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gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 580.61455078125 m 192.02685546875 580.61455078125 l s q 0 0 1 rg BT 149.00 581.90 Td (Production) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 566.61455078125 m 215.8583984375 566.61455078125 l s q 0 0 1 rg BT 149.00 567.90 Td (Productive W) Tj ET Q q 0 0 1 rg BT 202.35 567.90 Td (ells) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 552.61455078125 m 272.55224609375 552.61455078125 l s q 0 0 1 rg BT 149.00 553.90 Td (Drilling and Completion ) Tj ET Q q 0 0 1 rg BT 244.05 553.90 Td (Activity) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 538.61455078125 m 182.521484375 538.61455078125 l s q 0 0 1 rg BT 149.00 539.90 Td (Acreage) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 524.61455078125 m 239.51416015625 524.61455078125 l s q 0 0 1 rg BT 149.00 525.90 Td (Delivery Commitments) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 510.61455078125 m 217.51513671875 510.61455078125 l s q 0 0 1 rg BT 149.00 511.90 Td (Major Customers) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 496.61455078125 m 264.9013671875 496.61455078125 l s q 0 0 1 rg BT 149.00 497.90 Td (Employees and Of) Tj ET Q q 0 0 1 rg BT 222.88 497.90 Td (fice Space) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 482.61455078125 m 219.19384765625 482.61455078125 l s q 0 0 1 rg BT 149.00 483.90 Td (T) Tj ET Q q 0 0 1 rg BT 154.16 483.90 Td (itle to Properties) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 468.61455078125 m 195.529296875 468.61455078125 l s q 0 0 1 rg BT 149.00 469.90 Td (Seasonality) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 454.61455078125 m 197.0234375 454.61455078125 l s q 0 0 1 rg BT 149.00 455.90 Td (Competition) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 440.61455078125 m 248.5537109375 440.61455078125 l s q 0 0 1 rg BT 149.00 441.90 Td (Government Regulations) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 426.61455078125 m 383.123046875 426.61455078125 l s q 0 0 1 rg BT 149.00 427.90 Td (Cautionary Information about Forward-Looking Statements) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 412.61455078125 m 232.8828125 412.61455078125 l s q 0 0 1 rg BT 149.00 413.90 Td (A) Tj ET Q q 0 0 1 rg BT 154.84 413.90 Td (vailable Information) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 398.61455078125 m 271.37451171875 398.61455078125 l s q 0 0 1 rg BT 149.00 399.90 Td (Glossary of Oil and Gas ) Tj ET Q q 0 0 1 rg BT 246.88 399.90 Td (T) Tj ET Q q 0 0 1 rg BT 251.38 399.90 Td (erms) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 384.61455078125 m 76.50732421875 384.61455078125 l s q 0 0 1 rg BT 39.00 385.90 Td (ITEM 1A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 384.61455078125 m 184.84765625 384.61455078125 l s q 0 0 1 rg BT 119.00 385.90 Td (RISK F) Tj ET Q q 0 0 1 rg BT 147.51 385.90 Td (ACT) Tj ET Q q 0 0 1 rg BT 165.34 385.90 Td (ORS) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 370.61455078125 m 76.50732421875 370.61455078125 l s q 0 0 1 rg BT 39.00 371.90 Td (ITEM 1B.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 370.61455078125 m 265.67626953125 370.61455078125 l s q 0 0 1 rg BT 119.00 371.90 Td (UNRESOL) Tj ET Q q 0 0 1 rg BT 161.84 371.90 Td (VED ST) Tj ET Q q 0 0 1 rg BT 193.68 371.90 Td (AFF COMMENTS) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 356.61455078125 m 70.50439453125 356.61455078125 l s q 0 0 1 rg BT 39.00 357.90 Td (ITEM 3.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 356.61455078125 m 216.69482421875 356.61455078125 l s q 0 0 1 rg BT 119.00 357.90 Td (LEGAL) Tj ET Q q 0 0 1 rg BT 147.68 357.90 Td ( PROCEEDINGS) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 342.61455078125 m 70.50439453125 342.61455078125 l s q 0 0 1 rg BT 39.00 343.90 Td (ITEM 4.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 342.61455078125 m 245.861328125 342.61455078125 l s q 0 0 1 rg BT 119.00 343.90 Td (MINE SAFETY) Tj ET Q q 0 0 1 rg BT 178.84 343.90 Td ( DISCLOSURES) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 298.8 328.471728515625 m 330.1330078125 328.471728515625 l s q 0 0 1 rg BT 298.80 329.90 Td (P) Tj ET Q q 0 0 1 rg BT 304.13 329.90 Td (ART II) Tj ET Q BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 304.61455078125 m 70.50439453125 304.61455078125 l s q 0 0 1 rg BT 39.00 305.90 Td (ITEM 5.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 314.96455078125 m 510.71533203125 314.96455078125 l s q 0 0 1 rg BT 119.00 316.25 Td (MARKET) Tj ET Q q 0 0 1 rg BT 156.34 316.25 Td ( FOR REGISTRANT’S COMMON EQUITY) Tj ET Q q 0 0 1 rg BT 325.68 316.25 Td (, RELA) Tj ET Q q 0 0 1 rg BT 353.53 316.25 Td (TED ST) Tj ET Q q 0 0 1 rg BT 385.37 316.25 Td (OCKHOLDER MA) Tj ET Q q 0 0 1 rg BT 457.71 316.25 Td (TTERS ) Tj ET Q q 0 0 1 rg BT 489.21 316.25 Td (AND ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 304.61455078125 m 318.37109375 304.61455078125 l s q 0 0 1 rg BT 119.00 305.90 Td (ISSUER PURCHASES OF EQUITY) Tj ET Q q 0 0 1 rg BT 261.86 305.90 Td ( SECURITIES) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 290.61455078125 m 70.50439453125 290.61455078125 l s q 0 0 1 rg BT 39.00 291.90 Td (ITEM 6.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 290.61455078125 m 240.607421875 290.61455078125 l s q 0 0 1 rg BT 119.00 291.90 Td (SELECTED FINANCIAL) Tj ET Q q 0 0 1 rg BT 215.69 291.90 Td ( DA) Tj ET Q q 0 0 1 rg BT 230.02 291.90 Td (T) Tj ET Q q 0 0 1 rg BT 234.85 291.90 Td (A) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 266.61455078125005 m 70.50439453125 266.61455078125005 l s q 0 0 1 rg BT 39.00 267.90 Td (ITEM 7.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 276.96455078124995 m 500.39697265625 276.96455078124995 l s q 0 0 1 rg BT 119.00 278.25 Td (MANAGEMENT’S DISCUSSION ) Tj ET Q q 0 0 1 rg BT 252.02 278.25 Td (AND ) Tj ET Q q 0 0 1 rg BT 273.02 278.25 Td (ANAL) Tj ET Q q 0 0 1 rg BT 295.87 278.25 Td (YSIS OF FINANCIAL) Tj ET Q q 0 0 1 rg BT 380.55 278.25 Td ( CONDITION ) Tj ET Q q 0 0 1 rg BT 435.55 278.25 Td (AND RESUL) Tj ET Q q 0 0 1 rg BT 486.40 278.25 Td (TS ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 119 266.61455078125005 m 192.34033203125 266.61455078125005 l s q 0 0 1 rg BT 119.00 267.90 Td (OF OPERA) Tj ET Q q 0 0 1 rg BT 164.84 267.90 Td (TIONS) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 252.61455078125005 m 252.5439453125 252.61455078125005 l s q 0 0 1 rg BT 149.00 253.90 Td (Overview of the Company) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 238.61455078125005 m 408.14111328125 238.61455078125005 l s q 0 0 1 rg BT 149.00 239.90 Td (Financial Results of Operations and ) Tj ET Q q 0 0 1 rg BT 293.58 239.90 Td (Additional Comparative Data) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 224.96455078124995 m 506.23583984375 224.96455078124995 l s q 0 0 1 rg BT 149.00 226.25 Td (Comparison of Financial Results and ) Tj ET Q q 0 0 1 rg BT 298.41 226.25 Td (T) Tj ET Q q 0 0 1 rg BT 303.57 226.25 Td (rends Between 2018 and 2017 and Between 2017 ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 214.61455078125005 m 186.5380859375 214.61455078125005 l s q 0 0 1 rg BT 149.00 215.90 Td (and 2016) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 200.61455078125005 m 325.58544921875 200.61455078125005 l s q 0 0 1 rg BT 149.00 201.90 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 186.61455078125005 m 316.07568359375 186.61455078125005 l s q 0 0 1 rg BT 149.00 187.90 Td (Critical ) Tj ET Q q 0 0 1 rg BT 178.50 187.90 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 172.61455078125005 m 226.0361328125 172.61455078125005 l s q 0 0 1 rg BT 149.00 173.90 Td (Accounting Matters) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 158.61455078125005 m 206.52880859375 158.61455078125005 l s q 0 0 1 rg BT 149.00 159.90 Td (Environmental) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 149 144.61455078125005 m 273.88818359375 144.61455078125005 l s q 0 0 1 rg BT 149.00 145.90 Td (Non-GAAP) Tj ET Q q 0 0 1 rg BT 193.35 145.90 Td ( Financial Measures) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 692.61455078125 m 546.95537109375 692.61455078125 l s q 0 0 1 rg BT 541.95 693.90 Td (4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 678.61455078125 m 546.95537109375 678.61455078125 l s q 0 0 1 rg BT 541.95 679.90 Td (4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 664.61455078125 m 546.95537109375 664.61455078125 l s q 0 0 1 rg BT 541.95 665.90 Td (4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 650.61455078125 m 546.95537109375 650.61455078125 l s q 0 0 1 rg BT 541.95 651.90 Td (4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 636.61455078125 m 546.95537109375 636.61455078125 l s q 0 0 1 rg BT 541.95 637.90 Td (4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 622.61455078125 m 546.95537109375 622.61455078125 l s q 0 0 1 rg BT 541.95 623.90 Td (5) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 608.61455078125 m 546.95537109375 608.61455078125 l s q 0 0 1 rg BT 541.95 609.90 Td (6) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 541.95 594.61455078125 m 546.95537109375 594.61455078125 l s q 0 0 1 rg BT 541.95 595.90 Td (7) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.8 580.61455078125 m 549.1427734375 580.61455078125 l s q 0 0 1 rg BT 539.80 581.90 Td (1) Tj ET Q q 0 0 1 rg BT 544.14 581.90 Td (1) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.8 566.61455078125 m 549.1427734375 566.61455078125 l s q 0 0 1 rg BT 539.80 567.90 Td (1) Tj ET Q q 0 0 1 rg BT 544.14 567.90 Td (1) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 552.61455078125 m 549.4607421875 552.61455078125 l s q 0 0 1 rg BT 539.45 553.90 Td (12) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 538.61455078125 m 549.4607421875 538.61455078125 l s q 0 0 1 rg BT 539.45 539.90 Td (13) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 524.61455078125 m 549.4607421875 524.61455078125 l s q 0 0 1 rg BT 539.45 525.90 Td (13) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 510.61455078125 m 549.4607421875 510.61455078125 l s q 0 0 1 rg BT 539.45 511.90 Td (13) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 496.61455078125 m 549.4607421875 496.61455078125 l s q 0 0 1 rg BT 539.45 497.90 Td (14) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 482.61455078125 m 549.4607421875 482.61455078125 l s q 0 0 1 rg BT 539.45 483.90 Td (14) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 468.61455078125 m 549.4607421875 468.61455078125 l s q 0 0 1 rg BT 539.45 469.90 Td (14) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 454.61455078125 m 549.4607421875 454.61455078125 l s q 0 0 1 rg BT 539.45 455.90 Td (15) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 440.61455078125 m 549.4607421875 440.61455078125 l s q 0 0 1 rg BT 539.45 441.90 Td (15) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 426.61455078125 m 549.4607421875 426.61455078125 l s q 0 0 1 rg BT 539.45 427.90 Td (18) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 412.61455078125 m 549.4607421875 412.61455078125 l s q 0 0 1 rg BT 539.45 413.90 Td (20) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 398.61455078125 m 549.4607421875 398.61455078125 l s q 0 0 1 rg BT 539.45 399.90 Td (20) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 384.61455078125 m 549.4607421875 384.61455078125 l s q 0 0 1 rg BT 539.45 385.90 Td (23) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 370.61455078125 m 549.4607421875 370.61455078125 l s q 0 0 1 rg BT 539.45 371.90 Td (39) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 356.61455078125 m 549.4607421875 356.61455078125 l s q 0 0 1 rg BT 539.45 357.90 Td (39) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 342.61455078125 m 549.4607421875 342.61455078125 l s q 0 0 1 rg BT 539.45 343.90 Td (39) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 328.61455078125 m 549.4607421875 328.61455078125 l s q 0 0 1 rg BT 539.45 329.90 Td (40) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 304.61455078125 m 549.4607421875 304.61455078125 l s q 0 0 1 rg BT 539.45 305.90 Td (40) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 290.61455078125 m 549.4607421875 290.61455078125 l s q 0 0 1 rg BT 539.45 291.90 Td (42) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 266.61455078125005 m 549.4607421875 266.61455078125005 l s q 0 0 1 rg BT 539.45 267.90 Td (44) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 252.61455078125005 m 549.4607421875 252.61455078125005 l s q 0 0 1 rg BT 539.45 253.90 Td (44) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 238.61455078125005 m 549.4607421875 238.61455078125005 l s q 0 0 1 rg BT 539.45 239.90 Td (50) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 214.61455078125005 m 549.4607421875 214.61455078125005 l s q 0 0 1 rg BT 539.45 215.90 Td (53) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 200.61455078125005 m 549.4607421875 200.61455078125005 l s q 0 0 1 rg BT 539.45 201.90 Td (58) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 186.61455078125005 m 549.4607421875 186.61455078125005 l s q 0 0 1 rg BT 539.45 187.90 Td (63) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 172.61455078125005 m 549.4607421875 172.61455078125005 l s q 0 0 1 rg BT 539.45 173.90 Td (65) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 158.61455078125005 m 549.4607421875 158.61455078125005 l s q 0 0 1 rg BT 539.45 159.90 Td (66) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 539.45 144.61455078125005 m 549.4607421875 144.61455078125005 l s q 0 0 1 rg BT 539.45 145.90 Td (67) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (3) Tj ET Q BT /F3 9.00 Tf ET 0 0 0 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 244.3 735.471728515625 m 340.628125 735.471728515625 l s q 0 0 0 rg BT 244.30 736.90 Td (T) Tj ET Q q 0 0 0 rg BT 249.46 736.90 Td (ABLE OF CONTENTS) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 267.25 722.90 Td (\(Continued\)) Tj ET Q BT /F3 9.00 Tf ET 0 0 0 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 39 707.471728515625 m 60.498046875 707.471728515625 l s q 0 0 0 rg BT 39.00 708.90 Td (ITEM) Tj ET Q BT /F3 9.00 Tf ET 0 0 0 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 511.55 707.471728515625 m 536.387890625 707.471728515625 l s q 0 0 0 rg BT 511.55 708.90 Td (P) Tj ET Q q 0 0 0 rg BT 516.88 708.90 Td (AGE) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 683.61455078125 m 76.50732421875 683.61455078125 l s q 0 0 1 rg BT 39.00 684.90 Td (ITEM 7A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 693.96455078125 m 489.09521484375 693.96455078125 l s q 0 0 1 rg BT 114.00 695.25 Td (QUANTIT) Tj ET Q q 0 0 1 rg BT 152.83 695.25 Td (A) Tj ET Q q 0 0 1 rg BT 158.17 695.25 Td (TIVE ) Tj ET Q q 0 0 1 rg BT 180.17 695.25 Td (AND QUALIT) Tj ET Q q 0 0 1 rg BT 233.51 695.25 Td (A) Tj ET Q q 0 0 1 rg BT 238.85 695.25 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 1 rg BT 327.87 695.25 Td (ABOUT) Tj ET Q q 0 0 1 rg BT 358.71 695.25 Td ( MARKET) Tj ET Q q 0 0 1 rg BT 398.55 695.25 Td ( RISK \(included within ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 683.61455078125 m 203.0419921875 683.61455078125 l s q 0 0 1 rg BT 114.00 684.90 Td (the content of ITEM 7\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 669.61455078125 m 70.50439453125 669.61455078125 l s q 0 0 1 rg BT 39.00 670.90 Td (ITEM 8.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 669.61455078125 m 422.1376953125 669.61455078125 l s q 0 0 1 rg BT 114.00 670.90 Td (CONSOLIDA) Tj ET Q q 0 0 1 rg BT 166.34 670.90 Td (TED FINANCIAL) Tj ET Q q 0 0 1 rg BT 233.52 670.90 Td ( ST) Tj ET Q q 0 0 1 rg BT 246.85 670.90 Td (A) Tj ET Q q 0 0 1 rg BT 252.19 670.90 Td (TEMENTS ) Tj ET Q q 0 0 1 rg BT 297.19 670.90 Td (AND SUPPLEMENT) Tj ET Q q 0 0 1 rg BT 379.04 670.90 Td (AR) Tj ET Q q 0 0 1 rg BT 391.38 670.90 Td (Y) Tj ET Q q 0 0 1 rg BT 397.22 670.90 Td ( DA) Tj ET Q q 0 0 1 rg BT 411.55 670.90 Td (T) Tj ET Q q 0 0 1 rg BT 416.38 670.90 Td (A) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 645.61455078125 m 70.50439453125 645.61455078125 l s q 0 0 1 rg BT 39.00 646.90 Td (ITEM 9.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 655.96455078125 m 468.8671875 655.96455078125 l s q 0 0 1 rg BT 114.00 657.25 Td (CHANGES IN ) Tj ET Q q 0 0 1 rg BT 172.01 657.25 Td (AND DISAGREEMENTS WITH ) Tj ET Q q 0 0 1 rg BT 299.02 657.25 Td (ACCOUNT) Tj ET Q q 0 0 1 rg BT 342.85 657.25 Td (ANTS ON ) Tj ET Q q 0 0 1 rg BT 384.86 657.25 Td (ACCOUNTING ) Tj ET Q q 0 0 1 rg BT 447.36 657.25 Td (AND ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 645.61455078125 m 221.68798828125 645.61455078125 l s q 0 0 1 rg BT 114.00 646.90 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 160.67 646.90 Td ( DISCLOSURE) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 631.61455078125 m 76.50732421875 631.61455078125 l s q 0 0 1 rg BT 39.00 632.90 Td (ITEM 9A.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 631.61455078125 m 251.021484375 631.61455078125 l s q 0 0 1 rg BT 114.00 632.90 Td (CONTROLS ) Tj ET Q q 0 0 1 rg BT 166.01 632.90 Td (AND PROCEDURES) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 617.61455078125 m 76.50732421875 617.61455078125 l s q 0 0 1 rg BT 39.00 618.90 Td (ITEM 9B.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 617.61455078125 m 210.328125 617.61455078125 l s q 0 0 1 rg BT 114.00 618.90 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 188.83 618.90 Td (TION) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 288.05 603.471728515625 m 321.88349609375 603.471728515625 l s q 0 0 1 rg BT 288.05 604.90 Td (P) Tj ET Q q 0 0 1 rg BT 293.38 604.90 Td (ART III) Tj ET Q BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 589.61455078125 m 75.509765625 589.61455078125 l s q 0 0 1 rg BT 39.00 590.90 Td (ITEM 10.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 589.61455078125 m 419.7099609375 589.61455078125 l s q 0 0 1 rg BT 114.00 590.90 Td (DIRECT) Tj ET Q q 0 0 1 rg BT 147.34 590.90 Td (ORS, EXECUTIVE OFFICERS, ) Tj ET Q q 0 0 1 rg BT 275.36 590.90 Td (AND CORPORA) Tj ET Q q 0 0 1 rg BT 341.70 590.90 Td (TE GOVERNANCE) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 575.61455078125 m 74.841796875 575.61455078125 l s q 0 0 1 rg BT 39.00 576.90 Td (ITEM 1) Tj ET Q q 0 0 1 rg BT 67.34 576.90 Td (1.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 575.61455078125 m 239.8505859375 575.61455078125 l s q 0 0 1 rg BT 114.00 576.90 Td (EXECUTIVE COMPENSA) Tj ET Q q 0 0 1 rg BT 218.35 576.90 Td (TION) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 551.61455078125 m 75.509765625 551.61455078125 l s q 0 0 1 rg BT 39.00 552.90 Td (ITEM 12.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 561.96455078125 m 482.38916015625 561.96455078125 l s q 0 0 1 rg BT 114.00 563.25 Td (SECURITY) Tj ET Q q 0 0 1 rg BT 159.34 563.25 Td ( OWNERSHIP) Tj ET Q q 0 0 1 rg BT 217.18 563.25 Td ( OF CER) Tj ET Q q 0 0 1 rg BT 253.52 563.25 Td (T) Tj ET Q q 0 0 1 rg BT 258.35 563.25 Td (AIN BENEFICIAL) Tj ET Q q 0 0 1 rg BT 328.04 563.25 Td ( OWNERS ) Tj ET Q q 0 0 1 rg BT 373.04 563.25 Td (AND MANAGEMENT) Tj ET Q q 0 0 1 rg BT 458.88 563.25 Td ( ) Tj ET Q q 0 0 1 rg BT 460.89 563.25 Td (AND ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 551.61455078125 m 270.5244140625 551.61455078125 l s q 0 0 1 rg BT 114.00 552.90 Td (RELA) Tj ET Q q 0 0 1 rg BT 136.84 552.90 Td (TED ST) Tj ET Q q 0 0 1 rg BT 168.68 552.90 Td (OCKHOLDER MA) Tj ET Q q 0 0 1 rg BT 241.02 552.90 Td (TTERS) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 527.61455078125 m 75.509765625 527.61455078125 l s q 0 0 1 rg BT 39.00 528.90 Td (ITEM 13.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 537.96455078125 m 439.05908203125 537.96455078125 l s q 0 0 1 rg BT 114.00 539.25 Td (CER) Tj ET Q q 0 0 1 rg BT 132.84 539.25 Td (T) Tj ET Q q 0 0 1 rg BT 137.67 539.25 Td (AIN RELA) Tj ET Q q 0 0 1 rg BT 178.02 539.25 Td (TIONSHIPS ) Tj ET Q q 0 0 1 rg BT 228.53 539.25 Td (AND RELA) Tj ET Q q 0 0 1 rg BT 272.87 539.25 Td (TED ) Tj ET Q q 0 0 1 rg BT 293.21 539.25 Td (TRANSACTIONS, ) Tj ET Q q 0 0 1 rg BT 368.22 539.25 Td (AND DIRECT) Tj ET Q q 0 0 1 rg BT 423.06 539.25 Td (OR ) Tj ET Q BT /F1 9.00 Tf ET 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 527.61455078125 m 185.51220703125 527.61455078125 l s q 0 0 1 rg BT 114.00 528.90 Td (INDEPENDENCE) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 513.61455078125 m 75.509765625 513.61455078125 l s q 0 0 1 rg BT 39.00 514.90 Td (ITEM 14.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 513.61455078125 m 319.048828125 513.61455078125 l s q 0 0 1 rg BT 114.00 514.90 Td (PRINCIP) Tj ET Q q 0 0 1 rg BT 149.84 514.90 Td (AL) Tj ET Q q 0 0 1 rg BT 160.51 514.90 Td ( ) Tj ET Q q 0 0 1 rg BT 162.52 514.90 Td (ACCOUNT) Tj ET Q q 0 0 1 rg BT 206.35 514.90 Td (ANT) Tj ET Q q 0 0 1 rg BT 224.18 514.90 Td ( FEES ) Tj ET Q q 0 0 1 rg BT 252.19 514.90 Td (AND SER) Tj ET Q q 0 0 1 rg BT 292.04 514.90 Td (VICES) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 287.55 499.471728515625 m 322.38544921875 499.471728515625 l s q 0 0 1 rg BT 287.55 500.90 Td (P) Tj ET Q q 0 0 1 rg BT 292.88 500.90 Td (ART IV) Tj ET Q BT /F3 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 485.61455078125 m 75.509765625 485.61455078125 l s q 0 0 1 rg BT 39.00 486.90 Td (ITEM 15.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 485.61455078125 m 411.052734375 485.61455078125 l s q 0 0 1 rg BT 114.00 486.90 Td (EXHIBITS ) Tj ET Q q 0 0 1 rg BT 157.01 486.90 Td (AND CONSOLIDA) Tj ET Q q 0 0 1 rg BT 230.86 486.90 Td (TED FINANCIAL) Tj ET Q q 0 0 1 rg BT 298.03 486.90 Td ( ST) Tj ET Q q 0 0 1 rg BT 311.37 486.90 Td (A) Tj ET Q q 0 0 1 rg BT 316.70 486.90 Td (TEMENT) Tj ET Q q 0 0 1 rg BT 353.54 486.90 Td ( SCHEDULES) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 39 471.61455078125 m 75.509765625 471.61455078125 l s q 0 0 1 rg BT 39.00 472.90 Td (ITEM 16.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 114 471.61455078125 m 210.26416015625 471.61455078125 l s q 0 0 1 rg BT 114.00 472.90 Td (FORM 10-K SUMMAR) Tj ET Q q 0 0 1 rg BT 204.34 472.90 Td (Y) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 518.95 683.61455078125 m 528.9607421875 683.61455078125 l s q 0 0 1 rg BT 518.95 684.90 Td (69) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 518.95 669.61455078125 m 528.9607421875 669.61455078125 l s q 0 0 1 rg BT 518.95 670.90 Td (70) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.8 645.61455078125 m 531.14814453125 645.61455078125 l s q 0 0 1 rg BT 516.80 646.90 Td (1) Tj ET Q q 0 0 1 rg BT 521.14 646.90 Td (17) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.8 631.61455078125 m 531.14814453125 631.61455078125 l s q 0 0 1 rg BT 516.80 632.90 Td (1) Tj ET Q q 0 0 1 rg BT 521.14 632.90 Td (18) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 617.61455078125 m 531.46611328125 617.61455078125 l s q 0 0 1 rg BT 516.45 618.90 Td (121) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 603.61455078125 m 531.46611328125 603.61455078125 l s q 0 0 1 rg BT 516.45 604.90 Td (121) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 589.61455078125 m 531.46611328125 589.61455078125 l s q 0 0 1 rg BT 516.45 590.90 Td (121) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 575.61455078125 m 531.46611328125 575.61455078125 l s q 0 0 1 rg BT 516.45 576.90 Td (121) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 551.61455078125 m 531.46611328125 551.61455078125 l s q 0 0 1 rg BT 516.45 552.90 Td (122) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 527.61455078125 m 531.46611328125 527.61455078125 l s q 0 0 1 rg BT 516.45 528.90 Td (123) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 513.61455078125 m 531.46611328125 513.61455078125 l s q 0 0 1 rg BT 516.45 514.90 Td (123) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 499.61455078125 m 531.46611328125 499.61455078125 l s q 0 0 1 rg BT 516.45 500.90 Td (124) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 485.61455078125 m 531.46611328125 485.61455078125 l s q 0 0 1 rg BT 516.45 486.90 Td (124) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.66 w 0 i [] 0 d 1 J 1 j 3 M 516.45 471.61455078125 m 531.46611328125 471.61455078125 l s q 0 0 1 rg BT 516.45 472.90 Td (127) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 291.55 740.45 Td (P) Tj ET Q q 0 0 0 rg BT 296.88 740.45 Td (ART I) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (When we use the terms “SM Energy) Tj ET Q q 0 0 0 rg BT 215.89 717.65 Td (,” the “Company) Tj ET Q q 0 0 0 rg BT 279.74 717.65 Td (,” “we,” “us,” or “our) Tj ET Q q 0 0 0 rg BT 356.75 717.65 Td (,” we are referring to SM Energy Company and its ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (subsidiaries unless the context otherwise requires. W) Tj ET Q q 0 0 0 rg BT 250.44 706.85 Td (e have included certain technical terms important to an understanding of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (business under ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 99.54 696.05 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 202.25 696.05 Td (erms) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 222.25 696.05 Td (. ) Tj ET Q q 0 0 0 rg BT 229.59 696.05 Td (Throughout this document we make statements that may be classified as “forward-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (looking.” Please refer to the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 151.06 685.25 Td (Cautionary Information about Forward-Looking Statements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.19 685.25 Td ( section of this document for an explanation of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (these types of statements.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (ITEMS 1. ) Tj ET Q q 0 0 0 rg BT 75.67 651.65 Td (AND 2. BUSINESS ) Tj ET Q q 0 0 0 rg BT 158.36 651.65 Td (AND PROPERTIES) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 628.85 Td (General) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 606.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 606.05 Td (e are an independent energy company engaged in the development, production, exploration, and acquisition of crude oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 595.25 Td (condensate, natural gas, and natural gas liquids \(also respectively referred to as “oil,” “gas,” and “NGLs” throughout the document\) in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 584.45 Td (onshore North ) Tj ET Q q 0 0 0 rg BT 95.04 584.45 Td (America. W) Tj ET Q q 0 0 0 rg BT 143.88 584.45 Td (e were founded in 1908 and incorporated in Delaware in 1915. Our initial public of) Tj ET Q q 0 0 0 rg BT 471.42 584.45 Td (fering of common stock ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 573.65 Td (was in December 1992. Our common stock trades on the New ) Tj ET Q q 0 0 0 rg BT 288.95 573.65 Td (Y) Tj ET Q q 0 0 0 rg BT 294.13 573.65 Td (ork Stock Exchange under the ticker symbol “SM.”) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 550.85 Td (Our principal of) Tj ET Q q 0 0 0 rg BT 132.86 550.85 Td (fice is located at 1775 Sherman Street, Suite 1200, Denver) Tj ET Q q 0 0 0 rg BT 367.00 550.85 Td (, Colorado 80203, and our telephone number is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 540.05 Td (\(303\) 861-8140.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 517.25 Td (Strategy) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 494.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 494.45 Td (Our strategic objective is to be a premier operator of top tier assets. W) Tj ET Q q 0 0 0 rg BT 353.96 494.45 Td (e pursue growth opportunities through both acquisitions ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 483.65 Td (and exploration, and we seek to maximize the value of our assets through industry leading technology and outstanding operational ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 472.85 Td (execution. W) Tj ET Q q 0 0 0 rg BT 90.36 472.85 Td (e are focused on generating strong full-cycle economic returns on our investments and maintaining a strong balance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 462.05 Td (sheet.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 439.25 Td (Significant Developments in 2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.04 439.25 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 416.45 Td (Reserves and Capital Investment. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.07 416.45 Td (Our estimated proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.12 416.45 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.14 416.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.64 416.45 Td (eight percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.68 416.45 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.19 416.45 Td (503.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.71 416.45 Td ( MMBOE at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.72 416.45 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 405.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 405.65 Td (, from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.52 405.65 Td (468.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.04 405.65 Td ( MMBOE at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.05 405.65 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.10 405.65 Td (. Reserve additions from discoveries, extensions, and infills were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.72 405.65 Td (188.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.24 405.65 Td ( MMBOE and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 394.85 Td (were a result of our successful development programs, completion optimizations that resulted in improved well performance, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 384.05 Td (development plan improvements that we believe will enhance inventory value. ) Tj ET Q q 0 0 0 rg BT 351.01 384.05 Td (These positive results for 2018 were partially of) Tj ET Q q 0 0 0 rg BT 538.94 384.05 Td (fset by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 373.25 Td (the divestiture of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.54 373.25 Td (40.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.05 373.25 Td ( MMBOE of estimated proved reserves, and net downward revisions of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.18 373.25 Td (68.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.70 373.25 Td ( MMBOE, which resulted primarily ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 362.45 Td (from changes in our development plans in our Eagle Ford shale program. On a retained asset basis, estimated proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 351.65 Td (increased 18 percent year-over-year) Tj ET Q q 0 0 0 rg BT 180.58 351.65 Td (. Our proved reserve life index ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.13 351.65 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.16 351.65 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.66 351.65 Td (1) Tj ET Q q 0 0 0 rg BT 362.00 351.65 Td (1.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.51 351.65 Td ( years as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.53 351.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.58 351.65 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 340.85 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.52 340.85 Td ( years as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.54 340.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.59 340.85 Td (. Costs incurred for development and exploration activities, excluding acquisitions, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.76 340.85 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.78 340.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.28 340.85 Td (41 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 330.05 Td (percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.02 330.05 Td ( from the prior year to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.55 330.05 Td ($1.3 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 197.58 330.05 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 209.59 330.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.61 330.05 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 298.14 330.05 Td (Areas of Operation) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 373.68 330.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.19 330.05 Td (and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 393.70 330.05 Td (Reserves) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 431.71 330.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.21 330.05 Td (below) Tj ET Q q 0 0 0 rg BT 457.23 330.05 Td (, and to the caption ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 536.29 330.05 Td (Oil and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 319.25 Td (Gas Reserve Quantities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.54 319.25 Td ( in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 158.56 319.25 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 311.14 319.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.64 319.25 Td (section in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 296.45 Td (Production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.53 296.45 Td ( Our average daily production in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.10 296.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.12 296.45 Td ( consisted of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.15 296.45 Td (51.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.67 296.45 Td ( MBbl of oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.19 296.45 Td (282.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.71 296.45 Td ( MMcf of gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.74 296.45 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.25 296.45 Td ( MBbl of NGLs, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 285.65 Td (for an average net daily equivalent production rate of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.64 285.65 Td (120.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.16 285.65 Td ( MBOE, which represents a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.20 285.65 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.74 285.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.24 285.65 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.26 285.65 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.79 285.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.81 285.65 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 274.85 Td (Our Permian region realized a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 158.56 274.85 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 201.09 274.85 Td ( increase in production volumes during 2018, compared with 2017, as a result of ramping up ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 264.05 Td (development activities and realizing stronger than expected well results. Increased production volumes from our Permian region were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 253.25 Td (of) Tj ET Q q 0 0 0 rg BT 43.34 253.25 Td (fset by the divestiture of our remaining producing assets in the Rocky Mountain region in the first half of 2018 and decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 242.45 Td (production volumes from our Eagle Ford shale assets as a result of reduced capital investment in this area. On a retained asset basis, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 231.65 Td (our production volumes increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 173.58 231.65 Td (1) Tj ET Q q 0 0 0 rg BT 177.91 231.65 Td (1 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.44 231.65 Td ( in 2018. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 316.00 231.65 Td (Areas of Operation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.54 231.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.04 231.65 Td (below for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 208.85 Td (Net Cash Provided by Operating ) Tj ET Q q 0 0 0 rg BT 203.73 208.85 Td (Activities.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.74 208.85 Td ( Net cash provided by operating activities was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.34 208.85 Td ($720.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.87 208.85 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 198.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 198.05 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.08 198.05 Td ($515.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.61 198.05 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.66 198.05 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.71 198.05 Td (, which was an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.24 198.05 Td (increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.26 198.05 Td ( of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.76 198.05 Td (40 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.29 198.05 Td ( year-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 187.25 Td (over-year) Tj ET Q q 0 0 0 rg BT 73.52 187.25 Td (. ) Tj ET Q q 0 0 0 rg BT 80.85 187.25 Td (The increase in net cash provided by operating activities for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.48 187.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.51 187.25 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.53 187.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.56 187.25 Td (, was primarily the result of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.09 187.25 Td (37 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 176.45 Td (percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.02 176.45 Td ( growth in higher margin oil production, which, combined with increased benchmark pricing for oil and NGLs, drove a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.75 176.45 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 574.28 176.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 165.65 Td (increase in our realized price per BOE before the ef) Tj ET Q q 0 0 0 rg BT 240.95 165.65 Td (fects of derivative settlements, and led to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.04 165.65 Td (31 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.57 165.65 Td ( increase in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 574.30 165.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 154.85 Td (production revenue. Partially of) Tj ET Q q 0 0 0 rg BT 162.41 154.85 Td (fsetting the increase from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 335.16 154.85 Td ( production revenue was a cash settlement loss on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 144.05 Td (derivatives of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 91.52 144.05 Td ($135.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 147.06 144.05 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.11 144.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.16 144.05 Td (, compared to a cash settlement gain on derivatives of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.28 144.05 Td ($21.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 572.81 144.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 133.25 Td (for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.00 133.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.02 133.25 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 137.56 133.25 Td (Analysis of Cash Flow Changes Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 482.30 133.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.80 133.25 Td (in Part II, Item 7 and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 122.45 Td (Note 10 – Derivative Financial Instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.58 122.45 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 99.65 Td (Divestiture ) Tj ET Q q 0 0 0 rg BT 116.68 99.65 Td (Activity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.18 99.65 Td (. During the first quarter of 2018,) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 277.25 99.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.75 99.65 Td (we successfully completed the divestiture of our Powder River Basin ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 88.85 Td (assets \(the “PRB Divestiture”\) for total cash consideration, net of costs \(referred to throughout this report as “net divestiture proceeds”\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 78.05 Td (of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 46.01 78.05 Td ($492.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.54 78.05 Td ( and recorded a final net gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.63 78.05 Td ($410.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.16 78.05 Td (. During the second quarter of 2018, we completed divestitures of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 67.25 Td (remaining assets in the Williston Basin located in Divide County) Tj ET Q q 0 0 0 rg BT 288.45 67.25 Td (, North Dakota \(the “Divide County Divestiture”\) and our non-operated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 56.45 Td (Half) Tj ET Q q 0 0 0 rg BT 51.84 56.45 Td (f East assets in the Midland Basin \(the “Half) Tj ET Q q 0 0 0 rg BT 226.26 56.45 Td (f East Divestiture”\), for combined net divestiture proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.87 56.45 Td ($252.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.40 56.45 Td (, and a final ) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (net gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 80.53 740.45 Td ($15.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.06 740.45 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 199.60 740.45 Td (Note 3 – Divestitures, ) Tj ET Q q 0 0 0 rg BT 287.80 740.45 Td (Assets Held for Sale, and ) Tj ET Q q 0 0 0 rg BT 391.52 740.45 Td (Acquisitions) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 439.54 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.04 740.45 Td (in Part II, Item 8 of this report for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (Long-T) Tj ET Q q 0 0 0 rg BT 99.69 706.85 Td (erm Debt Reduction.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 182.23 706.85 Td ( During 2018 we completed multiple transactions that resulted in overall long-term debt reduction ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (and extension of the average maturity date for our remaining long-term debt. ) Tj ET Q q 0 0 0 rg BT 345.01 696.05 Td (T) Tj ET Q q 0 0 0 rg BT 349.51 696.05 Td (otal principal outstanding for long-term debt decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.50 685.25 Td ($3.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 99.53 685.25 Td ( at year end 2017, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.59 685.25 Td ($2.6 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.62 685.25 Td ( at year end 2018, and was accomplished through the redemption of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.31 685.25 Td (6.50% Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (Notes due 2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 99.55 674.45 Td ( \(“2021 Senior Notes”\) using cash proceeds from divestitures. W) Tj ET Q q 0 0 0 rg BT 357.99 674.45 Td (e also successfully extended the average maturity of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (our remaining long-term debt obligations by issuing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.11 663.65 Td (6.625% Senior Notes due 2027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.20 663.65 Td ( \(“2027 Senior Notes”\) and using the net proceeds ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (from this issuance to repurchase our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.07 652.85 Td (6.50% Senior Notes due 2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.15 652.85 Td ( \(“2023 Senior Notes”\) and a portion of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.25 652.85 Td (6.125% Senior Notes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (due 2022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 73.54 642.05 Td ( \(“2022 Senior Notes”\). Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 231.11 642.05 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 295.32 642.05 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.33 642.05 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (Outlook) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 596.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 596.45 Td (e remain focused on maximizing the returns and increasing the value of our top tier capital project inventory in the Midland ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (Basin and Eagle Ford shale.  W) Tj ET Q q 0 0 0 rg BT 162.40 585.65 Td (e expect to do this through exploration, acquisitions, and further development optimization.  ) Tj ET Q q 0 0 0 rg BT 527.46 585.65 Td (These ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (assets will allow for production growth while maximizing internally generated cash flows, which will also support our priorities for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (improving our credit metrics and maintaining strong financial flexibility) Tj ET Q q 0 0 0 rg BT 311.45 564.05 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 541.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 541.25 Td (Our capital program for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 167.04 541.25 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.06 541.25 Td (, excluding acquisitions, is expected to range from $1.00 billion to $1.07 billion. W) Tj ET Q q 0 0 0 rg BT 513.08 541.25 Td (e expect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 530.45 Td (program to concentrate on developing our top tier assets in the Midland Basin and Eagle Ford shale, with the majority of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.28 530.45 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.30 530.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 519.65 Td (capital being allocated to our Midland Basin program. Planned drilling and completion activity in the Eagle Ford shale will continue to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 508.85 Td (be partially funded by a third-party as part of our joint venture agreement, which was extended into 2019 to include 12 additional wells ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (that we expect to be completed in 2019. Please refer to the caption ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 307.67 498.05 Td (Outlook) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.69 498.05 Td ( in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 365.70 498.05 Td (Overview of the Company) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 469.25 498.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.75 498.05 Td (section) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.26 498.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.77 498.05 Td (and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 520.28 498.05 Td (Overview of ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 162.57 487.25 Td (, under Part II, Item 7 of this report for additional discussion of our financing and capital plans for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.78 487.25 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 567.80 487.25 Td (.) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Areas of Operation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 117.02 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (Our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 89.50 717.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 109.52 717.65 Td ( operations were concentrated in our onshore Permian and South ) Tj ET Q q 0 0 0 rg BT 372.52 717.65 Td (T) Tj ET Q q 0 0 0 rg BT 377.02 717.65 Td (exas & Gulf Coast regions in the United States. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 706.85 Td (e divested all remaining producing assets in the Rocky Mountain region in the first half of 2018. ) Tj ET Q q 0 0 0 rg BT 426.88 706.85 Td (The following table summarizes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (estimated proved reserves, production, and costs incurred in oil and gas activities for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.22 696.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.27 696.05 Td (, for these ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (regions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 637.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 637.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 637.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 637.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 637.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 637.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 637.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 637.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 609.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 609.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 609.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 609.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 609.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 609.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 609.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 609.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 581.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 581.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 581.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 581.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 581.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 581.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 581.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 581.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 553.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 553.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 553.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 553.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 553.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 553.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 553.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 553.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 525.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 525.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 525.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 525.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 525.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 525.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 525.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 525.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 497.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 497.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 497.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 497.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 497.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 497.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 497.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 497.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 469.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 469.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 469.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 469.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 469.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 469.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 469.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 469.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 441.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 441.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 441.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 441.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 441.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 441.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 441.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 441.75 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 637.75 m 269.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273.5 637.75 m 338.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 637.75 m 407.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 637.75 m 476.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 581.75 m 269.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273.5 581.75 m 338.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 581.75 m 476.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 581.75 m 269.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273.5 581.75 m 338.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 581.75 m 407.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 581.75 m 476.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 483.75 m 269.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273.5 483.75 m 338.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 483.75 m 407.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 483.75 m 476.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 483.75 m 269.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273.5 483.75 m 338.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 483.75 m 407.5 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 483.75 m 476.5 483.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 218.70 642.15 Td (Permian) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 279.05 652.95 Td (South T) Tj ET Q q 0 0 0 rg BT 311.87 652.95 Td (exas) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 278.20 642.15 Td (& Gulf Coast) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 360.95 651.15 Td (Rocky) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 354.50 642.15 Td (Mountain) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.25 642.15 Td (T) Tj ET Q q 0 0 0 rg BT 433.08 642.15 Td (otal ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 451.58 646.44 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 628.15 Td (Proved reserves) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 614.15 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.45 614.15 Td (159.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.45 614.15 Td (16.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 614.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 614.15 Td (175.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 600.15 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.45 600.15 Td (328.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.45 600.15 Td (993.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 600.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.95 600.15 Td (1,321.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 586.15 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.45 586.15 Td (0.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.45 586.15 Td (107.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 586.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 586.15 Td (107.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 572.15 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 87.50 576.44 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.45 572.15 Td (214.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.45 572.15 Td (289.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 572.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 572.15 Td (503.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.00 558.15 Td (Relative percentage) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.90 558.15 Td (43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.95 558.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.90 558.15 Td (57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.95 558.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 558.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.95 558.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.90 558.15 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.95 558.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 544.15 Td (Proved developed %) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.90 544.15 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.95 544.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.90 544.15 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.95 544.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.45 544.15 Td (N/A) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.90 544.15 Td (49) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.95 544.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 530.15 Td (Production) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 516.15 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.45 516.15 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.45 516.15 Td (1.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.45 516.15 Td (0.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.45 516.15 Td (18.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 502.15 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.45 502.15 Td (25.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.45 502.15 Td (76.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.45 502.15 Td (1.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 502.15 Td (103.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 488.15 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.95 488.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.45 488.15 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.95 488.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.45 488.15 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 474.15 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 87.50 478.44 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.45 474.15 Td (20.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.45 474.15 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.45 474.15 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.45 474.15 Td (43.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 460.15 Td (A) Tj ET Q q 0 0 0 rg BT 56.84 460.15 Td (vg. daily equivalents \(MBOE/d\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 182.89 464.44 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.45 460.15 Td (57.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.45 460.15 Td (59.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.45 460.15 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 460.15 Td (120.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.00 446.15 Td (Relative percentage) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.90 446.15 Td (48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.95 446.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.90 446.15 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.95 446.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.90 446.15 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.95 446.15 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.90 446.15 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.95 446.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 432.15 Td (Costs incurred \(in millions\) ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 158.01 436.44 Td (\(2\) \(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 432.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.90 432.15 Td (1,180.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.00 432.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.40 432.15 Td (185.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 432.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.40 432.15 Td (2.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 432.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.90 432.15 Td (1,389.5) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 421.05 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 413.54 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 409.25 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 402.74 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 398.45 Td (Regional costs incurred do not sum to total costs incurred due primarily to corporate overhead charges incurred on exploration ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 387.65 Td (activities that are excluded from this regional table. Please refer to the caption ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 368.67 387.65 Td (Costs Incurred in Oil and Gas Producing ) Tj ET Q q 0 0 0 rg BT 531.91 387.65 Td (Activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 567.42 387.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 376.85 Td (in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 78.52 376.85 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 231.10 376.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.60 376.85 Td (section in Part II, Item 8 of this report.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 370.34 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 366.05 Td (Costs incurred for 2018 included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 186.07 366.05 Td ($57.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.60 366.05 Td ( relating to acquisitions of primarily unproved oil and gas properties in our Permian ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 355.25 Td (region. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 147.55 355.25 Td (Costs Incurred in Oil and Gas Producing ) Tj ET Q q 0 0 0 rg BT 310.79 355.25 Td (Activities) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 346.30 355.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.80 355.25 Td (in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 358.31 355.25 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 510.89 355.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.39 355.25 Td (in Part II, Item ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 344.45 Td (8 of this report. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 321.65 Td (Excluding acquisition activity) Tj ET Q q 0 0 0 rg BT 185.39 321.65 Td (, costs incurred increased in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.94 321.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.96 321.65 Td ( by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.47 321.65 Td (41 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 321.65 Td ( compared with the prior year as we continued to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (accelerate development activities in our Permian region. ) Tj ET Q q 0 0 0 rg BT 264.45 310.85 Td (T) Tj ET Q q 0 0 0 rg BT 268.95 310.85 Td (otal estimated proved reserves at year end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.05 310.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.07 310.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.57 310.85 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.59 310.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.09 310.85 Td (eight percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.13 310.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (from the prior year and increased 18 percent on a retained asset basis. Production decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.72 300.05 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.25 300.05 Td ( on an equivalent basis for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 98.55 289.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.60 289.25 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.62 289.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.65 289.25 Td (, but increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.18 289.25 Td (1) Tj ET Q q 0 0 0 rg BT 329.52 289.25 Td (1 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.04 289.25 Td ( on a retained asset basis.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 266.45 Td (Permian Region. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.04 266.45 Td (Operations in our Permian region are managed from our regional of) Tj ET Q q 0 0 0 rg BT 412.52 266.45 Td (fice in Midland, ) Tj ET Q q 0 0 0 rg BT 474.89 266.45 Td (T) Tj ET Q q 0 0 0 rg BT 479.39 266.45 Td (exas. In ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.90 266.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.93 266.45 Td (, we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 255.65 Td (focused on continuing to delineate, develop, and expand our Midland Basin position in western ) Tj ET Q q 0 0 0 rg BT 415.09 255.65 Td (T) Tj ET Q q 0 0 0 rg BT 419.59 255.65 Td (exas. Our approximately 79,800 net ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 244.85 Td (acre position as of December 31, 2018, excludes approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.14 244.85 Td (1,885) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.66 244.85 Td ( net acres associated with drill-to-earn opportunities we plan to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 234.05 Td (pursue, and is lower than our year end 2017 net acreage position as a result of the Half) Tj ET Q q 0 0 0 rg BT 383.05 234.05 Td (f East Divestiture, which reduced our Midland ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 223.25 Td (Basin position by approximately 5,400 net acres year-over-year) Tj ET Q q 0 0 0 rg BT 287.63 223.25 Td (. Our current Midland Basin position provides for substantial future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 212.45 Td (development opportunities within multiple oil-rich intervals, including the Spraberry and W) Tj ET Q q 0 0 0 rg BT 391.51 212.45 Td (olfcamp formations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 189.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 189.65 Td (e incurred approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.38 189.65 Td ($1.2 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.41 189.65 Td ( of costs and added approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.99 189.65 Td (78.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.51 189.65 Td ( MMBOE of estimated proved reserves, net of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 178.85 Td (price and performance revisions, through our drilling and completion activities in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.16 178.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.19 178.85 Td (. ) Tj ET Q q 0 0 0 rg BT 383.52 178.85 Td (The majority of our Midland Basin capital was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 168.05 Td (deployed on projects targeting the Lower Spraberry and W) Tj ET Q q 0 0 0 rg BT 268.97 168.05 Td (olfcamp ) Tj ET Q q 0 0 0 rg BT 302.49 168.05 Td (A) Tj ET Q q 0 0 0 rg BT 308.00 168.05 Td ( and B intervals on our RockStar assets in Howard and Martin ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 157.25 Td (Counties, ) Tj ET Q q 0 0 0 rg BT 76.36 157.25 Td (T) Tj ET Q q 0 0 0 rg BT 80.86 157.25 Td (exas and Sweetie Peck assets in Upton and Midland Counties, ) Tj ET Q q 0 0 0 rg BT 333.34 157.25 Td (T) Tj ET Q q 0 0 0 rg BT 337.84 157.25 Td (exas. Capital was also invested in our water transportation ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (and handling facilities, which began operations in mid-2018 and now serve a significant portion of our disposal needs on our RockStar ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (acreage. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.04 135.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 125.06 135.65 Td (, we operated an average of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.64 135.65 Td (seven) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.65 135.65 Td ( drilling rigs and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.19 135.65 Td (four) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.69 135.65 Td ( completion crews. ) Tj ET Q q 0 0 0 rg BT 423.73 135.65 Td (As of December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.76 135.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.78 135.65 Td (, we had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 562.31 135.65 Td (six) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 573.31 135.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 124.85 Td (drilling rigs and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 99.03 124.85 Td (three) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.54 124.85 Td ( completion crews running in the Midland Basin, primarily focused on developing our RockStar acreage. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.05 Td (Estimated proved reserves increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.07 114.05 Td (34 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.60 114.05 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.11 114.05 Td (214.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.63 114.05 Td ( MMBOE at year end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.16 114.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.18 114.05 Td (, from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 114.05 Td (159.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.21 114.05 Td ( MMBOE at year end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.74 114.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.76 114.05 Td (. W) Tj ET Q q 0 0 0 rg BT 541.60 114.05 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 103.25 Td (completed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 80.02 103.25 Td (1) Tj ET Q q 0 0 0 rg BT 84.36 103.25 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 94.37 103.25 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 124.38 103.25 Td (104) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 139.39 103.25 Td ( net\) wells during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 209.93 103.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.95 103.25 Td (, and full-year production increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.03 103.25 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.56 103.25 Td ( year-over-year to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.08 103.25 Td (20.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.60 103.25 Td ( MMBOE for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 92.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 69.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 69.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 69.65 Td (, there were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.08 69.65 Td (61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.09 69.65 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.10 69.65 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.11 69.65 Td ( net\) wells that had been drilled but not completed in our Midland Basin ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 58.85 Td (program.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (7) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (South T) Tj ET Q q 0 0 0 rg BT 102.69 740.45 Td (exas & Gulf Coast Region.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.74 740.45 Td ( Operations in our South ) Tj ET Q q 0 0 0 rg BT 311.14 740.45 Td (T) Tj ET Q q 0 0 0 rg BT 315.64 740.45 Td (exas & Gulf Coast region are managed from our regional of) Tj ET Q q 0 0 0 rg BT 551.61 740.45 Td (fice in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 74.36 729.65 Td (T) Tj ET Q q 0 0 0 rg BT 78.86 729.65 Td (exas. ) Tj ET Q q 0 0 0 rg BT 105.21 729.65 Td (This region is primarily comprised of our Eagle Ford shale position, which includes approximately 163,000 contiguous ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (net acres. Our acreage position in the Eagle Ford shale covers a significant portion of the western Eagle Ford shale play and includes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (acreage across the gas-condensate and dry gas windows of the play with gas composition amenable to processing for NGL) Tj ET Q q 0 0 0 rg BT 527.44 708.05 Td ( extraction.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 685.25 Td (In ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 82.01 685.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.03 685.25 Td (, we incurred ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.05 685.25 Td ($185.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.58 685.25 Td ( of costs and added approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.17 685.25 Td (40.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.68 685.25 Td ( MMBOE of estimated proved reserves, net of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (revisions, primarily as a result of a net increase in proved undeveloped reserves resulting from changes to our future development ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (plans, and positive price revisions. During 2018, we averaged ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.14 663.65 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.16 663.65 Td ( drilling rig and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.19 663.65 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.20 663.65 Td ( completion crew on our Eagle Ford shale ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (acreage. Estimated proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.57 652.85 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.60 652.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.10 652.85 Td (five percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.62 652.85 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.13 652.85 Td (289.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.65 652.85 Td ( MMBOE at year end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.18 652.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.20 652.85 Td (, from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.71 652.85 Td (275.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.23 652.85 Td ( MMBOE at year end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.76 652.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 569.78 652.85 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 642.05 Td (e completed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.86 642.05 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.87 642.05 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 135.88 642.05 Td (26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.89 642.05 Td ( net\) wells during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.42 642.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.44 642.05 Td ( on our operated acreage, and full-year regional production decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.13 642.05 Td (26 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 560.66 642.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (year-over-year to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.02 631.25 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 124.54 631.25 Td ( MMBOE for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 176.55 631.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.57 631.25 Td (. ) Tj ET Q q 0 0 0 rg BT 203.91 631.25 Td (The decrease in production from our Eagle Ford shale program was primarily driven by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (sale of our outside-operated assets in the first quarter of 2017, reduced capital investment on our retained operated acreage, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 609.65 Td (reduced working and revenue interests associated with certain Eagle Ford shale wells as a result of the joint venture agreement ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 598.85 Td (discussed below) Tj ET Q q 0 0 0 rg BT 101.54 598.85 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 576.05 Td (In September 2017, we entered into a joint venture agreement with a third-party to drill 16 wells and complete 23 wells in a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (focused portion of our Eagle Ford North area \(“Phase 1 JV”\). In December 2018, we extended this agreement and added an additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (12 wells to be drilled and completed \(“Phase 2 JV”\). ) Tj ET Q q 0 0 0 rg BT 246.94 554.45 Td (The agreement provides that the third-party carries substantially all drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 543.65 Td (completion costs and receives a majority of the working and revenue interest in these wells until certain payout thresholds are reached. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 532.85 Td (This arrangement allows us to leverage third-party capital to prove up the value of our Eagle Ford North area, while also allowing us to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 522.05 Td (test cutting edge technology) Tj ET Q q 0 0 0 rg BT 147.41 522.05 Td (, capture additional technical data, satisfy certain lease obligations, and potentially expand economic drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 511.25 Td (inventory in the future. ) Tj ET Q q 0 0 0 rg BT 129.56 511.25 Td (All Phase 1 JV wells were drilled and completed as of December 31, 2018. Six of the 12 Phase 2 JV wells were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 500.45 Td (drilled during 2018, and we expect the remaining six wells to be drilled and all 12 wells to be completed during 2019.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 477.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 477.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 477.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 477.65 Td (, there were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.08 477.65 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.09 477.65 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.10 477.65 Td (23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.11 477.65 Td ( net\) wells that had been drilled but not completed in our South ) Tj ET Q q 0 0 0 rg BT 526.10 477.65 Td (T) Tj ET Q q 0 0 0 rg BT 530.60 477.65 Td (exas & ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 466.85 Td (Gulf Coast region. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 444.05 Td (Rocky Mountain Region. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.05 444.05 Td (W) Tj ET Q q 0 0 0 rg BT 183.38 444.05 Td (e divested all remaining producing assets in the Rocky Mountain region in the first half of 2018. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 433.25 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 97.03 433.25 Td (Note 3 – Divestitures, ) Tj ET Q q 0 0 0 rg BT 185.23 433.25 Td (Assets Held for Sale, and ) Tj ET Q q 0 0 0 rg BT 288.95 433.25 Td (Acquisitions) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 336.98 433.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.48 433.25 Td (in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (Reserves) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 76.03 410.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 387.65 Td ( ) Tj ET Q q 0 0 0 rg BT 74.34 387.65 Td (The table below presents summary information with respect to the estimates of our proved reserves for each of the years in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 376.85 Td (the three-year period ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 149.58 376.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.63 376.85 Td (. W) Tj ET Q q 0 0 0 rg BT 244.46 376.85 Td (e engaged Ryder Scott Company) Tj ET Q q 0 0 0 rg BT 376.87 376.85 Td (, L.P) Tj ET Q q 0 0 0 rg BT 394.22 376.85 Td (. \(“Ryder Scott”\) to audit at least 80 percent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 366.05 Td (of our total calculated estimated proved reserve PV) Tj ET Q q 0 0 0 rg BT 239.61 366.05 Td (-10 for each year presented. ) Tj ET Q q 0 0 0 rg BT 357.52 366.05 Td (The prices used in the calculation of proved reserve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 355.25 Td (estimates reflect the 12-month average of the first-day-of-the-month prices in accordance with Securities and Exchange Commission ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 344.45 Td (\(“SEC”\) rules, and were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.03 344.45 Td ($65.56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.55 344.45 Td ( per Bbl for oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.08 344.45 Td ($3.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.60 344.45 Td ( per MMBtu for gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.65 344.45 Td ($33.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.17 344.45 Td ( per Bbl for NGLs for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.75 344.45 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 333.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 333.65 Td (. W) Tj ET Q q 0 0 0 rg BT 71.85 333.65 Td (e then adjusted these prices to reflect appropriate quality and location dif) Tj ET Q q 0 0 0 rg BT 360.87 333.65 Td (ferentials over the period in estimating our proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 322.85 Td (reserves.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 300.05 Td (Reserve estimates are inherently imprecise and estimates for new discoveries and undeveloped locations are more imprecise ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (than reserve estimates for producing oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 277.63 289.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 323.49 289.25 Td (, we expect these estimates to change as new information ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 278.45 Td (becomes available. PV) Tj ET Q q 0 0 0 rg BT 129.56 278.45 Td (-10 shown in the following table is a non-GAAP) Tj ET Q q 0 0 0 rg BT 317.00 278.45 Td ( financial measure, and generally dif) Tj ET Q q 0 0 0 rg BT 460.92 278.45 Td (fers from the standardized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.65 Td (measure of discounted future net cash flows, the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 359.49 267.65 Td ( financial measure, because it does not include the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 256.85 Td (ef) Tj ET Q q 0 0 0 rg BT 43.34 256.85 Td (fects of income taxes on future net revenues. Neither PV) Tj ET Q q 0 0 0 rg BT 270.97 256.85 Td (-10 nor the standardized measure of discounted future net cash flows ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 246.05 Td (represents the fair market value of our oil and gas properties. W) Tj ET Q q 0 0 0 rg BT 292.46 246.05 Td (e and others in the oil and gas industry use PV) Tj ET Q q 0 0 0 rg BT 478.08 246.05 Td (-10 as a measure to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 235.25 Td (compare the relative size and value of proved reserves held without regard to the specific tax characteristics of such entities. Please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 224.45 Td (refer to the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 82.02 224.45 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 184.73 224.45 Td (erms) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.73 224.45 Td ( section of this report for additional information regarding these measures, and refer to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 213.65 Td (reconciliation of the standardized measure of discounted future net cash flows to PV) Tj ET Q q 0 0 0 rg BT 370.20 213.65 Td (-10 set forth below) Tj ET Q q 0 0 0 rg BT 443.74 213.65 Td (. ) Tj ET Q q 0 0 0 rg BT 451.08 213.65 Td (The actual quantities and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td (present value of our estimated proved reserves may be more or less than we have estimated. No estimates of our proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (have been filed with or included in reports to any federal authority or agency) Tj ET Q q 0 0 0 rg BT 337.51 192.05 Td (, other than the SEC, since the beginning of the last fiscal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.25 Td (year) Tj ET Q q 0 0 0 rg BT 53.01 181.25 Td (. ) Tj ET Q q 0 0 0 rg BT 60.35 181.25 Td (The following table should be read along with the section entitled ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 320.52 181.25 Td (Risk Factors – ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 380.53 181.25 Td (Risks Related to Our Business) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 502.58 181.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.08 181.25 Td (below) Tj ET Q q 0 0 0 rg BT 528.10 181.25 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 158.45 Td (Our ability to replace our production is critical to us. Please refer to the reserve life index term in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 472.68 158.45 Td (Glossary of Oil and Gas ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 147.65 Td (T) Tj ET Q q 0 0 0 rg BT 40.67 147.65 Td (erms) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.67 147.65 Td ( section of this report for information describing how this metric is calculated. ) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (The following table summarizes estimated proved reserves, the standardized measure of discounted future net cash flows, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (PV) Tj ET Q q 0 0 0 rg BT 47.51 729.65 Td (-10, and reserve life index as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.58 729.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.63 729.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.63 729.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.65 729.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.17 729.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.19 729.65 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 691.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 691.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 691.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 691.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 663.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 663.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 663.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 663.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 635.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 635.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 635.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 635.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 635.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 635.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 607.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 607.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 607.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 607.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 607.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 607.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 579.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 579.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 579.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 579.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 579.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 579.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 551.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 551.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 551.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 551.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 551.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 551.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 523.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 523.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 523.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 523.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 523.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 523.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 495.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 495.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 495.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 495.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 495.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 495.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 467.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 467.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 467.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 467.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 467.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 467.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 439.15 292.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 439.15 71.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 439.15 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 439.15 71.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 439.15 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 439.15 71.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 413.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 413.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 413.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 413.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 413.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 413.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 385.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 385.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 385.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 385.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 385.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 385.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 357.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 357.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 357.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 357.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 357.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 357.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 329.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 329.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 329.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 329.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 329.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 329.15 71.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 705.15 m 399.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 705.15 m 403.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 705.15 m 474.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 705.15 m 478.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 705.15 m 549.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 691.15 m 399.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 691.15 m 474.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 691.15 m 549.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 621.15 m 399.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 621.15 m 474.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 621.15 m 549.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 621.15 m 399.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 621.15 m 474.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 621.15 m 549.5 621.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 551.15 m 399.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 551.15 m 474.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 551.15 m 549.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 551.15 m 399.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 551.15 m 474.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 551.15 m 549.5 551.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 481.15 m 399.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 481.15 m 474.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 481.15 m 549.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 481.15 m 399.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 481.15 m 474.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 481.15 m 549.5 481.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 400.15 m 399.5 400.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 398.15 m 399.5 398.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 400.15 m 474.5 400.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 398.15 m 474.5 398.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 400.15 m 549.5 400.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 398.15 m 549.5 398.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 357.15 m 399.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 357.15 m 474.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 357.15 m 549.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 357.15 m 399.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 344.15 m 399.5 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 342.15 m 399.5 342.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 357.15 m 474.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 344.15 m 474.5 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 342.15 m 474.5 342.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 357.15 m 549.5 357.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 344.15 m 549.5 344.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 342.15 m 549.5 342.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.70 709.55 Td (As of December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 353.45 695.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.45 695.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.45 695.55 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 681.55 Td (Reserve data:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 667.55 Td (Proved developed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 653.55 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.40 653.55 Td (68.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 653.55 Td (58.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.40 653.55 Td (48.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 639.55 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 639.55 Td (699.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 639.55 Td (642.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 639.55 Td (609.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 625.55 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.40 625.55 Td (60.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 625.55 Td (49.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.40 625.55 Td (58.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 611.55 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 93.50 615.84 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 611.55 Td (244.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 611.55 Td (214.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 611.55 Td (208.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 597.55 Td (Proved undeveloped) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 583.55 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 583.55 Td (107.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 583.55 Td (99.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.40 583.55 Td (56.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 569.55 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 569.55 Td (622.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 569.55 Td (637.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 569.55 Td (502.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 555.55 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.40 555.55 Td (47.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 555.55 Td (47.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.40 555.55 Td (47.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 541.55 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 93.50 545.84 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 541.55 Td (258.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 541.55 Td (253.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 541.55 Td (187.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 527.55 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 527.55 Td (otal proved ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 90.53 531.84 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 513.55 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 513.55 Td (175.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 513.55 Td (158.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 513.55 Td (104.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 499.55 Td (Gas \(Bcf\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 97.50 503.84 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.90 499.55 Td (1,321.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.90 499.55 Td (1,280.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.90 499.55 Td (1,1) Tj ET Q q 0 0 0 rg BT 523.41 499.55 Td (1) Tj ET Q q 0 0 0 rg BT 528.42 499.55 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 485.55 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 485.55 Td (107.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 485.55 Td (96.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 485.55 Td (105.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 471.55 Td (MMBOE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.40 471.55 Td (503.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 471.55 Td (468.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.40 471.55 Td (395.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 457.55 Td (Proved developed reserves %) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.90 457.55 Td (49) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.95 457.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.90 457.55 Td (46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.95 457.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.90 457.55 Td (53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.95 457.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 443.55 Td (Proved undeveloped reserves %) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.90 443.55 Td (51) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.95 443.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.90 443.55 Td (54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.95 443.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.90 443.55 Td (47) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.95 443.55 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 417.55 Td (Reserve data \(in millions\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 403.55 Td (Standardized measure of discounted future net cash flows \(GAAP\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.00 403.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.90 403.55 Td (4,654.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 403.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.90 403.55 Td (3,024.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.00 403.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.90 403.55 Td (1,152.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 389.55 Td (PV) Tj ET Q q 0 0 0 rg BT 50.76 389.55 Td (-10 \(non-GAAP\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 375.55 Td (Proved developed PV) Tj ET Q q 0 0 0 rg BT 143.81 375.55 Td (-10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.00 375.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.90 375.55 Td (3,084.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 375.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.90 375.55 Td (1,984.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.00 375.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.90 375.55 Td (1,051.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 361.55 Td (Proved undeveloped PV) Tj ET Q q 0 0 0 rg BT 153.57 361.55 Td (-10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.90 361.55 Td (2,020.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.90 361.55 Td (1,072.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.40 361.55 Td (101.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 347.55 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 347.55 Td (otal proved PV) Tj ET Q q 0 0 0 rg BT 102.04 347.55 Td (-10 \(non-GAAP\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.00 347.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.90 347.55 Td (5,104.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 347.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.90 347.55 Td (3,056.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.00 347.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.90 347.55 Td (1,152.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 319.55 Td (Reserve life index \(years\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.40 319.55 Td (1) Tj ET Q q 0 0 0 rg BT 378.41 319.55 Td (1.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.40 319.55 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.40 319.55 Td (7.2) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 308.45 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 300.94 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 296.65 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 290.14 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 285.85 Td (For the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 137.05 285.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.10 285.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.10 285.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.12 285.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.64 285.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.66 285.85 Td (, proved gas reserves contained 59.1 Bcf, 48.1 Bcf, and 43.7 Bcf of gas, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 275.05 Td (respectively) Tj ET Q q 0 0 0 rg BT 100.85 275.05 Td (, that we expect to produce and use as a field equipment fuel source \(primarily to power compressors\).) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 252.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 252.25 Td (The following table reconciles the standardized measure of discounted future net cash flows \(GAAP\) to the pre-tax PV) Tj ET Q q 0 0 0 rg BT 540.75 252.25 Td (-10 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 241.45 Td (\(non-GAAP\) of total estimated proved reserves. Please see the definitions of standardized measure of discounted future net cash flows ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 230.65 Td (and PV) Tj ET Q q 0 0 0 rg BT 65.03 230.65 Td (-10 in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 105.05 230.65 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 207.76 230.65 Td (erms) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.76 230.65 Td ( section of this report.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 178.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 178.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 178.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 178.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 178.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 178.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 150.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 150.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 150.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 150.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 150.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 150.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 122.15 292.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 122.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 122.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 122.15 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 122.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 122.15 71.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 206.14999999999998 m 399.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 206.14999999999998 m 403.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 206.14999999999998 m 474.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 206.14999999999998 m 478.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 206.14999999999998 m 549.5 206.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 192.14999999999998 m 399.5 192.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 192.14999999999998 m 474.5 192.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 192.14999999999998 m 549.5 192.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 136.14999999999998 m 399.5 136.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 136.14999999999998 m 474.5 136.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 136.14999999999998 m 549.5 136.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 136.14999999999998 m 399.5 136.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 108.14999999999998 m 399.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 108.14999999999998 m 474.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 108.14999999999998 m 549.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 108.14999999999998 m 399.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 95.14999999999998 m 399.5 95.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 93.14999999999998 m 399.5 93.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 108.14999999999998 m 474.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 95.14999999999998 m 474.5 95.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 93.14999999999998 m 474.5 93.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 108.14999999999998 m 549.5 108.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 95.14999999999998 m 549.5 95.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 93.14999999999998 m 549.5 93.14999999999998 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.70 210.55 Td (As of December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 353.45 196.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.45 196.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.45 196.55 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.25 182.55 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 38.00 168.55 Td (Standardized measure of discounted future net cash flows \(GAAP\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 168.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.95 168.55 Td (4,654.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.00 168.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.95 168.55 Td (3,024.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 168.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.95 168.55 Td (1,152.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 38.00 154.55 Td (Add: 10 percent annual discount, net of income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.95 154.55 Td (3,847.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.95 154.55 Td (2,573.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.45 154.55 Td (937.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 38.00 140.55 Td (Add: future undiscounted income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.95 140.55 Td (1,012.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.45 140.55 Td (205.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.00 140.55 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 38.00 126.55 Td (Undiscounted future net cash flows) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.95 126.55 Td (9,513.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.95 126.55 Td (5,803.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.95 126.55 Td (2,089.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 38.00 112.55 Td (Less: 10 percent annual discount without tax ef) Tj ET Q q 0 0 0 rg BT 225.46 112.55 Td (fect) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.95 112.55 Td (\(4,409.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.00 112.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.95 112.55 Td (\(2,746.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.00 112.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.45 112.55 Td (\(937.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 112.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 98.55 Td (PV) Tj ET Q q 0 0 0 rg BT 50.51 98.55 Td (-10 \(non-GAAP\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.00 98.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.95 98.55 Td (5,104.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.00 98.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.95 98.55 Td (3,056.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.00 98.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.95 98.55 Td (1,152.1) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.45 33.95 Td (9) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Proved Undeveloped Reserves) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (Proved undeveloped reserves include those reserves that are expected to be recovered from future wells on undrilled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (acreage, or from existing wells where a relatively major expenditure is required for recompletion. Undeveloped reserves may be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (classified as proved reserves on undrilled acreage directly of) Tj ET Q q 0 0 0 rg BT 276.96 696.05 Td (fsetting development areas that are reasonably certain of production when ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (drilled or where reliable technology provides reasonable certainty of economic producibility) Tj ET Q q 0 0 0 rg BT 395.53 685.25 Td (. Undrilled locations may be classified as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (having proved undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (within five years, unless specific circumstances justify a longer time. ) Tj ET Q q 0 0 0 rg BT 310.61 663.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.62 663.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.66 663.65 Td (, we did not have any proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (undeveloped reserves that had been on our books in excess of five years, and none of our proved undeveloped reserves were on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (acreage expected to expire or on acreage that was not expected to be held through renewal before before the targeted completion ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (date.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 608.45 Td (For proved undeveloped locations that are more than one development spacing area from developed producing locations, we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (utilized reliable geologic and engineering technology when booking estimated proved undeveloped reserves. Of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.80 597.65 Td (258.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.33 597.65 Td ( MMBOE of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (total proved undeveloped reserves as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.60 586.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.65 586.85 Td (, approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.18 586.85 Td (81.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.69 586.85 Td ( MMBOE of proved undeveloped reserves in our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 576.05 Td (olfcamp and Lower Spraberry shale positions in the Midland Basin and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.99 576.05 Td (71.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.51 576.05 Td ( MMBOE of proved undeveloped reserves in our Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (Ford shale position were of) Tj ET Q q 0 0 0 rg BT 143.89 565.25 Td (fset by more than one development spacing area from the nearest developed producing location. W) Tj ET Q q 0 0 0 rg BT 542.47 565.25 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (incorporated public and proprietary data from multiple sources to establish geologic continuity of each formation and their producing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 543.65 Td (properties. ) Tj ET Q q 0 0 0 rg BT 83.36 543.65 Td (This included seismic data and interpretations \(3-D and micro seismic\), open hole log information \(both vertically and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 532.85 Td (horizontally collected\) and petrophysical analysis of that log data, mud logs, gas sample analysis, measurements of total organic ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 522.05 Td (content, thermal maturity) Tj ET Q q 0 0 0 rg BT 134.37 522.05 Td (, test production, fluid properties, and core data as well as statistical performance data yielding predictable and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 511.25 Td (repeatable reserve estimates within certain analogous areas. ) Tj ET Q q 0 0 0 rg BT 283.47 511.25 Td (These locations were limited to only those areas where both established ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 500.45 Td (geologic consistency and suf) Tj ET Q q 0 0 0 rg BT 150.91 500.45 Td (ficient statistical performance data could be demonstrated to provide reasonably certain results. In all ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 489.65 Td (other areas, we restricted proved undeveloped locations to development spacing areas that are immediately adjacent to developed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 478.85 Td (spacing areas.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 456.05 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 456.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 456.05 Td (, estimated proved undeveloped reserves totaled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.18 456.05 Td (258.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.70 456.05 Td ( MMBOE, which was an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.73 456.05 Td (increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.75 456.05 Td ( of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.26 456.05 Td (5.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.77 456.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (MMBOE, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 445.25 Td (two percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 132.03 445.25 Td (, from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 157.53 445.25 Td (253.