400000030000000false--12-31Q220190001690769Alta Mesa Resources, Inc. /DE0.00010.0001120000000028000000012000000002800000001800722272021695761826364331999879761800722272021695761826364331999879761700000117000000.00010.0001100000010000001000000100000031312121 0001690769 2019-01-01 2019-06-30 0001690769 us-gaap:WarrantMember 2019-01-01 2019-06-30 0001690769 us-gaap:CommonClassAMember 2019-01-01 2019-06-30 0001690769 us-gaap:CommonClassAMember 2019-08-31 0001690769 us-gaap:CommonClassCMember 2019-08-31 0001690769 srt:NaturalGasReservesMember 2018-02-09 2018-06-30 0001690769 srt:OilReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 2018-02-09 2018-06-30 0001690769 2018-04-01 2018-06-30 0001690769 us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0001690769 2019-04-01 2019-06-30 0001690769 srt:NaturalGasReservesMember 2019-04-01 2019-06-30 0001690769 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-06-30 0001690769 srt:OilReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0001690769 us-gaap:ProductMember 2019-04-01 2019-06-30 0001690769 srt:NaturalGasLiquidsReservesMember 2019-04-01 2019-06-30 0001690769 srt:OilReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:ProductMember 2019-01-01 2019-06-30 0001690769 srt:OilReservesMember 2019-04-01 2019-06-30 0001690769 srt:NaturalGasLiquidsReservesMember 2018-04-01 2018-06-30 0001690769 srt:NaturalGasReservesMember 2019-01-01 2019-06-30 0001690769 amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:ProductMember 2018-04-01 2018-06-30 0001690769 srt:NaturalGasReservesMember 2018-04-01 2018-06-30 0001690769 srt:NaturalGasReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0001690769 amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-06-30 0001690769 us-gaap:ProductMember 2018-02-09 2018-06-30 0001690769 us-gaap:ProductMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 srt:OilReservesMember 2018-02-09 2018-06-30 0001690769 srt:NaturalGasLiquidsReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 amr:MidstreamMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:ProductAndServiceOtherMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 2018-12-31 0001690769 2019-06-30 0001690769 us-gaap:CommonClassAMember 2019-06-30 0001690769 us-gaap:PreferredClassAMember 2019-06-30 0001690769 us-gaap:PreferredClassBMember 2019-06-30 0001690769 us-gaap:CommonClassCMember 2018-12-31 0001690769 us-gaap:PreferredClassBMember 2018-12-31 0001690769 us-gaap:CommonClassAMember 2018-12-31 0001690769 us-gaap:CommonClassCMember 2019-06-30 0001690769 us-gaap:PreferredClassAMember 2018-12-31 0001690769 2018-02-08 0001690769 us-gaap:PredecessorMember 2018-01-01 2018-12-31 0001690769 us-gaap:PredecessorMember 2017-12-31 0001690769 2018-06-30 0001690769 us-gaap:PredecessorMember 2018-02-08 0001690769 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001690769 2019-01-01 2019-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-12-31 0001690769 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001690769 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001690769 us-gaap:ParentMember 2018-12-31 0001690769 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001690769 us-gaap:ParentMember 2019-04-01 2019-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-06-30 0001690769 us-gaap:ParentMember 2019-06-30 0001690769 us-gaap:ParentMember 2019-01-01 2019-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-06-30 0001690769 us-gaap:RetainedEarningsMember 2018-12-31 0001690769 us-gaap:NoncontrollingInterestMember 2018-12-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-06-30 0001690769 us-gaap:ParentMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-06-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001690769 us-gaap:ParentMember 2018-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-02-09 0001690769 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001690769 us-gaap:ParentMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 us-gaap:ParentMember 2018-02-09 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-08 2018-02-08 0001690769 us-gaap:ParentMember 2018-02-09 2018-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-09 2018-03-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-09 0001690769 us-gaap:ParentMember 2018-04-01 2018-06-30 0001690769 us-gaap:ParentMember 2018-06-30 0001690769 2018-02-08 2018-02-08 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001690769 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-09 0001690769 us-gaap:ParentMember 2018-02-08 0001690769 2018-03-31 0001690769 us-gaap:NoncontrollingInterestMember 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-02-09 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2018-06-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 2018-02-09 2018-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-08 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-09 0001690769 us-gaap:RetainedEarningsMember 2018-02-08 0001690769 2018-02-09 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-02-09 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-03-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-09 2018-03-31 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-08 2018-02-08 0001690769 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001690769 amr:KingfisherMidstreamLLCMember us-gaap:SubsequentEventMember 2019-08-31 0001690769 amr:AltaMesaCreditFacilityMember 2019-01-01 2019-03-31 0001690769 amr:AltaMesaCreditFacilityMember us-gaap:SubsequentEventMember 2019-08-31 0001690769 amr:UpstreamMember us-gaap:SubsequentEventMember 2019-08-31 0001690769 amr:AltaMesaCreditFacilityMember 2019-04-01 0001690769 amr:SRIIOpcoMember us-gaap:SubsequentEventMember 2019-08-31 0001690769 amr:KingfisherCreditFacilityMember 2019-06-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-03-31 0001690769 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001690769 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingExpenseMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingExpenseMember 2019-04-01 2019-06-30 0001690769 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001690769 us-gaap:CommonClassAMember 2018-02-09 2018-06-30 0001690769 us-gaap:CommonClassAMember 2019-04-01 2019-06-30 0001690769 us-gaap:CommonClassAMember 2018-04-01 2018-06-30 0001690769 amr:HighMesaAgreementMember 2019-06-30 0001690769 amr:HighMesaAgreementMember 2019-01-01 2019-06-30 0001690769 amr:HighMesaAgreementMember 2018-12-31 0001690769 amr:HighMesaAgreementMember srt:AffiliatedEntityMember 2019-06-30 0001690769 amr:SeniorNotesTwoMember amr:HighMesaServicesLlcMember 2019-06-30 0001690769 amr:HighMesaAgreementMember srt:AffiliatedEntityMember 2018-12-31 0001690769 amr:NorthwestGasProcessingMember 2019-06-30 0001690769 amr:HighMesaAgreementMember 2018-02-09 2018-03-31 0001690769 amr:NorthwestGasProcessingMember 2018-12-31 0001690769 amr:SeniorNotesTwoMember amr:HighMesaServicesLlcMember 2018-12-31 0001690769 amr:WeeksIslandLouisianaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2019-01-01 2019-06-30 0001690769 amr:BasisSwapDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:WeeksIslandLouisianaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember amr:NonStackAssetsMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:DerivativeAssetsCurrentMember 2019-06-30 0001690769 amr:DerivativeAssetNonCurrentMember 2019-06-30 0001690769 amr:DerivativeAssetNonCurrentMember 2018-12-31 0001690769 amr:DerivativeAssetsCurrentMember 2018-12-31 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember us-gaap:SwapMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:SwapMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember us-gaap:SwapMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:SwapMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:LongPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:ShortCallOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortPutOptionsMember amr:OilDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MinimumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MinimumMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember srt:MaximumMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MaximumMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember srt:MinimumMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember us-gaap:BasisSwapMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember srt:MaximumMember amr:ShortCallOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyOneMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember amr:LongPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndTwentyMember amr:ShortPutOptionsMember amr:NaturalGasDerivativeContractMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenMember us-gaap:SwapMember amr:NaturalGasDerivativeContractMember 2019-01-01 2019-06-30 0001690769 amr:ContractsTobeSettledJanuary2019Member 2018-12-31 0001690769 amr:ContractsTobeSettledJanuary2019Member 2019-06-30 0001690769 amr:TwoThousandAndTwentyBMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenCMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenBMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenDMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenCMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndTwentyBMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-01-01 2019-06-30 0001690769 amr:TwoThousandAndNineteenDMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-06-30 0001690769 amr:TwoThousandAndNineteenBMember amr:NaturalGasBasisSwapDerivativeContractsMember 2019-06-30 0001690769 amr:DerivativeLiabilitiesNonCurrentMember 2019-06-30 0001690769 amr:DerivativeLiabilitiesCurrentMember 2019-06-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2018-02-09 2018-06-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2019-04-01 2019-06-30 0001690769 us-gaap:NondesignatedMember 2019-01-01 2019-06-30 0001690769 us-gaap:NondesignatedMember 2018-02-09 2018-06-30 0001690769 us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2019-04-01 2019-06-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2018-04-01 2018-06-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-06-30 0001690769 us-gaap:NondesignatedMember 2019-04-01 2019-06-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2018-04-01 2018-06-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-06-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2018-02-09 2018-06-30 0001690769 us-gaap:NondesignatedMember 2018-04-01 2018-06-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:DerivativeLiabilitiesCurrentMember 2018-12-31 0001690769 amr:DerivativeLiabilitiesNonCurrentMember 2018-12-31 0001690769 amr:AltaMesaRBLMember us-gaap:SubsequentEventMember 2019-09-01 2019-09-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-06-30 0001690769 amr:KingfisherCreditFacilityMember 2019-01-01 2019-06-30 0001690769 amr:AltaMesaHoldingsLPMember amr:SeniorNotesOneMember 2019-06-30 0001690769 amr:AmendmentToKFMCreditFacilityMember 2019-06-30 0001690769 amr:KingfisherMidstreamLLCMember amr:KingfisherCreditFacilityMember 2019-06-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-01-01 2019-06-30 0001690769 amr:KingfisherMidstreamLLCMember 2019-06-30 0001690769 amr:KingfisherMidstreamLLCMember 2018-12-31 0001690769 amr:SeniorNotesTwoMember 2018-12-31 0001690769 amr:SeniorNotesOneMember 2019-06-30 0001690769 amr:AltaMesaHoldingsLPMember amr:AltaMesaRBLMember 2019-06-30 0001690769 amr:AltaMesaHoldingsLPMember amr:AltaMesaRBLMember 2018-12-31 0001690769 amr:SeniorNotesTwoMember 2019-06-30 0001690769 amr:SeniorNotesOneMember 2018-12-31 0001690769 amr:ArmEnergyManagementLLCMember 2018-12-31 0001690769 amr:ArmEnergyManagementLLCMember 2019-06-30 0001690769 amr:ArmEnergyManagementLLCMember 2018-04-01 2018-06-30 0001690769 amr:ArmEnergyManagementLLCMember 2018-02-09 2018-06-30 0001690769 amr:ArmEnergyManagementLLCMember 2019-04-01 2019-06-30 0001690769 amr:ArmEnergyManagementLLCMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2019-01-01 2019-06-30 0001690769 amr:ArmEnergyManagementLLCMember 2019-01-01 2019-06-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2018-04-01 2018-06-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2019-04-01 2019-06-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2018-02-09 2018-06-30 0001690769 amr:PerformanceRestrictedStockUnitsMember 2019-01-01 2019-06-30 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2018-02-09 2018-12-31 0001690769 srt:MinimumMember amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2018-02-09 2018-12-31 0001690769 srt:MaximumMember amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001690769 us-gaap:EmployeeStockOptionMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:PerformanceRestrictedStockUnitsMember 2019-04-01 2019-06-30 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:EmployeeStockOptionMember 2018-04-01 2018-06-30 0001690769 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2018-02-09 2018-06-30 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-04-01 2018-06-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-06-30 0001690769 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001690769 us-gaap:EmployeeStockOptionMember 2018-02-09 2018-06-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2018-02-09 2018-06-30 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2016-12-31 2016-12-31 0001690769 amr:LandConsultingServicesMember us-gaap:VicePresidentMember amr:DavidMurrellVpOfLandAndBusinessDevelopmentMember 2018-02-09 2018-03-31 0001690769 amr:JointDevelopmentAgreementMember 2016-01-13 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2017-12-31 0001690769 amr:JointDevelopmentAgreementMember 2016-12-31 2016-12-31 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2018-02-09 2018-03-31 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2019-06-30 0001690769 amr:BceStackMember 2019-06-30 0001690769 amr:LandConsultingServicesMember us-gaap:VicePresidentMember us-gaap:PredecessorMember amr:DavidMurrellVpOfLandAndBusinessDevelopmentMember 2018-02-01 2018-02-08 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2019-04-01 2019-06-30 0001690769 amr:BceStackMember 2018-12-31 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember us-gaap:PredecessorMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2018-01-01 2018-12-31 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2019-01-01 2019-06-30 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2018-01-01 2018-12-31 0001690769 us-gaap:OperatingSegmentsMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2018-02-09 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2018-02-09 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2018-04-01 2018-06-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2018-04-01 2018-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2019-01-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2019-04-01 2019-06-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2019-04-01 2019-06-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2019-04-01 2019-06-30 iso4217:USD iso4217:USD xbrli:shares xbrli:pure xbrli:shares utreg:bbl utreg:MMBTU iso4217:USD utreg:MMBTU iso4217:USD utreg:bbl amr:well

