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

Exhibit 99.2

Warren Resources, Inc.,et al.

Initial Budget

DRAFT: Subject to Material Revision

Report Date: 06/02/16

	Week ending	Jun-05			Jun-12			Jun-19			Jun-26			Jul-03			Jul-10			Jul-17			Jul-24			Jul-31			Aug-07			Aug-14			Aug-21			Aug-28			Sep-04
United States Dollar ($ Million)	Period	1			2			3			4			5			6			7			8			9			10			11			12			13			14
Production Receipts			0.0			0.0			—			4.5			—			0.0			—			3.2			1.8			—			0.0			3.3			2.3			—
Joint Interest Billing Receipts			—			—			—			0.5			—			—			—			0.4			—			—			—			0.4			—			—
Hedge Proceeds and Other Operating Receipts			—			1.3			—			0.2			—			1.3			—			—			0.2			1.0			0.0			—			0.2			—
Total Operating Receipts			0.0			1.3			—			5.2			—			1.3			—			3.6			2.0			1.0			0.1			3.7			2.5			—
Lease operating expenses			—			(1.0	)		(1.3	)		—			(2.1	)		—			(1.9	)		—			(2.8	)		—			—			(1.6	)		—			(2.0	)
Ad Valorem Taxes			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Severance Taxes			—			—			—			—			(0.0	)		—			—			—			(0.0	)		—			(0.2	)		—			(0.0	)		—
Royalties			—			(0.9	)		—			—			(1.2	)		—			—			—			(1.2	)		—			—			—			—			(1.4	)
General and administrative expense			(0.0	)		(0.3	)		(0.3	)		—			(0.8	)		—			(0.4	)		—			(0.7	)		—			—			(0.4	)		—			(0.2	)
Salaries			—			(0.3	)		—			(0.3	)		—			(0.3	)		—			(0.3	)		—			(0.3	)		—			(0.3	)		—			(0.3	)
Total Operating Disbursements			(0.0	)		(2.5	)		(1.6	)		(0.3	)		(4.1	)		(0.3	)		(2.3	)		(0.3	)		(4.8	)		(0.3	)		(0.2	)		(2.3	)		(0.0	)		(3.9	)
Net Cash Flow From Operations			0.0			(1.2	)		(1.6	)		4.9			(4.1	)		1.0			(2.3	)		3.3			(2.8	)		0.7			(0.2	)		1.4			2.5			(3.9	)
Debt Service			—			—			—			—			(0.0	)		—			—			—			(0.0	)		—			—			—			—			(0.6	)
Restructuring Disbursements			(0.8	)		(0.4	)		—			—			(6.2	)		—			(0.0	)		—			(3.4	)		—			—			��			—			(3.4	)
Total Non-Operating Disbursements			(0.8	)		(0.4	)		—			—			(6.2	)		—			(0.0	)		—			(3.4	)		—			—			—			—			(4.0	)
Net Cash Flow			(0.8	)		(1.6	)		(1.6	)		4.9			(10.3	)		1.0			(2.4	)		3.3			(6.3	)		0.7			(0.2	)		1.4			2.5			(7.9	)
Debtor-In-Possession Facility Drawdown			—			—			—			—			—			—			—			—			—			—			—			—			—			4.0
Movement in Restricted Cash			—			10.0			—			—			—			—			—			—			—			—			—			—			—			—
Opening Cash Balance			3.8			3.0			11.4			9.8			14.7			4.4			5.4			3.0			6.3			0.1			0.8			0.6			2.0			4.5
Ending Cash Balance			3.0			11.4			9.8			14.7			4.4			5.4			3.0			6.3			0.1			0.8			0.6			2.0			4.5			0.6
Restricted Cash			10.0			—			—			—			—			—			—			—			—			—			—			—			—			—
Debtor-In-Possession Facility Availability			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			20.0			16.0

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Warren Resources, Inc.,et al.

