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Alta Mesa Announces Fourth Quarter & Full Year 2016 Financial Results and Operational Update

HOUSTON, March 30, 2017 (GLOBE NEWSWIRE) -- Alta Mesa Holdings, LP announced its financial results for the fourth quarter and full year of 2016 and provided highlights of its recent operations. A conference call to discuss these results is scheduled for today at 2 p.m. Central time (888-347-8149).

Financial and operational highlights of note for 2016 include the following:

  • SEC proved reserves increased from 78.5 MMBOE at year-end 2015 to 138.8 MMBOE at year-end 2016; year-end proved reserves based on 12/31/2016 NYMEX strip were 153.8 MMBOE

  • Total Company Lease Operating Expense per BOE reduced by 21% in 2016, compared to 2015

  • Deleveraged balance sheet by retiring $125 million term loan and paid down a portion of our revolving credit facility with contribution of $300 million from High Mesa Inc.

  • Retired $450 million 9.625% senior notes due 2018 by issuing $500 million 7.875% senior notes due 2024

  • Expanded STACK leasehold to approximately 100,000 net acres

  • Alta Mesa’s Class B limited partner, High Mesa Inc., contributed additional working interests in 24 producing STACK wells, adding 4.3 MBOE per day, effective October 1, 2016

  • Total Company production for the fourth quarter and full year 2016, including the pro forma effect of the interest in the 24 contributed producing wells, averaged 25.3 MBOE per day and 21.9 MBOE per day, respectively

  • STACK production, including the pro forma effect of the interest in the 24 contributed producing wells, averaged 19.4 MBOE per day for the fourth quarter of 2016

  • Total Company Net Loss for the full year 2016 totaled $167.9 million

  • Total Company Adjusted EBITDAX for the full year 2016 totaled $172.9 million

Financial and Production Highlights

Net Loss for the fourth quarter of 2016 was ($47.0) million, compared to a net loss of ($76.2) million for the fourth quarter of 2015. Net Loss for full-year 2016 was ($167.9) million, compared to net loss of ($131.8) million for full-year 2015. On December 31, 2016, effective October 1, 2016, High Mesa Inc. (Alta Mesa’s Class B limited partner) purchased and contributed to Alta Mesa, additional working interests in 24 producing wells funded under the joint development agreement with BCE-STACK Development LLC (“BCE”).  Including the pro forma effects of the BCE transaction, the net loss for the fourth quarter and full year 2016 was ($40.5) million and ($157.2) million, respectively.

Adjusted earnings before interest, income taxes, depreciation, depletion and amortization and exploration costs ("Adjusted EBITDAX") for the fourth quarter of 2016 was $39.4 million, compared to $55.8 million for the fourth quarter of 2015. Adjusted EBITDAX for full-year 2016 was $172.9 million compared to $211.8 million for full-year 2015. The change in adjusted EBITDAX between the annual periods is, in part, a result of lower average commodity prices, offset in part by increased production and decreased operating and general and administrative costs.  Adjusted EBITDAX for the fourth quarter of 2016 would have been $50.7 million pro forma for the BCE transaction. Adjusted EBITDAX for the first quarter of 2017 is estimated to be between $38 and $41 million. Adjusted EBITDAX is a Non-GAAP financial measure and is described in the attached table under “Non-GAAP Financial Information and Reconciliation.”

Total Company production volumes in the fourth quarter of 2016 totaled 1.9 MMBOE, or an average of 21.0 MBOE per day compared to 1.6 MMBOE or 17.4 MBOE per day in the fourth quarter of 2015. Including the pro forma effects of the BCE transaction, total company production volumes in the fourth quarter of 2016 were 2.3 MMBOE, or an average of 25.3 MBOE per day (19.4 MBOE per day from the STACK). Production volumes for full-year 2016 totaled 7.3 MMBOE, or an average of 20.0 MBOE per day, compared to 6.9 MMBOE or 18.8 MBOE per day for full-year 2015. Including the pro forma effects of the BCE transaction, production volumes for full-year 2016 would have been 8.0 MMBOE, or an average of 21.9 MBOE per day. The increase in production is primarily a result of the continued successful development of Alta Mesa’s STACK play in Kingfisher County, Oklahoma. Production in 2016 was comprised of 55% oil, 32% natural gas and 13% natural gas liquids. Production in the first quarter of 2017 is expected to average between 23 and 25 MBOE per day.