159000004000000false--12-31Q320190001690769 Alta Mesa Resources, Inc. /DE5000000.00010.0001120000000028000000012000000002800000001800722272021695761827652781999879761800722272021695761827652781999879761700000183000002400000117000000.00010.0001100000010000001000000100000031312121 0001690769 2019-01-01 2019-09-30 0001690769 us-gaap:CommonClassAMember 2019-10-31 0001690769 us-gaap:CommonClassCMember 2019-10-31 0001690769 2019-07-01 2019-09-30 0001690769 2018-02-09 2018-09-30 0001690769 us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 srt:NaturalGasLiquidsReservesMember 2019-07-01 2019-09-30 0001690769 2018-07-01 2018-09-30 0001690769 srt:NaturalGasReservesMember 2018-02-09 2018-09-30 0001690769 srt:NaturalGasLiquidsReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-09-30 0001690769 amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:ProductMember 2019-01-01 2019-09-30 0001690769 srt:NaturalGasReservesMember 2019-01-01 2019-09-30 0001690769 srt:OilReservesMember 2019-01-01 2019-09-30 0001690769 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:ProductAndServiceOtherMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:ProductMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-09-30 0001690769 srt:NaturalGasReservesMember 2019-07-01 2019-09-30 0001690769 srt:NaturalGasReservesMember 2018-07-01 2018-09-30 0001690769 amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 srt:OilReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 srt:NaturalGasLiquidsReservesMember 2018-07-01 2018-09-30 0001690769 srt:OilReservesMember 2018-02-09 2018-09-30 0001690769 amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 amr:MidstreamMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:ProductAndServiceOtherMember 2019-07-01 2019-09-30 0001690769 us-gaap:ProductMember 2018-07-01 2018-09-30 0001690769 us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-09-30 0001690769 us-gaap:ProductMember 2018-02-09 2018-09-30 0001690769 srt:OilReservesMember 2019-07-01 2019-09-30 0001690769 srt:OilReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:ProductMember 2019-07-01 2019-09-30 0001690769 srt:NaturalGasReservesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:ProductAndServiceOtherMember 2018-07-01 2018-09-30 0001690769 2018-12-31 0001690769 2019-09-30 0001690769 us-gaap:CommonClassCMember 2019-09-30 0001690769 us-gaap:PreferredClassAMember 2019-09-30 0001690769 us-gaap:PreferredClassBMember 2018-12-31 0001690769 us-gaap:CommonClassAMember 2018-12-31 0001690769 us-gaap:PreferredClassBMember 2019-09-30 0001690769 us-gaap:PreferredClassAMember 2018-12-31 0001690769 us-gaap:CommonClassCMember 2018-12-31 0001690769 us-gaap:CommonClassAMember 2019-09-30 0001690769 us-gaap:PredecessorMember 2018-02-08 0001690769 2018-09-30 0001690769 us-gaap:PredecessorMember 2017-12-31 0001690769 2018-02-08 0001690769 2018-02-09 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-08 0001690769 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-09-30 0001690769 us-gaap:ParentMember 2018-07-01 2018-09-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-06-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-03-31 0001690769 us-gaap:ParentMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-09-30 0001690769 2018-04-01 2018-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-09 0001690769 us-gaap:RetainedEarningsMember 2018-09-30 0001690769 2018-02-09 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-02-08 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001690769 us-gaap:RetainedEarningsMember 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-31 0001690769 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-02-08 0001690769 us-gaap:ParentMember 2018-06-30 0001690769 us-gaap:ParentMember 2018-02-08 0001690769 2018-02-08 2018-02-08 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-08 2018-02-08 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001690769 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-09 0001690769 us-gaap:NoncontrollingInterestMember 2018-09-30 0001690769 us-gaap:ParentMember 2018-04-01 2018-06-30 0001690769 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-09 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-02-09 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001690769 us-gaap:RetainedEarningsMember 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-02-09 2018-03-31 0001690769 us-gaap:ParentMember 2018-02-09 2018-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001690769 us-gaap:ParentMember 2018-03-31 0001690769 us-gaap:NoncontrollingInterestMember 2018-02-09 2018-03-31 0001690769 us-gaap:ParentMember 2018-02-09 0001690769 us-gaap:ParentMember 2018-09-30 0001690769 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-02-08 2018-02-08 0001690769 us-gaap:NoncontrollingInterestMember 2018-03-31 0001690769 us-gaap:NoncontrollingInterestMember 2018-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-02-09 2018-03-31 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-02-08 0001690769 us-gaap:RetainedEarningsMember 2018-02-09 0001690769 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001690769 2019-04-01 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2018-12-31 0001690769 us-gaap:ParentMember 2019-07-01 2019-09-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-06-30 0001690769 us-gaap:ParentMember 2019-01-01 2019-03-31 0001690769 2019-06-30 0001690769 2019-01-01 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001690769 us-gaap:NoncontrollingInterestMember 2019-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001690769 us-gaap:RetainedEarningsMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-06-30 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2018-12-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001690769 us-gaap:ParentMember 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-09-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-31 0001690769 us-gaap:CommonClassCMember us-gaap:CommonStockMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001690769 us-gaap:ParentMember 2018-12-31 0001690769 us-gaap:ParentMember 2019-09-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-06-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001690769 2019-03-31 0001690769 us-gaap:ParentMember 2019-04-01 2019-06-30 0001690769 us-gaap:NoncontrollingInterestMember 2019-03-31 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001690769 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001690769 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001690769 us-gaap:ParentMember 2019-03-31 0001690769 us-gaap:RetainedEarningsMember 2019-09-30 0001690769 us-gaap:NoncontrollingInterestMember 2018-12-31 0001690769 amr:SRIIOpcoMember us-gaap:SubsequentEventMember 2019-10-31 0001690769 amr:PreliminaryValuationMember 2019-01-01 2019-09-30 0001690769 amr:PreliminaryValuationMember 2018-12-31 0001690769 amr:PreliminaryValuationMember 2019-09-30 0001690769 amr:SeniorNotesOneMember 2019-09-12 2019-09-30 0001690769 amr:PreliminaryValuationMember 2019-07-01 2019-09-30 0001690769 srt:OilReservesMember amr:PreliminaryValuationMember 2019-07-01 2019-09-30 0001690769 srt:NaturalGasLiquidsReservesMember amr:PreliminaryValuationMember 2019-07-01 2019-09-30 0001690769 us-gaap:ProductAndServiceOtherMember amr:PreliminaryValuationMember 2019-01-01 2019-09-30 0001690769 srt:NaturalGasReservesMember amr:PreliminaryValuationMember 2019-01-01 2019-09-30 0001690769 srt:NaturalGasLiquidsReservesMember amr:PreliminaryValuationMember 2019-01-01 2019-09-30 0001690769 srt:OilReservesMember amr:PreliminaryValuationMember 2019-01-01 2019-09-30 0001690769 us-gaap:ProductAndServiceOtherMember amr:PreliminaryValuationMember 2019-07-01 2019-09-30 0001690769 srt:NaturalGasReservesMember amr:PreliminaryValuationMember 2019-07-01 2019-09-30 0001690769 amr:SeniorNotesOneMember amr:PreliminaryValuationMember 2019-09-30 0001690769 amr:MidstreamMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:UpstreamMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:UpstreamMember 2018-02-09 2018-12-31 0001690769 amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 2018-02-09 2018-12-31 0001690769 amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 amr:MidstreamMember 2018-02-09 2018-12-31 0001690769 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2019-01-01 2019-09-30 0001690769 amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001690769 us-gaap:OperatingExpenseMember 2019-07-01 2019-09-30 0001690769 us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01 2019-09-30 0001690769 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingExpenseMember 2019-01-01 2019-09-30 0001690769 us-gaap:CommonClassAMember 2018-07-01 2018-09-30 0001690769 us-gaap:CommonClassAMember 2019-07-01 2019-09-30 0001690769 us-gaap:CommonClassAMember 2019-01-01 2019-09-30 0001690769 us-gaap:CommonClassAMember 2018-02-09 2018-09-30 0001690769 amr:HighMesaAgreementMember srt:AffiliatedEntityMember 2018-12-31 0001690769 amr:SeniorNotesTwoMember amr:HighMesaServicesLlcMember 2019-09-30 0001690769 amr:HighMesaAgreementMember srt:AffiliatedEntityMember 2019-09-30 0001690769 amr:NorthwestGasProcessingMember 2019-09-30 0001690769 srt:AffiliatedEntityMember 2018-12-31 0001690769 amr:HighMesaAgreementMember 2018-02-09 2018-03-31 0001690769 amr:HighMesaAgreementMember 2018-12-31 0001690769 amr:HighMesaAgreementMember 2019-09-30 0001690769 amr:HighMesaAgreementMember 2019-01-01 2019-09-30 0001690769 amr:NorthwestGasProcessingMember 2018-12-31 0001690769 amr:SeniorNotesTwoMember amr:HighMesaServicesLlcMember 2018-12-31 0001690769 amr:MajorCountyMember 2019-07-01 2019-09-30 0001690769 amr:WeeksIslandLouisianaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember amr:NonStackAssetsMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:WeeksIslandLouisianaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:DerivativeLiabilitiesCurrentMember 2018-12-31 0001690769 amr:DerivativeLiabilitiesNonCurrentMember 2018-12-31 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2018-07-01 2018-09-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2018-07-01 2018-09-30 0001690769 us-gaap:NondesignatedMember 2018-02-09 2018-09-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2019-07-01 2019-09-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2018-02-09 2018-09-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:NondesignatedMember 2019-07-01 2019-09-30 0001690769 us-gaap:NondesignatedMember 2018-07-01 2018-09-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2019-07-01 2019-09-30 0001690769 amr:OilCommodityContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-09-30 0001690769 us-gaap:NondesignatedMember 2019-01-01 2019-09-30 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2018-02-09 2018-09-30 0001690769 us-gaap:NondesignatedMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:NaturalGasCommodityContractsMember us-gaap:NondesignatedMember 2019-01-01 2019-09-30 0001690769 amr:ContractsTobeSettledJanuary2019Member 2018-12-31 0001690769 amr:DerivativeAssetNonCurrentMember 2018-12-31 0001690769 amr:DerivativeAssetsCurrentMember 2018-12-31 0001690769 amr:AltaMesaRBLMember 2019-09-01 2019-09-30 0001690769 amr:SeniorNotesOneMember 2019-09-30 0001690769 amr:AltaMesaHoldingsLPMember amr:AltaMesaRBLMember 2019-09-30 0001690769 amr:KingfisherMidstreamLLCMember 2019-09-30 0001690769 amr:AltaMesaHoldingsLPMember amr:AltaMesaRBLMember 2018-12-31 0001690769 amr:SeniorNotesOneMember 2018-12-31 0001690769 amr:KingfisherMidstreamLLCMember 2018-12-31 0001690769 amr:AltaMesaCreditFacilityMember 2019-09-30 0001690769 amr:KingfisherCreditFacilityMember 2019-01-01 2019-09-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-08-31 0001690769 amr:AmendmentToKFMCreditFacilityMember us-gaap:SubsequentEventMember 2019-10-31 0001690769 amr:AmendmentToKFMCreditFacilityMember 2019-09-30 0001690769 amr:KingfisherMidstreamLLCMember amr:KingfisherCreditFacilityMember 2019-09-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-01-01 2019-03-31 0001690769 amr:AltaMesaCreditFacilityMember 2019-01-01 2019-09-30 0001690769 amr:AltaMesaHoldingsLPMember amr:SeniorNotesOneMember 2019-09-30 0001690769 amr:AltaMesaCreditFacilityMember 2019-03-31 0001690769 amr:AltaMesaCreditFacilityMember 2019-04-01 0001690769 us-gaap:LetterOfCreditMember 2018-12-31 0001690769 us-gaap:LetterOfCreditMember 2019-01-01 2019-09-30 0001690769 us-gaap:SubsequentEventMember 2019-11-01 2019-11-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2018-07-01 2018-09-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2019-07-01 2019-09-30 0001690769 amr:ArmEnergyManagementLLCMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:ArmEnergyManagementLLCMember 2018-07-01 2018-09-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:ArmEnergyManagementLLCMember 2019-01-01 2019-09-30 0001690769 amr:ArmEnergyManagementLLCMember 2018-02-09 2018-09-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2018-02-09 2018-09-30 0001690769 amr:ArmEnergyManagementLLCMember 2019-07-01 2019-09-30 0001690769 amr:ArmEnergyManagementLLCMember amr:MarketingFeesMember 2019-01-01 2019-09-30 0001690769 amr:ArmEnergyManagementLLCMember 2018-12-31 0001690769 amr:ArmEnergyManagementLLCMember 2019-09-30 0001690769 amr:PerformanceRestrictedStockUnitsMember 2019-01-01 2019-09-30 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2018-02-09 2018-12-31 0001690769 srt:MinimumMember amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2018-02-09 2018-12-31 0001690769 srt:MaximumMember amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-12-31 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-07-01 2018-09-30 0001690769 us-gaap:EmployeeStockOptionMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0001690769 amr:PerformanceRestrictedStockUnitsMember 2018-02-09 2018-09-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2018-02-09 2018-09-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2018-07-01 2018-09-30 0001690769 us-gaap:EmployeeStockOptionMember 2018-02-09 2018-09-30 0001690769 amr:PerformanceRestrictedStockUnitsMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 amr:PerformanceRestrictedStockUnitsMember 2019-07-01 2019-09-30 0001690769 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001690769 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001690769 us-gaap:RestrictedStockUnitsRSUMember us-gaap:PredecessorMember 2018-01-01 2018-02-08 0001690769 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0001690769 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001690769 amr:JointDevelopmentAgreementMember 2016-12-31 2016-12-31 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2019-09-30 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember us-gaap:PredecessorMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2018-01-01 2018-02-28 0001690769 amr:BceStackMember 2018-12-31 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember us-gaap:PredecessorMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2018-01-01 2018-02-08 0001690769 amr:LandConsultingServicesMember us-gaap:VicePresidentMember amr:DavidMurrellVpOfLandAndBusinessDevelopmentMember 2018-02-09 2018-09-30 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2016-12-31 2016-12-31 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2018-02-09 2018-09-30 0001690769 amr:JointDevelopmentAgreementMember 2016-01-13 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2018-02-09 2018-09-30 0001690769 amr:CompensationToRelatedPartyMember us-gaap:VicePresidentMember amr:DavidMcclureVpOfFacilitiesAndMidstreamMember 2019-01-01 2019-09-30 0001690769 amr:CompensationToRelatedPartyMember amr:LandmanMember amr:DavidPepperLandmanAndCousinOfVPOfLandAndBusinessDevelopmentMember 2019-01-01 2019-09-30 0001690769 amr:LandConsultingServicesMember us-gaap:VicePresidentMember us-gaap:PredecessorMember amr:DavidMurrellVpOfLandAndBusinessDevelopmentMember 2018-01-01 2018-02-08 0001690769 amr:JointDevelopmentAgreementMember amr:BceStackMember 2017-12-31 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2019-01-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2019-07-01 2019-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2019-07-01 2019-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2018-07-01 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasReservesMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember amr:SegmentOperatingRevenueMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:OilReservesMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:UpstreamMember 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:OilReservesMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasReservesMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:ProductAndServiceOtherMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:IntersegmentEliminationMember us-gaap:ProductMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:SegmentOperatingRevenueMember amr:UpstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember amr:MidstreamMember 2018-02-09 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember amr:MidstreamMember 2018-09-30 0001690769 us-gaap:OperatingSegmentsMember srt:NaturalGasLiquidsReservesMember 2018-02-09 2018-09-30 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure amr:well

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

_____________________________________

FORM 10-Q

_____________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2019

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to___

Commission file number: 001-38040

_______________________________________

ALTA MESA RESOURCES, INC.

(Exact name of registrant as specified in its charter)

_______________________________________



Delaware				81-4433840
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)

15021 Katy Freeway,	Suite 400,	Houston,	Texas	77094
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: 281-530-0991

Securities registered pursuant to Section 12(b) of the Act: None.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share	AMRQQ	OTC Pink Marketplace
Warrants to purchase one share of Class A Common Stock	AMRWQ	OTC Pink Marketplace

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☒	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August~~October 31, 2019, there were 182,~~755~~774,~~573~~952 shares of Class A Common Stock and 199,987,976 shares of Class C Common Stock, par value $0.0001 per share outstanding. The shares of Class A Common Stock shown as outstanding do not include ~~554~~528,~~294~~041 nonvested restricted stock awards outstanding as of ~~August~~October 31, 2019.

TABLE OF CONTENTS

	Page Number
Glossary	i
Cautionary Statement Regarding Forward-Looking Statements	1
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)	3
Condensed Consolidated Statements of Operations	3
Condensed Consolidated Balance Sheets	4
Condensed Consolidated Statements of Cash Flows	5
Condensed Consolidated Statements of Changes in Stockholders’ Equity	6
Condensed Consolidated Statement of Changes in Partners’ Capital	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	3033
Item 3. Quantitative and Qualitative Disclosures about Market Risk	5053
Item 4. Controls and Procedures	5153
PART II - OTHER INFORMATION
Item 1. Legal Proceedings	5154
Item 1A. Risk Factors	5155
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	5659
Item 3. Defaults Upon Senior Securities	5659
Item 4. Mine Safety Disclosures	5660
Item 5. Other Information	5660
Item 6. Exhibits	5861
Signatures	5962

Table of Contents

Index to Financial Statements

Glossary of Terms

The definitions and abbreviations set forth below apply to the indicated terms throughout this filing.

Company Specific Terms -
2018 10-K -	Alta Mesa Resources, Inc. Annual Report on Form 10-K for the year ended December 31, 2018.
2018 Period -	The combined ~~Predecessor Period and~~ Successor Period from February 9, 2018 through ~~June~~September 30, 2018 and Predecessor Period from January 1, 2018 through February 8, 2018.
2019 Period -	The ~~six~~nine months ended ~~June~~September 30, 2019.
2024 Notes -	$500 million aggregate principal amount of 7.875% senior unsecured notes maturing December 2024.
Alta Mesa -	Alta Mesa Holdings, LP. This entity conducts our Upstream activities.
Alta Mesa GP -	Alta Mesa Holdings GP, LLC, a majority owned subsidiary of SRII Opco, LP.
Alta Mesa RBL -	Alta Mesa Eighth Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, as amended. This credit agreement is a reserve based loan or RBL.
Alta Mesa Services -	Alta Mesa Services, LP, is a wholly owned subsidiary of Alta Mesa Holdings, LP.
AMH Debtors -	Alta Mesa Holdings, LP, Alta Mesa Holdings GP, LLC, OEM GP, LLC, Alta Mesa Finance Services Corp, Alta Mesa Services, LP and Oklahoma Energy Acquisitions, LP.
ARM -	ARM Energy Management, LLC, a company that marketed our oil and gas production and provided services relating to our derivatives.
Bankruptcy Code -	Chapter 11 of the United States Bankruptcy Code.
Bankruptcy Court -	United States Bankruptcy Court for the Southern District of Texas.
BCE -	BCE-STACK Development LLC, a fund advised by Bayou City Management, LLC.
Business Combination -	The acquisition by Alta Mesa Resources, Inc. of controlling interests in Alta Mesa Holdings GP, LLC, Alta Mesa Holdings, LP, and ~~KFM~~Kingfisher Midstream, LLC.
Debtors -	Alta Mesa Resources, Inc., Alta Mesa Holdings, LP, Alta Mesa Holdings GP, LLC, OEM GP, LLC, Alta Mesa Finance Services Corp, Alta Mesa Services, LP and Oklahoma Energy Acquisitions, LP.
High Mesa -	High Mesa Holdings, LP, a partnership formed in connection with executing the Business Combination.
HMI -	High Mesa, Inc., the predecessor owner of Alta Mesa Holdings, LP.
KFM -	Kingfisher Midstream, LLC. This entity conducts our Midstream activities.
KFM Credit Facility -	Kingfisher Midstream, LLC amended and restated senior secured revolving credit facility with Wells Fargo Bank, National Association, as the administrative agent.
Midstream -	Reportable business segment representing our midstream activities.
Predecessor Period -	The period from January 1, 2018 through February 8, 2018.
PSU's -	Performance-based restricted stock units issued to employees under the Alta Mesa Resources, Inc. 2018 Long-Term Incentive Plan.
SRII Opco -	SRII Opco, LP is a subsidiary of Alta Mesa Resources, Inc. and direct owner of Alta Mesa Holdings, LP and Kingfisher Midstream, LLC.
Successor Period -	The period from February 9, 2018 through ~~June~~September 30, 2018, and all periods thereafter.
Upstream -	Reportable business segment representing our exploration and production activities.
Oil, Gas and Other Terms -
Basin -	A large natural depression on the earth’s surface in which sediments generally brought by water accumulate.
bbl -	One stock tank barrel, of 42 U.S. gallons liquid volume, used herein to describe volumes of crude oil, condensate or natural gas liquids.
bbld -	Barrels per day.
Bcf -	One billion cubic feet of natural gas.

Table of Contents

Index to Financial Statements



Bcfe -	One billion cubic feet of natural gas equivalent with one barrel of oil converted to six thousand cubic feet of natural gas. The ratio of six thousand cubic feet of natural gas to one bbl of oil or natural gas liquids is commonly used in the oil and natural gas business and represents the approximate energy equivalency of six thousand cubic feet of natural gas to one bbl of oil or natural gas liquids.
Boe -	One barrel of oil equivalent is determined using the ratio of six Mcf of natural gas to one barrel of oil, condensate or natural gas liquids. The ratio of six Mcf of natural gas to one bbl of oil or natural gas liquids is commonly used in our business and represents the approximate ratio of energy content between natural gas and oil, and does not represent the price equivalency of natural gas to oil or natural gas liquids.
Boed -	One boe per day.
Btu or British Thermal Unit -	The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit.
Completion -	The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil.
Condensate -	A mixture of hydrocarbons that exists in the gaseous phase at original reservoir temperature and pressure, but that, when produced, is in the liquid phase at surface pressure and temperature.
Cryogenic -	The process of using extreme cold to separate NGLs from the natural gas stream.
DD&A -	Depreciation, depletion and amortization.
Development costs -	Costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering and storing the oil and natural gas.
Development project -	A development project is the means by which petroleum resources are brought to the status of economically producible. As examples, the development of a single reservoir or field, an incremental development in a producing field or the integrated development of a group of several fields and associated facilities with a common ownership may constitute a development project.
Differential -	An adjustment to the market reference price of oil, natural gas or natural gas liquids from an established spot market price to reflect differences in the quality and/or location of oil or natural gas.
Dry hole -	A well found to be incapable of producing hydrocarbons in commercial quantities.
Dth -	A dekatherm is a unit of energy used primarily to measure natural gas and is equal to 1,000,000 Btu.
Dthd -	1,000,000 Btu per day.
EBITDA -	Earnings before interest, taxes, depreciation, depletion and amortization.
EBITDAX -	Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses.
Enhanced recovery -	The recovery of oil and natural gas through the injection of liquids or gases into the reservoir, supplementing its natural energy. Enhanced recovery methods are often applied when production slows due to depletion of the natural pressure.
Exploitation -	A development or other project which may target proven or unproven reserves (such as probable or possible reserves), but which generally has a lower risk than that associated with exploration projects.
Formation -	A layer of rock which has distinct characteristics that differs from adjacent rock.
Fracing, fracture stimulation technology, hydraulic fracturing -	A well stimulation technique to improve a well’s production by pumping a mixture of fluids into the formation to create hydraulic fractures which intersect existing natural fractures. As part of this technique, sand or other material may also be injected to keep the hydraulic fracture open, so that fluids or natural gases may more easily flow through the formation.
Held by production -	Acreage covered by mineral leases that perpetuates a company’s right to operate a property usually requiring production to be maintained at a minimum economic quantity of production.
Horizontal drilling -	A drilling technique used in certain formations where a well is drilled vertically to a certain depth and then drilled at an angle within a specified interval.
Lease operating expenses -	The expenses of lifting oil or natural gas from a producing formation to the surface, constituting part of the current operating expenses of a well. Such expenses include labor, supplies, repairs, utilities, environmental and safety, maintenance, allocated overhead costs, severance taxes, insurance and other expenses incidental to production, but excluding lease acquisition, drilling or completion expenses.

Table of Contents

Index to Financial Statements



Mbbl -	One thousand barrels of crude oil, condensate, natural gas liquids, or produced water.
Mbbld -	One thousand barrels per day.
MBoe -	One thousand boe.
MBoed -	One thousand boe per day.
Mcf -	One thousand cubic feet of natural gas.
Mcfd -	One thousand cubic feet per day.
Mcfe -	One thousand cubic feet equivalent determined using the ratio of one barrel of oil, condensate or natural gas liquids to six Mcf of natural gas.
Mcfed -	Mcfe per day.
MMBbl -	One million barrels of crude oil, condensate or natural gas liquids.
MMBoe -	One million boe.
MMBtu -	One million British thermal units.
MMBtud -	One million British thermal units per day.
MMcf -	One million cubic feet of natural gas.
MMcfd -	One million cubic feet per day.
MMcfe -	Million cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
MMcfed -	MMcfe per day.
Net acres -	The total acres a working interest owner has attributable to a particular number of acres, or a specified tract.
Net production -	Portion of production owned by us after production attributable to royalty and other owners.
NGLs or natural gas liquids -	Natural gas liquids are a group of hydrocarbons including ethane, propane, normal butane, isobutane and natural gasoline.
Non-operated working interests -	The working interest or fraction thereof in a lease or unit, the owner of which is without operating rights by reason of an operating agreement.
NYMEX -	The New York Mercantile Exchange.
Proved properties -	Properties with proved reserves.
Proved reserves -	Quantities of oil and natural gas, which can be estimated with reasonable certainty to be economically producible from known reservoirs, and under existing economic conditions, operating methods and government regulations.
Realized price -	The cash market price less all expected quality, transportation and demand adjustments.
Recompletion -	The process of treating an existing wellbore in an attempt to establish or increase existing production.
Reserves -	Estimated remaining quantities of oil and natural gas anticipated to be economically producible from known accumulations.
Resources -	Quantities of oil and natural gas estimated to exist in naturally occurring accumulations. A portion of the resources may be estimated to be recoverable and another portion may be considered unrecoverable.
Royalty -	An interest in an oil and natural gas lease that gives the owner the right to receive a portion of the production from the leased acreage (or of the proceeds from the sale thereof), but does not require the owner to pay any portion of the production or development costs on the leased acreage.
SEC -	United States Securities and Exchange Commission.
Service well -	A well drilled or completed for the purpose of supporting production in an existing field. Specific purposes of service wells include gas injection, water injection, steam injection, air injection, produced water disposal, water supply for injection, observation, or injection for in-situ combustion.
Spacing -	The distance between wells producing from the same reservoir. Spacing in horizontal development plays is often expressed in terms of feet, e.g., 1000 foot spacing, and is often established by regulatory agencies.

iii

Table of Contents

Index to Financial Statements



STACK -	An oilfield in the eastern portion of the Anadarko Basin; STACK is an acronym describing both its location—Sooner Trend Anadarko Basin Canadian and Kingfisher County—and the multiple, stacked productive formations present in the area.
Unproved properties -	Properties with no proved reserves.
Wellbore -	The hole drilled by the bit that is equipped for natural gas production on a completed well. Also called a well or borehole.
Working interest -	The right granted to the lessee of a property to explore for and to produce and own natural gas or other minerals. The working interest owners bear the exploration, development, and operating costs.
Workover -	Operations on a producing well to restore or increase production.

