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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net income $ 11,386 $ 15,741
Adjustments to reconcile net income to net cash flows provided by operating activities:    
Depreciation and amortization expense 8,167 6,789
Deferred income taxes (87) 841
Stock based compensation 1,367 618
Amortization of deferred financing costs 248 117
Change in Fair Value of Earnout Liabilities 1,936 1,000
Bad debt expense 356 907
Loss on derivatives, net 21,456 9,749
Current period cash settlements on derivatives, net (6,178) (10,457)
Accretion of discount to convertible subordinated notes to affiliate 1,004 35
Other 7 235
Changes in assets and liabilities:    
Decrease in accounts receivable 3,381 5,060
Increase in accounts receivable—affiliates (55) (273)
Decrease in inventory 3,322 3,484
Increase in customer acquisition costs (7,690) (2,305)
Increase in prepaid and other current assets (1,597) (1,180)
Decrease in other assets 0 265
Decrease in accounts payable and accrued liabilities (9,348) (7,340)
(Decrease) increase in accounts payable—affiliates (558) 1,949
(Decrease) increase in other current liabilities (2,413) 156
(Decrease) increase in other non-current liabilities (324) 111
Net cash provided by operating activities 24,380 25,502
Cash flows from investing activities:    
Purchases of property and equipment (112) (665)
Payment of the Major Energy Companies Earnout (7,403) 0
Payment of the Provider Companies Earnout and Installment Note (2,097) 0
Contribution to equity method investment in eRex Spark 0 (168)
Net cash used in investing activities (9,612) (833)
Cash flows from financing activities:    
Proceeds from issuance of Series A Preferred Stock, net of issuance costs 38,607 0
Borrowings on notes payable 5,625 0
Payments on notes payable (46,993) (18,825)
Proceeds from disgorgement of stockholders short-swing profits 666 0
Payment of dividends to Class A common stockholders (2,355) (1,493)
Payment of distributions to non-controlling unitholders (4,347) (5,876)
Net cash used in financing activities (8,797) (26,194)
Increase in cash and cash equivalents 5,971 (1,525)
Cash and cash equivalents—beginning of period 18,960 4,474
Cash and cash equivalents—end of period 24,931 2,949
Property and equipment purchase accrual 76 57
Tax impact from tax receivable agreement upon exchange of units of Spark HoldCo, LLC to shares of Class A Common Stock 0 1,707
Cash paid during the period for:    
Interest 888 539
Taxes $ 118 $ 842