Revenue from the sale of oil, natural gas and natural gas liquids for the fourth quarter of 2016 totaled $64.2 million, compared to $48.3 million for the fourth quarter of 2015. Oil, natural gas and natural gas liquids revenues for full-year 2016 totaled $210.3 million compared to $241.3 million for full-year 2015. Realized prices for oil (including settlements of derivative contracts) for the fourth quarter of 2016 were $52.50 per barrel, compared to $69.46 per barrel in the fourth quarter of 2015. Realized prices for natural gas (including settlements of derivative contracts) for the fourth quarter of 2016 were $2.65 per MCF, compared to $2.35 per MCF in the fourth quarter of 2015. Realized prices for oil (including settlements of derivative contracts) for full year 2016 were $61.53 per barrel, compared to $67.73 per barrel in 2015. Realized prices for natural gas (including settlements of derivative contracts) for full year 2016 were $2.68 per MCF, compared to $4.43 per MCF in 2015.

Production costs, which includes lease operating expense, marketing and transportation costs, production and ad valorem taxes and workover expenses, in the fourth quarter of 2016 were $21.1 million, or $10.87 per BOE, compared to $23.1 million, or $14.40 per BOE in the fourth quarter of 2015. For the full year 2016, production costs were $85.7 million, or $11.76 per BOE, compared to $93.4 million, or $13.60 per BOE for the full year 2015.

General and administrative costs in the fourth quarter of 2016 were $8.9 million, compared to $(0.9) million in the fourth quarter of 2015. The fourth quarter 2015 included a non-cash bonus accrual reversal. General and administrative expenses for full-year 2016 were $41.8 million compared to $44.5 million for full-year 2015.

Reserves for 2016

The following table represents the change in proved reserves for 2016 (MBOE):

Balance at 12/31/15  78,483  
  Production  (7,284 )
  Purchases in place    3,247  
  Discoveries and extensions  69,679  
  Sales of reserves in place    (244 )
  Revisions    (5,124 )
Balance at 12/31/16   138,757  

Approximately 29% are proved developed reserves. Reserves at the end of 2016 are comprised of 42% oil, 38% natural gas and 20% natural gas liquids. Approximately 93% of the Company’s proved reserves are in Alta Mesa’s Oklahoma STACK play. Total proved reserves at 12/31/16 NYMEX prices total 153.8 MMBOE

2017 Capital Expenditure Outlook
The Company's capital expenditure budget for 2017 is estimated to be $290 million, up 28% compared to capital expenditures of $226 million in 2016. Approximately 95% of 2017 capital expenditures will be allocated to develop the Company's primary core asset in the STACK play in Kingfisher County Oklahoma. The balance of the capital expenditure budget is for Weeks Island and all other areas.

Operational Highlights

STACK Play, Oklahoma

In Alta Mesa’s Oklahoma STACK play, the Company has assembled a highly contiguous leasehold position which has grown from approximately 45,000 net acres in early 2015 to approximately 100,000 net acres at the end of 2016. This position is characterized by multiple productive zones located at total vertical depths between 4,000 feet and 8,000 feet. The Company is currently operating six horizontal drilling rigs with plans to utilize up to eight drilling rigs by the end of 2017, targeting the Mississippian-age Osage, Meramec, and Manning formations and the Pennsylvanian-age Oswego formation.

During 2016, Alta Mesa spent approximately $209 million in this area for the drilling and completion of wells, in addition to other expenditures for facilities and acquisition of leaseholds.  For 2017, the Company has allocated approximately 95% of its 2017 capital expenditure budget, including acquisitions, to the STACK. In 2017, Alta Mesa plans to drill and complete up to 150 gross wells in the STACK, which is inclusive of approximately 42 gross wells expected to be funded by the Company’s joint development partner, BCE through the joint development agreement.

SEC proved reserves in the Company’s STACK play grew from 67 MMBOE at the end of 2015 to approximately 130 MMBOE at the end of 2016.  Net daily production in this area averaged 15,100 BOE per day for the fourth quarter of 2016, up 60% from approximately 9,450 BOE per day in the fourth quarter of 2015. Net daily production in the fourth quarter of 2016 from the STACK area would have been approximately 19,400 BOE per day, pro-forma the BCE transaction, up 105%. During 2016, Alta Mesa produced approximately 4,750 MBOE from this area, up 48% from approximately 3,200 MBOE in 2015. Full year 2016 production from the STACK area would have been approximately 5,500 MBOE, pro-forma for the BCE transaction, up 70%.

Weeks Island

The Weeks Island Area, located in Iberia and St. Mary Parish, Louisiana consists of the historically prolific Weeks Island and Cote Blanche Island fields. As of December 31, 2016, Alta Mesa had a 96% average working interest in a total of 57 gross producing wells. Average daily production from the Weeks Island Area in the fourth quarter of 2016 was approximately 2,600 BOE per day with the full year 2016 average of approximately 3,400 BOE per day. 