Table of Contents

Index to Financial Statements

Cautionary Statement Regarding Forward-Looking Statements

The information in this Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report, regarding our ability to continue as a going concern, the outcome or timing of our emergence from bankruptcy, strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words “could”, “should”, “will”, “plan”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” in this Quarterly Report, ~~our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (“Q1 2019 Form 10-Q”)~~ and our Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 10-K”). These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events.

Forward-looking statements may include statements about:


•	our ability to continue as a going concern;


•	the outcome or timing of our emergence from bankruptcy, including limitations placed upon us by the process and our ability to develop, confirm and consummate a plan under Chapter 11 or an alternative restructuring or sale transaction;


•	our ability to maintain relationships with suppliers, customers, employees and other third parties as a result of our Chapter 11 filing;

• decisions by the KFM Board of Directors regarding making liquidity available to us during bankruptcy proceedings and any impact of those decisions on our ability to maintain compliance with the covenants in the KFM Credit Facility;


•	the sufficiency of liquidity to fund our operations and capital expenditures;


•	our access to capital, including constraints from the cost and availability of debt and equity financing;


•	our ability to comply with, or amend the terms of, the covenants and restrictions imposed by the KFM Credit Facility;


•	our ability to execute our stated business strategy;


•	our reserve quantities and the present value of our reserves;


•	our ability to replace the reserves we produce through drilling and through acquisitions;


•	our exploration and drilling prospects, inventories, projects and programs;


•	our drilling, completion and production technology;


•	future oil and gas prices;


•	the supply and demand for our production and our midstream services;


•	the timing and amount of our future production;


•	our hedging strategy and expected results;


•	competition and government regulation;


•	our ability to obtain permits and governmental approvals;


•	expected or anticipated regulatory changes, including to the Oklahoma forced pooling system;


•	pending legal and environmental matters;


•	our future drilling plans, spacing plans and development pace;


•	our marketing of our production;


•	our leasehold or business acquisitions;


•	our costs of developing our properties;


•	our ability to hire, train or retain qualified personnel;


•	general economic conditions;


•	operating hazards and other risks incidental to transporting, storing, gathering and processing natural gas, natural gas liquids and crude oil;


•	our future operating results, including production levels, initial production rates and yields in our type curve areas;


•	the costs, terms and availability of midstream services;


•	our ability to collect receivables from High Mesa, Inc. and its subsidiaries; and


•	our plans, objectives, expectations and intentions contained in this Quarterly Report that are not historical.

Table of Contents

~~Index~~a plan of reorganization; risks attendant to ~~Financial~~the ~~Statements~~bankruptcy process, including the effects thereof on our business and on the interests of various constituents, the length of time that we might be required to operate in bankruptcy and the continued availability of operating capital during the pendency of such proceedings; risks associated with third party motions in any bankruptcy case, which may interfere with the ability to confirm and consummate a plan of reorganization; potential adverse effects on our liquidity or results of operations; increased costs to execute the reorganization; our ability to negotiate a waiver under the KFM Credit Facility and the ability of the KFM lenders to accelerate the repayment of KFM’s borrowings; effects on the market price of our common stock and on our ability to access the capital markets; commodity price volatility, global economic conditions, including supply and demand levels for oil, gas and NGLs, inflation, increased operating costs, lack of availability of drilling and production equipment, supplies, services and qualified personnel, liabilities resulting from litigation or the SEC investigation, difficulties in obtaining necessary approvals and permits, uncertainties related to new technologies, geographical concentration of our operations, environmental risks, weather risks, security risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and gas reserves and in projecting future rates of production, reductions in cash flow, lack of access to capital, our ability to satisfy future cash obligations, restrictions in our debt agreements, the timing of development expenditures, managing our growth and integration of acquisitions, cyber-attacks, failure to realize expected value creation from property acquisitions, title defects, limited control over non-operated properties, and the other risks described in Risk Factors in this Quarterly Report and in our 2018 10-K.

We caution you that any forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of oil, natural gas and natural gas liquids. Some factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements include, but are not limited to, the ability to confirm and consummate a plan of reorganization; risks attendant to the bankruptcy process, including the effects thereof on our business and on the interests of various constituents, the length of time that we might be required to operate in bankruptcy and the continued availability of operating capital during the pendency of such proceedings; risks associated with third party motions in any bankruptcy case, which may interfere with the ability to confirm and consummate a plan of reorganization; potential adverse effects on our liquidity or results of operations; increased costs to execute the reorganization; effects on the market price of our common stock and on our ability to access the capital markets; commodity price volatility, global economic conditions, including supply and demand levels for oil, gas and NGLs, inflation, increased operating costs, lack of availability of drilling and production equipment, supplies, services and qualified personnel, liabilities resulting from litigation or the SEC investigation, difficulties in obtaining necessary approvals and permits, uncertainties related to new technologies, geographical concentration of our operations, environmental risks, weather risks, security risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and gas reserves and in projecting future rates of production, reductions in cash flow, lack of access to capital, our ability to satisfy future cash obligations, restrictions in our debt agreements, the timing of development expenditures, managing our growth and integration of acquisitions, cyber-attacks, failure to realize expected value creation from property acquisitions, title defects, limited control over non-operated properties, and the other risks described in Risk Factors in our 2018 10-K and in the 10-Q for the period ended March 31, 2019.

Estimating reserve quantities of oil, natural gas and NGLs is complex, inexact and relies on interpretations of geologic, geophysical, engineering and production data. The extent, quality, reliability and interpretation of these data can vary. The process also requires making a number of economic assumptions, such as sales prices, the relative mix of oil, natural gas and NGLs that will be ultimately produced, drilling and operating costs, capital expenditures, the effect of government regulation, taxes and availability of funds. Future prices received for production and costs may vary, perhaps significantly, from the assumptions used in our estimates. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of development and related production. Accordingly, reserve estimates may differ significantly from the quantities of oil and gas that are ultimately recovered.

Should one or more of the risks or uncertainties described in this Quarterly Report, or in the 2018 10-K ~~or the 10-Q for the period ended March 31, 2019~~ occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances occurring after the date of this Quarterly Report.

Table of Contents

Index to Financial Statements

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ALTA MESA RESOURCES, INC. (Debtor-in-possession)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except shares outstanding and per share data)

	Successor												Predecessor
	Three Months EndedJune 30, 2019			Three Months EndedJune 30, 2018			Six Months EndedJune 30, 2019			February 9, 2018ThroughJune 30, 2018			January 1, 2018ThroughFebruary 8, 2018
	Three Months EndedSeptember 30, 2019			Three Months EndedSeptember 30, 2018			Nine Months EndedSeptember 30, 2019			February 9, 2018ThroughSeptember 30, 2018			January 1, 2018ThroughFebruary 8, 2018
Revenue
Oil	$	9084,~~668~~010		$	75107,~~291~~253		$	~~177~~261,~~031~~041		$	~~115~~222,~~569~~822		$	30,972
Natural gas	1210,~~384~~788			711,~~980~~959			3041,~~834~~622			1325,~~190~~149			4,276
Natural gas liquids	108,~~251~~333			1013,~~241~~880			2129,~~467~~800			1428,~~955~~835			4,000
Sales of gathered production	108,~~439~~387			89,~~924~~129			1928,~~999~~386			1221,~~797~~926			—
Midstream revenue	65,~~549~~882			67,~~817~~802			1319,~~704~~586			1017,~~077~~879			—
Other	32,~~014~~143			21,~~229~~011			68,~~099~~242			23,~~784~~795			888
Operating revenue	~~133~~119,~~305~~543			~~111~~151,~~482~~034			~~269~~388,~~134~~677			~~169~~320,~~372~~406			40,136
Gain (loss) on sale of assets	—(106		)	(6318		)	1,~~483~~377			5,~~076~~058			840
Gain (loss) on derivatives	~~12,412~~(379		)	(2911,~~219~~212		)	(11,~~365~~744		)	(5162,~~230~~442		)	6,663
Total revenue	~~145~~119,~~717~~058			82139,~~200~~804			~~259~~378,~~252~~310			~~123~~263,~~218~~022			47,639
Operating expenses
Lease operating	1514,~~114~~192			1216,~~679~~351			3549,~~058~~250			2037,~~996~~347			4,408
Transportation, processing and marketing	6,~~837~~179			5,~~396~~181			1117,~~440~~619			813,~~755~~936			3,725
Midstream operating	6,~~520~~621			34,~~313~~507			1219,~~671~~292			38,~~900~~407			—
Cost of sales for purchased gathered production	87,~~720~~656			89,~~902~~461			1826,~~415~~071			1222,~~711~~172			—
Production taxes	54,~~117~~673			26,~~606~~311			1015,~~600~~273			410,~~021~~332			953
Workovers	~~807~~783			~~333~~1,065			1,~~120~~903			12,~~578~~643			423
Exploration	340,~~289~~847			81,~~083~~029			546,~~343~~190			910,~~668~~697			7,003
Depreciation, depletion and amortization	3836,~~009~~999			3353,~~934~~103			75112,~~908~~907			49102,~~613~~716			11,670
Impairment of assets	6691,~~500~~123			—			6697,~~500~~623			—			—
General and administrative	27,~~172~~992			2211,~~456~~902			5684,~~690~~682			6072,~~208~~110			21,234
Total operating expenses	~~118~~837,~~085~~065			97108,~~702~~910			~~233~~1,~~745~~070,810			~~171~~280,~~450~~360			49,416
Operating income	27(718,~~632~~007		)	~~(15~~30,~~502~~894		)	25(692,~~507~~500		)	(4817,~~232~~338		)	(1,777		)
Other income (expense)
Interest expense	(1615,~~755~~145		)	(1112,~~779~~347		)	(3247,~~215~~360		)	(1729,~~223~~570		)	(5,511		)
Interest income	7969			~~824~~357			~~130~~199			1,~~370~~727			172
Equity in earnings of unconsolidated subsidiaries	~~643~~(29		)	—			~~742~~713			—			—
Total other income (expense), net	(16,033		)	(10,955		)	(31,343		)	(15,853		)	(5,339		)
Reorganization items, net	22,467			—			22,467			—			—
Income (loss) from continuing operations before income taxes	11,599			(26,457		)	(5,836		)	(64,085		)	(7,116		)
Total other income (expense), net	7,362			(11,990		)	(23,981		)	(27,843		)	(5,339		)
Income tax provision (benefit)	—			(3,791		)	—			(7,665		)	—
Income (loss) from continuing operations before income taxes	(710,645		)	18,904			(716,481		)	(45,181		)	(7,116		)
Income (loss) from continuing operations	11,599			(22,666		)	(5,836		)	(56,420		)	(7,116		)
Income tax provision (benefit)	—			1,504			—			(6,161		)	—
Income (loss) from continuing operations	(710,645		)	17,400			(716,481		)	(39,020		)	(7,116		)
Loss from discontinued operations, net of tax	—			—			—			—			(7,746		)
Net income (loss)	11(710,~~599~~645		)	~~(22~~17,~~666~~400		)	(5716,~~836~~481		)	(5639,~~420~~020		)	$	(14,862	)
Net income (loss) attributable to noncontrolling interests	9(368,~~354~~458		)	~~(16~~10,~~066~~427		)	~~326~~(368,132		)	(3626,~~490~~063		)
Net income (loss) attributable to Alta Mesa Resources, Inc. stockholders	$	2(342,~~245~~187	)	$	(6,~~600~~973	)	$	(6348,~~162~~349	)	$	(1912,~~930~~957	)
Attributable to Alta Mesa Resources, Inc. stockholders:
Income (loss) per share - basic and diluted	$	0.01		$	(0.04	)	$	(0.03	)	$	(0.12	)
Income (loss) per share - basic	$	(1.87	)	$	0.04		$	(1.92	)	$	(0.07	)
Weighted average shares outstanding - basic	180,742,049			173,345,982			180,505,318			171,908,486
Income (loss) per share - diluted	$	(1.87	)	$	0.04		$	(1.92	)	$	(0.08	)
Weighted average shares outstanding - diluted	180,742,049			207,965,929			180,505,318			208,112,707

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ALTA toMESA ~~Financial~~RESOURCES, ~~Statements~~INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except shares and per share data)

໿

	June 30, 2019		December 31, 2018
	September 30, 2019		December 31, 2018
ASSETS
Current assets
Cash and cash equivalents	$	9169,~~111~~325	$	26,854
Restricted cash	~~890~~951		1,001
Accounts receivable, net	7366,~~776~~386		87,842
Other receivables	31,~~635~~171		6,331
Related party receivables, net	~~2,310~~—		3,341
Prepaid expenses and other	59,~~575~~784		1,125
Derivatives	~~4,727~~—		16,423
Total current assets	~~182~~147,~~024~~617		142,917
Property and equipment, net
Oil and gas properties, successful efforts method	~~784~~365,~~079~~343		763,337
Other property and equipment	~~470~~166,~~547~~575		444,269
Total property and equipment, net	1531,~~254,626~~918		1,207,606
Other assets
Operating lease right-of-use assets, net	87,~~180~~402		—
Equity method investment	1,~~842~~813		1,100
Deferred financing costs, net	21,~~836~~720		3,195
Deposits and other long-term assets	416,597		65
Derivatives	~~2,508~~—		2,947
Total other assets	1517,~~407~~532		7,307
Total assets	$	1697,~~452,057~~067	$	1,357,830

	June 30, 2019			December 31, 2018
	September 30, 2019			December 31, 2018
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of debt	$	1564,~~089,162~~004		$	690,123
Accounts payable and accrued liabilities	~~109~~61,~~901~~001			247,439
Advances from non-operators	~~1,755~~619			5,193
Advances from related party	42,~~003~~611			9,839
Asset retirement obligations, current portion	4474			2,079
Current operating lease liability	~~1,018~~736			—
Derivatives	~~840~~—			1,710
Total current liabilities	1629,~~206,723~~045			956,383
Long-term liabilities
Asset retirement obligations, net of current portion	12,~~442~~868			9,473
Long-term debt, net	—			174,000
Other long-term liabilities	5,096			1,667
Operating lease liabilities, net of current portion	10,781			—
Operating lease liabilities, net of current portion	13,962			—
Derivatives	—			180
Derivatives	189			180
Other long-term liabilities	6,662			1,667
Total long-term liabilities	3130,~~689~~311			185,320
Total liabilities	1,238,412			1,141,703
Liabilities subject to compromise	533,181			—
Total liabilities	1,192,537			1,141,703
Preferred Stock, $0.0001 par value
Class A: 1,000,000 shares authorized; 3 shares issued; 2 outstanding	—			—
Class B: 1,000,000 shares authorized; 1 share issued and outstanding	—			—
Common stock, $0.0001 par value
Class A: 1,200,000,000 shares authorized; 182,636,433 shares issued and outstanding (180,072,227 issued and outstanding at December 31, 2018)	18			18
Class A: 1,200,000,000 shares authorized; 182,765,278 shares issued and outstanding (180,072,227 issued and outstanding at December 31, 2018)	18			18
Class C: 280,000,000 shares authorized; 199,987,976 and 202,169,576 issued and outstanding at June 30, 2019 and December 31, 2018	20			20
Class C: 280,000,000 shares authorized; 199,987,976 and 202,169,576 issued and outstanding at September 30, 2019 and December 31, 2018	20			20
Additional paid in capital	1,~~509~~511,~~716~~330			1,503,382
Accumulated deficit	(1,~~538~~881,~~975~~162		)	(1,532,813		)
Total stockholders’ equity	(29369,~~221~~794		)	(29,393		)
Noncontrolling interests	~~242~~(125,~~866~~676		)	245,520
Total equity	~~213~~(495,~~645~~470		)	216,127
Total liabilities and stockholders’ equity	$	1697,~~452,057~~067		$	1,357,830

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ALTA toMESA ~~Financial~~RESOURCES, ~~Statements~~INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Successor						Predecessor
	Six Months EndedJune 30, 2019			February 9, 2018ThroughJune 30, 2018			January 1, 2018ThroughFebruary 8, 2018
	Nine Months EndedSeptember 30, 2019			February 9, 2018ThroughSeptember 30, 2018			January 1, 2018ThroughFebruary 8, 2018
Cash flows from operating activities:
Net loss	$	(5716,~~836~~481	)	$	(5639,~~420~~020	)	$	(14,862	)
Adjustments to reconcile net loss to cash from operating activities:
Depreciation, depletion and amortization	75112,~~908~~907			49102,~~613~~716			12,554
Non-cash lease expense	12,~~675~~343			—			—
Provision for uncollectible receivables	13,~~177~~449			—			—
Impairment of assets	6697,~~500~~623			—			5,560
Amortization of deferred financing costs	368			152			171
Non-cash reorganization items, net	(25,142		)	—			—
Amortization of debt premium	(2,462		)	(2,051		)	—
Amortization of deferred financing costs	541			339			171
Equity-based compensation expense	3,519			7,729			—
Amortization of debt premium	(3,432		)	(3,281		)	—
Non-cash exploration expense	388			7,288			4,575
Equity-based compensation expense	5,025			8,333			—
(Gain) loss on derivatives	11,365			51,230			(6,663		)
Non-cash exploration expense	40,245			7,288			4,575
Cash settlements of derivatives	909			(18,334		)	(2,296		)
(Gain) loss on derivatives	11,744			62,442			(6,663		)
Premium paid on derivatives	(1,000		)	—			—
Cash settlements of derivatives	7,642			(32,201		)	(2,296		)
Cash paid for derivatives	(1,906		)	—			—
Interest converted into debt	—			—			103
Interest added to notes receivable from affiliate	—			(~~417~~680		)	(85		)
Deferred tax provision (benefit)	—			(75,~~665~~378		)	—
Loss on sale of fixed assets	~~114~~105			6381			1,923
Equity in earnings of unconsolidated subsidiaries	(~~742~~713		)	—			—
Impact on cash from changes in:
Accounts receivable	1321,~~744~~193			(916,~~143~~225		)	(21,184		)
Other receivables	25,~~696~~161			~~996~~972			(662		)
Related party receivables	~~179~~154			(614,~~260~~488		)	(117		)
Prepaid expenses and other assets	(415,~~426~~190		)	8,~~116~~368			(591		)
Advances from related party	(~~154~~7,231		)	(1030,~~371~~589		)	24,116
Settlement of asset retirement obligations	(~~5,835~~180		)	(~~806~~1,249		)	(63		)
Accounts payable, accrued liabilities and other liabilities	(126,~~123~~135		)	(7844,~~542~~922		)	23,857
Operating lease obligations	(12,~~376~~270		)	—			—
Cash from operating activities	84129,~~588~~452			~~(64~~2,~~822~~506		)	26,336
Cash flows from investing activities:
Capital expenditures	(~~247~~315,~~942~~894		)	(~~340~~523,~~631~~645		)	(36,695		)
Acquisitions, net of cash acquired	—			(791,819		)	(1,218		)
Proceeds withdrawn from trust account	—			1,042,742			—
Investment in equity affiliate and other, net	—			(69,~~945~~326		)	—
Cash from investing activities	(~~247~~315,~~942~~894		)	(96282,~~653~~048		)	(37,913		)
Cash flows from financing activities:
Proceeds from long-term debt borrowings	~~227~~238,500			80162,~~000~~500			60,000
Repayments of long-term debt	—(9,496		)	(193,565		)	(43,000		)
Deferred financing costs paid	—			(3,670		)	—
Payment of taxes withheld on equity-based compensation awards	(141		)	—			—
Deferred financing costs paid	—			(3,716		)	—
Purchase and retirement of Class A common shares	—			(14,750		)	—
Capital distributions	—			—			(68		)
Proceeds from issuance of Class A shares	—			400,000			—
Repayment of sponsor note	—			(2,000		)	—
Repayment of deferred underwriting compensation	—			(36,225		)	—
Redemption of Class A common shares	—			(33		)	—
Cash from financing activities	~~227~~228,~~500~~863			~~244~~312,~~507~~211			16,932
Net increase in cash, cash equivalents and restricted cash	6442,~~146~~421			8332,~~032~~669			5,355
Cash, cash equivalents and restricted cash, beginning of period	27,855			388			4,990
Cash, cash equivalents and restricted cash, end of period	$	9270,~~001~~276		$	8333,~~420~~057		$	10,345