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.05 445.25 Td ( MMBOE at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.06 445.25 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.11 445.25 Td (.  ) Tj ET Q q 0 0 0 rg BT 315.45 445.25 Td (The following table provides a reconciliation of our proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 434.45 Td (undeveloped reserves for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.61 434.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.66 434.45 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 400.95 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 400.95 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 372.95 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 372.95 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 344.95 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 344.95 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 316.95 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 316.95 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 288.95 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 288.95 71.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 400.95000000000005 m 381.5 400.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 288.95000000000005 m 381.5 288.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 288.95000000000005 m 381.5 288.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 275.95000000000005 m 381.5 275.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 273.95000000000005 m 381.5 273.95000000000005 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.05 414.35 Td (T) Tj ET Q q 0 0 0 rg BT 339.88 414.35 Td (otal ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.25 405.35 Td (\(MMBOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 391.35 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 391.35 Td (otal proved undeveloped reserves:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 377.35 Td (Beginning of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.45 377.35 Td (253.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 363.35 Td (Revisions of previous estimates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.45 363.35 Td (\(54.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 363.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 349.35 Td (Additions from discoveries, extensions, and infill) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.45 349.35 Td (151.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 335.35 Td (Sales of reserves) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.45 335.35 Td (\(22.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 335.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 321.35 Td (Purchases of minerals in place) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.45 321.35 Td (0.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 307.35 Td (Removed for five-year rule) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.45 307.35 Td (\(22.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 307.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.00 293.35 Td (Conversions to proved developed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.45 293.35 Td (\(47.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 293.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 279.35 Td (End of year) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.45 279.35 Td (258.6) Tj ET Q BT /F2 10.00 Tf ET BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 252.65 Td (Revisions of previous estimates. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.06 252.65 Td (Revisions of previous estimates includes a downward performance revision of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.20 252.65 Td (37.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.72 252.65 Td ( MMBOE ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 241.85 Td (from our Eagle Ford shale program as a result of optimizing our development plan. Of) Tj ET Q q 0 0 0 rg BT 379.01 241.85 Td (fsetting these downward reserve revisions are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 231.05 Td (proved undeveloped reserves in our Eagle Ford shale program that are engineered with wider spacing and longer lateral completions, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 220.25 Td (which are reflected as additions from discoveries, extensions, and infill. In addition, we had downward performance revisions of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.26 220.25 Td (17.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 563.78 220.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 209.45 Td (MMBOE in our Midland Basin program as we updated certain of our previous assumptions based on actual well results observed during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 198.65 Td (the year) Tj ET Q q 0 0 0 rg BT 68.02 198.65 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 175.85 Td (Additions from discoveries, extensions, and infill. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.59 175.85 Td (W) Tj ET Q q 0 0 0 rg BT 278.93 175.85 Td (e added ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.96 175.85 Td (67.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.48 175.85 Td ( MMBOE and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.99 175.85 Td (78.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.51 175.85 Td ( MMBOE of infill estimated proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 165.05 Td (undeveloped reserves in our Midland Basin and Eagle Ford shale programs, respectively) Tj ET Q q 0 0 0 rg BT 389.03 165.05 Td (, in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.53 165.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.55 165.05 Td (. W) Tj ET Q q 0 0 0 rg BT 439.39 165.05 Td (e added an additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.96 165.05 Td (5.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.47 165.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 154.25 Td (MMBOE of estimated proved undeveloped reserves in the Midland Basin through various extensions and discoveries. ) Tj ET Q q 0 0 0 rg BT 508.59 154.25 Td (The majority of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 143.45 Td (additions in our Midland Basin program were the result of future development projects identified by our on-going development activities, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 132.65 Td (while the majority of additions in our Eagle Ford shale program were from newly identified locations based on an optimized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 121.85 Td (development plan that includes wider well spacing and longer lateral completions.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 99.05 Td (Sales of reserves. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 149.03 99.05 Td (Proved undeveloped reserves sold during the year primarily related to our PRB Divestiture, Divide County ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 88.25 Td (Divestiture, and Half) Tj ET Q q 0 0 0 rg BT 116.87 88.25 Td (f East Divestiture. ) Tj ET Q q 0 0 0 rg BT 192.23 88.25 Td (There was also a reduction in proved undeveloped reserves as a result of the joint venture we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 77.45 Td (executed in December 2018 for the development of certain Eagle Ford shale wells in which our working interest was reduced.) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (10) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (Removed for five-year rule. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.54 740.45 Td (As a result of our testing and delineation ef) Tj ET Q q 0 0 0 rg BT 355.99 740.45 Td (forts in 2018, we removed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.04 740.45 Td (22.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.56 740.45 Td ( MMBOE of estimated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (proved undeveloped reserves due to changes in our future development activities. Our development plans continue to be focused on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (maximizing returns and the value of our assets, and changes to these plans in 2018 caused these locations to be reclassified to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (unproved reserve categories and were replaced by higher quality proved undeveloped reserves, which are reflected as additions from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (discoveries, extensions, and infill.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 674.45 Td (Conversions to proved developed. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 213.59 674.45 Td (Conversions of proved undeveloped reserves to proved developed reserves were in our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (Midland Basin and Eagle Ford shale programs. Our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 246.11 663.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.13 663.65 Td ( conversion track record was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.17 663.65 Td (19 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.70 663.65 Td (. W) Tj ET Q q 0 0 0 rg BT 441.54 663.65 Td (e expect our conversion track ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (record to increase in 2019 as a result of increased capital expenditures related to converting proved undeveloped reserves. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 642.05 Td (, we incurred ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 110.04 642.05 Td ($490.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 165.58 642.05 Td ( on projects with reserves booked as proved undeveloped at the end of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.76 642.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.78 642.05 Td (, of which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.30 642.05 Td ($442.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 566.83 642.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (was spent on proved undeveloped reserves that converted to proved developed reserves by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.23 631.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.28 631.25 Td (. ) Tj ET Q q 0 0 0 rg BT 491.28 631.25 Td (At ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.29 631.25 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 620.45 Td (, drilled but not completed wells represented ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.62 620.45 Td (40.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.14 620.45 Td ( MMBOE of total estimated proved undeveloped reserves. W) Tj ET Q q 0 0 0 rg BT 496.59 620.45 Td (e expect to incur ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 609.65 Td ($254.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 91.53 609.65 Td ( of capital expenditures in completing these drilled but not completed wells, and we expect all estimated proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 598.85 Td (undeveloped reserves to be converted to proved developed reserves within five years from their initial booking as proved undeveloped ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 588.05 Td (reserves.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 566.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 566.45 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 566.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 566.45 Td (, estimated future development costs relating to our proved undeveloped reserves were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.25 566.45 Td ($661.7 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 555.65 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.51 555.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.51 555.65 Td ($457.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.04 555.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.56 555.65 Td ($599.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.09 555.65 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.10 555.65 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.12 555.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.12 555.65 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.14 555.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.66 555.65 Td (2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.68 555.65 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.53 555.65 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 532.85 Td (Internal Controls Over Proved Reserves Estimates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 510.05 Td (Our internal controls over the recording of proved reserves are structured to objectively and accurately estimate our reserve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.25 Td (quantities and values in compliance with the SEC’) Tj ET Q q 0 0 0 rg BT 234.45 499.25 Td (s regulations. Our process for managing and monitoring our proved reserves is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 488.45 Td (delegated to our corporate reserves group and is coordinated by our Corporate Engineering Manager) Tj ET Q q 0 0 0 rg BT 438.25 488.45 Td (, subject to the oversight of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 477.65 Td (management and the ) Tj ET Q q 0 0 0 rg BT 123.06 477.65 Td (Audit Committee of our Board of Directors, as discussed below) Tj ET Q q 0 0 0 rg BT 372.68 477.65 Td (. Our Corporate Engineering Manager has ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 466.85 Td (approximately 10 years of experience in the energy industry and has been employed by the Company for nine years. He holds a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 456.05 Td (Bachelor of Science Degree in Petroleum Engineering from Montana ) Tj ET Q q 0 0 0 rg BT 311.99 456.05 Td (T) Tj ET Q q 0 0 0 rg BT 316.49 456.05 Td (ech of the University of Montana and is a Registered ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (Professional Petroleum Engineer in the states of ) Tj ET Q q 0 0 0 rg BT 230.95 445.25 Td (T) Tj ET Q q 0 0 0 rg BT 235.45 445.25 Td (exas, W) Tj ET Q q 0 0 0 rg BT 267.87 445.25 Td (yoming and Montana. He is also a member of the Society of Petroleum ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 434.45 Td (Engineers. ) Tj ET Q q 0 0 0 rg BT 83.87 434.45 Td (T) Tj ET Q q 0 0 0 rg BT 88.37 434.45 Td (echnical, geological, and engineering reviews of our assets are performed throughout the year by our regional staf) Tj ET Q q 0 0 0 rg BT 541.97 434.45 Td (f. ) Tj ET Q q 0 0 0 rg BT 551.81 434.45 Td (This ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 423.65 Td (data, in conjunction with economic data and our ownership information, is used in making a determination of estimated proved reserve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 412.85 Td (quantities. Our regional engineering technical staf) Tj ET Q q 0 0 0 rg BT 235.96 412.85 Td (f do not report directly to our Corporate Engineering Manager; they report to either ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 402.05 Td (their respective regional technical managers or directly to the regional manager) Tj ET Q q 0 0 0 rg BT 350.67 402.05 Td (. ) Tj ET Q q 0 0 0 rg BT 358.01 402.05 Td (This design is intended to promote objective and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 391.25 Td (independent analysis within our regions in the proved reserves estimation process.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 368.45 Td (Third-party Reserves ) Tj ET Q q 0 0 0 rg BT 122.19 368.45 Td (Audit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 345.65 Td (Ryder Scott performed an independent audit using its own engineering assumptions, but with economic and ownership data ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 334.85 Td (we provided.  Ryder Scott audits a minimum of 80 percent of our total calculated proved reserve PV) Tj ET Q q 0 0 0 rg BT 431.70 334.85 Td (-10.  In the aggregate, the proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 324.05 Td (reserve amounts of our audited properties determined by Ryder Scott are required to be within 10 percent of our proved reserve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.25 Td (amounts for the total company) Tj ET Q q 0 0 0 rg BT 156.40 313.25 Td (, as well as for each respective region.  Ryder Scott is an independent petroleum engineering consulting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.45 Td (firm that has been providing petroleum engineering consulting services throughout the world for over 70 years.  ) Tj ET Q q 0 0 0 rg BT 479.58 302.45 Td (The technical person at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 291.65 Td (Ryder Scott primarily responsible for overseeing our reserves audit is a Managing Senior V) Tj ET Q q 0 0 0 rg BT 397.51 291.65 Td (ice President who received a Bachelor of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 280.85 Td (Science degree in Chemical Engineering from Brigham ) Tj ET Q q 0 0 0 rg BT 257.45 280.85 Td (Y) Tj ET Q q 0 0 0 rg BT 262.63 280.85 Td (oung University in 2003. He is a licensed Professional Engineer in the State ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 270.05 Td (of ) Tj ET Q q 0 0 0 rg BT 45.84 270.05 Td (T) Tj ET Q q 0 0 0 rg BT 50.34 270.05 Td (exas and a member of the Society of Petroleum Engineers. ) Tj ET Q q 0 0 0 rg BT 290.81 270.05 Td (The Ryder Scott ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.33 270.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.36 270.05 Td ( report concerning our reserves is included as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 259.25 Td (Exhibit 99.1.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 236.45 Td (In addition to a third-party audit, our reserves are reviewed by our management with the ) Tj ET Q q 0 0 0 rg BT 423.19 236.45 Td (Audit Committee of our Board of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (Directors. Our management, which includes our President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 363.49 225.65 Td (ficer) Tj ET Q q 0 0 0 rg BT 380.00 225.65 Td (, Executive V) Tj ET Q q 0 0 0 rg BT 432.36 225.65 Td (ice President and Chief Financial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 214.85 Td (Of) Tj ET Q q 0 0 0 rg BT 45.34 214.85 Td (ficer) Tj ET Q q 0 0 0 rg BT 61.84 214.85 Td (, and Executive V) Tj ET Q q 0 0 0 rg BT 131.72 214.85 Td (ice President - Operations, is responsible for reviewing and verifying that the estimate of proved reserves is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 204.05 Td (reasonable, complete, and accurate. ) Tj ET Q q 0 0 0 rg BT 186.43 204.05 Td (The ) Tj ET Q q 0 0 0 rg BT 203.94 204.05 Td (Audit Committee reviews a summary of the final reserves estimate in conjunction with Ryder ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 193.25 Td (Scott’) Tj ET Q q 0 0 0 rg BT 58.35 193.25 Td (s results and also meets with Ryder Scott representatives, apart from our management, from time to time to discuss processes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 182.45 Td (and findings.) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.30 33.95 Td (1) Tj ET Q q 0 0 0 rg BT 305.64 33.95 Td (1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Production) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (The following table summarizes the volumes and realized prices of oil, gas, and NGLs produced and sold from properties in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (which we held an interest during the periods presented. Realized prices presented below exclude the ef) Tj ET Q q 0 0 0 rg BT 450.09 706.85 Td (fects of derivative contract ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (settlements. ) Tj ET Q q 0 0 0 rg BT 89.02 696.05 Td (Also presented is a summary of related production expense on a per BOE basis.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 657.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 657.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 657.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 657.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 629.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 629.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 629.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 629.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 601.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 601.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 601.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 601.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 573.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 573.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 573.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 573.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 545.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 545.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 545.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 545.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 545.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 545.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 517.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 517.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 517.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 517.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 517.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 517.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 489.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 489.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 489.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 489.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 489.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 489.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 461.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 461.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 461.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 461.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 461.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 461.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 433.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 433.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 433.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 433.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 433.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 433.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 405.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 405.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 405.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 405.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 405.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 405.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 377.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 377.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 377.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 377.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 377.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 377.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 349.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 349.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 349.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 349.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 349.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 349.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 321.55 291.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 321.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 321.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 321.55 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 321.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 321.55 71.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 671.55 m 398.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 671.55 m 402.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 671.55 m 473.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 671.55 m 477.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 671.55 m 548.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 657.55 m 398.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 657.55 m 473.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 657.55 m 548.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 601.55 m 398.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 601.55 m 473.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 601.55 m 548.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 601.55 m 398.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 588.55 m 398.5 588.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 586.55 m 398.5 586.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 601.55 m 473.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 588.55 m 473.5 588.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 586.55 m 473.5 586.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 601.55 m 548.5 601.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 588.55 m 548.5 588.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 586.55 m 548.5 586.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 531.55 m 398.5 531.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 531.55 m 398.5 531.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 518.55 m 398.5 518.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 516.55 m 398.5 516.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 531.55 m 473.5 531.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 518.55 m 473.5 518.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 516.55 m 473.5 516.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 531.55 m 548.5 531.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 518.55 m 548.5 518.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 516.55 m 548.5 516.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 461.55 m 398.5 461.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 461.55 m 473.5 461.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 461.55 m 548.5 461.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 448.55 m 398.5 448.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 446.55 m 398.5 446.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 448.55 m 473.5 448.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 446.55 m 473.5 446.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 461.55 m 548.5 461.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 448.55 m 548.5 448.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 446.55 m 548.5 446.55 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.55 675.95 Td (For the ) Tj ET Q q 0 0 0 rg BT 396.47 675.95 Td (Y) Tj ET Q q 0 0 0 rg BT 402.14 675.95 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 352.45 661.95 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 427.45 661.95 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.45 661.95 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 647.95 Td (Net production volumes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 633.95 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 633.95 Td (18.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 633.95 Td (13.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 633.95 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 619.95 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.45 619.95 Td (103.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.45 619.95 Td (123.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.45 619.95 Td (146.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 605.95 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.45 605.95 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 605.95 Td (10.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 605.95 Td (14.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 591.95 Td (Equivalent \(MMBOE\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 144.02 596.24 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 591.95 Td (43.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 591.95 Td (44.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 591.95 Td (55.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 577.95 Td (Midland Basin net production volumes ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 193.59 582.24 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 563.95 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 563.95 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.45 563.95 Td (8.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.45 563.95 Td (2.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 549.95 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 549.95 Td (25.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 549.95 Td (14.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.45 549.95 Td (5.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 535.95 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.00 535.95 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.00 535.95 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.00 535.95 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 521.95 Td (Equivalent \(MMBOE\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 144.02 526.24 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 521.95 Td (20.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 521.95 Td (1) Tj ET Q q 0 0 0 rg BT 457.46 521.95 Td (1.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.45 521.95 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 507.95 Td (Eagle Ford shale net production volumes ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 205.10 512.24 Td (\(2\)\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 493.95 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.45 493.95 Td (1.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.45 493.95 Td (1.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.45 493.95 Td (5.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 479.95 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 479.95 Td (76.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.45 479.95 Td (104.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.45 479.95 Td (129.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 465.95 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.45 465.95 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 465.95 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 465.95 Td (13.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 451.95 Td (Equivalent \(MMBOE\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 144.02 456.24 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 451.95 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 451.95 Td (29.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 451.95 Td (40.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 437.95 Td (Realized price, before the ef) Tj ET Q q 0 0 0 rg BT 151.40 437.95 Td (fect of derivative settlements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 423.95 Td (Oil \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 423.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.45 423.95 Td (56.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 423.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.45 423.95 Td (47.88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 423.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.45 423.95 Td (36.85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 409.95 Td (Gas \(per Mcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 409.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 409.95 Td (3.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 409.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 409.95 Td (3.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 409.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 409.95 Td (2.30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 395.95 Td (NGLs \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 395.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.45 395.95 Td (27.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 395.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.45 395.95 Td (22.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 395.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.45 395.95 Td (16.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 381.95 Td (Per BOE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 381.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.45 381.95 Td (37.27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 381.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.45 381.95 Td (28.20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 381.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.45 381.95 Td (21.32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 367.95 Td (Production expense per BOE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 353.95 Td (Lease operating expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 353.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 353.95 Td (4.74) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 353.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 353.95 Td (4.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 353.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 353.95 Td (3.51) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 339.95 Td (T) Tj ET Q q 0 0 0 rg BT 62.33 339.95 Td (ransportation costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 339.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 339.95 Td (4.36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 339.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 339.95 Td (5.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 339.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 339.95 Td (6.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 325.95 Td (Production taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 325.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 325.95 Td (1.52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 325.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 325.95 Td (1.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 325.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 325.95 Td (0.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 311.95 Td (Ad valorem tax expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 311.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 311.95 Td (0.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.00 311.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 311.95 Td (0.34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 311.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.45 311.95 Td (0.21) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 300.85 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 293.34 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 289.05 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 282.54 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 278.25 Td (For each of the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.07 278.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.12 278.25 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.64 278.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.66 278.25 Td (, total estimated proved reserves attributed to our Midland Basin ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 267.45 Td (properties exceeded 15 percent of our total estimated proved reserves expressed on an equivalent basis. For each of the annual ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 256.65 Td (periods presented, total estimated proved reserves attributed to our Eagle Ford shale properties exceeded 15 percent of our total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 245.85 Td (estimated proved reserves expressed on an equivalent basis.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 239.34 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 235.05 Td (During the first quarter of 2017, we completed a divestiture of our outside-operated Eagle Ford shale assets. ) Tj ET Q q 0 0 0 rg BT 489.58 235.05 Td (These assets ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 224.25 Td (represented approximately 1.5 MMBOE and 9.7 MMBOE of net production on an equivalent basis for the years ended December ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 213.45 Td (31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.01 213.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 89.03 213.45 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.55 213.45 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.57 213.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 183.42 213.45 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 190.65 Td (Productive W) Tj ET Q q 0 0 0 rg BT 93.34 190.65 Td (ells) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 108.36 190.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 167.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 167.85 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 167.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 167.85 Td (, we had working interests in 715 gross \(671 net\) productive oil wells and 504 gross \(485 net\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 157.05 Td (productive gas wells. Productive wells are either wells producing in commercial quantities or wells mechanically capable of commercial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.25 Td (production, but are temporarily shut-in. Multiple completions in the same wellbore are counted as one well. ) Tj ET Q q 0 0 0 rg BT 466.22 146.25 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.23 146.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 568.28 146.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.45 Td (two of these wells had multiple completions. ) Tj ET Q q 0 0 0 rg BT 215.59 135.45 Td (A) Tj ET Q q 0 0 0 rg BT 221.10 135.45 Td ( well is categorized under state reporting regulations as an oil well or a gas well based on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 124.65 Td (the ratio of gas to oil when it first commenced production, but such designation may not be indicative of current production composition.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (12) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Drilling and Completion ) Tj ET Q q 0 0 0 rg BT 139.66 740.45 Td (Activity) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (All of our drilling and completion activities are conducted by independent contractors. W) Tj ET Q q 0 0 0 rg BT 423.03 717.65 Td (e do not own any drilling or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (completion equipment. ) Tj ET Q q 0 0 0 rg BT 131.39 706.85 Td (The following table summarizes the number of operated and outside-operated wells drilled and completed or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (recompleted on our properties in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 168.07 696.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 188.09 696.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.10 696.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 213.12 696.05 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.63 696.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.66 696.05 Td (, excluding non-consented projects, active injector wells, salt water disposal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (wells, or wells in which we own only a royalty interest:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 632.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 632.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 632.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 632.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 632.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 632.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 632.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 604.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 604.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 604.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 604.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 604.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 604.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 604.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 576.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 576.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 576.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 576.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 576.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 576.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 576.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 548.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 548.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 548.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 548.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 548.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 548.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 548.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 520.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 520.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 520.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 520.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 520.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 520.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 520.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 492.75 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 492.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 492.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 492.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 492.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 492.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 492.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 492.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 492.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 492.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 492.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 492.75 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 660.75 m 253.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 660.75 m 257.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 660.75 m 312.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 660.75 m 316.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 660.75 m 371.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 660.75 m 375.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 660.75 m 430.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 660.75 m 434.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 660.75 m 489.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 660.75 m 493.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 660.75 m 548.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 646.75 m 253.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 646.75 m 257.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 646.75 m 312.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 660.75 m 316.5 660.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 646.75 m 371.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 646.75 m 375.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 646.75 m 430.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 646.75 m 489.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 646.75 m 493.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 646.75 m 548.5 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 632.75 m 253.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 632.75 m 312.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 632.75 m 371.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 632.75 m 430.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 632.75 m 489.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 632.75 m 548.5 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 576.75 m 312.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 576.75 m 430.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 576.75 m 253.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 562.75 m 253.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 576.75 m 312.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 562.75 m 312.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 576.75 m 371.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 562.75 m 371.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 576.75 m 430.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 562.75 m 430.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 576.75 m 489.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 562.75 m 489.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 576.75 m 548.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 562.75 m 548.5 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 506.75 m 253.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 492.75 m 253.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 506.75 m 312.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 492.75 m 312.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 506.75 m 371.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 492.75 m 371.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 506.75 m 430.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 492.75 m 430.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 506.75 m 489.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 492.75 m 489.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 506.75 m 548.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 492.75 m 548.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 492.75 m 253.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 479.75 m 253.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 477.75 m 253.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 492.75 m 312.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 479.75 m 312.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 477.75 m 312.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 492.75 m 371.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 479.75 m 371.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 477.75 m 371.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 492.75 m 430.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 479.75 m 430.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 477.75 m 430.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 492.75 m 489.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 479.75 m 489.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 477.75 m 489.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 492.75 m 548.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 479.75 m 548.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 477.75 m 548.5 477.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.05 665.15 Td (For the ) Tj ET Q q 0 0 0 rg BT 331.97 665.15 Td (Y) Tj ET Q q 0 0 0 rg BT 337.64 665.15 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.95 651.15 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.95 651.15 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 480.95 651.15 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 212.45 637.15 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 277.20 637.15 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.45 637.15 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.20 637.15 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.45 637.15 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.20 637.15 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 623.15 Td (Development wells) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 609.15 Td (Oil) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 609.15 Td (103) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.95 609.15 Td (92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 609.15 Td (56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.95 609.15 Td (46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.95 609.15 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.95 609.15 Td (73) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 595.15 Td (Gas) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.95 595.15 Td (39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.95 595.15 Td (24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 595.15 Td (38) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.95 595.15 Td (35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.95 595.15 Td (1) Tj ET Q q 0 0 0 rg BT 475.96 595.15 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.95 595.15 Td (56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 581.15 Td (Non-productive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.00 581.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 581.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.95 581.15 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.95 581.15 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.95 581.15 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.95 581.15 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 567.15 Td (142) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.95 567.15 Td (1) Tj ET Q q 0 0 0 rg BT 298.96 567.15 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 567.15 Td (98) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.95 567.15 Td (84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.95 567.15 Td (216) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.95 567.15 Td (130) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 553.15 Td (Exploratory wells) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 539.15 Td (Oil) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.95 539.15 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.95 539.15 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 539.15 Td (32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.95 539.15 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.95 539.15 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.95 539.15 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 525.15 Td (Gas) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.95 525.15 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.95 525.15 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.00 525.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.00 525.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 525.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.00 525.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 511.15 Td (Non-productive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.00 511.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 511.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.95 511.15 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.00 511.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.00 511.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.00 511.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.95 497.15 Td (19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.95 497.15 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 497.15 Td (33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.95 497.15 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.95 497.15 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.95 497.15 Td (7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 483.15 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 483.15 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 483.15 Td (161) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.95 483.15 Td (131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.95 483.15 Td (131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.95 483.15 Td (1) Tj ET Q q 0 0 0 rg BT 416.96 483.15 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.95 483.15 Td (223) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.95 483.15 Td (137) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 456.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 456.45 Td (A) Tj ET Q q 0 0 0 rg BT 77.51 456.45 Td ( productive well is an exploratory) Tj ET Q q 0 0 0 rg BT 207.40 456.45 Td (, development, or extension well that is producing or is capable of commercial production of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.65 Td (oil, gas, and/or NGLs. ) Tj ET Q q 0 0 0 rg BT 127.55 445.65 Td (A) Tj ET Q q 0 0 0 rg BT 133.05 445.65 Td ( non-productive well, frequently referred to within the industry as a dry hole, is an exploratory) Tj ET Q q 0 0 0 rg BT 500.57 445.65 Td (, development, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 434.85 Td (extension well that proves to be incapable of producing oil, gas, and/or NGLs in commercial quantities to justify completion, or upon ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 424.05 Td (completion, the economic operation of a well.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 401.25 Td (As defined by the SEC, an exploratory well is a well drilled to find a new field or to find a new reservoir in a field previously ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 390.45 Td (found to be productive of oil or gas in another reservoir) Tj ET Q q 0 0 0 rg BT 253.63 390.45 Td (. ) Tj ET Q q 0 0 0 rg BT 260.64 390.45 Td (A) Tj ET Q q 0 0 0 rg BT 266.14 390.45 Td ( development well is a well drilled within the proved area of an oil or gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 379.65 Td (reservoir to the depth of a stratigraphic horizon known to be productive. ) Tj ET Q q 0 0 0 rg BT 324.50 379.65 Td (The number of wells drilled refers to the number of wells ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 368.85 Td (completed at any time during the respective year) Tj ET Q q 0 0 0 rg BT 229.61 368.85 Td (, regardless of when drilling was initiated. Completion refers to the installation of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 358.05 Td (equipment for production of oil, gas, and/or NGLs, or in the case of a dry hole, the reporting to the appropriate authority that the well ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 347.25 Td (has been plugged and abandoned.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 324.45 Td (In addition to the wells drilled and completed in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 261.11 324.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.14 324.45 Td ( \(included in the table above\), we were actively participating in the drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.65 Td (of 21 gross \(19 net\) wells and had 104 gross \(91 net\) drilled but not completed wells as of January 31, 2019. ) Tj ET Q q 0 0 0 rg BT 471.59 313.65 Td (These drilled but not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.85 Td (completed wells represent wells that were being completed or were waiting on completion as of January 31, 2019.) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (13) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Acreage) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (The following table sets forth the gross and net acres of developed and undeveloped oil and gas leasehold, fee properties, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (mineral servitudes that we held as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.57 706.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.62 706.85 Td (. Undeveloped acreage includes leasehold interests containing proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (undeveloped reserves.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 657.55 161.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 657.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 657.55 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 657.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 657.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 657.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 657.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 657.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 629.55 161.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 629.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 629.55 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 629.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 629.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 629.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 629.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 629.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 601.55 161.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 601.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 601.55 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 601.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 601.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 601.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 601.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 601.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 573.55 161.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 573.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 573.55 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 573.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 573.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 573.55 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 573.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 573.55 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 671.55 m 257.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 671.55 m 261.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 671.55 m 320.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 671.55 m 384.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 671.55 m 388.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 671.55 m 448.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 671.55 m 512.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 671.55 m 516.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 671.55 m 576.5 671.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 657.55 m 257.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 657.55 m 320.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 657.55 m 384.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 657.55 m 448.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 657.55 m 512.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 657.55 m 576.5 657.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 615.55 m 257.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 615.55 m 320.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 615.55 m 384.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 615.55 m 448.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 615.55 m 257.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 615.55 m 320.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 615.55 m 384.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 615.55 m 448.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 615.55 m 512.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 615.55 m 576.5 615.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 573.55 m 257.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 573.55 m 320.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 573.55 m 384.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 573.55 m 448.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 573.55 m 512.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 573.55 m 576.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 573.55 m 257.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 560.55 m 257.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 558.55 m 257.5 558.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 573.55 m 320.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 560.55 m 320.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 558.55 m 320.5 558.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 573.55 m 384.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 560.55 m 384.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 558.55 m 384.5 558.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 573.55 m 448.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 560.55 m 448.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 558.55 m 448.5 558.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 573.55 m 512.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 560.55 m 512.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 558.55 m 512.5 558.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 573.55 m 576.5 573.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 560.55 m 576.5 560.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 558.55 m 576.5 558.55 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.30 675.95 Td (Developed ) Tj ET Q q 0 0 0 rg BT 264.98 675.95 Td (Acres ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 292.50 680.24 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.75 675.95 Td (Undeveloped ) Tj ET Q q 0 0 0 rg BT 394.43 675.95 Td (Acres ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 421.94 680.24 Td (\(2\)\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.55 675.95 Td (T) Tj ET Q q 0 0 0 rg BT 508.71 675.95 Td (otal) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 213.95 661.95 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.20 661.95 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 340.95 661.95 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 410.70 661.95 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 661.95 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 538.70 661.95 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 647.95 Td (Midland Basin:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 633.95 Td (RockStar) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.45 633.95 Td (55,632) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.45 633.95 Td (49,552) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.45 633.95 Td (20,451) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.45 633.95 Td (15,321) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.45 633.95 Td (76,083) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.45 633.95 Td (64,873) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 619.95 Td (Sweetie Peck) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.45 619.95 Td (15,176) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.45 619.95 Td (14,189) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.45 619.95 Td (3,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.95 619.95 Td (772) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.45 619.95 Td (18,912) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.45 619.95 Td (14,961) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 605.95 Td (Midland Basin ) Tj ET Q q 0 0 0 rg BT 97.87 605.95 Td (T) Tj ET Q q 0 0 0 rg BT 102.37 605.95 Td (otal ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 119.38 610.24 Td (\(4\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.45 605.95 Td (70,808) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.45 605.95 Td (63,741) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.45 605.95 Td (24,187) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.45 605.95 Td (16,093) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.45 605.95 Td (94,995) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.45 605.95 Td (79,834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 591.95 Td (Eagle Ford) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.45 591.95 Td (73,926) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.45 591.95 Td (73,549) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.45 591.95 Td (92,379) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.45 591.95 Td (89,443) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.45 591.95 Td (166,305) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.45 591.95 Td (162,992) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 577.95 Td (Other) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 61.51 582.24 Td ( \(5\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.45 577.95 Td (16,278) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.45 577.95 Td (1) Tj ET Q q 0 0 0 rg BT 294.46 577.95 Td (1,368) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.45 577.95 Td (262,059) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.45 577.95 Td (188,994) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.45 577.95 Td (278,337) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.45 577.95 Td (200,362) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 563.95 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 563.95 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.45 563.95 Td (161,012) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.45 563.95 Td (148,658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 348.45 563.95 Td (378,625) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.45 563.95 Td (294,530) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.45 563.95 Td (539,637) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.45 563.95 Td (443,188) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 552.85 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 545.34 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 541.05 Td (Developed acreage is acreage assigned to producing wells for the state approved spacing unit for the producing formation. Our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 530.25 Td (developed acreage that includes multiple formations with dif) Tj ET Q q 0 0 0 rg BT 291.97 530.25 Td (ferent well spacing requirements may be considered undeveloped for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 519.45 Td (certain formations but has been included only as developed acreage in the table above.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 512.94 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 508.65 Td (Undeveloped acreage is acreage on which wells have not been drilled or completed to a point that would permit the production of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 497.85 Td (commercial quantities of oil, gas, and/or NGLs regardless of whether such acreage contains estimated net proved reserves.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 491.34 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 487.05 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.01 487.05 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.55 487.05 Td (, approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 209.08 487.05 Td (1,406) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.60 487.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.60 487.05 Td (2,016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.12 487.05 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.64 487.05 Td (244) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 296.66 487.05 Td ( net acres of undeveloped acreage are scheduled to expire by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 476.25 Td (December 31, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.05 476.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 138.05 476.25 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 158.07 476.25 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.59 476.25 Td (2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.61 476.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 252.46 476.25 Td (, if production is not established or we take no other action to extend the terms of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 465.45 Td (the applicable lease or leases.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 458.94 Td (\(4\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 454.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.01 454.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.06 454.65 Td (, total Midland Basin acreage excludes approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.18 454.65 Td (1,885) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.70 454.65 Td ( net acres associated with drill-to-earn ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 443.85 Td (opportunities we intend to pursue.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 437.34 Td (\(5\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 433.05 Td (Includes other non-core acreage located in Louisiana, Montana, North Dakota, ) Tj ET Q q 0 0 0 rg BT 368.53 433.05 Td (T) Tj ET Q q 0 0 0 rg BT 373.03 433.05 Td (exas, Utah, and W) Tj ET Q q 0 0 0 rg BT 446.99 433.05 Td (yoming.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 410.25 Td (Delivery Commitments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.53 410.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 387.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 387.45 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 387.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 387.45 Td (, we had gathering, processing, transportation throughput, and delivery commitments with various ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 376.65 Td (third-parties that require delivery of a minimum quantity of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.10 376.65 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.11 376.65 Td ( MMBbl of oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.13 376.65 Td (595) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.14 376.65 Td ( Bcf of gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.18 376.65 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.19 376.65 Td ( MMBbl of produced water through ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 365.85 Td (2027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 365.85 Td (. W) Tj ET Q q 0 0 0 rg BT 71.85 365.85 Td (e are required to make periodic deficiency payments for any shortfalls in delivering the minimum volume commitments under ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 355.05 Td (certain agreements. W) Tj ET Q q 0 0 0 rg BT 128.87 355.05 Td (e expect to fulfill our delivery commitments from a combination of production from: a\) our existing productive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 344.25 Td (wells, b\) future development of our proved undeveloped reserves, and c\) future development of resources not yet characterized as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 333.45 Td (proved reserves. Under certain of our commitments, if we are unable to deliver the minimum quantity from our production, we may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 322.65 Td (deliver production acquired from third-parties to satisfy our minimum volume commitments.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 299.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 299.85 Td (In the event that no more product is delivered in accordance with these agreements, the aggregate undiscounted future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.05 Td (deficiency payments as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.05 289.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.10 289.05 Td (, would total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.63 289.05 Td ($287.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.16 289.05 Td (. ) Tj ET Q q 0 0 0 rg BT 334.50 289.05 Td (This amount does not include deficiency payment estimates ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 278.25 Td (associated with approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 158.56 278.25 Td (18.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 176.08 278.25 Td ( MMBbl of future oil delivery commitments where we cannot predict with accuracy the amount and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.45 Td (timing of these payments, as such payments are dependent upon the price of oil in ef) Tj ET Q q 0 0 0 rg BT 374.54 267.45 Td (fect at the time of settlement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 244.65 Td (As of the filing of this report, we do not expect to incur any material shortfalls with regard to these commitments.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 221.85 Td (Major Customers) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 199.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 199.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 199.05 Td (e do not believe the loss of any single purchaser of our oil, gas, or NGLs would materially impact our operating results, as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 188.25 Td (these are products with well-established markets and other viable purchaser options are available in our operating regions. ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 740.45 Td (e had the following major customers and sales to entities under common ownership, which accounted for 10 percent or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (more of our total oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 173.24 729.65 Td ( production revenue for at least one of the periods presented:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 691.15 223.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 691.15 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 691.15 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 691.15 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 663.15 223.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 663.15 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 663.15 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 663.15 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 705.15 m 314.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 705.15 m 318.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 705.15 m 373.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 705.15 m 377.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 705.15 m 432.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 691.15 m 314.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 691.15 m 373.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 691.15 m 432.5 691.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.55 709.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 304.47 709.55 Td (Y) Tj ET Q q 0 0 0 rg BT 310.14 709.55 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 276.45 695.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.45 695.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 695.55 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 681.55 Td (Major customer #1) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 113.53 685.84 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.30 681.55 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.90 681.55 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.95 681.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.90 681.55 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.95 681.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.95 681.55 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.95 681.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 667.55 Td (Major customer #2) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 113.53 671.84 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.30 667.55 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.90 667.55 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.95 667.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.90 667.55 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.95 667.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.90 667.55 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.95 667.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 653.55 Td (Group #1 of entities under common ownership) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 223.60 657.84 Td ( \(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.90 653.55 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.95 653.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.90 653.55 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.95 653.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.90 653.55 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.95 653.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 639.55 Td (Group #2 of entities under common ownership ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 226.10 643.84 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.90 639.55 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.95 639.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.90 639.55 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.95 639.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.90 639.55 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.95 639.55 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 628.45 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 620.94 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 616.65 Td (These major customers are purchasers of a portion of our production from our Permian region. ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 610.14 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 605.85 Td (In the aggregate, these groups of entities under common ownership represented more than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.72 605.85 Td (10 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.25 605.85 Td ( of total oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 563.48 605.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 595.05 Td (production revenue for at least one of the periods presented; however) Tj ET Q q 0 0 0 rg BT 331.18 595.05 Td (, no individual entity comprising either group represented ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 584.25 Td (more than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.02 584.25 Td (10 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 139.55 584.25 Td ( of our total oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 256.28 584.25 Td ( production revenue.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 561.45 Td (Employees and Office Space) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 159.05 561.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 538.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 538.65 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.55 538.65 Td (, we had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.07 538.65 Td (61) Tj ET Q q 0 0 0 rg BT 209.42 538.65 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.42 538.65 Td ( full-time employees. ) Tj ET Q q 0 0 0 rg BT 301.79 538.65 Td (This is a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.80 538.65 Td (four percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.83 538.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.33 538.65 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.35 538.65 Td ( from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.36 538.65 Td (635) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.38 538.65 Td ( reported full-time ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 527.85 Td (employees as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.04 527.85 Td (February 14, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.58 527.85 Td (. None of our employees are subject to a collective bargaining agreement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 505.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 505.05 Td (The following table summarizes the approximate square footage of of) Tj ET Q q 0 0 0 rg BT 347.49 505.05 Td (fice space leased by us, as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.06 505.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.11 505.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 494.25 Td (including our corporate headquarters and regional of) Tj ET Q q 0 0 0 rg BT 244.98 494.25 Td (fices:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 460.75 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 460.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 460.75 127.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 432.75 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 432.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 432.75 127.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 404.75 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 404.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 404.75 127.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 460.75 m 395.5 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 460.75 m 395.5 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 404.75 m 395.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 404.75 m 395.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 391.75 m 395.5 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 389.75 m 395.5 389.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 287.45 474.15 Td (Approximate Square) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 297.20 465.15 Td (Footage Leased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 451.15 Td (Corporate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.45 451.15 Td (107,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 437.15 Td (Permian) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.45 437.15 Td (59,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 423.15 Td (South ) Tj ET Q q 0 0 0 rg BT 64.94 423.15 Td (T) Tj ET Q q 0 0 0 rg BT 69.86 423.15 Td (exas & Gulf Coast) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.45 423.15 Td (62,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 409.15 Td (Mid-Continent) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 95.03 413.44 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.45 409.15 Td (50,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 395.15 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 395.15 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.45 395.15 Td (278,000) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 384.05 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 376.54 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 372.25 Td (During the third quarter of 2015, we closed our of) Tj ET Q q 0 0 0 rg BT 249.45 372.25 Td (fice in ) Tj ET Q q 0 0 0 rg BT 275.30 372.25 Td (T) Tj ET Q q 0 0 0 rg BT 280.46 372.25 Td (ulsa, Oklahoma. W) Tj ET Q q 0 0 0 rg BT 358.83 372.25 Td (e have subleased this space through the expiration of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 361.45 Td (the lease, which will occur in September ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.58 361.45 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.60 361.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 338.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 338.65 Td (In addition to the leased of) Tj ET Q q 0 0 0 rg BT 177.42 338.65 Td (fice space summarized in the table above, as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.02 338.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.07 338.65 Td (, we owned a total of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.12 338.65 Td (79,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.65 338.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 327.85 Td (square feet of of) Tj ET Q q 0 0 0 rg BT 100.88 327.85 Td (fice space in our South ) Tj ET Q q 0 0 0 rg BT 194.77 327.85 Td (T) Tj ET Q q 0 0 0 rg BT 199.27 327.85 Td (exas & Gulf Coast and Rocky Mountain regions.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 305.05 Td (T) Tj ET Q q 0 0 0 rg BT 41.33 305.05 Td (itle to Properties) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.35 305.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 282.25 Td (Substantially all of our interests are held pursuant to oil and gas leases from third parties. W) Tj ET Q q 0 0 0 rg BT 439.52 282.25 Td (e usually obtain title opinions prior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 271.45 Td (to commencing our initial drilling operations on our properties. W) Tj ET Q q 0 0 0 rg BT 294.96 271.45 Td (e have obtained title opinions or have conducted other title review on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 260.65 Td (substantially all of our producing properties and believe we have satisfactory title to such properties. Most of our producing properties ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 249.85 Td (are subject to mortgages securing indebtedness under our Sixth ) Tj ET Q q 0 0 0 rg BT 293.15 249.85 Td (Amended and Restated Credit ) Tj ET Q q 0 0 0 rg BT 416.23 249.85 Td (Agreement \(the “Credit ) Tj ET Q q 0 0 0 rg BT 509.77 249.85 Td (Agreement”\), ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 239.05 Td (royalty and overriding royalty interests, liens for current taxes, and other burdens that we believe do not materially interfere with the use ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.25 Td (of such properties. W) Tj ET Q q 0 0 0 rg BT 123.37 228.25 Td (e typically perform title investigation in accordance with standards generally accepted in the oil and gas industry ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 217.45 Td (before acquiring undeveloped leasehold acreage.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 194.65 Td (Seasonality) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 86.02 194.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 171.85 Td (Generally) Tj ET Q q 0 0 0 rg BT 109.85 171.85 Td (, but not always, the demand and price levels for gas increase during winter months and decrease during summer ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 161.05 Td (months. ) Tj ET Q q 0 0 0 rg BT 72.85 161.05 Td (T) Tj ET Q q 0 0 0 rg BT 77.35 161.05 Td (o lessen the impact of seasonal demand fluctuations, pipelines, utilities, local distribution companies, and industrial users ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 150.25 Td (utilize gas storage facilities and forward purchase some of their anticipated winter requirements during the summer) Tj ET Q q 0 0 0 rg BT 491.73 150.25 Td (. However) Tj ET Q q 0 0 0 rg BT 534.24 150.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 139.45 Td (increased summertime demand for electricity can divert gas that traditionally is placed into storage. ) Tj ET Q q 0 0 0 rg BT 434.02 139.45 Td (This could reduce the typical ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 128.65 Td (seasonal price dif) Tj ET Q q 0 0 0 rg BT 105.88 128.65 Td (ferential. Demand for energy is also generally higher in the winter and the summer driving season, although oil prices ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 117.85 Td (are impacted more significantly by global supply and demand. Seasonal anomalies, such as mild winters, sometimes lessen these ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 107.05 Td (fluctuations. Certain of our drilling, completion, and other operations are also subject to seasonal limitations. Seasonal weather ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 96.25 Td (conditions, government regulations, and lease stipulations adversely af) Tj ET Q q 0 0 0 rg BT 318.01 96.25 Td (fect our ability to conduct drilling activities in some of the areas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 85.45 Td (where we operate. See ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.56 85.45 Td (Risk Factors - ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 191.56 85.45 Td (Risks Related to Our Business) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 313.61 85.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.11 85.45 Td (below for additional discussion.) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Competition) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.49 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (The oil and gas industry is intensely competitive, particularly with respect to acquiring prospective oil and gas properties. W) Tj ET Q q 0 0 0 rg BT 563.57 717.65 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (believe our acreage positions provide a foundation for development activities that we expect to fuel our future growth. Our competitive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (position also depends on our geological, geophysical, and engineering expertise, as well as our financial resources. W) Tj ET Q q 0 0 0 rg BT 508.62 696.05 Td (e believe the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (location of our acreage; our exploration, drilling, operational, and production expertise; available technologies; our financial resources ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (and expertise; and the experience and knowledge of our management and technical teams enable us to compete in our core operating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (areas. However) Tj ET Q q 0 0 0 rg BT 101.03 663.65 Td (, we face intense competition from a substantial number of major and independent oil and gas companies, which in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (some cases have larger technical teams and greater financial and operational resources than we do. Many of these companies not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (only engage in the acquisition, exploration, development, and production of oil and gas reserves, but also have gathering, processing or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (refining operations, market refined products, own drilling rigs or other equipment, or generate electricity) Tj ET Q q 0 0 0 rg BT 445.04 631.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 608.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 608.45 Td (e also compete with other oil and gas companies in securing drilling rigs and other equipment and services necessary for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (the drilling, completion, and maintenance of wells, as well as for the gathering, transporting, and processing of oil, gas, and NGLs. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (Consequently) Tj ET Q q 0 0 0 rg BT 90.37 586.85 Td (, we may face shortages, delays, or increased costs in securing these services from time to time. ) Tj ET Q q 0 0 0 rg BT 479.87 586.85 Td (The oil and gas industry ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (also faces competition from alternative fuel sources, including other fossil fuels such as coal and imported liquefied natural gas. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (Competitive conditions may be af) Tj ET Q q 0 0 0 rg BT 168.40 565.25 Td (fected by future energy) Tj ET Q q 0 0 0 rg BT 259.79 565.25 Td (, climate-related, financial, or other policies, legislation, and regulations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 542.45 Td (In addition, we compete for people, including experienced geologists, geophysicists, engineers, and other professionals. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (Throughout the oil and gas industry) Tj ET Q q 0 0 0 rg BT 176.42 531.65 Td (, the need to attract and retain talented people has grown at a time when the availability of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (individuals with these skills is becoming more limited due to the evolving demographics of our industry) Tj ET Q q 0 0 0 rg BT 441.03 520.85 Td (. W) Tj ET Q q 0 0 0 rg BT 456.86 520.85 Td (e are not insulated from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (competition for quality people, and we must compete ef) Tj ET Q q 0 0 0 rg BT 255.96 510.05 Td (fectively in order to be successful.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (Government Regulations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.02 487.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 464.45 Td (Our business is extensively controlled by numerous federal, state, and local laws and governmental regulations. ) Tj ET Q q 0 0 0 rg BT 521.58 464.45 Td (These laws ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (and regulations may be changed from time to time in response to economic or political conditions, or other developments, and our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (regulatory burden may increase in the future. Laws and regulations have the potential to increase our cost of doing business and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (consequently could af) Tj ET Q q 0 0 0 rg BT 122.90 432.05 Td (fect our profitability) Tj ET Q q 0 0 0 rg BT 197.76 432.05 Td (. However) Tj ET Q q 0 0 0 rg BT 240.28 432.05 Td (, we do not believe that we are af) Tj ET Q q 0 0 0 rg BT 372.20 432.05 Td (fected to a materially greater or lesser extent than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (others in our industry) Tj ET Q q 0 0 0 rg BT 119.37 421.25 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 398.45 Td (Energy Regulations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 375.65 Td (Many of the states in which we conduct our operations or own assets have adopted laws and regulations governing the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 364.85 Td (exploration for and production of oil, gas, and NGLs, including laws and regulations requiring permits for the drilling of wells, imposing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 354.05 Td (bond requirements in order to drill or operate wells, governing the timing of drilling and location of wells, the method of drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 343.25 Td (casing wells, the surface use and restoration of properties upon which wells are drilled, and the plugging and abandonment of wells. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 332.45 Td (Our operations are also subject to various state conservation laws and regulations, including regulations governing the size of drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 321.65 Td (and spacing units or proration units, the number of wells that may be drilled in an area, the spacing of wells, and the unitization or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (pooling of oil and gas properties. In addition, state conservation laws sometimes establish maximum rates of production from oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (gas wells, generally limit or prohibit the venting or flaring of gas, and may impose certain requirements regarding the ratability or fair ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (apportionment of production from fields and individual wells.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 266.45 Td (Some of our operations are conducted on federal lands pursuant to oil and gas leases administered by the Bureau of Land ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 255.65 Td (Management \(“BLM”\). ) Tj ET Q q 0 0 0 rg BT 128.87 255.65 Td (These leases contain relatively standardized terms and require compliance with detailed regulations and orders ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 244.85 Td (that are subject to change. In addition to permits required from other regulatory agencies, lessees must obtain a permit from the BLM ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 234.05 Td (before drilling and must comply with regulations governing, among other things, engineering and construction specifications for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 223.25 Td (production facilities, safety procedures, the valuation of production and payment of royalties, the removal of facilities, and the posting of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 212.45 Td (bonds to ensure that lessee obligations are met. Under certain circumstances, the BLM may suspend or terminate our operations on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 201.65 Td (federal leases.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 178.85 Td (Our sales of gas are af) Tj ET Q q 0 0 0 rg BT 162.88 178.85 Td (fected by the availability) Tj ET Q q 0 0 0 rg BT 257.77 178.85 Td (, terms, and cost of gas pipeline transportation. ) Tj ET Q q 0 0 0 rg BT 449.71 178.85 Td (The Federal Energy Regulatory ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 168.05 Td (Commission \(“FERC”\) has jurisdiction over the transportation and sale for resale of gas in interstate commerce. FERC’) Tj ET Q q 0 0 0 rg BT 510.01 168.05 Td (s current ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 157.25 Td (regulatory framework generally provides for a competitive and open access market for sales and transportation of gas. However) Tj ET Q q 0 0 0 rg BT 546.25 157.25 Td (, FERC ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (regulations continue to af) Tj ET Q q 0 0 0 rg BT 136.41 146.45 Td (fect the midstream and transportation segments of the industry) Tj ET Q q 0 0 0 rg BT 385.37 146.45 Td (, and thus can indirectly af) Tj ET Q q 0 0 0 rg BT 489.76 146.45 Td (fect the sales prices ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (we receive for gas production. ) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (16) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Environmental, Health and Safety Matters) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (General.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 106.52 717.65 Td (  Our operations are subject to stringent and complex federal, state, tribal, and local laws and regulations governing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (protection of the environment and worker health and safety as well as the discharge of materials into the environment. ) Tj ET Q q 0 0 0 rg BT 509.60 706.85 Td (These laws and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (regulations may) Tj ET Q q 0 0 0 rg BT 98.86 696.05 Td (, among other things:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 673.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 673.25 Td (require the acquisition of various permits before drilling commences;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 656.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 656.45 Td (restrict the types, quantities and concentration of various substances that can be released into the environment in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 645.65 Td (connection with oil and gas drilling and production and saltwater disposal activities;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 628.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 628.85 Td (limit or prohibit drilling activities on certain lands lying within wilderness, wetlands and other protected areas, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 618.05 Td (areas containing certain wildlife or threatened and endangered plant and animal species; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 601.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 601.25 Td (require remedial measures to mitigate pollution from former and ongoing operations, such as closing pits and plugging ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 590.45 Td (abandoned wells.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 567.65 Td (These laws, rules, and regulations may also restrict the rate of oil and gas production below the rate that would otherwise be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 556.85 Td (possible. ) Tj ET Q q 0 0 0 rg BT 76.36 556.85 Td (The regulatory burden on the oil and gas industry increases the cost of doing business in the industry and consequently ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 546.05 Td (af) Tj ET Q q 0 0 0 rg BT 43.34 546.05 Td (fects profitability) Tj ET Q q 0 0 0 rg BT 107.20 546.05 Td (. ) Tj ET Q q 0 0 0 rg BT 114.21 546.05 Td (Additionally) Tj ET Q q 0 0 0 rg BT 159.57 546.05 Td (, environmental laws and regulations are revised frequently) Tj ET Q q 0 0 0 rg BT 394.03 546.05 Td (, and any changes may result in more ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 535.25 Td (stringent, or dif) Tj ET Q q 0 0 0 rg BT 95.37 535.25 Td (ferent permitting, waste handling, disposal, and cleanup requirements for the oil and gas industry and could have a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 524.45 Td (significant impact on our operating costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 501.65 Td (The following is a summary of some of the existing laws, rules, and regulations to which our business is subject.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 478.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 478.85 Td (aste handling.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.38 478.85 Td (  ) Tj ET Q q 0 0 0 rg BT 141.21 478.85 Td (The Resource Conservation and Recovery ) Tj ET Q q 0 0 0 rg BT 313.30 478.85 Td (Act \(“RCRA”\) and comparable state statutes regulate the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 468.05 Td (generation, transportation, treatment, storage, disposal, and cleanup of hazardous and non-hazardous wastes. Under the auspices of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 457.25 Td (the United States Environmental Protection ) Tj ET Q q 0 0 0 rg BT 210.10 457.25 Td (Agency \(“EP) Tj ET Q q 0 0 0 rg BT 259.95 457.25 Td (A”\), individual states administer some or all of the provisions of RCRA, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 446.45 Td (sometimes in conjunction with their own, more stringent requirements. Drilling fluids, produced water) Tj ET Q q 0 0 0 rg BT 437.18 446.45 Td (, and most of the other wastes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 435.65 Td (associated with the exploration, development, and production of oil or gas are currently regulated under RCRA) Tj ET Q q 0 0 0 rg BT 474.58 435.65 Td (’) Tj ET Q q 0 0 0 rg BT 476.42 435.65 Td (s non-hazardous waste ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 424.85 Td (provisions. However) Tj ET Q q 0 0 0 rg BT 119.03 424.85 Td (, it is possible that certain oil and gas exploration and production wastes now classified as non-hazardous could be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 414.05 Td (classified as hazardous wastes in the future. ) Tj ET Q q 0 0 0 rg BT 217.10 414.05 Td (Any such change could result in an increase in our costs to manage and dispose of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 403.25 Td (wastes, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 224.43 403.25 Td (fect on our results of operations and financial position.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 380.45 Td (Comprehensive Environmental Response, Compensation, and Liability ) Tj ET Q q 0 0 0 rg BT 355.82 380.45 Td (Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.32 380.45 Td (  ) Tj ET Q q 0 0 0 rg BT 376.16 380.45 Td (The Comprehensive Environmental Response, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 369.65 Td (Compensation, and Liability ) Tj ET Q q 0 0 0 rg BT 148.57 369.65 Td (Act \(“CERCLA”\), also known as the Superfund law) Tj ET Q q 0 0 0 rg BT 349.16 369.65 Td (, imposes joint and several liability) Tj ET Q q 0 0 0 rg BT 484.55 369.65 Td (, without regard to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 358.85 Td (fault or legality of conduct, on classes of persons who are considered to be responsible for the release or threatened release of a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 348.05 Td (hazardous substance into the environment. ) Tj ET Q q 0 0 0 rg BT 212.95 348.05 Td (These persons include the owner or operator of the site where the release occurred, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 337.25 Td (anyone who disposed or arranged for the disposal of a hazardous substance released at the site. Under CERCLA, such persons may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 326.45 Td (be subject to joint and several liability for the costs of cleaning up the hazardous substances that have been released into the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 315.65 Td (environment, for damages to natural resources and for the costs of certain health studies. In addition, it is not uncommon for third-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 304.85 Td (parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 294.05 Td (environment.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 271.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 271.25 Td (e currently own, lease, or operate numerous properties that have been used for oil and gas exploration and production for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 260.45 Td (many years. ) Tj ET Q q 0 0 0 rg BT 89.52 260.45 Td (Although we believe we have utilized operating and waste disposal practices that were standard in the industry at the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 249.65 Td (time, hazardous substances, wastes, or hydrocarbons may have been released on or under the properties owned or leased by us, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 238.85 Td (on or under other locations, including of) Tj ET Q q 0 0 0 rg BT 193.44 238.85 Td (f-site locations, where such substances have been taken for disposal. In addition, some of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.05 Td (properties have been operated by third-parties or by previous owners or operators whose treatment and disposal of hazardous ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 217.25 Td (substances, wastes, or hydrocarbons were not under our control. ) Tj ET Q q 0 0 0 rg BT 299.47 217.25 Td (These properties and the substances disposed or released on them ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 206.45 Td (may be subject to CERCLA, RCRA, and analogous state laws. Under such laws, we could be required to remove previously disposed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 195.65 Td (substances and wastes, pay fines, remediate contaminated property) Tj ET Q q 0 0 0 rg BT 306.98 195.65 Td (, or perform remedial operations to prevent future contamination.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 172.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 172.85 Td (ater discharges.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.36 172.85 Td (  ) Tj ET Q q 0 0 0 rg BT 149.20 172.85 Td (The federal W) Tj ET Q q 0 0 0 rg BT 205.39 172.85 Td (ater Pollution Control ) Tj ET Q q 0 0 0 rg BT 291.44 172.85 Td (Act \(“Clean W) Tj ET Q q 0 0 0 rg BT 347.12 172.85 Td (ater ) Tj ET Q q 0 0 0 rg BT 364.63 172.85 Td (Act”\) and analogous state laws impose restrictions ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 162.05 Td (and strict controls with respect to the discharge of pollutants, including spills and leaks of oil and other substances, into waters of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (United States and states. ) Tj ET Q q 0 0 0 rg BT 141.40 151.25 Td (The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (permit issued by the EP) Tj ET Q q 0 0 0 rg BT 130.38 140.45 Td (A, or analogous state agencies. ) Tj ET Q q 0 0 0 rg BT 261.30 140.45 Td (The Clean W) Tj ET Q q 0 0 0 rg BT 313.48 140.45 Td (ater ) Tj ET Q q 0 0 0 rg BT 331.00 140.45 Td (Act also prohibits discharge of dredged or fill material into ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 129.65 Td (waters of the United States, including wetlands, except in accordance with the terms of a permit issued by the United States ) Tj ET Q q 0 0 0 rg BT 530.26 129.65 Td (Army ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 118.85 Td (Corps of Engineers, or a state if the state has assumed authority to issue such permits. Federal and state regulatory agencies can ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 108.05 Td (impose administrative, civil, and criminal penalties for non-compliance with discharge permits or other requirements of the Clean W) Tj ET Q q 0 0 0 rg BT 556.39 108.05 Td (ater ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 97.25 Td (Act and analogous state laws and regulations. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 74.45 Td (The Oil Pollution ) Tj ET Q q 0 0 0 rg BT 140.04 74.45 Td (Act of 1990 \(“OP) Tj ET Q q 0 0 0 rg BT 206.40 74.45 Td (A”\) addresses prevention, containment and cleanup, and liability associated with oil ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 63.65 Td (pollution. OP) Tj ET Q q 0 0 0 rg BT 89.36 63.65 Td (A) Tj ET Q q 0 0 0 rg BT 94.87 63.65 Td ( applies to vessels, of) Tj ET Q q 0 0 0 rg BT 180.75 63.65 Td (fshore platforms, and onshore facilities. OP) Tj ET Q q 0 0 0 rg BT 354.67 63.65 Td (A) Tj ET Q q 0 0 0 rg BT 360.17 63.65 Td ( subjects owners of such facilities to strict liability for ) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (containment and removal costs, natural resource damages and certain other consequences of oil spills into jurisdictional waters. ) Tj ET Q q 0 0 0 rg BT 549.77 740.45 Td (Any ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (unpermitted release of petroleum or other pollutants from our operations could result in governmental penalties and civil liability) Tj ET Q q 0 0 0 rg BT 540.60 729.65 Td (. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (Air emissions.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.01 706.85 Td (  ) Tj ET Q q 0 0 0 rg BT 132.85 706.85 Td (The federal Clean ) Tj ET Q q 0 0 0 rg BT 206.40 706.85 Td (Air ) Tj ET Q q 0 0 0 rg BT 219.40 706.85 Td (Act \(“CAA”\) and comparable state laws regulate emissions of various air pollutants ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (through air emissions permitting programs and the imposition of other requirements. In addition, the EP) Tj ET Q q 0 0 0 rg BT 448.04 696.05 Td (A) Tj ET Q q 0 0 0 rg BT 453.55 696.05 Td ( has developed, and continues ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (to develop, stringent regulations governing emissions of toxic air pollutants at specified sources. Federal and state regulatory agencies ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (can impose administrative, civil, and criminal penalties for non-compliance with air permits or other requirements of the CAA) Tj ET Q q 0 0 0 rg BT 528.21 674.45 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (associated state laws and regulations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 640.85 Td (Climate change.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 137.03 640.85 Td (  In December 2009, the EP) Tj ET Q q 0 0 0 rg BT 247.43 640.85 Td (A) Tj ET Q q 0 0 0 rg BT 252.94 640.85 Td ( determined that emissions of carbon dioxide, methane, and other “greenhouse ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (gases” present an endangerment to public health and the environment because emissions of such gases are, according to the EP) Tj ET Q q 0 0 0 rg BT 551.65 630.05 Td (A, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (contributing to warming of the earth’) Tj ET Q q 0 0 0 rg BT 178.91 619.25 Td (s atmosphere and other climatic changes. Based on these findings, the EP) Tj ET Q q 0 0 0 rg BT 477.92 619.25 Td (A) Tj ET Q q 0 0 0 rg BT 483.43 619.25 Td ( began adopting and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (implementing a comprehensive suite of regulations to restrict emissions of greenhouse gases under existing provisions of the CAA. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (The ) Tj ET Q q 0 0 0 rg BT 53.85 597.65 Td (T) Tj ET Q q 0 0 0 rg BT 59.01 597.65 Td (rump administration has taken steps to rescind or review many of these regulations. Legislative and regulatory initiatives related ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (to climate change could have an adverse ef) Tj ET Q q 0 0 0 rg BT 209.45 586.85 Td (fect on our operations and the demand for oil and gas. See ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 449.11 586.85 Td (Risk Factors - Risks Related to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (Our Business - Legislative and regulatory initiatives related to global warming and climate change could have an adverse effect on our ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (operations and the demand for oil, gas, and NGLs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.13 565.25 Td (. In addition to the ef) Tj ET Q q 0 0 0 rg BT 319.02 565.25 Td (fects of regulation, the meteorological ef) Tj ET Q q 0 0 0 rg BT 478.45 565.25 Td (fects of global climate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (change could pose additional risks to our operations, including physical damage risks associated with more frequent, more intensive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 543.65 Td (storms and flooding, and could adversely af) Tj ET Q q 0 0 0 rg BT 209.44 543.65 Td (fect the demand for our products. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 520.85 Td (Endangered species.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.56 520.85 Td (  ) Tj ET Q q 0 0 0 rg BT 161.40 520.85 Td (The federal Endangered Species ) Tj ET Q q 0 0 0 rg BT 294.99 520.85 Td (Act and analogous state laws regulate activities that could have an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 77.86 510.05 Td (fect on threatened or endangered species. Some of our operations are conducted in areas where protected species are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.25 Td (known to exist. In these areas, we may be obligated to develop and implement plans to avoid potential adverse impacts on protected ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 488.45 Td (species, and we may be prohibited from conducting operations in certain locations or during certain seasons, such as breeding and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 477.65 Td (nesting seasons, when our operations could have an adverse ef) Tj ET Q q 0 0 0 rg BT 290.50 477.65 Td (fect on these species. It is also possible that a federal or state agency ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 466.85 Td (could order a complete halt to activities in certain locations if it is determined that such activities may have a serious adverse ef) Tj ET Q q 0 0 0 rg BT 540.08 466.85 Td (fect on a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 456.05 Td (protected species. ) Tj ET Q q 0 0 0 rg BT 113.88 456.05 Td (The presence of a protected species in areas where we perform drilling, completion, and production activities could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (impair our ability to timely complete well drilling and development and could adversely af) Tj ET Q q 0 0 0 rg BT 387.01 445.25 Td (fect our future production from those areas.