August 8, 2018 - 6:45 AM EDT
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LINN Energy Reports Second-Quarter 2018 Results

HOUSTON, Aug. 08, 2018 (GLOBE NEWSWIRE) -- LINN Energy, Inc. (OTCQB: LNGG) (“LINN” or the “Company”) announces financial and operating results for the second quarter 2018 and highlights the following:

  • Executed strategic plan to separate into two public companies, LINN, which owns a 50% equity interest in Roan Resources, LLC (“Roan”), and Riviera Resources, Inc. (“Riviera”), on August 7, 2018
  • Strong balance sheet with no debt and a second quarter ending cash balance of approximately $301 million
  • Returned more than $660 million of capital to LINN shareholders through share repurchases
  • Blue Mountain Midstream LLC (“Blue Mountain”) successfully started up the Chisholm Trail III cryogenic gas plant located in the core of the prolific Merge/SCOOP/STACK plays
  • Riviera management team to host conference call Thursday, August 23, 2018 at 10 a.m. (Central)

"It is remarkable what our Company and Board has accomplished since our reorganization. We successfully completed our merger with Citizen Energy to create the largest and only pure play growth company in the prolific Merge/SCOOP/STACK basin.  Blue Mountain, a wholly owned subsidiary of Riviera, recently commissioned a state of the art cryogenic natural gas processing facility with 250 mmcfe a day of designed processing capacity to service the rapidly expanding Merge/SCOOP/STACK basin.  We sold almost $2 billion of assets, in over 20 separate transactions, at a significant premium to proved developed PV-10. This allowed us tremendous financial flexibility to pay off all our debt, return more than $660 million of capital to our shareholders and build a significant cash balance. Finally, we completed our strategic plan to separate into two public companies, LINN, which owns a 50% equity interest in Roan, and Riviera, allowing us to unlock the value of the two companies. I would like to thank our employees for their hard work in executing our vision and look forward to the bright futures of Roan and Riviera,” said David Rottino, LINN’s President and Chief Executive Officer and President and Chief Executive Officer of Riviera.

The condensed consolidated results herein include the Riviera business, because the spin-off of Riviera from LINN (the “Spin-Off”) occurred after the quarter ended. As such, our financial information after the impact of the Spin-Off may not be meaningful to investors.  Please read the “Risk Factors” included in the Company’s Quarterly Report on Form 10-Q for the second quarter 2018, which will be filed later today with the Securities and Exchange Commission.

  
Key Financial Results (1) 
  
 Second Quarter
$ in millions20182017
Average daily production (MMcfe/d)312710
Oil, natural gas and NGL sales$87$243
Income from continuing operations$7$223
Loss from discontinued operations, net of income taxes$0$(3)
Net income$7$220
Adjusted EBITDAX (a non-GAAP financial measure) (2)$11$112
LINN Adjusted EBITDAX for Roan (a non-GAAP financial measure)(3)$31N/A
Net cash provided by operating activities$4$55
Oil and natural gas capital$7$71
Total capital$42$96

(1) All amounts reflect continuing operations with the exception of net income, for the second quarter of 2017 and 2018.  The amounts do not, however, reflect the separation of Riviera from LINN, which occurred on August 7, 2018.
(2) Excludes Adjusted EBITDAX from discontinued operations of approximately $12 million for the three months ended June 30, 2017. Includes severance expense of $14 million for the three months ended June 30, 2018.
(3) Represents the Adjusted EBITDAX for LINN’s 50% equity interest in Roan for the period from April 1, 2018, to June 30, 2018. See Schedule 1 below for a reconciliation of Adjusted EBITDA

Completed Spin-Off of Riviera Resources, Inc.
As previously disclosed, the Company completed the Spin-Off on August 7, 2018 after the market closed. The Spin-Off was effected through a pro rata distribution of all of the outstanding shares of Riviera’s common stock to LINN stockholders of record as of 5:00 p.m. on August 3, 2018, the record date for the Spin-Off.  On August 7, 2018, the distribution date for the Spin-Off, each LINN stockholder received one share of Riviera common stock for each share of LINN common stock held by such stockholder on the record date.