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ALTA toMESA ~~Financial~~RESOURCES, ~~Statements~~INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Successor)

(in thousands)

	Common Stock																				Total
	Class A				Class B					Class C					Paid-In			Accumulated			Stockholders’			Noncontrolling			Total
	Shares		Amount		Shares		Amount			Shares		Amount			Capital			Deficit			Equity			Interests			Equity
Balance at February 8, 2018	3,862		$	—	25,875		$	3		—		$	—		$	3,106		$	(8,114	)	$	(5,005	)	$	—		$	(5,005	)
Conversion of common shares from Class B to Class A at closing of Business Combination	25,875		3		(25,875	)	(3		)	—		—			—			—			—			—			—
Class A common shares released from possible redemption	99,638		10		—		—			—		—			996,374			—			996,384			—			996,384
Class A common shares redeemed	(3	)	—		—		—			—		—			(33		)	—			(33		)	—			(33		)
Sale of Class A common shares	40,000		4		—		—			—		—			399,996			—			400,000			—			400,000
Class C common shares issued in connection with the closing of the Business Combination	—		—		—		—			213,402		21			(21		)	—			—			—			—
Noncontrolling interest in SRII Opco issued in the Business Combination	—		—		—		—			—		—			—			—			—			2,058,635			2,058,635
Balance at February 9, 2018	169,372		17		—		—			213,402		21			1,399,422			(8,114		)	1,391,346			2,058,635			3,449,981
Equity based compensation expense	—		—		—		—			—		—			3,466			—			3,466			—			3,466
Net loss	—		—		—		—			—		—			—			(13,330		)	(13,330		)	(20,424		)	(33,754		)
Balance at March 31, 2018	169,372		17		—		—			213,402		21			1,402,888			(21,444		)	1,381,482			2,038,211			3,419,693
Additional Class C common shares issued in connection with the settlement of the purchase consideration in the business combination	—		—		—		—			1,109		—			—			—			—			—			—
Noncontrolling interest in SRII Opco assumed in the business combination	—		—		—		—			—		—			—			—			—			8,758			8,758
Redemption of noncontrolling interests and Class C common shares for Class A common shares	9,589		1		—		—			(9,589	)	(1		)	90,872			—			90,872			(91,309		)	(437		)
Restricted stock awards vested	98		—		—		—			—		—			—			—			—			—			—
Equity based compensation expense	—		—		—		—			—		—			4,263			—			4,263			—			4,263
Net loss	—		—		—		—			—		—			—			(6,600		)	(6,600		)	(16,066		)	(22,666		)
Balance at June 30, 2018	179,059		$18	18	—		$—	—		204,922		$20	20		$1,498,023	~~1,498,023~~		$(28,044	~~(28,044~~	)	$1,470,017	~~1,470,017~~		$1,939,594	~~1,939,594~~		$3,409,611	~~3,409,611~~
Purchase and retirement of Class A common shares and related sale of SRII Opco Common Units	(3,102	)	—		—		—			—		—			(25,589		)	—			(25,589		)	10,839			(14,750		)
Adjustment to valuation allowance related to prior redemption of noncontrolling interests and Class C common shares for Class A common shares	—		—		—		—			—		—			(468		)	—			(468		)	—			(468		)
Equity-based compensation expense	—		—		—		—			—		—			604			—			604			—			604
Net income	—		—		—		—			—		—			—			6,973			6,973			10,427			17,400
Balance at September 30, 2018	175,957		$	18	—		$	—		204,922		$	20		$	1,472,570		$	(21,071	)	$	1,451,537		$	1,960,860		$	3,412,397

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ALTA toMESA ~~Financial~~RESOURCES, ~~Statements~~INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Successor)

(in thousands)

	Common Stock																Total
	Class A			Class B			Class C				Paid-In			Accumulated			Stockholders’			Noncontrolling			Total
	Shares	Amount		Shares	Amount		Shares		Amount		Capital			Deficit			Equity			Interests			Equity
Balance at January 1, 2019	180,072	$	18	—	$	—	202,170		$	20	$	1,503,382		$	(1,532,813	)	$	(29,393	)	$	245,520		$	216,127
Restricted stock awards vested, net of taxes	338	—		—	—		—		—		67			—			67			(209		)	(142		)
Equity-based compensation expense	—	—		—	—		—		—		2,679			—			2,679			—			2,679
Net loss	—	—		—	—		—		—		—			(8,407		)	(8,407		)	(9,028		)	(17,435		)
Balance at March 31, 2019	180,410	18		—	—		202,170		20		1,506,128			(1,541,220		)	(35,054		)	236,283			201,229
Conversion of commons shares from Class C shares to Class A	2,182	—		—	—		(2,182	)	—		2,756			—			2,756			(2,756		)	—
Conversion of commons shares from Class C shares to Class A shares	2,182	—		—	—		(2,182	)	—		2,756			—			2,756			(2,756		)	—
Restricted stock awards vested, net of taxes	44	—		—	—		—		—		(8		)	—			(8		)	(15		)	(23		)
Equity-based compensation	—	—		—	—		—		—		840			—			840			—			840
Net income	—	—		—	—		—		—		—			2,245			2,245			9,354			11,599
Balance at June 30, 2019	182,636	$18	18	—	$—	—	199,988		$20	20	$1,509,716	~~1,509,716~~		$(1,538,975	~~(1,538,975~~	)	$(29,221	~~(29,221~~	)	$242,866	~~242,866~~		$213,645	~~213,645~~
Restricted stock awards vested, net of taxes	129	—		—	—		—		—		108			—			108			(84		)	24
Equity-based compensation	—	—		—	—		—		—		1,506			—			1,506			—			1,506
Net loss	—	—		—	—		—		—		—			(342,187		)	(342,187		)	(368,458		)	(710,645		)
Balance at September 30, 2019	182,765	$	18	—	$	—	199,988		$	20	$	1,511,330		$	(1,881,162	)	$	(369,794	)	$	(125,676	)	$	(495,470	)

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ toALTA ~~Financial~~MESA ~~Statements~~RESOURCES, INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS’ CAPITAL (Unaudited)

(in thousands)

໿



	Predecessor
Balance, December 31, 2017	$	154,445
Distribution of non-STACK oil and gas assets, net of associated liabilities	43,482
Net loss	(14,862		)
Balance, February 8, 2018	$	183,065

The accompanying notes are an integral part of these financial statements.

Table of Contents

~~Index~~ALTA toMESA ~~Financial~~RESOURCES, ~~Statements~~INC. (Debtor-in-possession)

ALTA MESA RESOURCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 — DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

~~Alta~~Description Mesa Resources, Inc., together with its consolidated subsidiaries (“we” or “the Company”), is an independent exploration and production company focused on the acquisition, development, exploration and production of ~~unconventional~~Business ~~onshore oil~~ and ~~natural~~Business ~~gas~~Combination reserves in the eastern portion of the Anadarko Basin in Oklahoma. We operate in two reportable business segments - Upstream and Midstream. Alta Mesa Holdings, LP (“Alta Mesa”) conducts our Upstream activities and owns our proved and unproved oil and gas properties located in an area of the Anadarko Basin commonly referred to as the STACK. We generate upstream revenue principally by the production and sale of oil, gas and NGLs. We also operate in the Midstream segment through Kingfisher Midstream, LLC (“KFM”). KFM has a gas and oil gathering network, a cryogenic gas processing plant with offtake capacity, field compression facilities and a produced water disposal system in the Anadarko Basin that generate revenue primarily through long-term, fee-based contracts. The KFM midstream assets are integral to our Upstream operations, which we conduct in the same region, and they are strategically positioned to provide similar services to other producers in the area.

WeAlta ~~were~~Mesa ~~originally~~Resources, ~~incorporated~~Inc. in(“AMR”), ~~Delaware~~together inwith ~~November~~its ~~2016~~consolidated assubsidiaries a(“we,” ~~special~~“us,” ~~purpose~~“our” ~~acquisition~~or ~~company under~~ “the ~~name~~Company”), ~~Silver~~is ~~Run~~an ~~Acquisition~~independent ~~Corporation~~exploration IIand ~~for~~production ~~the~~company ~~purpose~~focused ofon ~~effecting~~the ~~a merger, exchange,~~ acquisition, ~~purchase~~development, ~~reorganization~~exploration orand ~~similar~~production ~~business~~of ~~combination~~unconventional ~~involving~~onshore itoil and ~~one~~natural orgas ~~more~~reserves ~~businesses.~~in Onthe ~~February~~eastern 9,portion ~~2018~~of wethe ~~acquired~~Anadarko ~~interests~~Basin in ~~Alta~~Oklahoma. We ~~Mesa,~~operate in two reportable business segments - Upstream and Midstream. Alta Mesa Holdings GP, ~~LLC~~LP (“Alta Mesa GP”) ~~and~~conducts ~~KFM~~our ~~through~~Upstream aactivities ~~newly~~and ~~formed~~owns ~~subsidiary,~~our ~~SRII~~proved ~~Opco,~~and LPunproved ~~(“SRII~~oil ~~Opco”)~~and gas properties located in aan ~~transaction~~area of the Anadarko Basin commonly referred to as the ~~“Business~~STACK. We ~~Combination”,~~generate ~~and~~upstream ~~changed~~revenue ~~our~~principally ~~name~~by ~~from~~the ~~“Silver~~production ~~Run~~and ~~Acquisition~~sale ~~Corporation~~of ~~II”~~oil, togas ~~“Alta~~and ~~Mesa~~NGLs. Kingfisher ~~Resources~~Midstream, ~~Inc.~~LLC (“KFM”) conducts our Midstream operations. AsKFM has a ~~result~~gas ofand ~~our~~oil ~~failure~~gathering tonetwork, ~~comply~~a cryogenic gas processing plant with ~~the~~offtake ~~continued~~capacity, ~~listing~~field ~~requirements~~compression offacilities ~~the~~and ~~NASDAQ~~a ~~Capital~~produced ~~Market~~water ~~(“NASDAQ”),~~disposal ~~trading~~system in ~~our~~the ~~Class~~Anadarko ABasin ~~Common~~that ~~Stock~~generate ~~and~~revenue ~~public~~primarily ~~warrants~~through ~~was~~long-term, ~~suspended~~fee-based oncontracts. The ~~September~~KFM 24midstream assets are vital to our Upstream operations, ~~2019~~which we conduct in the same region, and they are ~~now~~strategically ~~traded~~positioned ~~over~~to ~~the~~provide ~~counter~~similar ~~under~~services ~~the~~to ~~trading~~other ~~symbols~~producers ~~“AMRQQ”~~in ~~and~~the ~~“AMRWQ,” respectively~~area.

We were originally incorporated in Delaware in November 2016 as a special purpose acquisition company under the name Silver Run Acquisition Corporation II for the purpose of effecting a merger, exchange, acquisition, purchase, reorganization or similar business combination involving it and one or more businesses. On February 9, 2018 we acquired interests in Alta Mesa, Alta Mesa Holdings GP, LLC (“Alta Mesa GP”) and KFM through a newly formed subsidiary, SRII Opco, LP (“SRII Opco”) in a transaction referred to as the “Business Combination”, and changed our name from “Silver Run Acquisition Corporation II” to “Alta Mesa Resources, Inc.”

In connection with the closing of the Business Combination, Alta Mesa distributed its non-STACK oil and gas assets and associated liabilities to its prior owner, High Mesa Holdings, LP (“High Mesa”). The non-STACK assets and liabilities are reflected as discontinued operations in the Predecessor portion of our financial statements.

~~All~~As intercompany transactions and accounts have been eliminated. These interim condensed consolidated financial statements are unaudited, but we believe these statements reflect all adjustments necessary for a ~~fair~~result ~~presentation~~ of ~~the~~our ~~periods~~failure ~~reported.~~to ~~All~~comply ~~such adjustments are of a normal, recurring nature unless otherwise disclosed. These financial statements and disclosures have been prepared in accordance~~ with the ~~SEC’s~~continued ~~rules~~listing ~~for~~requirements ~~interim~~of ~~financial statements and do not include all~~ the ~~information~~NASDAQ ~~and~~Capital ~~disclosures~~Market ~~required by generally accepted accounting principles~~ (“~~GAAP~~NASDAQ”), ~~for~~trading ~~complete financial statements. These financial statements should be read~~ in ~~conjunction~~our ~~with~~Class ~~the~~A ~~audited~~Common ~~consolidated~~Stock ~~financial statements~~ and ~~notes~~public ~~thereto~~warrants ~~included~~was insuspended ~~our~~on ~~2018~~September ~~10-K.~~24, ~~The~~2019, ~~results for the three~~ and ~~six~~they ~~months ended June 30, 2019~~ are ~~not~~now ~~necessarily~~traded ~~indicative~~over of the ~~results~~counter tounder ~~be expected for~~ the ~~full~~trading ~~year. We~~symbols ~~have~~“AMRQQ” noand ~~items~~“AMRWQ,” ~~of other comprehensive income during any period presented~~respectively. ~~Certain prior period amounts have been reclassified to conform to the current period presentation.~~

~~NOTE 2 —~~Bankruptcy ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~Accounting

~~Going~~As ~~Concern~~discussed further in Note 3, on September 11, 2019, AMR, Alta Mesa, Alta Mesa GP, OEM GP, LLC, Alta Mesa Finance Services Corp, Alta Mesa Services and Oklahoma Energy Acquisitions, LP (the “AMH Debtors” and together with AMR, the “Debtors”) filed voluntary petitions (“Bankruptcy Petitions”) for relief under Chapter 11 of the U.S. Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). During the pendency of the Chapter 11 proceedings, the Debtors will operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The condensed consolidated financial statements have been prepared as if the Company is a going concern and reflect the application of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that are realized or incurred in the bankruptcy proceedings are recorded in “reorganization items, net” on the Company’s condensed consolidated statements of operations. In addition, prepetition unsecured and under-secured obligations that may be impacted by the bankruptcy reorganization process have been classified as “liabilities subject to compromise” on the Company’s condensed consolidated balance sheet at September 30, 2019. These liabilities are reported at the amounts expected to be allowed as claims by the Bankruptcy Court, although they may be settled for less. The accompanying condensed consolidated financial statements do not purport to reflect or provide for the consequences of the Chapter 11 proceedings. In particular, the condensed consolidated financial statements do not purport to show: (i) the realizable value of assets on a liquidation basis or their availability to satisfy liabilities; (ii) the amount of prepetition liabilities that may be allowed for claims or contingencies, or the status and priority thereof; (iii) the effect on stockholders’ deficit accounts of any changes that may be made to the Company’s capitalization; or (iv) the effect on operations of any changes that may be made to the Company’s business. While operating as debtor-in-possession under Chapter 11 of the Bankruptcy Code, the Company may sell or otherwise dispose of or liquidate

We are required to evaluate our ability to continue as a going concern for a period of one year following the date of issuance of our financial statements. As part of that evaluation, we took into consideration a number of factors that were previously disclosed in our 2018 10-K. Most significantly, we have seen significant reductions to our borrowing base under the Alta Mesa RBL in 2019. On April 1, 2019, our borrowing base under the Alta Mesa RBL was reduced by $30 million to $370.0 million leaving us with no meaningful remaining capacity available thereunder at that time. In August 2019, the Alta Mesa RBL lenders exercised their ability to make an optional redetermination of our borrowing base ahead of the regular redetermination scheduled in October 2019, and via this redetermination our borrowing base was reset to $200.0 million, effective August 13, 2019. As our combined borrowings and letters of credit outstanding exceeded the new borrowing base amount by $162.4 million, we had five months, beginning September 2019, to make ratable monthly payments of $32.5 million to cause utilization to be less than or equal to the borrowing base. Our Upstream business had cash on hand at August 31, 2019 of $63.0 million.

Table of Contents

~~Index~~assets or settle liabilities in amounts other than those reflected on its condensed consolidated financial statements, subject to ~~Financial~~the ~~Statements~~approval of the Bankruptcy Court or otherwise as permitted in the ordinary course of business. Further, a plan of reorganization could materially change the amounts and classifications on the Company’s historical condensed consolidated financial statements.

IfAbility ~~by September 12, 2019, we had not made the first payment of $32.5 million, we would have been in default. Despite taking various actions~~ to ~~decrease~~Continue ~~our~~as indebtedness and maintain our liquidity at sufficient levels to meet our commitments, on September 11, 2019, the Company, Alta Mesa, Alta Mesa GP, OEM GP, LLC, Alta Mesa Finance Services Corp, Alta Mesa Services and Oklahoma Energy Acquisitions, LP (the “AMH Debtors” and together with the Company, the “Debtors”) filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Bankruptcy Court has granted a ~~motion~~Going seeking joint administration of the Chapter 11 cases under the caption In re Alta Mesa Resources, Inc., et. al., Case No. 19-35133. The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Concern

~~Certain~~AMR’s only significant asset is its ownership of a partnership interest in SRII Opco. As such, we have no meaningful cash available to us to meet our obligations apart from cash held by our subsidiaries. In September 2019, KFM received a letter from the ~~Company~~Administrative Agent whereby the lenders under the KFM Credit Facility allege a potential event of default in respect of liens placed on KFM’s ~~other~~assets. The ~~subsidiaries~~Administrative Agent and the lenders have reserved their right to pursue any remedies available to them, including ~~SRII~~charging ~~Opco~~the GPdefault rate of interest, ~~LLC~~declaring any of the outstanding debt thereunder due and payable or foreclosing on, ~~SRII~~or ~~Opco~~instituting foreclosure proceedings against, ~~KFM~~or liquidating any collateral. Although the Administrative Agent and ~~its~~the ~~subsidiaries~~lenders ~~Kingfisher~~have ~~STACK~~not ~~Oil~~taken ~~Pipeline~~any such actions, ~~LLC~~KFM will not have access to the remaining borrowing capacity unless or until this matter is resolved, which could materially impact AMR’s and ~~Oklahoma~~KFM’s ~~Produced~~ability ~~Water~~to ~~Solutions~~meet all financial obligations as they come due and KFM’s ability to make distributions to AMR that otherwise may have been permitted. As a result of Alta Mesa’s bankruptcy and the limitations imposed under a Bankruptcy Court approved cash collateral agreement and alleged defaults under the KFM Credit Facility, ~~LLC~~AMR’s ~~are~~only ~~not~~remaining ~~part~~source of liquidity is through non-debtor subsidiary SRII Opco. At October 31, 2019, SRII Opco had cash on hand of $5.5 million. We also believe that KFM will fail to meet the ~~Chapter~~maintenance 11covenants ~~cases~~of atthe ~~this~~KFM ~~time~~Credit Facility as early as the first quarter of 2020, which would prevent any further borrowings. These factors raise substantial unmitigated doubt about our ability to continue as a going concern.