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 422.45 Td (National Environmental Policy ) Tj ET Q q 0 0 0 rg BT 193.72 422.45 Td (Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 209.23 422.45 Td (  Oil and gas exploration and production activities on federal lands are subject to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 411.65 Td (National Environmental Policy ) Tj ET Q q 0 0 0 rg BT 157.56 411.65 Td (Act \(“NEP) Tj ET Q q 0 0 0 rg BT 196.90 411.65 Td (A”\). NEP) Tj ET Q q 0 0 0 rg BT 234.23 411.65 Td (A) Tj ET Q q 0 0 0 rg BT 239.74 411.65 Td ( requires federal agencies, including the Department of Interior) Tj ET Q q 0 0 0 rg BT 488.38 411.65 Td (, to evaluate major ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 400.85 Td (agency actions having the potential to significantly impact the environment. In the course of such evaluations, an agency will prepare ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 390.05 Td (an environmental assessment to determine the potential direct, indirect, and cumulative impacts of a proposed project and, if ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 379.25 Td (necessary) Tj ET Q q 0 0 0 rg BT 76.35 379.25 Td (, will prepare a more detailed environmental impact statement that may be made available for public review and comment. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 368.45 Td (All of our current exploration and production activities, as well as proposed exploration and development plans, on federal lands require ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 357.65 Td (governmental permits subject to the requirements of NEP) Tj ET Q q 0 0 0 rg BT 263.94 357.65 Td (A. ) Tj ET Q q 0 0 0 rg BT 277.28 357.65 Td (This process has the potential to delay development of some of our oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 346.85 Td (gas projects.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 324.05 Td (OSHA) Tj ET Q q 0 0 0 rg BT 97.17 324.05 Td ( and other laws and regulations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.75 324.05 Td (  W) Tj ET Q q 0 0 0 rg BT 238.09 324.05 Td (e are subject to the requirements of the federal Occupational Safety and Health ) Tj ET Q q 0 0 0 rg BT 555.78 324.05 Td (Act ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.25 Td (\(“OSHA”\) and comparable state statutes. ) Tj ET Q q 0 0 0 rg BT 203.91 313.25 Td (The OSHA) Tj ET Q q 0 0 0 rg BT 246.92 313.25 Td ( hazard communication standard, the EP) Tj ET Q q 0 0 0 rg BT 408.85 313.25 Td (A) Tj ET Q q 0 0 0 rg BT 414.35 313.25 Td ( community right-to-know regulations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.45 Td (under ) Tj ET Q q 0 0 0 rg BT 61.36 302.45 Td (T) Tj ET Q q 0 0 0 rg BT 66.52 302.45 Td (itle III of CERCLA) Tj ET Q q 0 0 0 rg BT 136.55 302.45 Td ( and similar state statutes require that we organize and/or disclose information about hazardous materials ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 291.65 Td (used or produced in our operations. ) Tj ET Q q 0 0 0 rg BT 182.60 291.65 Td (Also, pursuant to OSHA, the Occupational Safety and Health ) Tj ET Q q 0 0 0 rg BT 426.74 291.65 Td (Administration has established a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 280.85 Td (variety of standards relating to workplace exposure to hazardous substances and employee health and safety) Tj ET Q q 0 0 0 rg BT 471.09 280.85 Td (. W) Tj ET Q q 0 0 0 rg BT 486.93 280.85 Td (e believe we are in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 270.05 Td (substantial compliance with the applicable requirements of OSHA) Tj ET Q q 0 0 0 rg BT 296.14 270.05 Td ( and comparable laws.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 247.25 Td (Hydraulic fracturing.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 152.03 247.25 Td (  Hydraulic fracturing is an important and common practice used to stimulate production of hydrocarbons ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 236.45 Td (from tight formations. W) Tj ET Q q 0 0 0 rg BT 133.86 236.45 Td (e routinely utilize hydraulic fracturing techniques in most of our drilling and completion programs. ) Tj ET Q q 0 0 0 rg BT 522.39 236.45 Td (The process ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (involves the injection of water) Tj ET Q q 0 0 0 rg BT 153.07 225.65 Td (, sand, and chemicals under pressure into the formation to fracture the surrounding rock and stimulate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 214.85 Td (production. ) Tj ET Q q 0 0 0 rg BT 85.37 214.85 Td (The process is typically regulated by state oil and gas commissions. However) Tj ET Q q 0 0 0 rg BT 395.51 214.85 Td (, the EP) Tj ET Q q 0 0 0 rg BT 426.86 214.85 Td (A) Tj ET Q q 0 0 0 rg BT 432.36 214.85 Td ( has asserted federal regulatory ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 204.05 Td (authority over hydraulic fracturing involving diesel additives under the Safe Drinking W) Tj ET Q q 0 0 0 rg BT 378.34 204.05 Td (ater ) Tj ET Q q 0 0 0 rg BT 395.85 204.05 Td (Act’) Tj ET Q q 0 0 0 rg BT 410.69 204.05 Td (s Underground Injection Control ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 193.25 Td (Program. ) Tj ET Q q 0 0 0 rg BT 77.85 193.25 Td (The federal Safe Drinking W) Tj ET Q q 0 0 0 rg BT 190.56 193.25 Td (ater ) Tj ET Q q 0 0 0 rg BT 208.08 193.25 Td (Act protects the quality of the nation’) Tj ET Q q 0 0 0 rg BT 353.00 193.25 Td (s public drinking water through the adoption of drinking ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 182.45 Td (water standards and controlling the injection of waste fluids, including saltwater disposal fluids, into below-ground formations that may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 171.65 Td (adversely af) Tj ET Q q 0 0 0 rg BT 84.36 171.65 Td (fect drinking water sources. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 148.85 Td (Increased regulation and attention given to the hydraulic fracturing process could lead to greater opposition to oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.05 Td (activities using hydraulic fracturing techniques, which could potentially cause a decrease in the completion of new oil and gas wells, an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 127.25 Td (increase in compliance costs, and delays, all of which could adversely af) Tj ET Q q 0 0 0 rg BT 323.99 127.25 Td (fect our financial position, results of operations and cash flows. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 116.45 Td (As new laws or regulations that significantly restrict hydraulic fracturing are adopted at the state and local levels, such laws could make ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 105.65 Td (it more dif) Tj ET Q q 0 0 0 rg BT 75.35 105.65 Td (ficult or costly for us to perform fracturing to stimulate production from tight formations. In addition, if hydraulic fracturing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 94.85 Td (becomes regulated at the federal level as a result of federal legislation or regulatory initiatives by the EP) Tj ET Q q 0 0 0 rg BT 448.56 94.85 Td (A) Tj ET Q q 0 0 0 rg BT 454.07 94.85 Td ( or other federal agencies, our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 84.05 Td (fracturing activities could become subject to additional permitting requirements, which could result in additional permitting delays and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 73.25 Td (potential increases in costs. Restrictions on hydraulic fracturing could also reduce the amount of oil and gas that we are ultimately able ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 62.45 Td (to produce from our reserves.) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 740.45 Td (e believe it is reasonably likely that the trend in local and state environmental legislation and regulation will continue toward ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (stricter standards, while the trend in federal environmental legislation and regulation faces an uncertain future under the ) Tj ET Q q 0 0 0 rg BT 513.62 729.65 Td (T) Tj ET Q q 0 0 0 rg BT 518.78 729.65 Td (rump ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (administration. While we believe we are in substantial compliance with existing environmental laws and regulations applicable to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (current operations and that our continued compliance with existing requirements will not have a material adverse impact on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (financial condition and results of operations, we cannot give any assurance that we will not be adversely af) Tj ET Q q 0 0 0 rg BT 459.58 697.25 Td (fected in the future. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 674.45 Td (Environmental, Health and Safety Initiatives. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.60 674.45 Td (W) Tj ET Q q 0 0 0 rg BT 261.93 674.45 Td (e are committed to conducting our business in a manner that protects the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (environment and the health and safety of our employees, contractors and the public.  W) Tj ET Q q 0 0 0 rg BT 384.54 663.65 Td (e set annual goals for our environmental, health ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (and safety program focused on reducing the number of safety related incidents that occur and the number and impact of spills of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (produced fluids. W) Tj ET Q q 0 0 0 rg BT 112.87 642.05 Td (e also periodically conduct regulatory compliance audits of our operations to ensure compliance with all regulations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (and provide appropriate training for our employees. Reducing air emissions as a result of leaks, venting, or flaring of gas during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (operations has become a major focus area for regulatory ef) Tj ET Q q 0 0 0 rg BT 271.96 620.45 Td (forts and for our compliance ef) Tj ET Q q 0 0 0 rg BT 393.36 620.45 Td (forts.  While flaring is sometimes necessary) Tj ET Q q 0 0 0 rg BT 565.75 620.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 609.65 Td (releases of gas into the environment and flaring is an economic waste and reducing these volumes is a priority for us. ) Tj ET Q q 0 0 0 rg BT 507.59 609.65 Td (T) Tj ET Q q 0 0 0 rg BT 512.09 609.65 Td (o avoid flaring ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 598.85 Td (where possible, we restrict testing periods and make every ef) Tj ET Q q 0 0 0 rg BT 279.45 598.85 Td (fort to ensure that our production is connected to gas pipeline ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 588.05 Td (infrastructure as quickly as possible after well completions.  W) Tj ET Q q 0 0 0 rg BT 282.93 588.05 Td (e have incurred in the past, and expect to incur in the future, capital costs ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 577.25 Td (related to environmental compliance.  Such expenditures are included within our overall capital budget and are not separately itemized.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (Cautionary Information about Forward-Looking Statements) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 531.65 Td (This ) Tj ET Q q 0 0 0 rg BT 91.01 531.65 Td (Annual Report on Form 10-K \(“Form 10-K”\) contains “forward-looking statements” within the meaning of Section 27A) Tj ET Q q 0 0 0 rg BT 553.72 531.65 Td ( of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 92.53 520.85 Td (Act of 1933, as amended \(the “Securities ) Tj ET Q q 0 0 0 rg BT 257.63 520.85 Td (Act”\) and Section 21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 456.74 520.85 Td (Act of 1934, as amended \(the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (“Exchange ) Tj ET Q q 0 0 0 rg BT 81.03 510.05 Td (Act”\). ) Tj ET Q q 0 0 0 rg BT 107.03 510.05 Td (All statements, other than statements of historical facts, included in this report that address activities, events, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.25 Td (developments with respect to our financial condition, results of operations, or economic performance that we expect, believe, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 488.45 Td (anticipate will or may occur in the future, or that address plans and objectives of management for future operations, are forward-looking ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 477.65 Td (statements. ) Tj ET Q q 0 0 0 rg BT 87.36 477.65 Td (The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “intend,” “pending,” “plan,” “project,” ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 466.85 Td (“target,” “will,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements appear ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 456.05 Td (throughout this report, and include statements about such matters as:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 433.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 433.25 Td (the amount and nature of future capital expenditures and the availability of liquidity and capital resources to fund capital ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 422.45 Td (expenditures;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 405.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 405.65 Td (any changes to the borrowing base or aggregate lender commitments under our Credit ) Tj ET Q q 0 0 0 rg BT 427.70 405.65 Td (Agreement;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 388.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 388.85 Td (our outlook on future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 235.26 388.85 Td ( prices, well costs, service costs, and general and administrative costs;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 372.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 372.05 Td (the drilling of wells and other exploration and development activities and plans by us, our joint venture partners, and/or other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 361.25 Td (third-party operators, as well as possible or expected acquisitions or divestitures;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 344.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 344.45 Td (the possible divestiture or farm-down of, or joint venture relating to, certain properties;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 327.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 327.65 Td (proved reserve estimates and the estimates of both future net revenues and the present value of future net revenues ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 316.85 Td (associated with those reserve estimates;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 300.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 300.05 Td (future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 175.72 300.05 Td ( production estimates;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 283.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 283.25 Td (cash flows, anticipated liquidity) Tj ET Q q 0 0 0 rg BT 203.40 283.25 Td (, interest and related debt service expenses, and the future repayment of debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 266.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 266.45 Td (business strategies and other plans and objectives for future operations, including plans for expansion and growth of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 255.65 Td (operations or to defer capital investment, plans with respect to future dividend payments, and our outlook on our future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 244.85 Td (financial condition or results of operations;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 228.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 228.05 Td (the possible divestiture or farm-down of, or joint venture relating to, certain properties; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 211.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 211.25 Td (other similar matters, such as those discussed in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 292.59 211.25 Td (Management’) Tj ET Q q 0 0 0 rg BT 346.96 211.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 417.16 211.25 Td (Analysis of Financial Condition and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 81.00 200.45 Td (Results of Operations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 167.54 200.45 Td ( section in Part II, Item 7 of this report.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 177.65 Td (Our forward-looking statements are based on assumptions and analyses made by us in light of our experience and our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 166.85 Td (perception of historical trends, current conditions, expected future developments, and other factors that we believe are appropriate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 156.05 Td (under the circumstances. ) Tj ET Q q 0 0 0 rg BT 141.39 156.05 Td (These statements are subject to a number of known and unknown risks and uncertainties, which may cause ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 145.25 Td (our actual results and performance to be materially dif) Tj ET Q q 0 0 0 rg BT 250.44 145.25 Td (ferent from any future results or performance expressed or implied by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 134.45 Td (forward-looking statements. Some of these risks are described in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 314.63 134.45 Td (Risk Factors) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.64 134.45 Td ( section of this report, and include without limitation ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 123.65 Td (such factors as:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 100.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 100.85 Td (domestic and foreign supply of oil, natural gas, and NGLs;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 84.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 84.05 Td (the volatility of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 209.73 84.05 Td ( prices, and the ef) Tj ET Q q 0 0 0 rg BT 281.11 84.05 Td (fect it may have on our profitability) Tj ET Q q 0 0 0 rg BT 417.01 84.05 Td (, financial condition, cash flows, access ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 73.25 Td (to capital, and ability to grow production volumes and/or proved reserves;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 56.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 56.45 Td (weakness in economic conditions, consumer demand, and uncertainty in financial markets;) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 740.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 740.45 Td (our ability to replace reserves in order to sustain production;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 723.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 723.65 Td (our ability to raise the substantial amount of capital required to develop and/or replace our reserves;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 706.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 706.85 Td (our ability to compete against competitors that have greater financial, technical, and human resources;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 690.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 690.05 Td (our ability to attract and retain key personnel;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 673.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 673.25 Td (the imprecise estimations of our actual quantities and present value of proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 461.38 673.25 Td ( reserves, and that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 662.45 Td (development of our proved undeveloped reserves may take longer and may require greater capital expenditures than we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 651.65 Td (anticipate;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 634.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 634.85 Td (the uncertainty in evaluating recoverable reserves and estimating expected benefits or liabilities;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 618.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 618.05 Td (the possibility that exploration and development drilling may not result in commercially producible reserves;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 601.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 601.25 Td (our limited control over activities on outside-operated properties;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 584.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 584.45 Td (our reliance on the skill, expertise and availability of third-party service providers and equipment for our operated activities;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 567.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 567.65 Td (the possibility that title to properties in which we claim an interest may be defective;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 550.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 550.85 Td (our planned drilling in existing or emerging resource plays using some of the latest available horizontal drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 540.05 Td (completion techniques is subject to drilling and completion risks and may not meet our expectations for reserves or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 529.25 Td (production;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 512.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 512.45 Td (the uncertainties associated with acquisitions, divestitures, joint ventures, farm-downs, farm-outs and similar transactions ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 501.65 Td (with respect to certain assets, including our success in integrating new assets, and whether such transactions will be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 490.85 Td (consummated or completed in the form or timing and for the value that we anticipate;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 474.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 474.05 Td (the uncertainties associated with enhanced recovery methods;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 457.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 457.25 Td (our commodity derivative contracts expose us to counterparty credit risk and may result in financial losses or may limit the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 446.45 Td (prices we receive for oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 235.23 446.45 Td ( sales;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 429.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 429.65 Td (the inability of one or more of our service providers, customers, or contractual counterparties to meet their obligations;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 412.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 412.85 Td (our ability to deliver required quantities of oil, gas, NGL, or water to contractual counterparties;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 396.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 396.05 Td (price declines or unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 257.43 396.05 Td (forts resulting in write-downs of our asset carrying values;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 379.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 379.25 Td (the impact that depressed oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 249.25 379.25 Td ( prices could have on our borrowing capacity under our Credit ) Tj ET Q q 0 0 0 rg BT 496.89 379.25 Td (Agreement;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 362.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 362.45 Td (the possibility our amount of debt may limit our ability to obtain financing for acquisitions, make us more vulnerable to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 351.65 Td (adverse economic conditions, and make it more dif) Tj ET Q q 0 0 0 rg BT 283.44 351.65 Td (ficult for us to make payments on our debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 334.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 334.85 Td (the possibility that covenants in our Credit ) Tj ET Q q 0 0 0 rg BT 249.59 334.85 Td (Agreement or the indentures governing the Senior Notes and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.25 334.85 Td (1.50%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.77 334.85 Td ( Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 324.05 Td (Convertible Notes due ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.55 324.05 Td (July 1, 2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.08 324.05 Td ( \(the “Senior Convertible Notes”\) may limit our discretion in the operation of our business, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 313.25 Td (prohibit us from engaging in beneficial transactions or lead to the accelerated payment of our debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 296.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 296.45 Td (operating and environmental risks and hazards that could result in substantial losses;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 279.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 279.65 Td (the impact of extreme weather conditions, laws and regulations, and lease stipulations on our ability to conduct drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 268.85 Td (activities;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 252.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 252.05 Td (our ability to acquire adequate supplies of water and dispose of or recycle water we use at a reasonable cost in accordance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 241.25 Td (with environmental and other applicable rules;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 224.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 224.45 Td (complex laws and regulations, including environmental regulations, that result in substantial costs, delays, and other risks;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 207.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 207.65 Td (the availability and capacity of gathering, transportation, processing, and/or refining facilities;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 190.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 190.85 Td (our ability to sell and/or receive market prices for our oil, gas, and NGLs;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 174.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 174.05 Td (new technologies may cause our current exploration and drilling methods to become obsolete; ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 157.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 157.25 Td (the possibility of security threats, including terrorist attacks and cybersecurity attacks and breaches, against, or otherwise ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 146.45 Td (impacting, our facilities and systems; and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.00 129.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 129.65 Td (litigation, environmental matters, the potential impact of legislation and government regulations, and the use of management ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.00 118.85 Td (estimates regarding such matters.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 96.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 96.05 Td (e caution you that forward-looking statements are not guarantees of future performance and actual results or performance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 85.25 Td (may be materially dif) Tj ET Q q 0 0 0 rg BT 118.37 85.25 Td (ferent from those expressed or implied in the forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 414.34 85.25 Td (The forward-looking statements in this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 74.45 Td (report speak as of the filing of this report. ) Tj ET Q q 0 0 0 rg BT 203.59 74.45 Td (Although we may from time to time voluntarily update our prior forward-looking statements, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 63.65 Td (we disclaim any commitment to do so except as required by securities laws.) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (20) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (A) Tj ET Q q 0 0 0 rg BT 42.17 740.45 Td (vailable Information) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.18 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (Our internet website address is www) Tj ET Q q 0 0 0 rg BT 217.56 717.65 Td (.sm-energy) Tj ET Q q 0 0 0 rg BT 261.91 717.65 Td (.com. W) Tj ET Q q 0 0 0 rg BT 297.24 717.65 Td (e routinely post important information for investors on our website. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (Within our website’) Tj ET Q q 0 0 0 rg BT 111.37 706.85 Td (s investor relations section, we make available free of charge our annual report on Form 10-K, quarterly reports on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (Form 10-Q, current reports on Form 8-K, and amendments to those reports filed with or furnished to the SEC under applicable ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (securities laws. ) Tj ET Q q 0 0 0 rg BT 101.86 685.25 Td (These materials are made available as soon as reasonably practical after we electronically file such materials with or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (furnish such materials to the SEC, and can be located at www) Tj ET Q q 0 0 0 rg BT 282.13 674.45 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 314.98 674.45 Td (. W) Tj ET Q q 0 0 0 rg BT 330.81 674.45 Td (e also make available through our website our Corporate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (Governance Guidelines, Code of Business Conduct and Conflict of Interest Policy) Tj ET Q q 0 0 0 rg BT 360.01 663.65 Td (, Financial Code of Ethics, and the Charters of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (Audit, Compensation, Executive, and Nominating and Corporate Governance Committees of our Board of Directors. Information on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (website is not incorporated by reference into this report and should not be considered part of this document.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (Glossary of Oil and Gas T) Tj ET Q q 0 0 0 rg BT 145.36 619.25 Td (erms) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 166.88 619.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 596.45 Td (The oil and gas terms defined in this section are used throughout this report. ) Tj ET Q q 0 0 0 rg BT 380.51 596.45 Td (The definitions of the terms developed reserves, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (exploratory well, field, proved reserves, and undeveloped reserves have been abbreviated from the respective definitions under Rule ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (4-10\(a\) of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 145.39 574.85 Td (The entire definitions of those terms under Rule 4-10\(a\) of Regulation S-X can be located through the SEC’) Tj ET Q q 0 0 0 rg BT 571.47 574.85 Td (s ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (website at www) Tj ET Q q 0 0 0 rg BT 98.02 564.05 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 130.87 564.05 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 541.25 Td (Ad valorem tax. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 103.53 541.25 Td (A) Tj ET Q q 0 0 0 rg BT 109.03 541.25 Td ( tax based on the value of real estate or personal property) Tj ET Q q 0 0 0 rg BT 339.01 541.25 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 518.45 Td (Bbl. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.51 518.45 Td (One stock tank barrel, or 42 U.S. gallons liquid volume, used in reference to oil, NGLs, water) Tj ET Q q 0 0 0 rg BT 424.19 518.45 Td (, or other liquid hydrocarbons.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 495.65 Td (BBtu. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.01 495.65 Td (One billion British thermal units. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 472.85 Td (Bcf) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.00 472.85 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 51.50 472.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.50 472.85 Td (Billion cubic feet, used in reference to gas.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 450.05 Td (BOE. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 62.51 450.05 Td (Barrels of oil equivalent. Oil equivalents are determined using the ratio of six Mcf of gas to one Bbl of oil or NGLs.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 427.25 Td (Btu.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.01 427.25 Td ( One British thermal unit, the quantity of heat required to raise the temperature of a one-pound mass of water by one degree ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 416.45 Td (Fahrenheit.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 393.65 Td (Developed acreage.) Tj ET Q BT /F4 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 116.56 393.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 121.56 393.65 Td (The number of acres that are allocated or assignable to productive wells or wells capable of production.) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 532.78 393.65 Td ( ) Tj ET Q BT /F4 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 36.00 370.85 Td (Developed reserves. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 123.54 370.85 Td (Reserves that can be expected to be recovered: \(i\) through existing wells with existing equipment and operating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 360.05 Td (methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and \(ii\) through installed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 349.25 Td (extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 338.45 Td (well.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 315.65 Td (Development well. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 114.53 315.65 Td (A) Tj ET Q q 0 0 0 rg BT 120.04 315.65 Td ( well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 304.85 Td (productive.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 282.05 Td (Dry hole. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.01 282.05 Td (A) Tj ET Q q 0 0 0 rg BT 82.52 282.05 Td ( well found to be incapable of producing either oil, gas, and/or NGLs in commercial quantities.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 259.25 Td (Exploratory well.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.02 259.25 Td ( ) Tj ET Q q 0 0 0 rg BT 106.53 259.25 Td (A) Tj ET Q q 0 0 0 rg BT 112.03 259.25 Td ( well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or gas in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 248.45 Td (another reservoir) Tj ET Q q 0 0 0 rg BT 103.54 248.45 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (Fee properties. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.53 225.65 Td (The most extensive interest that can be owned in land, including surface and mineral \(including oil and gas\) rights.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td (Field. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.01 202.85 Td (An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (structural feature and/or stratigraphic condition.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 169.25 Td (Formation. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.01 169.25 Td (A) Tj ET Q q 0 0 0 rg BT 89.52 169.25 Td ( succession of sedimentary beds that were deposited under the same general geologic conditions.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (Gross acre. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 87.51 146.45 Td (An acre in which a working interest is owned.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 123.65 Td (Gross well. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.51 123.65 Td (A) Tj ET Q q 0 0 0 rg BT 91.02 123.65 Td ( well in which a working interest is owned.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 100.85 Td (Horizontal wells. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 106.52 100.85 Td (W) Tj ET Q q 0 0 0 rg BT 114.86 100.85 Td (ells that are drilled at angles greater than 70 degrees from vertical.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 78.05 Td (Lease operating expenses. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 149.08 78.05 Td (The expenses incurred in the lifting of oil, gas, and/or NGLs from a producing formation to the surface, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 67.25 Td (constituting part of the current operating expenses of a working interest, and also including labor) Tj ET Q q 0 0 0 rg BT 418.23 67.25 Td (, superintendence, supplies, repairs, ) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (maintenance, allocated overhead costs, and other expenses incidental to production, but not including lease acquisition, drilling, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (completion costs.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (MBbl. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.01 706.85 Td (One thousand barrels of oil, NGLs, water) Tj ET Q q 0 0 0 rg BT 226.59 706.85 Td (, or other liquid hydrocarbons.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 684.05 Td (MBOE. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.00 684.05 Td (One thousand barrels of oil equivalent. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 661.25 Td (Mcf. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 661.25 Td (One thousand cubic feet, used in reference to gas.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 638.45 Td (MMBbl. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.50 638.45 Td (One million barrels of oil, NGLs, water) Tj ET Q q 0 0 0 rg BT 222.56 638.45 Td (, or other liquid hydrocarbons.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 615.65 Td (MMBOE. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.50 615.65 Td (One million barrels of oil equivalent. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 592.85 Td (MMBtu. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 592.85 Td (One million British thermal units. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 570.05 Td (MMcf. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.50 570.05 Td (One million cubic feet, used in reference to gas.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 547.25 Td (Net acres or net wells. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.53 547.25 Td ( Sum of our fractional working interests owned in gross acres or gross wells.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 524.45 Td (NGLs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.51 524.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 64.01 524.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.51 524.45 Td (The combination of ethane, propane, isobutane, normal butane, and natural gasoline that when removed from gas become ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 513.65 Td (liquid under various levels of higher pressure and lower temperature.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 490.85 Td (NYMEX WTI. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 94.50 490.85 Td (New ) Tj ET Q q 0 0 0 rg BT 114.84 490.85 Td (Y) Tj ET Q q 0 0 0 rg BT 120.02 490.85 Td (ork Mercantile Exchange W) Tj ET Q q 0 0 0 rg BT 229.90 490.85 Td (est ) Tj ET Q q 0 0 0 rg BT 244.24 490.85 Td (T) Tj ET Q q 0 0 0 rg BT 248.74 490.85 Td (exas Intermediate, a common industry benchmark price for oil.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 468.05 Td (NYMEX Henry Hub) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 113.52 468.05 Td (. New ) Tj ET Q q 0 0 0 rg BT 141.37 468.05 Td (Y) Tj ET Q q 0 0 0 rg BT 146.54 468.05 Td (ork Mercantile Exchange Henry Hub, a common industry benchmark price for gas.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (OPIS) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.51 445.25 Td (. Oil Price Information Service, a common industry benchmark for NGL) Tj ET Q q 0 0 0 rg BT 340.77 445.25 Td ( pricing at Mont Belvieu, ) Tj ET Q q 0 0 0 rg BT 439.16 445.25 Td (T) Tj ET Q q 0 0 0 rg BT 443.66 445.25 Td (exas. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 422.45 Td (PV) Tj ET Q q 0 0 0 rg BT 47.67 422.45 Td (-10 \(Non-GAAP\). ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.19 422.45 Td (PV) Tj ET Q q 0 0 0 rg BT 132.70 422.45 Td (-10 is a non-GAAP) Tj ET Q q 0 0 0 rg BT 207.58 422.45 Td ( measure. ) Tj ET Q q 0 0 0 rg BT 252.43 422.45 Td (The present value of estimated future revenue to be generated from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 411.65 Td (production of estimated net proved reserves, net of estimated production and future development costs, based on prices used in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 400.85 Td (estimating the proved reserves and costs in ef) Tj ET Q q 0 0 0 rg BT 219.43 400.85 Td (fect as of the date indicated \(unless such costs are subject to change pursuant to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 390.05 Td (contractual provisions\), without giving ef) Tj ET Q q 0 0 0 rg BT 195.42 390.05 Td (fect to non-property related expenses such as general and administrative expenses, debt ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 379.25 Td (service, future income tax expenses, or depreciation, depletion, and amortization, discounted using an annual discount rate of 10 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 368.45 Td (percent. While this measure does not include the ef) Tj ET Q q 0 0 0 rg BT 242.95 368.45 Td (fect of income taxes as it would in the use of the standardized measure of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 357.65 Td (discounted future net cash flows calculation, it does provide an indicative representation of the relative value of the Company on a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 346.85 Td (comparative basis to other companies and from period to period. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 324.05 Td (Productive well. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.03 324.05 Td (A) Tj ET Q q 0 0 0 rg BT 109.53 324.05 Td ( well that is producing oil, gas, and/or NGLs or that is capable of commercial production of those products.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 301.25 Td (Proved reserves. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 109.03 301.25 Td (Those quantities of oil, gas, and NGLs which, by analysis of geoscience and engineering data, can be estimated with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 290.45 Td (reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and under existing economic ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 279.65 Td (conditions, operating methods, and government regulations – prior to the time at which contracts providing the right to operate expire, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td (unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 258.05 Td (the estimation. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 247.25 Td (determined, and the price to be used is the average price during the 12-month period prior to the ending date of the period covered by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 236.45 Td (the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td (Recompletion. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 98.53 202.85 Td (The completion of an existing wellbore in a formation other than that in which the well has previously been completed.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 180.05 Td (Reserve life index. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.04 180.05 Td (Expressed in years, represents the estimated net proved reserves at a specified date divided by actual production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 169.25 Td (for the preceding 12-month period.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (Reservoir) Tj ET Q q 0 0 0 rg BT 74.18 146.45 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.68 146.45 Td (A) Tj ET Q q 0 0 0 rg BT 87.18 146.45 Td ( porous and permeable underground formation containing a natural accumulation of producible oil, gas, and/or associated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (liquid resources that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 112.85 Td (Resource play) Tj ET Q q 0 0 0 rg BT 92.86 112.85 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 100.36 112.85 Td (A) Tj ET Q q 0 0 0 rg BT 105.87 112.85 Td ( term used to describe an accumulation of oil, gas, and/or associated liquid resources known to exist over a large ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 102.05 Td (areal expanse, which when compared to a conventional play typically has lower expected geological risk.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 79.25 Td (Royalty) Tj ET Q q 0 0 0 rg BT 65.34 79.25 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.84 79.25 Td (The amount or fee paid to the owner of mineral rights, expressed as a percentage or fraction of gross income from oil, gas, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 68.45 Td (and NGLs produced and sold unencumbered by expenses relating to the drilling, completing, and operating of the af) Tj ET Q q 0 0 0 rg BT 497.64 68.45 Td (fected well.) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (22) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Royalty interest. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.53 740.45 Td (An interest in an oil and gas property entitling the owner to shares of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 448.89 740.45 Td ( production free of costs of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (exploration, development, and production operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (Seismic. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.01 706.85 Td (The) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.51 706.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.01 706.85 Td (sending of energy waves or sound waves into the earth and analyzing the wave reflections to infer the type, size, shape, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (and depth of subsurface rock formations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 673.25 Td (Shale. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.52 673.25 Td (Fine-grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 662.45 Td (sedimentary rock.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 639.65 Td (Standardized measure of discounted future net cash flows. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.14 639.65 Td (The discounted future net cash flows related to estimated proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 628.85 Td (based on prices used in estimating the reserves, year end costs, and statutory tax rates, at a 10 percent annual discount rate. ) Tj ET Q q 0 0 0 rg BT 540.12 628.85 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 618.05 Td (information for this calculation is included in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 212.09 618.05 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.67 618.05 Td ( located in Part II, Item 8 of this report.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 595.25 Td (T) Tj ET Q q 0 0 0 rg BT 40.83 595.25 Td (rack record.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 88.34 595.25 Td ( Current year conversions of proved undeveloped reserves to proved developed reserves, divided by beginning of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 584.45 Td (year proved undeveloped reserves.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 561.65 Td (Undeveloped acreage. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.57 561.65 Td (Lease acreage on which wells have not been drilled or completed to a point that would permit the production of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 550.85 Td (commercial quantities of oil, gas, and NGLs regardless of whether such acreage contains estimated net proved reserves.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 528.05 Td (Undeveloped reserves. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.55 528.05 Td (Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 517.25 Td (a relatively major expenditure is required for recompletion. ) Tj ET Q q 0 0 0 rg BT 272.45 517.25 Td (The applicable SEC definition of undeveloped reserves provides that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 506.45 Td (undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 495.65 Td (are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 472.85 Td (Working interest. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 108.52 472.85 Td (The operating interest that gives the owner the right to drill, produce, and conduct operating activities on the property ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 462.05 Td (and to share in the production, sales, and costs.) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (23) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (ITEM 1A. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 740.45 Td (RISK F) Tj ET Q q 0 0 0 rg BT 108.01 740.45 Td (ACT) Tj ET Q q 0 0 0 rg BT 126.34 740.45 Td (ORS) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.85 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (In addition to the other information included in this report, the following risk factors should be carefully considered when ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (evaluating an investment in us.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 684.05 Td (Risks Related to Our Business) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 167.04 684.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 661.25 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 107.37 661.25 Td ( prices are volatile, and declines in prices adversely affect our profitability) Tj ET Q q 0 0 0 rg BT 397.34 661.25 Td (, financial condition, cash flows, access to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 650.45 Td (capital, and ability to grow) Tj ET Q q 0 0 0 rg BT 139.06 650.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 627.65 Td (Our revenues, operating results, profitability) Tj ET Q q 0 0 0 rg BT 245.42 627.65 Td (, future rate of growth, and the carrying value of our oil and gas properties depend ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 616.85 Td (heavily on the prices we receive for oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 248.27 616.85 Td ( sales. Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 350.49 616.85 Td ( prices also af) Tj ET Q q 0 0 0 rg BT 405.85 616.85 Td (fect our cash flows available for capital ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 606.05 Td (expenditures and other items, our borrowing capacity) Tj ET Q q 0 0 0 rg BT 246.95 606.05 Td (, and the volume and value of our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 452.24 606.05 Td ( reserves. For example, the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 595.25 Td (amount of our borrowing base under our Credit ) Tj ET Q q 0 0 0 rg BT 225.11 595.25 Td (Agreement is subject to periodic redetermination based on oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 529.45 595.25 Td ( prices ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 584.45 Td (specified by our bank group at the time of redetermination. In addition, we may have oil and gas property impairments or downward ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 573.65 Td (revisions of estimates of proved reserves if prices fall significantly) Tj ET Q q 0 0 0 rg BT 295.44 573.65 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 363.97 573.65 Td (Significant Developments in 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.55 573.65 Td ( and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 517.57 573.65 Td (Reserves) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 555.58 573.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 562.85 Td (within Part I, Items 1 and 2,) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 145.05 562.85 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 147.55 562.85 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 301.95 562.85 Td (rends Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 542.15 562.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.65 562.85 Td (within ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 552.05 Td (Part II, Item 7, and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 112.54 552.05 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 243.76 552.05 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.80 552.05 Td (,) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 324.30 552.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 326.80 552.05 Td (Note 1) Tj ET Q q 0 0 0 rg BT 352.65 552.05 Td (1 – Fair V) Tj ET Q q 0 0 0 rg BT 391.33 552.05 Td (alue Measurements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.37 552.05 Td (, and) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 490.39 552.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 492.89 552.05 Td (Supplemental Oil ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 541.25 Td (and Gas Information) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.54 541.25 Td ( in Part II, Item 8 for specific discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 518.45 Td (Historically) Tj ET Q q 0 0 0 rg BT 114.84 518.45 Td (, the markets for oil, gas, and NGLs have been volatile, and they are likely to continue to be volatile. Wide ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 507.65 Td (fluctuations in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 162.74 507.65 Td ( prices may result from relatively minor changes in the supply of and demand for oil, gas, and NGLs, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 496.85 Td (market uncertainty) Tj ET Q q 0 0 0 rg BT 109.36 496.85 Td (, and other factors that are beyond our control, including:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 474.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 474.05 Td (global and domestic supplies of oil, gas, and NGLs, and the productive capacity of the industry as a whole;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 457.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 457.25 Td (the level of consumer demand for oil, gas, and NGLs;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 440.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 440.45 Td (overall global and domestic economic conditions;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 423.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 423.65 Td (weather conditions;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 406.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 406.85 Td (the availability and capacity of gathering, transportation, processing, and/or refining facilities in regional or localized areas;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 390.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 390.05 Td (liquefied natural gas deliveries to and from the United States;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 373.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 373.25 Td (the price and availability of alternative fuels;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 356.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 356.45 Td (technological advances and regulations af) Tj ET Q q 0 0 0 rg BT 257.45 356.45 Td (fecting energy consumption and conservation;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 339.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 339.65 Td (the ability of the members of the Organization of Petroleum Exporting Countries and other exporting countries to maintain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 328.85 Td (ef) Tj ET Q q 0 0 0 rg BT 97.34 328.85 Td (fective oil price and production controls;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 312.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 312.05 Td (political instability or armed conflict in oil or gas producing regions;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 295.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 295.25 Td (strengthening and weakening of the United States dollar relative to other currencies; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 278.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 278.45 Td (governmental regulations and taxes.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 255.65 Td (Declines in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 187.73 255.65 Td ( prices would reduce our revenues and could also reduce the amount of oil, gas, and NGLs that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 244.85 Td (we can produce economically) Tj ET Q q 0 0 0 rg BT 153.40 244.85 Td (, which could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 320.32 244.85 Td (fect on us.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 222.05 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 222.05 Td (eakness in economic conditions or uncertainty in financial markets may have material adverse impacts on our business that we ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 211.25 Td (cannot predict.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 188.45 Td (In the last decade, the United States and global economies and financial systems have experienced turmoil and upheaval ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 177.65 Td (characterized by extreme volatility in prices of equity and debt securities, periods of diminished liquidity and credit availability) Tj ET Q q 0 0 0 rg BT 530.08 177.65 Td (, inability to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 166.85 Td (access capital markets, the bankruptcy) Tj ET Q q 0 0 0 rg BT 190.40 166.85 Td (, failure, collapse, or sale of financial institutions, increased levels of unemployment, and an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 156.05 Td (unprecedented level of intervention by the United States federal government and other governments. ) Tj ET Q q 0 0 0 rg BT 441.76 156.05 Td (Although the United States ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 145.25 Td (economy appears to have stabilized, future uncertainty is possible. Renewed weakness in the United States or other large economies ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 134.45 Td (could materially adversely af) Tj ET Q q 0 0 0 rg BT 149.39 134.45 Td (fect our business and financial condition. For example:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 111.65 Td (• ) Tj ET Q q 0 0 0 rg BT 90.00 111.65 Td (the tightening of credit or lack of credit availability to our customers could adversely af) Tj ET Q q 0 0 0 rg BT 430.51 111.65 Td (fect our ability to collect our trade ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 100.85 Td (receivables;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 84.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 84.05 Td (the liquidity available under our Credit ) Tj ET Q q 0 0 0 rg BT 242.59 84.05 Td (Agreement could be reduced if any lender is unable to fund its commitment;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 67.25 Td (• ) Tj ET Q q 0 0 0 rg BT 90.00 67.25 Td (our ability to access the capital markets may be restricted at a time when we would like, or need, to raise capital for our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 56.45 Td (business, including for the exploration and/or development of reserves;) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (• ) Tj ET Q q 0 0 0 rg BT 90.00 740.45 Td (our commodity derivative contracts could become economically inef) Tj ET Q q 0 0 0 rg BT 358.96 740.45 Td (fective if our counterparties are unable to perform their ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 729.65 Td (obligations or seek bankruptcy protection; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 712.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 712.85 Td (variable interest rate spread levels, including for LIBOR and the prime rate, could increase significantly) Tj ET Q q 0 0 0 rg BT 497.04 712.85 Td (, resulting in higher ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 702.05 Td (interest costs for unhedged variable interest rate based borrowings under our Credit ) Tj ET Q q 0 0 0 rg BT 425.69 702.05 Td (Agreement.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 679.25 Td (If we are unable to replace reserves, we will not be able to sustain production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 656.45 Td (Our future operations depend on our ability to find, develop, or acquire oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 423.38 656.45 Td ( reserves that are economically ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 645.65 Td (producible. Our properties produce oil, gas, and NGLs at a declining rate over time. In order to maintain current production rates, we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 634.85 Td (must locate and develop or acquire new oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 266.80 634.85 Td ( reserves to replace those being depleted by production. Competition for oil ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 624.05 Td (and gas properties is intense, and many of our competitors have financial, technical, human, and other resources necessary to evaluate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 613.25 Td (and integrate acquisitions that are substantially greater than those available to us. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 590.45 Td (For our recent acquisitions, or any future acquisitions we may complete, a successful impact on our business will depend on a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 579.65 Td (number of factors, many of which are beyond our control. ) Tj ET Q q 0 0 0 rg BT 268.45 579.65 Td (These factors include the purchase price and transaction costs for the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 568.85 Td (acquisition, future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 178.25 568.85 Td ( prices, the ability to reasonably estimate the recoverable volumes of reserves, rates of future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 558.05 Td (production and future net revenues attainable from reserves, future operating and capital costs, results of future exploration, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 547.25 Td (exploitation, and development activities on the acquired properties, and future abandonment and possible future environmental or other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 536.45 Td (liabilities. ) Tj ET Q q 0 0 0 rg BT 77.35 536.45 Td (There are numerous uncertainties inherent in estimating quantities of proved oil and gas reserves, actual future production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 525.65 Td (rates, and associated costs and potential liabilities with respect to prospective acquisition targets. ) Tj ET Q q 0 0 0 rg BT 426.71 525.65 Td (Actual results may vary substantially ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 514.85 Td (from those assumed in the estimates. Our customary review in connection with property acquisitions will not necessarily reveal, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 504.05 Td (allow us to fully assess, all existing or potential problems and deficiencies with the properties. W) Tj ET Q q 0 0 0 rg BT 420.02 504.05 Td (e do not inspect every well, and even ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 493.25 Td (when we inspect a well, we may not discover structural, subsurface, or environmental problems that may exist or arise. W) Tj ET Q q 0 0 0 rg BT 521.53 493.25 Td (e may not be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 482.45 Td (entitled to contractual indemnification for pre-closing liabilities, including environmental liabilities. W) Tj ET Q q 0 0 0 rg BT 432.03 482.45 Td (e often acquire interests in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 471.65 Td (properties on an “as-is” basis with limited remedies for breaches of representations and warranties.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 448.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 117.36 448.85 Td (, significant acquisitions can change the nature of our operations and business depending upon the character of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 438.05 Td (the acquired properties if they have substantially dif) Tj ET Q q 0 0 0 rg BT 240.46 438.05 Td (ferent operating and geological characteristics or are in dif) Tj ET Q q 0 0 0 rg BT 471.42 438.05 Td (ferent geographic ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 427.25 Td (locations than our existing properties. ) Tj ET Q q 0 0 0 rg BT 189.92 427.25 Td (T) Tj ET Q q 0 0 0 rg BT 194.42 427.25 Td (o the extent that acquired properties are substantially dif) Tj ET Q q 0 0 0 rg BT 417.89 427.25 Td (ferent than our existing properties, our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 416.45 Td (ability to ef) Tj ET Q q 0 0 0 rg BT 78.86 416.45 Td (ficiently realize the expected economic benefits of such transactions may be limited.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 393.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 393.65 Td (Integrating acquired businesses and properties involves a number of special risks. ) Tj ET Q q 0 0 0 rg BT 403.51 393.65 Td (These risks include the possibility that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 382.85 Td (management may be distracted from regular business concerns by the need to integrate operations and systems and that unforeseen ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 372.05 Td (dif) Tj ET Q q 0 0 0 rg BT 45.34 372.05 Td (ficulties can arise in integrating operations and systems and in retaining and assimilating employees. ) Tj ET Q q 0 0 0 rg BT 450.07 372.05 Td (Any of these or other similar ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 361.25 Td (risks could lead to potential adverse short-term or long-term ef) Tj ET Q q 0 0 0 rg BT 283.45 361.25 Td (fects on our operating results and may cause us to not be able to realize ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 350.45 Td (any or all of the anticipated benefits of the acquisitions. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 327.65 Td (Substantial capital is required to develop and replace our reserves.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 304.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 304.85 Td (e must make substantial capital expenditures to find, acquire, develop, and produce oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 484.74 304.85 Td ( reserves. Future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 294.05 Td (cash flows and the availability of financing are subject to a number of factors, such as the level of production from existing wells, prices ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 283.25 Td (received for oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 154.73 283.25 Td ( sales, our success in locating, developing and acquiring new reserves, and the orderly functioning of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 272.45 Td (credit and capital markets. If our cash flows from operations are less than expected, we may reduce our planned capital expenditures ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 261.65 Td (unless we can raise additional funds through debt or equity financing or the divestment of assets. Debt or equity financing may not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 250.85 Td (always be available to us in suf) Tj ET Q q 0 0 0 rg BT 159.91 250.85 Td (ficient amounts or on acceptable terms, and the proceeds of) Tj ET Q q 0 0 0 rg BT 398.88 250.85 Td (fered to us for potential divestitures may not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 240.05 Td (always be acceptable to us. ) Tj ET Q q 0 0 0 rg BT 151.07 240.05 Td (Any downgrades to our credit ratings may make it more dif) Tj ET Q q 0 0 0 rg BT 383.51 240.05 Td (ficult or expensive for us to borrow additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 229.25 Td (funds. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 206.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 206.45 Td (If our revenues decrease in the future due to lower oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 337.81 206.45 Td ( prices, decreased production, or other reasons, and if we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 195.65 Td (cannot obtain funding through our Credit ) Tj ET Q q 0 0 0 rg BT 199.12 195.65 Td (Agreement, other acceptable debt or equity financing arrangements, or through the sale of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 184.85 Td (assets, our ability to execute development plans, replace our reserves, maintain our acreage, or maintain production levels could be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 174.05 Td (greatly limited.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (Our ability to sell oil, gas, and NGLs, and/or receive market prices for our production, may be adversely affected by constraints on ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (gathering systems, processing facilities, pipelines, and other transportation systems owned or operated by third-parties or by other ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 129.65 Td (interruptions beyond our control, which could obstruct, limit, or eliminate our access to oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 449.54 129.65 Td ( markets.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 106.85 Td (The marketability of our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 237.74 106.85 Td ( production depends in part on the availability) Tj ET Q q 0 0 0 rg BT 417.70 106.85 Td (, proximity) Tj ET Q q 0 0 0 rg BT 458.03 106.85 Td (, and capacity of gathering ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 96.05 Td (systems, processing facilities, pipelines, and other transportation systems, which are generally owned or operated by third-parties. ) Tj ET Q q 0 0 0 rg BT 557.76 96.05 Td (Any ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 85.25 Td (significant interruption in service from, damage to, or lack of available capacity in these systems and facilities can result in the shutting-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 74.45 Td (in of producing wells, the delay) Tj ET Q q 0 0 0 rg BT 158.41 74.45 Td (, or discontinuance of development plans for our properties, or lower price realizations. ) Tj ET Q q 0 0 0 rg BT 507.09 74.45 Td (Although we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 63.65 Td (have some influence over the processing and transportation of our operated production, material changes in these business ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 52.85 Td (relationships could materially af) Tj ET Q q 0 0 0 rg BT 161.40 52.85 Td (fect our operations. Federal and state regulation of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 437.23 52.85 Td ( production and transportation, tax ) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (and energy policies, changes in supply and demand, pipeline pressures, damage to or destruction of pipelines or processing facilities, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (infrastructure or capacity constraints, and general economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 392.02 729.65 Td (fect our ability to produce, gather) Tj ET Q q 0 0 0 rg BT 522.60 729.65 Td (, process, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (transport, or market oil, gas, and NGLs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 696.05 Td (In particular) Tj ET Q q 0 0 0 rg BT 118.52 696.05 Td (, if production from the Midland Basin continues to grow) Tj ET Q q 0 0 0 rg BT 339.64 696.05 Td (, the amount of oil, gas, and NGLs being produced by us ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (and others could exceed the capacity of, and result in constraints on, available gathering and transportation systems, pipelines, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (processing facilities, and other infrastructure. In such circumstances, it will be necessary for pipelines, gathering and transportation ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (systems, processing facilities, and additional infrastructure to be expanded, built, or developed to accommodate anticipated production. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (Certain processing, pipeline, and other gathering, transportation, and infrastructure projects that might be, or are being, considered for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (these areas may not be developed timely or at all due to lack of financing or other constraints, including regulatory constraints. Capital ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (and other constraints could also limit our ability to build or access intrastate gathering and transportation systems necessary to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (transport our production to interstate pipelines or other points of sale or delivery) Tj ET Q q 0 0 0 rg BT 351.51 620.45 Td (. In such event, we might have to delay or discontinue ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 609.65 Td (development activities or shut in our wells to wait for suf) Tj ET Q q 0 0 0 rg BT 257.94 609.65 Td (ficient infrastructure development or capacity expansion and/or sell production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 598.85 Td (at significantly lower prices, which would adversely af) Tj ET Q q 0 0 0 rg BT 247.93 598.85 Td (fect our results of operations and cash flows. In addition, the operations of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 588.05 Td (third-parties on whom we rely for gathering, processing, and transportation services are subject to complex and stringent laws and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 577.25 Td (regulations, which require obtaining and maintaining numerous permits, approvals, and certifications from various federal, state, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 566.45 Td (local government authorities. ) Tj ET Q q 0 0 0 rg BT 155.90 566.45 Td (These third-parties may incur substantial costs in order to comply with existing and future laws and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 555.65 Td (regulations. If existing laws and regulations governing such third-party services are revised or reinterpreted, or if new laws and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 544.85 Td (regulations become applicable to their operations, these changes may af) Tj ET Q q 0 0 0 rg BT 325.02 544.85 Td (fect the availability and costs of such services. Similarly) Tj ET Q q 0 0 0 rg BT 547.44 544.85 Td (, a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 534.05 Td (failure to comply with such laws and regulations by the third-parties on whom we rely could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 505.57 534.05 Td (fect on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 523.25 Td (business, financial condition, and results of operations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 500.45 Td (A) Tj ET Q q 0 0 0 rg BT 77.51 500.45 Td ( portion of our production in any region may be interrupted, or shut in, from time to time for numerous reasons, including as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 489.65 Td (result of weather conditions, accidents, loss of pipeline, gathering, processing or transportation system access or capacity) Tj ET Q q 0 0 0 rg BT 519.08 489.65 Td (, field labor ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 478.85 Td (issues or strikes, or we might voluntarily curtail production in response to market or other conditions. If a substantial amount of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 468.05 Td (production is interrupted at the same time, it could adversely af) Tj ET Q q 0 0 0 rg BT 285.97 468.05 Td (fect our cash flows and results of operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (Downgrades ) Tj ET Q q 0 0 0 rg BT 89.12 445.25 Td (in ) Tj ET Q q 0 0 0 rg BT 98.71 445.25 Td (our ) Tj ET Q q 0 0 0 rg BT 114.30 445.25 Td (credit ) Tj ET Q q 0 0 0 rg BT 138.90 445.25 Td (ratings ) Tj ET Q q 0 0 0 rg BT 168.50 445.25 Td (by ) Tj ET Q q 0 0 0 rg BT 180.59 445.25 Td (various ) Tj ET Q q 0 0 0 rg BT 212.19 445.25 Td (credit ) Tj ET Q q 0 0 0 rg BT 236.79 445.25 Td (rating ) Tj ET Q q 0 0 0 rg BT 261.89 445.25 Td (agencies ) Tj ET Q q 0 0 0 rg BT 300.50 445.25 Td (could ) Tj ET Q q 0 0 0 rg BT 324.60 445.25 Td (impact ) Tj ET Q q 0 0 0 rg BT 353.70 445.25 Td (our ) Tj ET Q q 0 0 0 rg BT 369.29 445.25 Td (access ) Tj ET Q q 0 0 0 rg BT 399.89 445.25 Td (to ) Tj ET Q q 0 0 0 rg BT 409.99 445.25 Td (capital ) Tj ET Q q 0 0 0 rg BT 438.59 445.25 Td (and ) Tj ET Q q 0 0 0 rg BT 456.19 445.25 Td (materially ) Tj ET Q q 0 0 0 rg BT 497.29 445.25 Td (adversely ) Tj ET Q q 0 0 0 rg BT 538.40 445.25 Td (affect ) Tj ET Q q 0 0 0 rg BT 562.99 445.25 Td (our ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 434.45 Td (business ) Tj ET Q q 0 0 0 rg BT 74.02 434.45 Td (and ) Tj ET Q q 0 0 0 rg BT 91.54 434.45 Td (financial ) Tj ET Q q 0 0 0 rg BT 127.06 434.45 Td (condition.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 411.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 411.65 Td (In ) Tj ET Q q 0 0 0 rg BT 82.27 411.65 Td (February ) Tj ET Q q 0 0 0 rg BT 121.05 411.65 Td (2016, ) Tj ET Q q 0 0 0 rg BT 146.33 411.65 Td (Moody’) Tj ET Q q 0 0 0 rg BT 175.18 411.65 Td (s ) Tj ET Q q 0 0 0 rg BT 182.45 411.65 Td (Investors ) Tj ET Q q 0 0 0 rg BT 221.73 411.65 Td (Service ) Tj ET Q q 0 0 0 rg BT 254.50 411.65 Td (and ) Tj ET Q q 0 0 0 rg BT 272.28 411.65 Td (Standard ) Tj ET Q q 0 0 0 rg BT 311.57 411.65 Td (& ) Tj ET Q q 0 0 0 rg BT 320.34 411.65 Td (Poor) Tj ET Q q 0 0 0 rg BT 339.68 411.65 Td (’) Tj ET Q q 0 0 0 rg BT 341.52 411.65 Td (s ) Tj ET Q q 0 0 0 rg BT 348.79 411.65 Td (downgraded ) Tj ET Q q 0 0 0 rg BT 401.09 411.65 Td (our ) Tj ET Q q 0 0 0 rg BT 416.86 411.65 Td (credit ) Tj ET Q q 0 0 0 rg BT 441.63 411.65 Td (ratings ) Tj ET Q q 0 0 0 rg BT 471.41 411.65 Td (\(“Debt ) Tj ET Q q 0 0 0 rg BT 499.18 411.65 Td (Rating”\). ) Tj ET Q q 0 0 0 rg BT 536.45 411.65 Td ( ) Tj ET Q q 0 0 0 rg BT 539.22 411.65 Td (Our ) Tj ET Q q 0 0 0 rg BT 556.98 411.65 Td (Debt ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 400.85 Td (Rating ) Tj ET Q q 0 0 0 rg BT 64.52 400.85 Td (levels ) Tj ET Q q 0 0 0 rg BT 90.03 400.85 Td (could ) Tj ET Q q 0 0 0 rg BT 114.04 400.85 Td (have ) Tj ET Q q 0 0 0 rg BT 136.06 400.85 Td (materially ) Tj ET Q q 0 0 0 rg BT 177.07 400.85 Td (adverse ) Tj ET Q q 0 0 0 rg BT 211.59 400.85 Td (consequences ) Tj ET Q q 0 0 0 rg BT 272.13 400.85 Td (on ) Tj ET Q q 0 0 0 rg BT 284.64 400.85 Td (our ) Tj ET Q q 0 0 0 rg BT 300.15 400.85 Td (business ) Tj ET Q q 0 0 0 rg BT 338.17 400.85 Td (and ) Tj ET Q q 0 0 0 rg BT 355.69 400.85 Td (future ) Tj ET Q q 0 0 0 rg BT 381.20 400.85 Td (prospects ) Tj ET Q q 0 0 0 rg BT 422.72 400.85 Td (and ) Tj ET Q q 0 0 0 rg BT 440.24 400.85 Td (could:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 378.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 378.05 Td (limit our ability to access debt markets, including for the purpose of refinancing our existing debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 361.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 361.25 Td (cause us to refinance or issue debt with less favorable terms and conditions, which debt may restrict, among other things, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 350.45 Td (our ability to make any dividend distributions or repurchase shares;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 333.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 333.65 Td (negatively impact current and prospective customers’) Tj ET Q q 0 0 0 rg BT 301.76 333.65 Td ( willingness to transact business with us;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 316.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 316.85 Td (impose additional insurance, guarantee and collateral requirements;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 300.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 300.05 Td (limit our access to bank and third-party guarantees, surety bonds and letters of credit; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 283.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 283.25 Td (cause our suppliers and financial institutions to lower or eliminate the level of credit provided through payment terms or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 272.45 Td (intraday funding when dealing with us, thereby increasing the need for higher levels of cash on hand, which would ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 261.65 Td (decrease our ability to repay outstanding indebtedness.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 238.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 238.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 238.85 Td (e ) Tj ET Q q 0 0 0 rg BT 87.55 238.85 Td (cannot ) Tj ET Q q 0 0 0 rg BT 116.78 238.85 Td (provide ) Tj ET Q q 0 0 0 rg BT 148.51 238.85 Td (assurance ) Tj ET Q q 0 0 0 rg BT 192.25 238.85 Td (that ) Tj ET Q q 0 0 0 rg BT 209.48 238.85 Td (any ) Tj ET Q q 0 0 0 rg BT 226.20 238.85 Td (of ) Tj ET Q q 0 0 0 rg BT 235.92 238.85 Td (our ) Tj ET Q q 0 0 0 rg BT 251.14 238.85 Td (current ) Tj ET Q q 0 0 0 rg BT 281.36 238.85 Td (Debt ) Tj ET Q q 0 0 0 rg BT 302.58 238.85 Td (Ratings ) Tj ET Q q 0 0 0 rg BT 335.31 238.85 Td (will ) Tj ET Q q 0 0 0 rg BT 350.02 238.85 Td (remain ) Tj ET Q q 0 0 0 rg BT 379.74 238.85 Td (in ) Tj ET Q q 0 0 0 rg BT 388.96 238.85 Td (ef) Tj ET Q q 0 0 0 rg BT 396.30 238.85 Td (fect ) Tj ET Q q 0 0 0 rg BT 413.02 238.85 Td (for ) Tj ET Q q 0 0 0 rg BT 425.74 238.85 Td (any ) Tj ET Q q 0 0 0 rg BT 442.46 238.85 Td (given ) Tj ET Q q 0 0 0 rg BT 466.19 238.85 Td (period ) Tj ET Q q 0 0 0 rg BT 493.42 238.85 Td (of ) Tj ET Q q 0 0 0 rg BT 503.14 238.85 Td (time ) Tj ET Q q 0 0 0 rg BT 522.35 238.85 Td (or ) Tj ET Q q 0 0 0 rg BT 532.57 238.85 Td (that ) Tj ET Q q 0 0 0 rg BT 549.79 238.85 Td (a ) Tj ET Q q 0 0 0 rg BT 557.01 238.85 Td (Debt ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.05 Td (Rating ) Tj ET Q q 0 0 0 rg BT 64.52 228.05 Td (will ) Tj ET Q q 0 0 0 rg BT 79.51 228.05 Td (not ) Tj ET Q q 0 0 0 rg BT 94.53 228.05 Td (be ) Tj ET Q q 0 0 0 rg BT 107.04 228.05 Td (further ) Tj ET Q q 0 0 0 rg BT 135.55 228.05 Td (lowered ) Tj ET Q q 0 0 0 rg BT 169.57 228.05 Td (or ) Tj ET Q q 0 0 0 rg BT 180.07 228.05 Td (withdrawn ) Tj ET Q q 0 0 0 rg BT 223.09 228.05 Td (entirely ) Tj ET Q q 0 0 0 rg BT 254.60 228.05 Td (by ) Tj ET Q q 0 0 0 rg BT 266.61 228.05 Td (a ) Tj ET Q q 0 0 0 rg BT 274.11 228.05 Td (rating ) Tj ET Q q 0 0 0 rg BT 299.13 228.05 Td (agency ) Tj ET Q q 0 0 0 rg BT 330.65 228.05 Td (if, ) Tj ET Q q 0 0 0 rg BT 340.15 228.05 Td (in ) Tj ET Q q 0 0 0 rg BT 349.66 228.05 Td (its ) Tj ET Q q 0 0 0 rg BT 361.16 228.05 Td (judgment, ) Tj ET Q q 0 0 0 rg BT 403.18 228.05 Td (circumstances ) Tj ET Q q 0 0 0 rg BT 463.20 228.05 Td (warrant.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 205.25 Td (Competition in our industry is intense, and many of our competitors have greater financial, technical, and human resources than we do.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 182.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 182.45 Td (e face intense competition from major oil and gas companies, independent oil and gas exploration and production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 171.65 Td (companies, and institutional and individual investors who seek oil and gas investments throughout the world, as well as the equipment, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 160.85 Td (expertise, labor) Tj ET Q q 0 0 0 rg BT 97.04 160.85 Td (, and materials required to operate oil and gas properties. Many of our competitors have financial, technical, and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 150.05 Td (resources exceeding those available to us, and many oil and gas properties are sold in a competitive bidding process in which our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 139.25 Td (competitors may be able and willing to pay more for exploratory and development prospects and productive properties, or in which our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 128.45 Td (competitors have technological information or expertise that is not available to us to evaluate and successfully bid for properties. W) Tj ET Q q 0 0 0 rg BT 558.61 128.45 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 117.65 Td (may not be successful in acquiring and developing profitable properties in the face of this competition. In addition, other companies ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 106.85 Td (may have a greater ability to continue drilling activities during periods of low oil or gas prices and to absorb the burden of current and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 96.05 Td (future governmental regulations and taxation. In addition, shortages of equipment, labor) Tj ET Q q 0 0 0 rg BT 386.73 96.05 Td (, or materials as a result of intense competition ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 85.25 Td (may result in increased costs or the inability to obtain those resources as needed. Our inability to compete ef) Tj ET Q q 0 0 0 rg BT 470.07 85.25 Td (fectively with companies ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 74.45 Td (in any area of our business could have a material adverse impact on our business activities, financial condition, and results of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 63.65 Td (operations.) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (26) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (The loss of key personnel could adversely affect our business. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 717.65 Td (e depend to a large extent on the ef) Tj ET Q q 0 0 0 rg BT 222.28 717.65 Td (forts and continued employment of our executive management team and other key ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (personnel. ) Tj ET Q q 0 0 0 rg BT 82.87 706.85 Td (The loss of their services could adversely af) Tj ET Q q 0 0 0 rg BT 257.28 706.85 Td (fect our business. Our drilling success and the success of other activities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (integral to our operations will depend, in part, on our ability to attract and retain experienced geologists, engineers, landmen, and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (professionals. Competition for many of these professionals can be intense. If we cannot retain our technical personnel or attract ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (additional experienced technical personnel and professionals, our ability to compete could be harmed.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (The actual quantities and present value of our proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 320.52 651.65 Td ( reserves may be less than we have estimated.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 628.85 Td (This report and certain of our other SEC filings contain estimates of our proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 456.86 628.85 Td ( reserves and the estimated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 618.05 Td (future net revenues from those reserves. ) Tj ET Q q 0 0 0 rg BT 202.92 618.05 Td (These estimates are based on various assumptions, including assumptions required by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 607.25 Td (SEC relating to oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 168.24 607.25 Td ( prices, drilling and completion costs, gathering and transportation costs, operating expenses, capital ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (expenditures, ef) Tj ET Q q 0 0 0 rg BT 99.88 596.45 Td (fects of governmental regulation, taxes, timing of operations, and availability of funds. ) Tj ET Q q 0 0 0 rg BT 443.91 596.45 Td (The process of estimating oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 91.20 585.65 Td ( reserves is complex and involves significant decisions and assumptions in the evaluation of available geological, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (geophysical, engineering, and economic data for each reservoir) Tj ET Q q 0 0 0 rg BT 288.65 574.85 Td (. ) Tj ET Q q 0 0 0 rg BT 295.99 574.85 Td (These estimates depend on many variables, and changes often occur ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (as our knowledge of these variables evolves. ) Tj ET Q q 0 0 0 rg BT 219.94 564.05 Td (Therefore, these estimates are inherently imprecise. In addition, our reserve estimates ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (for properties that do not have a significant production history may be less reliable than estimates for properties with lengthy production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (histories. ) Tj ET Q q 0 0 0 rg BT 76.52 542.45 Td (A) Tj ET Q q 0 0 0 rg BT 82.02 542.45 Td ( lack of production history may contribute to inaccuracy in our estimates of proved reserves, future production rates, and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (timing and/or amount of development expenditures.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 508.85 Td (Actual future production; prices for oil, gas, and NGLs; revenues; production taxes; development expenditures; operating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (expenses; and quantities of producible oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 261.31 498.05 Td ( reserves will most likely vary from those estimated. ) Tj ET Q q 0 0 0 rg BT 470.87 498.05 Td (Any significant variance of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (any nature could materially af) Tj ET Q q 0 0 0 rg BT 153.40 487.25 Td (fect the estimated quantities of and present value related to proved reserves disclosed by us, and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (actual quantities and present value may be significantly less than what we have previously estimated. In addition, we may adjust ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 465.65 Td (estimates of proved reserves to reflect production history) Tj ET Q q 0 0 0 rg BT 261.44 465.65 Td (, results of operations, results of exploration and development activity) Tj ET Q q 0 0 0 rg BT 536.41 465.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 454.85 Td (prevailing oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 146.23 454.85 Td ( prices, costs to develop and operate properties, and other factors, many of which are beyond our control. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 444.05 Td (Our properties may also be susceptible to hydrocarbon drainage from production on adjacent properties, which we may not control.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 421.25 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 421.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 421.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 179.06 421.25 Td (51%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 197.07 421.25 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.58 421.25 Td (258.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.10 421.25 Td ( MMBOE, of our estimated proved reserves were proved undeveloped. In order to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (develop our proved undeveloped reserves, as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.13 410.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.17 410.45 Td (, we estimate approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.22 410.45 Td ($2.6 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.25 410.45 Td ( of capital expenditures ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (would be required. ) Tj ET Q q 0 0 0 rg BT 114.55 399.65 Td (Although we have estimated our proved reserves and the costs associated with these proved reserves in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 388.85 Td (accordance with industry standards, estimated costs may not be accurate, development may not occur as scheduled, and actual results ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 378.05 Td (may not occur as estimated.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 355.25 Td (Y) Tj ET Q q 0 0 0 rg BT 77.18 355.25 Td (ou should not assume that the PV) Tj ET Q q 0 0 0 rg BT 211.77 355.25 Td (-10 or the standardized measure of discounted future net cash flows included in this report ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 344.45 Td (represent the current market value of our estimated proved oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 342.33 344.45 Td ( reserves. Management has based the estimated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 333.65 Td (discounted future net cash flows from proved reserves on price and cost assumptions required by the SEC, whereas actual future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 322.85 Td (prices and costs may be materially higher or lower) Tj ET Q q 0 0 0 rg BT 235.59 322.85 Td (. For example, the present value of our proved reserves as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.21 322.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 563.26 322.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 312.05 Td (was estimated using 12-month average sales prices of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.61 312.05 Td ($65.56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.14 312.05 Td ( per Bbl of oil \(NYMEX WTI spot price\), ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.68 312.05 Td ($3.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.20 312.05 Td ( per MMBtu of gas \(NYMEX ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 301.25 Td (Henry Hub spot price\), and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 146.05 301.25 Td ($33.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 173.58 301.25 Td ( per Bbl of NGL) Tj ET Q q 0 0 0 rg BT 235.27 301.25 Td ( \(OPIS spot price\).  W) Tj ET Q q 0 0 0 rg BT 322.63 301.25 Td (e then adjust these prices to reflect appropriate quality and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 290.45 Td (location dif) Tj ET Q q 0 0 0 rg BT 78.86 290.45 Td (ferentials over the period in estimating our proved reserves. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.00 290.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.02 290.45 Td (, our monthly average realized oil prices before the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 279.65 Td (ef) Tj ET Q q 0 0 0 rg BT 43.34 279.65 Td (fect of derivative settlements were as high as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.43 279.65 Td ($64.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.96 279.65 Td ( per Bbl and as low as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.01 279.65 Td ($41.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.54 279.65 Td ( per Bbl, were as high as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.09 279.65 Td ($34.56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.62 279.65 Td ( per Bbl and as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td (low as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.01 268.85 Td ($19.59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 91.54 268.85 Td ( per Bbl for NGLs, and were as high as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 249.12 268.85 Td ($4.04) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.64 268.85 Td ( per Mcf and as low as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.18 268.85 Td ($2.70) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.70 268.85 Td ( per Mcf for gas.  Many other factors will af) Tj ET Q q 0 0 0 rg BT 556.10 268.85 Td (fect ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 258.05 Td (actual future net cash flows, including:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 235.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 235.25 Td (amount and timing of actual production;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 218.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 218.45 Td (supply and demand for oil, gas, and NGLs;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 201.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 201.65 Td (curtailments or increases in consumption by oil purchasers and gas pipelines; ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 184.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 184.85 Td (changes in government regulations or taxes, including severance and excise taxes; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 168.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 168.05 Td (escalations or reductions in service provider and equipment costs resulting from changes in supply and demand.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 145.25 Td (The timing of production from oil and gas properties and of related expenses af) Tj ET Q q 0 0 0 rg BT 386.02 145.25 Td (fects the timing of actual future net cash flows ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 134.45 Td (from proved reserves, and thus their actual present value. Our actual future net cash flows could be less than the estimated future net ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 123.65 Td (cash flows for purposes of computing PV) Tj ET Q q 0 0 0 rg BT 198.58 123.65 Td (-10. In addition, the 10 percent discount factor required by the SEC to be used to calculate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 112.85 Td (PV) Tj ET Q q 0 0 0 rg BT 47.51 112.85 Td (-10 for reporting purposes is not necessarily the most appropriate discount factor given actual interest rates, costs of capital, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 102.05 Td (other risks to which our business and the oil and gas industry in general are subject.) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (27) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Our disposition activities may be subject to factors beyond our control, and in certain cases we may retain unforeseen liabilities for ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (certain matters) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.52 729.65 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 706.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 706.85 Td (e regularly sell non-core assets in order to increase capital resources available for core assets and other purposes and to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (create organizational and operational ef) Tj ET Q q 0 0 0 rg BT 193.95 696.05 Td (ficiencies. W) Tj ET Q q 0 0 0 rg BT 246.80 696.05 Td (e also occasionally sell interests in core assets for the purpose of accelerating the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (development and increasing ef) Tj ET Q q 0 0 0 rg BT 158.42 685.25 Td (ficiencies in other core assets. V) Tj ET Q q 0 0 0 rg BT 289.31 685.25 Td (arious factors could materially af) Tj ET Q q 0 0 0 rg BT 418.20 685.25 Td (fect our ability to dispose of such ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (assets, including the approvals of governmental agencies or third-parties, the availability of purchasers willing to acquire the assets on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (terms we deem acceptable, or other matters or uncertainties that could impact such dispositions, including whether transactions could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (be consummated or completed in the form or timing and for the value that we anticipate. W) Tj ET Q q 0 0 0 rg BT 399.52 652.85 Td (e at times may be required to retain certain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (liabilities or agree to indemnify buyers for certain matters related to the sold assets. ) Tj ET Q q 0 0 0 rg BT 371.50 642.05 Td (The magnitude of any such retained liabilities or of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (the indemnification obligations may be dif) Tj ET Q q 0 0 0 rg BT 200.43 631.25 Td (ficult to quantify at the time of the transaction and ultimately could be material.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 608.45 Td (e have limited control over the activities on properties we do not operate.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 585.65 Td (Some of our properties are operated by other companies and involve third-party working interest owners. ) Tj ET Q q 0 0 0 rg BT 493.22 585.65 Td (As a result, we have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (limited ability to influence or control the operation or future development of such properties, including the nature and timing of drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (and operational activities, the operator) Tj ET Q q 0 0 0 rg BT 188.93 564.05 Td (’) Tj ET Q q 0 0 0 rg BT 190.77 564.05 Td (s skill and expertise, compliance with environmental, safety and other regulations, the approval ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (of other participants in such properties, the selection and application of suitable technology) Tj ET Q q 0 0 0 rg BT 396.06 553.25 Td (, or the amount of expenditures that we will ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (be required to fund with respect to such properties. Moreover) Tj ET Q q 0 0 0 rg BT 281.13 542.45 Td (, we are dependent on the other working interest owners of such projects ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (to fund their contractual share of the expenditures of such properties. ) Tj ET Q q 0 0 0 rg BT 315.50 531.65 Td (These limitations and our dependence on the operator and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (working interest owners in these projects could cause us to incur unexpected future costs and materially and adversely af) Tj ET Q q 0 0 0 rg BT 518.09 520.85 Td (fect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (financial condition and results of operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 487.25 Td (e rely on third-party service providers to conduct drilling and completion and other related operations on properties we operate.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 464.45 Td (Where we are the operator of a property) Tj ET Q q 0 0 0 rg BT 231.42 464.45 Td (, we rely on third-party service providers to perform necessary drilling and completion ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (and other related operations. ) Tj ET Q q 0 0 0 rg BT 155.92 453.65 Td (The ability of third-party service providers to perform such operations will depend on those service ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (providers’) Tj ET Q q 0 0 0 rg BT 74.68 442.85 Td ( ability to compete for and retain qualified personnel, financial condition, economic performance, and access to capital, which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (in turn will depend upon the supply and demand for oil, gas, and NGLs, prevailing economic conditions and financial, business, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (other factors. In addition, sustained low commodity prices could cause third-party service providers to consolidate or declare ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (bankruptcy) Tj ET Q q 0 0 0 rg BT 79.36 410.45 Td (, which could limit our options for engaging such providers. ) Tj ET Q q 0 0 0 rg BT 317.82 410.45 Td (The failure of a third-party service provider to adequately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (perform operations could delay drilling or completion or reduce production from the property and adversely af) Tj ET Q q 0 0 0 rg BT 469.07 399.65 Td (fect our financial condition ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 388.85 Td (and results of operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 366.05 Td (T) Tj ET Q q 0 0 0 rg BT 41.42 366.05 Td (itle to the properties in which we have an interest may be impaired by title defects.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 343.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 343.25 Td (e generally rely on title reports in acquiring oil and gas leasehold interests and obtain title opinions only on significant ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 332.45 Td (properties that we drill. Undeveloped acreage has greater risk of title defects than developed acreage and title insurance is not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 321.65 Td (generally available for oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 219.11 321.65 Td (As is customary in our industry) Tj ET Q q 0 0 0 rg BT 340.98 321.65 Td (, we rely upon the judgment of staf) Tj ET Q q 0 0 0 rg BT 478.40 321.65 Td (f and independent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (landmen who perform the field work of examining records in the appropriate governmental of) Tj ET Q q 0 0 0 rg BT 404.03 310.85 Td (fices and title abstract facilities before ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (acquiring a specific mineral interest and/or undertaking drilling activities. W) Tj ET Q q 0 0 0 rg BT 335.47 300.05 Td (e, in some cases, perform curative work to correct ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (deficiencies in the marketability of the title. Generally) Tj ET Q q 0 0 0 rg BT 247.43 289.25 Td (, under the terms of the operating agreements af) Tj ET Q q 0 0 0 rg BT 440.38 289.25 Td (fecting our properties, any ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 278.45 Td (monetary loss attributable to a loss of title is to be borne by all parties to any such agreement in proportion to their interests in such ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.65 Td (property) Tj ET Q q 0 0 0 rg BT 68.35 267.65 Td (. ) Tj ET Q q 0 0 0 rg BT 75.35 267.65 Td (A) Tj ET Q q 0 0 0 rg BT 80.86 267.65 Td ( material title defect can reduce the value of a property or render it worthless, thus adversely af) Tj ET Q q 0 0 0 rg BT 457.39 267.65 Td (fecting our financial condition, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 256.85 Td (results of operations, and operating cash flow if such property is of suf) Tj ET Q q 0 0 0 rg BT 314.49 256.85 Td (ficient value.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 234.05 Td (Exploration and development drilling may not result in commercially producible reserves.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 211.25 Td (Oil and gas drilling, completion, and production activities are subject to numerous risks, including the risk that no commercially ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 200.45 Td (producible oil, gas, or NGLs will be found. ) Tj ET Q q 0 0 0 rg BT 206.93 200.45 Td (The cost of drilling and completing wells is often uncertain, and oil, gas, or NGLs drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 189.65 Td (production activities may be shortened, delayed, or canceled as a result of a variety of factors, many of which are beyond our control. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 178.85 Td (These factors may include, but are not limited to:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 156.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 156.05 Td (unexpected adverse drilling or completion conditions;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 139.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 139.25 Td (title problems;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 122.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 122.45 Td (disputes with owners or holders of surface interests on or near areas where we operate;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 105.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 105.65 Td (pressure or geologic irregularities in formations;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 88.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 88.85 Td (engineering and construction delays;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 72.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 72.05 Td (equipment failures or accidents;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 55.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 55.25 Td (hurricanes, tornadoes, flooding, or other adverse weather conditions;) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 740.45 Td (governmental permitting delays;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 723.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 723.65 Td (compliance with environmental and other governmental requirements; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 706.85 Td (shortages or delays in the availability of or increases in the cost of drilling rigs and crews, fracture stimulation crews and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 696.05 Td (equipment, pipe, chemicals, water) Tj ET Q q 0 0 0 rg BT 225.57 696.05 Td (, sand, and other supplies.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 673.25 Td (The prevailing prices for oil, gas, and NGLs af) Tj ET Q q 0 0 0 rg BT 254.43 673.25 Td (fect the cost of and the demand for drilling rigs, completion and production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 662.45 Td (equipment, and other related services. However) Tj ET Q q 0 0 0 rg BT 229.10 662.45 Td (, changes in costs may not occur simultaneously with corresponding changes in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (commodity prices. ) Tj ET Q q 0 0 0 rg BT 113.36 651.65 Td (The availability of drilling rigs can vary significantly from region to region at any particular time. ) Tj ET Q q 0 0 0 rg BT 492.53 651.65 Td (Although land ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (drilling rigs can be moved from one region to another in response to changes in levels of demand, an undersupply of rigs in any region ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (may result in drilling delays and higher drilling costs for the available rigs in that region.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 607.25 Td (Another significant risk inherent in our drilling plans is the need to obtain drilling permits from state, local, and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (governmental authorities. Delays in obtaining regulatory approvals and drilling permits, including delays that jeopardize our ability to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (realize the potential benefits from leased properties within the applicable lease periods, the failure to obtain a drilling permit for a well, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (or the receipt of a permit with unreasonable conditions or costs could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 425.04 574.85 Td (fect on our ability to explore or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (develop our properties.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 541.25 Td (The wells we drill may not be productive, and we may not recover all or any portion of our investment in such wells. ) Tj ET Q q 0 0 0 rg BT 534.05 541.25 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 530.45 Td (seismic data and other technologies we use do not allow us to know conclusively prior to drilling a well if oil, gas, or NGLs are present, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 519.65 Td (or whether they can be produced economically) Tj ET Q q 0 0 0 rg BT 221.44 519.65 Td (. Drilling activities can result in dry holes or wells that are productive but do not produce ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 508.85 Td (suf) Tj ET Q q 0 0 0 rg BT 47.84 508.85 Td (ficient net revenues after operating and other costs to cover drilling and completion costs. Even if suf) Tj ET Q q 0 0 0 rg BT 449.90 508.85 Td (ficient amounts of oil, gas, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (NGLs exist, we may damage a potentially productive hydrocarbon-bearing formation or experience mechanical dif) Tj ET Q q 0 0 0 rg BT 488.07 498.05 Td (ficulties while drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (or completing a well, which could result in reduced or no production from the well, significant expenditure to repair the well, and/or the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (loss and abandonment of the well.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 453.65 Td (Results in our newer resource plays, including those plays where we have recently acquired acreage, may be more uncertain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (than results in resource plays that are more developed and have longer established production histories. W) Tj ET Q q 0 0 0 rg BT 464.58 442.85 Td (e and the industry generally ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (have less information with respect to the ultimate recoverability of reserves and the production decline rates in newer resource plays ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (than other areas with longer histories of development and production. Drilling and completion techniques that have proven to be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (successful in other resource plays are being used in the early development of new plays; however) Tj ET Q q 0 0 0 rg BT 425.22 410.45 Td (, we can provide no assurance of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (ultimate success of these drilling and completion techniques.