Amounts included in the table below are rounded to thousands.

	As of September 9, 2016
	Predecessor Company			Reorganization Adjustments				Fresh-Start Adjustments				Successor Company
Current assets:
Cash	$	111,464		$	(97,521	)	(1)	$	—			$	13,943
Accounts receivable		116,859			—				—				116,859
Receivables from derivative contracts		97,648			—				—				97,648
Restricted cash		17,164			—				—				17,164
Prepaids and other		8,961			—				(1,332	)	(7)		7,629

Total current assets		352,096			(97,521	)			(1,332	)			253,243

Oil and natural gas properties (full cost method):
Evaluated		7,712,003			—				(6,497,874	)	(8)		1,214,129
Unevaluated		1,193,259			—				(861,144	)	(8)		332,115

Gross oil and natural gas properties		8,905,262			—				(7,359,018	)			1,546,244
Less—accumulated depletion		(6,803,231	)		—				6,803,231		(8)		—

Net oil and natural gas properties		2,102,031			—				(555,787	)			1,546,244

Other operating property and equipment:
Gas gathering and other operating assets		100,079			—				(62,008	)	(9)		38,071
Less—accumulated depreciation		(24,154	)		—				24,154		(9)		—

Net other operating property and equipment		75,925			—				(37,854	)			38,071

Other noncurrent assets:
Receivables from derivative contracts		4,431			—				—				4,431
Funds in escrow and other		1,610			—				27		(10)		1,637

Total assets	$	2,536,093		$	(97,521	)		$	(594,946	)		$	1,843,626


Current liabilities:
Accounts payable and accrued liabilities	$	160,000		$	13,688		(2)	$	—			$	173,688
Liabilities from derivative contracts		102			—				—				102
Other		414			—				4,435		(11)(12)		4,849

Total current liabilities		160,516			13,688				4,435				178,639

Long-term debt, net		1,031,114			—				(14,954	)	(13)		1,016,160
Liabilities subject to compromise		2,007,703			(2,007,703	)	(3)		—				—
Other noncurrent liabilities:
Liabilities from derivative contracts		525			—				—				525
Asset retirement obligations		48,955			—				(16,799	)	(12)		32,156
Other		528			—				3,425		(11)(14)		3,953
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest		219,891			—				(178,821	)	(14)		41,070
Stockholders' equity:
Preferred stock (Predecessor)		—			—		(4)		—				—
Common Stock (Predecessor)		12			(12	)	(4)		—				—
Common Stock (Successor)		—			9		(5)		—				9
Additional paid-in capital (Predecessor)		3,287,906			(3,287,906	)	(4)		—				—
Additional paid-in capital (Successor)		—			571,114		(5)		—				571,114
Retained earnings (accumulated deficit)		(4,221,057	)		4,613,289		(6)		(392,232	)	(15)		—

Total stockholders' equity		(933,139	)		1,896,494				(392,232	)			571,123

Total liabilities and stockholders' equity	$	2,536,093		$	(97,521	)		$	(594,946	)		$	1,843,626

Reorganization adjustments

(1)

The table below details cash payments as of September 9, 2016, pursuant to the terms of the Plan described in Note 2, "Reorganization," (in thousands):

Payment to Third Lien Noteholders	$	33,826
Payment to Unsecured Noteholders		37,595
Payment to Convertible Noteholder		15,000
Payment to Preferred Holders		11,100

Total Uses	$	97,521

(2)

In connection with the chapter 11 bankruptcy, the Company modified and rejected certain office lease arrangements and paid approximately $3.4 million for these modifications and rejections subsequent to the emergence from chapter 11 bankruptcy. This amount also reflects $10.3 million paid to the Company's restructuring advisors subsequent to the emergence from chapter 11 bankruptcy.

(3)

Liabilities subject to compromise were as follows (in thousands):

13.0% senior secured third lien notes due 2022	$	1,017,970
9.25% senior notes due 2022		37,194
8.875% senior notes due 2021		297,193
9.75% senior notes due 2020		315,535
8.0% convertible note due 2020		289,669
Accrued interest		46,715
Office lease modification and rejection fees		3,427

Liabilities subject to compromise		2,007,703
Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder		(548,947	)
Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder		(86,421	)
Office lease modification and rejection fees		(3,427	)

Gain on settlement of Liabilities subject to compromise	$	1,368,908

(4)

Reflects the cancellation of Predecessor equity, as follows (in thousands):