OnBasis September 12, 2019, the Bankruptcy Court entered various orders requested by the Debtors in order to stabilize their businesses and operations as they entered into Chapter 11 bankruptcy proceedings, including orders authorizing the Debtors to honor certain obligations to employees, vendors, and holders of royalty interests. In addition, the AMH Debtors were authorized by the Bankruptcy Court to use cash collateral of the lenders under the Alta Mesa RBL. The cash collateral order permits the AMH Debtors to use their cash and proceeds of their collateral for an initial four week period on the terms and conditions agreed by the AMH Debtors and the lenders under the Alta Mesa RBL and set forth in the order. The terms and conditions include, without limitation, adherence to a budget with an agreed upon variance and meeting certain milestones. The ability to have continued access to the cash collateral will also be dependent upon the Bankruptcy Court’s approval of future versions of the cash collateral order and the related terms and conditions provided therein. Presentation

~~The~~These ~~Debtors~~financial ~~have~~statements ~~begun~~include athe ~~marketing~~consolidated ~~process~~financial topositions, ~~sell~~results ~~their~~of ~~assets~~operations and cash flows of the Company, ~~which~~the ~~may~~AMH ~~also~~Debtors ~~include~~and ~~KFM’s~~our ~~midstream~~non-debtor ~~assets~~subsidiaries, which are controlled by us. ~~Certain~~All ofintercompany ~~the~~transactions ~~AMH~~and ~~Debtors~~accounts have ~~also~~been ~~filed~~eliminated. These interim condensed consolidated financial statements are unaudited, but we believe these statements reflect all adjustments necessary for a ~~complaint~~fair ~~seeking~~presentation of the periods reported. All such adjustments are of a ~~Bankruptcy~~normal, ~~Court~~recurring ~~determination~~nature ~~that~~unless otherwise disclosed. These financial statements and disclosures have been prepared in accordance with the ~~crude~~SEC’s ~~oil,~~rules ~~gas,~~for interim financial statements and ~~water~~do ~~gathering~~not ~~agreements~~include ~~between~~all ~~Debtor~~the ~~Oklahoma~~information ~~Energy~~and ~~Acquisitions~~disclosures ~~LP,~~required anby ~~Alta~~generally ~~Mesa~~accepted ~~subsidiary,~~accounting principles (“GAAP”) for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and ~~non~~notes thereto included in our 2018 10-~~Debtors~~K. ~~KFM~~The results for the three and ~~its~~nine ~~subsidiaries~~months ~~can~~ended September 30, 2019 are not necessarily indicative of the results to be ~~rejected~~expected byfor the ~~Debtors~~full year. We have no items of other comprehensive income during any period presented. Certain prior period amounts have been reclassified to conform to the current period presentation.

WeNOTE 2 — ~~have~~SUMMARY noOF ~~meaningful~~RECENTLY ~~cash~~ISSUED ~~available~~ACCOUNTING toSTANDARDS usAPPLICABLE toTO meet our obligations apart from cash held by our subsidiaries. As a result of Alta Mesa’s bankruptcy and the limitations imposed under the approved cash collateral agreement, our only remaining source of liquidity is through KFM and SRII Opco. At August 31, 2019, SRII Opco had cash on hand of $5.7 million and KFM had cash on hand of $13.3 million, as well as remaining borrowing capacity of $74.0 million. Access to the remaining capacity under the KFM Credit Facility requires adherence to the terms and covenant compliance on a pro forma basis for any new borrowings. We believe that KFM will exhaust its borrowing capacity and fail to meet the maintenance covenants as early as the first quarter of 2020. On September 23, 2019, KFM received a letter from the Administrative Agent whereby the lenders under the KFM Credit Facility allege a potential event of default in respect of liens placed on KFM’s assets. Accordingly, we may not have access to the remaining borrowing capacity unless or until this matter is resolved, which could materially impact our ability to meet our financial obligations. These factors raise substantial unmitigated doubt about our ability to continue as a going concern. US

Recently Issued Accounting Standards Applicable to Us

Adopted

Effective January 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires that lessees recognize a lease liability, which is a lessee’s discounted obligation to make payments under a lease, and a right-of-use asset, arising from a lessee’s right to use an asset over the lease term. Upon adoption, we used the modified retrospective method to apply the standard as of January 1, 2019 for existing leases with terms in excess of 12 months entered into prior to January 1, 2019.

Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard requires the use of a new “expected credit loss” impairment model rather than the “incurred loss” model we use today. With respect to our trade and notes receivables and certain other financial instruments, we may be required to (i) maintain and use lifetime loss information rather than annual loss data, (ii) forecast future economic conditions and quantify the effect of those conditions on future expected losses and (iii) provide additional disclosures regarding the credit quality of our trade and notes receivables and other financial instruments. Based on a tentative decision by the FASB, we expect this standard, including related amendments, will be effective for us beginning January 2023. No determination has yet been made of the impact of this new standard on our financial position or results of operations.

Table of Contents

~~Index~~In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The amendments in this standard align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to ~~Financial~~develop ~~Statements~~or obtain internal use software (and hosting arrangements that include an internal-use software license). Under this new standard, a customer in a hosting arrangement that is a service contract is required to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as a prepaid asset related to the service contract and which costs to expense. The capitalized implementation costs are to be expensed over the term of the hosting arrangement and reflected in the same line in the consolidated statement of operations as the fees associated with the hosting element of the arrangement. Similarly, capitalized implementation costs are to be presented in the statement of cash flows in the same line as payments made for fees associated with the hosting element. We will adopt this new standard no earlier than January 1, 2020, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial position and results of operations and expect to apply the new standard prospectively to implementation costs incurred after the date of adoption.

we may be required to (i) maintain and use lifetime loss information rather than annual loss data and (ii) forecast future economic conditions and quantify the effect of those conditions on future expected losses. The standard, including related amendments, which will be effective for us no earlier than January 2020, also requires additional disclosures regarding the credit quality of our trade and notes receivables and other financial instruments. No determination has yet been made of the impact of this new standard on our financial position or results of operations.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The amendments in this standard align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal-use software license). Under this new standard, a customer in a hosting arrangement that is a service contract is required to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as a prepaid asset related to the service contract and which costs to expense. The capitalized implementation costs are to be expensed over the term of the hosting arrangement and reflected in the same line in the consolidated statement of operations as the fees associated with the hosting element of the arrangement. Similarly, capitalized implementation costs are to be presented in the statement of cash flows in the same line as payments made for fees associated with the hosting element. We will adopt this new standard no earlier than January 1, 2020, although early adoption is permitted. We are currently evaluating the impact of this new standard on our consolidated financial position and results of operations and have not yet determined whether to apply the new standard retrospectively or prospectively to implementation costs incurred after the date of adoption.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements of fair value measurements. ASU 2018-13 is effective for us no earlier than January 2020. Certain disclosures are required to be applied on a retrospective basis and others on a prospective basis. We do not expect the adoption of this standard to impact our financial position or results of operations.

NOTE 3 —- ~~ADOPTION~~CHAPTER OF11 ~~ASU NO. 2016-02, LEASES~~PROCEEDINGS

Voluntary Reorganization Under Chapter 11

On September 11, 2019, the Debtors filed the Bankruptcy Petitions for reorganization under the Bankruptcy Code in the Bankruptcy Court. The Bankruptcy Court has granted a motion seeking joint administration of the Chapter 11 cases under the caption In re Alta Mesa Resources, Inc., et. al., Case No. 19-35133. The Debtors continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code.

Certain of the Company’s other subsidiaries, including SRII Opco GP, LLC, SRII Opco, KFM and its subsidiaries, Kingfisher STACK Oil Pipeline, LLC and Oklahoma Produced Water Solutions, LLC, (together the “non-Debtors”) are not in bankruptcy or otherwise part of the Chapter 11 cases at this time.

Subject to certain exceptions, under the Bankruptcy Code, the filing of the Bankruptcy Petitions automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to recover, collect or secure a claim arising prior to the date of the Bankruptcy Petitions. Accordingly, although the filing of the Bankruptcy Petitions triggered defaults on the AMH Debtors’ debt obligations, the creditors are stayed from taking any actions against the AMH Debtors as a result of such defaults, subject to certain limited exceptions provided by the Bankruptcy Code. Absent an order of the Bankruptcy Court, substantially all of the AMH Debtors’ prepetition liabilities are subject to compromise under the Bankruptcy Code.

Initial Orders and Other Filings

On September 12, 2019, the Bankruptcy Court entered various orders requested by the Debtors in order to stabilize their businesses and operations as they entered into Chapter 11 bankruptcy proceedings, including orders authorizing the Debtors to honor certain obligations to employees, vendors, and holders of royalty interests. In addition, the AMH Debtors have been authorized by the Bankruptcy Court to use cash collateral of the lenders under the Alta Mesa RBL. The current cash collateral order permits the AMH Debtors to use their cash and proceeds of their collateral until November 21, 2019 on the terms and conditions agreed by the AMH Debtors and their creditors (including the lenders under the Alta Mesa RBL) as set forth in the order. The terms and conditions include, without limitation, adherence to a budget with an agreed upon variance and meeting certain other milestones related to sale of the Debtor assets. The continued access to the cash collateral will also be dependent upon the Bankruptcy Court’s approval of future versions of the cash collateral order and the related terms and conditions provided therein.

On September 27, 2019, the United States Trustee for the Southern District of Texas appointed an official committee of unsecured creditors. On October 18, 2019, the Debtors filed schedules and statements with the Bankruptcy Court setting forth,

Table of Contents

among other things, the assets and liabilities of the Debtors, subject to the assumptions filed in connection therewith. The schedules and statements may be subject to further amendment or modification after filing. Except as otherwise provided by the Bankruptcy Court, proofs of prepetition claims, including those arising from subsequent rejection of executory contracts and unexpired leases, must be on file by December 9, 2019, or by March 9, 2020, in the case of claims by governmental units. Differences between amounts scheduled by the Debtors and claims by creditors will be evaluated and resolved in connection with the claims resolution process.

The Debtors are in a marketing process to sell their assets along with KFM’s midstream assets. On October 11, 2019, the Bankruptcy Court entered an order approving, among other things, proposed bidding procedures and the dates for an auction, a hearing to approve the sale or sales of assets, and related dates and deadlines. The auction is scheduled to occur on January 8, 2020 and the sale hearing is scheduled to occur on January 10, 2020. Both of the scheduled dates are subject to postponement.

Certain of the AMH Debtors have also filed a complaint seeking a Bankruptcy Court determination that (i) the crude oil, gas, and water gathering agreements between Debtor Oklahoma Energy Acquisitions and non-Debtors KFM and its subsidiaries can be rejected by the Debtors, (ii) certain amendments to the crude oil and gas gathering agreements were constructive and actual fraudulent transfers, (iii) the crude oil and gas gathering agreements are subject to rescission as the products of breaches of fiduciary duty, and (iv) KFM and its subsidiaries materially breached the crude oil gathering agreement and that the agreement is therefore terminated. On October 25, 2019, the plaintiff AMH Debtors filed an amended complaint naming only KFM and Oklahoma Produced Water Solutions, LLC as Defendants. On November 4, 2019, the plaintiff AMH Debtors provided notice of alleged events of default under the crude oil and gas gathering agreements and reserved their rights and remedies, including termination of those agreements. The plaintiff AMH Debtors have also submitted a motion to file a second amended complaint to include these events of default allegations. The litigation is set for trial on December 9, 2019.

Liabilities Subject to Compromise

Liabilities subject to compromise represent the Debtors’ prepetition liabilities that have been allowed or that the Debtors anticipate will be allowed as claims in its Chapter 11 cases. The amounts represent the Debtors’ current estimate of known or potential obligations to be resolved in connection with the Chapter 11 proceedings. The differences between the liabilities the Debtors has estimated and the claims filed, or to be filed, will be evaluated and resolved in connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 proceedings and adjust as necessary.

Following are the components of liabilities subject to compromise included on the condensed consolidated balance sheet:



(in thousands)	September 30, 2019
2024 Notes	$	500,000
Accounts payable and accrued liabilities	21,670
Accrued interest payable on 2024 Notes	9,515
Operating lease liabilities	1,996
Liabilities subject to compromise	$	533,181

Reorganization Items

The Company has incurred and is expected to continue to incur significant costs associated with the bankruptcy. These costs, which are expensed as incurred, are expected to significantly affect the Company’s results of operations. Reorganization items represent costs and income directly associated with the Chapter 11 proceedings since the Petition Date and also includes adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments are determined.

Following are the components of reorganization items, net included in our Condensed Consolidated Statements of Operations:

Table of Contents



(in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Unamortized deferred financing fees and premiums	$	24,748		$	24,748
Terminated contracts	394			394
Legal and other professional advisory fees	(2,675		)	(2,675		)
Reorganization items, net	$	22,467		$	22,467

Interest Expense

Subject to certain exceptions, under the Bankruptcy Code, the filing of Bankruptcy Petitions automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to cover, collect or secure a claim arising prior to the Petition Date. Absent an order of the Bankruptcy Court, substantially all of the Debtors’ prepetition liabilities are subject to settlement under the Bankruptcy Code. Although the filing of Bankruptcy Petitions triggered defaults on the Debtors’ debt obligations, creditors are stayed from taking any actions against the Debtors as a result of such defaults, subject to certain limited exceptions permitted by the Bankruptcy Code. The Company did not record interest expense on its 2024 Notes for the period September 12, 2019 through September 30, 2019. For that period, the unrecorded contractual interest was approximately $2.0 million.

Executory Contracts

Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, assign or reject certain executory contracts subject to the approval of the Bankruptcy Court and fulfillment of certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a prepetition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors of performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to prepetition general unsecured claim for damages caused by such deemed breach. Counterparties to such rejected contracts or leases may assert unsecured claims in the Bankruptcy Court against the applicable Debtors’ estate for damages. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with any of the Debtors in this Quarterly Report on Form 10-Q, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease with the applicable Debtor, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Further, nothing herein is or shall be deemed an admission with respect to any claim amounts or calculations arising from the rejection of any executory contract or unexpired lease and the Debtors expressly preserve all of their rights with respect thereto.

On September 26, 2019, the Bankruptcy Court approved our request to reject an office lease extending through November 2023. Pursuant to this rejection, we de-recognized the right-of-use asset and liability, which resulted in a gain of $0.4 million (included in reorganization items, net). In October 2019, an additional lease and other less significant contracts were also rejected by the Bankruptcy Court. Pursuant to this rejection, we reported the corresponding current and long-term lease liability as liabilities subject to compromise at September 30, 2019.

Table of Contents

Condensed Combined Financial Information of Debtors

Combined Statement of Operations (Unaudited)



(in thousands)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Revenue
Oil	$	84,010		$	261,041
Natural gas	10,788			41,622
Natural gas liquids	8,333			29,800
Other	302			1,200
Operating revenue	103,433			333,663
Gain on sale of assets	—			1,483
Loss on derivatives	(379		)	(11,744		)
Total revenue	103,054			323,402
Operating expenses
Lease operating	18,071			62,302
Transportation and marketing	17,561			54,936
Production taxes	4,673			15,273
Workovers	757			1,366
Exploration	40,847			46,190
Depreciation, depletion and amortization	33,407			102,586
Impairment of assets	387,721			394,221
General and administrative	19,781			62,869
Total operating expenses	522,818			739,743
Operating income	(419,764		)	(416,341		)
Other income (expenses)
Interest expense	(12,233		)	(39,134		)
Interest income	45			126
Reorganization items, net	22,467			22,467
Total other income (expense), net	10,279			(16,541		)
Loss from continuing operations before income taxes	(409,485		)	(432,882		)
Net loss	$	(409,485	)	$	(432,882	)

Table of Contents

Combined Balance Sheet (Unaudited)



(in thousands)	September 30, 2019
ASSETS
Current assets
Cash and cash equivalents	$	58,143
Restricted cash	951
Accounts receivable, net	55,666
Other receivables	1,171
Related party receivables, net	17,419
Note receivables from related parties, net	—
Prepaid expenses and other current assets	6,948
Total current assets	140,298
Property and equipment, net
Oil and gas properties, successful efforts method	365,343
Other property and equipment	36,818
Total property and equipment, net	402,161
Other assets
Investment in subsidiary	1,504,147
Operating lease right-of-use assets, net	7,113
Deposits and other long-term assets	6,171
Total other assets	1,517,431
Total assets	$	2,059,890

LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Current portion of debt	$	340,004
Accounts payable and accrued liabilities	51,722
Accounts payable - related parties	18,301
Advances from non-operators	619
Advances from related party	2,607
Asset retirement obligations, current portion	74
Current operating lease liability	650
Total current liabilities	413,977
Long-term liabilities
Asset retirement obligations, net of current portion	12,717
Operating lease liabilities, net of current portion	10,569
Total long-term liabilities	23,286
Liabilities subject to compromise	533,181
Total liabilities	970,444
Partners’ capital	1,089,446
Total liabilities and partners’ capital	$	2,059,890

Table of Contents

Combined Statement of Cash Flows (Unaudited)



(in thousands)	Nine Months Ended September 30, 2019
Cash flows from operating activities:
Net loss	$	(432,882	)
Adjustments to reconcile net loss to cash from operating activities:
Depreciation, depletion and amortization	102,586
Non-cash lease expense	2,216
Provision for uncollectible receivables	1,139
Impairment of assets	394,221
Non-cash reorganization items, net	(25,142		)
Amortization of deferred financing costs	195
Amortization of debt premium	(3,432		)
Equity-based compensation expense	4,453
Non-cash exploration expense	40,245
(Gain) loss on derivatives	11,744
Cash settlements of derivatives	7,642
Cash paid for derivatives	(1,906		)
Impact on cash from changes in:
Accounts receivable	12,441
Other receivables	5,097
Related party receivables	3,826
Prepaid expenses and other assets	(12,127		)
Advances from related party	(7,215		)
Settlement of asset retirement obligations	(180		)
Accounts payable, accrued liabilities and other liabilities	8,494
Operating lease obligations	(2,151		)
Cash from operating activities	109,264
Cash flows from investing activities:
Capital expenditures	(243,709		)
Distribution received from subsidiary	691
Cash from investing activities	(243,018		)
Cash flows from financing activities:
Proceeds from long-term debt borrowings	183,500
Repayments of long-term debt	(4,496		)
Payment of taxes withheld on equity-based compensation awards	(141		)
Cash from financing activities	178,863
Net increase in cash, cash equivalents and restricted cash	45,109
Cash, cash equivalents and restricted cash, beginning of period	13,985
Cash, cash equivalents and restricted cash, end of period	$	59,094

Table of Contents

NOTE 4 — IMPAIRMENT OF ASSETS



	Successor								Predecessor
(in thousands)	Three Months Ended September 30, 2019		Three Months Ended September 30, 2018		Nine Months Ended September 30, 2019		February 9, 2018 Through September 30, 2018		January 1, 2018 Through February 8, 2018
Upstream
Impairment of proved properties	$	387,721	$	—	$	387,721	$	—	$	—
Impairment of operating lease right-of-use assets	—		—		6,500		—		—
Total Upstream impairment of assets	387,721		—		394,221		—		—
Midstream
Impairment of property and equipment	303,402		—		303,402		—		—
Total Midstream impairment of assets	303,402		—		303,402		—		—

Total impairment of assets	$	691,123	$	—	$	697,623	$	—	$	—

Impairment of Proved Properties

AMR and the AMH Debtors filed for bankruptcy protection in September 2019. As a result, our ability to incur the levels of spending necessary to continue to develop our properties has been significantly restricted. This has negatively impacted our future drilling plans and our expectations regarding production levels from our properties. As a result, we conducted an assessment of impairment and recognized impairment expense for our proved properties at September 30, 2019. In determining the amount of impairment for our properties, we utilized future expected cash flows from those properties (a Level 3 input), discounted at a market participant rate to estimate fair value.

Impairment of Operating Lease Right-of-Use Assets

During the second quarter of 2019, we consolidated employees in existing leased office space in Houston, Texas and Oklahoma City, Oklahoma. We sought to sublease the unused office space within three buildings but we were unable to fully recover the cash due to the lessor under the existing operating lease obligations in those three buildings with proceeds from subleases. As a result, we recognized a $6.5 million impairment of our existing right-of-use lease assets in those buildings during the three months ended June 30, 2019. This impairment had no impact to our lease liability.