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 376.85 Td (In addition, a significant part of our strategy involves increasing our inventory of drilling locations. Such multi-year drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 366.05 Td (inventories can be more susceptible to long-term uncertainties that could materially alter the occurrence or timing of actual drilling. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 355.25 Td (Because of these uncertainties, we do not know if the potential drilling locations we have identified will ever be drilled, although we have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 344.45 Td (the present intent to do so for locations booked as proved undeveloped locations, or if we will be able to produce oil, gas, or NGLs from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 333.65 Td (these potential drilling locations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 310.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 310.85 Td (e may not be able to obtain any options or lease rights in potential drilling locations that we identify) Tj ET Q q 0 0 0 rg BT 470.90 310.85 Td (. Unless production is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (established within the spacing units covering undeveloped acres on which our drilling locations are identified, the leases for such ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (acreage will expire and we will lose our right to develop the related properties. Our total net acreage as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.73 289.25 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.28 289.25 Td (, that is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 278.45 Td (scheduled to expire over the ensuing three years, represents approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.17 278.45 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.71 278.45 Td ( of our total net undeveloped acreage as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 267.65 Td (. ) Tj ET Q q 0 0 0 rg BT 122.05 267.65 Td (Although we have identified numerous potential drilling locations, we may not be able to economically drill for and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 256.85 Td (produce oil, gas, or NGLs from all of them, and our actual drilling activities may materially dif) Tj ET Q q 0 0 0 rg BT 402.49 256.85 Td (fer from those presently identified, which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 246.05 Td (could adversely af) Tj ET Q q 0 0 0 rg BT 108.38 246.05 Td (fect our financial condition, results of operations and operating cash flow) Tj ET Q q 0 0 0 rg BT 395.55 246.05 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 223.25 Td (Part of our strategy involves drilling in existing or emerging resource plays using some of the latest available horizontal drilling and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 212.45 Td (completion techniques. The results of our planned exploratory and delineation drilling in these plays are subject to drilling and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 201.65 Td (completion technique risks, and results may not meet our expectations for reserves or production. ) Tj ET Q q 0 0 0 rg BT 428.86 201.65 Td (As a result, we may incur material ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 190.85 Td (write-downs, and the value of our undeveloped acreage could decline if drilling results are unsuccessful.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 168.05 Td (Many of our operations involve utilizing the latest drilling and completion techniques as developed by us, other operators and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 157.25 Td (our service providers in order to maximize production and ultimate recoveries and therefore generate the highest possible returns. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (Risks we face while drilling include, but are not limited to, landing our well bore outside the desired drilling zone, deviating from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (desired drilling zone while drilling horizontally through the formation, the inability to run our casing the entire length of the well bore, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 124.85 Td (the inability to run tools and recover equipment consistently through the horizontal well bore. Risks we face while completing our wells ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.05 Td (include, but are not limited to, the inability to fracture stimulate the planned number of stages, the inability to run tools and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 103.25 Td (equipment the entire length of the well bore during completion operations, the inability to recover such tools and other equipment, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.45 Td (the inability to successfully clean out the well bore after completion of the final fracture stimulation.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 69.65 Td (Ultimately) Tj ET Q q 0 0 0 rg BT 110.84 69.65 Td (, the success of these drilling and completion techniques can only be evaluated over time as more wells are drilled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 58.85 Td (and production profiles are established over a suf) Tj ET Q q 0 0 0 rg BT 232.46 58.85 Td (ficiently long time period. If our drilling results are less than anticipated or we are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 48.05 Td (unable to execute our drilling program because of capital constraints, lease expirations, limited access to gathering systems and ) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (takeaway capacity) Tj ET Q q 0 0 0 rg BT 108.87 740.45 Td (, and/or prices for oil, gas, and NGLs decline, then the return on our investment for a particular project may not be as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (attractive as we anticipated and we could incur material write-downs of oil and gas properties and the value of our undeveloped ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (acreage could decline in the future.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (Many of our properties are in areas that may have been partially depleted or drained by offset wells and certain of our wells may be ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (adversely affected by actions other operators may take when drilling, completing, or operating wells that they own.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 662.45 Td (Many of our properties are in areas that may have already been partially depleted or drained by earlier of) Tj ET Q q 0 0 0 rg BT 488.58 662.45 Td (fset drilling. ) Tj ET Q q 0 0 0 rg BT 538.93 662.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (owners of leasehold interests adjoining any of our properties could take actions, such as drilling and completing additional wells, which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (could adversely af) Tj ET Q q 0 0 0 rg BT 108.38 640.85 Td (fect our operations. When a new well is completed and produced, the pressure dif) Tj ET Q q 0 0 0 rg BT 435.90 640.85 Td (ferential in the vicinity of the well ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (causes the migration of reservoir fluids toward the new wellbore \(and potentially away from existing wellbores\). ) Tj ET Q q 0 0 0 rg BT 480.71 630.05 Td (As a result, the drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (and production of these potential locations could cause a depletion of our proved reserves and may inhibit our ability to further develop ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (our proved reserves. In addition, completion operations and other activities conducted on adjacent or nearby wells could cause ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (production from our wells to be shut in for indefinite periods of time, result in increased lease operating expenses and adversely af) Tj ET Q q 0 0 0 rg BT 552.63 597.65 Td (fect ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (the production and reserves from our wells after they re-commence production. W) Tj ET Q q 0 0 0 rg BT 363.98 586.85 Td (e have no control over the operations or activities of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (of) Tj ET Q q 0 0 0 rg BT 43.34 576.05 Td (fsetting operators.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (Our commodity derivative contract activities may result in financial losses or may limit the prices we receive for oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 547.03 553.25 Td ( sales.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 530.45 Td (T) Tj ET Q q 0 0 0 rg BT 76.50 530.45 Td (o mitigate a portion of the exposure to potentially adverse market changes in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 452.88 530.45 Td ( prices and the associated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 519.65 Td (impact on cash flows, we have entered into various derivative contracts. Our derivative contracts in place include swap and collar ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 508.85 Td (arrangements for oil and gas, and swap arrangements for NGLs. W) Tj ET Q q 0 0 0 rg BT 306.47 508.85 Td (e have also entered into basis swap arrangements for a portion of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (our expected Midland Basin oil production to reduce volatility associated with location dif) Tj ET Q q 0 0 0 rg BT 387.04 498.05 Td (ferentials between where these volumes are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (sold and NYMEX WTI. ) Tj ET Q q 0 0 0 rg BT 130.53 487.25 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.54 487.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.59 487.25 Td (, we were in a net accrued asset position of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.69 487.25 Td ($158.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.22 487.25 Td ( with respect to our oil, gas, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (and NGL) Tj ET Q q 0 0 0 rg BT 71.69 476.45 Td ( derivative activities. ) Tj ET Q q 0 0 0 rg BT 157.06 476.45 Td (These activities may expose us to the risk of financial loss in certain circumstances, including instances ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 465.65 Td (in which:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 442.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 442.85 Td (our production is less than expected;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 426.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 426.05 Td (one or more counterparties to our commodity derivative contracts default on their contractual obligations; or) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 409.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 409.25 Td (there is a widening of price dif) Tj ET Q q 0 0 0 rg BT 208.90 409.25 Td (ferentials between delivery points for our production and the delivery point assumed in the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 398.45 Td (commodity derivative contract arrangement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 375.65 Td (In addition, commodity derivative contracts may limit the prices we receive for our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 467.33 375.65 Td ( sales if oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 562.54 375.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 364.85 Td (prices rise substantially over the price established by the commodity derivative contract.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 342.05 Td (The inability of customers or co-owners of assets to meet their obligations may adversely affect our financial results.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 319.25 Td (Substantially all of our accounts receivable result from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 358.81 319.25 Td ( sales or joint interest billings to co-owners of oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 308.45 Td (gas properties we operate. ) Tj ET Q q 0 0 0 rg BT 147.40 308.45 Td (This concentration of customers and joint interest owners may impact our overall credit risk because these ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 297.65 Td (entities may be similarly af) Tj ET Q q 0 0 0 rg BT 141.37 297.65 Td (fected by various economic and other market conditions, including declines in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 521.25 297.65 Td ( prices. ) Tj ET Q q 0 0 0 rg BT 555.10 297.65 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 286.85 Td (loss of one or more of these customers could reduce competition for our products and negatively impact the prices of commodities we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 276.05 Td (sell. W) Tj ET Q q 0 0 0 rg BT 65.34 276.05 Td (e do not believe the loss of any single purchaser would materially impact our operating results, as we have numerous options ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 265.25 Td (for purchasers in each of our operating regions for our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 322.83 265.25 Td ( production. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 435.89 265.25 Td (Note 1 – Summary of Significant ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 254.45 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 114.04 254.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.04 254.45 Td (under the heading ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 194.11 254.45 Td (Concentration of Credit Risk and Major Customers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.19 254.45 Td ( in Part II, Item 8 of this report for further ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 243.65 Td (discussion of our concentration of credit risk and major customers. ) Tj ET Q q 0 0 0 rg BT 304.62 243.65 Td (Additionally) Tj ET Q q 0 0 0 rg BT 349.98 243.65 Td (, the inability of our co-owners to pay joint interest ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 232.85 Td (billings could negatively impact our cash flows and financial ability to drill and complete current and future wells.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 210.05 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 210.05 Td (e have entered into firm transportation contracts that require us to pay fixed sums of money to our counterparties regardless of ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 199.25 Td (quantities actually shipped, processed, or gathered. If we are unable to deliver the necessary quantities of oil, gas, NGL, or produced ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 188.45 Td (water to our counterparties, our results of operations, financial position, and liquidity could be adversely affected.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 165.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 165.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 165.65 Td (, we were contractually committed to deliver ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.13 165.65 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 361.14 165.65 Td ( MMBbl of oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.15 165.65 Td (595) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.17 165.65 Td ( Bcf of gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.21 165.65 Td (21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.22 165.65 Td ( MMBbl of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 154.85 Td (produced water) Tj ET Q q 0 0 0 rg BT 97.54 154.85 Td (. ) Tj ET Q q 0 0 0 rg BT 104.88 154.85 Td (These contracts expire at various dates through ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.48 154.85 Td (2027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.50 154.85 Td (. W) Tj ET Q q 0 0 0 rg BT 333.34 154.85 Td (e may enter into additional firm transportation agreements as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 144.05 Td (we expand the development of our resource plays. ) Tj ET Q q 0 0 0 rg BT 242.13 144.05 Td (At the current time, we do not have enough proved developed reserves to of) Tj ET Q q 0 0 0 rg BT 545.15 144.05 Td (fset ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 133.25 Td (these contractual liabilities, but we expect to develop reserves that will meet or exceed the commitments and therefore do not expect ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 122.45 Td (any material shortfalls. In the event we encounter delays in drilling and completing our wells or otherwise due to construction, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 111.65 Td (interruptions of operations, or delays in connecting new volumes to gathering systems or pipelines for an extended period of time, or if ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 100.85 Td (we further limit our capital expenditures due to future commodity price declines or for other reasons, the requirements to pay for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 90.05 Td (quantities not delivered could have a material impact on our results of operations, financial position, and liquidity) Tj ET Q q 0 0 0 rg BT 480.59 90.05 Td (.) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (30) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Future oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 133.89 740.45 Td ( price declines or unsuccessful exploration efforts may result in write-downs of our asset carrying values.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 717.65 Td (e follow the successful ef) Tj ET Q q 0 0 0 rg BT 180.22 717.65 Td (forts method of accounting for our oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 410.35 717.65 Td (All property acquisition costs and costs of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (exploratory and development wells are capitalized when incurred, pending the determination of whether proved reserves have been ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (discovered. If commercial quantities of hydrocarbons are not discovered with an exploratory well, the costs of drilling the well are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (expensed.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 662.45 Td (The capitalized costs of our oil and gas properties, on a depletion pool basis, cannot exceed the estimated undiscounted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (future net cash flows of that depletion pool. If net capitalized costs exceed undiscounted future net cash flows, we generally must write ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (down the costs of each depletion pool to the estimated discounted future net cash flows of that depletion pool. W) Tj ET Q q 0 0 0 rg BT 486.12 640.85 Td (rite downs for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (unproved properties are also evaluated for carrying costs in excess of fair value. ) Tj ET Q q 0 0 0 rg BT 359.50 630.05 Td (This evaluation considers the potential for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (abandonment due to lease expirations, and other inherent acreage risks. For the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.74 619.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.78 619.25 Td (, we incurred ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (abandonment and impairment of unproved properties expense totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.68 608.45 Td ($49.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.21 608.45 Td (. W) Tj ET Q q 0 0 0 rg BT 385.04 608.45 Td (e incurred impairment of proved properties ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (expense and abandonment and impairment of unproved properties expense totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.73 597.65 Td ($3.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 597.65 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.27 597.65 Td ($12.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.79 597.65 Td (, respectively) Tj ET Q q 0 0 0 rg BT 540.65 597.65 Td (, during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 586.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 78.54 586.85 Td ($354.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.07 586.85 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.09 586.85 Td ($80.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.62 586.85 Td (, respectively) Tj ET Q q 0 0 0 rg BT 256.47 586.85 Td (, during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.99 586.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.01 586.85 Td (. If the prices of oil, gas, or NGLs decline, or we have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 144.40 576.05 Td (forts, it could cause additional proved and/or unproved property impairments in the future.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 553.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 553.25 Td (e review the carrying values of our properties for indicators of impairment on a quarterly basis using the prices in ef) Tj ET Q q 0 0 0 rg BT 536.89 553.25 Td (fect as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (the end of each quarter) Tj ET Q q 0 0 0 rg BT 128.57 542.45 Td (. Once incurred, a write-down of oil and gas properties held for use cannot be reversed at a later date, even if ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 98.19 531.65 Td ( prices increase.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 508.85 Td (Lower oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 125.38 508.85 Td ( prices could limit our ability to borrow under our Credit ) Tj ET Q q 0 0 0 rg BT 345.13 508.85 Td (Agreement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 486.05 Td (Our Credit ) Tj ET Q q 0 0 0 rg BT 115.51 486.05 Td (Agreement has a current commitment amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.10 486.05 Td ($1.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.13 486.05 Td (, subject to a borrowing base that the lenders ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 475.25 Td (redetermine semi-annually based on the bank group’) Tj ET Q q 0 0 0 rg BT 245.97 475.25 Td (s assessment of the value of our proved reserves, which in turn is impacted by oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 464.45 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 91.20 464.45 Td ( prices. ) Tj ET Q q 0 0 0 rg BT 125.05 464.45 Td (The borrowing base under our Credit ) Tj ET Q q 0 0 0 rg BT 274.13 464.45 Td (Agreement is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.66 464.45 Td ($1.5 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.69 464.45 Td (, up from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.70 464.45 Td ($925.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.23 464.45 Td ( at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.74 464.45 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.79 464.45 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (The next semi-annual redetermination date is scheduled for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.14 453.65 Td (April 1, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.67 453.65 Td (. W) Tj ET Q q 0 0 0 rg BT 341.50 453.65 Td (e do not expect a material change to the borrowing base ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (or the aggregate lender commitments as a result of this redetermination. Divestitures of additional properties, incurrence of additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (debt, or declines in commodity prices could limit our borrowing base and reduce the amount we can borrow under our Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (Agreement.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 398.45 Td (The amount of our debt may limit our ability to obtain financing for acquisitions, make us more vulnerable to adverse economic ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 387.65 Td (conditions, and make it more difficult for us to make payments on our debt.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 364.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 364.85 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.01 364.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 364.85 Td (, we had the following outstanding long-term debt: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 342.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 342.05 Td ($172.5 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 342.05 Td ( in aggregate principal amount of long-term senior unsecured convertible debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 331.25 Td (1.50%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.52 331.25 Td ( Senior Convertible Notes due ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 238.09 331.25 Td (July 1, 2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.62 331.25 Td ( that we issued on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 361.17 331.25 Td (August 12, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.72 331.25 Td (;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 314.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 314.45 Td ($476.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 314.45 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 314.45 Td (6.125% Senior Notes due 2022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.78 314.45 Td ( that we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 303.65 Td (issued on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.03 303.65 Td (November 17, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.08 303.65 Td (;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 286.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 286.85 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 286.85 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 286.85 Td (5.0% Senior Notes due 2024) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.77 286.85 Td ( that we issued ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 276.05 Td (on May 20, 2013;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 259.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 259.25 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 259.25 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 259.25 Td (5.625% Senior Notes due 2025) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.78 259.25 Td ( that we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 248.45 Td (issued on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.03 248.45 Td (May 21, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.56 248.45 Td (;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 231.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 231.65 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 231.65 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 231.65 Td (6.75% Senior Notes due 2026) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.77 231.65 Td ( that we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 220.85 Td (issued on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.03 220.85 Td (September 12, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.59 220.85 Td (; and,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 204.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 204.05 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 204.05 Td ( of long-term senior unsecured debt outstanding relating to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 204.05 Td (6.625% Senior Notes due 2027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.78 204.05 Td ( that we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 193.25 Td (issued on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 130.53 193.25 Td (August 20, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.08 193.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 170.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 170.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 117.36 170.45 Td (, we had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.88 170.45 Td (no) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.89 170.45 Td ( outstanding borrowings under our Credit ) Tj ET Q q 0 0 0 rg BT 328.99 170.45 Td (Agreement as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.53 170.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.58 170.45 Td (. W) Tj ET Q q 0 0 0 rg BT 492.41 170.45 Td (e had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.43 170.45 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.45 170.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 159.65 Td (outstanding letter of credit in the aggregate amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.14 159.65 Td ($200,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.68 159.65 Td ( \(which reduces the amount available for borrowing under the facility on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 148.85 Td (a dollar-for-dollar basis\), resulting in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.56 148.85 Td ($999.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.09 148.85 Td ( of available borrowing capacity under our secured credit facility) Tj ET Q q 0 0 0 rg BT 489.56 148.85 Td (. Our long-term debt ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.05 Td (represented ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.53 138.05 Td (47 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 129.06 138.05 Td ( of our total book capitalization as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.15 138.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.20 138.05 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 115.25 Td (Our indebtedness could have important consequences for our operations, including:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 92.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 92.45 Td (making it more dif) Tj ET Q q 0 0 0 rg BT 160.86 92.45 Td (ficult for us to obtain additional financing in the future for our operations and potential acquisitions, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 81.65 Td (working capital requirements, capital expenditures, debt service, or other general corporate requirements;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 64.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 64.85 Td (requiring us to dedicate a substantial portion of our cash flows from operations to the repayment of our debt and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 54.05 Td (service of interest costs associated with our debt, rather than to productive investments;) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 740.45 Td (limiting our operating flexibility due to financial and other restrictive covenants, including restrictions on incurring additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 729.65 Td (debt, making acquisitions, and paying dividends;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 712.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 712.85 Td (placing us at a competitive disadvantage compared to our competitors with less debt; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 696.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 696.05 Td (making us more vulnerable in the event of adverse economic or industry conditions or a downturn in our business.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 673.25 Td (If our business does not generate suf) Tj ET Q q 0 0 0 rg BT 219.93 673.25 Td (ficient cash flow from operations or future suf) Tj ET Q q 0 0 0 rg BT 398.85 673.25 Td (ficient borrowings are not available to us ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 662.45 Td (under our Credit ) Tj ET Q q 0 0 0 rg BT 103.04 662.45 Td (Agreement or from other sources, we might not be able to service our debt, issue additional debt, or fund our planned ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (capital expenditures and other liquidity needs. If we are unable to service our debt, due to inadequate liquidity or otherwise, we may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (have to delay or cancel acquisitions, defer capital expenditures, sell equity securities, divest assets, and/or restructure or refinance our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (debt. W) Tj ET Q q 0 0 0 rg BT 69.35 630.05 Td (e might not be able to sell our equity) Tj ET Q q 0 0 0 rg BT 213.27 630.05 Td (, sell our assets, or restructure or refinance our debt on a timely basis or on satisfactory ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (terms or at all. In addition, the terms of our existing or future debt agreements, including our Credit ) Tj ET Q q 0 0 0 rg BT 431.20 619.25 Td (Agreement and any future credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (agreements, may prohibit us from pursuing any of these alternatives. Further) Tj ET Q q 0 0 0 rg BT 343.15 608.45 Td (, changes in the credit ratings of our debt may negatively ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (af) Tj ET Q q 0 0 0 rg BT 43.34 597.65 Td (fect the cost, terms, conditions, and availability of future financing.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 574.85 Td (Our debt agreements, including the Credit ) Tj ET Q q 0 0 0 rg BT 241.10 574.85 Td (Agreement and the indentures governing our Senior Convertible Notes and our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (Senior Notes, permit us to incur additional debt in the future, subject to compliance with restrictive covenants under those agreements. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (In addition, entities we may acquire in the future could have significant amounts of debt outstanding that we could be required to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (assume, and in some cases accelerate repayment thereof, in connection with the acquisition, or we may incur our own significant ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (indebtedness to consummate an acquisition.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 508.85 Td (As discussed above, our Credit ) Tj ET Q q 0 0 0 rg BT 198.57 508.85 Td (Agreement is subject to periodic borrowing base redeterminations. W) Tj ET Q q 0 0 0 rg BT 476.04 508.85 Td (e could be forced to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (repay a portion of our bank borrowings in the event of a downward redetermination of our borrowing base, and we may not have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (suf) Tj ET Q q 0 0 0 rg BT 47.84 487.25 Td (ficient funds to make such repayment at that time. If we do not have suf) Tj ET Q q 0 0 0 rg BT 334.33 487.25 Td (ficient funds and are otherwise unable to negotiate renewals ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (of our borrowing base or arrange new financing, we may be forced to sell significant assets.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (The agreements governing our debt arrangements contain various covenants that limit our discretion in the operation of our business, ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (could prohibit us from engaging in transactions we believe to be beneficial, and could lead to the accelerated repayment of our debt.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 420.05 Td (Our debt agreements, including the Credit ) Tj ET Q q 0 0 0 rg BT 241.10 420.05 Td (Agreement and the indentures governing our Senior Convertible Notes and our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 409.25 Td (Senior Notes, contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests. Our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 398.45 Td (ability to borrow under our Credit ) Tj ET Q q 0 0 0 rg BT 168.57 398.45 Td (Agreement is subject to compliance with certain financial covenants. Financial covenants under the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 387.65 Td (Credit ) Tj ET Q q 0 0 0 rg BT 62.01 387.65 Td (Agreement require, that the Company’) Tj ET Q q 0 0 0 rg BT 214.43 387.65 Td (s \(a\) total funded debt, as defined in the Credit ) Tj ET Q q 0 0 0 rg BT 401.55 387.65 Td (Agreement, to adjusted EBITDAX ratio for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 376.85 Td (the most recently ended four consecutive fiscal quarters \(excluding the first three quarters which will use annualized adjusted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 366.05 Td (EBITDAX\), cannot be greater than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.57 366.05 Td (4.25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.09 366.05 Td ( to 1.00 beginning with the quarter ending December 31, 2018, through and including the fiscal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 355.25 Td (quarter ending December 31, 2019, and for each quarter ending thereafter) Tj ET Q q 0 0 0 rg BT 331.70 355.25 Td (, the ratio cannot be greater than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.79 355.25 Td (4.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.30 355.25 Td ( to 1.00; and \(b\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 344.45 Td (adjusted current ratio cannot be less than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.60 344.45 Td (1.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.11 344.45 Td ( to 1.0 as of the last day of any fiscal quarter) Tj ET Q q 0 0 0 rg BT 392.22 344.45 Td (. Our Credit ) Tj ET Q q 0 0 0 rg BT 443.23 344.45 Td (Agreement also requires us to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 333.65 Td (comply with certain additional financial covenants, including a requirement that we limit our annual cash dividends to no more than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 322.85 Td ($50.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.53 322.85 Td (. ) Tj ET Q q 0 0 0 rg BT 93.87 322.85 Td (These restrictions on our ability to operate our business could seriously harm our business by) Tj ET Q q 0 0 0 rg BT 464.88 322.85 Td (, among other things, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 312.05 Td (limiting our ability to take advantage of financings, mergers and acquisitions, and other corporate opportunities. ) Tj ET Q q 0 0 0 rg BT 482.09 312.05 Td (The Company was in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 301.25 Td (compliance with all financial and non-financial covenants as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.15 301.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.19 301.25 Td (, and through the filing of this report.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 278.45 Td (The respective indentures governing the Senior Notes and Senior Convertible Notes also contain covenants that, among other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.65 Td (things, limit our ability and the ability of our subsidiaries to:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 244.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 244.85 Td (incur additional debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 228.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 228.05 Td (make certain dividends or pay dividends or distributions on our capital stock or purchase, redeem, or retire common stock;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 211.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 211.25 Td (sell assets, including common stock of our subsidiaries;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 194.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 194.45 Td (restrict dividends or other payments of our subsidiaries;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 177.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 177.65 Td (create liens that secure debt;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 160.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 160.85 Td (enter into transactions with af) Tj ET Q q 0 0 0 rg BT 206.90 160.85 Td (filiates; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 144.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 144.05 Td (merge or consolidate with another company) Tj ET Q q 0 0 0 rg BT 263.93 144.05 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 121.25 Td (Our failure to comply with these covenants could result in an event of default that, if not cured or waived, could result in the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 110.45 Td (acceleration of all or a portion of our indebtedness. W) Tj ET Q q 0 0 0 rg BT 251.46 110.45 Td (e do not have suf) Tj ET Q q 0 0 0 rg BT 320.35 110.45 Td (ficient working capital to satisfy our debt obligations in the event ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 99.65 Td (of an acceleration of all or a significant portion of our outstanding indebtedness.) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (32) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Our increasing dependence on digital technologies puts us at risk for a cyber incident that could result in information theft, data ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (corruption, operational disruptions or financial loss. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 706.85 Td (e are subject to cybersecurity risks. ) Tj ET Q q 0 0 0 rg BT 225.72 706.85 Td (The oil and gas industry is increasingly dependent on digital technology in all aspects of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (our business. W) Tj ET Q q 0 0 0 rg BT 102.86 696.05 Td (e use digital technology to conduct certain of our drilling development, production and gathering activities, manage ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (drilling rigs, gather and interpret seismic data, conduct reservoir modeling, record financial and operating data, and maintain employee ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (and other databases. Our service providers, including those who gather) Tj ET Q q 0 0 0 rg BT 322.67 674.45 Td (, process and market our oil, gas and NGLs, are also ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (increasingly reliant on digital technology) Tj ET Q q 0 0 0 rg BT 194.43 663.65 Td (. Our and their reliance on this technology increasingly puts us at risk for technology system ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (failures, data or network disruptions, cyberattacks and other breaches in cybersecurity) Tj ET Q q 0 0 0 rg BT 378.00 652.85 Td (. Power failures, telecommunication or other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (system failures due to hardware or software malfunctions, computer viruses, vandalism, terrorism, natural disasters, fire, flood, human ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (error or other means could significantly impair our ability to conduct our business.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 608.45 Td (Cybersecurity attacks in particular are evolving and include, but are not limited to, malicious software, attempts to gain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (unauthorized access to data, and other electronic security breaches that could lead to disruptions in critical systems, unauthorized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (release of confidential or otherwise protected information, and corruption of data. Deliberate attacks on, or security breaches in our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (systems, infrastructure, the systems and infrastructure of third-parties, or cloud-based applications could lead to disclosure of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (confidential information, a corruption or loss of our proprietary data, delays in production or exploration activities, dif) Tj ET Q q 0 0 0 rg BT 494.58 565.25 Td (ficulty in completing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (or settling transactions, challenges in maintaining our books and records, environmental damage, communication or other operational ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 543.65 Td (disruptions, and liability to third parties. Our insurance may not provide adequate protection from these risks. ) Tj ET Q q 0 0 0 rg BT 474.22 543.65 Td (Any such events could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 532.85 Td (damage our reputation and lead to financial losses from remedial actions, loss of business or potential liability) Tj ET Q q 0 0 0 rg BT 470.57 532.85 Td (. ) Tj ET Q q 0 0 0 rg BT 477.58 532.85 Td (As these cyber risks ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 522.05 Td (continue to evolve and our dependence on digital technologies grows, we may be required to expend significant additional resources to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 511.25 Td (continue to modify or enhance our protective measures and remediate cyber vulnerabilities.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 488.45 Td (Our business could be negatively impacted by security threats, including cybersecurity threats, terrorism, armed conflict, and other ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 477.65 Td (disruptions.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 454.85 Td (As an oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 166.72 454.85 Td ( producer) Tj ET Q q 0 0 0 rg BT 204.24 454.85 Td (, we face various security threats, including cybersecurity threats to gain unauthorized access ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 444.05 Td (to sensitive information or to render data or systems unusable; threats to the safety of our employees; threats to the security of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 433.25 Td (facilities and infrastructure or third-party facilities and infrastructure, such as processing plants and pipelines; and threats from terrorist ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 422.45 Td (acts. ) Tj ET Q q 0 0 0 rg BT 59.51 422.45 Td (Although we utilize various procedures and controls to monitor these threats and mitigate our exposure to such threats, there can ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 411.65 Td (be no assurance that these procedures and controls will be suf) Tj ET Q q 0 0 0 rg BT 285.49 411.65 Td (ficient in preventing security threats from materializing. If any of these ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 400.85 Td (events were to materialize, they could lead to losses of sensitive information, critical infrastructure, personnel, or capabilities essential ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 390.05 Td (to our operations and could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 253.47 390.05 Td (fect on our reputation, financial position, results of operations, or cash flows.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 367.25 Td (The threat of terrorism and the impact of military and other actions have caused instability in world financial markets and could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 356.45 Td (lead to increased volatility in prices for oil, gas, and NGLs, all of which could adversely af) Tj ET Q q 0 0 0 rg BT 389.01 356.45 Td (fect the markets for our production. Energy ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 345.65 Td (assets might be specific targets of terrorist attacks. While we currently maintain some insurance that provides coverage against ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 334.85 Td (terrorist attacks, such insurance has become increasingly expensive and dif) Tj ET Q q 0 0 0 rg BT 336.99 334.85 Td (ficult to obtain. ) Tj ET Q q 0 0 0 rg BT 399.53 334.85 Td (As a result, insurance providers may not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 324.05 Td (continue to of) Tj ET Q q 0 0 0 rg BT 89.88 324.05 Td (fer this coverage to us on terms we consider reasonable, or at all. In addition, this insurance may not cover all of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.25 Td (losses for a terrorist attack. ) Tj ET Q q 0 0 0 rg BT 148.87 313.25 Td (These developments have subjected our operations to increased risk and, depending on their occurrence ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.45 Td (and ultimate magnitude, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 264.47 302.45 Td (fect on our business, financial condition, or results of operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 279.65 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 279.65 Td (e are subject to operating and environmental risks and hazards that could result in substantial losses or liabilities that may not be fully ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td (insured.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 246.05 Td (Oil and gas operations are subject to many risks, including human error and accidents, that could cause personal injury) Tj ET Q q 0 0 0 rg BT 545.09 246.05 Td (, death, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 235.25 Td (property damage, well blowouts, craterings, explosions, uncontrollable flows of oil, gas and NGLs, or well fluids, releases or spills of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 224.45 Td (completion fluids, spills or releases from facilities and equipment used to deliver or store these materials, spills or releases of brine or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 213.65 Td (other produced or flowback water) Tj ET Q q 0 0 0 rg BT 168.57 213.65 Td (, subsurface conditions that prevent us from stimulating the planned number of completion stages, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td (accessing the entirety of the wellbore with our tools during completion, or removing materials from the wellbore to allow production to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (begin, fires, adverse weather such as hurricanes or tornadoes, freezing conditions, floods, droughts, formations with abnormal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.25 Td (pressures, pipeline ruptures or spills, pollution, seismic events, releases of toxic gas such as hydrogen sulfide, and other environmental ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 170.45 Td (risks and hazards. If any of these types of events occurs, we could sustain substantial losses.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 147.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 147.65 Td (Furthermore, if we experience any of the problems with well stimulation and completion activities referenced above, our ability ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 136.85 Td (to explore for and produce oil, gas, or NGLs may be adversely af) Tj ET Q q 0 0 0 rg BT 293.47 136.85 Td (fected. W) Tj ET Q q 0 0 0 rg BT 333.82 136.85 Td (e could incur substantial losses or otherwise fail to realize ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 126.05 Td (reserves in particular formations as a result of the need to shut down, abandon, or relocate drilling operations, the need to modify drill ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 115.25 Td (sites to lessen the risk of spills or releases, the need to investigate and/or remediate any spills, releases or ground water contamination ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 104.45 Td (that might have occurred, and the need to suspend our operations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 81.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 81.65 Td (There is inherent risk of incurring significant environmental costs and liabilities in our operations due to our current and past ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 70.85 Td (generation, handling, and disposal of materials, including produced water) Tj ET Q q 0 0 0 rg BT 326.69 70.85 Td (, solid and hazardous wastes, and petroleum hydrocarbons. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 60.05 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 60.05 Td (e may incur joint and several, and/or strict liability under applicable United States federal and state environmental laws in connection ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 49.25 Td (with releases of petroleum hydrocarbons and other hazardous substances at, on, under or from our leased or owned properties, some ) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (of which have been used for oil and gas exploration and production activities for a number of years, often by third-parties not under our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (control. For our outside-operated properties, we are dependent on the operator for operational and regulatory compliance and could be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (subject to liabilities in the event of non-compliance. ) Tj ET Q q 0 0 0 rg BT 243.45 718.85 Td (These properties and the wastes disposed thereon or therefrom could be subject to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (stringent and costly investigatory or remedial requirements under applicable laws, some of which are strict liability laws without regard ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (to fault or the legality of the original conduct, including the CERCLA) Tj ET Q q 0 0 0 rg BT 303.66 697.25 Td ( or the Superfund law) Tj ET Q q 0 0 0 rg BT 388.71 697.25 Td (, the RCRA, the Clean W) Tj ET Q q 0 0 0 rg BT 488.42 697.25 Td (ater ) Tj ET Q q 0 0 0 rg BT 505.93 697.25 Td (Act, the CAA, the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 686.45 Td (OP) Tj ET Q q 0 0 0 rg BT 48.34 686.45 Td (A, and analogous state laws. Under various implementing regulations, we could be required to remove or remediate previously ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 675.65 Td (disposed wastes \(including wastes disposed of or released by prior owners or operators\) or property contamination \(including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 664.85 Td (groundwater contamination\), to perform natural resource mitigation or restoration practices, or to perform remedial plugging or closure ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 654.05 Td (operations to prevent future contamination. In addition, it is not uncommon for neighboring landowners and other third-parties to file ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 643.25 Td (claims for personal injury or property damage, including induced seismicity damage, allegedly caused by the release of petroleum ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 632.45 Td (hydrocarbons or other hazardous substances into the environment. ) Tj ET Q q 0 0 0 rg BT 307.66 632.45 Td (As a result, we may incur substantial liabilities to third-parties or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 621.65 Td (governmental entities, which could reduce or eliminate funds available for exploration, development, or acquisitions, or cause us to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 610.85 Td (incur losses.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 588.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 588.05 Td (e maintain insurance against some, but not all, of these potential risks and losses. W) Tj ET Q q 0 0 0 rg BT 419.35 588.05 Td (e have significant but limited coverage ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 577.25 Td (for sudden environmental damage. W) Tj ET Q q 0 0 0 rg BT 188.42 577.25 Td (e do not believe that insurance coverage for the full potential liability that could be caused by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 566.45 Td (environmental damage that occurs gradually over time is appropriate for us at this time given the nature of our operations and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 555.65 Td (nature and cost of such coverage. Further) Tj ET Q q 0 0 0 rg BT 205.10 555.65 Td (, we may elect not to obtain insurance coverage under circumstances where we believe that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 544.85 Td (the cost of available insurance is excessive relative to the risks to which we are subject. ) Tj ET Q q 0 0 0 rg BT 388.67 544.85 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 434.52 544.85 Td (, we may be subject to liability or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 534.05 Td (may lose substantial assets in the event of environmental or other damages. If a significant accident or other event occurs and is not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 523.25 Td (fully covered by insurance, we could suf) Tj ET Q q 0 0 0 rg BT 194.92 523.25 Td (fer a material loss.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 500.45 Td (Our operations are subject to complex laws and regulations, including environmental regulations that result in substantial costs and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 489.65 Td (other risks.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 466.85 Td (Federal, state, and local authorities extensively regulate the oil and gas industry) Tj ET Q q 0 0 0 rg BT 388.52 466.85 Td (. Legislation and regulations af) Tj ET Q q 0 0 0 rg BT 512.94 466.85 Td (fecting the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 456.05 Td (industry are under constant review for amendment or expansion, raising the possibility of changes that may become more stringent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.25 Td (and, as a result, may af) Tj ET Q q 0 0 0 rg BT 129.38 445.25 Td (fect, among other things, the pricing, or marketing of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 409.20 445.25 Td ( production. Non-compliance with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 434.45 Td (statutes and regulations and more vigorous enforcement of such statutes and regulations by regulatory agencies may lead to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 423.65 Td (substantial administrative, civil, and criminal penalties, including the assessment of natural resource damages, the imposition of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 412.85 Td (significant investigatory and remedial obligations and may also result in the suspension or termination of our operations. ) Tj ET Q q 0 0 0 rg BT 517.10 412.85 Td (The overall ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 402.05 Td (regulatory burden on the industry increases the cost to place, design, drill, complete, install, operate, and abandon wells and related ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 391.25 Td (facilities and, in turn, decreases profitability) Tj ET Q q 0 0 0 rg BT 206.92 391.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 368.45 Td (Governmental authorities regulate various aspects of drilling for and the production of oil, gas, and NGLs, including the permit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 357.65 Td (and bonding requirements of drilling wells, the spacing of wells, the unitization or pooling of interests in oil and gas properties, rights-of-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 346.85 Td (way and easements, disposal of produced water) Tj ET Q q 0 0 0 rg BT 228.12 346.85 Td (, environmental matters, occupational health and safety) Tj ET Q q 0 0 0 rg BT 448.08 346.85 Td (, the sharing of markets, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 336.05 Td (production limitations, plugging, abandonment, restoration standards, and oil and gas operations. Public interest in environmental ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 325.25 Td (protection has increased in recent years, and environmental organizations have opposed, with some success, certain projects. Under ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 314.45 Td (certain circumstances, regulatory authorities may deny a proposed permit or right-of-way grant or impose conditions of approval to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 303.65 Td (mitigate potential environmental impacts, which could, in either case, negatively af) Tj ET Q q 0 0 0 rg BT 362.51 303.65 Td (fect our ability to explore or develop certain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 292.85 Td (properties. Federal authorities also may require any of our ongoing or planned operations on federal leases to be delayed, suspended, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 282.05 Td (or terminated. ) Tj ET Q q 0 0 0 rg BT 96.03 282.05 Td (Any such delay) Tj ET Q q 0 0 0 rg BT 156.40 282.05 Td (, suspension, or termination could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 405.87 282.05 Td (fect on our operations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 259.25 Td (Our operations are also subject to complex and constantly changing environmental laws and regulations adopted by federal, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 248.45 Td (state, and local governmental authorities in jurisdictions where we are engaged in exploration or production operations. New laws or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 237.65 Td (regulations, or changes to current requirements, including the designation of previously unprotected wildlife or plant species as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 226.85 Td (threatened or endangered in areas we operate in, could result in material costs or claims with respect to properties we own or have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 216.05 Td (owned. W) Tj ET Q q 0 0 0 rg BT 78.35 216.05 Td (e will continue to be subject to uncertainty associated with new regulatory interpretations and inconsistent interpretations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 205.25 Td (between state and federal agencies. Under existing or future environmental laws and regulations, we could incur significant liability) Tj ET Q q 0 0 0 rg BT 556.62 205.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 194.45 Td (including joint and several, strict liability under federal, state, and local environmental laws for emissions and for discharges of oil, gas, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 183.65 Td (and NGLs or other pollutants into the air) Tj ET Q q 0 0 0 rg BT 195.10 183.65 Td (, soil, surface water) Tj ET Q q 0 0 0 rg BT 272.13 183.65 Td (, or groundwater) Tj ET Q q 0 0 0 rg BT 337.17 183.65 Td (. W) Tj ET Q q 0 0 0 rg BT 353.00 183.65 Td (e could be required to spend substantial amounts on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 172.85 Td (investigations, litigation, and remediation for these emissions and discharges and other compliance issues. ) Tj ET Q q 0 0 0 rg BT 465.24 172.85 Td (Any unpermitted release of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 162.05 Td (petroleum or other pollutants from our operations could result not only in cleanup costs, but also natural resources, real or personal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (property and other damages and civil and criminal liabilities. ) Tj ET Q q 0 0 0 rg BT 278.96 151.25 Td (The listing of additional wildlife or plant species as federally endangered or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (threatened could result in limitations on exploration and production activities in certain locations. Existing environmental laws or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 129.65 Td (regulations, as currently interpreted or enforced, or as they may be interpreted, enforced, or altered in the future, may have a materially ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 118.85 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 77.86 118.85 Td (fect on us.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 96.05 Td (The impact of extreme weather conditions and lease stipulations adversely affect our ability to conduct drilling activities in some of the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 85.25 Td (areas where we operate.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 62.45 Td (Our operations in our Permian and South ) Tj ET Q q 0 0 0 rg BT 238.43 62.45 Td (T) Tj ET Q q 0 0 0 rg BT 242.93 62.45 Td (exas & Gulf Coast regions are adversely af) Tj ET Q q 0 0 0 rg BT 413.85 62.45 Td (fected by the impact of extreme weather ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 51.65 Td (conditions and lease stipulations designed to protect various wildlife or plant species. In certain areas, drilling and other oil and gas ) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (activities can only be conducted during limited times of the year) Tj ET Q q 0 0 0 rg BT 287.64 740.45 Td (. ) Tj ET Q q 0 0 0 rg BT 294.97 740.45 Td (This limits our ability to operate in those areas and can intensify ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (competition during those times for drilling rigs, oil field equipment, services, supplies and qualified personnel, which may lead to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (periodic shortages. Wildlife seasonal restrictions may limit access to federal leases or across federal lands. ) Tj ET Q q 0 0 0 rg BT 468.52 718.85 Td (These constraints and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (resulting shortages or high costs could delay our operations and materially increase our operating and capital costs.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (Proposed federal and state legislative and regulatory initiatives relating to hydraulic fracturing, air quality) Tj ET Q q 0 0 0 rg BT 449.06 685.25 Td (, and greenhouse gas ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (emissions could result in increased costs and additional operating restrictions or delays) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 382.68 674.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 651.65 Td (Hydraulic fracturing is a common practice in the oil and gas industry used to stimulate the production of oil, gas, and NGLs ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (from dense subsurface rock formations. W) Tj ET Q q 0 0 0 rg BT 207.40 640.85 Td (e routinely apply hydraulic fracturing techniques to many of our oil and gas properties, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (including our unconventional resource plays within our Permian and South ) Tj ET Q q 0 0 0 rg BT 334.02 630.05 Td (T) Tj ET Q q 0 0 0 rg BT 338.52 630.05 Td (exas & Gulf Coast regions. Hydraulic fracturing involves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (injecting water) Tj ET Q q 0 0 0 rg BT 93.03 619.25 Td (, sand, and certain chemicals under pressure to fracture the hydrocarbon-bearing rock formation to allow the flow of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (hydrocarbons into the wellbore. ) Tj ET Q q 0 0 0 rg BT 165.91 608.45 Td (The process is typically regulated by state oil and gas commissions. However) Tj ET Q q 0 0 0 rg BT 476.05 608.45 Td (, the EP) Tj ET Q q 0 0 0 rg BT 507.40 608.45 Td (A) Tj ET Q q 0 0 0 rg BT 512.91 608.45 Td ( and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (federal agencies have asserted federal regulatory authority over certain aspects of hydraulic fracturing activities, as outlined below) Tj ET Q q 0 0 0 rg BT 553.28 597.65 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 574.85 Td (The EP) Tj ET Q q 0 0 0 rg BT 101.35 574.85 Td (A) Tj ET Q q 0 0 0 rg BT 106.85 574.85 Td ( has authority to regulate underground injections that contain diesel in the fluid system under the Safe Drinking W) Tj ET Q q 0 0 0 rg BT 556.78 574.85 Td (ater ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (Act. ) Tj ET Q q 0 0 0 rg BT 56.34 564.05 Td (The EP) Tj ET Q q 0 0 0 rg BT 85.69 564.05 Td (A) Tj ET Q q 0 0 0 rg BT 91.20 564.05 Td ( has published an interpretive memorandum and permitting guidance related to regulation of fracturing fluids using this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (regulatory authority) Tj ET Q q 0 0 0 rg BT 112.37 553.25 Td (. In June 2016, the EP) Tj ET Q q 0 0 0 rg BT 203.27 553.25 Td (A) Tj ET Q q 0 0 0 rg BT 208.78 553.25 Td ( issued regulations under the Federal Clean W) Tj ET Q q 0 0 0 rg BT 394.04 553.25 Td (ater ) Tj ET Q q 0 0 0 rg BT 411.56 553.25 Td (Act establishing federal pre-treatment ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (standards for wastewater generated by unconventional oil and gas operations during the hydraulic fracturing process. Under a recent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (settlement, the EP) Tj ET Q q 0 0 0 rg BT 108.87 531.65 Td (A) Tj ET Q q 0 0 0 rg BT 114.38 531.65 Td ( will decide by March 2019 whether to initiate rulemaking governing the disposal of wastewater from oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (development. If the EP) Tj ET Q q 0 0 0 rg BT 128.89 520.85 Td (A) Tj ET Q q 0 0 0 rg BT 134.39 520.85 Td ( implements further regulations of hydraulic fracturing, we may incur additional costs to comply with such ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (requirements that may be significant in nature, experience delays or curtailment in the pursuit of exploration, development, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.25 Td (production activities, and could even be prohibited from drilling and/or completing certain wells.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 476.45 Td (Certain states, including ) Tj ET Q q 0 0 0 rg BT 170.39 476.45 Td (T) Tj ET Q q 0 0 0 rg BT 174.89 476.45 Td (exas, have adopted, and other states are considering adopting, regulations that could impose more ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 465.65 Td (stringent permitting, public disclosure, waste disposal, and well construction requirements on hydraulic fracturing operations or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 454.85 Td (otherwise seek to ban fracturing activities altogether) Tj ET Q q 0 0 0 rg BT 242.61 454.85 Td (. In addition to state laws, local land use restrictions, such as city ordinances, may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 444.05 Td (restrict, or prohibit the performance of drilling in general and/or hydraulic fracturing in particular) Tj ET Q q 0 0 0 rg BT 411.68 444.05 Td (. Recently) Tj ET Q q 0 0 0 rg BT 453.53 444.05 Td (, municipalities have passed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 433.25 Td (or proposed zoning ordinances that ban or strictly regulate hydraulic fracturing within city boundaries, setting the stage for challenges ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 422.45 Td (by state regulators and third-parties. Similar events and processes are playing out in several cities, counties, and townships across the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 411.65 Td (United States. In the event that state, local, or municipal legal restrictions are adopted in areas where we are currently conducting, or in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 400.85 Td (the future plan to conduct, operations, we may incur additional costs to comply with such requirements that may be significant in nature, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 390.05 Td (experience delays or curtailment in the pursuit of exploration, development, or production activities, and could even be prohibited from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 379.25 Td (drilling and/or completing certain wells.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 356.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 356.45 Td (In the recent past, several federal governmental agencies were actively involved in studies or reviews that focus on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 345.65 Td (environmental aspects and impacts of hydraulic fracturing practices. For example, in December 2016, the EP) Tj ET Q q 0 0 0 rg BT 471.54 345.65 Td (A) Tj ET Q q 0 0 0 rg BT 477.05 345.65 Td ( issued a final ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 334.85 Td (assessment of potential impacts to drinking water resources from hydraulic fracturing. On March 28, 2017, President ) Tj ET Q q 0 0 0 rg BT 503.55 334.85 Td (T) Tj ET Q q 0 0 0 rg BT 508.72 334.85 Td (rump issued ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 324.05 Td (Executive Order 13783 entitled “Promoting Energy Independence and Economic Growth” \(“Executive Order 13783”\). Executive Order ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.25 Td (13783 directed executive departments and agencies to review regulations that potentially burden the development or use of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.45 Td (domestically produced energy resources and, as appropriate, suspend, revise, or rescind those that unduly burden domestic energy ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 291.65 Td (resources development.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 268.85 Td (On March 26, 2015, the BLM published a final rule requiring, among other things, disclosure of chemicals used in hydraulic ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 258.05 Td (fracturing on federal and tribal lands, including private surface lands with underlying federal minerals. ) Tj ET Q q 0 0 0 rg BT 442.06 258.05 Td (The rule was never implemented ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 247.25 Td (due to court challenges. On December 29, 2017, the BLM rescinded the rule. W) Tj ET Q q 0 0 0 rg BT 358.51 247.25 Td (e will continue to be subject to uncertainty associated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 236.45 Td (with new regulatory suspensions, revisions or rescissions and inconsistent state and federal regulatory mandates that could adversely ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (af) Tj ET Q q 0 0 0 rg BT 43.34 225.65 Td (fect our production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 202.85 Td (Further) Tj ET Q q 0 0 0 rg BT 100.51 202.85 Td (, as to air quality and greenhouse gas \(“GHG”\) regulation of oil and gas sources, the overall trend has been toward ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (increased regulation and requirements for reduced emissions. ) Tj ET Q q 0 0 0 rg BT 287.47 192.05 Td (The ) Tj ET Q q 0 0 0 rg BT 305.32 192.05 Td (T) Tj ET Q q 0 0 0 rg BT 310.48 192.05 Td (rump administration has taken steps toward rescinding or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.25 Td (reviewing many of those regulations, but any deregulation will likely face immediate judicial challenges. ) Tj ET Q q 0 0 0 rg BT 450.06 181.25 Td (The Obama administration took ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 170.45 Td (several actions to regulate air quality and GHGs, many of which remain in ef) Tj ET Q q 0 0 0 rg BT 338.98 170.45 Td (fect. For example, on ) Tj ET Q q 0 0 0 rg BT 428.02 170.45 Td (August 16, 2012, the EP) Tj ET Q q 0 0 0 rg BT 524.93 170.45 Td (A) Tj ET Q q 0 0 0 rg BT 530.43 170.45 Td ( issued ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 159.65 Td (final rules subjecting all new and modified oil and gas operations \(production, processing, transmission, storage, and distribution\) to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 148.85 Td (regulation under the New Source Performance Standards \(“NSPS”\) and all existing and new operations to the National Emission ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.05 Td (Standards for Hazardous ) Tj ET Q q 0 0 0 rg BT 138.06 138.05 Td (Air Pollutants \(“NESHAP”\) programs. ) Tj ET Q q 0 0 0 rg BT 290.43 138.05 Td (The EP) Tj ET Q q 0 0 0 rg BT 319.78 138.05 Td (A) Tj ET Q q 0 0 0 rg BT 325.29 138.05 Td ( rules also include NSPS standards for completions of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 127.25 Td (hydraulically fractured gas wells. ) Tj ET Q q 0 0 0 rg BT 170.39 127.25 Td (These standards require the use of reduced emission completion \(“REC”\) techniques developed in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 116.45 Td (the EP) Tj ET Q q 0 0 0 rg BT 62.35 116.45 Td (A) Tj ET Q q 0 0 0 rg BT 67.68 116.45 Td (’) Tj ET Q q 0 0 0 rg BT 69.52 116.45 Td (s Natural Gas ST) Tj ET Q q 0 0 0 rg BT 137.87 116.45 Td (AR program along with the pit flaring of gas not sent to the gathering line beginning in January 2015. ) Tj ET Q q 0 0 0 rg BT 541.97 116.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 105.65 Td (standards are applicable to newly drilled and fractured wells as well as existing wells that are refractured. Further) Tj ET Q q 0 0 0 rg BT 486.72 105.65 Td (, the regulations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 94.85 Td (under NESHAP) Tj ET Q q 0 0 0 rg BT 98.37 94.85 Td ( include maximum achievable control technology \(“MACT”\) standards for those glycol dehydrators and certain storage ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 84.05 Td (vessels at major sources of hazardous air pollutants not previously subject to MACT) Tj ET Q q 0 0 0 rg BT 369.99 84.05 Td ( standards. ) Tj ET Q q 0 0 0 rg BT 419.35 84.05 Td (These rules require additional control ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 73.25 Td (equipment, changes to procedure, and extensive monitoring and reporting. In September 2013 and December 2014, the EP) Tj ET Q q 0 0 0 rg BT 530.15 73.25 Td (A) Tj ET Q q 0 0 0 rg BT 535.65 73.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 62.45 Td (published technical fixes to the 2012 NSPS, including standards for storage tanks subject to the NSPS. ) Tj ET Q q 0 0 0 rg BT 450.58 62.45 Td (The amendments clarified ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 51.65 Td (stages for flowback and the point at which green completion equipment is required and updated requirements for storage tanks and ) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (leak detection requirements for processing plants. ) Tj ET Q q 0 0 0 rg BT 239.11 740.45 Td (As part of the EP) Tj ET Q q 0 0 0 rg BT 306.48 740.45 Td (A) Tj ET Q q 0 0 0 rg BT 311.81 740.45 Td (’) Tj ET Q q 0 0 0 rg BT 313.65 740.45 Td (s strategy during the Obama administration to reduce methane ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (and ozone-forming volatile organic compound \(“VOC”\) emissions from the oil and gas industry) Tj ET Q q 0 0 0 rg BT 409.50 729.65 Td (, on May 12, 2016, the EP) Tj ET Q q 0 0 0 rg BT 512.90 729.65 Td (A) Tj ET Q q 0 0 0 rg BT 518.41 729.65 Td ( issued final ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (regulations that amend and expand the 2012 regulations. ) Tj ET Q q 0 0 0 rg BT 268.51 718.85 Td (The 2016 NSPS requires reduction of greenhouse gases in the form of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (methane and VOCs from certain activities in oil and gas production, processing, transmission and storage and applies to facilities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (constructed, modified, or reconstructed after September 18, 2015. ) Tj ET Q q 0 0 0 rg BT 303.48 697.25 Td (The final regulation requires, among other things, GHG and VOC ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 686.45 Td (standards for certain equipment, such as centrifugal compressors and reciprocating compressors; semi-annual leak detection and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 675.65 Td (repair for well sites and quarterly for boosting and garnering compressor stations and natural gas transmission compressor stations; ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 664.85 Td (control requirements and emission limits for pneumatic pumps; and additional requirements for control of GHGs and VOCs from well ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 654.05 Td (completions. Both the 2012 and 2016 rules are the subjects of Petitions for Review before the U.S. Circuit Court of ) Tj ET Q q 0 0 0 rg BT 495.25 654.05 Td (Appeals for the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 643.25 Td (District of Columbia, though the litigation of both rules has been stayed. In June 2017, the EP) Tj ET Q q 0 0 0 rg BT 408.56 643.25 Td (A) Tj ET Q q 0 0 0 rg BT 414.07 643.25 Td ( proposed a 2-year stay of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 632.45 Td (compliance requirements in the 2016 NSPS. In a related action in March 2017, the EP) Tj ET Q q 0 0 0 rg BT 380.53 632.45 Td (A) Tj ET Q q 0 0 0 rg BT 386.03 632.45 Td ( withdrew the final information request it had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 621.65 Td (issued in 2016 as part of an ef) Tj ET Q q 0 0 0 rg BT 156.42 621.65 Td (fort to develop standards under the CAA) Tj ET Q q 0 0 0 rg BT 316.52 621.65 Td ( NSPS provisions for methane and other emissions from existing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 610.85 Td (sources in the oil and natural gas industry) Tj ET Q q 0 0 0 rg BT 201.43 610.85 Td (. In September 2018, the EP) Tj ET Q q 0 0 0 rg BT 316.83 610.85 Td (A) Tj ET Q q 0 0 0 rg BT 322.34 610.85 Td ( proposed changes to the 2016 NSPS amending specific ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 600.05 Td (provisions related to, among other things, fugitive emissions requirements. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 577.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 577.25 Td (In October 2015, the EP) Tj ET Q q 0 0 0 rg BT 167.89 577.25 Td (A) Tj ET Q q 0 0 0 rg BT 173.40 577.25 Td ( revised and lowered the ambient air quality standard for ozone in the U.S. under the CAA, from 75 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 566.45 Td (parts per billion to 70 parts per billion, which is likely to result in more, and expanded, ozone non-attainment areas, which in turn will ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 555.65 Td (require states to adopt implementation plans to reduce emissions of ozone-forming pollutants, like VOCs and nitrogen oxides, that are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 544.85 Td (emitted from, among others, the oil and gas industry) Tj ET Q q 0 0 0 rg BT 242.94 544.85 Td (. ) Tj ET Q q 0 0 0 rg BT 249.94 544.85 Td (A) Tj ET Q q 0 0 0 rg BT 255.45 544.85 Td ( decision in the judicial challenge to the ozone standard is expected in 2019. In ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 534.05 Td (October 2016, the EP) Tj ET Q q 0 0 0 rg BT 121.89 534.05 Td (A) Tj ET Q q 0 0 0 rg BT 127.39 534.05 Td ( finalized Control ) Tj ET Q q 0 0 0 rg BT 196.77 534.05 Td (T) Tj ET Q q 0 0 0 rg BT 201.27 534.05 Td (echniques Guidelines for VOC emissions from existing oil and natural gas equipment and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 523.25 Td (processes in moderate ozone non-attainment areas. ) Tj ET Q q 0 0 0 rg BT 248.96 523.25 Td (These Control ) Tj ET Q q 0 0 0 rg BT 307.82 523.25 Td (T) Tj ET Q q 0 0 0 rg BT 312.32 523.25 Td (echniques Guidelines provide recommendations for states and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 512.45 Td (local air agencies to consider when determining what emissions requirements apply to sources in the non-attainment areas. ) Tj ET Q q 0 0 0 rg BT 532.10 512.45 Td (The EP) Tj ET Q q 0 0 0 rg BT 561.45 512.45 Td (A) Tj ET Q q 0 0 0 rg BT 566.95 512.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 501.65 Td (has proposed to completely withdraw the rules. On May 12, 2016, the EP) Tj ET Q q 0 0 0 rg BT 328.99 501.65 Td (A) Tj ET Q q 0 0 0 rg BT 334.50 501.65 Td ( also issued a final rule named the “Source Determination ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 490.85 Td (Rule” that was issued to clarify when multiple pieces of oil and gas equipment and activities must be aggregated as a single source for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 480.05 Td (determining whether major source permitting programs apply) Tj ET Q q 0 0 0 rg BT 277.94 480.05 Td (. ) Tj ET Q q 0 0 0 rg BT 285.28 480.05 Td (This action can expand the permitting and related control requirements ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 469.25 Td (to sources that were not previously subject to permitting requirements. However) Tj ET Q q 0 0 0 rg BT 355.65 469.25 Td (, more recently) Tj ET Q q 0 0 0 rg BT 414.50 469.25 Td (, the EP) Tj ET Q q 0 0 0 rg BT 445.85 469.25 Td (A) Tj ET Q q 0 0 0 rg BT 451.36 469.25 Td ( has issued several guidance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 458.45 Td (documents and memorandums related to aggregation of facilities that may narrow the ef) Tj ET Q q 0 0 0 rg BT 386.53 458.45 Td (fect of the Source Determination Rule.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 435.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 435.65 Td (Increased regulation and attention given to the hydraulic fracturing process could lead to greater opposition, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 424.85 Td (litigation, to oil and gas production activities using hydraulic fracturing techniques. Disclosure of chemicals used in the hydraulic ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 414.05 Td (fracturing process could make it easier for third-parties opposing such activities to pursue legal proceedings against producers and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 403.25 Td (service providers based on allegations that specific chemicals used in the fracturing process could adversely af) Tj ET Q q 0 0 0 rg BT 477.07 403.25 Td (fect human health or the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 392.45 Td (environment, including groundwater) Tj ET Q q 0 0 0 rg BT 178.09 392.45 Td (. In 2013, a court in California held that the BLM did not comply with NEP) Tj ET Q q 0 0 0 rg BT 470.58 392.45 Td (A) Tj ET Q q 0 0 0 rg BT 476.08 392.45 Td ( because it did not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 381.65 Td (adequately consider the impact of hydraulic fracturing and horizontal drilling before issuing leases. Courts in New ) Tj ET Q q 0 0 0 rg BT 490.08 381.65 Td (Y) Tj ET Q q 0 0 0 rg BT 495.25 381.65 Td (ork and Colorado ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 370.85 Td (reduced the level of evidence required before a court will agree to consider alleged damage claims from hydraulic fracturing by property ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 360.05 Td (owners. Litigation resulting in financial compensation for damages linked to hydraulic fracturing, including damages from induced ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 349.25 Td (seismicity) Tj ET Q q 0 0 0 rg BT 74.33 349.25 Td (, could spur future litigation and bring increased attention to the practice of hydraulic fracturing. Judicial decisions could also ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 338.45 Td (lead to increased regulation, permitting requirements, enforcement actions, and penalties. ) Tj ET Q q 0 0 0 rg BT 397.71 338.45 Td (Additional legislation or regulation could also ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 327.65 Td (lead to operational delays or restrictions or increased costs in the exploration for) Tj ET Q q 0 0 0 rg BT 354.17 327.65 Td (, and production of, oil, gas, and NGLs, including from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 316.85 Td (the development of shale plays, or could make it more dif) Tj ET Q q 0 0 0 rg BT 263.46 316.85 Td (ficult to perform hydraulic fracturing. ) Tj ET Q q 0 0 0 rg BT 411.35 316.85 Td (The adoption of additional state or local ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 306.05 Td (laws, or the implementation of new regulations regarding hydraulic fracturing could potentially cause a decrease in the completion of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 295.25 Td (new oil and gas wells, or an increase in compliance costs and delays, which could adversely af) Tj ET Q q 0 0 0 rg BT 413.04 295.25 Td (fect our financial position, results of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 284.45 Td (operations, and cash flows.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 261.65 Td (Requirements to reduce gas flaring could have an adverse effect on our operations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 238.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 238.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 238.85 Td (ells in the Midland Basin in ) Tj ET Q q 0 0 0 rg BT 189.23 238.85 Td (T) Tj ET Q q 0 0 0 rg BT 193.73 238.85 Td (exas, where we have significant operations, produce natural gas, as well as oil and NGLs. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.05 Td (Constraints in the gas gathering and processing network in certain areas of the Midland Basin have resulted in some of that gas being ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 217.25 Td (flared instead of gathered, processed, and sold. Further) Tj ET Q q 0 0 0 rg BT 259.64 217.25 Td (, we are subject to laws established by state and other regulatory agencies that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 206.45 Td (restrict the duration and amount of natural gas that can be legally flared. ) Tj ET Q q 0 0 0 rg BT 327.51 206.45 Td (These laws and regulations, including potential future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 195.65 Td (regulations that may impose further restrictions on flaring, could limit the amount of oil and gas the Company can produce from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 184.85 Td (Company’) Tj ET Q q 0 0 0 rg BT 76.35 184.85 Td (s wells or may limit the number of wells or the locations that the Company can drill.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 162.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 162.05 Td (In November 2016, the BLM finalized regulations to address methane emissions from oil and gas operations on federal and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (tribal lands. ) Tj ET Q q 0 0 0 rg BT 86.86 151.25 Td (The regulations prohibit venting gas except in limited situations and limit the flaring of gas. ) Tj ET Q q 0 0 0 rg BT 449.06 151.25 Td (After continuous court ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (challenges, the BLM issued a final rule in September 2018 that rescinded most of the 2016 rule, including most of the methane control ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 129.65 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 95.53 129.65 Td (Any future regulations requiring similar capture standards may increase our operational costs, or restrict our production, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 118.85 Td (which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 192.41 118.85 Td (fect our financial condition, results of operations and cash flows.) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (36) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Our ability to produce oil, gas, and NGLs economically and in commercial quantities could be impaired if we are unable to acquire ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (adequate supplies of water for our drilling operations and/or completions or are unable to dispose of or recycle the water we use at a ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (reasonable cost and in accordance with applicable environmental rules.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 696.05 Td (The hydraulic fracturing process on which we and others in our industry depend to complete wells that will produce ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (commercial quantities of oil, gas, and NGLs requires the use and disposal of significant quantities of water) Tj ET Q q 0 0 0 rg BT 457.23 685.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 662.45 Td (Our inability to secure suf) Tj ET Q q 0 0 0 rg BT 173.38 662.45 Td (ficient amounts of water) Tj ET Q q 0 0 0 rg BT 267.93 662.45 Td (, or to dispose of or recycle the water produced from our wells, could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (adversely impact our operations. Moreover) Tj ET Q q 0 0 0 rg BT 208.58 651.65 Td (, the imposition of new environmental initiatives and regulations could include restrictions on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (our ability to conduct certain operations such as hydraulic fracturing or disposal of wastes, including, but not limited to, produced water) Tj ET Q q 0 0 0 rg BT 569.29 640.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (drilling fluids, and other wastes associated with the exploration, development, or production of oil, gas, and NGLs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 607.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 607.25 Td (Compliance with environmental regulations and permit requirements governing the withdrawal, storage, and use of surface ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (water or groundwater necessary for hydraulic fracturing of wells may increase our operating costs and cause delays, interruptions, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (termination of our operations, the extent of which cannot be predicted, all of which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 464.60 585.65 Td (fect on our operations and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (financial condition.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 552.05 Td (Legislative and regulatory initiatives related to global warming and climate change could have an adverse effect on our operations and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 541.25 Td (the demand for oil, gas, and NGLs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 518.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 518.45 Td (In December 2009, the EP) Tj ET Q q 0 0 0 rg BT 177.39 518.45 Td (A) Tj ET Q q 0 0 0 rg BT 182.90 518.45 Td ( made a finding that emissions of carbon dioxide, methane, and other “greenhouse gases” ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 507.65 Td (endanger public health and the environment because emissions of such gases contribute to warming of the earth’) Tj ET Q q 0 0 0 rg BT 487.11 507.65 Td (s atmosphere and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 496.85 Td (other climatic changes. Based on this finding, the EP) Tj ET Q q 0 0 0 rg BT 247.95 496.85 Td (A) Tj ET Q q 0 0 0 rg BT 253.46 496.85 Td ( adopted and implemented a comprehensive suite of regulations to restrict and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 486.05 Td (otherwise regulate emissions of greenhouse gases under existing provisions of the CAA. In particular) Tj ET Q q 0 0 0 rg BT 440.22 486.05 Td (, the EP) Tj ET Q q 0 0 0 rg BT 471.57 486.05 Td (A) Tj ET Q q 0 0 0 rg BT 477.08 486.05 Td ( adopted two sets of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 475.25 Td (rules regulating greenhouse gas emissions under the CAA. One rule requires a reduction in greenhouse gas emissions from motor ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 464.45 Td (vehicles, and the other regulates permitting and greenhouse gas emissions from certain large stationary sources. ) Tj ET Q q 0 0 0 rg BT 490.58 464.45 Td (These EP) Tj ET Q q 0 0 0 rg BT 529.43 464.45 Td (A) Tj ET Q q 0 0 0 rg BT 534.94 464.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (regulatory actions have been challenged by various industry groups, initially in the D.C. Circuit, which in 2012 ruled in favor of the EP) Tj ET Q q 0 0 0 rg BT 563.62 453.65 Td (A) Tj ET Q q 0 0 0 rg BT 569.12 453.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (in all respects. However) Tj ET Q q 0 0 0 rg BT 133.54 442.85 Td (, in June 2014, the United States Supreme Court reversed the D.C. Circuit and struck down the EP) Tj ET Q q 0 0 0 rg BT 525.57 442.85 Td (A) Tj ET Q q 0 0 0 rg BT 530.91 442.85 Td (’) Tj ET Q q 0 0 0 rg BT 532.74 442.85 Td (s ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (greenhouse gas permitting rules to the extent they impose a requirement to obtain a permit based solely on emissions of greenhouse ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (gases. ) Tj ET Q q 0 0 0 rg BT 67.35 421.25 Td (The EP) Tj ET Q q 0 0 0 rg BT 96.70 421.25 Td (A) Tj ET Q q 0 0 0 rg BT 102.21 421.25 Td ( proposed a rule in 2016 to comply with the U.S. Supreme Court’) Tj ET Q q 0 0 0 rg BT 359.18 421.25 Td (s ruling by limiting the requirement to obtain permits ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (addressing emissions of greenhouse gases to large sources of other air pollutants, such as volatile organic compounds or nitrogen ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (oxides, which also emit 100,000 tons per year or more of CO) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 278.12 398.41 Td (2 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.99 399.65 Td (\(or modifications of these sources that result in an emissions increase of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 388.85 Td (75,000 tons per year or more of CO) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 178.07 387.61 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.32 388.85 Td (e\). If finalized, large sources of air pollutants other than greenhouse gases will be required to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 378.05 Td (implement the best available capture technology for greenhouse gases. However) Tj ET Q q 0 0 0 rg BT 360.69 378.05 Td (, the EP) Tj ET Q q 0 0 0 rg BT 392.04 378.05 Td (A) Tj ET Q q 0 0 0 rg BT 397.55 378.05 Td ( has not taken action on the proposed rule ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 367.25 Td (and is unlikely to do so under the ) Tj ET Q q 0 0 0 rg BT 169.92 367.25 Td (T) Tj ET Q q 0 0 0 rg BT 175.09 367.25 Td (rump administration. ) Tj ET Q q 0 0 0 rg BT 261.46 367.25 Td (The EP) Tj ET Q q 0 0 0 rg BT 290.80 367.25 Td (A) Tj ET Q q 0 0 0 rg BT 296.31 367.25 Td ( has also adopted reporting rules for greenhouse gas emissions from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 356.45 Td (specified greenhouse gas emission sources in the United States, including petroleum refineries as well as certain onshore oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 345.65 Td (extraction and production facilities.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 322.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 322.85 Td (Several other cases regarding greenhouse gases have been heard by the courts in recent years. While courts have generally ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 312.05 Td (declined to assign direct liability for climate change to large sources of greenhouse gas emissions, some have required increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 301.25 Td (scrutiny of such emissions by federal agencies and permitting authorities. ) Tj ET Q q 0 0 0 rg BT 332.49 301.25 Td (There is a continuing risk of claims being filed against ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 290.45 Td (companies that have significant greenhouse gas emissions, and new claims for damages and increased government scrutiny) Tj ET Q q 0 0 0 rg BT 532.60 290.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 279.65 Td (especially from state and local governments, will likely continue.  Such cases often seek to challenge air emissions permits that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td (greenhouse gas emitters apply for) Tj ET Q q 0 0 0 rg BT 171.58 268.85 Td (, seek to force emitters to reduce their emissions, or seek damages for alleged climate change ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 258.05 Td (impacts to the environment, people, and property) Tj ET Q q 0 0 0 rg BT 230.95 258.05 Td (. ) Tj ET Q q 0 0 0 rg BT 237.95 258.05 Td (Any court rulings, laws, or regulations that restrict or require reduced emissions of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 247.25 Td (greenhouse gases could lead to increased operating and compliance costs and could have an adverse ef) Tj ET Q q 0 0 0 rg BT 454.62 247.25 Td (fect on demand for the oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 236.45 Td (gas that we produce.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 213.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 213.65 Td (The United States Congress has from time to time considered adopting legislation to reduce emissions of greenhouse gases, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.85 Td (and almost one-half of the states have already taken measures to reduce emissions of greenhouse gases, primarily through the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (planned development of greenhouse gas emission inventories and/or regional greenhouse gas “cap and trade” programs. Most of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.25 Td (these cap and trade programs work by requiring major sources of emissions, such as electric power plants, or major producers of fuels, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 170.45 Td (such as refineries and gas processing plants, to acquire and surrender emission allowances. ) Tj ET Q q 0 0 0 rg BT 409.04 170.45 Td (The number of allowances available for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 159.65 Td (purchase is reduced each year in an ef) Tj ET Q q 0 0 0 rg BT 190.93 159.65 Td (fort to achieve the overall greenhouse gas emission reduction goal. In 2013, the Congressional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 148.85 Td (Budget Of) Tj ET Q q 0 0 0 rg BT 76.36 148.85 Td (fice provided Congress with a study on the potential ef) Tj ET Q q 0 0 0 rg BT 292.33 148.85 Td (fects on the United States economy of a tax on greenhouse gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.05 Td (emissions and recently summarized the impact of imposition of a tax on greenhouse gas emissions for reducing the deficit. While ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 127.25 Td (“carbon tax” legislation has been introduced in Congress, the prospects for passage of such legislation are uncertain at this time.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 104.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 104.45 Td (On June 25, 2013, President Obama issued a Climate ) Tj ET Q q 0 0 0 rg BT 289.63 104.45 Td (Action Plan to address climate change through a variety of executive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 93.65 Td (actions, including reduction of methane emissions from oil and gas production and processing operations as well as pipelines and coal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 82.85 Td (mines \(the “Climate ) Tj ET Q q 0 0 0 rg BT 116.02 82.85 Td (Action Plan”\). Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 236.08 82.85 Td (Proposed federal and state legislative and regulatory initiatives relating to hydraulic ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 72.05 Td (fracturing could result in increased costs and additional operating restrictions or delays) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.18 72.05 Td ( for more information on EP) Tj ET Q q 0 0 0 rg BT 489.56 72.05 Td (A) Tj ET Q q 0 0 0 rg BT 495.07 72.05 Td ( actions to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 61.25 Td (implement the Climate ) Tj ET Q q 0 0 0 rg BT 127.54 61.25 Td (Action Plan. ) Tj ET Q q 0 0 0 rg BT 180.40 61.25 Td (The focus on legislating and/or regulating methane could eventually result in:) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (37) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 740.45 Td (requirements for methane emission reductions from existing oil and gas equipment;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 723.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 723.65 Td (increased scrutiny for sources emitting high levels of methane, including during permitting processes;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 706.85 Td (analysis, regulation and reduction of methane emissions as a requirement for project approval; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 690.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 690.05 Td (actions taken by one agency for a specific industry establishing precedents for other agencies and industry sectors.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 667.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 667.25 Td (In relation to the Climate ) Tj ET Q q 0 0 0 rg BT 171.55 667.25 Td (Action Plan, both assumed global warming potential \(“GWP”\) and assumed social costs associated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 656.45 Td (with methane and other greenhouse gas emissions have been finalized, including a 20% increase in the GWP) Tj ET Q q 0 0 0 rg BT 473.10 656.45 Td ( of methane. Changes to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 645.65 Td (these measurement tools could adversely impact permitting requirements, application of agencies’) Tj ET Q q 0 0 0 rg BT 426.37 645.65 Td ( existing regulations for source ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 634.85 Td (categories with high methane emissions, and determinations of whether a source qualifies for regulation under the CAA. However) Tj ET Q q 0 0 0 rg BT 553.28 634.85 Td (, in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 624.05 Td (Executive Order 13783, President ) Tj ET Q q 0 0 0 rg BT 173.41 624.05 Td (T) Tj ET Q q 0 0 0 rg BT 178.58 624.05 Td (rump ordered a review of the use of social cost of carbon for regulatory impact analysis. ) Tj ET Q q 0 0 0 rg BT 532.08 624.05 Td (Therefore, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 613.25 Td (the continued use of the social cost of carbon under the ) Tj ET Q q 0 0 0 rg BT 259.48 613.25 Td (T) Tj ET Q q 0 0 0 rg BT 264.65 613.25 Td (rump administration is uncertain.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 590.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 590.45 Td (Finally) Tj ET Q q 0 0 0 rg BT 97.34 590.45 Td (, it should be noted that scientists have predicted that increasing concentrations of greenhouse gases in the earth’) Tj ET Q q 0 0 0 rg BT 549.96 590.45 Td (s ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 579.65 Td (atmosphere may produce climate changes that have significant physical ef) Tj ET Q q 0 0 0 rg BT 332.50 579.65 Td (fects, such as increased frequency and severity of storms, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 568.85 Td (droughts, and floods and other climatic events. If such ef) Tj ET Q q 0 0 0 rg BT 263.47 568.85 Td (fects were to occur) Tj ET Q q 0 0 0 rg BT 338.50 568.85 Td (, our operations could be adversely af) Tj ET Q q 0 0 0 rg BT 488.43 568.85 Td (fected. Potential ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 558.05 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 77.86 558.05 Td (fects could include disruption of our production activities, including, for example, damages to our facilities from flooding or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 547.25 Td (increases in our costs of operation or reductions in the ef) Tj ET Q q 0 0 0 rg BT 261.96 547.25 Td (ficiency of our operations, as well as potentially increased costs for insurance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 536.45 Td (coverage in the aftermath of such events. Significant physical ef) Tj ET Q q 0 0 0 rg BT 292.48 536.45 Td (fects of climate change could also have an indirect ef) Tj ET Q q 0 0 0 rg BT 503.44 536.45 Td (fect on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 525.65 Td (financing and operations by disrupting the transportation or process-related services provided by midstream companies, service ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 514.85 Td (companies, or suppliers with whom we have a business relationship. W) Tj ET Q q 0 0 0 rg BT 321.97 514.85 Td (e may not be able to recover through insurance some or any of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 504.05 Td (the damages, losses, or costs that may result from potential physical ef) Tj ET Q q 0 0 0 rg BT 318.47 504.05 Td (fects of climate change. Federal regulations or policy changes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 493.25 Td (regarding climate change preparation requirements could also impact our costs and planning requirements.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 470.45 Td (New technologies may cause our current exploration and drilling methods to become obsolete.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 447.65 Td (The oil and gas industry is subject to rapid and significant advancements in technology) Tj ET Q q 0 0 0 rg BT 416.03 447.65 Td (, including the introduction of new ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 436.85 Td (products and services that use new technologies. ) Tj ET Q q 0 0 0 rg BT 237.12 436.85 Td (As competitors use or develop new technologies, we may be placed at a competitive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 426.05 Td (disadvantage, and competitive pressures may force us to implement new technologies at a substantial cost. In addition, competitors ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 415.25 Td (may have greater financial, technical, and personnel resources that allow them to enjoy technological advantages and may in the future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 404.45 Td (allow them to implement new technologies before we can. One or more of the technologies we currently use or implement in the future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 393.65 Td (may become obsolete. W) Tj ET Q q 0 0 0 rg BT 139.88 393.65 Td (e cannot be certain we will be able to implement technologies on a timely basis or at a cost that is acceptable ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 382.85 Td (to us. If we are unable to maintain technological advancements consistent with industry standards, our operations, and financial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 372.05 Td (condition may be adversely af) Tj ET Q q 0 0 0 rg BT 154.90 372.05 Td (fected.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 349.25 Td (Risks Related to Our Common Stock) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 326.45 Td (The price of our common stock may fluctuate significantly) Tj ET Q q 0 0 0 rg BT 263.93 326.45 Td (, which may result in losses for investors.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 303.65 Td (From ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.50 303.65 Td (January 1, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.04 303.65 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.05 303.65 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.59 303.65 Td (, the intraday trading prices per share of our common stock as reported by the New ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 292.85 Td (Y) Tj ET Q q 0 0 0 rg BT 41.18 292.85 Td (ork Stock Exchange ranged from a low of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.26 292.85 Td ($13.15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.79 292.85 Td ( per share in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.32 292.85 Td (December) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.83 292.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.33 292.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.35 292.85 Td ( to a high of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.89 292.85 Td ($33.76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.42 292.85 Td ( per share in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.94 292.85 Td (October) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.96 292.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.46 292.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.48 292.85 Td (. W) Tj ET Q q 0 0 0 rg BT 552.31 292.85 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 282.05 Td (expect our stock to continue to be subject to fluctuations as a result of a variety of factors, including factors beyond our control. ) Tj ET Q q 0 0 0 rg BT 544.11 282.05 Td (These ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 271.25 Td (factors include, in addition to the other Risk Factors set forth herein, the following:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 248.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 248.45 Td (changes in oil, gas, or NGL) Tj ET Q q 0 0 0 rg BT 198.22 248.45 Td ( prices;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 231.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 231.65 Td (changes in the outlook for regional, national, or global commodity supply and demand;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 214.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 214.85 Td (variations in drilling, recompletion, and operating activity;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 198.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 198.05 Td (changes in financial estimates by securities analysts;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 181.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 181.25 Td (changes in market valuations of comparable companies;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 164.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 164.45 Td (additions or departures of key personnel;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 147.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 147.65 Td (increased volatility due to the impacts of algorithmic trading practices;) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 130.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 130.85 Td (future sales of our common stock; and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 114.05 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 114.05 Td (changes in the national and global economic outlook, including potential impacts from trade agreements.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 91.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 91.25 Td (e may not meet the expectations of our stockholders and/or of securities analysts at some time in the future, and our stock ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 80.45 Td (price could decline as a result.) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (38) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Our certificate of incorporation and by-laws have provisions that discourage corporate takeovers and could prevent stockholders from ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (receiving a takeover premium on their investment, which could adversely affect the price of our common stock.