Predecessor Company stock	$	3,287,918
Fair value of equity issued to Predecessor common stockholders		(22,176	)
Cash payment to Preferred Holders		(11,100	)

Cancellation of Predecessor Company equity	$	3,254,642

(5)

Reflects the issuance of Successor equity. In accordance with the Plan, the Successor Company issued 3.6 million shares of common stock to the Predecessor Company's existing common stockholders, 68.8 million shares of common stock to the Third Lien Noteholders, 14.0 million shares of common stock to the Unsecured Noteholders, and 3.6 million shares of common stock to the Convertible Noteholder. This amount is subject to dilution by warrants issued to the Unsecured Noteholders and the Convertible Noteholder totaling 4.7 million shares with an exercise price of $14.04 per share and a term of four years. The fair value of the warrants was estimated at $3.52 per share using a Black-Scholes-Merton valuation model.

(6)

The table below reflects the cumulative effect of the reorganization adjustments discussed above (in thousands):

Gain on settlement of Liabilities subject to compromise	$	1,368,908
Accrued reorganization items		(10,261	)
Cancellation of Predecessor Company equity		3,254,642

Net impact to retained earnings (accumulated deficit)	$	4,613,289

Fresh-start accounting adjustments

(7)

Reflects the reclassification of tubulars and well equipment to "Oil and natural gas properties."

(8)

In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating the fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 10.5% for proved reserves and 12.5% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices.

In estimating the fair value of the Company's unproved acreage that was not included in the valuation of probable and possible reserves, a market approach was used in which a review of recent transactions involving properties in the same geographical location indicated the fair value of the Company's unproved acreage from a market participant perspective.

(9)

In estimating the fair value of its gas gathering and other operating assets, the Company used a combination of the income, cost, and market approaches.

For purposes of estimating the fair value of its gas gathering assets, an income approach was used that estimated future cash flows associated with the assets over the remaining useful lives. The valuation included such inputs as estimated future production, gathering and compression revenues, and operating expenses that were discounted at a weighted average cost of capital rate of 9.5%.

For purposes of estimating the fair value of its other operating assets, the Company used a combination of the market and cost approaches. A market approach was relied upon to value land and computer equipment, and in this valuation approach, recent transactions of similar assets were utilized to determine the value from a market participant perspective. For the remaining other operating assets, a cost approach was used. The estimation of fair value under the cost approach was based on current replacement costs of the assets, less depreciation based on the estimated economic useful lives of the assets and age of the assets.

(10)

Reflects the adjustment of the Company's equity method investment in SBE Partners, L.P. to fair value based on an income approach, which calculated the discounted cash flows of the Company's share of the partnership's interest in oil and gas proved reserves. The anticipated cash flows of the reserves were risked by reserve category and discounted at 10.5%. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices.

(11)

Records an intangible liability of approximately $8.3 million, $4.5 million of which was recorded as current, to adjust the Company's active rig contract to fair value at September 9, 2016. The intangible liability will be amortized over the remaining life of the contract through July 2018.

(12)

Reflects the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of September 9, 2016, adjusted for inflation and then discounted at the appropriate credit-adjusted risk free rate ranging from 5.5% to 6.6% depending on the life of the well. The fair value of asset retirement obligations was estimated at $32.5 million, approximately $0.3 million of which was recorded as current. Refer to Note 9, "Asset Retirement Obligations" for further details of the Company's asset retirement obligations.

(13)

Reflects the adjustment of the 2020 Second Lien Notes and the 2022 Second Lien Notes to fair value. The fair value estimate was based on quoted market prices from trades of such debt on September 9, 2016. Refer to Note 6, "Debt" for definitions of and further information regarding the 2020 Second Lien Notes and 2022 Second Lien Notes.

(14)

Reflects the adjustment of the Company's redeemable noncontrolling interest and related embedded derivative of HK TMS, LLC to fair value. The fair value of the redeemable noncontrolling interest was estimated at $41.1 million and the embedded derivative was estimated at zero. For purposes of estimating the fair values, an income approach was used that estimated fair value based on the anticipated cash flows associated with HK TMS, LLC's proved reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 12.5%. The value of the redeemable noncontrolling interest was further reduced by a probability factor of the potential assignment of the common shares of HK TMS, LLC to Apollo Global Management, which occurred subsequent to the fresh-start date. Refer to Note 4, "Acquisitions and Divestitures," for further information regarding the divestiture of HK TMS, LLC on September 30, 2016.

(15)

Reflects the cumulative effect of the fresh-start accounting adjustments discussed above.