Impairment of Midstream Property and Equipment

The majority of the oil, gas and produced water volumes gathered and processed by our Midstream segment arise from our Upstream segment. Due to the factors mentioned above, the volumes gathered and processed by our Midstream segment are expected to decline, resulting in reduced throughput and value of our Midstream assets. Accordingly, we conducted an assessment of impairment and recognized impairment expense for our Midstream property and equipment at September 30, 2019. In determining the amount of impairment for our Midstream property and equipment, we utilized future expected cash flows from those assets (a Level 3 input), discounted at a market participant rate to estimate fair value.

NOTE 5 — ADOPTION OF ASU NO. 2016-02, LEASES

ASU No. 2016-02 requires us to recognize a right-of-use (“ROU”) asset and a discounted lease liability on our balance sheet for all leases with a term longer than one year. We adopted ASU No. 2016-02 and related guidance using the modified retrospective method as of January 1, 2019, and this adoption had no effect on the earlier comparative periods presented. At adoption, we recognized operating lease ROU assets and operating lease liabilities totaling $15.4 million each. There was no adjustment to beginning retained earnings.

We lease office space, office equipment and field equipment, including compressors. Many of our leases include both lease and non-lease components which are primarily management services performed by the lessors for the underlying assets. All of our leases of office space and office equipment were classified as operating leases upon adoption. Our leases of field equipment had remaining terms of less than one year at the date of adoption and were not recognized as operating leases on our balance sheet due to our election of the short term lease practical expedient described below. Our leases do not contain any residual value guarantees or restrictive covenants. We do not currently sublease any of our ROU assets, although we may sublease our unused office lease space in the future.

Table of Contents

remaining terms of less than one year at the date of adoption and were not recognized as operating leases on our balance sheet due to our election of the short term lease practical expedient described below. Our leases do not contain any residual value guarantees or restrictive covenants. We do not currently sublease any of our ROU assets, although we may sublease our unused office lease space in the future.

Operating fixed lease expenses are recognized on a straight-line basis over the lease term. Variable lease payments, which cannot be determined at the lease commencement date, are not included in ROU assets or lease liabilities and are expensed as incurred.

Upon adoption, we selected the following practical expedients:

Table of Contents

Index to Financial Statements



Practical expedient package		We did not reassess whether any expired or existing contracts are, or contain, leases.
		We did not reassess the lease classification of any expired or existing leases.
		We did not reassess initial direct costs of any expired or existing leases.

Hindsight practical expedient		We did not elect to use the hindsight practical expedient which allows for the use of hindsight when determining lease term, including option periods, and impairment of operating assets.

Easement expedient		We elected to maintain the current accounting treatment of existing contracts and not reassess whether those contracts met the definition of a lease.

Combining lease and non-lease components expedient		We elected to account for lease and non-lease components as a single component.

Short-term lease expedient		We elected the short-term lease recognition exemption for all classes of underlying assets. Expense for short-term leases is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that is reasonably certain to be recognized are not recorded on the balance sheet.

As most leases do not have readily determinable implicit rates, we estimated the incremental borrowing rates for our future lease payments based on prevailing financial market conditions at the later of date of adoption or lease commencement, credit analysis of comparable companies and management judgments to determine the present values of our lease payments. We also apply the portfolio approach to account for leases with similar terms. At ~~June~~September 30, 2019, the weighted-average remaining lease term of our operating leases was approximately 8.13 years and the weighted-average discount rate applied was 14.35%.

Lease Costs

(in thousands)	Three Months ~~EndedJune~~EndedSeptember 30, 2019		~~Six~~Nine Months Ended ~~June~~September 30, 2019
Operating lease cost	$	~~828~~668	$	12,~~675~~343
Variable lease cost	~~478~~210		~~849~~1,059
Short-term lease cost	~~1,071~~422		34,~~686~~072
Total lease cost	$	21,~~377~~300	$	67,~~210~~474
Reported in:
Lease operating expense	$	~~1,029~~378	$	34,~~675~~016
General and administrative expense	~~1,348~~922		23,~~535~~458
Total lease cost	$	21,~~377~~300	$	67,~~210~~474

1218

Table of Contents

~~Index~~Remaining toOperating ~~Financial~~Lease ~~Statements~~Liability Payments as of September 30, 2019

Operating Lease Liability Maturities as of June 30, 2019



Fiscal year	(in thousands)
Remainder of 2019	$	649
2020	2,614
2021	2,581
2022	2,713
2023	2,718
Thereafter	12,647
Total lease payments	23,922
Less: imputed interest	(10,409		)
Less: reclassification to liabilities subject to compromise	(1,996		)
Present value of operating lease liabilities not subject to compromise	$	11,517

Current portion of operating lease liabilities	$	736
Operating lease liabilities, net of current portion	10,781
Present value of operating lease liabilities not subject to compromise	$	11,517

Fiscal year	(in thousands)
Remainder of 2019	$	1,528
2020	3,081
2021	3,048
2022	3,108
2023	2,718
Thereafter	12,647
Total lease payments	26,130
Less: imputed interest	(11,150		)
Present value of operating lease liabilities	$	14,980
Current portion of operating lease liabilities	$	1,018
Operating lease liabilities, net of current portion	13,962
Present value of operating lease liabilities	$	14,980

As described further in our 2018 10-K, our minimum future contractual lease payments under ASC 840 at December 31, 2018 were $2.8 million for 2019, $2.9 million for 2020, $2.9 million for 2021, $3.1 million for 2022, $3.0 million for 2023 and $12.2 million thereafter.

~~Right~~NOTE 6 -~~of-Use~~ ~~Asset~~EARNINGS ~~Impairment~~(LOSS) PER SHARE

We also expect to attempt to reject certain of the leases pursuant to our Bankruptcy filing which could decrease our lease liability if we are successful with the rejection.

NOTE 4 - EARNINGS (LOSS) PER SHARE

The following table reflects the net income attributable to common stockholders and earnings per share for the periods indicated based on a weighted average number of common shares outstanding for the period:

1319

Table of Contents

Index to Financial Statements



	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018		Nine Months Ended September 30, 2019			February 9, 2018 Through September 30, 2018
	(in thousands, except shares and per share data)
Net income (loss) attributable to AMR Class A common stockholders	$	(342,187	)	$	6,973	$	(348,349	)	$	(12,957	)
Effect of dilutive Class C securities:
Net loss attributable to noncontrolling interests assumed to be redeemed for Class A Common Stock, net of tax	—			4,869		—			(5,227		)
Net income (loss) attributable to AMR Class A common stockholders after assumed redemption	$	(342,187	)	$	11,842	$	(348,349	)	$	(18,184	)

Weighted average Class A common shares outstanding (Basic)	182,716,273			178,078,132		181,250,401			174,364,715
Effect of dilutive securities:
Class A shares assumed issued to holders of noncontrolling interests upon redemption	—			132,428,358		—			59,006,903
Restricted stock and stock options	—			31,342		—			—
Weighted average common shares outstanding (Diluted)	182,716,273			310,537,832		181,250,401			233,371,618

Income (loss) per common share attributable to AMR common stockholders:
Basic	$	(1.87	)	$	0.04	$	(1.92	)	$	(0.07	)
Diluted	$	(1.87	)	$	0.04	$	(1.92	)	$	(0.08	)

	Three Months EndedJune 30, 2019		Three Months EndedJune 30, 2018			Six Months EndedJune 30, 2019			February 9, 2018ThroughJune 30, 2018
	(in thousands, except shares and per share data)
Net income (loss) attributable to AMR Class A common stockholders	$	2,245	$	(6,600	)	$	(6,162	)	$	(19,930	)
Effect of dilutive Class C securities:
Net loss attributable to noncontrolling interests assumed to be redeemed for Class A Common Stock, net of tax	—		(2,157		)	—			(4,914		)
Net income (loss) attributable to AMR Class A common stockholders after assumed redemption	$	2,245	$	(8,757	)	$	(6,162	)	$	(24,844	)
Weighted average Class A common shares outstanding (Basic)	180,742,049		173,345,982			180,505,318			171,908,486
Effect of dilutive securities:
Class A shares assumed issued to holders of noncontrolling interests upon redemption	—		34,619,947			—			36,204,221
Weighted average common shares outstanding (Diluted)	180,742,049		207,965,929			180,505,318			208,112,707
Income (loss) per common share attributable to AMR common stockholders:
Basic	$	0.01	$	(0.04	)	$	(0.03	)	$	(0.12	)
Diluted	$	0.01	$	(0.04	)	$	(0.03	)	$	(0.12	)

NOTE 7 — SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 5 — SUPPLEMENTAL CASH FLOW INFORMATION



	Successor						Predecessor
(in thousands)	Nine Months Ended September 30, 2019			February 9, 2018 Through September 30, 2018			January 1, 2018 Through February 8, 2018
Supplemental cash flow information:
Cash paid for interest	$	35,866		$	24,950		$	1,145
Cash paid for income taxes, net of refunds	706			1,573			—
Non-cash investing and financing activities:
Increase in asset retirement obligations	831			4,652			—
Increase (decrease) in accruals or payables for capital expenditures	(147,756		)	41,069			4,896
Distribution of non-STACK assets, net of liabilities	—			—			43,482
Equity issued in Business Combination	—			2,067,393			—
Release of common stock from possible redemption	—			966,384			—
Tax effect of redemption of noncontrolling interests in SRII Opco for Class A common shares and other	—			(905		)	—
Increase in accounts receivable for sale of assets	—			(524		)	—

	Successor						Predecessor
(in thousands)	Six Months EndedJune 30, 2019			February 9, 2018ThroughJune 30, 2018			January 1, 2018ThroughFebruary 8, 2018
Supplemental cash flow information:
Cash paid for interest	$	29,513		$	22,996		$	1,145
Cash paid for income taxes, net of refunds	706			1,573			—
Non-cash investing and financing activities:
Increase in asset retirement obligations	634			877			—
Increase (decrease) in accruals or payables for capital expenditures	(127,875		)	(25,798		)	4,896
Increase in withholding tax accruals for share-based compensation	165			—			—
Distribution of non-STACK assets, net of liabilities	—			—			43,482
Equity issued in Business Combination	—			2,067,393			—
Release of common stock from possible redemption	—			966,384			—
Tax effect of redemption of noncontrolling interests in SRII Opco for Class A common shares and other	—			(437)			—

We aggregate cash, cash equivalents and restricted cash in the statements of cash flows.

໿

14NOTE 8 — RECEIVABLES

Table of Contents

Index to Financial Statements

NOTE 6 — RECEIVABLES

Accounts Receivable

(in thousands)	~~June~~September 30, 2019			December 31, 2018
Production and processing sales and fees	$	4140,~~844~~348		$	51,004
Joint interest billings	2017,~~836~~411			18,147
Pooling interest (1)	118,~~506~~974			18,786
Allowance for doubtful accounts	(~~410~~347		)	(95		)
Total accounts receivable, net	$	7366,~~776~~386		$	87,842

_________________


(1)	Pooling interest relates to Oklahoma’s forced pooling process which permits mineral interest owners the option to participate in the drilling of proposed wells. The pooling interest listed above represents unbilled costs for wells where the option remains pending. Depending upon the mineral owner’s decision, these costs will be billed to them or added to oil and gas properties.

Related Party Receivables

(in thousands)	~~June~~September 30, 2019			December 31, 2018
Related party receivables	$	12,~~197~~135		$	12,375
Allowance for doubtful accounts	(912,~~887~~135		)	(9,034		)
Related party receivables, net	~~2,310~~—			3,341
Notes receivable from related parties	13,403			13,403
Allowance for doubtful accounts	(13,403		)	(13,403		)
Notes receivable from related parties, net	—			—
Related party receivables, net	$	~~2,310~~—		$	3,341

Table of Contents

At December 31, 2018, we had a receivable of $2.3 million from KFM’s former owner, KFM Holdco, LLC (“KFM Holdco”), relating to transaction costs paid on KFM Holdco’s behalf before the Business Combination. During the third quarter 2019, we fully reserved this receivable based upon our assessment regarding collectibility. We have filed suit against KFM Holdco to seek payment for this receivable.

Management Services Agreement with High Mesa

(in thousands)	~~June~~September 30, 2019
High Mesa related party receivable at December 31, 2018	$	10,066
Additions	~~894~~832
Payments	(1,073		)
High Mesa related party receivable at June 30, 2019	9,887
High Mesa related party receivable at September 30, 2019	9,825
Allowance for uncollectibility(1)	(9,~~887~~825		)
Balance at June 30, 2019, net	$	—
Balance at September 30, 2019, net	$	—

_________________


(1)	$9.0 million of the allowance was recognized during the 2018 Successor Period.

Our management services agreement with HMI (“the High Mesa Agreement”) was terminated effective January 31, 2019. Through April 1, 2019, we were obligated to take all actions that HMI reasonably requested to effect the transition of the services to a successor service provider. During the transition period, HMI agreed to pay us (i) for all services performed, (ii) an amount equal to our costs and expenses incurred in connection with providing the services as provided for in the approved budget and (iii) an amount equal to our costs and expenses reimbursable pursuant to the High Mesa Agreement. As of ~~June~~September 30, 2019, and December 31, 2018, approximately $9.98 million and $10.1 million, respectively, were due from HMI for reimbursement of costs and expenses which are recorded as “Related party receivables, net” in the balance sheets. HMI has disputed certain of the amounts we billed. We are pursuing remedies under applicable law in connection with repayment of this receivable. There is no guarantee that HMI will pay the amounts it owes. In addition, our ability to collect these amounts or future amounts that may become due pursuant to indemnification obligations may be adversely impacted by liquidity and solvency issues at HMI. As a result of these circumstances, we have recognized an allowance for uncollectible accounts of $9.8 million and $9.0 million as of September 30, 2019 and December 31, 2018, respectively, to fully provide for the unremitted balances. We may also be subject to future contingent liabilities for the non-STACK assets for which we should have been indemnified, including liabilities associated with litigation relating to the non-STACK assets. As of September 30, 2019 and December 31, 2018, we have established no liabilities for contingent obligations associated with non-STACK assets owned by High Mesa.

Table of Contents

Index to Financial Statements

million and $9.0 million as of June 30, 2019 and December 31, 2018, respectively, to fully provide for the unremitted balances. We may also be subject to future contingent liabilities for the non-STACK assets for which we should have been indemnified, including liabilities associated with litigation relating to the non-STACK assets. As of June 30, 2019 and December 31, 2018, we have established no liabilities for contingent obligations associated with non-STACK assets owned by High Mesa.

Promissory notes receivable

High Mesa Services, LLC (“HMS”), a subsidiary of HMI, defaulted under the terms of a promissory note with us when it did not pay us on February 28, 2019, and HMS has failed to cure such default. We subsequently declared all amounts owed under the note immediately due and payable and we have fully reserved the promissory note balance, including interest paid-in-kind, totaling $1.7 million as of ~~June~~September 30, 2019 and December 31, 2018.

In addition, we have a note receivable from HMS which matures on December 31, 2019, and bears interest at 8% per annum, which may be paid-in-kind and added to the principal amount. HMI disputes its obligations under the note. As of ~~June~~September 30, 2019, and December 31, 2018, the note receivable balance, including interest paid-in-kind, amounted to $11.7 million, for each respective period. This balance was fully reserved at the end of both periods.

We oppose HMI’s claims and believe HMI’s obligations under the notes to be valid assets and that the full amount is payable to us. We are pursuing remedies under applicable law in connection with repayment of the promissory notes. As a result of the potential conflict of interest from certain of AMR’s directors who are also controlling holders of HMI, AMR’s disinterested directors will address any potential conflicts of interest with respect to this matter.

~~NOTE 7 — PROPERTY AND EQUIPMENT~~21

(in thousands)	June 30, 2019			December 31, 2018
Oil and gas properties
Unproved properties	$	76,665		$	74,217
Proved oil and gas properties	2,196,605			2,110,346
Accumulated depletion and impairment	(1,489,191		)	(1,421,226		)
Proved oil and gas properties, net	707,414			689,120
Total oil and gas properties, net	784,079			763,337
Other property and equipment
Land	5,600			5,600
Fresh water wells	27,373			27,366
Produced water disposal system	106,467			104,498
Gas processing plant and gathering lines	412,193			380,470
Office furniture, equipment and vehicles	3,755			3,703
Accumulated depreciation and impairment	(84,841		)	(77,368		)
Other property and equipment, net	470,547			444,269
Total property and equipment, net	$	1,254,626		$	1,207,606

Table of Contents

~~Index~~NOTE 9 — toPROPERTY ~~Financial~~AND ~~Statements~~EQUIPMENT



(in thousands)	September 30, 2019			December 31, 2018
Oil and gas properties
Unproved properties	$	816,858		$	816,282
Accumulated impairment of unproved properties	(782,287		)	(742,065		)
Unproved properties, net	34,571			74,217
Proved oil and gas properties	2,240,337			2,110,346
Accumulated depletion and impairment	(1,909,565		)	(1,421,226		)
Proved oil and gas properties, net	330,772			689,120
Total oil and gas properties, net	365,343			763,337
Other property and equipment
Land	5,600			5,600
Fresh water wells	27,373			27,366
Produced water disposal system	108,422			104,498
Gas processing plant and gathering lines	413,793			380,470
Office furniture, equipment and vehicles	3,687			3,703
Accumulated depreciation and impairment	(392,300		)	(77,368		)
Other property and equipment, net	166,575			444,269
Total property and equipment, net	$	531,918		$	1,207,606

During the third quarter, we recognized a charge of $11.2 million as exploration expense to reduce unproved properties for third and fourth quarter 2019 expirations of leased acreage. As a significant portion of these expirations were located in Major County, we determined that, given limited availability of development capital, our intent was to continue to let leased acreage in Major County expire in the normal course, thus abandoning development of Major County. As such, we recorded an additional charge as exploration expense for all remaining acreage in Major County totaling $28.8 million.

Depletion and Depreciation Expense

	Successor								Predecessor
(in thousands)	Three Months ~~EndedJune~~EndedSeptember 30, 2019		Three Months ~~EndedJune~~EndedSeptember 30, 2018		~~Six~~Nine Months ~~EndedJune~~EndedSeptember 30, 2019		February 9, ~~2018ThroughJune~~2018ThroughSeptember 30, 2018		January 1, 2018ThroughFebruary 8, 2018
Oil and gas properties depletion	$	3332,~~923~~652	$	2644,~~086~~593	$	67100,~~965~~617	$	3681,~~859~~452	$	11,021
Midstream tangible asset depreciation	3,504		2,010		6,724		3,132		—
Midstream depreciation	3,589		2,099		10,313		5,231		—
Other property and equipment depreciation	~~341~~508		~~423~~1,030		~~749~~1,257		~~586~~1,616		609
Total depletion and depreciation	$	3736,~~768~~749	$	2847,~~519~~722	$	75112,~~438~~187	$	4088,~~577~~299	$	11,630

~~Impairment~~22

During the three months ended June 30, 2019, we evaluated the qualitative market conditions and other factors impacting our business and concluded that there were no indicators of impairment of our long-lived assets. Therefore, we did not conduct further analysis on the recognition of additional impairment.