As of the Spin-Off, LINN stockholders owned one share each of:

  • LINN (OTCQB: LNGG), which owns a 50% equity interest in Roan Resources LLC, which is focused on the accelerated development of the Merge/SCOOP/STACK play in Oklahoma;
     
  • Riviera (OTCQX: RVRA), an independent oil and gas company with a strategic focus on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to shareholders. Riviera’s assets consist of:
    • LINN’s legacy properties located in the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Uinta Basin and Mid-Continent regions; and
    • Blue Mountain Midstream LLC, a midstream company centered in the core of the Merge play in the Anadarko Basin.

Trading of LINN Shares and Riviera Shares
LINN shares continue to trade on the OTCQB Market under the ticker symbol “LNGG”. Riviera is now an independent reporting company that will trade on the OTCQX Market under the ticker symbol “RVRA”.

Strong Balance Sheet
From its successful divestiture program in 2017 and 2018, the Company has extinguished all outstanding debt. As of June 30, 2018, the Company had no borrowings outstanding under its $425 million revolving credit facility and had approximately $378 million available borrowing capacity inclusive of outstanding letters of credit. LINN has a second quarter ending cash balance of approximately $301 million. Prior to the Spin-Off transaction, all but $40 million of cash was transferred to Riviera. The remaining cash at LINN will be available for use by LINN to fund certain obligations of the Company arising after the Spin-Off and prior to any consolidation with Roan. LINN will transfer any such remaining cash to Riviera prior to any consolidation of LINN and Roan.

Share Repurchases
Since its financial reorganization, the Company has returned more than $640 million of capital to LINN shareholders through the share repurchase program, tender offer and the employee liquidity program. The Company also retired approximately $20 million of Class A-2 units related to the Linn Energy HoldCo, LLC profits interest.

Second Quarter 2018 Activity
Production averaged 312 MMcfe/d for the second quarter 2018, exceeding the midpoint of guidance.  The Company outperformed guidance despite a production shut-in in the Hugoton field caused by a third party pipeline issue.  The Company continued to participate in significant non-operated drilling activity in the NW STACK.

Commissioned Chisholm III Cryogenic Gas Plant
Blue Mountain, a former subsidiary of the Company that became a subsidiary of Riviera in connection with the Spin-Off, completed a major processing capacity addition to its Chisholm Trail system at the end of the second quarter 2018 with the successful start up of the Chisholm Trail III cryogenic gas plant. Located in the core of the prolific Merge/SCOOP/STACK plays, the plant is a state of the art cryogenic processing facility with an initial design capacity of 150 million cubic feet per day (“MMcf/d”) and total designed processing capacity of 250 MMcf/d.

Roan Resources
Roan Resources was formed in the second quarter of 2017 and is focused on the accelerated development of approximately 154,000 net acres in the prolific Merge/SCOOP/STACK play of Oklahoma.

During the second quarter of 2018, Roan operated six to seven drilling rigs in the Merge and drilled 25 operated wells with lateral lengths ranging between one-to-two miles. Completion activity in the second quarter remained slower while awaiting the start-up of Blue Mountain’s Chisolm Trail cryogenic plant. Therefore, net production averaged approximately 36,400 BOE/d, down slightly from first quarter.  The cryogenic plant is now operating and current net average production is approximately 45,000 BOE/d.  Roan’s exit-rate production for 2018 is projected to be between 58,000 and 64,000 net BOE/d.

Roan brought online several impressive wells during the quarter. The Dutch 1H-33-28 (9,700’ lateral) and Dutch 1H-4-9 (7,475’ lateral) had an average 30-day IP rate of 1,918 BOE/d (67% liquids) and 1,360 BOE/d (66% liquids), respectively.  The Spectacular Bid 18-11-6 2H (4,915’ lateral) had an average 30-day IP rate of 1,728 BOE/d (75% liquids) and the Barbour 1-10-7 1H (4,960’ lateral) had an average 30-day IP rate of 1,487 BOE/d (56% liquids). All four wells are in Canadian county targeting the Woodford or Mayes formation. Roan currently has 13 drilled but uncompleted (“DUC”) wells.

Additional information on Roan’s operations, activity, financials and guidance can be found in the Roan Investor Presentation that was posted to LINN’s website on July 30, 2018 and in the second quarter supplemental presentation located on LINN's website.