Initial Budget

DRAFT: Subject to Material Revision

Report Date: 06/02/16

	Week ending	Sep-11		Sep-18			Sep-25			Oct-02			Oct-09		Oct-16			Oct-23		Oct-30			Nov-06			Nov-13			Nov-20			Nov-27			Dec-04			Total ending
United States Dollar ($ Million)	Period	15		16			17			18			19		20			21		22			23			24			25			26			27			period - 27
Production Receipts			0.0		—			5.9			—			—		0.0			3.3		2.7			—			0.1			3.3			2.9			—			33.5
Joint Interest Billing Receipts			—		—			0.4			—			—		—			0.4		—			—			—			0.3			—			—			2.4
Hedge Proceeds and Other Operating Receipts			0.9		—			0.2			—			0.8		—			—		0.2			0.8			—			—			0.2			—			7.2
Total Operating Receipts			0.9		—			6.5			—			0.8		0.0			3.7		2.9			0.8			0.1			3.6			3.1			—			43.1
Lease operating expenses			—		(1.6	)		—			(2.0	)		—		(1.6	)		—		(1.5	)		—			—			(1.6	)		—			(1.2	)		(22.3	)
Ad Valorem Taxes			—		—			—			—			—		—			—		(1.6	)		—			—			—			—			—			(1.6	)
Severance Taxes			—		—			(0.0	)		(0.0	)		—		—			—		(0.0	)		(0.0	)		—			—			—			(0.0	)		(0.4	)
Royalties			—		—			—			(1.6	)		—		—			—		(1.7	)		—			—			—			—			(1.7	)		(9.7	)
General and administrative expense			—		(0.4	)		—			(0.2	)		—		(0.4	)		—		(0.3	)		—			—			(0.4	)		—			(0.2	)		(4.9	)
Salaries			—		(0.3	)		—			(0.3	)		—		(0.3	)		—		(0.3	)		—			(0.3	)		—			(0.3	)		—			(3.9	)
Total Operating Disbursements			—		(2.3	)		(0.0	)		(4.1	)		—		(2.3	)		—		(5.4	)		(0.0	)		(0.3	)		(1.9	)		(0.3	)		(3.2	)		(43.0	)
Net Cash Flow From Operations			0.9		(2.3	)		6.4			(4.1	)		0.8		(2.3	)		3.7		(2.5	)		0.7			(0.2	)		1.7			2.8			(3.2	)		0.2
Debt Service			—		—			—			(0.1	)		—		—			—		—			(0.3	)		—			—			—			(0.1	)		(1.1	)
Restructuring Disbursements			—		—			—			(3.4	)		—		—			—		(3.4	)		—			—			—			—			(10.8	)		(31.9	)
Total Non-Operating Disbursements			—		—			—			(3.5	)		—		—			—		(3.4	)		(0.3	)		—			—			—			(10.9	)		(33.0	)
Net Cash Flow			0.9		(2.3	)		6.4			(7.6	)		0.8		(2.3	)		3.7		(5.9	)		0.4			(0.2	)		1.7			2.8			(14.1	)		(32.9	)
Debtor-In-Possession Facility Drawdown			—		1.0			—			1.0			—		2.0			—		2.0			—			—			—			—			10.0			20.0
Movement in Restricted Cash			—		—			—			—			—		—			—		—			—			—			—			—			—			10.0
Opening Cash Balance			0.6		1.6			0.3			6.7			0.1		0.9			0.6		4.3			0.3			0.8			0.5			2.2			5.0			3.8
Ending Cash Balance			1.6		0.3			6.7			0.1			0.9		0.6			4.3		0.3			0.8			0.5			2.2			5.0			0.9			0.9
Restricted Cash			—		—			—			—			—		—			—		—			—			—			—			—			—			—
Debtor-In-Possession Facility Availability			16.0		15.0			15.0			14.0			14.0		12.0			12.0		10.0			10.0			10.0			10.0			10.0			—			—

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