Table of Contents

~~Index~~NOTE 10 — toDISCONTINUED ~~Financial~~OPERATIONS ~~Statements~~(Predecessor)

NOTE 8 — DISCONTINUED OPERATIONS (Predecessor)

The results of operations of the non-STACK oil and gas assets and related liabilities distributed to High Mesa immediately prior to the Business Combination and presented as discontinued operations during the Predecessor Period were as follows:



	Predecessor
(in thousands)	January 1, 2018 Through February 8, 2018
Revenue
Oil	$	1,617
Natural gas	1,023
Natural gas liquids	236
Other	16
Operating revenue	2,892
Loss on sale of assets	(1,923		)
Total revenue	969
Operating expenses
Lease operating	1,770
Transportation and marketing	83
Production taxes	167
Workovers	127
Depreciation, depletion and amortization	884
Impairment of assets	5,560
General and administrative	21
Total operating expenses	8,612
Other expense
Interest expense	(103		)
Loss from discontinued operations, net of tax	$	(7,746	)



	Predecessor
(in thousands)	January 1, 2018 Through February 8, 2018
Total operating cash flows of discontinued operations	$	2,974
Total investing cash flows of discontinued operations	(601		)

1823

Table of Contents

~~Index~~NOTE 11 — ~~to Financial Statements~~DERIVATIVES

~~NOTE~~During September 2019, in connection with the Company’s restructuring efforts, we cancelled (prior to contract settlement date) all derivative contracts for net proceeds of approximately $4.0 million. Proceeds received were used to make permanent repayments against our outstanding borrowings under the Alta Mesa RBL. As of September ~~9 —~~30, ~~DERIVATIVES~~ 2019, we held no open derivative positions.

The following summarizes the fair value and classification of our derivatives:

	June 30, 2019
Balance sheet location	Gross fair valueof assets		Gross liabilitiesoffset against assetsin the Balance Sheet			Net fairvalue of assetspresented inthe Balance Sheet
	(in thousands)
Derivatives, current assets	$	13,855	$	(9,128	)	$	4,727
Derivatives, long-term assets	11,977		(9,469		)	2,508
Total	$	25,832	$	(18,597	)	$	7,235

Balance sheet location	Gross fair valueof liabilities		Gross assetsoffset against liabilitiesin the Balance Sheet			Net fairvalue of liabilitiespresented inthe Balance Sheet
	(in thousands)
Derivatives, current liabilities	$	9,968	$	(9,128	)	$	840
Derivatives, long-term liabilities	9,658		(9,469		)	189
Total	$	19,626	$	(18,597	)	$	1,029



	December 31, 2018
Balance sheet location	Gross fair value of assets		Gross liabilities offset against assets in the Balance Sheet			Net fair value of assets presented in the Balance Sheet
	(in thousands)
Derivatives, current assets	$	22,512	$	(6,089	)	$	16,423
Derivatives, long-term assets	7,910		(4,963		)	2,947
Total	$	30,422	$	(11,052	)	$	19,370



Balance sheet location	Gross fair value of liabilities		Gross assets offset against liabilities in the Balance Sheet			Net fair value of liabilities presented in the Balance Sheet
	(in thousands)
Derivatives, current liabilities	$	7,799	$	(6,089	)	$	1,710
Derivatives, long-term liabilities	5,143		(4,963		)	180
Total	$	12,942	$	(11,052	)	$	1,890

	Successor											Predecessor
Derivatives not designated as hedges	Three Months EndedJune 30, 2019		Three Months EndedJune 30, 2018			Six Months EndedJune 30, 2019			February 9, 2018ThroughJune 30, 2018			January 1, 2018ThroughFebruary 8, 2018
Gain (loss) on derivatives -
Oil	$	5,134	$	(28,712	)	$	(16,535	)	$	(50,656	)	$	4,796
Natural gas	7,278		(507		)	5,170			(574		)	1,867
Total gain (loss) on derivatives	$	12,412	$	(29,219	)	$	(11,365	)	$	(51,230	)	$	6,663

The following table summarizes the effect of our derivatives in our statements of operations (in thousands):

Other receivables at June 30, 2019 and December 31, 2018 include $1.4 million and $1.3 million, respectively, of derivative positions scheduled to be settled in the next month.



	Successor												Predecessor
Derivatives not designated as hedges	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018			Nine Months Ended September 30, 2019			February 9, 2018 Through September 30, 2018			January 1, 2018 Through February 8, 2018
Gain (loss) on derivatives -
Oil	$	522		$	(12,339	)	$	(16,013	)	$	(62,995	)	$	4,796
Natural gas	(901		)	1,127			4,269			553			1,867
Total gain (loss) on derivatives	$	(379	)	$	(11,212	)	$	(11,744	)	$	(62,442	)	$	6,663

19Other receivables at December 31, 2018 included $1.3 million of derivative positions settled in January 2019.

Table of Contents

~~Index~~NOTE 12 — toACCOUNTS ~~Financial~~PAYABLE ~~Statements~~AND ACCRUED LIABILITIES

We had the following call and put derivatives at June 30, 2019:

	Volume	Weighted		Range
Settlement Period and Type of Contract	in bbls	Average		High		Low
2019
Price Swap Contracts	92,000	$	63.03	$	63.03	$	63.03
Collar Contracts
Short Call Options	1,361,600	66.31		75.20		56.50
Long Put Options	1,453,600	53.80		62.00		50.00
Short Put Options	1,453,600	42.72		52.00		37.50
2020
Collar Contracts
Short Call Options	1,017,600	63.95		73.80		59.55
Long Put Options	1,566,600	56.81		62.50		50.00
Short Put Options	1,566,600	42.81		50.00		37.50
2021
Collar Contracts
Short Call Options	279,750	63.51		63.75		63.35
Long Put Options	659,850	46.94		55.00		41.00
Short Put Options	279,750	43.00		43.00		43.00

	Volume	Weighted			Range
Settlement Period and Type of Contract	in MMBtu	Average			High			Low
2019
Price Swap Contracts	7,980,000	$	2.67		$	2.72		$	2.64
Basis Swap Contracts	9,680,000	(0.72		)	(0.49		)	(0.93		)
Collar Contracts
Short Call Options	1,525,000	3.19			3.20			3.17
Long Put Options	1,525,000	2.70			2.70			2.70
Short Put Options	1,525,000	2.20			2.20			2.20
2020
Price Swap Contracts	1,284,000	2.54			2.54			2.54
Basis Swap Contracts	910,000	(0.49		)	(0.49		)	(0.50		)
Collar Contracts
Short Call Options	3,874,500	3.19			3.69			2.77
Long Put Options	10,749,500	2.59			3.00			2.50
Short Put Options	9,696,000	2.10			2.50			2.00
2021
Collar Contracts
Short Call Options	540,000	3.25			3.25			3.25
Long Put Options	2,790,000	2.62			2.65			2.50
Short Put Options	2,250,000	2.15			2.15			2.15

Table of Contents

Index to Financial Statements

We had the following basis swaps at June 30, 2019:

Total Gas Volumes in MMBtu(1) overRemaining Term	Reference Price 1 (1)	Reference Price 2 (1)	Period			WeightedAverage Spread($ per MMBtu)
460,000	OneOK	NYMEX Henry Hub	Jul '19	—	Dec '19	$	(0.93	)
7,990,000	Tex/OKL Panhandle Eastern Pipeline	NYMEX Henry Hub	Jul '19	—	Dec '19	(0.70		)
910,000	Tex/OKL Panhandle Eastern Pipeline	NYMEX Henry Hub	Jan '20	—	Mar '20	(0.49		)
1,230,000	San Juan	NYMEX Henry Hub	Jul '19	—	Oct '19	(0.81		)

________________

(1) Represents short swaps that fix the basis differentials between OneOK, Tex/OKL Panhandle Eastern Pipeline (“PEPL”), San Juan and NYMEX Henry Hub.

During September 2019, we closed out all open derivative positions resulting in net proceeds of approximately $4 million, which we applied against our outstanding borrowings under the Alta Mesa RBL.

NOTE 10 — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

໿

(in thousands)	~~June~~September 30, 2019			December 31, 2018
Accounts payable	$	1222,~~526~~406		$	20,422
Accruals for capital expenditures	224,~~669~~879			139,904
Revenue and royalties payable	4128,~~304~~417			50,241
Accruals for operating expenses	1418,~~853~~324			21,830
Accrued interest	616,~~922~~512			2,477
Derivative settlements	~~743~~511			109
Other	101,~~884~~137			12,456
Total accrued liabilities	9769,~~375~~780			227,017
Accounts payable and accrued liabilities	$	109,901		$	247,439
Less: liabilities subject to compromise	(31,185		)	—
Accounts payable and accrued liabilities	$	61,001		$	247,439

NOTE 1113 — ASSET RETIREMENT OBLIGATIONS

	Successor						Predecessor
(in thousands)	~~Six~~Nine Months ~~EndedJune~~EndedSeptember 30, 2019			February 9, ~~2018ThroughJune~~2018ThroughSeptember 30, 2018			January 1, 2018ThroughFebruary 8, 2018
Balance, beginning of period	$	11,552		$	—		$	10,469
Liabilities assumed in Business Combination	—			5,998			—
Liabilities incurred	~~634~~831			~~877~~1,689			—
Liabilities settled	(~~162~~180		)	(~~806~~1,249		)	(63		)
Liabilities transferred in sale of properties	—			(20		)	—
Revisions to estimates	(819		)	~~665~~3,562			63
Accretion expense	~~470~~720			~~263~~489			40
Balance, end of period	12,~~486~~942			610,~~977~~469			10,509
Less: current portion	4474			~~538~~1,300			33
Long-term portion	$	12,~~442~~868		$	69,~~439~~169		$	10,476

21NOTE 14 — DEBT

Table of Contents

Index to Financial Statements

NOTE 12 — DEBT

໿

(in thousands)	~~June~~September 30, 2019			December 31, 2018
Alta Mesa RBL	$	~~344~~340,~~500~~004		$	161,000
KFM Credit Facility	~~218~~224,000			174,000
2024 Notes	500,000			500,000
Unamortized premium on 2024 Notes	~~26,662~~—			29,123
Total debt, net	1,~~089~~064,~~162~~004			864,123
Less: Current portion	1,089,162			690,123
Less: liabilities subject to compromise	(500,000		)	—
Less: current portion	(564,004		)	(690,123		)
Long-term debt, net	$	—		$	174,000

Alta Mesa RBL

In April 2019, our borrowing base under the Alta Mesa RBL was reduced from $400.0 million to $370.0 million, leaving ~~us with~~ no meaningful remaining capacity available thereunder at that time. In August 2019, the Alta Mesa RBL lenders exercised their ability to make an optional redetermination of our borrowing base ahead of the regular redetermination scheduled in October 2019, and via this redetermination, our borrowing base was reset to $200.0 million, effective August 13, 2019. As our combined borrowings and letters of credit outstanding exceeded the new borrowing base amount by $162.4 million, we had five months, beginning September 2019, to make ratable monthly payments of $32.5 million to cause utilization to be less than or equal to the borrowing base. As indicated in our discussion of going concern, we and the AMH Debtors filed for bankruptcy protection prior to making these payments.

~~The Alta Mesa RBL has two covenants that are tested quarterly:~~25

Table of Contents

ability to make an optional redetermination of our borrowing base ahead of the regular redetermination scheduled in October 2019, and via this redetermination, our borrowing base was reset to $200.0 million, effective August 13, 2019. As our combined borrowings and letters of credit outstanding exceeded the new borrowing base amount by $162.4 million, we had five months, beginning September 2019, to make ratable monthly payments of $32.5 million to cause utilization to be less than or equal to the borrowing base. As indicated above, AMR and the AMH Debtors filed for bankruptcy protection prior to making any of these payments.

The Alta Mesa RBL has two covenants that were tested quarterly:


•	a ratio of Alta Mesa’s current assets to current liabilities, inclusive of specified adjustments, of not less than 1.0 to 1.0; and


•	a ratio of Alta Mesa’s consolidated debt to its consolidated Adjusted EBITDAX (the “leverage ratio”) of not greater than 4.0 to 1.0.

Alta Mesa’s filing of the Bankruptcy Petitions constituted an event of default under the Alta Mesa RBL that accelerated Alta Mesa’s obligations thereunder. Under the Bankruptcy Code, the lenders under the Alta Mesa RBL are stayed from taking any action against the AMH Debtors as a result of an event of default.

KFM Credit Facility

The KFM Credit Facility, as amended, provides for an aggregate committed borrowing capacity of $300.0 million.

There are two maintenance covenants under the KFM Credit Facility that are tested quarterly:


•	a ratio of KFM’s total debt to its consolidated adjusted EBITDA of not greater than 4.5 to 1.0, (which increases to 4.75 after KFM exceeds consolidated EBITDA of $75.0 million) for any 4 quarter period; and


•	a minimum interest coverage ratio of KFM’s adjusted EBITDA to interest expense of not less than 2.5 to 1.0.

The KFM Credit Facility also limits KFM to holding no more than $15.0 million in cash and limits its ability to amend affiliate contracts. Our bankruptcy filing did not constitute an event of default under the KFM Credit Facility.

AtIn ~~August~~September ~~31,~~ 2019, ~~remaining~~KFM ~~borrowing~~received ~~capacity~~a ~~under~~letter from the ~~KFM~~Administrative ~~Credit~~Agent ~~Facility~~whereby ~~totaled $74.0 million. Access to~~ the ~~remaining~~lenders ~~capacity~~ under the KFM Credit Facility ~~requires~~allege ~~adherence~~a topotential ~~the~~event ~~terms~~of ~~and~~default ~~covenant~~in ~~compliance~~respect onof aliens ~~pro~~placed ~~forma~~on ~~basis~~KFM’s ~~for~~assets. The ~~any~~Administrative ~~new~~Agent ~~borrowings.~~and Wethe ~~believe~~lenders ~~that~~have ~~KFM~~reserved ~~will~~their ~~exhaust~~right ~~its~~to ~~borrowing~~pursue ~~capacity~~any ~~and~~remedies ~~fail~~available to ~~meet~~them, ~~the~~including ~~maintenance~~charging ~~covenants~~the asdefault ~~early~~rate asof ~~the~~interest, ~~first~~declaring ~~quarter~~any of ~~2020. On~~the ~~September~~outstanding ~~23,~~debt ~~2019,~~thereunder ~~KFM~~due ~~received~~and apayable ~~letter~~or ~~from~~foreclosing ~~the~~on, ~~Administrative~~or ~~Agent~~instituting ~~whereby~~foreclosure ~~the~~proceedings ~~lenders~~against, ~~under~~or ~~the~~liquidating ~~KFM~~any ~~Credit~~collateral. Although ~~Facility~~the ~~allege~~Administrative aAgent ~~potential~~and ~~event~~the oflenders ~~default~~have innot ~~respect~~taken ofany ~~liens~~such ~~placed~~actions, on KFM’s ~~assets. Accordingly,~~will ~~we may~~ not have access to the remaining borrowing capacity unless or until this matter is resolved, which could materially impact ~~our~~AMR’s and KFM’s ability to meet ~~our~~all financial obligations as they come due and KFM’s ability to make distributions to AMR that otherwise may have been permitted. We also believe that KFM will fail to meet the maintenance covenants of the KFM Credit Facility as early as the first quarter of 2020, which would prevent any further borrowings. At October 31, 2019, undrawn borrowing capacity under the KFM Credit Facility totaled $76.0 million.

Table of Contents

Index to Financial Statements

2024 Notes

We have estimated the fair value of the 2024 Notes to be $~~193~~85.87 million at ~~June~~September 30, 2019, which is based on their most recent trading values, which is a Level 1 determination.

Alta Mesa’s filing of the Bankruptcy Petitions constituted an event of default under the 2024 Notes that accelerated Alta Mesa’s obligations thereunder. Under the Bankruptcy Code, the holders of the 2024 Notes are stayed from taking any action against Alta Mesa as a result of an event of default including acceleration.

Scheduled Maturities of Debt

Fiscal year	(in thousands)
2019	$	—
2023	$	564,004
2020	—
2024	500,000
2021	—
	$	1,064,004
2022	—
2023	562,500
Thereafter	500,000
	$	1,062,500

Based upon our going concern conclusions and the default associated with Alta Mesa’s bankruptcy filing, we believe that our indebtedness under the Alta Mesa RBL and our 2024 Notes should be reported as current liabilities despite their scheduled maturities shown above. We have reported our Alta Mesa RBL debt and our 2024 Notes as current at June 30, 2019. In addition, based on the factors described under “KFM Credit Facility” above, we have also reported all of our Midstream debt as current at June 30, 2019 despite the scheduled maturities shown above. 26

~~NOTE 13 —~~Table ~~COMMITMENTS~~of ~~AND CONTINGENCIES~~ Contents

~~There~~Based ~~have~~upon ~~been~~our nogoing ~~material~~concern ~~developments~~conclusions, ~~during~~ the ~~first~~default ~~six~~associated ~~months~~with ofAlta ~~2019~~Mesa’s inbankruptcy ~~relation~~filing toand ~~our~~KFM’s ~~commitments~~projected ~~and~~covenant ~~contingencies~~violations, aswe ~~compared~~believe tothat ~~our~~all ~~discussion~~ of ~~those matters in~~ our ~~2018~~indebtedness ~~10-K. The~~should ~~commencement~~be ofreported ~~the~~as ~~Chapter~~current 11liabilities ~~proceedings~~despite ~~automatically~~their ~~stayed~~scheduled ~~certain~~maturities ~~actions~~shown ~~against the Company, including the matters discussed in our 2018 10-K~~above.

NOTE 14 15 — ~~SIGNIFICANT~~COMMITMENTS ~~CONCENTRATIONS~~AND CONTINGENCIES

There have been no material developments during the first nine months of 2019 in relation to our commitments and contingencies as compared to our discussion of those matters in our 2018 10-K except as discussed below. The commencement of the Chapter 11 proceedings automatically stayed certain actions against the Company, including the matters discussed in our 2018 10-K.

At December 31, 2018, Alta Mesa had an $18.3 million letter of credit issued to provide financial assurance for a multi-year obligation. During 2019, this letter of credit was reduced by $2.4 million in the ordinary course. In November 2019, the transportation company demanded full payment of $15.9 million for non-payment of $0.5 million in prepetition claims. This amount was paid by the administrative agent of the Alta Mesa RBL, but we believe the claims arising under the transportation contract were stayed by Alta Mesa’s bankruptcy filing. A demand letter has been sent to the transportation company to return the excess payment above the prepetition claims. It is unclear if or when this matter will be resolved.

NOTE 16 — SIGNIFICANT CONCENTRATIONS

During most of the first quarter of 2019 and throughout 2018, ARM Energy Management, LLC ("ARM") marketed our oil, gas and NGLs for a marketing fee that is deducted from sales proceeds collected by ARM from purchasers. The sales were generally made under short-term contracts with month-to-month pricing based on published regional indices, adjusted for transportation, location and quality. In March 2019, in preparation for handling oil and NGL marketing responsibilities internally, we began receiving payments for the sale of oil and NGLs directly from purchasers and separately paying the marketing fee owed to ARM. As of June 1, 2019, we terminated our oil and NGL marketing agreement with ARM and have begun marketing such products internally. We have extended the term of our gas marketing agreement with ARM through November 30, 2019.

ARM has also provided us with strategic advice, execution and reporting services with respect to our derivatives activities.



	Successor								Predecessor
(in thousands)	Three Months Ended September 30, 2019		Three Months Ended September 30, 2018		Nine Months Ended September 30, 2019		February 9, 2018 Through September 30, 2018		January 1, 2018 Through February 8, 2018
Revenue marketed by ARM on our behalf	$	7,643	$	114,109	$	117,003	$	234,850	$	28,757

Marketing and management fees paid to ARM	$	272	$	—	$	1,483	$	—	$	—
Fees paid to ARM for services relating to our derivatives	56		216		467		499		66
Total fees paid to ARM	$	328	$	216	$	1,950	$	499	$	66

~~Table~~Receivables from ARM for sales on our behalf were $5.4 million and $43.8 million as of ~~Contents~~September 30, 2019 and December 31, 2018, respectively, which are reflected in accounts receivable on our balance sheets.