   
Second Quarter Actuals versus Guidance
   
 Q2 Actuals Q2 Guidance
Net Production (MMcfe/d)312295 – 325
Natural gas (MMcf/d)238230 – 255
Oil (Bbls/d)1,8001,650 – 1,750
NGL (Bbls/d)10,5189,250 – 10,000
   
Other revenues, net (in thousands) (1)$ 9,027$ 10,000 - $ 12,000
   
Operating Costs (in thousands)$ 52,598$ 48,000 – $ 54,000
Lease operating expenses$ 24,088$ 24,000 – $ 27,000
Transportation expenses$ 21,213$ 17,000 – $ 19,000
Taxes, other than income taxes$ 7,297$ 7,000 – $ 8,000
   
General and administrative expenses (2)$ 20,044$ 20,000 – $ 22,000
General and administrative severance expenses$ 14,163$ 11,000 – $ 14,000
   
Targets (Mid-Point) (in thousands)  
Adjusted EBITDAX (3)$ 11,135$6,000
Interest expense(4)$ —$ —
Oil and natural gas capital$ 7,167$9,000
Total capital$ 42,026$54,000
   
Weighted Average NYMEX Differentials  
Natural gas (MMBtu)($ 0.32)($ 0.52) – ($ 0.43)
Oil (Bbl)($ 1.22)($ 2.90) – ($ 2.50)
NGL price as a % of NYMEX oil price35%30% – 34%
   

(1) Includes other revenues and margin on marketing activities
(2) Excludes share-based compensation expenses and severance expenses
(3) Includes a reduction to EBITDAX for estimated severance expenses, costs associated with managing assets divested during 2018, associated divestment costs, required transition services under purchase and sale agreements and estimated separation costs 
(4) Excludes non cash interest expense

Earnings Call / Form 10‑Q
The Company will file its second quarter form 10-Q with the Securities and Exchange Commission later today. The Company will not be hosting a conference call or webcast in connection with its second quarter 2018 results. Supplemental information can be found at the following link on our website: http://ir.linnenergy.com/presentations.cfm.

Riviera Resources Investor Conference Call
As previously announced, Riviera will host a conference call Thursday, August 23, 2018 at 10 a.m. (Central) to discuss additional strategic and financial information related to Riviera and its wholly owned subsidiary, Blue Mountain Midstream LLC. Investors and analysts are invited to participate in the call by dialing (844) 625-4392, or (409) 497-0988 for international calls using Conference ID: 2336839. Interested parties may also listen over the internet at www.RivieraResourcesInc.com.

A replay of the call will be available on Riviera’s website or by phone until September 6, 2018.  The number for the replay is (855) 859-2056 or (404) 537-3406 for international calls using Conference ID: 2336839. Presentation materials will be made available prior to the start of the call on Riviera’s website www.RivieraResourcesInc.com under the Investor Relations tab on the date of the events.

About LINN Energy
LINN Energy, Inc. was formed in February 2017 as the reorganized successor to LINN Energy, LLC. Headquartered in Houston, Texas, the Company’s current focus is the development of the Merge/SCOOP/STACK in Oklahoma through its equity interest in Roan Resources LLC.

About Roan Resources LLC
Roan is an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma, focused on the development, exploration and acquisition of unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays in Oklahoma. Roan was formed in the second quarter of 2017 by LINN and Citizen Energy II, LLC (“Citizen”). In exchange for their contributions, LINN and Citizen each received a 50% equity interest in Roan. Roan’s operations team took over field operations from LINN and Citizen in early 2018. For more information, please visit www.RoanResources.com.

About Riviera Resources
Riviera Resources is an independent oil and gas company with a strategic focus on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to shareholders. Riviera’s assets consist of properties located in the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Uinta Basin and Mid-Continent regions; and Blue Mountain Midstream LLC, a wholly owned subsidiary centered in the core of the Merge play in the Anadarko Basin. More information about Riviera and Blue Mountain Midstream LLC, is available at Riviera’s website, www.RivieraResourcesInc.com.

Forward-Looking Statements
Statements made in this press release that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to financial and operational performance and results of the Company and Roan Resources LLC, uncertainties relating to the Company’s and Riviera's ability to realize the anticipated benefits of the Spin-Off, the potential negative effects of the Spin-Off, continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities and the regulatory environment. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.