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (Delaware corporate law and our certificate of incorporation and by-laws contain provisions that may have the ef) Tj ET Q q 0 0 0 rg BT 514.07 706.85 Td (fect of delaying ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (or preventing a change of control of us or our management. ) Tj ET Q q 0 0 0 rg BT 277.98 696.05 Td (These provisions, among other things, provide for non-cumulative voting in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (the election of members of the Board of Directors and impose procedural requirements on stockholders who wish to make nominations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (for the election of directors or propose other actions at stockholder meetings. ) Tj ET Q q 0 0 0 rg BT 346.50 674.45 Td (These provisions, alone or in combination with each ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (other) Tj ET Q q 0 0 0 rg BT 56.02 663.65 Td (, may discourage transactions involving actual or potential changes of control, including transactions that otherwise could involve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (payment of a premium over prevailing market prices to stockholders for their common stock. ) Tj ET Q q 0 0 0 rg BT 406.65 652.85 Td (As a result, these provisions could make it ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (more dif) Tj ET Q q 0 0 0 rg BT 68.35 642.05 Td (ficult for a third-party to acquire us, even if doing so would benefit our stockholders, which may limit the price investors are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (willing to pay in the future for shares of our common stock.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 608.45 Td (e may not always pay dividends on our common stock.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 585.65 Td (Payment of future dividends remains at the discretion of our Board of Directors, and will continue to depend on our earnings, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (capital requirements, financial condition, and other factors. In addition, the payment of dividends is subject to a covenant in our Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (Agreement limiting our annual cash dividends to no more than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.64 564.05 Td ($50.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.17 564.05 Td (, and to covenants in the indentures for our Senior Notes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (and Senior Convertible Notes that limit our ability to pay dividends beyond a certain amount. Our Board of Directors may determine in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (the future to reduce the current semi-annual dividend rate of $0.05 per share or discontinue the payment of dividends altogether) Tj ET Q q 0 0 0 rg BT 543.82 542.45 Td (.) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (39) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (ITEM 1B. UNRESOL) Tj ET Q q 0 0 0 rg BT 122.34 740.45 Td (VED ST) Tj ET Q q 0 0 0 rg BT 154.18 740.45 Td (AFF COMMENTS) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 717.65 Td (e have no unresolved comments from the SEC staf) Tj ET Q q 0 0 0 rg BT 283.77 717.65 Td (f regarding our periodic or current reports under the Exchange ) Tj ET Q q 0 0 0 rg BT 532.91 717.65 Td (Act.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 694.85 Td (ITEM 3. ) Tj ET Q q 0 0 0 rg BT 72.00 694.85 Td (LEGAL) Tj ET Q q 0 0 0 rg BT 102.34 694.85 Td ( PROCEEDINGS) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 672.05 Td (From time to time, we may be involved in litigation relating to claims arising out of our business and operations in the normal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 661.25 Td (course of business. ) Tj ET Q q 0 0 0 rg BT 118.05 661.25 Td (As of the filing of this report, no legal proceedings are pending against us that we believe individually or collectively ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 650.45 Td (are likely to have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 196.41 650.45 Td (fect upon our financial condition, results of operations or cash flows.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 627.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 627.65 Td (Chieftain Royalty Company v) Tj ET Q q 0 0 0 rg BT 187.38 627.65 Td (. SM Energy Company) Tj ET Q q 0 0 0 rg BT 277.25 627.65 Td (, Case No. CIV) Tj ET Q q 0 0 0 rg BT 336.94 627.65 Td (-1) Tj ET Q q 0 0 0 rg BT 344.27 627.65 Td (1-D, In the United States District Court, W) Tj ET Q q 0 0 0 rg BT 510.66 627.65 Td (estern District of ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 616.85 Td (Oklahoma.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 79.52 616.85 Td ( On January 27, 201) Tj ET Q q 0 0 0 rg BT 162.91 616.85 Td (1, Chieftain Royalty Company \(“Plaintif) Tj ET Q q 0 0 0 rg BT 317.31 616.85 Td (f”\) commenced a putative class action lawsuit against the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 606.05 Td (Company by filing a Petition in the District Court of Beaver County) Tj ET Q q 0 0 0 rg BT 297.95 606.05 Td (, Oklahoma, in the matter originally styled Chieftain Royalty Company ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 595.25 Td (v) Tj ET Q q 0 0 0 rg BT 39.83 595.25 Td (. SM Energy Company \(including predecessors, successors and af) Tj ET Q q 0 0 0 rg BT 305.29 595.25 Td (filiates\), Case No. CJ-201) Tj ET Q q 0 0 0 rg BT 407.16 595.25 Td (104, alleging that the Company had ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 584.45 Td (improperly deducted post-production costs from royalty payments due on production from wells located throughout Oklahoma, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 573.65 Td (asserting claims against the Company for breach of contract, tortious breach of contract, breach of fiduciary or quasi-fiduciary duty) Tj ET Q q 0 0 0 rg BT 553.08 573.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 562.85 Td (fraud \(actual and constructive\), deceit, conversion and conspiracy) Tj ET Q q 0 0 0 rg BT 296.97 562.85 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 540.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 540.05 Td (The Company removed the case to the United States District Court for the W) Tj ET Q q 0 0 0 rg BT 377.47 540.05 Td (estern District of Oklahoma. ) Tj ET Q q 0 0 0 rg BT 493.34 540.05 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 534.37 540.05 Td (, the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 529.25 Td (Court stayed this matter pending the outcome of two appeals involving XT) Tj ET Q q 0 0 0 rg BT 330.00 529.25 Td (O Energy) Tj ET Q q 0 0 0 rg BT 367.35 529.25 Td (, Inc \(“XT) Tj ET Q q 0 0 0 rg BT 404.19 529.25 Td (O”\), before the ) Tj ET Q q 0 0 0 rg BT 465.05 529.25 Td (T) Tj ET Q q 0 0 0 rg BT 469.55 529.25 Td (enth Circuit Court of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 518.45 Td (Appeals. ) Tj ET Q q 0 0 0 rg BT 75.53 518.45 Td (After resolution of the XT) Tj ET Q q 0 0 0 rg BT 174.92 518.45 Td (O appeals, the stay was lifted in 2013.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 495.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 495.65 Td (The Company was originally the only named defendant, but, as a result of the Company’) Tj ET Q q 0 0 0 rg BT 423.54 495.65 Td (s 2013 disposition of approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 484.85 Td (75% of its Oklahoma properties to various entities, with those entities agreeing to assume any liability for any past or present royalty ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 474.05 Td (claims, Plaintif) Tj ET Q q 0 0 0 rg BT 93.35 474.05 Td (f filed a Second ) Tj ET Q q 0 0 0 rg BT 157.40 474.05 Td (Amended Complaint in 2014 joining such entities as defendants. ) Tj ET Q q 0 0 0 rg BT 418.40 474.05 Td (Those defendants subsequently settled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 463.25 Td (all claims with Plaintif) Tj ET Q q 0 0 0 rg BT 120.86 463.25 Td (f; however) Tj ET Q q 0 0 0 rg BT 161.89 463.25 Td (, that settlement was ef) Tj ET Q q 0 0 0 rg BT 254.27 463.25 Td (fectively stayed during extended appellate proceedings concerning disputed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 452.45 Td (attorneys’) Tj ET Q q 0 0 0 rg BT 74.69 452.45 Td ( fees in the matter) Tj ET Q q 0 0 0 rg BT 146.22 452.45 Td (. ) Tj ET Q q 0 0 0 rg BT 153.56 452.45 Td (The Chieftain matter concerning the remaining Oklahoma properties was stayed during the fee dispute ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 441.65 Td (proceedings.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 418.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 418.85 Td (On ) Tj ET Q q 0 0 0 rg BT 86.01 418.85 Td (August 2, 2018, the Court in this matter required that Plaintif) Tj ET Q q 0 0 0 rg BT 324.98 418.85 Td (f file any motion to certify a class by February 8, 2019. Plaintif) Tj ET Q q 0 0 0 rg BT 572.43 418.85 Td (f ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 408.05 Td (filed such motion but only with respect to royalty owners in wells attached to the Coal County) Tj ET Q q 0 0 0 rg BT 404.02 408.05 Td (, Oklahoma pipeline system, which was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 397.25 Td (owned by the Company’) Tj ET Q q 0 0 0 rg BT 132.39 397.25 Td (s af) Tj ET Q q 0 0 0 rg BT 146.74 397.25 Td (filiate, Four Winds Marketing, LLC, until 2015, when the subject wells and pipeline system were sold to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 386.45 Td (third party) Tj ET Q q 0 0 0 rg BT 75.35 386.45 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 363.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 363.65 Td (This case involves complex legal and factual issues and uncertainties as to Oklahoma law and federal law concerning class ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 352.85 Td (certification under the circumstances of this case, and has resulted in a significant amount of discovery) Tj ET Q q 0 0 0 rg BT 443.54 352.85 Td (. ) Tj ET Q q 0 0 0 rg BT 450.88 352.85 Td (The Company believes that it ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 342.05 Td (has properly paid royalties under Oklahoma law and that the class as proposed by Plaintif) Tj ET Q q 0 0 0 rg BT 392.54 342.05 Td (f should not be certified. ) Tj ET Q q 0 0 0 rg BT 492.93 342.05 Td (The Company has ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 331.25 Td (and will continue to vigorously defend this case. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 308.45 Td (ITEM 4. ) Tj ET Q q 0 0 0 rg BT 72.00 308.45 Td ( MINE SAFETY) Tj ET Q q 0 0 0 rg BT 134.84 308.45 Td ( DISCLOSURES) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 285.65 Td (These disclosures are not applicable to us.) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (40) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 290.30 740.45 Td (P) Tj ET Q q 0 0 0 rg BT 295.63 740.45 Td (ART II) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (ITEM 5. ) Tj ET Q q 0 0 0 rg BT 72.00 718.85 Td ( MARKET FOR REGISTRANT’S COMMON EQUITY) Tj ET Q q 0 0 0 rg BT 283.50 718.85 Td (, RELA) Tj ET Q q 0 0 0 rg BT 312.33 718.85 Td (TED ST) Tj ET Q q 0 0 0 rg BT 344.17 718.85 Td (OCKHOLDER MA) Tj ET Q q 0 0 0 rg BT 418.00 718.85 Td (TTERS ) Tj ET Q q 0 0 0 rg BT 449.67 718.85 Td (AND ISSUER PURCHASES ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (OF EQUITY) Tj ET Q q 0 0 0 rg BT 84.34 708.05 Td ( SECURITIES) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 685.25 Td (Market Information. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.53 685.25 Td (Our common stock is currently traded on the New ) Tj ET Q q 0 0 0 rg BT 354.45 685.25 Td (Y) Tj ET Q q 0 0 0 rg BT 359.62 685.25 Td (ork Stock Exchange under the ticker symbol “SM.” ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 253.20 662.45 Td (PERFORMANCE GRAPH) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 639.65 Td (The following performance graph compares the cumulative return on our common stock, for the period beginning ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 628.85 Td (December 31, 2013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 628.85 Td (, and ending on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 179.60 628.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.65 628.85 Td (, with the cumulative total returns of the Dow Jones U.S. Exploration and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 618.05 Td (Production Index, and the Standard & Poor) Tj ET Q q 0 0 0 rg BT 207.95 618.05 Td (’) Tj ET Q q 0 0 0 rg BT 209.79 618.05 Td (s 500 Stock Index.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.90 595.25 Td (COMP) Tj ET Q q 0 0 0 rg BT 207.23 595.25 Td (ARISON OF 5-YEAR CUMULA) Tj ET Q q 0 0 0 rg BT 333.57 595.25 Td (TIVE T) Tj ET Q q 0 0 0 rg BT 361.41 595.25 Td (OT) Tj ET Q q 0 0 0 rg BT 373.24 595.25 Td (AL) Tj ET Q q 0 0 0 rg BT 385.07 595.25 Td ( RETURNS) Tj ET Q /GS0 gs q 540.00 0 0 255.20 36.00 323.05 cm /I20 Do Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 300.25 Td (The preceding information under the caption Performance Graph shall be deemed to be furnished, but not filed with the SEC.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 277.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 277.45 Td (Holders. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 110.51 277.45 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.52 277.45 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.06 277.45 Td (, the number of record holders of our common stock was 65. Based upon inquiry) Tj ET Q q 0 0 0 rg BT 523.56 277.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 266.65 Td (management believes that the number of beneficial owners of our common stock is approximately 21,337.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 243.85 Td (Purchases of Equity Securities by Issuer and ) Tj ET Q q 0 0 0 rg BT 252.76 243.85 Td (Affiliated Purchasers. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.80 243.85 Td (The following table provides information about purchases ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 233.05 Td (made by us and any af) Tj ET Q q 0 0 0 rg BT 126.90 233.05 Td (filiated purchaser \(as defined in Rule 10b-18\(a\)\(3\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 410.57 233.05 Td (Act\) during the indicated quarters and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 222.25 Td (year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.54 222.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 162.58 222.25 Td (, of shares of our common stock, which is the sole class of equity securities registered by us pursuant to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 211.45 Td (Section 12 of the Exchange ) Tj ET Q q 0 0 0 rg BT 148.08 211.45 Td (Act.) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.05 740.45 Td (PURCHASES OF EQUITY) Tj ET Q q 0 0 0 rg BT 235.40 740.45 Td ( SECURITIES BY) Tj ET Q q 0 0 0 rg BT 306.75 740.45 Td ( ISSUER ) Tj ET Q q 0 0 0 rg BT 344.92 740.45 Td (AND ) Tj ET Q q 0 0 0 rg BT 366.59 740.45 Td (AFFILIA) Tj ET Q q 0 0 0 rg BT 400.41 740.45 Td (TED PURCHASERS) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 683.95 80.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 116.50 683.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 683.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 683.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 683.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 683.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 683.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 683.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 683.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 637.95 80.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 116.50 637.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 637.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 637.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 637.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 637.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 637.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 637.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 637.95 104.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 591.95 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 116.50 591.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 591.95 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 591.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 591.95 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 591.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 591.95 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 591.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 591.95 104.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 36.5 683.95 m 116.5 683.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 683.95 m 224.5 683.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 683.95 m 332.5 683.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 683.95 m 440.5 683.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 683.95 m 548.5 683.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 660.95 m 224.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 660.95 m 332.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 660.95 m 440.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 660.95 m 548.5 660.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 637.95 m 224.5 637.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 637.95 m 332.5 637.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 637.95 m 440.5 637.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 637.95 m 548.5 637.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 614.95 m 224.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 614.95 m 332.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 614.95 m 440.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 614.95 m 548.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 614.95 m 224.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 591.95 m 224.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 614.95 m 332.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 591.95 m 332.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 614.95 m 440.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 591.95 m 440.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 614.95 m 548.5 614.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 591.95 m 548.5 591.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 578.95 m 224.5 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 576.95 m 224.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 578.95 m 332.5 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 576.95 m 332.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 578.95 m 440.5 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 576.95 m 440.5 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 578.95 m 548.5 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 576.95 m 548.5 576.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.95 688.35 Td (Period) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.80 699.15 Td (T) Tj ET Q q 0 0 0 rg BT 142.63 699.15 Td (otal Number of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.90 688.35 Td (Shares Purchased ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 208.94 692.64 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.15 699.15 Td (W) Tj ET Q q 0 0 0 rg BT 249.56 699.15 Td (eighted ) Tj ET Q q 0 0 0 rg BT 283.82 699.15 Td (A) Tj ET Q q 0 0 0 rg BT 289.98 699.15 Td (verage) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.20 688.35 Td (Price Paid per Share) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 353.80 720.75 Td (T) Tj ET Q q 0 0 0 rg BT 358.63 720.75 Td (otal Number of) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.45 709.95 Td (Shares Purchased as) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.20 699.20 Td (Part of Publicly) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 688.35 Td (Announced Program) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 451.45 720.75 Td (Maximum Number of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.05 709.95 Td (Shares that May ) Tj ET Q q 0 0 0 rg BT 518.41 709.95 Td (Y) Tj ET Q q 0 0 0 rg BT 523.92 709.95 Td (et be ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.70 699.20 Td (Purchased Under the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.65 688.35 Td (Program ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 512.16 692.64 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 674.35 Td (01/01/2018 - ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 665.35 Td ( 03/31/2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.00 665.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 665.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.00 665.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 665.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 665.35 Td (3,072,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 651.35 Td (04/01/2018 - ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 642.35 Td ( 06/30/2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.95 642.35 Td (355) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 642.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.45 642.35 Td (26.64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 642.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 642.35 Td (3,072,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 628.35 Td (07/01/2018 - ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 619.35 Td ( 09/30/2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 188.45 619.35 Td (1) Tj ET Q q 0 0 0 rg BT 193.46 619.35 Td (15,429) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 619.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.45 619.35 Td (25.69) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 619.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 619.35 Td (3,072,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 605.35 Td (10/01/2018 - ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 596.35 Td ( 12/31/2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 212.00 596.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 596.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.00 596.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 596.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 596.35 Td (3,072,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 582.35 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 582.35 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 188.45 582.35 Td (1) Tj ET Q q 0 0 0 rg BT 193.46 582.35 Td (15,784) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 582.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.45 582.35 Td (25.69) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 582.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 582.35 Td (3,072,184) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 571.25 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 563.74 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 559.45 Td (All shares purchased by us in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.06 559.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 194.08 559.45 Td ( were to of) Tj ET Q q 0 0 0 rg BT 235.94 559.45 Td (fset tax withholding obligations that occurred upon the delivery of outstanding shares ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 548.65 Td (underlying Restricted Stock Units \(“RSUs”\) issued under the terms of award agreements granted under the SM Energy Equity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 537.85 Td (Incentive Compensation Plan, as amended and restated ef) Tj ET Q q 0 0 0 rg BT 287.99 537.85 Td (fective as of May 22, 2018 \(the “Equity Plan”\).) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 531.34 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 527.05 Td (In July 2006, our Board of Directors approved an increase in the number of shares that may be repurchased under the original ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 516.25 Td (August 1998 authorization to 6,000,000 as of the ef) Tj ET Q q 0 0 0 rg BT 257.99 516.25 Td (fective date of the resolution. ) Tj ET Q q 0 0 0 rg BT 377.56 516.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 423.42 516.25 Td (, as of the filing of this report, subject ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 505.45 Td (to the approval of our Board of Directors, we may repurchase up to 3,072,184 shares of common stock on a prospective basis. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 494.65 Td (The shares may be repurchased from time to time in open market transactions or privately negotiated transactions, subject to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 483.85 Td (market conditions and other factors, including certain provisions of our Credit ) Tj ET Q q 0 0 0 rg BT 361.66 483.85 Td (Agreement, the indentures governing our Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 473.05 Td (Notes and Senior Convertible Notes, and compliance with securities laws. Stock repurchases may be funded with existing cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 462.25 Td (balances, internal cash flows, or borrowings under our Credit ) Tj ET Q q 0 0 0 rg BT 298.13 462.25 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 349.49 462.25 Td (The stock repurchase program may be suspended or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 451.45 Td (discontinued at any time.) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (42) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (ITEM 6. ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td ( SELECTED FINANCIAL) Tj ET Q q 0 0 0 rg BT 173.34 740.45 Td ( DA) Tj ET Q q 0 0 0 rg BT 188.17 740.45 Td (T) Tj ET Q q 0 0 0 rg BT 193.00 740.45 Td (A) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (The following table sets forth selected supplemental financial and operating data as of the dates or for the years indicated. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (The financial data for each of the five years presented was derived from our consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 479.58 706.85 Td (The following data ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (should be read in conjunction with ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 174.09 696.05 Td (Management’) Tj ET Q q 0 0 0 rg BT 228.46 696.05 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 298.66 696.05 Td (Analysis of Financial Condition and Results of Operations ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.28 696.05 Td (in Part II, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (Item 7 of this report, which includes a discussion of factors materially af) Tj ET Q q 0 0 0 rg BT 319.46 685.25 Td (fecting the comparability of the information presented, and in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (conjunction with our consolidated financial statements included in this report.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 621.95 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 621.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 621.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 621.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 621.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 621.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 621.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 621.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 621.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 621.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 584.95 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 584.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 584.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 584.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 584.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 584.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 584.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 584.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 584.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 584.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 556.95 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 556.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 556.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 556.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 556.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 556.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 556.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 556.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 556.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 556.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 528.95 168.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 528.95 64.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 528.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 528.95 64.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 528.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 528.95 64.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 528.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 528.95 64.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 528.95 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 528.95 64.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 491.95 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 491.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 491.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 491.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 491.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 491.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 491.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 491.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 491.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 491.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 463.95 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 463.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 463.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 463.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 463.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 463.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 463.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 463.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 463.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 463.95 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 426.95 168.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 426.95 64.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 426.95 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 426.95 64.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 426.95 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 426.95 64.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 426.95 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 426.95 64.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 426.95 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 426.95 64.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 649.95 m 268.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 649.95 m 272.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 649.95 m 336.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 649.95 m 340.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 649.95 m 404.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 649.95 m 408.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 649.95 m 472.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 649.95 m 476.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 649.95 m 540.5 649.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 635.95 m 268.5 635.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 635.95 m 336.5 635.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 635.95 m 404.5 635.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 635.95 m 472.5 635.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 635.95 m 540.5 635.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 281.05 654.90 Td (As of or for the ) Tj ET Q q 0 0 0 rg BT 347.97 654.90 Td (Y) Tj ET Q q 0 0 0 rg BT 353.64 654.90 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.95 640.35 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.95 640.35 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.95 640.35 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 429.95 640.35 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.95 640.35 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 297.95 626.90 Td (\(in millions, except per share data\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 612.35 Td (Statement of operations data:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 598.35 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 598.35 Td (otal operating revenues and other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 589.35 Td (income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 589.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 589.35 Td (2,067.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 589.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.95 589.35 Td (1,129.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 589.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.95 589.35 Td (1,217.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 589.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.95 589.35 Td (1,557.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 589.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.95 589.35 Td (2,522.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 575.35 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 575.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.45 575.35 Td (508.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 575.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.45 575.35 Td (\(160.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 575.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 575.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.45 575.35 Td (\(757.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 575.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 575.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.45 575.35 Td (\(447.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 575.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 575.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.45 575.35 Td (666.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 561.35 Td (Net income \(loss\) per share:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 547.35 Td (Basic) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 547.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 247.45 547.35 Td (4.54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 547.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.45 547.35 Td (\(1.44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 547.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 547.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.45 547.35 Td (\(9.90) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 547.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 547.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.45 547.35 Td (\(6.61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 547.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 547.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 547.35 Td (9.91) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 533.35 Td (Diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 533.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 247.45 533.35 Td (4.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 533.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.45 533.35 Td (\(1.44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 533.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 533.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.45 533.35 Td (\(9.90) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 533.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 533.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.45 533.35 Td (\(6.61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.00 533.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 533.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 533.35 Td (9.79) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 519.35 Td (Cash dividends declared and paid per) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 510.35 Td (common share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 510.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 247.45 510.35 Td (0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 510.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.45 510.35 Td (0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 510.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.45 510.35 Td (0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 510.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.45 510.35 Td (0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 510.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 510.35 Td (0.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 496.35 Td (Balance sheet data:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 482.35 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 482.35 Td (otal assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 482.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 482.35 Td (6,352.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 482.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.95 482.35 Td (6,176.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 482.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.95 482.35 Td (6,393.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 482.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.95 482.35 Td (5,621.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 482.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.95 482.35 Td (6,483.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 468.35 Td (Long-term debt:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 454.35 Td (Revolving credit facility) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 454.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.00 454.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 454.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.00 454.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 454.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.00 454.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 454.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.45 454.35 Td (202.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 454.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.45 454.90 Td (166.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 440.35 Td (Senior Notes, net of unamortized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 431.35 Td (deferred financing costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 431.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.95 431.35 Td (2,448.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 431.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.95 431.35 Td (2,769.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 431.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.95 431.35 Td (2,766.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.00 431.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.95 431.35 Td (2,316.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 431.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.95 431.35 Td (2,166.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 417.35 Td (Senior 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/GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 417.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 417.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 417.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 389.50 211.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 389.50 55.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 389.50 4.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 389.50 55.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 389.50 4.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 389.50 55.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 389.50 4.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 389.50 55.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 389.50 4.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 389.50 55.00 -8.00 re f /GS0 gs 0.8 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1 rg /GS0 gs 483.50 283.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 255.50 211.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 255.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 255.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 255.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 255.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 255.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 255.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 255.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 255.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 255.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 218.50 211.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 218.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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/GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 162.50 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 714.5 m 302.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 714.5 m 306.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 714.5 m 361.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 714.5 m 365.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 714.5 m 420.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 714.5 m 424.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 714.5 m 479.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 714.5 m 483.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 714.5 m 538.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 700.5 m 302.5 700.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 700.5 m 361.5 700.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 700.5 m 420.5 700.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 700.5 m 479.5 700.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 700.5 m 538.5 700.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 560.5 m 302.5 560.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 547.5 m 302.5 547.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 545.5 m 302.5 545.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 560.5 m 361.5 560.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 547.5 m 361.5 547.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 545.5 m 361.5 545.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 560.5 m 420.5 560.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 547.5 m 420.5 547.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 545.5 m 420.5 545.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 560.5 m 479.5 560.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 547.5 m 479.5 547.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 545.5 m 479.5 545.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 560.5 m 538.5 560.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 547.5 m 538.5 547.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 545.5 m 538.5 545.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 403.5 m 302.5 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 390.5 m 302.5 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 388.5 m 302.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 403.5 m 361.5 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 390.5 m 361.5 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 388.5 m 361.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 403.5 m 420.5 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 390.5 m 420.5 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 388.5 m 420.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 403.5 m 479.5 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 390.5 m 479.5 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 388.5 m 479.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 403.5 m 538.5 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 390.5 m 538.5 390.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 388.5 m 538.5 388.5 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 736.90 Td (Supplemental Selected Financial and Operations Data) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 301.55 718.90 Td (As of or for the ) Tj ET Q q 0 0 0 rg BT 368.47 718.90 Td (Y) Tj ET Q q 0 0 0 rg BT 374.14 718.90 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 264.45 704.90 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 704.90 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 704.90 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.45 704.90 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.45 704.90 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 690.90 Td (Balance sheet data \(in millions\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 676.90 Td (T) Tj ET Q q 0 0 0 rg BT 59.00 676.90 Td (otal working capital \(deficit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 676.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.45 676.90 Td (\(36.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.00 676.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 676.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.45 676.90 Td (\(10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 676.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 676.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.45 676.90 Td (\(190.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 676.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 676.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 676.90 Td (216.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 676.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.45 676.90 Td (\(39.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.00 676.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 662.90 Td (T) Tj ET Q q 0 0 0 rg BT 58.50 662.90 Td (otal stockholders’) Tj ET Q q 0 0 0 rg BT 127.70 662.90 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 662.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.95 662.90 Td (2,920.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 662.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.95 662.90 Td (2,394.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 662.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.95 662.90 Td (2,497.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 662.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.95 662.90 Td (1,852.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 662.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 662.90 Td (2,286.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 648.90 Td (W) Tj ET Q q 0 0 0 rg BT 47.41 648.90 Td (eighted-average common shares outstanding \(in thousands\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 634.90 Td (Basic) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.45 634.90 Td (1) Tj ET Q q 0 0 0 rg BT 271.46 634.90 Td (1) Tj ET Q q 0 0 0 rg BT 276.46 634.90 Td (1,912) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.45 634.90 Td (1) Tj ET Q q 0 0 0 rg BT 330.46 634.90 Td (1) Tj ET Q q 0 0 0 rg BT 335.46 634.90 Td (1,428) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.45 634.90 Td (76,568) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.45 634.90 Td (67,723) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.45 634.90 Td (67,230) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 620.90 Td (Diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.45 620.90 Td (1) Tj ET Q q 0 0 0 rg BT 271.46 620.90 Td (13,502) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.45 620.90 Td (1) Tj ET Q q 0 0 0 rg BT 330.46 620.90 Td (1) Tj ET Q q 0 0 0 rg BT 335.46 620.90 Td (1,428) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.45 620.90 Td (76,568) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.45 620.90 Td (67,723) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.45 620.90 Td (68,044) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 606.90 Td (Reserves:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 592.90 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 592.90 Td (175.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 592.90 Td (158.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 592.90 Td (104.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 592.90 Td (145.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 592.90 Td (169.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 578.90 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.95 578.90 Td (1,321.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.95 578.90 Td (1,280.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.95 578.90 Td (1,1) Tj ET Q q 0 0 0 rg BT 399.46 578.90 Td (1) Tj ET Q q 0 0 0 rg BT 404.47 578.90 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.95 578.90 Td (1,264.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 578.90 Td (1,466.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 564.90 Td ( NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 564.90 Td (107.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 564.90 Td (96.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 564.90 Td (105.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 564.90 Td (1) Tj ET Q q 0 0 0 rg BT 458.46 564.90 Td (15.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 564.90 Td (133.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 550.90 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 90.50 555.19 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 550.90 Td (503.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 550.90 Td (468.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 550.90 Td (395.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 550.90 Td (471.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 550.90 Td (547.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 528.90 Td (Production and operations \(in millions\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 514.90 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 125.20 514.90 Td ( production revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 514.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.95 514.90 Td (1,636.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 514.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.95 514.90 Td (1,253.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 514.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.95 514.90 Td (1,178.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 514.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.95 514.90 Td (1,499.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 514.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 514.90 Td (2,481.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 500.90 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 125.20 500.90 Td ( production expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 500.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 500.90 Td (487.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 500.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 500.90 Td (507.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 500.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 500.90 Td (597.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 500.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 500.90 Td (723.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 500.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 500.90 Td (715.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 486.90 Td (Depletion, depreciation, amortization, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 477.90 Td (asset retirement obligation liability accretion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 477.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 477.90 Td (665.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 477.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 477.90 Td (557.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 477.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 477.90 Td (790.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 477.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 477.90 Td (921.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 477.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 477.90 Td (767.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 463.90 Td (General and administrative ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 164.06 468.19 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 463.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 463.90 Td (1) Tj ET Q q 0 0 0 rg BT 281.46 463.90 Td (16.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 463.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 463.90 Td (1) Tj ET Q q 0 0 0 rg BT 340.46 463.90 Td (17.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 463.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 463.90 Td (124.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 463.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 463.90 Td (156.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 463.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 463.90 Td (166.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 449.90 Td (Production volumes:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 435.90 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 435.90 Td (18.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 435.90 Td (13.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 435.90 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 435.90 Td (19.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 435.90 Td (16.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 421.90 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 421.90 Td (103.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 421.90 Td (123.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 421.90 Td (146.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 421.90 Td (173.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 421.90 Td (152.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 407.90 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.45 407.90 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 407.90 Td (10.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 407.90 Td (14.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 407.90 Td (16.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 407.90 Td (13.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 393.90 Td (MMBOE ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 90.50 398.19 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 393.90 Td (43.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 393.90 Td (44.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 393.90 Td (55.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 393.90 Td (64.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 393.90 Td (55.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 371.90 Td (Realized price, before the effect of derivative settlements:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 357.90 Td (Oil \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 357.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 357.90 Td (56.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 357.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 357.90 Td (47.88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 357.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 357.90 Td (36.85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 357.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 357.90 Td (41.49) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 357.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 357.90 Td (80.97) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 343.90 Td (Gas \(per Mcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 343.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 343.90 Td (3.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 343.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 343.90 Td (3.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 343.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 343.90 Td (2.30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 343.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 343.90 Td (2.57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 343.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 343.90 Td (4.58) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 329.90 Td (NGLs \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 329.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 329.90 Td (27.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 329.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 329.90 Td (22.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 329.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 329.90 Td (16.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 329.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 329.90 Td (15.92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 329.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 329.90 Td (33.34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 315.90 Td (Per BOE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 315.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 315.90 Td (37.27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 315.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 315.90 Td (28.20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 315.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 315.90 Td (21.32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 315.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 315.90 Td (23.36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 315.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 315.90 Td (45.01) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 301.90 Td (Expense per BOE:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 287.90 Td (Lease operating expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 287.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 287.90 Td (4.74) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 287.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 287.90 Td (4.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 287.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 287.90 Td (3.51) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 287.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 287.90 Td (3.73) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 287.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 287.90 Td (4.28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 273.90 Td (T) Tj ET Q q 0 0 0 rg BT 59.33 273.90 Td (ransportation costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 273.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 273.90 Td (4.36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 273.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 273.90 Td (5.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 273.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 273.90 Td (6.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 273.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 273.90 Td (6.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 273.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 273.90 Td (6.1) Tj ET Q q 0 0 0 rg BT 529.96 273.90 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 259.90 Td (Production taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 259.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 259.90 Td (1.52) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 259.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 259.90 Td (1.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 259.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 259.90 Td (0.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 259.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 259.90 Td (1.13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 259.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 259.90 Td (2.13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 245.90 Td (Ad valorem tax expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 245.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 245.90 Td (0.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 245.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 245.90 Td (0.34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 245.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 245.90 Td (0.21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 245.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 245.90 Td (0.39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 245.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 245.90 Td (0.46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 231.90 Td (Depletion, depreciation, amortization, and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 222.90 Td (asset retirement obligation liability accretion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 222.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 222.90 Td (15.15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 222.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 222.90 Td (12.53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 222.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 222.90 Td (14.30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 222.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 222.90 Td (14.34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 222.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 222.90 Td (13.92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 208.90 Td (General and administrative ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 164.06 213.19 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 208.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.45 208.90 Td (2.65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 208.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 208.90 Td (2.64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 208.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.45 208.90 Td (2.26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 208.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.45 208.90 Td (2.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 208.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.45 208.90 Td (3.02) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 41.00 194.90 Td (Statement of cash flows data \(in millions\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 180.90 Td (Provided by operating activities ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 181.07 185.19 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 180.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.45 180.90 Td (720.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 180.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.45 180.90 Td (515.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 180.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.45 180.90 Td (552.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 180.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 180.90 Td (990.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 180.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.95 180.90 Td (1,456.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 166.90 Td (Used in investing activities ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 162.05 171.19 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 166.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.45 166.90 Td (\(587.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.00 166.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 166.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.45 166.90 Td (\(201.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 166.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 166.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.95 166.90 Td (\(1,867.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 166.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 166.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.95 166.90 Td (\(1,144.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.00 166.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 166.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.95 166.90 Td (\(2,575.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.00 166.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 152.90 Td (Provided by \(used in\) financing activities ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 217.08 157.19 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.00 152.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.45 152.90 Td (\(368.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.00 152.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.00 152.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.45 152.90 Td (\(12.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.00 152.90 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 152.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.95 152.90 Td (1,327.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 152.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.45 152.90 Td (153.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 152.90 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.45 152.90 Td (740.0) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 141.80 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 134.29 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 130.00 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 123.49 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 119.20 Td (Certain prior period amounts have been reclassified to conform to the current period presentation on the consolidated financial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 108.45 Td (statements. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 166.55 108.45 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 232.75 108.45 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.81 108.45 Td ( in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 332.82 108.45 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 464.04 108.45 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.08 108.45 Td ( of Part ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 97.65 Td (II, Item 8 for additional discussion of the change in presentation as a result of adopting new accounting standards.) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (44) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (ITEM 7. ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td ( MANAGEMENT’S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 209.18 740.45 Td (AND ) Tj ET Q q 0 0 0 rg BT 230.84 740.45 Td (ANAL) Tj ET Q q 0 0 0 rg BT 255.01 740.45 Td (YSIS OF FINANCIAL) Tj ET Q q 0 0 0 rg BT 341.35 740.45 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 396.51 740.45 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 448.35 740.45 Td (TS OF OPERA) Tj ET Q q 0 0 0 rg BT 508.68 740.45 Td (TIONS ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 717.65 Td (This discussion includes forward-looking statements. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 348.13 717.65 Td (Cautionary Information about Forward-Looking ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (Statements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.52 706.85 Td ( in Part I, Items 1 and 2 of this report for important information about these types of statements.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 684.05 Td (Overview of the Company) Tj ET Q BT /F3 9.00 Tf ET BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 661.25 Td (General Overview) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 638.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 638.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 638.45 Td (e are an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 627.65 Td (NGLs in onshore North ) Tj ET Q q 0 0 0 rg BT 130.05 627.65 Td (America. W) Tj ET Q q 0 0 0 rg BT 178.89 627.65 Td (e currently have producing assets and significant acreage positions in the Midland Basin and Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 616.85 Td (Ford shale in ) Tj ET Q q 0 0 0 rg BT 90.36 616.85 Td (T) Tj ET Q q 0 0 0 rg BT 94.86 616.85 Td (exas. Our strategic objective is to be a premier operator of top tier assets. W) Tj ET Q q 0 0 0 rg BT 403.33 616.85 Td (e seek to maximize the value of our assets ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 606.05 Td (by applying industry leading technology and outstanding operational execution. Our portfolio is comprised of unconventional resource ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 595.25 Td (prospects with expanding prospective drilling opportunities, which we believe provides for long-term production and reserves growth. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 584.45 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 584.45 Td (e are focused on generating strong full-cycle economic returns on our investments and maintaining a strong balance sheet.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 561.65 Td (2018 Financial and Operational Highlights) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 538.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 538.85 Td (Our objective to be a premier operator of top tier assets led to our multi-year portfolio transformation, which now allows us to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 528.05 Td (focus solely on maximizing the value of our core acreage positions located in the Midland Basin and Eagle Ford shale. ) Tj ET Q q 0 0 0 rg BT 510.77 528.05 Td (As part of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 517.25 Td (transformation strategy) Tj ET Q q 0 0 0 rg BT 127.37 517.25 Td (, we completed divestitures of substantially all remaining non-core assets in the first half of 2018. W) Tj ET Q q 0 0 0 rg BT 524.90 517.25 Td (e used ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 506.45 Td (proceeds from these divestitures, along with operating cash flows, to fully fund our 2018 capital program and to meaningfully reduce our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 495.65 Td (long-term debt. ) Tj ET Q q 0 0 0 rg BT 101.03 495.65 Td (Additionally) Tj ET Q q 0 0 0 rg BT 146.40 495.65 Td (, we completed financial transactions during the year that extended the average maturity on our remaining ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 484.85 Td (long-term debt, and we had no outstanding borrowings against our credit facility as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.20 484.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.24 484.85 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 524.78 484.85 Td (Note 3 – ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 474.05 Td (Divestitures, ) Tj ET Q q 0 0 0 rg BT 87.68 474.05 Td (Assets Held for Sale, and ) Tj ET Q q 0 0 0 rg BT 191.40 474.05 Td (Acquisitions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.42 474.05 Td ( and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 259.44 474.05 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 323.65 474.05 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.66 474.05 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 463.25 Td (discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 440.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 440.45 Td (Financial and Operational Results. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.58 440.45 Td (During the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.14 440.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.19 440.45 Td (, we achieved the following financial and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 429.65 Td (operational results:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 406.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 406.85 Td (T) Tj ET Q q 0 0 0 rg BT 94.50 406.85 Td (otal estimated proved reserves increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 261.58 406.85 Td (eight percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.62 406.85 Td ( from the prior year to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.15 406.85 Td (503.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.67 406.85 Td ( MMBOE as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.69 406.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.74 406.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 396.05 Td (of which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 125.52 396.05 Td (56 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 168.05 396.05 Td ( were liquids \(oil and NGLs\) and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.61 396.05 Td (49 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.14 396.05 Td ( were characterized as proved developed. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.25 396.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 562.27 396.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 385.25 Td (we added ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.53 385.25 Td (188.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.05 385.25 Td ( MMBOE through our Midland Basin and Eagle Ford shale drilling programs as well as from changes to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 374.45 Td (our future development strategy in the Eagle Ford shale, which includes wider spacing and longer lateral completions. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 363.65 Td (These positive results for 2018 were partially of) Tj ET Q q 0 0 0 rg BT 277.93 363.65 Td (fset by the divestiture of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.48 363.65 Td (40.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.99 363.65 Td ( MMBOE of estimated proved reserves, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 352.85 Td (net downward revisions of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.55 352.85 Td (68.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 214.07 352.85 Td ( MMBOE, which resulted primarily from changes in our development plans in our Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 342.05 Td (Ford shale program. On a retained asset basis, estimated proved reserves increased 18 percent year-over-year) Tj ET Q q 0 0 0 rg BT 536.22 342.05 Td (. Further) Tj ET Q q 0 0 0 rg BT 572.23 342.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 331.25 Td (our estimated proved reserve life index ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 247.58 331.25 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.60 331.25 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.11 331.25 Td (1) Tj ET Q q 0 0 0 rg BT 303.45 331.25 Td (1.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.96 331.25 Td ( years at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.97 331.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.02 331.25 Td (, compared to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.55 331.25 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.07 331.25 Td ( years at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 320.45 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.05 320.45 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 237.58 320.45 Td (Reserves) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 275.59 320.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.09 320.45 Td (in Part I, Items 1 and 2 of this report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 297.65 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 297.65 Td (The standardized measure of discounted future net cash flows was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.15 297.65 Td ($4.7 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.18 297.65 Td ( as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.69 297.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.74 297.65 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 286.85 Td ($3.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.03 286.85 Td ( as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 157.54 286.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.59 286.85 Td (, which was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.61 286.85 Td (an increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.14 286.85 Td ( of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.65 286.85 Td (54 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.18 286.85 Td ( year-over-year) Tj ET Q q 0 0 0 rg BT 447.70 286.85 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 516.23 286.85 Td (Supplemental ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 276.05 Td (Oil and Gas Information) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.04 276.05 Td ( in Part II, Item 8 of this report for additional discussion. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 253.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 253.25 Td (A) Tj ET Q q 0 0 0 rg BT 95.84 253.25 Td (verage net daily production for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.96 253.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 361.01 253.25 Td (, was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 384.52 253.25 Td (120.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.04 253.25 Td ( MBOE, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.07 253.25 Td (121.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.59 253.25 Td ( MBOE for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 242.45 Td (the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 166.54 242.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 186.57 242.45 Td (. ) Tj ET Q q 0 0 0 rg BT 193.90 242.45 Td (This decrease was driven largely by producing property divestitures in 2017 and in the first half ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 231.65 Td (of 2018. On a retained asset basis, production increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.64 231.65 Td (1) Tj ET Q q 0 0 0 rg BT 324.98 231.65 Td (1 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.50 231.65 Td ( year-over-year) Tj ET Q q 0 0 0 rg BT 423.03 231.65 Td (, which was due to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.07 231.65 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.60 231.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 220.85 Td (increase in production volumes in our Permian region for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.66 220.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.71 220.85 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.74 220.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.76 220.85 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 210.05 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 151.03 210.05 Td (A) Tj ET Q q 0 0 0 rg BT 156.70 210.05 Td ( ) Tj ET Q q 0 0 0 rg BT 159.04 210.05 Td (Y) Tj ET Q q 0 0 0 rg BT 164.54 210.05 Td (ear) Tj ET Q q 0 0 0 rg BT 177.39 210.05 Td (-to-Y) Tj ET Q q 0 0 0 rg BT 196.40 210.05 Td (ear Overview of Selected Production and Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 494.38 210.05 Td (rends) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.90 210.05 Td ( below for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 199.25 Td (additional discussion on production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 176.45 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 176.45 Td (W) Tj ET Q q 0 0 0 rg BT 98.33 176.45 Td (e recorded net income of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.39 176.45 Td ($508.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.92 176.45 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.43 176.45 Td ($4.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.95 176.45 Td ( per diluted share, for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.05 176.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.09 176.45 Td (. ) Tj ET Q q 0 0 0 rg BT 530.43 176.45 Td (This ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 165.65 Td (compares with a net loss of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 201.55 165.65 Td ($160.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.08 165.65 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.59 165.65 Td ($1.44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.11 165.65 Td ( per diluted share, for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.21 165.65 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.25 165.65 Td (. Please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 154.85 Td (refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 121.01 154.85 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 275.41 154.85 Td (rends Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 515.61 154.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.12 154.85 Td (below for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 144.05 Td (additional discussion regarding the components of net income \(loss\) for each period presented.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 121.25 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 121.25 Td (Net cash provided by operating activities was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.59 121.25 Td ($720.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.13 121.25 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.18 121.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.23 121.25 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 110.45 Td ($515.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.53 110.45 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 223.58 110.45 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.63 110.45 Td (, which was an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.16 110.45 Td (increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.18 110.45 Td ( of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.69 110.45 Td (40 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.22 110.45 Td ( year-over-year) Tj ET Q q 0 0 0 rg BT 513.74 110.45 Td (. ) Tj ET Q q 0 0 0 rg BT 521.08 110.45 Td (The increase ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 99.65 Td (in net cash provided by operating activities for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.10 99.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.12 99.65 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 361.15 99.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.17 99.65 Td (, was primarily the result of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.71 99.65 Td (37 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.24 99.65 Td ( growth in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 88.85 Td (higher margin oil production, which, combined with increased benchmark pricing for oil and NGLs, drove a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.21 88.85 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 556.74 88.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 78.05 Td (increase in our realized price per BOE before the ef) Tj ET Q q 0 0 0 rg BT 294.95 78.05 Td (fects of derivative settlements, and led to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.04 78.05 Td (31 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.57 78.05 Td ( increase in oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 67.25 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 145.20 67.25 Td ( production revenue. Partially of) Tj ET Q q 0 0 0 rg BT 274.11 67.25 Td (fsetting the increase from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 446.86 67.25 Td ( production revenue was a cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 56.45 Td (settlement loss on derivatives of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 220.56 56.45 Td ($135.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.10 56.45 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.15 56.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.20 56.45 Td (, compared to a cash settlement ) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 740.45 Td (gain on derivatives of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.55 740.45 Td ($21.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.08 740.45 Td ( during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.10 740.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.12 740.45 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 346.65 740.45 Td (Analysis of Cash Flow Changes Between 2018 and 2017 ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 729.65 Td (and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 205.10 729.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.60 729.65 Td (below for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 706.85 Td (• ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 706.85 Td (Adjusted EBITDAX, a non-GAAP) Tj ET Q q 0 0 0 rg BT 221.40 706.85 Td ( financial measure, for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.99 706.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.04 706.85 Td (, was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.54 706.85 Td ($900.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.08 706.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 696.05 Td (compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.03 696.05 Td ($663.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.56 696.05 Td ( for the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.61 696.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.63 696.05 Td (. ) Tj ET Q q 0 0 0 rg BT 325.97 696.05 Td (The increase in adjusted EBITDAX for 2018 was largely driven ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 685.25 Td (by the growth in higher margin oil production and improved benchmark pricing for oil and NGLs. ) Tj ET Q q 0 0 0 rg BT 475.04 685.25 Td (This increase was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 674.45 Td (partially of) Tj ET Q q 0 0 0 rg BT 130.86 674.45 Td (fset by increased losses on derivative settlements. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 397.49 674.45 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 441.67 674.45 Td ( Financial Measures) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 522.20 674.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.70 674.45 Td (below for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 663.65 Td (additional discussion, including our definition of adjusted EBITDAX and reconciliations to our net income \(loss\) and net ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 652.85 Td (cash provided by operating activities.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 630.05 Td (Long-T) Tj ET Q q 0 0 0 rg BT 99.69 630.05 Td (erm Debt. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.20 630.05 Td (During the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.76 630.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.81 630.05 Td (, we executed certain long-term debt transactions and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (agreements, which are summarized below:) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 602.45 Td (• ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 602.45 Td (2021 Senior Notes Redemption. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 223.08 602.45 Td (On July 16, 2018, we redeemed the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.17 602.45 Td ($344.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.70 602.45 Td ( principal outstanding of our 2021 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 591.65 Td (Senior Notes using cash on hand resulting from property divestitures. Redemption of the 2021 Senior Notes resulted in a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 580.85 Td (loss on extinguishment of debt of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.08 580.85 Td ($9.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.60 580.85 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.66 580.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.70 580.85 Td (. ) Tj ET Q q 0 0 0 rg BT 434.04 580.85 Td (This loss included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.08 580.85 Td ($7.5 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.60 580.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 570.05 Td (associated with the premium paid and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.58 570.05 Td ($2.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.11 570.05 Td ( due to the acceleration of previously unamortized deferred financing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 559.25 Td (costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 542.45 Td (• ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 542.45 Td (2027 Senior Notes Issuance. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.57 542.45 Td (On ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.58 542.45 Td (August 20, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.14 542.45 Td (, we issued ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.66 542.45 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.19 542.45 Td ( in aggregate principal amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.78 542.45 Td (6.625%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.30 542.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 531.65 Td (Senior Notes due 2027 and received net proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.14 531.65 Td ($492.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.68 531.65 Td (. ) Tj ET Q q 0 0 0 rg BT 366.02 531.65 Td (This of) Tj ET Q q 0 0 0 rg BT 392.86 531.65 Td (fering was made in order to fund the tender ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 520.85 Td (of) Tj ET Q q 0 0 0 rg BT 97.34 520.85 Td (fer and notes redemption discussed below) Tj ET Q q 0 0 0 rg BT 265.45 520.85 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 504.05 Td (• ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 504.05 Td (T) Tj ET Q q 0 0 0 rg BT 94.67 504.05 Td (ender Offer and Redemption of our 2023 Senior Notes and a Portion of our 2022 Senior Notes. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.41 504.05 Td (Concurrently with our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 493.25 Td (2027 Senior Notes of) Tj ET Q q 0 0 0 rg BT 174.39 493.25 Td (fering, we announced a cash tender of) Tj ET Q q 0 0 0 rg BT 327.34 493.25 Td (fer \(the “T) Tj ET Q q 0 0 0 rg BT 365.84 493.25 Td (ender Of) Tj ET Q q 0 0 0 rg BT 400.70 493.25 Td (fer”\), which included plans to redeem our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 482.45 Td (2023 Senior Notes and a portion of our 2022 Senior Notes. Upon completion of these transactions, we retired the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.77 482.45 Td ($395.0 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 471.65 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.51 471.65 Td ( principal outstanding of our 2023 Senior Notes and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.14 471.65 Td ($85.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.67 471.65 Td ( principal outstanding of our 2022 Senior Notes. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 460.85 Td (W) Tj ET Q q 0 0 0 rg BT 98.33 460.85 Td (e paid total consideration, including accrued interest, of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.47 460.85 Td ($497.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.00 460.85 Td ( to complete these transactions, which resulted in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 450.05 Td (a loss on extinguishment of debt of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.59 450.05 Td ($16.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.12 450.05 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.17 450.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.22 450.05 Td (. ) Tj ET Q q 0 0 0 rg BT 446.55 450.05 Td (This amount included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.60 450.05 Td ($12.9 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 439.25 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.51 439.25 Td ( associated with premiums paid and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 261.08 439.25 Td ($4.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.60 439.25 Td ( due to the acceleration of previously unamortized deferred ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 428.45 Td (financing costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 411.65 Td (• ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 90.00 411.65 Td (Credit ) Tj ET Q q 0 0 0 rg BT 116.17 411.65 Td (Agreement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 162.70 411.65 Td ( On ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 182.21 411.65 Td (September 28, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.76 411.65 Td (, we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 373.83 411.65 Td (Agreement with our lenders which provides for a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 400.85 Td (senior secured revolving credit facility with a maximum loan amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.62 400.85 Td ($2.5 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.65 400.85 Td (, an initial borrowing base of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.22 400.85 Td ($1.5 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 572.25 400.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 390.05 Td (and initial aggregate lender commitments totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.61 390.05 Td ($1.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.64 390.05 Td (. ) Tj ET Q q 0 0 0 rg BT 338.98 390.05 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 383.00 390.05 Td (Agreement is scheduled to mature on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 379.25 Td (September 28, 2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.56 379.25 Td (. ) Tj ET Q q 0 0 0 rg BT 178.90 379.25 Td (The maturity date could, however) Tj ET Q q 0 0 0 rg BT 311.47 379.25 Td (, occur earlier on ) Tj ET Q q 0 0 0 rg BT 380.50 379.25 Td (August 16, 2022, to the extent we have not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 368.45 Td (completed certain repurchase, redemption, or refinancing activities associated with our 2022 Senior Notes as outlined in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.00 357.65 Td (the Credit ) Tj ET Q q 0 0 0 rg BT 131.02 357.65 Td (Agreement.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 340.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 340.85 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 340.85 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.62 340.85 Td ( below and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 355.65 340.85 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 419.86 340.85 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.87 340.85 Td ( in Part II, Item 8 of this report ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 330.05 Td (for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 307.25 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 307.25 Td (Operational ) Tj ET Q q 0 0 0 rg BT 120.70 307.25 Td (Activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.20 307.25 Td (. ) Tj ET Q q 0 0 0 rg BT 163.54 307.25 Td (The value of the RockStar area of our Midland Basin position continues to exceed our pre-acquisition ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 296.45 Td (expectations and was key to driving significant growth in our operating margin and cash flows from operations in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.24 296.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.26 296.45 Td ( due to the high ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 285.65 Td (percentage of oil these wells produce. Our operational execution and development strategy in this region has resulted in stronger well ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 274.85 Td (performance due to enhanced completion design and our ability to drill longer laterals given the increasingly contiguous nature of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 264.05 Td (acreage position as a result of successful infill leasing and acreage trades. Ef) Tj ET Q q 0 0 0 rg BT 345.51 264.05 Td (ficiency in completions and operations also increased in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 253.25 Td (2018, as a large portion of our water transportation and disposal needs are being satisfied by the water facilities we constructed in a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 242.45 Td (core area of our RockStar acreage. W) Tj ET Q q 0 0 0 rg BT 189.91 242.45 Td (e also continued to increase our use of locally sourced sand in our well completions, which has ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 231.65 Td (resulted in further cost savings and improved returns for our program. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 208.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 208.85 Td (In our Midland Basin program, we averaged seven drilling rigs and four completion crews during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.20 208.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.22 208.85 Td (, focusing on the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 198.05 Td (development of the Lower Spraberry and W) Tj ET Q q 0 0 0 rg BT 209.93 198.05 Td (olfcamp ) Tj ET Q q 0 0 0 rg BT 243.45 198.05 Td (A) Tj ET Q q 0 0 0 rg BT 248.95 198.05 Td ( and B shale intervals on our RockStar acreage in Howard and Martin Counties, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 187.25 Td (T) Tj ET Q q 0 0 0 rg BT 40.50 187.25 Td (exas, as well as our Sweetie Peck acreage in Upton and Midland Counties, ) Tj ET Q q 0 0 0 rg BT 342.00 187.25 Td (T) Tj ET Q q 0 0 0 rg BT 346.50 187.25 Td (exas. W) Tj ET Q q 0 0 0 rg BT 381.35 187.25 Td (e completed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.88 187.25 Td (1) Tj ET Q q 0 0 0 rg BT 437.22 187.25 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.23 187.25 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.23 187.25 Td (104) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.25 187.25 Td ( net\) operated wells ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 176.45 Td (during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.52 176.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.54 176.45 Td ( and increased production volumes year-over-year by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.65 176.45 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.18 176.45 Td ( to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.69 176.45 Td (20.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.20 176.45 Td ( MMBOE, 79 percent of which was oil. 84 percent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 165.65 Td (of our total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.03 165.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.05 165.65 Td ( drilling and completion capital was allocated to our Midland Basin program.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 142.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 142.85 Td (During 2018 in our operated Eagle Ford shale program, we were focused on increasing overall inventory value through ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 132.05 Td (optimizing our completion designs and by evaluating our development strategy and electing to revise our development plans to include ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 121.25 Td (wider spaced locations and longer lateral well completions that we believe will yield greater returns. W) Tj ET Q q 0 0 0 rg BT 443.54 121.25 Td (e have also been active in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 110.45 Td (assessing new intervals outside of the core Eagle Ford shale formation to further expand our future drilling inventory) Tj ET Q q 0 0 0 rg BT 496.58 110.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 87.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 87.65 Td (In September 2017, we entered into a joint venture agreement with a third-party to drill 16 wells and complete 23 wells in a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 76.85 Td (focused portion of our Eagle Ford North area \(“Phase 1 JV”\). In December 2018, we extended this agreement and added an additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 66.05 Td (12 wells to be drilled and completed \(“Phase 2 JV”\). ) Tj ET Q q 0 0 0 rg BT 246.94 66.05 Td (The agreement provides that the third-party carries substantially all drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 55.25 Td (completion costs and receives a majority of the working and revenue interest in these wells until certain payout thresholds are reached. ) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (This arrangement allows us to leverage third-party capital to prove up the value of our Eagle Ford North area, while also allowing us to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (test cutting edge technology) Tj ET Q q 0 0 0 rg BT 147.41 729.65 Td (, capture additional technical data, satisfy certain lease obligations, and potentially expand economic drilling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (inventory in the future. ) Tj ET Q q 0 0 0 rg BT 129.56 718.85 Td (All Phase 1 JV wells were drilled and completed as of December 31, 2018. Six of the 12 Phase 2 JV wells were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (drilled during 2018, and we expect the remaining six wells to be drilled and all 12 wells to be completed during 2019.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 684.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 684.05 Td (Our Eagle Ford shale program averaged ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.09 684.05 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.10 684.05 Td ( drilling rig and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.13 684.05 Td (one) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.15 684.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.65 684.05 Td (completion crew during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.70 684.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.72 684.05 Td (. W) Tj ET Q q 0 0 0 rg BT 460.55 684.05 Td (e completed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 512.08 684.05 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.09 684.05 Td ( gross \() Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.10 684.05 Td (26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 562.11 684.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 673.25 Td (net\) wells during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.03 673.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 124.05 673.25 Td (. ) Tj ET Q q 0 0 0 rg BT 131.39 673.25 Td (T) Tj ET Q q 0 0 0 rg BT 135.89 673.25 Td (otal production for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.44 673.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.46 673.25 Td ( was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.46 673.25 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.98 673.25 Td ( MMBOE, a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.99 673.25 Td (26 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.52 673.25 Td ( decrease from 2017. ) Tj ET Q q 0 0 0 rg BT 450.40 673.25 Td (The decrease in production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 662.45 Td (from our Eagle Ford shale program was primarily driven by the sale of our outside-operated assets in the first quarter of 2017 and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (reduced capital investment on our retained operated acreage. 14 percent of our total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.72 651.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.74 651.65 Td ( drilling and completion capital was allocated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (to our Eagle Ford shale program.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 619.25 Td (The table below provides a summary of changes in our drilled but not completed well count and current year drilling and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (completion activity in our operated programs for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.14 608.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.19 608.45 Td (. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 560.95 232.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 537.50 560.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 541.50 560.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 532.95 232.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 537.50 532.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 541.50 532.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 504.95 232.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 504.95 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 537.50 504.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 541.50 504.95 35.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 574.95 m 303.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303.5 574.95 m 307.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 574.95 m 342.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 574.95 m 381.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 574.95 m 385.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 574.95 m 420.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 574.95 m 459.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 574.95 m 463.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 574.95 m 498.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 574.95 m 537.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 537.5 574.95 m 541.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 574.95 m 576.5 574.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 560.95 m 303.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 560.95 m 342.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 560.95 m 381.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 560.95 m 420.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 560.95 m 459.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 560.95 m 498.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 560.95 m 537.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 560.95 m 576.5 560.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 490.95 m 303.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 490.95 m 342.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 490.95 m 381.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 490.95 m 420.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 490.95 m 459.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 490.95 m 498.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 490.95 m 537.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 490.95 m 576.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 490.95 m 303.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 477.95 m 303.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 475.95 m 303.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 490.95 m 342.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 477.95 m 342.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 475.95 m 342.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 490.95 m 381.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 477.95 m 381.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 475.95 m 381.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 490.95 m 420.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 477.95 m 420.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 475.95 m 420.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 490.95 m 459.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 477.95 m 459.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 475.95 m 459.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 490.95 m 498.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 477.95 m 498.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 475.95 m 498.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 490.95 m 537.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 477.95 m 537.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 475.95 m 537.5 475.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 490.95 m 576.5 490.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 477.95 m 576.5 477.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 541.5 475.95 m 576.5 475.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 287.20 579.35 Td (Permian) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 352.05 588.35 Td (South T) Tj ET Q q 0 0 0 rg BT 385.21 588.35 Td (exas &) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 360.20 579.35 Td (Gulf Coast) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 431.45 588.35 Td (Bakken/Three ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.90 579.35 Td (Forks ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 470.91 583.64 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.55 579.35 Td (T) Tj ET Q q 0 0 0 rg BT 533.71 579.35 Td (otal) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 272.45 565.35 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.20 565.35 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 350.45 565.35 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.20 565.35 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.45 565.35 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.20 565.35 Td (Net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 506.45 565.35 Td (Gross) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 551.20 565.35 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 551.35 Td (W) Tj ET Q q 0 0 0 rg BT 47.41 551.35 Td (ells drilled but not completed at December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.95 551.35 Td (49) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.95 551.35 Td (41) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.95 551.35 Td (33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.95 551.35 Td (30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.95 551.35 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.95 551.35 Td (15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.95 551.35 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 562.95 551.35 Td (86) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 537.35 Td (W) Tj ET Q q 0 0 0 rg BT 59.41 537.35 Td (ells drilled) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.95 537.35 Td (126) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.95 537.35 Td (1) Tj ET Q q 0 0 0 rg BT 328.96 537.35 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.95 537.35 Td (36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.95 537.35 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 537.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 537.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.95 537.35 Td (162) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.95 537.35 Td (137) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 523.35 Td (W) Tj ET Q q 0 0 0 rg BT 59.33 523.35 Td (ells completed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.95 523.35 Td (\(1) Tj ET Q q 0 0 0 rg BT 289.95 523.35 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.95 523.35 Td (\(104) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.95 523.35 Td (\(40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.95 523.35 Td (\(26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 523.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 523.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.95 523.35 Td (\(154) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.95 523.35 Td (\(130) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 573.00 523.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 509.35 Td (W) Tj ET Q q 0 0 0 rg BT 59.33 509.35 Td (ells sold ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 94.35 513.64 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.00 509.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 509.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 509.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.00 509.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.95 509.35 Td (\(18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.00 509.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.95 509.35 Td (\(15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.00 509.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.95 509.35 Td (\(18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.00 509.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.95 509.35 Td (\(15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 573.00 509.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 495.35 Td (Other ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 76.01 499.64 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.95 495.35 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.95 495.35 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 495.35 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.00 495.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 481.35 Td (W) Tj ET Q q 0 0 0 rg BT 47.33 481.35 Td (ells drilled but not completed at December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.95 481.35 Td (61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.95 481.35 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.95 481.35 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.95 481.35 Td (23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 481.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 481.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.95 481.35 Td (90) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 562.95 481.35 Td (78) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 470.25 Td (_____________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 462.74 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 458.45 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 458.45 Td (Drilled but not completed wells in this table relating to the Bakken/Three Forks operated program were included as part of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 447.65 Td (Divide County Divestiture, which was completed in the second quarter of 2018.