Conference Call Information
Alta Mesa invites you to listen to its conference call which will discuss its financial and operational results at 2:00 p.m., Central time, on Thursday, March 30, 2017. If you wish to participate in this conference call, dial 888-347-8149 (toll free in US/Canada) or 412-902-4228 (for International calls), five to ten minutes before the scheduled start time (note that no conference ID is needed). A webcast of the call and any related materials will be available on Alta Mesa’s website at www.altamesa.net. Additionally, a replay of the conference call will be available for one week following the live broadcast by dialing 844-512-2921 (toll free in US/Canada) or 412-317-6671 (International calls), and referencing Conference ID #10103456.

Alta Mesa Holdings, LP is a privately held company engaged primarily in onshore oil and natural gas acquisition, exploitation, exploration and production whose focus is to maximize the profitability of our assets in a safe and environmentally sound manner.  We seek to maintain a portfolio of lower risk properties in plays with known resources where we identify a large inventory of lower risk drilling, development, and enhanced recovery and exploitation opportunities. Our core properties are located in Oklahoma and Louisiana. We maximize the profitability of our assets by focusing on sound engineering, enhanced geological techniques including 3-D seismic analysis, and proven drilling, stimulation, completion, and production methods. Alta Mesa Holdings, LP is headquartered in Houston, Texas.

Safe Harbor Statement and Disclaimer
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, regarding Alta Mesa’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could”, “should”, “will”, “play”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Alta Mesa’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Forward-looking statements may include statements about Alta Mesa’s: business strategy; reserves quantities and the present value of its reserves; financial strategy, liquidity and capital required for its development program;  future oil and natural gas prices; timing and amount of future production of oil and natural gas; hedging strategy and results; future drilling plans; marketing of oil and natural gas; leasehold or business acquisitions; costs of developing its properties; liquidity and access to capital; uncertainty regarding its future operating results; and plans, objectives, expectations and intentions contained in this press release that are not historical. Alta Mesa cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond its control, incident to the exploration for and development and production of oil and natural gas. These risks include, but are not limited to, commodity price volatility, low prices for oil and/or natural gas, global economic conditions, inflation, increased operating cost, lack of availability of drilling and production equipment and services, environmental risks, weather risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and other risks. Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reservoir engineers. Specifically, future prices received for production and costs may vary, perhaps significantly, from the prices and costs assumed for purposes of these estimates.  Prices for oil or gas began a severe decline in the third quarter of 2014 current prices for oil are significantly less than they have been over the last several years. Sustained lower prices will cause the twelve month weighted average price to decrease over time as the lower prices are reflected in the average price, which may result in the estimated quantities and present values of Alta Mesa’s reserves being reduced. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, Alta Mesa’s actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we may issue. Except as otherwise required by applicable law, Alta Mesa disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.             

 

 

ALTA MESA HOLDINGS, LP AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 
(unaudited)
                 
  Year Ended
  December 31,
  2016      2015     2014  
                 
  (in thousands)
OPERATING REVENUES AND OTHER                
Oil $ 163,677     $ 199,799     $ 347,842  
Natural gas   30,953       30,621       65,002  
Natural gas liquids   15,663       10,864       18,281  
Other revenues   415       682       1,003  
Total operating revenues   210,708       241,966       432,128  
Gain on sale of assets   3,542       67,781       87,520  
Gain (loss) on derivative contracts   (40,460 )     124,141       96,559  
Total operating revenues and other   173,790       433,888       616,207  
OPERATING EXPENSES                
Lease and plant operating expense   56,893       67,706       64,686  
Marketing and transportation expense   13,326       4,030       9,134  
Production and ad valorem taxes   10,750       15,131       28,214  
Workover expense   4,714       6,511       8,961  
Exploration expense   24,777       42,718       61,912  
Depreciation, depletion, and amortization expense   92,901       143,969       141,804  
Impairment expense   16,306       176,774       74,927  
Accretion expense   2,174       2,076       2,198  
General and administrative expense   41,758       44,454       69,198  
Total operating expenses   263,599       503,369       461,034  
INCOME (LOSS) FROM OPERATIONS   (89,809 )     (69,481 )     155,173  
OTHER INCOME (EXPENSE)                
Interest expense   (60,884 )     (62,473 )     (55,812 )
Interest income   894       723       15  
Loss on extinguishment of debt   (18,151 )            
Total other income (expense)   (78,141 )     (61,750 )     (55,797 )
INCOME (LOSS) BEFORE STATE INCOME TAXES   (167,950 )     (131,231 )     99,376  
Provision for (benefit from) state income taxes   (29 )     562       176  
NET INCOME (LOSS) $ (167,921 )   $ (131,793 )   $ 99,200  