CONTACTS: LINN Energy, Inc.
Investor Relations
(281) 840-4110
[email protected]

    
Condensed Consolidated Balance Sheets (Unaudited)   
    
 June 30,
 2018
 December 31,
 2017
        
 (in thousands)
ASSETS   
Current assets:   
Cash and cash equivalents$301,365  $464,508 
Accounts receivable – trade, net64,686  140,485 
Derivative instruments3,934  9,629 
Restricted cash43,387  56,445 
Other current assets46,659  79,771 
Assets held for sale22  106,963 
Total current assets460,053  857,801 
    
Noncurrent assets:   
Oil and natural gas properties (successful efforts method)785,815  950,083 
Less accumulated depletion and amortization(59,870) (49,619)
 725,945  900,464 
    
Other property and equipment566,861  480,729 
Less accumulated depreciation(44,412) (28,658)
 522,449  452,071 
    
Derivative instruments1,254  469 
Deferred income taxes169,691  198,417 
Equity method investments473,269  464,926 
Other noncurrent assets5,264  6,975 
 649,478  670,787 
Total noncurrent assets1,897,872  2,023,322 
Total assets$2,357,925  $2,881,123 
    
LIABILITIES AND EQUITY   
Current liabilities:   
Accounts payable and accrued expenses$179,887  $253,975 
Stock-based payment liability111,792  - 
Derivative instruments5,536  10,103 
Other accrued liabilities19,830  58,617 
Liabilities held for sale-  43,302 
Total current liabilities317,045  365,997 
    
Noncurrent liabilities:   
Derivative instruments24  2,849 
Asset retirement obligations and other noncurrent liabilities105,531  160,720 
Total noncurrent liabilities105,555  163,569 
    
    
Equity:   
Class A common stock79  84 
Additional paid-in capital1,427,458  1,899,642 
Retained earnings507,788  432,860 
Total common stockholders’ equity1,935,325  2,332,586 
Noncontrolling interests-  18,971 
Total equity1,935,325  2,351,557 
Total liabilities and equity$2,357,925  $2,881,123 
        


  
Condensed Consolidated Statements of Operations (Unaudited) 
  
 Successor
 Three Months Ended June 30,
 2018 2017
        
 (in thousands, except per share amounts)
Revenues and other:   
Oil, natural gas and natural gas liquids sales$87,004  $243,167 
Gains (losses) on oil and natural gas derivatives(7,525) 45,714 
Marketing revenues42,967  12,547 
Other revenues6,387  6,391 
 128,833  307,819 
Expenses:   
Lease operating expenses24,088  71,057 
Transportation expenses21,213  37,388 
Marketing expenses40,327  6,976 
General and administrative expenses92,395  34,458 
Exploration costs53  811 
Depreciation, depletion and amortization21,980  51,987 
Taxes, other than income taxes7,297  17,871 
Gains on sale of assets and other, net(101,777) (306,878)
 105,576  (86,330)
Other income and (expenses):   
Interest expense, net of amounts capitalized(584) (7,551)
Earnings (losses) from equity method investments(9,327) 91 
Other, net538  (1,163)
 (9,373) (8,623)
Reorganization items, net(1,259) (3,377)
Income from continuing operations before income taxes12,625  382,149 
Income tax expense5,722  158,770 
Income from continuing operations6,903  223,379 
Loss from discontinued operations, net of income taxes  (3,322)
Net income6,903  220,057 
Net income attributable to noncontrolling interests1,799   
Net income attributable to common stockholders$5,104  $220,057 
    
Income (loss) per share/unit attributable to common stockholders:   
Income from continuing operations per share – Basic$0.06  $2.49 
Income from continuing operations per share – Diluted$0.06  $2.47 
    
Loss from discontinued operations per share – Basic$  $(0.04)
Loss from discontinued operations per share – Diluted$  $(0.04)
    
Net income per share – Basic$0.06  $2.45 
Net income per share – Diluted$0.06  $2.43 
    
Weighted average shares outstanding – Basic 78,718   89,849 
Weighted average shares outstanding – Diluted 79,277   90,484 
    


     
Condensed Consolidated Statements of Operations (Unaudited)   
     