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 440.84 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 436.55 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 436.55 Td (Reflects net working interest changes resulting from normal business operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 413.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 413.45 Td (Costs Incurred in Oil and Gas Producing ) Tj ET Q q 0 0 0 rg BT 235.24 413.45 Td (Activities. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.25 413.45 Td (Costs incurred in oil and gas property acquisition, exploration, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 402.65 Td (development activities, whether capitalized or expensed, are summarized as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 350.15 192.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 350.15 99.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 322.15 192.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 322.15 99.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 294.15 192.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 294.15 99.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 364.15 m 327.5 364.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 280.15 m 327.5 280.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 280.15 m 327.5 280.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 267.15 m 327.5 267.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 265.15 m 327.5 265.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.55 382.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 269.47 382.55 Td (Y) Tj ET Q q 0 0 0 rg BT 275.14 382.55 Td (ear Ended) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.95 368.55 Td (December 31, 2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.25 354.55 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 340.55 Td (Development costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 340.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.95 340.55 Td (1,147.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 326.55 Td (Exploration costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.45 326.55 Td (184.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 312.55 Td (Acquisitions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.50 298.55 Td (Proved properties) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.45 298.55 Td (1.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.50 284.55 Td (Unproved properties) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.45 284.55 Td (55.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 270.55 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 270.55 Td (otal, including asset retirement obligations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 213.59 274.84 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 270.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.95 270.55 Td (1,389.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.00 266.65 Td ( ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 259.15 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 251.64 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 247.35 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 247.35 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 115.03 247.35 Td (Costs Incurred in Oil and Gas Producing ) Tj ET Q q 0 0 0 rg BT 278.27 247.35 Td (Activities) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 313.78 247.35 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.28 247.35 Td (in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 325.79 247.35 Td (Supplemental Oil and Gas Information) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 478.37 247.35 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.87 247.35 Td (in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 236.55 Td (report. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 212.95 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 212.95 Td (All of our development and exploration costs were incurred in our Midland Basin and Eagle Ford shale programs for the year ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.15 Td (ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.53 202.15 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.58 202.15 Td (, with 84 percent of these costs being directed towards activities on our Midland Basin assets. Costs ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 191.35 Td (incurred for acquisitions during the year related to transactions in the Midland Basin, as well as payments made to extend certain lease ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 180.55 Td (terms, to acquire new leases, and to acquire certain surface rights associated with our Midland Basin water handling and transportation ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 169.75 Td (facilities. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 136.54 169.75 Td (Operational ) Tj ET Q q 0 0 0 rg BT 185.24 169.75 Td (Activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 220.75 169.75 Td ( above and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 267.79 169.75 Td (Acquisition ) Tj ET Q q 0 0 0 rg BT 313.48 169.75 Td (Activity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.98 169.75 Td ( below for additional information on our regional activities.) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (47) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (Production Results. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.04 740.45 Td (The table below presents the disaggregation of our production by product type for each of our operating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (regions for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 143.57 729.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 222.62 729.65 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 696.15 188.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 696.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 696.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 696.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 696.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 696.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 696.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 696.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 668.15 188.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 668.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 668.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 668.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 668.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 668.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 668.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 668.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 640.15 188.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 640.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 640.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 640.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 640.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 640.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 640.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 640.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 612.15 188.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 612.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 612.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 612.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 612.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 612.15 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 612.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 612.15 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 696.15 m 293.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297.5 696.15 m 366.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 696.15 m 439.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 696.15 m 512.5 696.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.70 700.55 Td (Permian) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 300.55 709.55 Td (South T) Tj ET Q q 0 0 0 rg BT 333.71 709.55 Td (exas &) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 308.70 700.55 Td (Gulf Coast) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 709.55 Td (Rocky) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.65 700.55 Td (Mountain ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 422.14 704.84 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.05 700.55 Td (T) Tj ET Q q 0 0 0 rg BT 471.88 700.55 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 686.55 Td (Production:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 672.55 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.40 672.55 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.40 672.55 Td (1.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.40 672.55 Td (0.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.40 672.55 Td (18.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 658.55 Td (Gas \(Bcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.40 658.55 Td (25.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.40 658.55 Td (76.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.40 658.55 Td (1.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.40 658.55 Td (103.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 644.55 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.95 644.55 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.40 644.55 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.95 644.55 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.40 644.55 Td (7.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 630.55 Td (Equivalent \(MMBOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.40 630.55 Td (20.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.40 630.55 Td (21.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.40 630.55 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.40 630.55 Td (43.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 616.55 Td (A) Tj ET Q q 0 0 0 rg BT 44.84 616.55 Td (vg. Daily Equivalents \(MBOE/d\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.40 616.55 Td (57.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.40 616.55 Td (59.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.40 616.55 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.40 616.55 Td (120.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 57.00 602.55 Td (Relative percentage) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.90 602.55 Td (48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.95 602.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.90 602.55 Td (50) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.95 602.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.90 602.55 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.95 602.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.90 602.55 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.95 602.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.00 598.65 Td ( ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 591.45 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 580.35 Td (Note: ) Tj ET Q q 0 0 0 rg BT 59.52 580.35 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 570.84 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 566.55 Td (W) Tj ET Q q 0 0 0 rg BT 62.33 566.55 Td (e divested all remaining producing assets in the Rocky Mountain region in the first half of 2018. ) Tj ET Q q 0 0 0 rg BT 444.55 566.55 Td (As a result, there have been no ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 555.75 Td (production volumes from this region after the second quarter of 2018.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 532.95 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 532.95 Td (e experienced a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 146.88 532.95 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 194.41 532.95 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.91 532.95 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.94 532.95 Td ( in production on an equivalent basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.09 532.95 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.14 532.95 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 522.15 Td (compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.03 522.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.05 522.15 Td (. ) Tj ET Q q 0 0 0 rg BT 124.39 522.15 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.40 522.15 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 179.42 522.15 Td ( in overall production volumes was primarily a result of the divestiture of our outside-operated Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 511.35 Td (Ford shale assets in the first quarter of 2017, decreased production from our operated Eagle Ford shale assets as a result of reduced ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 500.55 Td (capital investment, and the divestiture of our remaining producing assets in the Rocky Mountain region in the first half of 2018. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 489.75 Td (Production decreases from the Eagle Ford shale and Rocky Mountain region were mostly of) Tj ET Q q 0 0 0 rg BT 401.52 489.75 Td (fset by the Permian region, which had an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 478.95 Td (increase in production volumes of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.57 478.95 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.10 478.95 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.15 478.95 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.20 478.95 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.23 478.95 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.25 478.95 Td (. Please refer to) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 524.29 478.95 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 526.79 478.95 Td (A) Tj ET Q q 0 0 0 rg BT 532.45 478.95 Td ( ) Tj ET Q q 0 0 0 rg BT 534.79 478.95 Td (Y) Tj ET Q q 0 0 0 rg BT 540.30 478.95 Td (ear) Tj ET Q q 0 0 0 rg BT 553.14 478.95 Td (-to-) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 468.15 Td (Y) Tj ET Q q 0 0 0 rg BT 41.51 468.15 Td (ear Overview of Selected Production and Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 339.50 468.15 Td (rends) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 362.01 468.15 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.51 468.15 Td (and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 382.03 468.15 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 536.43 468.15 Td (rends ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 457.35 Td (Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.19 457.35 Td ( below for additional discussion on production.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 434.55 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 434.55 Td (Divestiture ) Tj ET Q q 0 0 0 rg BT 116.68 434.55 Td (Activity) Tj ET Q q 0 0 0 rg BT 144.51 434.55 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 152.02 434.55 Td (On ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 166.52 434.55 Td (March 26, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.06 434.55 Td (,) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 231.56 434.55 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.06 434.55 Td (we divested approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.62 434.55 Td (1) Tj ET Q q 0 0 0 rg BT 346.95 434.55 Td (12,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.48 434.55 Td ( net acres of our Powder River Basin assets for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 423.75 Td (net divestiture proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.06 423.75 Td ($492.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.60 423.75 Td ( and recorded a final net gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.68 423.75 Td ($410.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 384.22 423.75 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.27 423.75 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.32 423.75 Td (. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 412.95 Td (the second quarter of 2018, we divested our remaining assets in the Williston Basin, and our non-operated Half) Tj ET Q q 0 0 0 rg BT 477.59 412.95 Td (f East assets in the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 402.15 Td (Midland Basin for combined net divestiture proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.62 402.15 Td ($252.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.15 402.15 Td (. W) Tj ET Q q 0 0 0 rg BT 328.99 402.15 Td (e recorded a combined final net gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.09 402.15 Td ($15.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.62 402.15 Td ( for the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 391.35 Td (year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.54 391.35 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 162.58 391.35 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 368.55 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 368.55 Td (Acquisition ) Tj ET Q q 0 0 0 rg BT 117.69 368.55 Td (Activity) Tj ET Q q 0 0 0 rg BT 145.52 368.55 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.03 368.55 Td (During 2018, we acquired approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.62 368.55 Td (1,030) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.14 368.55 Td ( net acres of unproved properties in Howard and Martin ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 357.75 Td (Counties, ) Tj ET Q q 0 0 0 rg BT 76.36 357.75 Td (T) Tj ET Q q 0 0 0 rg BT 80.86 357.75 Td (exas, in two separate transactions totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.95 357.75 Td ($33.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.48 357.75 Td (. W) Tj ET Q q 0 0 0 rg BT 317.32 357.75 Td (e also completed two non-monetary acreage trades of primarily ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 346.95 Td (unproved properties located in Howard and Martin Counties, ) Tj ET Q q 0 0 0 rg BT 278.47 346.95 Td (T) Tj ET Q q 0 0 0 rg BT 282.97 346.95 Td (exas, resulting in the exchange of approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.09 346.95 Td (2,650) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.61 346.95 Td ( net acres, with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 336.15 Td ($95.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.53 336.15 Td ( of carrying value attributed to the properties we surrendered. ) Tj ET Q q 0 0 0 rg BT 335.00 336.15 Td (These trades were recorded at carryover basis with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.09 336.15 Td (no) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.10 336.15 Td ( gain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 325.35 Td (or loss recognized.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.55 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 302.55 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 302.55 Td (Note 3 – Divestitures, ) Tj ET Q q 0 0 0 rg BT 221.23 302.55 Td (Assets Held for Sale, and ) Tj ET Q q 0 0 0 rg BT 324.95 302.55 Td (Acquisitions) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 372.98 302.55 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.48 302.55 Td (in Part II, Item 8 of this report for additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 291.75 Td (discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 268.95 Td (Oil, Gas, and NGL) Tj ET Q q 0 0 0 rg BT 109.37 268.95 Td ( Prices) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 246.15 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 246.15 Td (Our financial condition and the results of our operations are significantly af) Tj ET Q q 0 0 0 rg BT 367.00 246.15 Td (fected by the prices we receive for our oil, gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 235.35 Td (NGL) Tj ET Q q 0 0 0 rg BT 54.17 235.35 Td ( production, which can fluctuate dramatically) Tj ET Q q 0 0 0 rg BT 230.09 235.35 Td (. When we refer to realized oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 411.85 235.35 Td ( prices below) Tj ET Q q 0 0 0 rg BT 463.87 235.35 Td (, the disclosed price ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 224.55 Td (represents the average price for the respective period, before the ef) Tj ET Q q 0 0 0 rg BT 304.99 224.55 Td (fects of derivative settlements, unless otherwise indicated. While ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 213.75 Td (quoted NYMEX oil and gas and OPIS NGL) Tj ET Q q 0 0 0 rg BT 206.26 213.75 Td ( prices are generally used as a basis for comparison within our industry) Tj ET Q q 0 0 0 rg BT 488.73 213.75 Td (, the prices we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 202.95 Td (receive are af) Tj ET Q q 0 0 0 rg BT 90.36 202.95 Td (fected by quality) Tj ET Q q 0 0 0 rg BT 154.74 202.95 Td (, energy content, location, and transportation dif) Tj ET Q q 0 0 0 rg BT 344.69 202.95 Td (ferentials for these products.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (The following table summarizes commodity price data, as well as the ef) Tj ET Q q 0 0 0 rg BT 355.46 740.45 Td (fects of derivative settlements, for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 729.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 120.05 729.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 140.07 729.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 162.59 729.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 182.61 729.65 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 691.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 691.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 691.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 691.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 691.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 663.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 663.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 663.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 663.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 663.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 635.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 635.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 635.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 635.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 635.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 635.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 607.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 607.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 607.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 607.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 607.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 607.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 579.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 579.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 579.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 579.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 579.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 579.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 551.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 551.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 551.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 551.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 551.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 551.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 523.15 306.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 523.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 523.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 523.15 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 523.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 523.15 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 705.15 m 407.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 705.15 m 411.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 705.15 m 476.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 705.15 m 480.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 705.15 m 545.5 705.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 691.15 m 407.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 691.15 m 476.5 691.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 691.15 m 545.5 691.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.55 709.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 402.47 709.55 Td (Y) Tj ET Q q 0 0 0 rg BT 408.14 709.55 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 364.45 695.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.45 695.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.45 695.55 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 681.55 Td (Oil \(per Bbl\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 667.55 Td (A) Tj ET Q q 0 0 0 rg BT 56.92 667.55 Td (verage NYMEX contract monthly price) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 667.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.45 667.55 Td (64.77) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 667.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 667.55 Td (50.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 667.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 667.55 Td (43.32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 653.55 Td (Realized price, before the ef) Tj ET Q q 0 0 0 rg BT 163.48 653.55 Td (fect of derivative settlements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 653.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.45 653.55 Td (56.80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 653.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 653.55 Td (47.88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 653.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 653.55 Td (36.85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 639.55 Td (Ef) Tj ET Q q 0 0 0 rg BT 59.42 639.55 Td (fect of oil derivative settlements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 639.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.45 639.55 Td (\(3.67) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 639.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 639.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 639.55 Td (\(2.28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 639.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 639.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 639.55 Td (14.63) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 611.55 Td (Gas:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 597.55 Td (A) Tj ET Q q 0 0 0 rg BT 56.92 597.55 Td (verage NYMEX monthly settle price \(per MMBtu\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 597.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.45 597.55 Td (3.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 597.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.45 597.55 Td (3.1) Tj ET Q q 0 0 0 rg BT 467.96 597.55 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 597.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.45 597.55 Td (2.46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 583.55 Td (Realized price, before the ef) Tj ET Q q 0 0 0 rg BT 163.48 583.55 Td (fect of derivative settlements \(per Mcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 583.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.45 583.55 Td (3.43) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 583.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.45 583.55 Td (3.00) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 583.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.45 583.55 Td (2.30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 569.55 Td (Ef) Tj ET Q q 0 0 0 rg BT 59.34 569.55 Td (fect of gas derivative settlements \(per Mcf\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 569.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.45 569.55 Td (\(0.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 569.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 569.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.45 569.55 Td (0.72) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 569.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.45 569.55 Td (0.64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 541.55 Td (NGLs \(per Bbl\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 527.55 Td (A) Tj ET Q q 0 0 0 rg BT 56.84 527.55 Td (verage OPIS price ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 132.87 531.84 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 527.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.45 527.55 Td (32.96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 527.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 527.55 Td (27.63) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 527.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 527.55 Td (19.98) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 513.55 Td (Realized price, before the ef) Tj ET Q q 0 0 0 rg BT 163.48 513.55 Td (fect of derivative settlements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 513.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.45 513.55 Td (27.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 513.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.45 513.55 Td (22.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 513.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.45 513.55 Td (16.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.00 499.55 Td (Ef) Tj ET Q q 0 0 0 rg BT 59.34 499.55 Td (fect of NGL) Tj ET Q q 0 0 0 rg BT 104.53 499.55 Td ( derivative settlements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.00 499.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.45 499.55 Td (\(6.78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 499.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.00 499.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.45 499.55 Td (\(3.44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 499.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 499.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.45 499.55 Td (\(0.60) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.00 499.55 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 488.45 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 480.94 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 476.65 Td (A) Tj ET Q q 0 0 0 rg BT 59.84 476.65 Td (verage OPIS prices per barrel of NGL, historical or strip, are based on a product mix of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.00 476.65 Td (37%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.01 476.65 Td ( Ethane, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.03 476.65 Td (32%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.05 476.65 Td ( Propane, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 520.58 476.65 Td (6%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.58 476.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 465.85 Td (Isobutane, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 98.53 465.85 Td (1) Tj ET Q q 0 0 0 rg BT 102.87 465.85 Td (1%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.88 465.85 Td ( Normal Butane, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.93 465.85 Td (14%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 218.94 465.85 Td ( Natural Gasoline for all periods presented. ) Tj ET Q q 0 0 0 rg BT 394.87 465.85 Td (This product mix represents the industry ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 455.05 Td (standard composite barrel and does not necessarily represent our product mix for NGL) Tj ET Q q 0 0 0 rg BT 398.84 455.05 Td ( production. Realized prices reflect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 444.25 Td (actual product mix.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 421.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 421.45 Td (e expect future prices for oil and NGLs to continue to be volatile. In addition to supply and demand fundamentals, as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.65 Td (global commodity) Tj ET Q q 0 0 0 rg BT 105.36 410.65 Td (, the price of oil is af) Tj ET Q q 0 0 0 rg BT 185.24 410.65 Td (fected by real or perceived geopolitical risks in various regions of the world as well as the relative ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.85 Td (strength of the United States dollar compared to other currencies. W) Tj ET Q q 0 0 0 rg BT 309.97 399.85 Td (e expect oil prices to remain volatile due to uncertainty in global ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 389.05 Td (supply and demand.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 366.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 366.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 366.25 Td (e expect gas prices to remain near current levels in the near term due to the abundance of supply relative to demand. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 355.45 Td (Demand from increased liquefied natural gas \(“LNG”\) exports and gas exports to Mexico are expected to help balance supply) Tj ET Q q 0 0 0 rg BT 533.60 355.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 336.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 336.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 336.65 Td (e expect NGL) Tj ET Q q 0 0 0 rg BT 135.03 336.65 Td ( prices to continue to benefit from increased demand from export and petrochemical markets while being of) Tj ET Q q 0 0 0 rg BT 560.58 336.65 Td (fset ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 325.85 Td (by increased drilling activity) Tj ET Q q 0 0 0 rg BT 144.88 325.85 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 303.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 303.05 Td (The following table summarizes 12-month strip prices for NYMEX WTI oil, NYMEX Henry Hub gas, and OPIS NGLs \(same ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 292.25 Td (product mix as discussed under the table above\) as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.12 292.25 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.66 292.25 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.18 292.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.23 292.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 267.75 192.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 267.75 122.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 267.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 267.75 123.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 239.75 192.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 239.75 122.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 239.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 239.75 123.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 267.75 m 350.5 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 267.75 m 477.5 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 267.75 m 350.5 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 267.75 m 477.5 267.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.95 272.15 Td (As of February 7, 2019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.45 272.15 Td (As of December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 258.15 Td (NYMEX WTI oil \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 258.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.45 258.15 Td (54.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 258.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.45 258.15 Td (46.96) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 244.15 Td (NYMEX Henry Hub gas \(per MMBtu\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 244.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.45 244.15 Td (2.75) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 244.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.45 244.15 Td (2.85) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 230.15 Td (OPIS NGLs \(per Bbl\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.00 230.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.45 230.15 Td (25.1) Tj ET Q q 0 0 0 rg BT 341.97 230.15 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 230.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.45 230.15 Td (24.04) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 203.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 203.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 203.45 Td (e use financial derivative instruments as part of our financial risk management program. W) Tj ET Q q 0 0 0 rg BT 442.33 203.45 Td (e have a financial risk ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.65 Td (management policy governing our use of derivatives. ) Tj ET Q q 0 0 0 rg BT 251.46 192.65 Td (The amount of our production covered by derivatives is driven by the amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.85 Td (debt on our balance sheet, the level of capital commitments and long-term obligations we have in place, and our ability to enter into ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 171.05 Td (favorable derivative commodity contracts. With our current derivative contracts, we believe we have partially reduced our exposure to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 160.25 Td (volatility in commodity prices and location dif) Tj ET Q q 0 0 0 rg BT 212.92 160.25 Td (ferentials in the near term. Our use of costless collars for a portion of our derivatives ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 149.45 Td (allows us to participate in some of the upward movements in oil and gas prices while also setting a price floor for a portion of our oil and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.65 Td (gas production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 115.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 115.85 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 115.85 Td (Note 10 – Derivative Financial Instruments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 302.61 115.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 305.11 115.85 Td (in Part II, Item 8 of this report and to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 451.18 115.85 Td (Commodity Price Risk) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 539.69 115.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.19 115.85 Td (in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 105.05 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 212.59 105.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.09 105.05 Td (below for additional information regarding our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 467.40 105.05 Td ( derivatives.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 82.25 Td (Outlook) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 59.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 59.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 59.45 Td (e remain focused on maximizing the returns and increasing the value of our top tier capital project inventory in the Midland ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 48.65 Td (Basin and Eagle Ford shale.  W) Tj ET Q q 0 0 0 rg BT 162.40 48.65 Td (e expect to do this through exploration, acquisitions, and further development optimization.  ) Tj ET Q q 0 0 0 rg BT 527.46 48.65 Td (These ) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (49) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (assets will allow for production growth while maximizing internally generated cash flows, which will also support our priorities for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (improving our credit metrics and maintaining strong financial flexibility) Tj ET Q q 0 0 0 rg BT 311.45 729.65 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 706.85 Td (Our capital program for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 167.04 706.85 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.06 706.85 Td (, excluding acquisitions, is expected to range from $1.00 billion to $1.07 billion. W) Tj ET Q q 0 0 0 rg BT 513.08 706.85 Td (e expect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (capital program to concentrate on developing our top tier assets in the Midland Basin and Eagle Ford shale. W) Tj ET Q q 0 0 0 rg BT 477.59 696.05 Td (e expect to allocate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (approximately 80% of our 2019 capital to our Midland Basin program, which generates the highest margins in our portfolio. Planned ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (drilling and completion activity in the Eagle Ford shale will be partially funded by a third-party as part of our joint venture agreement. By ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (concentrating our capital on high return investments and operating at strong performance levels, we believe we will generate higher ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (company-wide margins, cash flow growth, and value creation for our stockholders. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 630.05 Td (In our Permian region, we entered 2019 with six drilling rigs and three completion crews and anticipate maintaining this level of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (activity on average throughout the remainder of the year) Tj ET Q q 0 0 0 rg BT 259.14 619.25 Td (. On our operated acreage, we plan to drill and complete approximately 100 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (net wells in 2019. Our focus will continue to be on delineating and developing the Lower Spraberry and W) Tj ET Q q 0 0 0 rg BT 458.09 608.45 Td (olfcamp ) Tj ET Q q 0 0 0 rg BT 491.61 608.45 Td (A) Tj ET Q q 0 0 0 rg BT 497.12 608.45 Td ( and B shale ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (intervals on our RockStar acreage in Howard and Martin Counties, ) Tj ET Q q 0 0 0 rg BT 302.97 597.65 Td (T) Tj ET Q q 0 0 0 rg BT 307.47 597.65 Td (exas, and our Sweetie Peck acreage in Upton and Midland ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (Counties, ) Tj ET Q q 0 0 0 rg BT 76.36 586.85 Td (T) Tj ET Q q 0 0 0 rg BT 80.86 586.85 Td (exas.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 564.05 Td (In our South ) Tj ET Q q 0 0 0 rg BT 123.37 564.05 Td (T) Tj ET Q q 0 0 0 rg BT 127.87 564.05 Td (exas & Gulf Coast region, we entered 2019 with one drilling rig and added one completion crew in January) Tj ET Q q 0 0 0 rg BT 550.45 564.05 Td (. W) Tj ET Q q 0 0 0 rg BT 566.29 564.05 Td (e ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (anticipate averaging one to two drilling rigs and one completion crew throughout 2019. W) Tj ET Q q 0 0 0 rg BT 392.55 553.25 Td (e plan to drill approximately 28 net wells and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (plan to complete approximately 18 net wells in 2019. W) Tj ET Q q 0 0 0 rg BT 258.46 542.45 Td (e expect our joint venture in a portion of our Eagle Ford North area will allow for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (an increase in our capital ef) Tj ET Q q 0 0 0 rg BT 145.90 531.65 Td (ficiency) Tj ET Q q 0 0 0 rg BT 175.25 531.65 Td (.  ) Tj ET Q q 0 0 0 rg BT 182.58 531.65 Td (This joint venture will continue to test new technologies and completion designs at varied well ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (spacing, potentially enhancing the asset’) Tj ET Q q 0 0 0 rg BT 197.45 520.85 Td (s value while reducing the required capital outlay that is necessary to meet certain lease ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (obligations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 487.25 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 487.25 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.62 487.25 Td ( below for additional discussion on how we expect to fund our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 476.45 Td ( capital program.) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Financial Results of Operations and ) Tj ET Q q 0 0 0 rg BT 191.69 740.45 Td (Additional Comparative Data) Tj ET Q BT /F3 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (The tables below provide information regarding selected production and financial information for the three months ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 706.85 Td (, and the immediately preceding three quarters.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 37.50 640.35 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 640.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 640.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 640.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 640.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 640.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 640.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 640.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 37.50 612.35 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 612.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 612.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 612.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 612.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 612.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 612.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 612.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 37.50 575.35 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 575.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 575.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 575.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 575.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 575.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 575.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 575.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 37.50 547.35 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 547.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.50 547.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 547.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 547.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 547.35 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 547.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 547.35 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 682.35 m 347.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 682.35 m 351.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 682.35 m 421.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 682.35 m 425.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 682.35 m 495.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 682.35 m 499.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 682.35 m 569.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 682.35 m 569.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 654.35 m 347.5 654.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 654.35 m 421.5 654.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 654.35 m 495.5 654.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 654.35 m 569.5 654.35 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.95 686.75 Td (For the Three Months Ended) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.70 672.75 Td (December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.20 672.75 Td (September 30,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.95 672.75 Td (June 30,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.20 672.75 Td (March 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 301.95 658.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.95 658.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 658.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 523.95 658.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.75 644.75 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 630.75 Td (Production \(MMBOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.45 630.75 Td (1) Tj ET Q q 0 0 0 rg BT 331.46 630.75 Td (1.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.45 630.75 Td (12.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.45 630.75 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.45 630.75 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 616.75 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 111.20 616.75 Td ( production revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 616.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.45 616.75 Td (392.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 616.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.45 616.75 Td (458.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 616.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.45 616.75 Td (402.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 616.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.45 616.75 Td (382.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 602.75 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 111.37 602.75 Td ( production expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 602.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.45 602.75 Td (121.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 602.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.45 602.75 Td (127.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 602.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.45 602.75 Td (1) Tj ET Q q 0 0 0 rg BT 474.46 602.75 Td (17.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 602.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.45 602.75 Td (120.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 588.75 Td (Depletion, depreciation, amortization, and asset retirement) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 579.75 Td (obligation liability accretion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 579.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.45 579.75 Td (182.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 579.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.45 579.75 Td (201.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 579.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.45 579.75 Td (151.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 579.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.45 579.75 Td (130.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 565.75 Td (Exploration) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 565.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.45 565.75 Td (14.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 565.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.45 565.75 Td (13.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 565.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.45 565.75 Td (14.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 565.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.45 565.75 Td (13.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 551.75 Td (General and administrative) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 551.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.45 551.75 Td (30.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 551.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.45 551.75 Td (29.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 551.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.45 551.75 Td (28.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 551.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.45 551.75 Td (27.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 40.00 537.75 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.00 537.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.45 537.75 Td (309.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 537.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.45 537.75 Td (\(135.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.00 537.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 537.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.45 537.75 Td (17.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.00 537.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.45 537.75 Td (317.4) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 526.65 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 515.85 Td (Note: ) Tj ET Q q 0 0 0 rg BT 59.52 515.85 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 493.05 Td (Selected Performance Metrics) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 440.55 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 440.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 440.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 440.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 440.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 440.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 440.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 440.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 412.55 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 412.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 412.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 412.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 412.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 412.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 412.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 412.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 375.55 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 375.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 375.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 375.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 375.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 375.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 375.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 375.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 338.55 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 338.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 338.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 338.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 338.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 338.55 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 338.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 338.55 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 468.55 m 346.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 468.55 m 350.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 468.55 m 420.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 468.55 m 424.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 468.55 m 494.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 468.55 m 498.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 468.55 m 568.5 468.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 440.55 m 346.5 440.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 440.55 m 420.5 440.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 440.55 m 494.5 440.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 440.55 m 568.5 440.55 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 360.95 472.95 Td (For the Three Months Ended) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 281.70 458.95 Td (December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 354.20 458.95 Td (September 30,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 458.95 Td (June 30,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.20 458.95 Td (March 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 300.95 444.95 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.95 444.95 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.95 444.95 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 444.95 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 430.95 Td (A) Tj ET Q q 0 0 0 rg BT 44.92 430.95 Td (verage net daily production equivalent \(MBOE per day\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.40 430.95 Td (122.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.40 430.95 Td (130.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.40 430.95 Td (1) Tj ET Q q 0 0 0 rg BT 468.41 430.95 Td (15.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.40 430.95 Td (1) Tj ET Q q 0 0 0 rg BT 542.41 430.95 Td (12.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 416.95 Td (Lease operating expense \(per BOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 416.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.40 416.95 Td (4.98) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.00 416.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.40 416.95 Td (4.41) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 416.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.40 416.95 Td (4.66) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 416.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.40 416.95 Td (4.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 402.95 Td (T) Tj ET Q q 0 0 0 rg BT 44.33 402.95 Td (ransportation costs \(per BOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 402.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.40 402.95 Td (4.19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.00 402.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.40 402.95 Td (4.20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 402.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.40 402.95 Td (4.47) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 402.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.40 402.95 Td (4.63) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 388.95 Td (Production taxes as a percent of oil, gas, and NGL) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 379.95 Td (production revenue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.40 379.95 Td (3.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.95 379.95 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.40 379.95 Td (4.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.95 379.95 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.40 379.95 Td (4.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.95 379.95 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.40 379.95 Td (4.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.95 379.95 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 365.95 Td (Ad valorem tax expense \(per BOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 365.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.40 365.95 Td (0.39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.00 365.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.40 365.95 Td (0.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 365.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.40 365.95 Td (0.41) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 365.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.40 365.95 Td (0.67) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 351.95 Td (Depletion, depreciation, amortization, and asset retirement) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 342.95 Td (obligation liability accretion \(per BOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 342.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.40 342.95 Td (16.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.00 342.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 389.40 342.95 Td (16.78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 342.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.40 342.95 Td (14.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 342.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.40 342.95 Td (12.87) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 328.95 Td (General and administrative \(per BOE\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.00 328.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.40 328.95 Td (2.69) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.00 328.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.40 328.95 Td (2.46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.00 328.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.40 328.95 Td (2.76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 328.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.40 328.95 Td (2.73) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 317.85 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 307.05 Td (Note: ) Tj ET Q q 0 0 0 rg BT 59.52 307.05 Td (Amounts may not calculate due to rounding.) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (51) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (A) Tj ET Q q 0 0 0 rg BT 41.67 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 44.01 740.45 Td (Y) Tj ET Q q 0 0 0 rg BT 49.51 740.45 Td (ear) Tj ET Q q 0 0 0 rg BT 62.36 740.45 Td (-to-Y) Tj ET Q q 0 0 0 rg BT 81.36 740.45 Td (ear Overview of Selected Production and Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 379.35 740.45 Td (rends) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 692.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 692.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 692.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 664.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 664.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 664.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 636.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 636.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 636.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 608.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 608.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 608.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 580.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 580.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 580.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 552.95 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 552.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 552.95 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 523.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 523.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 523.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 495.95 173.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 495.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 495.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 458.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 458.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 458.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 430.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 430.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 430.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 402.95 173.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 402.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 402.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 365.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 365.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 365.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 337.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 337.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 337.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 309.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 309.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 309.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 281.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 281.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 281.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 253.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 253.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 253.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 225.95 173.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 225.95 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 225.95 49.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 180.95 173.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 180.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 180.95 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 152.95 173.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 152.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 152.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 108.95 173.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 108.95 49.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 108.95 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 108.95 49.00 -22.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 706.95 m 258.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 706.95 m 262.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 706.95 m 311.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 706.95 m 315.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 706.95 m 364.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 706.95 m 417.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 706.95 m 421.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 706.95 m 470.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 706.95 m 523.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.5 706.95 m 527.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 706.95 m 576.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 706.95 m 258.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 692.95 m 258.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 692.95 m 311.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 692.95 m 364.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 692.95 m 417.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 706.95 m 470.5 706.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 692.95 m 470.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 692.95 m 523.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 692.95 m 576.5 692.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 495.95000000000005 m 258.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 495.95000000000005 m 311.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 495.95000000000005 m 364.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 495.95000000000005 m 417.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 495.95000000000005 m 470.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 495.95000000000005 m 258.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 474.95000000000005 m 258.5 474.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 472.95000000000005 m 258.5 472.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 495.95000000000005 m 311.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 474.95000000000005 m 311.5 474.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 472.95000000000005 m 311.5 472.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 495.95000000000005 m 364.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 474.95000000000005 m 364.5 474.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 472.95000000000005 m 364.5 472.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 495.95000000000005 m 417.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 474.95000000000005 m 417.5 474.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 472.95000000000005 m 417.5 472.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 495.95000000000005 m 470.5 495.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 474.95000000000005 m 470.5 474.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 472.95000000000005 m 470.5 472.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 402.95000000000005 m 258.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 402.95000000000005 m 311.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 402.95000000000005 m 364.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 402.95000000000005 m 417.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 402.95000000000005 m 470.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 402.95000000000005 m 258.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 381.95000000000005 m 258.5 381.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 379.95000000000005 m 258.5 379.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 402.95000000000005 m 311.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 381.95000000000005 m 311.5 381.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 379.95000000000005 m 311.5 379.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 402.95000000000005 m 364.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 381.95000000000005 m 364.5 381.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 379.95000000000005 m 364.5 379.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 402.95000000000005 m 417.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 381.95000000000005 m 417.5 381.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 379.95000000000005 m 417.5 379.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 402.95000000000005 m 470.5 402.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 381.95000000000005 m 470.5 381.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 379.95000000000005 m 470.5 379.95000000000005 l s BT /F3 8.50 Tf ET q 0 0 0 rg BT 245.45 720.51 Td (For the ) Tj ET Q q 0 0 0 rg BT 276.46 720.51 Td (Y) Tj ET Q q 0 0 0 rg BT 281.66 720.51 Td (ears Ended) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 258.85 712.01 Td (December 31,) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 386.15 720.51 Td (Amount Change) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 401.50 712.01 Td (Between) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 492.60 720.51 Td (Percent Change) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 507.50 712.01 Td (Between) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 224.00 697.26 Td (2018) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 277.00 697.26 Td (2017) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 330.00 697.26 Td (2016) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 372.40 697.26 Td (2018/2017) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 425.40 697.26 Td (2017/2016) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 478.40 697.26 Td (2018/2017) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 531.40 697.26 Td (2017/2016) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 683.26 Td (Net production volumes:) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 130.66 687.32 Td ( \(1\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 669.26 Td (Oil \(MMBbl\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 669.26 Td (18.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 669.26 Td (13.7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 669.31 Td (16.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 402.30 669.31 Td (5.1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 452.50 669.26 Td (\(2.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 669.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 669.26 Td (37) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 669.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 669.26 Td (\(18) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 669.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 655.26 Td (Gas \(Bcf\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 655.26 Td (103.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 655.26 Td (123.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 655.31 Td (146.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 655.26 Td (\(19.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 655.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 655.26 Td (\(23.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 655.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 655.26 Td (\(16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 655.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 655.26 Td (\(16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 655.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 641.26 Td (NGLs \(MMBbl\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 243.30 641.26 Td (7.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 641.26 Td (10.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 641.31 Td (14.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.50 641.26 Td (\(2.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 641.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 452.50 641.26 Td (\(3.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 641.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 641.26 Td (\(23) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 641.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 641.26 Td (\(27) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 641.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 627.26 Td (Equivalent \(MMBOE\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 627.26 Td (43.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 627.26 Td (44.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 627.31 Td (55.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.50 627.26 Td (\(0.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 627.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 627.26 Td (\(10.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 627.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 505.00 627.26 Td (\(1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 627.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 627.26 Td (\(20) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 627.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 613.26 Td (A) Tj ET Q q 0 0 0 rg BT 44.52 613.26 Td (verage net daily production:) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 148.95 613.26 Td ( ) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 151.31 617.32 Td (\(1\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 599.26 Td (Oil \(MBbl per day\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 599.26 Td (51.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 599.26 Td (37.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 599.31 Td (45.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 599.31 Td (14.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 452.50 599.26 Td (\(7.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 599.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 599.26 Td (37) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 599.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 599.26 Td (\(17) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 599.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 585.26 Td (Gas \(MMcf per day\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 585.26 Td (282.7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 585.26 Td (337.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 585.31 Td (401.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 585.26 Td (\(54.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 585.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 585.26 Td (\(64.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 585.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 585.26 Td (\(16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 585.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 585.26 Td (\(16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 585.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 571.26 Td (NGLs \(MBbl per day\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 571.26 Td (21.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 571.26 Td (28.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 571.31 Td (38.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.50 571.26 Td (\(6.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 571.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 571.26 Td (\(10.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 571.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 571.26 Td (\(23) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 571.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 571.26 Td (\(27) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 571.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 557.26 Td (Equivalent \(MBOE per day\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 557.26 Td (120.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 557.26 Td (121.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 557.31 Td (151.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.50 557.26 Td (\(1.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 557.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 557.26 Td (\(29.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 557.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 505.00 557.26 Td (\(1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 557.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 557.26 Td (\(19) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 557.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 542.26 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 106.25 542.26 Td ( production revenue \(in millions\):) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 229.09 542.26 Td ( ) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 231.45 546.32 Td (\(1\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 528.26 Td (Oil production revenue) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 528.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 226.75 528.26 Td (1,065.7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 528.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 528.26 Td (654.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 528.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 528.31 Td (61) Tj ET Q q 0 0 0 rg BT 349.31 528.31 Td (1.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 528.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 392.85 528.31 Td (41) Tj ET Q q 0 0 0 rg BT 402.31 528.31 Td (1.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 528.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 528.31 Td (42.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 528.26 Td (63) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 528.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 560.85 528.26 Td (7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 528.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 514.26 Td (Gas production revenue) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 514.26 Td (354.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 514.26 Td (369.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 514.31 Td (337.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 514.26 Td (\(15.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 514.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 514.31 Td (32.1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 505.00 514.26 Td (\(4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 514.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 514.26 Td (10) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 514.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 500.26 Td (NGL) Tj ET Q q 0 0 0 rg BT 68.32 500.26 Td ( production revenue) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 500.26 Td (216.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 500.26 Td (230.1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 500.31 Td (229.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 500.26 Td (\(13.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 500.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 455.30 500.31 Td (0.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 505.00 500.26 Td (\(6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 500.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 557.10 500.26 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 500.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 486.76 Td (T) Tj ET Q q 0 0 0 rg BT 67.72 486.76 Td (otal oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 148.84 486.76 Td ( production) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 478.26 Td (revenue) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 478.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 226.75 478.26 Td (1,636.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 478.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 279.75 478.26 Td (1,253.8) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 478.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 332.75 478.26 Td (1,178.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 478.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 392.85 478.31 Td (382.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 478.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 478.31 Td (75.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 478.26 Td (31) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 478.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 560.85 478.26 Td (6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 478.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 463.26 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 106.25 463.26 Td ( production expense \(in millions\):) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 230.51 463.26 Td ( ) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 232.87 467.32 Td (\(1\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 449.26 Td (Lease operating expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 449.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 449.26 Td (208.1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 449.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 449.26 Td (196.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 449.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 449.31 Td (194.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 449.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 449.31 Td (1) Tj ET Q q 0 0 0 rg BT 402.33 449.31 Td (1.2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 449.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 455.30 449.31 Td (2.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 507.85 449.26 Td (6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 449.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 560.85 449.26 Td (1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 449.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 435.26 Td (T) Tj ET Q q 0 0 0 rg BT 56.03 435.26 Td (ransportation costs) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 435.26 Td (191.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 435.26 Td (243.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 435.31 Td (340.3) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 435.26 Td (\(52.1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 435.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 435.26 Td (\(96.7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 435.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 435.26 Td (\(21) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 435.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 435.26 Td (\(28) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 435.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 421.26 Td (Production taxes) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 421.26 Td (66.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 421.26 Td (52.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 421.31 Td (51.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 421.31 Td (14.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 455.30 421.31 Td (0.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 421.26 Td (28) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 421.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 560.85 421.26 Td (1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 421.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 407.26 Td (Ad valorem tax expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 407.26 Td (20.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 407.26 Td (15.0) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 407.31 Td (1) Tj ET Q q 0 0 0 rg BT 349.33 407.31 Td (1.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 402.30 407.31 Td (5.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 455.30 407.31 Td (3.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 407.26 Td (39) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 407.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 407.26 Td (32) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 407.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 393.76 Td (T) Tj ET Q q 0 0 0 rg BT 67.72 393.76 Td (otal oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 148.84 393.76 Td ( production) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 385.26 Td (expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 385.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 385.26 Td (487.4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 385.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 385.26 Td (507.9) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 385.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 385.31 Td (597.6) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 385.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 385.26 Td (\(20.5) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 385.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 385.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 385.26 Td (\(89.7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 385.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 505.00 385.26 Td (\(4) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 385.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 385.26 Td (\(15) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 385.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 370.26 Td (Realized price, before the ef) Tj ET Q q 0 0 0 rg BT 145.24 370.26 Td (fect of derivative settlements:) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 356.26 Td (Oil \(per Bbl\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 356.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 356.26 Td (56.80) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 356.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 356.26 Td (47.88) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 356.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 356.31 Td (36.85) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 356.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 356.31 Td (8.92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 356.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 445.85 356.31 Td (1) Tj ET Q q 0 0 0 rg BT 450.58 356.31 Td (1.03) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 356.26 Td (19) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 356.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 356.26 Td (30) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 356.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 342.26 Td (Gas \(per Mcf\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 342.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 342.26 Td (3.43) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 342.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 342.26 Td (3.00) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 342.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 342.31 Td (2.30) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 342.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 342.31 Td (0.43) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 342.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 342.31 Td (0.70) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 342.26 Td (14) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 342.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 342.26 Td (30) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 342.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 328.26 Td (NGLs \(per Bbl\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 328.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 328.26 Td (27.22) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 328.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 328.26 Td (22.35) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 328.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 328.31 Td (16.16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 328.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 328.31 Td (4.87) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 328.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 328.31 Td (6.19) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 328.26 Td (22) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 328.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 328.26 Td (38) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 328.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 314.26 Td (Per BOE) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 314.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 314.26 Td (37.27) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 314.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 314.26 Td (28.20) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 314.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 314.31 Td (21.32) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 314.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 314.31 Td (9.07) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 314.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 314.31 Td (6.88) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 314.26 Td (32) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 314.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 314.26 Td (32) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 314.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 300.26 Td (Per BOE data:) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 286.26 Td (Production costs:) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 272.26 Td ( Lease operating expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 272.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 272.26 Td (4.74) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 272.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 272.26 Td (4.43) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 272.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 272.31 Td (3.51) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 272.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 272.31 Td (0.31) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 272.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 272.31 Td (0.92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 507.85 272.26 Td (7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 272.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 272.26 Td (26) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 272.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 258.26 Td ( ) Tj ET Q q 0 0 0 rg BT 67.65 258.26 Td (T) Tj ET Q q 0 0 0 rg BT 72.60 258.26 Td (ransportation costs) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 258.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 258.26 Td (4.36) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 258.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 258.26 Td (5.48) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 258.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 258.31 Td (6.16) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 258.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 258.26 Td (\(1.12) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 258.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 258.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 258.26 Td (\(0.68) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 258.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 500.30 258.26 Td (\(20) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 258.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 258.26 Td (\(1) Tj ET Q q 0 0 0 rg BT 560.86 258.26 Td (1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 258.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 63.00 244.26 Td ( Production taxes) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 244.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 244.26 Td (1.52) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 244.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 244.26 Td (1.18) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 244.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 244.31 Td (0.94) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 244.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 244.31 Td (0.34) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 244.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 244.31 Td (0.24) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 244.26 Td (29) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 244.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 244.26 Td (26) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 244.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 69.00 230.26 Td (Ad valorem tax expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 230.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 230.26 Td (0.48) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 230.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 230.26 Td (0.34) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 230.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 230.31 Td (0.21) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 230.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 230.31 Td (0.14) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 230.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 230.31 Td (0.13) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 230.26 Td (41) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 230.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 230.26 Td (62) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 230.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 216.26 Td (Depletion, depreciation, amortization,) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 207.76 Td (and asset retirement obligation liability) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 199.26 Td (accretion) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 199.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 233.85 199.26 Td (15.15) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 199.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 286.85 199.26 Td (12.53) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 199.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 339.85 199.31 Td (14.30) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 199.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 199.31 Td (2.62) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 199.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 199.26 Td (\(1.77) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 199.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 503.10 199.26 Td (21) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 199.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 199.26 Td (\(12) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 199.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 185.26 Td (General and administrative ) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 154.95 189.32 Td (\(2\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 185.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 185.26 Td (2.65) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 185.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 185.26 Td (2.64) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 185.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 185.31 Td (2.26) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 185.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 185.31 Td (0.01) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 185.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 185.31 Td (0.38) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 504.10 185.26 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 185.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 185.26 Td (17) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 185.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 171.26 Td (Derivative settlement gain \(loss\) ) Tj ET Q BT /F1 8.50 Tf ET BT /F1 5.52 Tf ET q 0 0 0 rg BT 174.30 175.32 Td (\(3\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 171.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 235.75 171.26 Td (\(3.09) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 255.15 171.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 171.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 291.60 171.26 Td (0.48) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 171.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 344.60 171.31 Td (5.96) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 171.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.75 171.26 Td (\(3.57) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 414.15 171.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 171.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 447.75 171.26 Td (\(5.48) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 467.15 171.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 495.55 171.26 Td (\(744) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.60 171.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 553.30 171.26 Td (\(92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 565.60 171.26 Td (\)%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 39.00 157.26 Td (Earnings per share information:) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 143.76 Td (Basic weighted-average common shares) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 135.26 Td (outstanding \(in thousands\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 224.40 135.26 Td (1) Tj ET Q q 0 0 0 rg BT 229.13 135.26 Td (1) Tj ET Q q 0 0 0 rg BT 233.86 135.26 Td (1,912) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 277.40 135.26 Td (1) Tj ET Q q 0 0 0 rg BT 282.13 135.26 Td (1) Tj ET Q q 0 0 0 rg BT 286.86 135.26 Td (1,428) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 335.15 135.26 Td (76,568) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.95 135.26 Td (484) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 441.15 135.26 Td (34,860) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 504.10 135.26 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 135.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 135.26 Td (46) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 135.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 121.76 Td (Diluted weighted-average common) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 113.26 Td (shares outstanding \(in thousands\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 224.40 113.26 Td (1) Tj ET Q q 0 0 0 rg BT 229.13 113.26 Td (13,502) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 277.40 113.26 Td (1) Tj ET Q q 0 0 0 rg BT 282.13 113.26 Td (1) Tj ET Q q 0 0 0 rg BT 286.86 113.26 Td (1,428) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 335.15 113.26 Td (76,568) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 392.85 113.31 Td (2,074) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 441.15 113.26 Td (34,860) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 507.85 113.26 Td (2) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 113.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 113.26 Td (46) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 113.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 99.76 Td (Basic net income \(loss\) per common ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 91.26 Td (share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 91.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 91.26 Td (4.54) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 91.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 288.75 91.26 Td (\(1.44) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 308.15 91.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 91.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.75 91.26 Td (\(9.90) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 361.15 91.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 91.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 91.31 Td (5.98) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 91.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 91.31 Td (8.46) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 498.40 91.26 Td (415) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 91.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 91.26 Td (85) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 91.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 77.76 Td (Diluted net income \(loss\) per common ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 51.00 69.26 Td (share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 212.00 69.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 238.60 69.26 Td (4.48) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.00 69.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 288.75 69.26 Td (\(1.44) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 308.15 69.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 318.00 69.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.75 69.26 Td (\(9.90) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 361.15 69.26 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.00 69.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 397.60 69.31 Td (5.92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 424.00 69.26 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 450.60 69.31 Td (8.46) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 498.40 69.26 Td (41) Tj ET Q q 0 0 0 rg BT 507.86 69.26 Td (1) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 515.40 69.26 Td (%) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 556.10 69.26 Td (85) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 568.40 69.26 Td (%) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (52) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 742.65 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 735.14 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 730.85 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 730.85 Td (Amounts and percentage changes may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 724.34 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 720.05 Td (Prior periods have been adjusted to conform to the current period presentation on the consolidated financial statements. Please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 709.25 Td (refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 85.01 709.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 151.21 709.25 Td (Accounting Standards) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 239.27 709.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.77 709.25 Td (in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 251.27 709.25 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 382.50 709.25 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.54 709.25 Td ( in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 698.45 Td (report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 691.94 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 687.65 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 687.65 Td (Derivative settlements for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.08 687.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.13 687.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.13 687.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.15 687.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.67 687.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.69 687.65 Td (, are included within the net derivative \(gain\) loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 676.85 Td (line item in the accompanying statements of operations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 654.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 654.05 Td (A) Tj ET Q q 0 0 0 rg BT 77.84 654.05 Td (verage net equivalent daily production for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.49 654.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.54 654.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.54 654.05 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.57 654.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.07 654.05 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.61 654.05 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.14 654.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 567.16 654.05 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 643.25 Td (This decrease is primarily due to the divestiture of our outside-operated Eagle Ford shale assets in the first quarter of 2017, the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 632.45 Td (divestiture of our remaining producing assets in the Rocky Mountain region in the first half of 2018, and decreasing production due to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 621.65 Td (reduced capital investment in our operated Eagle Ford shale assets. Production decreases in the Eagle Ford shale and Rocky ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 610.85 Td (Mountain region were substantially of) Tj ET Q q 0 0 0 rg BT 184.42 610.85 Td (fset by our Permian region, which had a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.51 610.85 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.04 610.85 Td ( increase in production volumes for the year ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 600.05 Td (ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.53 600.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.58 600.05 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.60 600.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.63 600.05 Td (. W) Tj ET Q q 0 0 0 rg BT 244.46 600.05 Td (e anticipate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.99 600.05 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.01 600.05 Td ( total production to be higher than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.61 600.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.63 600.05 Td ( total production, driven by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 589.25 Td (continued development of our Permian assets in the Midland Basin. Please refer to) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.69 589.25 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 371.19 589.25 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 525.59 589.25 Td (rends ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 578.45 Td (Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 251.19 578.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.69 578.45 Td (below for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 555.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 555.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 555.65 Td (e present certain information on a per BOE basis in order to evaluate our performance relative to our peers and to identify ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 544.85 Td (and measure trends we believe may require additional analysis and discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 522.05 Td (Changes in production volumes, revenues, and costs are directly influenced by the volatility of commodity prices for the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 511.25 Td (products we produce, fluctuations in costs necessary to develop and operate our properties, our ability to increase ef) Tj ET Q q 0 0 0 rg BT 499.10 511.25 Td (ficiencies in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 500.45 Td (operations, and changes in our overall asset portfolio. Our realized price before the ef) Tj ET Q q 0 0 0 rg BT 378.54 500.45 Td (fect of derivative settlements on a per BOE basis ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 489.65 Td (for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.55 489.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.60 489.65 Td (, increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.12 489.65 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 279.65 489.65 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.18 489.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.20 489.65 Td (, which was driven primarily by a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.25 489.65 Td (37 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.78 489.65 Td ( growth ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 478.85 Td (in higher margin oil production and improved benchmark pricing for oil and NGLs. For the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.21 478.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.26 478.85 Td (, we realized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 468.05 Td (a loss of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.02 468.05 Td ($3.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 94.54 468.05 Td ( per BOE on the settlement of our derivative contracts, which was primarily driven by improving oil and NGL) Tj ET Q q 0 0 0 rg BT 521.89 468.05 Td ( prices in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 457.25 Td (2018, compared to a gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 150.58 457.25 Td ($0.48) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 173.10 457.25 Td ( per BOE in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 222.12 457.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.14 457.25 Td (. Settlement losses due to strengthening commodity prices in 2018 were partially ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 446.45 Td (of) Tj ET Q q 0 0 0 rg BT 43.34 446.45 Td (fset by cash settlement gains on our Midland Basin oil basis swaps that settled during 2018. Overall, there was a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.09 446.45 Td (19 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.62 446.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.12 446.45 Td (increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 575.13 446.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 435.65 Td (in our realized price after the ef) Tj ET Q q 0 0 0 rg BT 159.90 435.65 Td (fect of derivative settlements for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.01 435.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.06 435.65 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.08 435.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.10 435.65 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 412.85 Td (Lease operating expense \(“LOE”\) increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 249.60 412.85 Td (seven percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 306.14 412.85 Td ( on a per BOE basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.73 412.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.78 412.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 402.05 Td (compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.03 402.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.05 402.05 Td (. ) Tj ET Q q 0 0 0 rg BT 124.39 402.05 Td (This increase was primarily driven by the increased percentage of oil in our total product mix, which has higher ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 391.25 Td (lifting costs per BOE. W) Tj ET Q q 0 0 0 rg BT 133.37 391.25 Td (e expect LOE on a per BOE basis to be flat or slightly higher in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.50 391.25 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.52 391.25 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.05 391.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.07 391.25 Td ( as our product mix ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 380.45 Td (continues to shift towards more oil production. W) Tj ET Q q 0 0 0 rg BT 232.43 380.45 Td (e anticipate volatility in LOE on a per BOE basis as a result of changes in total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 369.65 Td (production, changes in our overall production mix, timing of workover projects, and changes in industry activity and the ef) Tj ET Q q 0 0 0 rg BT 516.59 369.65 Td (fects this has ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 358.85 Td (on service provider costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 336.05 Td (T) Tj ET Q q 0 0 0 rg BT 77.16 336.05 Td (ransportation costs decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.23 336.05 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.76 336.05 Td ( on a per BOE basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.36 336.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.41 336.05 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.43 336.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 566.46 336.05 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 325.25 Td (The decrease in transportation costs per BOE continues to be driven by production decreases from our Eagle Ford shale assets, which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 314.45 Td (have higher average transportation costs. Our Permian region production is primarily sold at the wellhead and therefore is subject to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 303.65 Td (minimal transportation costs. W) Tj ET Q q 0 0 0 rg BT 163.88 303.65 Td (e expect total transportation costs to fluctuate in line with changes in production from our operated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 292.85 Td (Eagle Ford shale program as these assets incur the majority of our transportation costs. On a per BOE basis, we expect transportation ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 282.05 Td (costs to decrease in 2019, as compared with 2018, as production from our Midland Basin assets continues to become a larger portion ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 271.25 Td (of our total production. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 248.45 Td (Production taxes on a per BOE basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.63 248.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.68 248.45 Td (, increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 423.21 248.45 Td (29 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.74 248.45 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.26 248.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.29 248.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 237.65 Td (primarily due to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.53 237.65 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 150.06 237.65 Td ( increase in our realized price on a per BOE basis before the ef) Tj ET Q q 0 0 0 rg BT 401.04 237.65 Td (fect of derivative settlements for the year ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 226.85 Td (ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.53 226.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.58 226.85 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.60 226.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.63 226.85 Td (. Our overall production tax rate for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.74 226.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.79 226.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.31 226.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.33 226.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 216.05 Td (was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.51 216.05 Td (4.1 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 99.54 216.05 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.55 216.05 Td (4.2 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 164.58 216.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 216.44 216.05 Td (. ) Tj ET Q q 0 0 0 rg BT 223.77 216.05 Td (The slight decrease in our production tax rate was primarily a result of divesting our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 205.25 Td (remaining producing assets in the Rocky Mountain region, which were taxed at higher rates than our ) Tj ET Q q 0 0 0 rg BT 437.56 205.25 Td (T) Tj ET Q q 0 0 0 rg BT 442.06 205.25 Td (exas properties. W) Tj ET Q q 0 0 0 rg BT 519.42 205.25 Td (e generally ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 194.45 Td (expect production tax expense to trend with oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 281.31 194.45 Td ( production revenue on an absolute and per BOE basis. W) Tj ET Q q 0 0 0 rg BT 516.29 194.45 Td (e expect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 183.65 Td (overall production tax expense to remain consistent in 2019 compared to 2018, as the impacts of expected higher production volumes ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 172.85 Td (are expected to be of) Tj ET Q q 0 0 0 rg BT 120.40 172.85 Td (fset by lower commodity prices, assuming such prices are consistent with the 12-month strip pricing as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 162.05 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.54 162.05 Td (, as presented above within the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 231.62 162.05 Td (Oil, Gas, and NGL) Tj ET Q q 0 0 0 rg BT 304.99 162.05 Td ( Prices) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.49 162.05 Td ( section. W) Tj ET Q q 0 0 0 rg BT 379.34 162.05 Td (e expect our overall production tax rate to remain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (consistent in 2019 compared to 2018. Product mix, the location of production, and incentives to encourage oil and gas development ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (can also impact the amount of production tax we recognize.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 117.65 Td (Ad valorem tax expense on a per BOE basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.15 117.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.20 117.65 Td (, increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.72 117.65 Td (41 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.25 117.65 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 106.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 106.85 Td (, due to changes in our asset and production base and increased commodity price assumptions used in 2018 property tax ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 96.05 Td (valuations. ) Tj ET Q q 0 0 0 rg BT 83.87 96.05 Td (The majority of ad valorem tax expense is related to our ) Tj ET Q q 0 0 0 rg BT 308.31 96.05 Td (T) Tj ET Q q 0 0 0 rg BT 312.81 96.05 Td (exas properties. W) Tj ET Q q 0 0 0 rg BT 390.18 96.05 Td (e expect an overall increase in the value ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 85.25 Td (attributed to our reserves volumes in 2019, which would increase ad valorem tax on an absolute basis compared with 2018. On a per ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 74.45 Td (BOE basis, we expect 2019 ad valorem expense to also increase compared to 2018, but this increase could be partially of) Tj ET Q q 0 0 0 rg BT 521.12 74.45 Td (fset by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 63.65 Td (expected increases in production volumes in 2019 compared with the prior year) Tj ET Q q 0 0 0 rg BT 351.68 63.65 Td (.) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (Depletion, depreciation, amortization, and asset retirement obligation liability accretion \(“DD&A”\) expense on a per BOE basis ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.52 729.65 Td (21 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 120.05 729.65 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.11 729.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.15 729.65 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.18 729.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.20 729.65 Td (. ) Tj ET Q q 0 0 0 rg BT 370.54 729.65 Td (The increase was primarily driven by the increase ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (in production volumes from our Midland Basin assets, which have higher depletion rates than our Eagle Ford shale assets. DD&A) Tj ET Q q 0 0 0 rg BT 552.77 718.85 Td ( was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (also higher as a result of the capital we invested in 2018 to construct our water transportation facilities in the Midland Basin. Our DD&A) Tj ET Q q 0 0 0 rg BT 573.78 708.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (rate fluctuates as a result of impairments, divestiture activity) Tj ET Q q 0 0 0 rg BT 273.43 697.25 Td (, carrying cost funding and sharing arrangements with third parties, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 686.45 Td (changes in our production mix, and changes in our total estimated proved reserve volumes. In general, we expect DD&A) Tj ET Q q 0 0 0 rg BT 517.26 686.45 Td ( expense on a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 675.65 Td (per BOE basis in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 106.03 675.65 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.05 675.65 Td ( to increase compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.10 675.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.13 675.65 Td ( as production from our Midland Basin program continues to increase as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 664.85 Td (percentage of our total production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 642.05 Td ( General and administrative \(“G&A”\) expense remained flat on a per BOE basis for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.20 642.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.25 642.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.03 631.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.05 631.25 Td (. W) Tj ET Q q 0 0 0 rg BT 132.88 631.25 Td (e expect G&A) Tj ET Q q 0 0 0 rg BT 187.91 631.25 Td ( expense on a per BOE basis in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.99 631.25 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.01 631.25 Td ( to decrease slightly compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.08 631.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.10 631.25 Td (, as total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (production in 2019 is expected to increase from total 2018 production.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 597.65 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 597.65 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 287.43 597.65 Td (rends Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.63 597.65 Td ( for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 564.05 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 564.05 Td (Note 9 -) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 165.05 564.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 167.55 564.05 Td (Earnings Per Share) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 246.09 564.05 Td ( in Part II, Item 8 of this report for additional discussion on the types of shares ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (included in our basic and diluted net income \(loss\) per common share calculations. For the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.72 553.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.77 553.25 Td (, we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (recorded net income and thus considered dilutive shares in the calculation of diluted net income per common share as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.77 542.45 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 531.65 Td (. W) Tj ET Q q 0 0 0 rg BT 71.85 531.65 Td (e recorded a net loss for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 238.46 531.65 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.50 531.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.02 531.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.04 531.65 Td (. Consequently) Tj ET Q q 0 0 0 rg BT 421.91 531.65 Td (, all potentially dilutive shares were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (anti-dilutive and were excluded from the calculation of diluted net loss per common share for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.74 520.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.79 520.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 510.05 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (Comparison of Financial Results and T) Tj ET Q q 0 0 0 rg BT 202.03 487.25 Td (rends Between ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 268.55 487.25 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.57 487.25 Td ( and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.57 487.25 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.59 487.25 Td ( and Between ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.10 487.25 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 410.12 487.25 Td ( and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 431.13 487.25 Td (2016) Tj ET Q BT /F3 9.00 Tf ET BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 464.45 Td (Net equivalent production, production revenue, and production expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 441.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 441.65 Td (The following table presents the regional changes in our net equivalent production, production revenue, and production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 430.85 Td (expense between the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 176.10 430.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.15 430.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.67 430.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.69 430.85 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 383.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.50 383.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 383.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 383.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 383.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 383.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 355.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.50 355.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 355.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 355.35 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 355.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 355.35 121.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 397.35 m 278.5 397.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 397.35 m 403.5 397.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 397.35 m 528.5 397.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 341.35 m 278.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 341.35 m 282.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 341.35 m 403.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 341.35 m 528.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 341.35 m 278.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 328.35 m 278.5 328.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 326.35 m 278.5 326.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 341.35 m 403.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 328.35 m 403.5 328.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 326.35 m 403.5 326.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 341.35 m 528.5 341.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 328.35 m 528.5 328.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 326.35 m 528.5 326.35 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.20 410.75 Td (Net Equivalent Production) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.95 401.75 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 298.70 410.75 Td (Production Revenue) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.95 401.75 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 424.95 410.75 Td (Production Expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 424.95 401.75 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.70 387.75 Td (\(MBOE per day\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.25 387.75 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.25 387.75 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 373.75 Td (Permian) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.45 373.75 Td (27.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.00 373.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 373.75 Td (582.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 373.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.45 373.75 Td (89.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 359.75 Td (South ) Tj ET Q q 0 0 0 rg BT 64.86 359.75 Td (T) Tj ET Q q 0 0 0 rg BT 69.36 359.75 Td (exas & Gulf Coast) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.45 359.75 Td (\(20.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 359.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.45 359.75 Td (\(95.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 359.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 359.75 Td (\(64.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 359.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 345.75 Td (Rocky Mountain ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 106.03 350.04 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.45 345.75 Td (\(8.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 345.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.45 345.75 Td (\(104.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 345.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 345.75 Td (\(45.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 345.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 331.75 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 331.75 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.45 331.75 Td (\(1.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 331.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.00 331.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 331.75 Td (382.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 331.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 331.75 Td (\(20.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 331.75 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 320.65 Td (__________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 309.55 Td (Note: ) Tj ET Q q 0 0 0 rg BT 59.52 309.55 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 300.04 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 295.75 Td (W) Tj ET Q q 0 0 0 rg BT 62.33 295.75 Td (e divested all remaining producing assets in the Rocky Mountain region in the first half of 2018. ) Tj ET Q q 0 0 0 rg BT 444.55 295.75 Td (As a result, there have been no ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 284.95 Td (production volumes from this region after the second quarter of 2018.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 262.15 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 262.15 Td (e experienced a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 146.88 262.15 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 194.41 262.15 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.91 262.15 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.94 262.15 Td ( in net equivalent production in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.52 262.15 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.54 262.15 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.07 262.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.09 262.15 Td (. ) Tj ET Q q 0 0 0 rg BT 469.43 262.15 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.44 262.15 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.47 262.15 Td ( in overall ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 251.35 Td (production volumes was a result of decreased production from our operated Eagle Ford shale assets as a result of reduced capital ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 240.55 Td (investment, the divestiture of our outside-operated Eagle Ford shale assets, which occurred in the first quarter of 2017, and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 229.75 Td (divestiture of our remaining producing assets in the Rocky Mountain region in the first half of 2018. Production decreases in the Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 218.95 Td (Ford shale and Rocky Mountain region were predominately of) Tj ET Q q 0 0 0 rg BT 281.47 218.95 Td (fset by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.49 218.95 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.02 218.95 Td ( production volume increase in our Permian region ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 208.15 Td (for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.55 208.15 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.60 208.15 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.63 208.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.65 208.15 Td (. Increased production in the Permian region also drove oil production as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 197.35 Td (percentage of our overall product mix to increase from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.10 197.35 Td (31 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 296.64 197.35 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.64 197.35 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.66 197.35 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.67 197.35 Td (43 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.20 197.35 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.21 197.35 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.23 197.35 Td (. ) Tj ET Q q 0 0 0 rg BT 425.57 197.35 Td (The increase in higher margin oil ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 186.55 Td (production also increased realized prices, before the ef) Tj ET Q q 0 0 0 rg BT 254.47 186.55 Td (fects of derivative settlements, on a per BOE basis by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.57 186.55 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.10 186.55 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.10 186.55 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.12 186.55 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 175.75 Td (resulting in a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 89.53 175.75 Td (31 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 132.06 175.75 Td ( increase in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 249.79 175.75 Td ( production revenue for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.40 175.75 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.42 175.75 Td ( compared to the prior year) Tj ET Q q 0 0 0 rg BT 534.97 175.75 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 164.95 Td (Production expense in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 127.56 164.95 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 147.58 164.95 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 213.61 164.95 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.63 164.95 Td (, decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.16 164.95 Td (four percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.19 164.95 Td (, and was primarily driven by the divestiture of the remaining ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 154.15 Td (assets in our Rocky Mountain region in the first half of 2018, which had the highest average production costs in our portfolio.) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 67.00 740.45 Td (The following table presents the regional changes in our net equivalent production, production revenue, and production ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (expense between the years ended December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.13 729.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.15 729.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.67 729.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.69 729.65 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 682.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.50 682.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 682.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 682.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 682.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 682.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 654.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.50 654.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 654.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 654.15 121.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 654.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 654.15 121.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 696.15 m 278.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 696.15 m 403.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 696.15 m 528.5 696.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 640.15 m 278.5 640.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 627.15 m 278.5 627.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157.5 625.15 m 278.5 625.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 640.15 m 403.5 640.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 627.15 m 403.5 627.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 625.15 m 403.5 625.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 640.15 m 528.5 640.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 627.15 m 528.5 627.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 625.15 m 528.5 625.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.20 709.55 Td (Net Equivalent Production) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.95 700.55 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 298.70 709.55 Td (Production Revenue) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.95 700.55 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 709.55 Td (Production Expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 424.95 700.55 Td (Increase \(Decrease\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.70 686.55 Td (\(MBOE per day\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.25 686.55 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.25 686.55 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 672.55 Td (Permian) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.45 672.55 Td (19.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.00 672.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.45 672.55 Td (347.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 672.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.45 672.55 Td (76.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 658.55 Td (South ) Tj ET Q q 0 0 0 rg BT 64.94 658.55 Td (T) Tj ET Q q 0 0 0 rg BT 69.86 658.55 Td (exas & Gulf Coast) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.45 658.55 Td (\(31.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 658.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.45 658.55 Td (\(1) Tj ET Q q 0 0 0 rg BT 382.45 658.55 Td (13.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 658.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 658.55 Td (\(92.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 658.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 644.55 Td (Rocky Mountain) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.45 644.55 Td (\(17.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 644.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.45 644.55 Td (\(158.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 644.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 644.55 Td (\(73.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 644.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 630.55 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 630.55 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.45 630.55 Td (\(29.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 630.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.00 630.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.45 630.55 Td (75.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 630.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.45 630.55 Td (\(89.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.00 630.55 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 619.45 Td (__________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.35 Td (Note: ) Tj ET Q q 0 0 0 rg BT 59.52 608.35 Td (Amounts may not calculate due to rounding.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 591.55 Td (Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 143.20 591.55 Td ( production revenue increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.78 591.55 Td (six percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.30 591.55 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.30 591.55 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.33 591.55 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.85 591.55 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.87 591.55 Td ( as the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.39 591.55 Td (32 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.92 591.55 Td ( increase in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 580.75 Td (realized price, before the ef) Tj ET Q q 0 0 0 rg BT 144.90 580.75 Td (fects of derivative settlements, on a per BOE basis was mostly of) Tj ET Q q 0 0 0 rg BT 403.35 580.75 Td (fset by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.37 580.75 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.90 580.75 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.40 580.75 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.43 580.75 Td ( in net ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 569.95 Td (equivalent production volumes as a result of divestiture activity) Tj ET Q q 0 0 0 rg BT 284.46 569.95 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.96 569.95 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.98 569.95 Td ( production expense decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.07 569.95 Td ($89.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.60 569.95 Td ( when compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 559.15 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 559.15 Td ( due to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.55 559.15 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.08 559.15 Td ( decrease in net equivalent production volumes. ) Tj ET Q q 0 0 0 rg BT 331.54 559.15 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.55 559.15 Td (15 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.08 559.15 Td ( decrease in production expense was less ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 548.35 Td (than the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.03 548.35 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 113.56 548.35 Td ( decrease in net equivalent production volumes, which resulted in increased production expense per BOE. On a per ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 537.55 Td (BOE basis, production expense increased slightly in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 245.61 537.55 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.64 537.55 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.16 537.55 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.19 537.55 Td ( primarily due to the sale of our outside-operated Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 526.75 Td (Ford shale assets in the first quarter of 2017, which had lower average lifting costs per BOE than our retained assets.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 503.95 Td ( Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 135.53 503.95 Td (A) Tj ET Q q 0 0 0 rg BT 141.20 503.95 Td ( ) Tj ET Q q 0 0 0 rg BT 143.54 503.95 Td (Y) Tj ET Q q 0 0 0 rg BT 149.04 503.95 Td (ear) Tj ET Q q 0 0 0 rg BT 161.89 503.95 Td (-to-Y) Tj ET Q q 0 0 0 rg BT 180.90 503.95 Td (ear Overview of Selected Production and Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 478.89 503.95 Td (rends) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 501.40 503.95 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.90 503.95 Td (above for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 493.15 Td (discussion of trends on a per BOE basis for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.64 493.15 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.68 493.15 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.69 493.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.71 493.15 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.22 493.15 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 425.25 493.15 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 470.35 Td (Net gain \(loss\) on divestiture activity) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 417.85 253.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 417.85 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 417.85 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 417.85 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 417.85 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 417.85 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 445.85 m 358.5 445.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 445.85 m 362.5 445.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 445.85 m 431.5 445.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 445.85 m 435.5 445.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 445.85 m 504.5 445.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 431.85 m 358.5 431.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 431.85 m 431.5 431.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 431.85 m 504.5 431.85 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 450.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 450.25 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 450.25 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 436.25 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 436.25 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 436.25 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 422.25 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 408.25 Td (Net gain \(loss\) on divestiture activity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 408.25 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.45 408.25 Td (426.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 408.25 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.45 408.25 Td (\(131.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 408.25 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 408.25 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 408.25 Td (37.1) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 381.55 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.01 381.55 Td ($426.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.54 381.55 Td ( net gain on divestiture activity recorded for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.18 381.55 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.23 381.55 Td (, was the result of a total net ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 370.75 Td (gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.52 370.75 Td ($410.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.06 370.75 Td ( recorded for the PRB Divestiture, which closed in the first quarter of 2018, and a combined total net gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.29 370.75 Td ($15.4 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 359.95 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.51 359.95 Td ( recorded for the Divide County Divestiture and the Half) Tj ET Q q 0 0 0 rg BT 281.95 359.95 Td (f East Divestiture, both of which closed in the second quarter of 2018.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 337.15 Td (The net loss on divestiture activity recorded for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.13 337.15 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.18 337.15 Td (, was primarily the result of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.72 337.15 Td ($526.5 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 567.25 337.15 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 326.35 Td (of write-downs recorded on certain retained North Dakota assets previously held for sale. ) Tj ET Q q 0 0 0 rg BT 395.02 326.35 Td (These assets were divested in the second ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 315.55 Td (quarter of 2018, as discussed above. Partially of) Tj ET Q q 0 0 0 rg BT 230.45 315.55 Td (fsetting these write-downs recorded during 2017, was a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.57 315.55 Td ($396.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 509.11 315.55 Td ( total net gain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 304.75 Td (recorded on the sale of our outside-operated Eagle Ford shale assets.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 281.95 Td (The net gain on divestiture activity recorded for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.15 281.95 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.19 281.95 Td (, was primarily the result of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.74 281.95 Td ($29.5 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 271.15 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.51 271.15 Td ( net gain recorded on our Raven/Bear Den assets sold in the fourth quarter of 2016, as well as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.73 271.15 Td ($6.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.26 271.15 Td ( total net gain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 260.35 Td (recorded on the non-core Williston Basin, Powder River Basin, and southeast New Mexico asset divestitures in the third quarter of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 249.55 Td (2016.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 226.75 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 226.75 Td (Note 3 – Divestitures, ) Tj ET Q q 0 0 0 rg BT 221.23 226.75 Td (Assets Held for Sale, and ) Tj ET Q q 0 0 0 rg BT 324.95 226.75 Td (Acquisitions) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.98 226.75 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 215.95 Td (discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 193.15 Td (Depletion, depreciation, amortization, and asset retirement obligation liability accretion) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 140.65 253.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 140.65 69.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 140.65 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 140.65 69.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 140.65 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 140.65 69.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 168.64999999999998 m 358.5 168.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 168.64999999999998 m 362.5 168.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 168.64999999999998 m 431.5 168.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 168.64999999999998 m 435.5 168.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 168.64999999999998 m 504.5 168.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 154.64999999999998 m 358.5 154.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 154.64999999999998 m 431.5 154.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 154.64999999999998 m 504.5 154.64999999999998 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 173.05 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 173.05 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 173.05 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 159.05 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 159.05 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 159.05 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 145.05 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 131.05 Td (Depletion, depreciation, amortization, and asset retirement ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 122.05 Td (obligation liability accretion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 122.05 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.45 122.05 Td (665.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 122.05 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.45 122.05 Td (557.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 122.05 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.45 122.05 Td (790.7) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 36.00 95.35 Td ( ) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 72.00 95.35 Td (DD&A) Tj ET Q q 0 0 0 rg BT 96.51 95.35 Td ( expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.09 95.35 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.14 95.35 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.14 95.35 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.16 95.35 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.66 95.35 Td (19 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.19 95.35 Td ( compared with 2017. ) Tj ET Q q 0 0 0 rg BT 470.08 95.35 Td (The increase is directly ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 84.55 Td (related to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 91.04 84.55 Td (91 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 133.57 84.55 Td ( increase in production volumes from our Midland Basin assets in the Permian region, which have higher ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 73.75 Td (depletion rates than our Eagle Ford shale assets in the South ) Tj ET Q q 0 0 0 rg BT 282.49 73.75 Td (T) Tj ET Q q 0 0 0 rg BT 286.99 73.75 Td (exas & Gulf Coast region. ) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (55) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (DD&A) Tj ET Q q 0 0 0 rg BT 96.51 740.45 Td ( expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.09 740.45 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.14 740.45 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.14 740.45 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.17 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.67 740.45 Td (30 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.20 740.45 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.72 740.45 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.75 740.45 Td ( due to a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.27 740.45 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.81 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 73.02 729.65 Td ( in production volumes and the impact of assets sold or classified as held for sale throughout 2017. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 706.85 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 706.85 Td (A) Tj ET Q q 0 0 0 rg BT 138.70 706.85 Td ( ) Tj ET Q q 0 0 0 rg BT 141.04 706.85 Td (Y) Tj ET Q q 0 0 0 rg BT 146.54 706.85 Td (ear) Tj ET Q q 0 0 0 rg BT 159.39 706.85 Td (-to-Y) Tj ET Q q 0 0 0 rg BT 178.40 706.85 Td (ear Overview of Selected Production and Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 476.38 706.85 Td (rends) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 498.90 706.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.40 706.85 Td (above for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (discussion of DD&A) Tj ET Q q 0 0 0 rg BT 115.04 696.05 Td ( expense on a per BOE basis.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 673.25 Td (Exploration) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 620.75 253.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 620.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 620.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 620.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 592.75 253.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 592.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 592.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 592.75 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 648.75 m 358.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 648.75 m 362.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 648.75 m 431.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 648.75 m 435.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 648.75 m 504.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 634.75 m 358.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 634.75 m 431.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 634.75 m 504.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 578.75 m 358.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 578.75 m 431.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 578.75 m 504.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 578.75 m 358.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 565.75 m 358.5 565.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 563.75 m 358.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 578.75 m 431.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 565.75 m 431.5 565.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 563.75 m 431.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 578.75 m 504.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 565.75 m 504.5 565.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 563.75 m 504.5 563.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 653.15 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 653.15 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 653.15 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 639.15 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 639.15 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 639.15 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 625.15 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 611.15 Td (Geological and geophysical expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 611.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.45 611.15 Td (5.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 611.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 611.15 Td (4.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 611.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 611.15 Td (1) Tj ET Q q 0 0 0 rg BT 488.46 611.15 Td (1.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 597.15 Td (Exploratory dry hole) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.00 597.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 597.15 Td (2.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 597.15 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 583.15 Td (Overhead and other expenses) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 160.08 587.44 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.45 583.15 Td (49.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 583.15 Td (48.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 583.15 Td (54.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 569.15 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 569.15 Td (otal) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 58.01 573.44 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 569.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.45 569.15 Td (55.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 569.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 569.15 Td (54.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 569.15 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 569.15 Td (65.0) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 558.05 Td (___________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 550.54 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 546.25 Td (Prior periods have been adjusted to conform to the current period presentation on the consolidated financial statements. Please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 535.45 Td (refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 85.01 535.45 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 151.21 535.45 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.27 535.45 Td ( in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 251.27 535.45 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 382.50 535.45 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.54 535.45 Td ( in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 524.65 Td (report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 501.85 Td (Exploration expense ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.05 501.85 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.08 501.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 197.58 501.85 Td (one percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 245.11 501.85 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.17 501.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.21 501.85 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.24 501.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.26 501.85 Td (. In ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.77 501.85 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.79 501.85 Td (, we expect ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 491.05 Td (to continue focusing on testing and delineating our Midland Basin acreage, which may result in additional geological and geophysical ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 480.25 Td (expenses; however) Tj ET Q q 0 0 0 rg BT 113.05 480.25 Td (, we do not expect total exploration activity and related expenses to dif) Tj ET Q q 0 0 0 rg BT 392.55 480.25 Td (fer significantly compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.61 480.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.63 480.25 Td (. Our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 469.45 Td (expectations for exploration expense could change significantly depending on actual geological and geophysical studies we perform, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 458.65 Td (the amount of allocated overhead, and the potential for exploratory dry hole expense.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 435.85 Td (Exploration expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.60 435.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.65 435.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.65 435.85 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.68 435.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.18 435.85 Td (16 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.71 435.85 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.24 435.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.26 435.85 Td ( driven primarily by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 425.05 Td (geological and geophysical expenses incurred for a seismic study performed on our Midland Basin acreage in the fourth quarter of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 414.25 Td (2016, which were not incurred in 2017.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 391.45 Td (Impairment of proved properties) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 163.56 391.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 166.06 391.45 Td (and) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 181.08 391.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 183.24 391.45 Td (Abandonment and impairment of unproved properties) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 338.95 253.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 338.95 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 338.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 338.95 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 338.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 338.95 69.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 366.95 m 358.5 366.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 366.95 m 362.5 366.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 366.95 m 431.5 366.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 366.95 m 435.5 366.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 366.95 m 504.5 366.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 352.95 m 358.5 352.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 352.95 m 431.5 352.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 352.95 m 504.5 352.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 371.35 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 371.35 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 371.35 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 357.35 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 357.35 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 357.35 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 343.35 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 328.35 Td (Impairment of proved properties) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 328.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.00 328.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 328.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 328.35 Td (3.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 328.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.45 328.35 Td (354.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 313.35 Td (Abandonment and impairment of unproved properties) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 313.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.45 313.35 Td (49.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 313.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 313.35 Td (12.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 313.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 313.35 Td (80.4) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 286.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 286.65 Td (There was no impairment of proved properties expense recognized for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.19 286.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.24 286.65 Td (. Unproved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 275.85 Td (property abandonments and impairments recorded for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.16 275.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.21 275.85 Td ( related to actual and anticipated lease ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 265.05 Td (expirations, as well as actual and anticipated losses on acreage due to title defects, changes in development plans, and other inherent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 254.25 Td (acreage risks. W) Tj ET Q q 0 0 0 rg BT 105.35 254.25 Td (e expect proved property impairments to more likely occur in periods of declining or depressed commodity prices, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 243.45 Td (unproved property impairments to fluctuate with the timing of lease expirations or defects, unsuccessful exploration activities, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 232.65 Td (changing economics associated with decreases in commodity prices. ) Tj ET Q q 0 0 0 rg BT 315.14 232.65 Td (Additionally) Tj ET Q q 0 0 0 rg BT 360.50 232.65 Td (, changes in drilling plans, downward engineering ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 221.85 Td (revisions, or unsuccessful exploration ef) Tj ET Q q 0 0 0 rg BT 195.42 221.85 Td (forts may result in proved and unproved property impairments. Future impairments of proved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 211.05 Td (and unproved properties are dif) Tj ET Q q 0 0 0 rg BT 160.92 211.05 Td (ficult to predict; however) Tj ET Q q 0 0 0 rg BT 257.47 211.05 Td (, based on our updated commodity price assumptions as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.60 211.05 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.14 211.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 200.25 Td (we do not expect any material impairments in the first quarter of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.12 200.25 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.14 200.25 Td ( resulting from commodity price impacts. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 539.22 200.25 Td (Critical ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 189.45 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 173.57 189.45 Td ( below for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 166.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 166.65 Td (There was no material impairment of proved properties recognized for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.18 166.65 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.23 166.65 Td (. ) Tj ET Q q 0 0 0 rg BT 501.23 166.65 Td (Abandonment and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 155.85 Td (impairment of unproved properties expense recorded during the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.19 155.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.23 155.85 Td (, related primarily to lease expirations.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 133.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 133.05 Td (The majority of our proved property impairments during 2016 were recorded in the first quarter of 2016 in our outside-operated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 122.25 Td (Eagle Ford shale program as a result of commodity price declines. In the fourth quarter of 2016, we recorded proved and unproved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 111.45 Td (property impairment expense on our Powder River Basin assets as a result of negative performance reserve revisions at year end 2016 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 100.65 Td (and lower market prices on third-party acreage transactions. ) Tj ET Q q 0 0 0 rg BT 280.12 100.65 Td (Additionally) Tj ET Q q 0 0 0 rg BT 325.48 100.65 Td (, we allowed certain leases to expire throughout the year ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 89.85 Td (ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.53 89.85 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.58 89.85 Td (.) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (56) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (General and administrative) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 687.95 253.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 687.95 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 687.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 687.95 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 687.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 687.95 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 715.95 m 358.5 715.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 715.95 m 362.5 715.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 715.95 m 431.5 715.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 715.95 m 435.5 715.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 715.95 m 504.5 715.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 701.95 m 358.5 701.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 701.95 m 431.5 701.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 701.95 m 504.5 701.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 720.35 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 720.35 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 720.35 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 706.35 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 706.35 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 706.35 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 692.35 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 678.35 Td (General and administrative ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 151.06 682.64 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 678.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.45 678.35 Td (1) Tj ET Q q 0 0 0 rg BT 337.46 678.35 Td (16.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 678.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.45 678.35 Td (1) Tj ET Q q 0 0 0 rg BT 410.46 678.35 Td (17.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 678.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.45 678.35 Td (124.8) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 667.25 Td (___________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 659.74 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 655.45 Td (Prior periods have been adjusted to conform to the current period presentation on the consolidated financial statements. Please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 644.65 Td (refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 85.01 644.65 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 151.21 644.65 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.27 644.65 Td ( in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 251.27 644.65 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 382.50 644.65 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.54 644.65 Td ( in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 633.85 Td (report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 611.95 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 611.95 Td (G&A) Tj ET Q q 0 0 0 rg BT 90.51 611.95 Td ( expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.09 611.95 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.14 611.95 Td (, was flat compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.18 611.95 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.20 611.95 Td (. W) Tj ET Q q 0 0 0 rg BT 419.03 611.95 Td (e expect G&A) Tj ET Q q 0 0 0 rg BT 474.06 611.95 Td ( expense in total to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 601.15 Td (continue to remain relatively flat in 2019 compared with 2018. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 346.67 601.15 Td (A) Tj ET Q q 0 0 0 rg BT 352.34 601.15 Td ( ) Tj ET Q q 0 0 0 rg BT 354.68 601.15 Td (Y) Tj ET Q q 0 0 0 rg BT 360.18 601.15 Td (ear) Tj ET Q q 0 0 0 rg BT 373.03 601.15 Td (-to-Y) Tj ET Q q 0 0 0 rg BT 392.04 601.15 Td (ear Overview of Selected Production and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 590.35 Td (Financial Information, Including T) Tj ET Q q 0 0 0 rg BT 167.90 590.35 Td (rends) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 190.41 590.35 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 192.91 590.35 Td (above for discussion of G&A) Tj ET Q q 0 0 0 rg BT 305.97 590.35 Td ( costs on a per BOE basis.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 567.55 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 567.55 Td (G&A) Tj ET Q q 0 0 0 rg BT 90.51 567.55 Td ( expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.09 567.55 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.14 567.55 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.14 567.55 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.17 567.55 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.67 567.55 Td (six percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.19 567.55 Td ( from 2016 primarily due to decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 556.75 Td (compensation expense resulting from lower average headcount for the full year in 2017.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 533.95 Td (Net derivative \(gain\) loss) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 481.45 253.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 481.45 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 481.45 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 481.45 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 481.45 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 481.45 69.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 509.45 m 358.5 509.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 509.45 m 362.5 509.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 509.45 m 431.5 509.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 509.45 m 435.5 509.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 509.45 m 504.5 509.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 495.45 m 358.5 495.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 495.45 m 431.5 495.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 495.45 m 504.5 495.45 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 513.85 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 513.85 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 513.85 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 499.85 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 499.85 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 499.85 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 485.85 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 471.85 Td (Net derivative \(gain\) loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 471.85 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.45 471.85 Td (\(161.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 471.85 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 471.85 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 471.85 Td (26.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 471.85 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.45 471.85 Td (250.6) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 445.15 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 445.15 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 445.15 Td (e recognized a net derivative gain of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.43 445.15 Td ($161.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.96 445.15 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 361.01 445.15 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.06 445.15 Td (. For contracts that settled during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 434.35 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 434.35 Td (, the fair value was a net liability of $108.3 million at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.63 434.35 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.68 434.35 Td (, and net cash settlements paid totaled $135.8 million, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 423.55 Td (resulting in a $27.5 million loss. ) Tj ET Q q 0 0 0 rg BT 165.57 423.55 Td (Additionally) Tj ET Q q 0 0 0 rg BT 210.93 423.55 Td (, we recorded a $189.3 million mark-to-market gain on remaining contracts as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 412.75 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 412.75 Td (, resulting from a decrease in commodity strip prices toward the end of 2018.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 389.95 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 389.95 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 389.95 Td (e recognized a net derivative loss of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.42 389.95 Td ($26.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.94 389.95 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.99 389.95 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.04 389.95 Td (. For contracts that settled during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 379.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 379.15 Td (, the fair value was a net liability of $60.9 million at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.63 379.15 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.68 379.15 Td (, and net cash settlements received totaled $21.2 million, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 368.35 Td (resulting in an $82.1 million gain. Of) Tj ET Q q 0 0 0 rg BT 181.42 368.35 Td (fsetting this gain was a $108.5 million mark-to-market loss on remaining contracts as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 357.55 Td (December 31, 2017, resulting from an increase in commodity strip prices.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 334.75 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 334.75 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 334.75 Td (e recognized a net derivative loss of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.42 334.75 Td ($250.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.95 334.75 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.00 334.75 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.05 334.75 Td (. For contracts that settled during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 323.95 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 323.95 Td (, the fair value was a net asset of $367.7 million at December 31, 2015, and net cash settlements received totaled $329.5 million, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.15 Td (resulting in a $38.2 million loss. ) Tj ET Q q 0 0 0 rg BT 165.57 313.15 Td (Additionally) Tj ET Q q 0 0 0 rg BT 210.93 313.15 Td (, we recorded a $212.4 million mark-to-market loss on remaining contracts as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 302.35 Td (December 31, 2016, resulting from an increase in commodity strip prices.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 279.55 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 279.55 Td (Note 10 – Derivative Financial Instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.61 279.55 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 256.75 Td (Interest expense) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 204.25 253.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 204.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 204.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 204.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 204.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 204.25 69.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 232.25 m 358.5 232.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 232.25 m 362.5 232.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 232.25 m 431.5 232.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 232.25 m 435.5 232.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 232.25 m 504.5 232.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 218.25 m 358.5 218.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 218.25 m 431.5 218.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 218.25 m 504.5 218.25 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 236.65 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 236.65 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 236.65 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 222.65 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 222.65 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 222.65 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 208.65 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 195.20 Td (Interest expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 195.20 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 329.45 195.20 Td (\(160.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 195.20 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 195.20 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.45 195.20 Td (\(179.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 195.20 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 195.20 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.45 195.20 Td (\(158.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.00 195.20 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 168.95 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 168.95 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.01 168.95 Td ($18.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 140.54 168.95 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.04 168.95 Td (10 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.57 168.95 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.57 168.95 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.60 168.95 Td ( in interest expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 168.95 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.74 168.95 Td (, compared with the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 158.15 Td (same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.53 158.15 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.55 158.15 Td (, was driven in part by the redemption of our 2021 Senior Notes, which reduced interest expense related to debt in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 147.35 Td (2018 by $9.4 million compared with 2017. In addition to the overall reduction in debt, interest expense was also reduced as the amount ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 136.55 Td (of interest we capitalized increased given our higher level of development activity in 2018 compared with 2017. ) Tj ET Q q 0 0 0 rg BT 480.76 136.55 Td (As a result of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 125.75 Td (overall reduction in long-term debt, we expect interest expense related to our Senior Notes to be lower in 2019 compared with 2018; ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.95 Td (however) Tj ET Q q 0 0 0 rg BT 69.52 114.95 Td (, total interest expense can vary based on the timing and amount of any borrowings against our credit facility) Tj ET Q q 0 0 0 rg BT 499.59 114.95 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.15 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 92.15 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.01 92.15 Td ($20.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 140.54 92.15 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.04 92.15 Td (13 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.57 92.15 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.57 92.15 Td (increase) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.59 92.15 Td ( in interest expense for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.69 92.15 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.74 92.15 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.77 92.15 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.79 92.15 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 81.35 Td (was driven by an increase in total debt outstanding for full year 2017 due to additional debt issuances in the second half of 2016. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 70.55 Td (Of) Tj ET Q q 0 0 0 rg BT 45.34 70.55 Td (fsetting a portion of the increase was additional interest expense of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 70.55 Td ($10.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.53 70.55 Td ( recognized in 2016 as a result of terminating an ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 59.75 Td (unused second lien facility that was no longer necessary to fund a portion of our Midland Basin acquisitions.) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 740.45 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 197.24 740.45 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.25 740.45 Td ( in Part II, Item 8 of this report and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 372.82 740.45 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.40 740.45 Td ( below ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (Gain \(loss\) on extinguishment of debt) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 185.08 706.85 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 654.35 253.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 654.35 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 654.35 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 654.35 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 654.35 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 654.35 69.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 682.35 m 358.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 682.35 m 362.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 682.35 m 431.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 682.35 m 435.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 682.35 m 504.5 682.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 668.35 m 358.5 668.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 668.35 m 431.5 668.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 668.35 m 504.5 668.35 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 686.75 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 686.75 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 686.75 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 672.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 672.75 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 672.75 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.25 658.75 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 645.30 Td (Gain \(loss\) on extinguishment of debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 645.30 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.45 645.30 Td (\(26.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 355.00 645.30 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 645.30 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.00 645.30 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 645.30 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.45 645.30 Td (15.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 641.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 619.05 Td (For the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 150.55 619.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.60 619.05 Td (, we recorded a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.13 619.05 Td ($26.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.66 619.05 Td ( net loss on the early extinguishment of our 2021 Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.25 Td (Notes, 2023 Senior Notes, and a portion of our 2022 Senior Notes. ) Tj ET Q q 0 0 0 rg BT 306.51 608.25 Td (The net loss on extinguishment of debt included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.63 608.25 Td ($20.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.16 608.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.45 Td (associated with the premiums paid upon redemption and repurchase, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.68 597.45 Td ($6.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.20 597.45 Td ( related to the acceleration of unamortized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.65 Td (deferred financing costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 563.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 563.85 Td (For the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 150.55 563.85 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.60 563.85 Td (, we recorded a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.13 563.85 Td ($15.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.66 563.85 Td ( net gain on the early extinguishment of a portion of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.05 Td (Senior Notes, which included $16.4 million associated with the discount realized upon repurchase, slightly of) Tj ET Q q 0 0 0 rg BT 466.58 553.05 Td (fset by $700,000 related to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.25 Td (the acceleration of unamortized deferred financing costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 519.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 519.45 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 519.45 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 197.24 519.45 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 234.25 519.45 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 496.65 Td (Income tax \(expense\) benefit) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 444.15 253.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 444.15 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 444.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 444.15 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 444.15 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 444.15 69.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 472.15 m 358.5 472.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 472.15 m 362.5 472.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 472.15 m 431.5 472.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 472.15 m 435.5 472.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 472.15 m 504.5 472.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 458.15 m 358.5 458.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 458.15 m 431.5 458.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 458.15 m 504.5 458.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.55 476.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 355.47 476.55 Td (Y) Tj ET Q q 0 0 0 rg BT 361.14 476.55 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.45 462.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 462.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 462.55 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.20 448.55 Td (\(in millions, except tax rate\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 435.10 Td (Income tax \(expense\) benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.00 435.10 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.40 435.10 Td (\(143.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.95 435.10 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 435.10 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.40 435.10 Td (183.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 435.10 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.40 435.10 Td (444.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 41.00 419.55 Td (Ef) Tj ET Q q 0 0 0 rg BT 49.34 419.55 Td (fective tax rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.40 419.55 Td (22.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.95 419.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.40 419.55 Td (53.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.95 419.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.40 419.55 Td (37.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.95 419.55 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 392.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 392.85 Td (The decrease in the ef) Tj ET Q q 0 0 0 rg BT 161.39 392.85 Td (fective tax rate for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.42 392.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.45 392.85 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.97 392.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.99 392.85 Td ( is primarily due to the impacts of the ) Tj ET Q q 0 0 0 rg BT 487.89 392.85 Td (T) Tj ET Q q 0 0 0 rg BT 492.39 392.85 Td (ax Cuts and Jobs ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 382.05 Td (Act \(the “2017 ) Tj ET Q q 0 0 0 rg BT 94.87 382.05 Td (T) Tj ET Q q 0 0 0 rg BT 99.37 382.05 Td (ax ) Tj ET Q q 0 0 0 rg BT 110.88 382.05 Td (Act”\). ) Tj ET Q q 0 0 0 rg BT 137.21 382.05 Td (The 18.5 percentage point increase in 2017 from a nonrecurring deferred tax adjustment was caused by the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 371.25 Td (14 percentage point decrease in the highest marginal corporate rate from 35 percent to 21 percent beginning in 2018. ) Tj ET Q q 0 0 0 rg BT 508.14 371.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 533.50 371.25 Td (fect for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 360.45 Td (2017 was cumulatively added to a tax benefit calculated for that year) Tj ET Q q 0 0 0 rg BT 308.67 360.45 Td (. ) Tj ET Q q 0 0 0 rg BT 316.01 360.45 Td (The 14 percentage point decrease is reflected in the 2018 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 349.65 Td (income tax expense rate. In addition, the year-over-year tax rate decreased due to ef) Tj ET Q q 0 0 0 rg BT 376.03 349.65 Td (fects related to an excess tax deficiency from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 338.85 Td (settlement of employee share-based payment awards, which had the ef) Tj ET Q q 0 0 0 rg BT 320.50 338.85 Td (fect of increasing the 2018 tax rate and partially of) Tj ET Q q 0 0 0 rg BT 519.46 338.85 Td (fsetting the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 328.05 Td (year-over-year decrease. Other nominal 2018 tax rate decreases included ef) Tj ET Q q 0 0 0 rg BT 343.00 328.05 Td (fects from property sales, net apportionment changes, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 317.25 Td (research credits, and percentage depletion of) Tj ET Q q 0 0 0 rg BT 216.45 317.25 Td (fset by the ef) Tj ET Q q 0 0 0 rg BT 267.82 317.25 Td (fects from limits to certain covered individual’) Tj ET Q q 0 0 0 rg BT 446.23 317.25 Td (s compensation.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 294.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 294.45 Td (The increase in the ef) Tj ET Q q 0 0 0 rg BT 158.39 294.45 Td (fective tax rate in 2017 compared with 2016 was primarily due to the enactment of the 2017 ) Tj ET Q q 0 0 0 rg BT 524.43 294.45 Td (T) Tj ET Q q 0 0 0 rg BT 528.93 294.45 Td (ax ) Tj ET Q q 0 0 0 rg BT 540.44 294.45 Td (Act into ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 283.65 Td (law on December 22, 2017, which decreased the highest marginal corporate tax rate and resulted in an 18.5 percentage point ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 272.85 Td (nonrecurring benefit adjustment increasing the ef) Tj ET Q q 0 0 0 rg BT 230.95 272.85 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 296.82 272.85 Td (This increase was partially of) Tj ET Q q 0 0 0 rg BT 412.20 272.85 Td (fset by an excess tax deficiency from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 262.05 Td (settlement of employee share-based payment awards, state apportionment changes due to the sale of our outside-operated Eagle Ford ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 251.25 Td (shale assets, and a net decrease in valuation allowances due to projected utilization of various state net operating losses.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 228.45 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 228.45 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 309.62 228.45 Td ( and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 329.63 228.45 Td (Critical ) Tj ET Q q 0 0 0 rg BT 359.30 228.45 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.87 228.45 Td ( below as well as ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 217.65 Td (Note 4 – Income T) Tj ET Q q 0 0 0 rg BT 109.21 217.65 Td (axes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.22 217.65 Td ( in in Part II, Item 8 of this report for further discussion.) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (58) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Overview of Liquidity and Capital Resources) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 226.55 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (Based on the current commodity price environment, we believe we have suf) Tj ET Q q 0 0 0 rg BT 373.49 717.65 Td (ficient liquidity and capital resources to execute ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (our business plan for the foreseeable future. W) Tj ET Q q 0 0 0 rg BT 225.44 706.85 Td (e continue to manage the duration and level of our drilling and completion service ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (commitments to maintain the flexibility to adjust our activity and capital expenditures.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 673.25 Td (Sources of Cash) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 102.53 673.25 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 650.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 650.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 650.45 Td (e currently expect our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.37 650.45 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 189.40 650.45 Td ( capital program to be funded by cash flows from operations, cash proceeds from prior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 639.65 Td (divestiture activities, and with any remaining cash needs being funded by borrowings under our credit facility) Tj ET Q q 0 0 0 rg BT 465.57 639.65 Td (. During the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 628.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 628.85 Td (, we generated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.09 628.85 Td ($720.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.62 628.85 Td ( of cash flows from operating activities and we received ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 455.23 628.85 Td ($748.5 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.76 628.85 Td ( of net proceeds ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 618.05 Td (from the sale of oil and gas properties. ) Tj ET Q q 0 0 0 rg BT 193.59 618.05 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.60 618.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.65 618.05 Td (, the combination of our cash balance of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.75 618.05 Td ($78.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.28 618.05 Td ( with our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.79 618.05 Td ($1.0 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 607.25 Td (billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.01 607.25 Td ( of available borrowing capacity under our Credit ) Tj ET Q q 0 0 0 rg BT 254.12 607.25 Td (Agreement provided ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.67 607.25 Td ($1.1 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.70 607.25 Td ( in liquidity) Tj ET Q q 0 0 0 rg BT 422.06 607.25 Td (. ) Tj ET Q q 0 0 0 rg BT 429.06 607.25 Td (Although we anticipate cash flows ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (from these sources will be suf) Tj ET Q q 0 0 0 rg BT 154.38 596.45 Td (ficient to fund our expected ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.96 596.45 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.98 596.45 Td ( capital program, we may also elect to raise funds through debt or equity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (financings or from other sources. Further) Tj ET Q q 0 0 0 rg BT 200.57 585.65 Td (, we may enter into additional carrying cost funding and sharing arrangements with third ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (parties for particular exploration and/or development programs. Our borrowing base could be reduced as a result of lower commodity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (prices, divestitures of proved properties, or the issuance of debt securities. If we raise additional funds through the issuance of equity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (or convertible debt securities, the percentage ownership of our current stockholders could be diluted, and these newly-issued securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (may have rights, preferences, or privileges senior to those of existing stockholders. ) Tj ET Q q 0 0 0 rg BT 370.16 542.45 Td (Any future downgrades in our credit ratings could ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (make it more dif) Tj ET Q q 0 0 0 rg BT 99.86 531.65 Td (ficult or expensive for us to borrow additional funds. ) Tj ET Q q 0 0 0 rg BT 309.47 531.65 Td (All of our sources of liquidity can be af) Tj ET Q q 0 0 0 rg BT 460.89 531.65 Td (fected by the general ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (condition of the broader economy and by fluctuations in commodity prices, operating costs, and volumes produced, all of which af) Tj ET Q q 0 0 0 rg BT 550.62 520.85 Td (fect ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (us and our industry) Tj ET Q q 0 0 0 rg BT 111.88 510.05 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 487.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 487.25 Td (e have no control over the market prices for oil, gas, or NGLs, although we may be able to influence the amount of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (realized revenues from our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 214.76 476.45 Td ( sales through the use of derivative contracts as part of our commodity price risk ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 465.65 Td (management program. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 193.08 465.65 Td (Note 10 – Derivative Financial Instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.65 465.65 Td ( in Part II, Item 8 of this report for additional ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 454.85 Td (information about our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 192.76 454.85 Td ( derivative contracts currently in place and the timing of settlement of those contracts) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 529.92 454.85 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 432.05 Td (The enactment of the 2017 ) Tj ET Q q 0 0 0 rg BT 181.91 432.05 Td (T) Tj ET Q q 0 0 0 rg BT 186.41 432.05 Td (ax ) Tj ET Q q 0 0 0 rg BT 197.92 432.05 Td (Act reduced our highest marginal federal tax rate for 2018 and future years from 35 percent to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (21 percent. It also eliminated the domestic production activities deduction for all taxpayers, the alternative minimum tax \(“AMT”\) for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (corporate taxpayers, and may impact our ability to deduct interest expense in future years. However) Tj ET Q q 0 0 0 rg BT 435.20 410.45 Td (, it did not impact current tax ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (deductions for intangible drilling costs, percentage depletion, or amortization of geological and geophysical expenses, and it will allow ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 388.85 Td (us the option to expense 100 percent of our equipment acquisition costs in future years. In general, we believe the enactment of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 378.05 Td (2017 ) Tj ET Q q 0 0 0 rg BT 58.36 378.05 Td (T) Tj ET Q q 0 0 0 rg BT 62.86 378.05 Td (ax ) Tj ET Q q 0 0 0 rg BT 74.37 378.05 Td (Act will have a positive impact on our future operating cash flows.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 355.25 Td (Credit ) Tj ET Q q 0 0 0 rg BT 62.17 355.25 Td (Agreement) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 332.45 Td (On September 28, 2018, we entered into the Sixth ) Tj ET Q q 0 0 0 rg BT 274.13 332.45 Td (Amended and Restated Credit ) Tj ET Q q 0 0 0 rg BT 397.21 332.45 Td (Agreement with our lenders. ) Tj ET Q q 0 0 0 rg BT 514.60 332.45 Td (The Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 321.65 Td (Agreement, which replaced our Fifth ) Tj ET Q q 0 0 0 rg BT 182.58 321.65 Td (Amended and Restated Credit ) Tj ET Q q 0 0 0 rg BT 305.65 321.65 Td (Agreement, provides for a senior secured revolving credit facility ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (with a maximum loan amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 165.56 310.85 Td ($2.5 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.59 310.85 Td (, an initial borrowing base of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.15 310.85 Td ($1.5 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.18 310.85 Td (, and initial aggregate lender commitments totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td ($1.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 79.03 300.05 Td (. ) Tj ET Q q 0 0 0 rg BT 86.37 300.05 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 130.39 300.05 Td (Agreement is scheduled to mature on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.48 300.05 Td (September 28, 2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.03 300.05 Td (. ) Tj ET Q q 0 0 0 rg BT 371.37 300.05 Td (The maturity date could, however) Tj ET Q q 0 0 0 rg BT 503.94 300.05 Td (, occur earlier on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (August 16, 2022, if we have not completed certain repurchase, redemption, or refinancing activities associated with our 2022 Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 278.45 Td (Notes, as outlined in the Credit ) Tj ET Q q 0 0 0 rg BT 161.07 278.45 Td (Agreement. W) Tj ET Q q 0 0 0 rg BT 220.93 278.45 Td (e had no outstanding balance under our Credit ) Tj ET Q q 0 0 0 rg BT 408.57 278.45 Td (Agreement as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.11 278.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 556.15 278.45 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 267.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 267.65 Td (. No individual bank participating in our Credit ) Tj ET Q q 0 0 0 rg BT 241.62 267.65 Td (Agreement represents more than ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.19 267.65 Td (10 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.72 267.65 Td ( of the lender commitments under the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 256.85 Td (Credit ) Tj ET Q q 0 0 0 rg BT 62.01 256.85 Td (Agreement. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 174.57 256.85 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 238.78 256.85 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.79 256.85 Td ( in Part II, Item 8 of this report for additional discussion as well as the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 246.05 Td (presentation of the outstanding balance, total amount of letters of credit, and available borrowing capacity under our Credit ) Tj ET Q q 0 0 0 rg BT 524.80 246.05 Td (Agreement ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 235.25 Td (as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.01 235.25 Td (February 7, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.55 235.25 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.55 235.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.60 235.25 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.12 235.25 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.17 235.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 212.45 Td (The borrowing base under the Credit ) Tj ET Q q 0 0 0 rg BT 220.59 212.45 Td (Agreement is subject to regular) Tj ET Q q 0 0 0 rg BT 344.65 212.45 Td (, semi-annual redetermination, and considers the value of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 201.65 Td (both our \(a\) proved oil and gas properties reflected in the most recent reserve report provided to our lenders under the Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 190.85 Td (Agreement; and \(b\) commodity derivative contracts, each as determined by our lender group. W) Tj ET Q q 0 0 0 rg BT 420.02 190.85 Td (e do not expect a material change to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 180.05 Td (the borrowing base or the aggregate lender commitments during the next scheduled redetermination on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.75 180.05 Td (April 1, 2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.28 180.05 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 157.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 157.25 Td (e must comply with certain financial and non-financial covenants under the terms of the Credit ) Tj ET Q q 0 0 0 rg BT 455.53 157.25 Td (Agreement, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (covenants limiting dividend payments and requiring that we maintain certain financial ratios, as defined by the Credit ) Tj ET Q q 0 0 0 rg BT 499.76 146.45 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 551.12 146.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (financial covenants under the Credit ) Tj ET Q q 0 0 0 rg BT 181.59 135.65 Td (Agreement require that our \(a\) total funded debt, as defined in the Credit ) Tj ET Q q 0 0 0 rg BT 471.77 135.65 Td (Agreement, to adjusted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 124.85 Td (EBITDAX ratio for the most recently ended four consecutive fiscal quarters \(excluding the first three quarters which will use annualized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.05 Td (adjusted EBITDAX\), cannot be greater than 4.25 to 1.00 beginning with the quarter ending December 31, 2018 through and including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 103.25 Td (the fiscal quarter ending December 31, 2019, and for each quarter ending thereafter) Tj ET Q q 0 0 0 rg BT 369.72 103.25 Td (, the ratio cannot be greater than 4.00 to 1.00; and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.45 Td (\(b\) adjusted current ratio cannot be less than 1.0 to 1.0 as of the last day of any fiscal quarter) Tj ET Q q 0 0 0 rg BT 405.72 92.45 Td (. W) Tj ET Q q 0 0 0 rg BT 421.55 92.45 Td (e were in compliance with all financial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 81.65 Td (and non-financial covenants as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.59 81.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.64 81.65 Td (, and through the filing of this report. Please refer to the caption ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 508.29 81.65 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 552.48 81.65 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 70.85 Td (Financial Measures) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 114.03 70.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 116.53 70.85 Td (below for the calculation of adjusted EBITDAX and reconciliations of net income \(loss\) and net cash provided by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 60.05 Td (operating activities to adjusted EBITDAX.) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (59) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 740.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 740.45 Td (e had no credit facility borrowing activity during 2018. ) Tj ET Q q 0 0 0 rg BT 296.78 740.45 Td (This was a result of our cash balance entering 2018 and cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (proceeds received during 2018 from the PRB Divestiture, Divide County Divestiture, and Half) Tj ET Q q 0 0 0 rg BT 405.51 729.65 Td (f East Divestiture. Our daily weighted-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (average credit facility debt balance was approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.11 718.85 Td ($13.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.64 718.85 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.66 718.85 Td ($183.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.19 718.85 Td ( for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.74 718.85 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.79 718.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 708.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 107.87 708.05 Td (. Cash flows provided by our operating activities, divestiture proceeds, capital markets activities, and the amount of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (our capital expenditures, including acquisitions, all impact the amount we borrow under our credit facility) Tj ET Q q 0 0 0 rg BT 448.55 697.25 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 674.45 Td (eighted-A) Tj ET Q q 0 0 0 rg BT 82.70 674.45 Td (verage Interest Rates) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 651.65 Td (Our weighted-average interest rate includes paid and accrued interest, fees on the unused portion of the aggregate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (commitment amount under the Credit ) Tj ET Q q 0 0 0 rg BT 186.57 640.85 Td (Agreement, letter of credit fees, the non-cash amortization of deferred financing costs, and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (non-cash amortization of the discount related to the Senior Convertible Notes. Our weighted-average borrowing rate includes paid and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (accrued interest only) Tj ET Q q 0 0 0 rg BT 118.38 619.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 596.45 Td (The following table presents our weighted-average interest rates and our weighted-average borrowing rates for the years ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.53 585.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.58 585.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 147.58 585.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 167.60 585.65 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.12 585.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.14 585.65 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 547.15 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.50 547.15 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 547.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 547.15 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 547.15 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 547.15 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 561.15 m 276.5 561.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 561.15 m 280.5 561.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 561.15 m 340.5 561.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 561.15 m 344.5 561.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 561.15 m 404.5 561.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 547.15 m 276.5 547.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 547.15 m 340.5 547.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 547.15 m 404.5 547.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 547.15 m 276.5 547.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 547.15 m 340.5 547.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 547.15 m 404.5 547.15 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.05 565.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 268.97 565.55 Td (Y) Tj ET Q q 0 0 0 rg BT 274.64 565.55 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 235.95 551.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.95 551.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.95 551.55 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 537.55 Td (W) Tj ET Q q 0 0 0 rg BT 47.41 537.55 Td (eighted-average interest rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.40 537.55 Td (6.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.95 537.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.40 537.55 Td (6.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.95 537.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.40 537.55 Td (6.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.95 537.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 523.55 Td (W) Tj ET Q q 0 0 0 rg BT 47.33 523.55 Td (eighted-average borrowing rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.40 523.55 Td (5.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.95 523.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.40 523.55 Td (5.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.95 523.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.40 523.55 Td (5.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.95 523.55 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 496.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 496.85 Td (Our weighted-average interest rates and weighted average borrowing rates for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.72 496.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 532.77 496.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.77 496.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.79 496.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 486.05 Td (and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.52 486.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 73.54 486.05 Td (, have been impacted by the timing of long-term debt issuances and redemptions, the average balance on our revolving credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 475.25 Td (facility under the Credit ) Tj ET Q q 0 0 0 rg BT 130.05 475.25 Td (Agreement, and the fees paid on the unused portion of our aggregate commitment. ) Tj ET Q q 0 0 0 rg BT 465.10 475.25 Td (There was no change in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 464.45 Td (our weighted-average interest rate or weighted-average borrowing rate for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.21 464.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.26 464.45 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.78 464.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.80 464.45 Td (. ) Tj ET Q q 0 0 0 rg BT 529.14 464.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (increase in these rates for the year ended 2017, as compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.66 453.65 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.68 453.65 Td (, was largely due to the issuance of the Senior Convertible ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (Notes and the 2026 Senior Notes in the third quarter of 2016. ) Tj ET Q q 0 0 0 rg BT 284.50 442.85 Td (The rates disclosed in the above table do not reflect amounts associated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td (with the repurchase of Senior Notes, such as the discount realized or premium paid upon repurchase, or the acceleration of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (unamortized deferred financing costs expensed upon repurchase. ) Tj ET Q q 0 0 0 rg BT 302.50 421.25 Td (The rates also do not reflect the $10.0 million fee paid to terminate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (an unused second lien facility in the third quarter of 2016. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 330.18 410.45 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 394.39 410.45 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.40 410.45 Td ( in Part II, Item 8 of this report for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 376.85 Td (Uses of Cash) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 354.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 354.05 Td (e use cash for the acquisition, exploration, and development of oil and gas properties and for the payment of operating and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 343.25 Td (general and administrative costs, income taxes, dividends, and debt obligations, including interest. Expenditures for the acquisition, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 332.45 Td (exploration, and development of oil and gas properties are the primary use of our capital resources. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.24 332.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.26 332.45 Td (, we spent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 321.65 Td (approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 94.53 321.65 Td ($1.3 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 137.56 321.65 Td ( on capital expenditures and on acquisitions, which were comprised primarily of unproved oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (properties. ) Tj ET Q q 0 0 0 rg BT 83.36 310.85 Td (This amount dif) Tj ET Q q 0 0 0 rg BT 144.73 310.85 Td (fers from the costs incurred amount, which is accrual-based and includes asset retirement obligations, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (geological and geophysical expenses, and exploration overhead amounts.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 277.25 Td (The amount and allocation of our future capital expenditures will depend upon a number of factors, including the number and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 266.45 Td (size of acquisitions, our cash flows from operating, investing, and financing activities, and our ability to execute our drilling program. In ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 255.65 Td (addition, the impact of oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 195.76 255.65 Td ( prices on investment opportunities, the availability of capital, and the timing and results of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 244.85 Td (exploration and development activities may lead to changes in funding requirements for future development. ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 468.25 244.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.76 244.85 Td (W) Tj ET Q q 0 0 0 rg BT 479.09 244.85 Td (e periodically review our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 234.05 Td (capital expenditure budget to assess changes in current and projected cash flows, acquisition and divestiture activities, debt ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 223.25 Td (requirements, and other factors.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 200.45 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 200.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 200.45 Td (e may from time to time repurchase certain amounts of our outstanding debt securities for cash and/or through exchanges ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 189.65 Td (for other securities. Such repurchases or exchanges may be made in open market transactions, privately negotiated transactions, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 178.85 Td (otherwise. ) Tj ET Q q 0 0 0 rg BT 81.52 178.85 Td (Any such repurchases or exchanges will depend on prevailing market conditions, our liquidity requirements, contractual ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 168.05 Td (restrictions, compliance with securities laws, and other factors. ) Tj ET Q q 0 0 0 rg BT 289.44 168.05 Td (The amounts involved in any such transaction may be material. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 157.25 Td (Repurchases or exchanges are reviewed as part of the allocation of our capital. On July 16, 2018, we completed the 2021 Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 146.45 Td (Notes Redemption which resulted in the payment of total cash consideration, including accrued interest, of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.24 146.45 Td ($355.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.77 146.45 Td (. On ) Tj ET Q q 0 0 0 rg BT 538.28 146.45 Td (August ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 135.65 Td (20, 2018, we issued ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.56 135.65 Td ($500.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.09 135.65 Td ( in aggregate principal amount of 2027 Senior Notes which resulted in the receipt of net proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 124.85 Td ($492.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 91.53 124.85 Td ( after deducting fees of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.59 124.85 Td ($7.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 231.12 124.85 Td (, which are being amortized as deferred financing costs over the life of the 2027 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.05 Td (Senior Notes. ) Tj ET Q q 0 0 0 rg BT 95.37 114.05 Td (The proceeds received from the issuance of the 2027 Senior Notes were used to complete the ) Tj ET Q q 0 0 0 rg BT 472.92 114.05 Td (T) Tj ET Q q 0 0 0 rg BT 477.42 114.05 Td (ender Of) Tj ET Q q 0 0 0 rg BT 512.27 114.05 Td (fer and 2023 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 103.25 Td (Senior Notes Redemption. ) Tj ET Q q 0 0 0 rg BT 146.06 103.25 Td (As a result, we repurchased our 2023 Senior Notes and a portion of our 2022 Senior Notes during the third ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.45 Td (quarter of 2018, which resulted in the payment of total consideration, including accrued interest, of $497.8 million. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 552.80 92.45 Td (Note ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 81.65 Td (5 – Long-T) Tj ET Q q 0 0 0 rg BT 78.70 81.65 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.71 81.65 Td ( in Part II, Item 8 of this report for additional discussion. ) Tj ET Q q 0 0 0 rg BT 339.82 81.65 Td (As part of our strategy for 2019, we will continue to focus ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 70.85 Td (on improving our debt metrics and potentially reducing outstanding debt.) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (60) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (As of the filing of this report, we could repurchase up to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.12 740.45 Td (3,072,184) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.16 740.45 Td ( shares of our common stock under our stock repurchase ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (program, subject to the approval of our Board of Directors. Shares may be repurchased from time to time in the open market, or in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (privately negotiated transactions, subject to market conditions and other factors, including certain provisions of our Credit ) Tj ET Q q 0 0 0 rg BT 518.76 718.85 Td (Agreement, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (the indentures governing our Senior Notes, the indenture governing our Senior Convertible Notes, compliance with securities laws, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 697.25 Td (the terms and provisions of our stock repurchase program. Our Board of Directors periodically reviews this program as part of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 686.45 Td (allocation of our capital. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 164.57 686.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.59 686.45 Td (, we did not repurchase any shares of our common stock, and we currently do not plan to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 675.65 Td (repurchase any outstanding shares of our common stock during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.64 675.65 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.66 675.65 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 652.85 Td (During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.01 652.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.03 652.85 Td (, we paid ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 159.56 652.85 Td ($1) Tj ET Q q 0 0 0 rg BT 168.90 652.85 Td (1.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 209.42 652.85 Td ( in dividends to our stockholders, reflecting a dividend of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.55 652.85 Td ($0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.07 652.85 Td ( per share. Our current ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (intention is to continue to make dividend payments for the foreseeable future, subject to our future earnings, our financial condition, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (Credit ) Tj ET Q q 0 0 0 rg BT 62.01 631.25 Td (Agreement, indentures governing our Senior Convertible Notes and Senior Notes, other covenants, and other factors which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (could arise. ) Tj ET Q q 0 0 0 rg BT 86.86 620.45 Td (The payment and amount of future dividends remains at the discretion of our Board of Directors.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (Analysis of Cash Flow Changes Between 2018 and 2017 and Between 2017 and 2016) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 574.85 Td (The following tables present changes in cash flows between the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.69 574.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.74 574.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.74 574.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.76 574.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.28 574.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.30 574.85 Td (, for our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (operating, investing, and financing activities. ) Tj ET Q q 0 0 0 rg BT 216.94 564.05 Td (The year ended December 31, 2016, has been adjusted to conform to the current period ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (presentation on the consolidated financial statements. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 316.67 553.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 382.87 553.25 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.93 553.25 Td ( in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 482.93 553.25 Td (Note 1 – Summary of ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (Significant ) Tj ET Q q 0 0 0 rg BT 79.69 542.45 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 157.73 542.45 Td ( in Part II, Item 8 of this report for additional discussion of adjustments made as a result of adopting new ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (accounting standards. ) Tj ET Q q 0 0 0 rg BT 128.90 531.65 Td (The analysis following each table should be read in conjunction with our accompanying consolidated statements ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (of cash flows \(“accompanying statements of cash flows”\) in Part II, Item 8 of this report.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 498.05 Td (Operating ) Tj ET Q q 0 0 0 rg BT 113.69 498.05 Td (Activities) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 445.55 97.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 445.55 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.50 445.55 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 445.55 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 445.55 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 445.55 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 445.55 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 445.55 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.50 445.55 56.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 473.55 m 198.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 473.55 m 202.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 473.55 m 267.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 473.55 m 271.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 473.55 m 336.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 473.55 m 396.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 473.55 m 456.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 473.55 m 516.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 473.55 m 576.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 473.55 m 198.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 459.55 m 198.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 473.55 m 267.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 459.55 m 267.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 473.55 m 336.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 459.55 m 336.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 459.55 m 396.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 473.55 m 400.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 473.55 m 456.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 459.55 m 456.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 473.55 m 516.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 459.55 m 516.5 459.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 473.55 m 520.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 473.55 m 576.5 473.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 459.55 m 576.5 459.55 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.55 477.95 Td (For the ) Tj ET Q q 0 0 0 rg BT 193.47 477.95 Td (Y) Tj ET Q q 0 0 0 rg BT 199.14 477.95 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 477.95 Td (Amount Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 477.95 Td (Percent Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 155.45 463.95 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.45 463.95 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.45 463.95 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 346.70 463.95 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.70 463.95 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.70 463.95 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.70 463.95 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.25 449.95 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 426.95 Td (Net cash provided by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 417.95 Td (operating activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.00 417.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.45 417.95 Td (720.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.00 417.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.45 417.95 Td (515.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.00 417.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.45 417.95 Td (552.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 417.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.45 417.95 Td (205.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 417.95 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.45 417.95 Td (\(37.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 417.95 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.90 417.95 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.95 417.95 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 556.95 417.95 Td (\(7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 565.00 417.95 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 391.25 Td (Cash received from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 221.73 391.25 Td ( production revenues, net of transportation costs and production taxes, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 380.45 Td (derivative cash settlements, increased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 191.07 380.45 Td ($196.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 246.61 380.45 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 262.11 380.45 Td (19 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.64 380.45 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.65 380.45 Td ($1.2 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.68 380.45 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.73 380.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.78 380.45 Td (, compared ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 369.65 Td (with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.05 369.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.07 369.65 Td (, primarily as a result of an increase in our realized price, after the ef) Tj ET Q q 0 0 0 rg BT 422.03 369.65 Td (fect of derivative settlements. Interest ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 358.85 Td (paid ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 55.52 358.85 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.55 358.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 100.05 358.85 Td ($13.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 150.57 358.85 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.63 358.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.67 358.85 Td (, compared with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.25 358.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 470.27 358.85 Td (, due to the redemption ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 348.05 Td (and repurchase of senior notes in the third quarter of 2018. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 336.68 348.05 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 400.90 348.05 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.91 348.05 Td ( in Part II, Item 8 of this report for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 337.25 Td (additional discussion. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 314.45 Td (Cash received from oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 221.73 314.45 Td ( production revenues, net of transportation costs and production taxes, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 303.65 Td (derivative cash settlements, decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 194.08 303.65 Td ($91.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.61 303.65 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.11 303.65 Td (eight percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.15 303.65 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.16 303.65 Td ($1.0 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.19 303.65 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.24 303.65 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.29 303.65 Td (, compared ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 292.85 Td (with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.05 292.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.07 292.85 Td (, as a result of a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 217.60 292.85 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 260.13 292.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 262.63 292.85 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.66 292.85 Td ( in production volumes partially of) Tj ET Q q 0 0 0 rg BT 433.06 292.85 Td (fset by an increase in our realized ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 282.05 Td (price after the ef) Tj ET Q q 0 0 0 rg BT 100.87 282.05 Td (fect of derivative settlements. Interest paid ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.46 282.05 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 313.48 282.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.98 282.05 Td ($34.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.51 282.05 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.56 282.05 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.61 282.05 Td (, compared ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 271.25 Td (with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.05 271.25 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.07 271.25 Td (, due to the issuance of our 2026 Senior Notes and Senior Convertible Notes in the third quarter of 2016. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 260.45 Td (Cash paid for LOE and ad valorem taxes in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.59 260.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.62 260.45 Td ( decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.65 260.45 Td ($19.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.17 260.45 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.68 260.45 Td (nine percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.21 260.45 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.22 260.45 Td ($199.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 260.45 Td ( compared with 2016, as a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 249.65 Td (result of a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 78.02 249.65 Td (20 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 120.55 249.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 123.05 249.65 Td (decrease) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.08 249.65 Td ( in production volumes partially of) Tj ET Q q 0 0 0 rg BT 293.48 249.65 Td (fset by an increase in production costs on a per BOE basis, specifically ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 238.85 Td (LOE, production taxes, and ad valorem taxes. Cash paid for G&A) Tj ET Q q 0 0 0 rg BT 298.14 238.85 Td ( expense decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.70 238.85 Td ($13.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.23 238.85 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.73 238.85 Td (12 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.26 238.85 Td (, to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.27 238.85 Td ($98.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.80 238.85 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 228.05 Td (2017 compared with 2016, primarily as a result of the decrease in average headcount for 2017. During 2016, we paid $10.0 million to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 217.25 Td (terminate a second lien facility that was not needed to fund the Rock Oil ) Tj ET Q q 0 0 0 rg BT 323.67 217.25 Td (Acquisition. Further) Tj ET Q q 0 0 0 rg BT 403.20 217.25 Td (, net cash provided by operating activities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 206.45 Td (is af) Tj ET Q q 0 0 0 rg BT 52.34 206.45 Td (fected by working capital changes. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 183.65 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 183.65 Td (Investing ) Tj ET Q q 0 0 0 rg BT 110.19 183.65 Td (Activities) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 119.15 97.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 119.15 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.50 119.15 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 119.15 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 119.15 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 119.15 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 119.15 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 119.15 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.50 119.15 56.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 147.14999999999998 m 198.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 147.14999999999998 m 202.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 147.14999999999998 m 267.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 147.14999999999998 m 271.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 147.14999999999998 m 336.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 147.14999999999998 m 396.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 147.14999999999998 m 456.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 147.14999999999998 m 516.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 147.14999999999998 m 576.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 147.14999999999998 m 198.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 133.14999999999998 m 198.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 147.14999999999998 m 202.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 147.14999999999998 m 267.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 133.14999999999998 m 267.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 147.14999999999998 m 271.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 147.14999999999998 m 336.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 133.14999999999998 m 336.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 147.14999999999998 m 396.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 133.14999999999998 m 396.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 147.14999999999998 m 400.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 147.14999999999998 m 456.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 133.14999999999998 m 456.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 147.14999999999998 m 516.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 133.14999999999998 m 516.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 147.14999999999998 m 520.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 147.14999999999998 m 576.5 147.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 133.14999999999998 m 576.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 133.14999999999998 m 198.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 133.14999999999998 m 267.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 133.14999999999998 m 336.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 133.14999999999998 m 396.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 133.14999999999998 m 456.5 133.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 133.14999999999998 m 516.5 133.14999999999998 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.55 151.55 Td (For the ) Tj ET Q q 0 0 0 rg BT 193.47 151.55 Td (Y) Tj ET Q q 0 0 0 rg BT 199.14 151.55 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 151.55 Td (Amount Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 151.55 Td (Percent Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 155.45 137.55 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.45 137.55 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.45 137.55 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 346.70 137.55 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.70 137.55 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.70 137.55 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.70 137.55 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.25 123.55 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 100.55 Td (Net cash used in) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 91.55 Td (investing activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.00 91.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.45 91.55 Td (\(587.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.00 91.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.00 91.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 238.45 91.55 Td (\(201.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 91.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.00 91.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.95 91.55 Td (\(1,867.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 91.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 91.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.45 91.55 Td (\(386.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.00 91.55 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 91.55 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.95 91.55 Td (1,666.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.90 91.55 Td (192) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.95 91.55 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.95 91.55 Td (\(89) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 565.00 91.55 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 64.85 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 64.85 Td (Net cash used in investing activities increased for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.65 64.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.69 64.85 Td (, compared with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 54.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 54.05 Td (. Capital expenditures in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 157.58 54.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.60 54.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.10 54.05 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.12 54.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.63 54.05 Td ($414.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.16 54.05 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.66 54.05 Td (47 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.19 54.05 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.22 54.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.24 54.05 Td ( as a result of increased drilling and ) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (61) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (completion activities. During 2018, cash paid to acquire proved and unproved properties decreased ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.74 740.45 Td ($56.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.27 740.45 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.77 740.45 Td (63 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.30 740.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (compared with 2017. Further) Tj ET Q q 0 0 0 rg BT 153.06 729.65 Td (, net proceeds from the sale of oil and gas properties ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.68 729.65 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.71 729.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.21 729.65 Td ($28.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.74 729.65 Td ( for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.24 729.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.27 729.65 Td (, compared with the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.53 718.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 117.55 718.85 Td (. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.07 718.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.09 718.85 Td (, net proceeds were primarily from the PRB Divestiture, Divide County Divestiture, and Half) Tj ET Q q 0 0 0 rg BT 535.57 718.85 Td (f East ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (Divestiture. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.03 708.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 135.05 708.05 Td (, net proceeds were primarily from the sale of our outside-operated Eagle Ford shale assets.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 685.25 Td (Net cash used in investing activities decreased for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.65 685.25 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.70 685.25 Td (, compared with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 674.45 Td (. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 92.54 674.45 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.56 674.45 Td (, cash paid to acquire proved and unproved properties in the Midland Basin totaled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.77 674.45 Td ($89.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.30 674.45 Td ( compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 557.82 674.45 Td ($2.2 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.01 663.65 Td ( paid in 2016. Net proceeds from the sale of oil and gas properties ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.17 663.65 Td (decreased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.20 663.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.70 663.65 Td ($169.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.24 663.65 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.29 663.65 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 652.85 Td (, compared with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.59 652.85 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 218.61 652.85 Td (. During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.13 652.85 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.15 652.85 Td (, net proceeds were primarily from the sale of our outside-operated Eagle ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (Ford shale assets, and during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 157.07 642.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 177.09 642.05 Td (, net proceeds were primarily related to the divestitures of our Raven/Bear Den and certain other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 631.25 Td (non-core Permian and Rocky Mountain assets. Capital expenditures in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.15 631.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.17 631.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.67 631.25 Td (increased) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.70 631.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.20 631.25 Td ($258.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.73 631.25 Td (, or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.23 631.25 Td (41 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.76 631.25 Td (, compared with ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 620.45 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 620.45 Td ( as a result of increased drilling and completion activities and slightly higher service provider costs.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 597.65 Td (In 2017, we adjusted year ended December 31, 2016, amounts to conform to the current period presentation on the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 175.58 586.85 Td (As a result, we reclassified ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.63 586.85 Td ($3.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.15 586.85 Td ( of restricted cash out of investing activities and combined it ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (with cash and cash equivalents when reconciling the beginning and end of period balances on the accompanying statements of cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 565.25 Td (flows, resulting in a decrease in net cash used in investing activities in 2016. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 405.20 565.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 471.40 565.25 Td (Accounting Standards) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 559.46 565.25 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.96 565.25 Td (in) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 568.96 565.25 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 554.45 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 167.23 554.45 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 245.27 554.45 Td ( of Part II, Item 8 for additional discussion of adjustments made as a result of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 543.65 Td (adopting new accounting standards.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 520.85 Td (Financing ) Tj ET Q q 0 0 0 rg BT 113.19 520.85 Td (Activities) Tj ET Q BT /F4 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 468.35 97.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 468.35 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.50 468.35 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 468.35 65.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 468.35 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 468.35 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 468.35 56.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 468.35 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.50 468.35 56.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 496.35 m 198.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 496.35 m 202.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 496.35 m 267.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 496.35 m 271.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 496.35 m 336.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 496.35 m 396.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 496.35 m 456.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 496.35 m 516.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 496.35 m 576.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 496.35 m 198.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133.5 482.35 m 198.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 496.35 m 202.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 496.35 m 267.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202.5 482.35 m 267.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 496.35 m 271.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 496.35 m 336.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.5 482.35 m 336.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 496.35 m 396.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 482.35 m 396.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 496.35 m 400.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 496.35 m 456.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 482.35 m 456.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 496.35 m 516.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 482.35 m 516.5 482.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 496.35 m 520.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 496.35 m 576.5 496.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 482.35 m 576.5 482.35 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.55 500.75 Td (For the ) Tj ET Q q 0 0 0 rg BT 193.47 500.75 Td (Y) Tj ET Q q 0 0 0 rg BT 199.14 500.75 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 500.75 Td (Amount Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 500.75 Td (Percent Change Between) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 155.45 486.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.45 486.75 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.45 486.75 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 346.70 486.75 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.70 486.75 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.70 486.75 Td (2018/2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.70 486.75 Td (2017/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.25 472.75 Td (\(in millions\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 458.75 Td (Net cash provided by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 449.75 Td (\(used in\) financing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 440.75 Td (activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.00 440.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.45 440.75 Td (\(368.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.00 440.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.00 440.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.45 440.75 Td (\(12.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 440.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 274.00 440.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.95 440.75 Td (1,327.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 440.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.45 440.75 Td (\(356.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 393.00 440.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.00 440.75 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.95 440.75 Td (\(1,339.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 440.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.40 440.75 Td (2,898) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.95 440.75 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.95 440.75 Td (\(101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 565.00 440.75 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 414.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 414.05 Td (Net cash used in financing activities increased for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.15 414.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.20 414.05 Td (, compared with the same period in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.77 414.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 575.79 414.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 403.25 Td (primarily as a result of the redemption of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.07 403.25 Td ($344.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.61 403.25 Td ( principal outstanding of our 2021 Senior Notes. Cash flows related to financing ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 392.45 Td (activities during 2018 were also impacted by the repurchase of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.64 392.45 Td ($395.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.17 392.45 Td ( principal outstanding of our 2023 Senior Notes and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.81 392.45 Td ($85.0 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 381.65 Td (million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.51 381.65 Td ( principal outstanding of our 2022 Senior Notes. Premiums totaling ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.15 381.65 Td ($20.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.68 381.65 Td ( were also paid in connection with these ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 370.85 Td (redemptions and repurchases during 2018. Of) Tj ET Q q 0 0 0 rg BT 221.95 370.85 Td (fsetting these cash outflows, was cash provided by the issuance of our 2027 Senior ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 360.05 Td (Notes in 2018 for net proceeds of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.58 360.05 Td ($492.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.12 360.05 Td (. Dividend payments during the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.23 360.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.27 360.05 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.29 360.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.31 360.05 Td (, were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 349.25 Td ($1) Tj ET Q q 0 0 0 rg BT 45.34 349.25 Td (1.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.86 349.25 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.88 349.25 Td ($1) Tj ET Q q 0 0 0 rg BT 115.22 349.25 Td (1.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 155.74 349.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 207.59 349.25 Td (. W) Tj ET Q q 0 0 0 rg BT 223.42 349.25 Td (e had a zero balance on our credit facility as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.03 349.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.08 349.25 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.10 349.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.12 349.25 Td (, due to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 338.45 Td (our cash balance resulting from the proceeds received from the PRB Divestiture, Divide County Divestiture, and Half) Tj ET Q q 0 0 0 rg BT 498.55 338.45 Td (f East Divestiture ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 327.65 Td (in the first half of 2018, proceeds received from the sale of our outside-operated Eagle Ford shale assets during 2017, and proceeds ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 316.85 Td (received from the sale of our Raven/Bear Den assets in December 2016. Consequently) Tj ET Q q 0 0 0 rg BT 385.52 316.85 Td (, there was no credit facility activity during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 306.05 Td (2018, and credit facility borrowings and repayments netted to zero in 2017.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 283.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 283.25 Td (During ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.01 283.25 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.03 283.25 Td (, we received ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 176.56 283.25 Td ($934.1 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.09 283.25 Td ( of net proceeds from two public equity of) Tj ET Q q 0 0 0 rg BT 396.02 283.25 Td (ferings, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.03 283.25 Td ($491.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.57 283.25 Td ( of net proceeds from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 272.45 Td (our 2026 Senior Notes issuance, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 186.60 272.45 Td ($166.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.13 272.45 Td ( of net proceeds from our Senior Convertible Notes issuance. ) Tj ET Q q 0 0 0 rg BT 490.59 272.45 Td (These proceeds ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 261.65 Td (were used to partially fund the Rock Oil ) Tj ET Q q 0 0 0 rg BT 194.58 261.65 Td (Acquisition and QStar ) Tj ET Q q 0 0 0 rg BT 283.63 261.65 Td (Acquisition, as well as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.17 261.65 Td (repay) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.69 261.65 Td ( our credit facility balance of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.74 261.65 Td ($202.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 566.27 261.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 250.85 Td (during the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.07 250.85 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.11 250.85 Td (. ) Tj ET Q q 0 0 0 rg BT 212.12 250.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 257.48 250.85 Td (, in 2016, we paid ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.53 250.85 Td ($24.2 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.06 250.85 Td ( for capped call transactions related to our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 240.05 Td (Senior Convertible Notes and paid ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.58 240.05 Td ($29.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.11 240.05 Td ( for the repurchase of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.16 240.05 Td ($46.3 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.69 240.05 Td ( in aggregate principal amount of a portion of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 229.25 Td (senior notes. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 153.56 229.25 Td (Note 5 – Long-T) Tj ET Q q 0 0 0 rg BT 217.78 229.25 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 254.79 229.25 Td ( and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 274.80 229.25 Td (Note 13 – Equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.35 229.25 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 206.45 Td (Interest Rate Risk) Tj ET Q BT /F4 9.00 Tf ET BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 183.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 183.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 183.65 Td (e are exposed to market risk due to the floating interest rate associated with any outstanding balance on our revolving credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 172.85 Td (facility) Tj ET Q q 0 0 0 rg BT 60.34 172.85 Td (. ) Tj ET Q q 0 0 0 rg BT 67.34 172.85 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.35 172.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.40 172.85 Td (, we had a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 213.43 172.85 Td (zero) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 230.94 172.85 Td ( balance on our credit facility) Tj ET Q q 0 0 0 rg BT 344.33 172.85 Td (. Our Credit ) Tj ET Q q 0 0 0 rg BT 395.35 172.85 Td (Agreement allows us to fix the interest rate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 162.05 Td (for all or a portion of the principal balance of our revolving credit facility for a period up to six months.  ) Tj ET Q q 0 0 0 rg BT 440.54 162.05 Td (T) Tj ET Q q 0 0 0 rg BT 445.04 162.05 Td (o the extent that the interest rate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 151.25 Td (is fixed, interest rate changes will af) Tj ET Q q 0 0 0 rg BT 177.90 151.25 Td (fect the credit facility’) Tj ET Q q 0 0 0 rg BT 261.27 151.25 Td (s fair market value, but will not impact results of operations or cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 140.45 Td (flows.  Conversely) Tj ET Q q 0 0 0 rg BT 108.36 140.45 Td (, for the portion of the credit facility that has a floating interest rate, interest rate changes will not af) Tj ET Q q 0 0 0 rg BT 498.40 140.45 Td (fect the fair market ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 129.65 Td (value, but will impact future results of operations and cash flows.  Changes in interest rates do not impact the amount of interest we pay ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 118.85 Td (on our fixed-rate Senior Notes or fixed-rate Senior Convertible Notes, but can impact their fair market values. ) Tj ET Q q 0 0 0 rg BT 473.20 118.85 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.21 118.85 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 108.05 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 108.05 Td (, our outstanding principal amount of fixed-rate debt totaled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.67 108.05 Td ($2.6 billion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.70 108.05 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 405.23 108.05 Td (Note 1) Tj ET Q q 0 0 0 rg BT 431.08 108.05 Td (1 – Fair V) Tj ET Q q 0 0 0 rg BT 469.76 108.05 Td (alue Measurements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 548.80 108.05 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 97.25 Td (Part II, Item 8 of this report for additional discussion on the fair values of our Senior Notes and Senior Convertible Notes.) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (62) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Commodity Price Risk) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (The prices we receive for our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 259.75 717.65 Td ( production directly impact our revenue, overall profitability) Tj ET Q q 0 0 0 rg BT 491.19 717.65 Td (, access to capital, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (and future rate of growth.  Oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 212.76 706.85 Td ( prices are subject to wide fluctuations in response to changes in supply and demand and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (other factors.  ) Tj ET Q q 0 0 0 rg BT 93.36 696.05 Td (The markets for oil, gas, and NGLs have been volatile, especially over the last several years, and these markets will ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (likely continue to be volatile in the future.  ) Tj ET Q q 0 0 0 rg BT 202.94 685.25 Td (The prices we receive for our production depend on numerous factors beyond our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (control.  Based on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.55 674.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 146.58 674.45 Td ( production, a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.61 674.45 Td (10 percent) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 246.14 674.45 Td ( decrease in our average realized oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 451.43 674.45 Td ( prices before the ef) Tj ET Q q 0 0 0 rg BT 530.81 674.45 Td (fects of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (derivative settlements would have reduced our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 293.31 663.65 Td ( production revenues by approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.40 663.65 Td ($106.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.93 663.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.93 663.65 Td ($35.4 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 561.46 663.65 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 652.85 Td (and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.52 652.85 Td ($21.6 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 104.04 652.85 Td (, respectively) Tj ET Q q 0 0 0 rg BT 155.90 652.85 Td (. If commodity prices had been 10 percent lower) Tj ET Q q 0 0 0 rg BT 349.50 652.85 Td (, our net derivative settlements for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 642.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 642.05 Td ( would have of) Tj ET Q q 0 0 0 rg BT 172.92 642.05 Td (fset the declines in oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 319.17 642.05 Td ( production revenue by approximately $1) Tj ET Q q 0 0 0 rg BT 481.10 642.05 Td (17.8 million.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 619.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 619.25 Td (e enter into commodity derivative contracts in order to reduce the risk of fluctuations in commodity prices. ) Tj ET Q q 0 0 0 rg BT 503.35 619.25 Td (The fair value of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 608.45 Td (our commodity derivative contracts is largely determined by estimates of the forward curves of the relevant price indices. ) Tj ET Q q 0 0 0 rg BT 519.21 608.45 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 597.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.05 597.65 Td (, a 10 percent increase or decrease in the forward curves associated with our oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 493.91 597.65 Td ( commodity ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 586.85 Td (derivative instruments would have changed our net liability positions by approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.68 586.85 Td ($71.8 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 430.21 586.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.21 586.85 Td ($23.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.74 586.85 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.26 586.85 Td ($12.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.79 586.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 576.05 Td (respectively) Tj ET Q q 0 0 0 rg BT 82.85 576.05 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (Schedule of Contractual Obligations) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 530.45 Td (The following table summarizes our contractual obligations at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.12 530.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.17 530.45 Td (, for the periods specified \(in millions\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 496.95 190.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 496.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 496.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 496.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 496.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 496.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 496.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 496.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 496.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 496.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 496.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 468.95 190.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 468.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 468.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 468.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 468.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 468.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 468.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 468.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 468.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 468.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 468.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 440.95 190.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 440.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 440.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 440.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 440.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 440.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 440.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 440.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 440.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 440.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 440.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 412.95 190.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 412.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 412.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 412.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 412.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 412.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 412.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 412.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 412.95 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 412.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 412.95 66.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 36.5 496.95 m 226.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 496.95 m 296.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 496.95 m 366.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 496.95 m 436.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 496.95 m 506.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 496.95 m 576.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 496.95 m 366.5 496.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 398.95 m 366.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 398.95 m 296.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 385.95 m 296.5 385.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 383.95 m 296.5 383.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 398.95 m 366.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 385.95 m 366.5 385.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 383.95 m 366.5 383.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 398.95 m 436.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 385.95 m 436.5 385.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 383.95 m 436.5 383.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 398.95 m 506.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 385.95 m 506.5 385.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 383.95 m 506.5 383.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 398.95 m 576.5 398.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 385.95 m 576.5 385.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 383.95 m 576.5 383.95 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 39.00 501.35 Td (Contractual Obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.55 501.35 Td (T) Tj ET Q q 0 0 0 rg BT 257.71 501.35 Td (otal) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 308.20 510.35 Td (Less than 1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.70 501.35 Td (year) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.45 501.35 Td (1-3 years) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 501.35 Td (3-5 years) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.70 510.35 Td (More than 5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 501.35 Td (years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 487.35 Td (Long-term debt ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 102.54 491.64 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 487.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 262.95 487.35 Td (2,649.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.00 487.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 354.00 487.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 487.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 487.35 Td (172.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.00 487.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.45 487.35 Td (476.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.00 487.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.95 487.35 Td (2,000.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 473.35 Td (Interest payments ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 113.03 477.64 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.45 473.35 Td (970.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 473.35 Td (155.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 473.35 Td (309.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.45 473.35 Td (272.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.45 473.35 Td (233.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 459.35 Td (Delivery commitments ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 130.02 463.64 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.45 459.35 Td (287.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.45 459.35 Td (40.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 459.35 Td (150.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.45 459.35 Td (88.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 560.45 459.35 Td (8.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 445.35 Td (Operating leases and contracts ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 166.07 449.64 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.45 445.35 Td (169.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.45 445.35 Td (92.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 445.35 Td (41.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.45 445.35 Td (19.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.45 445.35 Td (16.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 431.35 Td (Asset retirement obligations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 152.55 435.64 Td (\(4\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.45 431.35 Td (1) Tj ET Q q 0 0 0 rg BT 275.46 431.35 Td (16.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.45 431.35 Td (2.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 431.35 Td (36.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.45 431.35 Td (1.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.45 431.35 Td (76.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 417.35 Td (Derivative liabilities) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 115.53 421.64 Td ( \(5\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.45 417.35 Td (75.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.45 417.35 Td (63.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 417.35 Td (12.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.00 417.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.00 417.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 403.35 Td (Other ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 64.01 407.64 Td (\(6\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.45 403.35 Td (36.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.45 403.35 Td (4.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.45 403.35 Td (17.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.45 403.35 Td (14.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 564.00 403.35 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 389.35 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 389.35 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 233.00 389.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 262.95 389.35 Td (4,306.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.00 389.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.45 389.35 Td (357.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 373.00 389.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.45 389.35 Td (741.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.00 389.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.45 389.35 Td (872.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.00 389.35 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.95 389.35 Td (2,334.6) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 378.25 Td (____________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 370.74 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 366.45 Td (Long-term debt consists of our Senior Notes and Senior Convertible Notes and assumes no principal repayment until the due dates ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 355.65 Td (of the instruments. ) Tj ET Q q 0 0 0 rg BT 132.87 355.65 Td (The actual payment dates may vary significantly) Tj ET Q q 0 0 0 rg BT 323.79 355.65 Td (. ) Tj ET Q q 0 0 0 rg BT 330.80 355.65 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.81 355.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.86 355.65 Td (, we had a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.89 355.65 Td (zero) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.39 355.65 Td ( balance on our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 344.85 Td (revolving credit facility) Tj ET Q q 0 0 0 rg BT 141.36 344.85 Td (.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 338.34 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 334.05 Td (Interest payments on our Senior Notes and Senior Convertible Notes are estimated assuming no principal repayment until the due ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 323.25 Td (dates of the instruments. ) Tj ET Q q 0 0 0 rg BT 157.06 323.25 Td (As our credit facility balance was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.11 323.25 Td (zero) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.62 323.25 Td ( at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.13 323.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.18 323.25 Td (, the above table includes only the fee that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 312.45 Td (would be paid on the unused credit facility’) Tj ET Q q 0 0 0 rg BT 222.94 312.45 Td (s aggregate lender commitment amount through the maturity date of the Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 301.65 Td (Agreement.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 295.14 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 290.85 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 115.03 290.85 Td (Note 6 – Commitments and Contingencies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.12 290.85 Td ( in Part II, Item 8 of this report for additional discussion regarding our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 280.05 Td (operating leases, contracts and gathering, processing, transportation throughput, and delivery commitments. ) Tj ET Q q 0 0 0 rg BT 490.08 280.05 Td (The amount relating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 269.25 Td (to our gathering, processing, transportation throughput, and delivery commitments reflects the aggregate undiscounted deficiency ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 258.45 Td (payments assuming we delivered no product. ) Tj ET Q q 0 0 0 rg BT 239.44 258.45 Td (This amount does not include any costs that may be incurred for certain contracts ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 247.65 Td (where we cannot predict with accuracy the amount and timing of any payments that may be incurred for not meeting certain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 236.85 Td (minimum commitments, as such payments are dependent upon the price of oil in ef) Tj ET Q q 0 0 0 rg BT 385.00 236.85 Td (fect at the time of settlement.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 230.34 Td (\(4\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 226.05 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 226.05 Td (Amounts shown represent estimated future undiscounted plugging and abandonment costs. ) Tj ET Q q 0 0 0 rg BT 424.07 226.05 Td (The discounted obligations are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 215.25 Td (recorded as liabilities on our accompanying consolidated balance sheets \(“accompanying balance sheets”\) as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.76 215.25 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 204.45 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.02 204.45 Td (. ) Tj ET Q q 0 0 0 rg BT 81.36 204.45 Td (The timing and amount of the ultimate settlement of these obligations is unknown and can be impacted by economic factors, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 193.65 Td (a change in development plans, and federal and state regulations. Obligations related to inactive wells or wells that are not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 182.85 Td (economic at current commodity price levels as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.08 182.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.13 182.85 Td (, are shown as an obligation in 1-3 years, however) Tj ET Q q 0 0 0 rg BT 530.24 182.85 Td (, there is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 172.05 Td (substantial uncertainty on the timing of plugging or re-entering these wells. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 416.20 172.05 Td (Note 14 – ) Tj ET Q q 0 0 0 rg BT 457.40 172.05 Td (Asset Retirement Obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 573.95 172.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 161.25 Td (in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 154.74 Td (\(5\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 43.15 150.45 Td ( ) Tj ET Q q 0 0 0 rg BT 54.00 150.45 Td (Amounts shown represent only the liability portion of the marked-to-market value of our commodity derivatives based on future ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 139.65 Td (market prices as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 132.53 139.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.57 139.65 Td (, and exclude estimated oil, gas, and NGL) Tj ET Q q 0 0 0 rg BT 378.34 139.65 Td ( commodity derivative receipts. ) Tj ET Q q 0 0 0 rg BT 506.72 139.65 Td (This amount ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 128.85 Td (varies from the liability amounts presented on the accompanying balance sheets, as those amounts are presented at fair value, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 118.05 Td (which considers time value, volatility) Tj ET Q q 0 0 0 rg BT 197.89 118.05 Td (, and the risk of non-performance for us and for our counterparties. ) Tj ET Q q 0 0 0 rg BT 468.37 118.05 Td (The ultimate settlement ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 107.25 Td (amounts under our derivative contracts are unknown, as they are subject to continuing market risk and commodity price volatility) Tj ET Q q 0 0 0 rg BT 563.58 107.25 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 96.45 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 115.03 96.45 Td (Note 10 – Derivative Financial Instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.61 96.45 Td ( in Part II, Item 8 of this report for additional discussion.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 89.94 Td (\(6\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 85.65 Td (The majority of this amount is related to the unfunded portion of our estimated pension liability of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.72 85.65 Td ($36.0 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.25 85.65 Td (, for which we have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 74.85 Td (estimated the timing of future payments based on historical annual contribution amounts.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (63) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (In December 2018, we entered into an agreement that included minimum drilling and completion requirements for certain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (existing leases. Based on our expectation that we will meet these minimum requirements, this agreement is not reflected in the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (Schedule of Contractual Obligations table above. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 297.16 718.85 Td (Note 6 – Commitments and Contingencies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.24 718.85 Td ( in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (report for additional discussion on this agreement.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 111.71 685.25 Td (Arrangements) Tj ET Q BT /F4 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 662.45 Td (As part of our ongoing business, we have not participated in transactions that generate relationships with unconsolidated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities \(“SPEs”\), which ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (would have been established for the purpose of facilitating of) Tj ET Q q 0 0 0 rg BT 277.50 640.85 Td (f-balance sheet arrangements or other contractually narrow or limited ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (purposes.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 607.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 607.25 Td (e evaluate our transactions to determine if any variable interest entities exist. If we determine that we are the primary ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (beneficiary of a variable interest entity) Tj ET Q q 0 0 0 rg BT 186.41 596.45 Td (, that entity is consolidated into our consolidated financial statements. W) Tj ET Q q 0 0 0 rg BT 475.91 596.45 Td (e have not been involved ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (in any unconsolidated SPE transactions during ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.62 585.65 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.64 585.65 Td ( or ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.64 585.65 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.66 585.65 Td (, or through the filing of this report.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 562.85 Td (Critical ) Tj ET Q q 0 0 0 rg BT 68.68 562.85 Td (Accounting Policies and Estimates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 218.21 562.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 540.05 Td (Our discussion of financial condition and results of operations is based upon the information reported in our consolidated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 529.25 Td (financial statements. ) Tj ET Q q 0 0 0 rg BT 122.88 529.25 Td (The preparation of these consolidated financial statements in conformity with accounting principles generally ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 518.45 Td (accepted in the United States \(“GAAP”\) requires us to make assumptions and estimates that af) Tj ET Q q 0 0 0 rg BT 413.52 518.45 Td (fect the reported amounts of assets, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 507.65 Td (liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities as of the date of our consolidated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 496.85 Td (financial statements. W) Tj ET Q q 0 0 0 rg BT 131.37 496.85 Td (e base our assumptions and estimates on historical experience and various other sources that we believe to be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 486.05 Td (reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 188.09 486.05 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 273.45 486.05 Td (fer from the estimates we calculate due to changes in circumstances, global ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 475.25 Td (economics and politics, and general business conditions. ) Tj ET Q q 0 0 0 rg BT 267.14 475.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.65 475.25 Td ( summary of our significant accounting policies is detailed in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 513.76 475.25 Td (Note 1 – ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 464.45 Td (Summary of Significant ) Tj ET Q q 0 0 0 rg BT 130.70 464.45 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 208.74 464.45 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.25 464.45 Td (in Part II, Item 8 of this report. W) Tj ET Q q 0 0 0 rg BT 343.13 464.45 Td (e have outlined below) Tj ET Q q 0 0 0 rg BT 429.69 464.45 Td (, those policies identified as being ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 453.65 Td (critical to the understanding of our business and results of operations and that require the application of significant management ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 442.85 Td (judgment.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 420.05 Td (Successful Efforts Method of ) Tj ET Q q 0 0 0 rg BT 188.72 420.05 Td (Accounting) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 233.25 420.05 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.75 420.05 Td (GAAP) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 265.76 420.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.26 420.05 Td (provides for two alternative methods for the oil and gas industry to use in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 409.25 Td (accounting for oil and gas producing activities. ) Tj ET Q q 0 0 0 rg BT 224.95 409.25 Td (These two methods are generally known in our industry as the full cost method and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 398.45 Td (successful ef) Tj ET Q q 0 0 0 rg BT 87.86 398.45 Td (forts method. Both methods are widely used. ) Tj ET Q q 0 0 0 rg BT 273.29 398.45 Td (The methods are dif) Tj ET Q q 0 0 0 rg BT 353.17 398.45 Td (ferent enough that in many circumstances the same set ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 387.65 Td (of facts will provide materially dif) Tj ET Q q 0 0 0 rg BT 164.88 387.65 Td (ferent financial statement results within a given year) Tj ET Q q 0 0 0 rg BT 370.99 387.65 Td (. W) Tj ET Q q 0 0 0 rg BT 386.82 387.65 Td (e have chosen the successful ef) Tj ET Q q 0 0 0 rg BT 514.74 387.65 Td (forts method of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 376.85 Td (accounting for our oil and gas producing activities. ) Tj ET Q q 0 0 0 rg BT 240.12 376.85 Td (A) Tj ET Q q 0 0 0 rg BT 245.63 376.85 Td ( more detailed description is included in) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 403.22 376.85 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 405.72 376.85 Td (Note 1 – Summary of Significant ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 366.05 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 114.04 366.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 116.54 366.05 Td (of Part II, Item 8 of this report.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 343.25 Td (Oil and Gas Reserve Quantities) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 198.56 343.25 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.06 343.25 Td (Our estimated proved reserve quantities and future net cash flows are critical to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 332.45 Td (understanding the value of our business. ) Tj ET Q q 0 0 0 rg BT 202.95 332.45 Td (They are used in comparative financial ratios and are the basis for significant accounting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 321.65 Td (estimates in our consolidated financial statements, including the calculations of depletion and impairment of proved and unproved oil ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 310.85 Td (and gas properties. Please refer to the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 194.09 310.85 Td (Oil and Gas Producing ) Tj ET Q q 0 0 0 rg BT 286.81 310.85 Td (Activities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.82 310.85 Td (section of) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 363.34 310.85 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 365.84 310.85 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 497.07 310.85 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 575.11 310.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 300.05 Td (of Part II, Item 8 of this report for additional discussion on our accounting policies impacted by estimated reserve quantities.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 277.25 Td (Future cash inflows and future production and development costs are determined by applying prices and costs, including ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 266.45 Td (transportation, quality dif) Tj ET Q q 0 0 0 rg BT 133.89 266.45 Td (ferentials, and basis dif) Tj ET Q q 0 0 0 rg BT 225.78 266.45 Td (ferentials, applicable to each period to the estimated quantities of proved reserves ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 255.65 Td (remaining to be produced as of the end of that period. Expected cash flows are discounted to present value using an appropriate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 244.85 Td (discount rate. For example, the standardized measure of discounted future net cash flows calculation requires that a 10 percent ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 234.05 Td (discount rate be applied. ) Tj ET Q q 0 0 0 rg BT 138.57 234.05 Td (Although reserve estimates are inherently imprecise, and estimates of new discoveries and undeveloped ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 223.25 Td (locations are more imprecise than those of established producing oil and gas properties, we make a considerable ef) Tj ET Q q 0 0 0 rg BT 496.10 223.25 Td (fort in estimating ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 212.45 Td (our reserves. W) Tj ET Q q 0 0 0 rg BT 101.85 212.45 Td (e engage Ryder Scott, an independent reservoir evaluation consulting firm, to audit at least 80 percent of our total ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 201.65 Td (calculated proved reserve PV) Tj ET Q q 0 0 0 rg BT 153.07 201.65 Td (-10. W) Tj ET Q q 0 0 0 rg BT 181.91 201.65 Td (e expect proved reserve estimates will change as additional information becomes available and as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 190.85 Td (commodity prices and operating and capital costs change. W) Tj ET Q q 0 0 0 rg BT 280.96 190.85 Td (e evaluate and estimate our proved reserves each year end. It should not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 180.05 Td (be assumed that the standardized measure of discounted future net cash flows \(GAAP\) or PV) Tj ET Q q 0 0 0 rg BT 408.20 180.05 Td (-10 \(non-GAAP\) as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.24 180.05 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 169.25 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 169.25 Td (, is the current market value of our estimated proved reserves. In accordance with SEC requirements, we based these measures ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 158.45 Td (on a 12-month average of the first-day-of-the-month prices for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.17 158.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.22 158.45 Td (. ) Tj ET Q q 0 0 0 rg BT 433.22 158.45 Td (Actual future prices and costs may ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 147.65 Td (be materially higher or lower than the prices and costs utilized in the estimates. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 416.19 147.65 Td (Risk Factors) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 466.19 147.65 Td ( in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 535.22 147.65 Td ( of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 136.85 Td (report.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 114.05 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 114.05 Td (If the estimates of proved reserves decline, the rate at which we record depletion expense will increase, which would reduce ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 103.25 Td (future net income. Changes in depletion rate calculations caused by changes in reserve quantities are made prospectively) Tj ET Q q 0 0 0 rg BT 523.12 103.25 Td (. In addition, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 92.45 Td (a decline in reserve estimates may impact the outcome of our assessment of proved and unproved properties for impairment. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 81.65 Td (Impairments are recorded in the period in which they are identified.) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (64) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (The following table presents information about proved reserve changes from period to period due to items we do not control, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (such as price, and from changes due to production history and well performance. ) Tj ET Q q 0 0 0 rg BT 363.01 729.65 Td (These changes do not require a capital expenditure ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (on our part, but may have resulted from capital expenditures we incurred to develop other estimated proved reserves.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 652.35 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 652.35 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 652.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 652.35 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 652.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 652.35 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 615.35 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 615.35 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 615.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 615.35 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 615.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 615.35 85.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 694.35 m 346.5 694.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 694.35 m 350.5 694.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 694.35 m 435.5 694.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 694.35 m 439.5 694.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 694.35 m 524.5 694.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 680.35 m 346.5 680.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 680.35 m 435.5 680.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 680.35 m 524.5 680.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 652.35 m 346.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 652.35 m 435.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 652.35 m 524.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 652.35 m 346.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 652.35 m 435.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 652.35 m 524.5 652.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 601.35 m 346.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 601.35 m 435.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 601.35 m 524.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 601.35 m 346.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 588.35 m 346.5 588.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 586.35 m 346.5 586.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 601.35 m 435.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 588.35 m 435.5 588.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 586.35 m 435.5 586.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 601.35 m 524.5 601.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 588.35 m 524.5 588.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 586.35 m 524.5 586.35 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 318.55 698.75 Td (For the ) Tj ET Q q 0 0 0 rg BT 351.47 698.75 Td (Y) Tj ET Q q 0 0 0 rg BT 357.14 698.75 Td (ears Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.45 684.75 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 684.75 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 684.75 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 286.25 670.75 Td (MMBOE) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.25 670.75 Td (MMBOE) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.25 670.75 Td (MMBOE) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 286.95 656.75 Td (Change) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.95 656.75 Td (Change) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.95 656.75 Td (Change) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 642.75 Td (Revisions resulting from performance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.45 642.75 Td (\(59.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 642.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.45 642.75 Td (7.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.45 642.75 Td (\(18.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.00 642.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 628.75 Td (Removal of proved undeveloped reserves no longer in) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 619.75 Td (our five-year development plan) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.45 619.75 Td (\(22.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 619.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.45 619.75 Td (\(13.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 619.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.45 619.75 Td (\(43.0) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.00 619.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 605.75 Td (Revisions resulting from price changes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 325.45 605.75 Td (13.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.45 605.75 Td (23.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.45 605.75 Td (\(35.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.00 605.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 591.75 Td (T) Tj ET Q q 0 0 0 rg BT 43.50 591.75 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.45 591.75 Td (\(68.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.00 591.75 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 414.45 591.75 Td (16.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.45 591.75 Td (\(96.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 521.00 591.75 Td (\)) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 565.05 Td (As previously noted, commodity prices are volatile and estimates of reserves are inherently imprecise. Consequently) Tj ET Q q 0 0 0 rg BT 537.05 565.05 Td (, we ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 554.25 Td (expect to continue experiencing these types of changes.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 531.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 531.45 Td (e cannot reasonably predict future commodity prices, although we believe that together) Tj ET Q q 0 0 0 rg BT 426.04 531.45 Td (, the below analyses provide ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.65 Td (reasonable information regarding the impact of changes in pricing and trends on total estimated proved reserves. ) Tj ET Q q 0 0 0 rg BT 490.10 520.65 Td (The following table ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 509.85 Td (reflects the estimated MMBOE change and percentage change to our total reported estimated proved reserve volumes from the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.05 Td (described hypothetical changes:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 446.55 229.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 446.55 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 446.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 446.55 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 416.55 229.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 416.55 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 416.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 416.55 85.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 474.55 m 350.5 474.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 474.55 m 354.5 474.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 474.55 m 439.5 474.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 446.55 m 350.5 446.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 446.55 m 439.5 446.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 446.55 m 350.5 446.55 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 446.55 m 439.5 446.55 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.95 478.95 Td (For the year ended December 31, 2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 290.25 464.95 Td (MMBOE) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.20 464.95 Td (Percentage) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 290.95 450.95 Td (Change) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.95 450.95 Td (Change) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 435.95 Td (10 percent decrease in SEC pricing ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 183.08 440.24 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.45 435.95 Td (\(4.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.00 435.95 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.95 435.95 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 435.95 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 420.95 Td (A) Tj ET Q q 0 0 0 rg BT 44.84 420.95 Td (verage NYMEX strip pricing as of fiscal year end ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 240.42 425.24 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.45 420.95 Td (\(12.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.00 420.95 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.95 420.95 Td (\(2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 420.95 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 39.00 406.95 Td (10 percent decrease in proved undeveloped reserves ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 254.14 411.24 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.45 406.95 Td (\(25.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.00 406.95 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 419.95 406.95 Td (\(5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 406.95 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 36.00 395.85 Td (___________________________________________) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 388.34 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 384.05 Td (The change solely reflects the impact of a 10 percent decrease in SEC pricing to the total reported estimated proved reserve ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 373.25 Td (volumes as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.03 373.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 191.07 373.25 Td (, and does not include additional impacts to our estimated proved reserves that may result from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 362.45 Td (our internal intent to drill hurdles or changes in future service or equipment costs.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 355.94 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 351.65 Td (The change solely reflects the impact of replacing SEC pricing with the five-year average NYMEX strip pricing as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.71 351.65 Td (December 31, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 340.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.02 340.85 Td (. SEC pricing of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 141.55 340.85 Td ($65.56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.08 340.85 Td ( per Bbl for oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.60 340.85 Td ($3.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.12 340.85 Td ( per MMBtu for gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.17 340.85 Td ($33.45) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.69 340.85 Td ( per Bbl for NGLs as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.73 340.85 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.78 340.85 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 330.05 Td (compared to the five-year average NYMEX strip pricing of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.60 330.05 Td ($50.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.13 330.05 Td ( per Bbl for oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.66 330.05 Td ($2.70) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.18 330.05 Td ( per MMBtu for gas, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.22 330.05 Td ($23.67) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.75 330.05 Td ( per Bbl for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 319.25 Td (NGLs as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 101.52 319.25 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.57 319.25 Td (, would result in a two percent decrease to our total reported estimated proved reserve volumes.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 36.00 312.74 Td (\(3\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 308.45 Td (The change solely reflects a 10 percent decrease in proved undeveloped reserves as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.71 308.45 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.76 308.45 Td (, and does not include ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 54.00 297.65 Td (any additional impacts to our estimated proved reserves.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 274.85 Td (Additional reserve information can be found in the ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 272.62 274.85 Td (Reserves) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.64 274.85 Td ( section in Part I, Items 1 and 2 of this report, and in ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 519.24 274.85 Td (Supplemental ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 264.05 Td (Oil and Gas Information) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 131.04 264.05 Td ( in Part II, Item 8 of this report.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 241.25 Td (Impairment of Oil and Gas Properties) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 220.56 241.25 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.06 241.25 Td (Proved properties are evaluated periodically for impairment on a pool-by-pool basis ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 230.45 Td (and when events or changes in circumstances indicate that a decline in the recoverability of their carrying value may have occurred. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 219.65 Td (W) Tj ET Q q 0 0 0 rg BT 44.33 219.65 Td (e estimate the expected future cash flows of our oil and gas properties and compare these undiscounted cash flows to the carrying ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 208.85 Td (amount to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 198.05 Td (flows, we will write down the carrying amount of the oil and gas properties to fair value \(or discounted future cash flows\). Management ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 187.25 Td (estimates future cash flows from all proved reserves and risk adjusted probable and possible reserves using various factors, which are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 176.45 Td (subject to our judgment and expertise, and include, but are not limited to, commodity price forecasts, estimated future operating and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 165.65 Td (capital costs, development plans, and discount rates to incorporate the risk and current market conditions associated with realizing the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 154.85 Td (expected cash flows.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 132.05 Td (Unproved oil and gas properties are evaluated for impairment and reduced to fair value when there is an indication that the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 121.25 Td (carrying costs may not be recoverable. Lease acquisition costs that are not individually significant are aggregated by prospect and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 110.45 Td (portion of such costs estimated to be nonproductive prior to lease expiration are amortized over the appropriate period. ) Tj ET Q q 0 0 0 rg BT 513.11 110.45 Td (The estimate of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 99.65 Td (what could be nonproductive is based on historical trends or other information, including current drilling plans and our intent to renew ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 88.85 Td (leases. W) Tj ET Q q 0 0 0 rg BT 77.85 88.85 Td (e estimate the fair value of unproved properties, using a market approach, which takes into account the following significant ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 78.05 Td (assumptions: remaining lease terms, future development plans, risk weighted potential resource recovery) Tj ET Q q 0 0 0 rg BT 454.04 78.05 Td (, estimated reserve values, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 67.25 Td (and estimated acreage value based on price\(s\) received for similar) Tj ET Q q 0 0 0 rg BT 301.14 67.25 Td (, recent acreage transactions by us or other market participants.) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 740.45 Td (Proved and unproved oil and gas properties are classified as held for sale when we commit to a plan to sell the assets and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 729.65 Td (there is reasonable certainty the sale will take place within ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.62 729.65 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.64 729.65 Td ( year) Tj ET Q q 0 0 0 rg BT 304.15 729.65 Td (. Upon classification as held for sale, long-lived assets are no ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 718.85 Td (longer depreciated or depleted, and a measurement for impairment is performed to identify and expense any excess of carrying value ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 708.05 Td (over fair value less costs to sell.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 685.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 685.25 Td (e cannot predict when or if future impairment charges will be recorded because of the uncertainty in the factors discussed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 674.45 Td (above. Despite any amount of future impairment being dif) Tj ET Q q 0 0 0 rg BT 266.97 674.45 Td (ficult to predict, based on our commodity price assumptions as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.09 674.45 Td (February 7, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 663.65 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 56.02 663.65 Td (, we do not expect any material property impairments in the first quarter of 2019 resulting from commodity price impacts.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 640.85 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 640.85 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 264.26 640.85 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 342.30 640.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.80 640.85 Td (and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 362.32 640.85 Td (Note 1) Tj ET Q q 0 0 0 rg BT 388.16 640.85 Td (1 – Fair V) Tj ET Q q 0 0 0 rg BT 426.85 640.85 Td (alue Measurements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 505.89 640.85 Td ( in Part II, Item 8 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (of this report for discussion of impairments of oil and gas properties recorded for the years ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.20 630.05 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.25 630.05 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.25 630.05 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.27 630.05 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.79 630.05 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 570.81 630.05 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 607.25 Td (Purchase Price ) Tj ET Q q 0 0 0 rg BT 135.19 607.25 Td (Allocation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.22 607.25 Td (. ) Tj ET Q q 0 0 0 rg BT 181.22 607.25 Td (Accounting for the acquisition of a business requires the allocation of the purchase price to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 596.45 Td (various assets and liabilities acquired based on their estimated fair value as of the acquisition date. V) Tj ET Q q 0 0 0 rg BT 439.56 596.45 Td (arious assumptions are made ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (when estimating fair values assigned to proved and unproved oil and gas properties including: \(i\) reserves; \(ii\) production rates; \(iii\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (future operating and development costs; \(iv\) future commodity prices, including price dif) Tj ET Q q 0 0 0 rg BT 384.01 574.85 Td (ferentials; \(v\) future cash flows; and \(vi\) a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (market participant-based weighted average cost of capital rate. ) Tj ET Q q 0 0 0 rg BT 291.48 564.05 Td (These inputs require significant judgment by management at the time ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (of the valuation.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 530.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 530.45 Td (Asset Retirement Obligations) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 188.55 530.45 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.05 530.45 Td (W) Tj ET Q q 0 0 0 rg BT 204.39 530.45 Td (e are required to recognize an estimated liability for future costs associated with the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 519.65 Td (abandonment of our oil and gas properties. W) Tj ET Q q 0 0 0 rg BT 220.95 519.65 Td (e base our estimate of the liability on our historical experience in abandoning oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 508.85 Td (wells and our current understanding of federal and state regulatory requirements. Our present value calculations require us to estimate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 498.05 Td (the cost, the economic lives and timing of abandonment of our properties, future inflation rates, and the appropriate credit-adjusted risk-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 487.25 Td (free discount rate to use. ) Tj ET Q q 0 0 0 rg BT 139.90 487.25 Td (The impact to the accompanying consolidated statements of operations \(“accompanying statements of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 476.45 Td (operations”\) from these estimates is reflected in our depletion, depreciation, and amortization calculations and occurs over the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 465.65 Td (remaining life of our respective oil and gas properties. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 315.65 465.65 Td (Note 14 – ) Tj ET Q q 0 0 0 rg BT 356.84 465.65 Td (Asset Retirement Obligations) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 473.39 465.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.89 465.65 Td (in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 454.85 Td (report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 432.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 432.05 Td (Revenue Recognition) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 158.06 432.05 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 165.56 432.05 Td (Ef) Tj ET Q q 0 0 0 rg BT 173.90 432.05 Td (fective January 1, 2018, our revenue recognition policy was updated to reflect the adoption of new ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 421.25 Td (accounting guidance. Our revenue recognition policy is a critical accounting policy because revenue is a key component of our results ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 410.45 Td (of operations and our forward-looking statements contained in our analysis of liquidity and capital resources. Our primary source of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 399.65 Td (revenue is derived by the sale of produced oil, gas, and NGLs. Revenue is recognized at the point in time when control of the product, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 388.85 Td (as defined by contractual terms, transfers to the purchaser) Tj ET Q q 0 0 0 rg BT 268.12 388.85 Td (. Payment for these sales is typically received between 30 and 90 days after ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 378.05 Td (the date of production. ) Tj ET Q q 0 0 0 rg BT 130.07 378.05 Td (At the end of each month, we make estimates of the amount of production delivered to the purchaser and the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 367.25 Td (price we will receive. W) Tj ET Q q 0 0 0 rg BT 131.86 367.25 Td (e use our knowledge of our properties, contractual arrangements, historical performance, NYMEX, local spot ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 356.45 Td (market, OPIS prices, and other factors as the basis for these estimates. V) Tj ET Q q 0 0 0 rg BT 330.96 356.45 Td (ariances between our estimates and the actual amounts ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 345.65 Td (received are recorded in the month payment is received. ) Tj ET Q q 0 0 0 rg BT 265.12 345.65 Td (A) Tj ET Q q 0 0 0 rg BT 270.63 345.65 Td ( 10 percent change in our revenue accrual at year end would have impacted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 334.85 Td (total operating revenues by approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.60 334.85 Td ($10.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.13 334.85 Td ( in ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 268.13 334.85 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 288.15 334.85 Td (. Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 356.69 334.85 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 487.91 334.85 Td (Accounting Policies) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 565.95 334.85 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 324.05 Td (under the heading ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 111.06 324.05 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 177.26 324.05 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.32 324.05 Td ( and ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 285.34 324.05 Td (Note 2 - Revenue from Contracts with Customers) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 481.91 324.05 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.41 324.05 Td (in Part II, Item 8 of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 313.25 Td (report for additional discussion.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 290.45 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 290.45 Td (Derivative Financial Instruments) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 200.05 290.45 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.55 290.45 Td ( W) Tj ET Q q 0 0 0 rg BT 215.88 290.45 Td (e periodically enter into commodity derivative contracts to manage our exposure to oil, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 279.65 Td (gas, and NGL) Tj ET Q q 0 0 0 rg BT 91.20 279.65 Td ( price volatility and location dif) Tj ET Q q 0 0 0 rg BT 210.60 279.65 Td (ferentials. W) Tj ET Q q 0 0 0 rg BT 262.95 279.65 Td (e recognize all gains and losses from changes in commodity derivative fair ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 268.85 Td (values immediately in earnings rather than deferring any such amounts in accumulated other comprehensive income \(loss\). ) Tj ET Q q 0 0 0 rg BT 531.58 268.85 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 258.05 Td (estimated fair value of our derivative instruments requires substantial judgment. ) Tj ET Q q 0 0 0 rg BT 356.99 258.05 Td (These values are based upon, among other things, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 247.25 Td (option pricing models, futures prices, volatility) Tj ET Q q 0 0 0 rg BT 216.41 247.25 Td (, time to maturity) Tj ET Q q 0 0 0 rg BT 282.26 247.25 Td (, and credit risk. ) Tj ET Q q 0 0 0 rg BT 350.62 247.25 Td (The values we report in our consolidated financial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 236.45 Td (statements change as these estimates are revised to reflect actual results, changes in market conditions or other factors, many of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 225.65 Td (which are beyond our control.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 202.85 Td (Income T) Tj ET Q q 0 0 0 rg BT 108.69 202.85 Td (axes) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 127.70 202.85 Td (. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 135.20 202.85 Td (W) Tj ET Q q 0 0 0 rg BT 143.53 202.85 Td (e provide for deferred income taxes on the dif) Tj ET Q q 0 0 0 rg BT 324.47 202.85 Td (ference between the tax basis of an asset or liability and its ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 192.05 Td (carrying amount in our consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 267.96 192.05 Td (This dif) Tj ET Q q 0 0 0 rg BT 296.81 192.05 Td (ference will result in taxable income or deductions in future years ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 181.25 Td (when the reported amount of the asset or liability is recovered or settled, respectively) Tj ET Q q 0 0 0 rg BT 373.00 181.25 Td (. Considerable judgment is required in predicting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 170.45 Td (when these events may occur and whether recovery of an asset is more likely than not. ) Tj ET Q q 0 0 0 rg BT 387.18 170.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 432.54 170.45 Td (, our federal and state income tax ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 159.65 Td (returns are generally not filed before the consolidated financial statements are prepared. ) Tj ET Q q 0 0 0 rg BT 392.05 159.65 Td (Therefore, we estimate the tax basis of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 148.85 Td (assets and liabilities at the end of each period, as well as the ef) Tj ET Q q 0 0 0 rg BT 287.49 148.85 Td (fects of tax rate changes, tax credits, and net operating and capital loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 138.05 Td (carryforwards and carrybacks. ) Tj ET Q q 0 0 0 rg BT 161.04 138.05 Td (Adjustments related to dif) Tj ET Q q 0 0 0 rg BT 262.43 138.05 Td (ferences between the estimates we use and actual amounts we report are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 127.25 Td (recorded in the periods in which we file our income tax returns. ) Tj ET Q q 0 0 0 rg BT 290.46 127.25 Td (These adjustments and changes in our estimates of asset recovery and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 116.45 Td (liability settlement could have an impact on our results of operations. ) Tj ET Q q 0 0 0 rg BT 313.15 116.45 Td (A) Tj ET Q q 0 0 0 rg BT 318.66 116.45 Td ( one percent change in our ef) Tj ET Q q 0 0 0 rg BT 435.58 116.45 Td (fective tax rate would have ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 105.65 Td (changed our calculated income tax expense by approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 284.65 105.65 Td ($6.5 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.17 105.65 Td ( for the year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.22 105.65 Td (December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.27 105.65 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 82.85 Td (Accounting Matters) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.00 60.05 Td (Please refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 133.03 60.05 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 199.23 60.05 Td (Accounting Standards) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.29 60.05 Td ( under) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 312.81 60.05 Td ( ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 315.31 60.05 Td (Note 1 – Summary of Significant ) Tj ET Q q 0 0 0 rg BT 446.53 60.05 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 524.58 60.05 Td ( in Part II, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 49.25 Td (Item 8 of this report for information on new authoritative accounting guidance.) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.95 33.95 Td (66) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 36.00 740.45 Td (Environmental) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 717.65 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 717.65 Td (W) Tj ET Q q 0 0 0 rg BT 80.33 717.65 Td (e believe we are in substantial compliance with environmental laws and regulations and do not currently anticipate that ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 706.85 Td (material future expenditures will be required under the existing regulatory framework. However) Tj ET Q q 0 0 0 rg BT 413.68 706.85 Td (, environmental laws and regulations are ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 696.05 Td (subject to frequent changes, and we are unable to predict the impact that compliance with future laws or regulations, such as those ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 685.25 Td (currently being considered as discussed below) Tj ET Q q 0 0 0 rg BT 221.61 685.25 Td (, may have on future capital expenditures, liquidity) Tj ET Q q 0 0 0 rg BT 420.55 685.25 Td (, and results of operations.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 662.45 Td (Hydraulic Fracturing. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.03 662.45 Td (Hydraulic fracturing is an important and common practice that is used to stimulate production of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 651.65 Td (hydrocarbons from tight formations. For additional information about hydraulic fracturing and related environmental matters, please ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 640.85 Td (refer to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 67.01 640.85 Td (Risk Factors – ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 127.02 640.85 Td (Risks Related to Our Business) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 249.07 640.85 Td ( – ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 259.08 640.85 Td (Proposed federal and state legislative and regulatory initiatives relating to ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 630.05 Td (hydraulic fracturing, air quality) Tj ET Q q 0 0 0 rg BT 154.89 630.05 Td (, and greenhouse gas emissions could result in increased costs and additional operating restrictions or ) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 36.00 619.25 Td (delays) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 62.02 619.25 Td (.) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 72.00 596.45 Td (Climate Change. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.04 596.45 Td (In June 2013, President Obama announced a Climate ) Tj ET Q q 0 0 0 rg BT 360.68 596.45 Td (Action Plan designed to further reduce greenhouse ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 585.65 Td (gas emissions and prepare the nation for the physical ef) Tj ET Q q 0 0 0 rg BT 258.97 585.65 Td (fects that may occur as a result of climate change.  ) Tj ET Q q 0 0 0 rg BT 463.90 585.65 Td (The Climate ) Tj ET Q q 0 0 0 rg BT 514.42 585.65 Td (Action Plan ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 574.85 Td (targeted methane reductions from the oil and gas sector as part of a comprehensive interagency methane strategy) Tj ET Q q 0 0 0 rg BT 490.59 574.85 Td (.  ) Tj ET Q q 0 0 0 rg BT 497.59 574.85 Td (As part of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 564.05 Td (Climate ) Tj ET Q q 0 0 0 rg BT 68.51 564.05 Td (Action Plan, on May 12, 2016, the EP) Tj ET Q q 0 0 0 rg BT 217.44 564.05 Td (A) Tj ET Q q 0 0 0 rg BT 222.94 564.05 Td ( issued final regulations that amend and expand 2012 regulations for the oil and gas ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 553.25 Td (sector by setting emission limits for VOCs and methane, a greenhouse gas, or GHG, and added requirements for previously ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 542.45 Td (unregulated sources.  ) Tj ET Q q 0 0 0 rg BT 124.89 542.45 Td (The 2016 NSPS requires reduction of methane and VOCs from certain activities in oil and gas production, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 531.65 Td (processing, transmission and storage and applies to facilities constructed, modified, or reconstructed after September 18, 2015.  ) Tj ET Q q 0 0 0 rg BT 548.11 531.65 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 520.85 Td (regulation requires, among other things, greenhouse gas and VOC emission limits for certain equipment, such as centrifugal ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 510.05 Td (compressors and reciprocating compressors; semi-annual leak detection and repair for well sites and quarterly boosting and garnering ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 499.25 Td (compressor stations and gas transmission co