 

 

 ALTA MESA HOLDINGS, LP AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS     
 
(unaudited)
  December 31,   December 31,
  2016    2015  
  (in thousands)
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents $ 7,185   $ 8,869  
Short-term restricted cash   433     105  
Accounts receivable, net of allowance of $889 and $1,402, respectively   37,611     27,111  
Other receivables   8,061     18,526  
Receivables due from affiliate   8,883     1,053  
Prepaid expenses and other current assets   3,986     4,774  
Derivative financial instruments   83     62,631  
Total current assets   66,242     123,069  
PROPERTY AND EQUIPMENT          
Oil and natural gas properties, successful efforts method, net   712,162     525,942  
Other property and equipment, net   9,731     11,097  
Total property and equipment, net   721,893     537,039  
OTHER ASSETS          
Investment in LLC — cost   9,000     9,000  
Deferred financing costs, net   3,029     1,199  
Notes receivable due from affiliate   9,987     9,213  
Deposits and other long-term assets   2,977     1,370  
Derivative financial instruments   723     41,635  
Total other assets   25,716     62,417  
TOTAL ASSETS $ 813,851   $ 722,525  
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)          
CURRENT LIABILITIES          
Accounts payable and accrued liabilities $ 84,234   $ 82,621  
Advances from non-operators   4,058     1,381  
Advances from related party   42,528      
Asset retirement obligations   376     729  
Derivative financial instruments   21,207      
Total current liabilities   152,403     84,731  
LONG-TERM LIABILITIES          
Asset retirement obligations, net of current portion   61,128     60,491  
Long-term debt, net   529,905     717,775  
Notes payable to founder   26,957     25,748  
Derivative financial instruments   4,482      
Other long-term liabilities   6,870     10,829  
Total long-term liabilities   629,342     814,843  
TOTAL LIABILITIES   781,745     899,574  
Commitments and Contingencies          
PARTNERS' CAPITAL (DEFICIT)   32,106     (177,049 )
TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 813,851   $ 722,525  



 ALTA MESA HOLDINGS, LP AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
                 
  Year Ended December 31,
  2016      2015     2014  
                 
  (in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net income (loss) $  (167,921 )   $  (131,793 )   $  99,200  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:            
Depreciation, depletion, and amortization expense    92,901        143,969        141,804  
Impairment expense    16,306        176,774        74,927  
Accretion expense    2,174        2,076        2,198  
Amortization of deferred financing costs    3,905        3,392        2,885  
Amortization of debt discount    468        510        510  
Dry hole expense    419        22,708        30,294  
Expired leases    11,158        6,526        4,319  
(Gain) loss on derivative contracts    40,460        (124,141 )      (96,559 )
Settlements of derivative contracts    88,689        106,949        9,493  
Loss on extinguishment of debt    18,151        —        —  
Interest converted into debt    1,209        1,208        1,209  
Interest on notes receivable due from affiliate    (774 )      (713 )      —  
Gain on sale of assets    (3,542 )      (67,781 )      (87,520 )
Changes in assets and liabilities:                
Restricted cash unrelated to property divestiture    (328 )      —        (106 )
Accounts receivable    (10,500 )      16,470        (95 )
Other receivables    10,465        (10,288 )      (5,686 )
Receivables due from affiliate    45        (1,725 )      —  
Prepaid expenses and other non-current assets    (819 )      (2,269 )      7,251  
Advances from related party    42,528        —        —  
Settlement of asset retirement obligation    (2,125 )      (1,794 )      (3,942 )
Accounts payable, accrued liabilities, and other liabilities    (11,493 )      3,900        4,702  
NET CASH PROVIDED BY OPERATING ACTIVITIES    131,376        143,978        184,884  
CASH FLOWS FROM INVESTING ACTIVITIES:                
Capital expenditures for property and equipment    (214,061 )      (223,604 )      (366,090 )
Acquisitions    (11,527 )      (48,202 )      (18,110 )
Proceeds from sale of property    1,290        141,404        177,476  
Proceeds from property divestiture classified as restricted cash    —        —        41,590  
Investment in restricted cash related to property divestitures    —        24,587        (24,587 )
NET CASH USED IN INVESTING ACTIVITIES    (224,298 )      (105,815 )      (189,721 )
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from long-term debt    222,557        252,500        169,500  
Repayments of long-term debt    (333,935 )      (295,020 )      (169,270 )
Repayments of senior secured term loan    (127,708 )      —        —  
Repurchase of senior notes due 2018    (459,391 )      —        —  
Proceeds from issuance of senior notes due 2024    500,000        —        —  
Additions to deferred financing costs    (13,747 )      (4,313 )      (42 )
Capital distributions    —        (3,810 )      (539 )
Capital contributions    303,462        20,000        —  
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES    91,238        (30,643 )      (351 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS    (1,684 )      7,520        (5,188 )
CASH AND CASH EQUIVALENTS, beginning of period    8,869        1,349        6,537  
CASH AND CASH EQUIVALENTS, end of period $  7,185     $  8,869     $  1,349  


