(1,420	)		(849	)		(638	)		(857	)		(3,764	)		—			—			—			—
Other non-cash items		120			120			120			120			480			—			—			—			—
	$	8,250		$	5,578		$	5,487		$	6,964		$	26,280		$	24,336		$	34,376		$	43,752		$	40,563
Interest income		(124	)		(124	)		(124	)		(165	)		(537	)		(276	)		—			—			—
EBITDAX	$	8,126		$	5,454		$	5,363		$	6,799		$	25,743		$	24,060		$	34,376		$	43,752		$	40,563

PLAN B

	Three Months Ended												Year Ended December 31,
	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016			2016			2017			2018			2019			2020
	(in millions)
Net income (loss)	$	(11,639	)	$	(12,581	)	$	(9,071	)	$	(6,993	)	$	(40,283	)	$	(9,725	)	$	(8,519	)	$	(5,337	)	$	(5,571	)
Interest expense		10,898			9,250			5,863			5,966			31,979			—			—			—			—
Depletion, depreciation & amortization		9,150			8,444			7,889			7,439			32,922			12,824			17,622			19,579			12,538
Amortization of deferred financing costs		614			667			797			758			2,837			2,677			2,188			1,789			1,462
Share-based compensation		454			454			454			454			1,816			1,816			1,816			1,816			1,816
Accretion of debt discounts		53			53			53			53			214			214			214			214			214
Gain on derivative liability		(1,420	)		(849	)		(638	)		(857	)		(3,764	)		—			—			—			—
Other non-cash items		140			140			140			140			560			—			—			—			—
	$	8,250		$	5,579		$	5,487		$	6,965		$	26,281		$	7,807		$	13,322		$	18,061		$	10,459
Interest income		(124	)		(124	)		(124	)		(166	)		(538	)		(810	)		(368	)		—			—
EBITDAX	$	8,126		$	5,454		$	5,363		$	6,799		$	25,723		$	6,998		$	12,954		$	18,061		$	10,459