 Successor  Predecessor
 Six Months
Ended
June 30, 2018
 Four Months
Ended
June 30, 2017
  Two Months
Ended
February 28, 2017
(in thousands, except per share and per unit amounts)      
Revenues and other:      
Oil, natural gas and natural gas liquids sales$223,880  $323,492   $188,885 
Gains (losses) on oil and natural gas derivatives(22,555) 33,755   92,691 
Marketing revenues89,234  15,461   6,636 
Other revenues12,281  8,419   9,915 
 302,840  381,127   298,127 
Expenses:      
Lease operating expenses71,972  95,687   49,665 
Transportation expenses40,307  51,111   25,972 
Marketing expenses82,082  9,515   4,820 
General and administrative expenses137,174  44,869   71,745 
Exploration costs1,255  866   93 
Depreciation, depletion and amortization50,445  71,901   47,155 
Taxes, other than income taxes15,749  24,948   14,877 
(Gains) losses on sale of assets and other, net(207,852) (306,394)  829 
 191,132  (7,497)  215,156 
Other income and (expenses):      
Interest expense, net of amounts capitalized(988) (11,751)  (16,725)
Earnings from equity method investments16,018  130   157 
Other, net369  (1,551)  (149)
 15,399  (13,172)  (16,717)
Reorganization items, net(3,210) (5,942)  2,331,189 
Income from continuing operations before income taxes123,897  369,510   2,397,443 
Income tax expense (benefit)45,896  153,455   (166)
Income from continuing operations78,001  216,055   2,397,609 
Loss from discontinued operations, net of income taxes  (3,254)  (548)
Net income78,001  212,801   2,397,061 
Net income attributable to noncontrolling interests3,073      
Net income attributable to common stockholders/unitholders$74,928  $212,801   $2,397,061 
       
Income (loss) per share/unit attributable to common stockholders/unitholders:   
Income from continuing operations per share/unit – Basic$0.95  $2.41   $6.80 
Income from continuing operations per share/unit – Diluted$0.93  $2.40   $6.80 
       
Loss from discontinued operations per share/unit – Basic$  $(0.04)  $(0.01)
Loss from discontinued operations per share/unit – Diluted$  $(0.04)  $(0.01)
       
Net income per share/unit – Basic$0.95  $2.37   $6.79 
Net income per share/unit – Diluted$0.93  $2.36   $6.79 
       
Weighted average shares/units outstanding – Basic78,817  89,849   352,792 
Weighted average shares/units outstanding – Diluted79,764  90,065   352,792 
       


     
Condensed Consolidated Statements of Cash Flows (Unaudited)   
     
 Successor  Predecessor
 Six Months
Ended
June 30, 2018
 Four Months
Ended
June 30, 2017
  Two Months
Ended
February 28, 2017
(in thousands)      
Cash flow from operating activities:      
Net income$78,001  $212,801   $2,397,061 
Adjustments to reconcile net income to net cash provided by operating activities:      
Loss from discontinued operations  3,254   548 
Depreciation, depletion and amortization50,445  71,901   47,155 
Deferred income taxes46,031  131,055   (166)
(Gains) losses on derivatives22,555  (33,755)  (92,691)
Cash settlements on derivatives(25,037) 7,929   (11,572)
Share-based compensation expenses66,374  19,599   50,255 
Amortization and write-off of deferred financing fees824  82   1,338 
(Gains) losses on sale of assets and other, net(224,091) (293,800)  1,069 
Reorganization items, net     (2,359,364)
Changes in assets and liabilities:      
(Increase) decrease in accounts receivable – trade, net76,465  27,212   (7,216)
(Increase) decrease in other assets35,828  (9,146)  528 
Increase (decrease) in accounts payable and accrued expenses(52,538) (89,755)  20,949 
Increase (decrease) in other liabilities(22,955) 22,421   2,801 
Net cash provided by operating activities – continuing operations51,902  69,798   50,695 
Net cash provided by operating activities – discontinued operations  13,966   8,781 
Net cash provided by operating activities51,902  83,764   59,476 
       
Cash flow from investing activities:      
Development of oil and natural gas properties(45,938) (61,534)  (50,597)
Purchases of other property and equipment(87,377) (27,287)  (7,409)
Proceeds from sale of properties and equipment and other369,489  697,829   (166)
Net cash provided by (used in) investing activities – continuing operations236,174  609,008   (58,172)
Net cash used in investing activities – discontinued operations  (1,645)  (584)
Net cash provided by (used in) investing activities236,174  607,363   (58,756)
Cash flow from financing activities:      
Proceeds from rights offerings, net     514,069 
Repurchases of shares(393,647)     
Proceeds from borrowings  160,000    
Repayments of debt  (876,570)  (1,038,986)
Payment to holders of claims under the Predecessor’s second lien notes     (30,000)
Distributions to noncontrolling interests(12,174) (2,973)   
Cash settlements of equity classified RSUs(58,162)     
Other(294) (87)  (6,015)
Net cash used in financing activities – continuing operations(464,277) (719,630)  (560,932)
Net cash used in financing activities – discontinued operations      
Net cash used in financing activities(464,277) (719,630)  (560,932)
       