Prices

Below is a table of average prices received by the Company, with and without the effect of derivative contract settlements.

Average Prices excluding derivative contract settlements   2016   2015
Oil (per Bbl) $ 40.91 $ 47.54
Natural Gas (per Mcf)   2.22   2.57
Natural Gas Liquids (per Bbl)   16.38   16.01
Combined (per BOE)   28.87   35.15
 

Average Prices including derivative contract settlements
   

2016
   

2015
Oil (per Bbl) $ 61.53 $ 67.73
Natural Gas (per Mcf)   2.68   4.43
Natural Gas Liquids (per Bbl)   16.04   16.01
Combined realized (per BOE)   41.05   50.73
     

*Non-GAAP Financial Information and Reconciliation

Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income/(loss) before interest expense, exploration expense, depletion, depreciation and amortization, impairment of oil and natural gas properties, accretion of asset retirement obligations, tax expense, gains/loss on sale of assets and the non-cash portion of gain/loss on oil, natural gas and natural gas liquids derivative contracts. Alta Mesa’s management believes Adjusted EBITDAX is useful because it allows external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate our operating performance, compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure and because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures. Adjusted EBITDAX is not a measurement of Alta Mesa’s financial performance under GAAP, and should not be considered as an alternative to net income (loss), operating income (loss) or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of Alta Mesa’s profitability or liquidity. Adjusted EBITDAX has significant limitations, including that it does not reflect Alta Mesa’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. In addition, other companies may calculate Adjusted EBITDAX differently than Alta Mesa does, limiting its usefulness as a comparative measure. The pro forma adjustments included in the Non-GAAP Financial Reconciliation are the effect of the contribution of the interest in 24 wells made on December 31, 2016, had the contribution occurred at January 1, 2016. The following table sets forth a reconciliation of net income (loss) as determined in accordance with GAAP to Adjusted EBITDAX for the periods indicated (unaudited in thousands).


  Three Months Ended Dec 31,
    2016   Adj. Pro Forma     2015  
Net income/(loss) $ (46,961 ) $ 6,419 $ (40,542 )   $ (76,154 )
Adjustments to net loss:          
Benefit for income taxes   (136 )     (136 )     (329 )
Interest expense   8,631       8,631       16,075  
Loss on extinguishment of debt   18,151       18,151       -  
Unrealized loss (gain) - oil & gas hedges   21,340       21,340       (11,162 )
Exploration expense   9,473       9,473       5,552  
Depreciation, depletion and amortization   26,045     4,917   30,962       32,052  
Impairment expense   2,067       2,067       90,480  
Accretion expense   559       559       497  
(Gain)/loss on sale of assets   181       181       (1,260 )
Adjusted EBITDAX $ 39,350   $ 11,336 $ 50,686     $ 55,751  


  Twelve Months Ended Dec 31,
    2016   Adj. Pro Forma     2015  
Net income/(loss) $ (167,921 ) $ 10,691 $ (157,230 )   $ (131,793 )
Adjustments to net loss:          
Provision (benefit) for income taxes   (29 )     (29 )     562  
Interest expense   60,884       60,884       62,473  
Loss on extinguishment of debt   18,151       18,151       -  
Unrealized loss (gain) - oil & gas hedges   129,149       129,149       (17,192 )
Exploration expense   24,777       24,777       42,718  
Depreciation, depletion and amortization   92,901     9,115   102,016       143,969  
Impairment expense   16,306       16,306       176,774  
Accretion expense   2,174       2,174       2,076  
Gain/Loss on sale of assets   (3,542 )     (3,542 )     (67,781 )
Adjusted EBITDAX $ 172,850   $ 19,806 $ 192,656     $ 211,806  


FOR MORE INFORMATION CONTACT: Lance L. Weaver (281) 943-5597 lweaver@altamesa.net

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