Net decrease in cash, cash equivalents and restricted cash(176,201) (28,503)  (560,212)
Cash, cash equivalents and restricted cash:      
Beginning520,953  144,022   704,234 
Ending$344,752  $115,519   $144,022 
             

Schedule 1 - Adjusted EBITDAX (Non-GAAP Measure)

The non-GAAP financial measure of adjusted EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Therefore, this non-GAAP measure should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for GAAP.

Adjusted EBITDAX is a measure used by Company management to evaluate the Company’s operational performance and for comparisons to the Company’s industry peers. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.

The following presents a reconciliation of net income (loss) to adjusted EBITDAX:

  
 Three Months Ended June 30, 
 2018 2017
   (in thousands)  
Net income$  6,903  $  220,057 
Plus (less):       
Income from discontinued operations    3,322 
Interest expense 584   7,551 
Income tax expense 5,722   158,770 
Depreciation, depletion and amortization 21,980   51,987 
Exploration costs 53   811 
EBITDAX 35,242   442,498 
Plus (less):       
Noncash (gains) losses on oil and natural gas derivatives 6,955   (43,567)
Accrued settlements on oil derivative contracts related to current production period (2) 935   1,583 
Share-based compensation expenses 58,188   15,422 
(Earnings) losses from equity method investments 9,327   (91)
Gains on sale of assets and other, net (3) (100,771)  (307,290)
Reorganization items, net (4) 1,259   3,377 
Adjusted EBITDAX$  11,135  $  111,932 
    


    
 Six Months Ended June 30,
 2018 2017(1)
 (in thousands)  
Net income$  78,001  $  2,609,862 
Plus (less):       
Income from discontinued operations    3,802 
Interest expense 988   28,476 
Income tax expense 45,896   153,289 
Depreciation, depletion and amortization 50,445   119,056 
Exploration costs 1,255   959 
EBITDAX 176,585   2,915,444 
Plus (less):       
Noncash (gains) losses on oil and natural gas derivatives 17,491   (130,089)
Accrued settlements on oil derivative contracts related to current production period (2) 1,568   2,885 
Share-based compensation expenses 75,225   69,854 
Earnings from equity method investments (16,018)  (287)
Gains on sale of assets and other, net (3) (206,882)  (307,120)
Reorganization items, net (4) 3,210   (2,325,247)
Adjusted EBITDAX$  51,179  $  225,440 
        

(1) All amounts reflect the combined results of the four months ended June 30, 2017 (successor) and the two months ended February 28, 2017 (predecessor).
(2) Represent amounts related to oil derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period.
(3) Primarily represent gains or losses on the sale of assets and gains or losses on inventory valuation.
(4) Represent costs and income directly associated with the Company’s filing for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code since the petition date, and also include adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments are determined.

  
Roan Resources LLC Adjusted EBITDAX (LINN’s 50% Equity Interest) 
  
 Three Months ended
June 30, 2018
 (in thousands)
  
Net loss$(11,378)
Plus (less): 
Interest expense 544 
Depreciation, depletion and amortization 12,300 
Exploration costs 5,317 
EBITDAX 6,783 
  Noncash losses on oil and natural gas derivatives 22,415 
Share-based compensation expenses 1,417 
Adjusted EBITDAX$30,615 
    


  
 Six Months ended
June 30, 2018
 (in thousands)
  
Net income$6,162 
Plus (less): 
Interest expense 1,443 
Depreciation, depletion and amortization 23,233 
Exploration costs 9,242 
EBITDAX 40,080 
  Noncash losses on oil and natural gas derivatives 24,964 
Share-based compensation expenses 2,564 
Adjusted EBITDAX$67,608 
    

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Source: GlobeNewswire (August 8, 2018 - 6:45 AM EDT)

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