Index to Financial Statements

	Successor								Predecessor
(in thousands)	Three Months EndedJune 30, 2019		Three Months EndedJune 30, 2018		Six Months EndedJune 30, 2019		February 9, 2018ThroughJune 30, 2018		January 1, 2018ThroughFebruary 8, 2018
Revenue marketed by ARM on our behalf	$	25,833	$	90,206	$	119,224	$	131,422	$	28,757
Marketing and management fees paid to ARM	$	519	$	—	$	1,216	$	—	$	—
Fees paid to ARM for services relating to our derivatives	218		209		411		283		66
Total fees paid to ARM	$	737	$	209	$	1,627	$	283	$	66

Receivables from ARM for sales on our behalf were $6.6 million and $43.8 million as of June 30, 2019 and December 31, 2018, respectively, which are reflected in accounts receivable on our balance sheets.

We believe that the loss of any of our customers, or of our marketing agent ARM, would not have a material adverse effect on us because alternative purchasers and marketing firms are readily available.

NOTE 1517 — EQUITY-BASED COMPENSATION (Successor)

Stock compensation expense recognized was as follows:

Successor

Predecessor

(in thousands)

Three Months ~~EndedJune~~EndedSeptember 30, 2019

Three Months ~~EndedJune~~EndedSeptember 30, 2018

~~Six~~Nine Months ~~EndedJune~~EndedSeptember 30, 2019

February 9, ~~2018ThroughJune~~2018ThroughSeptember 30, 2018

January 1, 2018ThroughFebruary 8, 2018

Stock options

~~660~~859

1,~~722~~782

12,~~899~~758

24,~~787~~569

—

Restricted stock awards

35600

1,~~260~~271

12,~~468~~068

23,~~493~~764

—

Performance-based restricted stock units

~~145~~47

1(2,~~281~~449

)

~~152~~199

~~2,449~~—

—

Total compensation expense

~~840~~1,506

~~4,263~~604

35,~~519~~025

78,~~729~~333

—

Performance-based restricted stock units (“PSUs”) issued in 2018 generally vest over three years at 20% during the first year (“2018 tranche”), 30% during the second year (“2019 tranche”), and 50% during the third year (“2020 tranche”). The number of PSUs vesting each year is based on achievement of annual company-specific performance goals and obligations applicable to each year of vesting. Based on achievement of those goals and objectives, the number of PSUs that can vest range from 0% to 200% of the target growth applicable to each vesting period. The performance goals set for the 2018 tranche were not attained and, therefore, the 2018 tranche was forfeited as of December 31, 2018, except with respect to separations involving employment agreements whereby the separated employee was eligible to receive the award granted.

The performance targets for the 2019 tranche of performance-based restricted stock units were established in March 2019 and 572,990 PSUs were deemed granted at that time. The fair value of the 2019 tranche granted was $0.27 ~~per unit, which will be recognized as expense over the remainder of 2019, subject to continued employment.~~

No performance targets have yet been established for the 2020 tranche and therefore, no expense will be recognized for those awards until the specific targets have been established and probability of attainment can be measured.

NOTE 16 — RELATED PARTY TRANSACTIONS

David Murrell, our Vice President of Land and Business Development, is the principal of David Murrell & Associates, which provided land consulting services to us until termination of our contract in December 2018. The primary employee of David Murrell & Associates is his spouse, Brigid Murrell. Services were provided at a pre-negotiated hourly rate based on actual time utilized by us. Total expenditures under this arrangement were approximately $83,000 and $28,000 for the period February 9,

Table of Contents

~~Index~~each year of vesting. Based on achievement of those goals and objectives, the number of PSUs that can vest range from 0% to ~~Financial~~200% ~~Statements~~of the units issued in each tranche. The performance goals set for the 2018 tranche were not attained and, therefore, the 2018 tranche was forfeited as of December 31, 2018, except with respect to separations involving employment agreements whereby the separated employee was eligible to receive the award granted.

~~2018~~The ~~through~~performance ~~June 30,~~targets ~~2018,~~for the 2019 tranche of performance-based restricted stock units were established in March 2019 and 572,990 PSUs were deemed granted at that time. The fair value of the ~~Predecessor~~2019 ~~Period,~~tranche ~~respectively~~granted was $0. ~~These~~27 ~~amounts~~per ~~are~~unit, ~~recorded~~which inwill ~~general~~be recognized as expense over the remainder of 2019, subject to continued employment and ~~administrative~~our ~~expenses.~~assessment of the probability of attainment of the established metrics.

~~David~~No ~~McClure,~~performance ~~AMR’s~~targets ~~former~~have ~~Vice~~yet ~~President~~been ofestablished ~~Facilities~~for ~~and Infrastructure, and~~ the ~~son-in-law~~2020 oftranche ~~our former President~~ and ~~Chief Executive Officer~~therefore, ~~Harlan~~no H.expense ~~Chappelle,~~will ~~received~~be ~~total~~recognized ~~compensation~~for ofthose ~~$768,860,~~awards ~~$1,017,711~~until ~~and $28,874 during~~ the ~~six~~specific ~~months~~targets ~~ended~~have ~~June~~been ~~30,~~established ~~2019, the period February 9, 2018 through June 30, 2018,~~ and ~~the~~probability ~~Predecessor~~of ~~Period,~~attainment ~~respectively. These~~can ~~amounts~~be ~~are included in general and administrative expense~~measured. ~~Mr.~~ ~~McClure separated from the Company in February 2019.~~

David Pepper, Surface Land Manager for KFM, and the cousin of our Vice President of Land and Business Development, David Murrell, received total compensation of $117,962, $297,134, $67,322, for the six months ended June 30, 2019, the period February 9, 2018 through JuneNOTE ~~30,~~18 — ~~2018,~~RELATED ~~and~~PARTY ~~the Predecessor Period, respectively. These amounts are included in general and administrative expense.~~TRANSACTIONS

David McClure, AMR’s former Vice President of Facilities and Infrastructure, and the son-in-law of our former President and Chief Executive Officer, Harlan H. Chappelle, received total compensation of approximately $769,000, $1,089,000 and $29,000 during the nine months ended September 30, 2019, the period February 9, 2018 through September 30, 2018, and the Predecessor Period, respectively. These amounts are included in general and administrative expense. Mr. McClure separated from the Company in February 2019.

David Pepper, Surface Land Manager for KFM, and the cousin of our Vice President of Land and Business Development, David Murrell, received total compensation of approximately $242,000, $264,000, 67,000, for the nine months ended September 30, 2019, the period February 9, 2018 through September 30, 2018, and the Predecessor Period, respectively. These amounts are included in general and administrative expense.

Bayou City Agreement

In January 2016, our wholly owned subsidiary Oklahoma Energy entered into a Joint Development Agreement, as amended on June 10, 2016 and December 31, 2016, (the “JDA”), with BCE, a fund advised by Bayou City, to fund a portion of our drilling operations and to allow us to accelerate development of our STACK acreage. The JDA established a development plan of 60 wells in three tranches, and provides opportunities for an additional 20 wells. Pursuant to the JDA, BCE committed to fund 100% of our working interest share up to a maximum average well cost of $3.2 million in drilling and completion costs per well for any tranche. We are responsible for any drilling and completion costs exceeding approved amounts. BCE may request refunds of certain advances from time to time if funded wells previously on the drilling schedule were subsequently removed. In exchange for funding the drilling and completion costs, BCE receives 80% of our working interest in each wellbore, which BCE interest will be reduced to 20% of our initial working interest upon BCE achieving a 15% internal rate of return on the wells within a tranche and automatically further reduced to 12.5% of our initial interest upon BCE achieving a 25% internal rate of return. Following the completion of each joint well, we and BCE will each bear our respective proportionate working interest share of all subsequent costs related to such joint well. Mr. William McMullen, one of our directors, is founder and managing partner of BCE. The approximate dollar value of the amount involved in this transaction, or Mr. McMullen’s interests in the transaction, depends on a number of factors outside his control and is not known at this time. During the Predecessor Period, BCE advanced us approximately $39.5 million to drill wells under the JDA. As of ~~June~~September 30, 2019, 61 joint wells have been drilled or spudded. At ~~June~~September 30, 2019 and December 31, 2018, $42.06 million and $9.8 million, respectively of revenue and net advances remaining from BCE for their working interest share of the drilling and development costs arising under the JDA were included as “Advances from related party” in our condensed consolidated balance sheets. At ~~June~~September 30, 2019, there were no funded horizontal wells in progress, and we do not expect any wells to be developed in 2019 pursuant to the JDA. On June 11, 2019, we received a letter from BCE noticing us of alleged defaults under the JDA. We dispute these allegations and intend to vigorously defend ourselves.

2528

Table of Contents

~~Index~~NOTE to19 ~~Financial~~— ~~Statements~~BUSINESS SEGMENT INFORMATION

NOTE 17 — BUSINESS SEGMENT INFORMATION



	Three Months Ended September 30, 2019
(in thousands)	Exploration & Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	84,010		$	—		$	—		$	84,010
Natural gas	10,788			—			—			10,788
Natural gas liquids	8,333			—			—			8,333
Sales of gathered production	—			8,387			—			8,387
Midstream revenue	—			20,326			(14,444		)	5,882
Segment sales revenue	103,131			28,713			(14,444		)	117,400
Other revenue	302			5,720			(3,879		)	2,143
Operating revenue	103,433			34,433			(18,323		)	119,543
Loss on sale of assets	—			(106		)	—			(106		)
Loss on derivatives	(379		)	—			—			(379		)
Total revenue	103,054			34,327			(18,323		)	119,058
Operating expenses
Lease operating	18,071			—			(3,879		)	14,192
Transportation, processing and marketing	17,561			3,062			(14,444		)	6,179
Midstream operating	—			6,621			—			6,621
Cost of sales for purchased gathered production	—			7,656			—			7,656
Production taxes	4,673			—			—			4,673
Workovers	757			26			—			783
Exploration	40,847			—			—			40,847
Depreciation, depletion and amortization	33,407			3,592			—			36,999
Impairment of assets	387,721			303,402			—			691,123
General and administrative	14,852			8,075			5,065			27,992
Total operating expenses	517,889			332,434			(13,258		)	837,065
Operating income	(414,835		)	(298,107		)	(5,065		)	(718,007		)
Other income (expense)
Interest expense	(12,233		)	(2,912		)	—			(15,145		)
Interest income	45			6			18			69
Equity in earnings of unconsolidated subsidiaries	—			(29		)	—			(29		)
Reorganization items, net	22,905			—			(438		)	22,467
Total other income (expense)	10,717			(2,935		)	(420		)	7,362
Income (loss) from continuing operations before income taxes	(404,118		)	(301,042		)	(5,485		)	(710,645		)

Interest expense	12,233			2,912			—			15,145
Depreciation, depletion and amortization	33,407			3,592			—			36,999
Loss on unrealized hedges	7,112			—			—			7,112
Impairment of assets	387,721			303,402			—			691,123
Equity-based compensation	1,396			110			—			1,506
Exploration	40,847			—			—			40,847
Severance costs	418			178			—			596
Strategic costs	3,647			1,397			3,397			8,441
Provision for uncollectible related party receivable	—			2,310			—			2,310
Reorganization items, net	(22,905		)	—			438			(22,467		)
Adjusted EBITDAX	$	59,758		$	12,859		$	(1,650	)	$	70,967

Capital expenditures	$	63,571		$	4,381		$	—		$	67,952

	Three Months Ended June 30, 2019
(in thousands)	Exploration &Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	90,668		$	—		$	—		$	90,668
Natural gas	12,384			—			—			12,384
Natural gas liquids	10,251			—			—			10,251
Sales of gathered production	—			10,439			—			10,439
Midstream revenue	—			22,112			(15,563		)	6,549
Segment sales revenue	113,303			32,551			(15,563		)	130,291
Other revenue	330			6,693			(4,009		)	3,014
Operating revenue	113,633			39,244			(19,572		)	133,305
Gain on sale of assets	—			—			—			—
Gain (loss) on derivatives	12,412			—			—			12,412
Total revenue	126,045			39,244			(19,572		)	145,717
Operating expenses
Lease operating	19,123			—			(4,009		)	15,114
Transportation, processing and marketing	19,614			2,786			(15,563		)	6,837
Midstream operating	—			6,520			—			6,520
Cost of sales for purchased gathered production	—			8,720			—			8,720
Production taxes	5,117			—			—			5,117
Workovers	412			395			—			807
Exploration	3,289			—			—			3,289
Depreciation, depletion and amortization	34,504			3,505			—			38,009
Impairment of assets	6,500			—			—			6,500
General and administrative	15,723			5,324			6,125			27,172
Total operating expenses	104,282			27,250			(13,447		)	118,085
Operating income	21,763			11,994			(6,125		)	27,632
Other income (expense)
Interest expense	(14,071		)	(2,684		)	—			(16,755		)
Interest income	54			6			19			79
Equity in earnings of unconsolidated subsidiaries	—			643			—			643
Total other income (expense)	(14,017		)	(2,035		)	19			(16,033		)
Income (loss) from continuing operations before income taxes	7,746			9,959			(6,106		)	11,599
Interest expense	14,071			2,684			—			16,755
Depreciation, depletion and amortization	34,504			3,505			—			38,009
Gain on unrealized hedges	(11,868		)	—			—			(11,868		)
Impairment of assets	6,500			—			—			6,500
Equity-based compensation	1,396			(556		)	—			840
Exploration	3,289			—			—			3,289
Severance costs	609			88			—			697
Strategic costs	4,061			—			—			4,061
Adjusted EBITDAX	$	60,308		$	15,680		$	(6,106	)	$	69,882
Equity method investment at period end	$	—		$	1,842		$	—		$	1,842
Capital expenditures	47,061			39,533			—			86,594

Table of Contents

Index to Financial Statements



	Three Months Ended September 30, 2018
(in thousands)	Exploration & Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	107,253		$	—		$	—		$	107,253
Natural gas	11,959			—			—			11,959
Natural gas liquids	13,880			—			—			13,880
Sales of gathered production	—			27,405			(18,276		)	9,129
Midstream revenue	—			20,775			(12,973		)	7,802
Segment sales revenue	133,092			48,180			(31,249		)	150,023
Other revenue	1,011			—			—			1,011
Operating revenue	134,103			48,180			(31,249		)	151,034
Loss on sale of assets	(18		)	—			—			(18		)
Loss on derivatives	(11,212		)	—			—			(11,212		)
Total revenue	122,873			48,180			(31,249		)	139,804
Operating expenses
Lease operating	16,351			—			—			16,351
Transportation, processing and marketing	15,820			2,334			(12,973		)	5,181
Midstream operating	—			4,507			—			4,507
Cost of sales for purchased gathered production	—			27,737			(18,276		)	9,461
Production taxes	6,311			—			—			6,311
Workovers	1,065			—			—			1,065
Exploration	1,029			—			—			1,029
Depreciation, depletion and amortization	45,849			7,254			—			53,103
Impairment of assets	—			—			—			—
General and administrative	7,918			3,423			561			11,902
Total operating expenses	94,343			45,255			(30,688		)	108,910
Operating income	28,530			2,925			(561		)	30,894
Other income (expense)
Interest expense	(11,008		)	(1,339		)	—			(12,347		)
Interest income	322			3			32			357
Total other income (expense)	(10,686		)	(1,336		)	32			(11,990		)
Income (loss) from continuing operations before income taxes	17,844			1,589			(529		)	18,904

Interest expense	11,008			1,339			—			12,347
Depreciation, depletion and amortization	45,849			7,254			—			53,103
Gain on unrealized hedges	(2,655		)	—			—			(2,655		)
Equity-based compensation	326			278			—			604
Exploration	1,029			—			—			1,029
Adjusted EBITDAX	$	73,401		$	10,460		$	(529	)	$	83,332

Capital expenditures	$	169,967		$	13,047		$	—		$	183,014

	Three Months Ended June 30, 2018
(in thousands)	Exploration &Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	75,291		$	—		$	—		$	75,291
Natural gas	7,980			—			—			7,980
Natural gas liquids	10,241			—			—			10,241
Sales of gathered production	—			21,024			(12,100		)	8,924
Midstream revenue	—			15,849			(9,032		)	6,817
Segment sales revenue	93,512			36,873			(21,132		)	109,253
Other revenue	2,229			—			—			2,229
Operating revenue	95,741			36,873			(21,132		)	111,482
Gain on sale of assets	(63		)	—			—			(63		)
Gain (loss) on derivatives	(29,219		)	—			—			(29,219		)
Total revenue	66,459			36,873			(21,132		)	82,200
Operating expenses
Lease operating	12,679			—			—			12,679
Transportation, processing and marketing	11,205			3,223			(9,032		)	5,396
Midstream operating	—			3,313			—			3,313
Cost of sales for purchased gathered production	—			21,002			(12,100		)	8,902
Production taxes	2,606			—			—			2,606
Workovers	333			—			—			333
Exploration	8,083			—			—			8,083
Depreciation, depletion and amortization	26,670			7,264			—			33,934
Impairment of assets	—			—			—			—
General and administrative	17,811			4,140			505			22,456
Total operating expenses	79,387			38,942			(20,627		)	97,702
Operating income	(12,928		)	(2,069		)	(505		)	(15,502		)
Other income (expense)
Interest expense	(10,361		)	(1,418		)	—			(11,779		)
Interest income	820			—			4			824
Total other income (expense)	(9,541		)	(1,418		)	4			(10,955		)
Income (loss) from continuing operations before income taxes	(22,469		)	(3,487		)	(501		)	(26,457		)
Interest expense	10,361			1,418			—			11,779
Depreciation, depletion and amortization	26,670			7,264			—			33,934
Loss on unrealized hedges	14,860			—			—			14,860
Equity-based compensation	3,621			465			177			4,263
Exploration	8,083			—			—			8,083
Business Combination	443			—			—			443
Adjusted EBITDAX	$	41,569		$	5,660		$	(324	)	$	46,905
Capital expenditures	$	189,732		$	17,844		$	—		$	207,576

Table of Contents

Index to Financial Statements



	Nine Months Ended September 30, 2019
(in thousands)	Exploration & Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	261,041		$	—		$	—		$	261,041
Natural gas	41,622			—			—			41,622
Natural gas liquids	29,800			—			—			29,800
Sales of gathered production	—			28,386			—			28,386
Midstream revenue	—			64,814			(45,228		)	19,586
Segment sales revenue	332,463			93,200			(45,228		)	380,435
Other revenue	1,200			20,094			(13,052		)	8,242
Operating revenue	333,663			113,294			(58,280		)	388,677
Gain (loss) on sale of assets	1,483			(106		)	—			1,377
Loss on derivatives	(11,744		)	—			—			(11,744		)
Total revenue	323,402			113,188			(58,280		)	378,310
Operating expenses
Lease operating	62,302			—			(13,052		)	49,250
Transportation, processing and marketing	54,936			7,911			(45,228		)	17,619
Midstream operating	—			19,292			—			19,292
Cost of sales for purchased gathered production	—			26,071			—			26,071
Production taxes	15,273			—			—			15,273
Workovers	1,366			537			—			1,903
Exploration	46,190			—			—			46,190
Depreciation, depletion and amortization	102,586			10,321			—			112,907
Impairment of assets	394,221			303,402			—			697,623
General and administrative	51,522			21,462			11,698			84,682
Total operating expenses	728,396			388,996			(46,582		)	1,070,810
Operating income	(404,994		)	(275,808		)	(11,698		)	(692,500		)
Other income (expense)
Interest expense	(39,134		)	(8,226		)	—			(47,360		)
Interest income	126			16			57			199
Equity in earnings of unconsolidated subsidiaries	—			713			—			713
Reorganization items, net	22,905			—			(438		)	22,467
Total other income (expense)	(16,103		)	(7,497		)	(381		)	(23,981		)
Income (loss) from continuing operations before income taxes	(421,097		)	(283,305		)	(12,079		)	(716,481		)

Interest expense	39,134			8,226			—			47,360
Depreciation, depletion and amortization	102,586			10,321			—			112,907
Loss on unrealized hedges	19,386			—			—			19,386
Impairment of assets	394,221			303,402			—			697,623
Equity-based compensation	4,453			572			—			5,025
Exploration	46,190			—			—			46,190
Severance costs	5,002			2,162			—			7,164
Strategic costs	6,489			1,397			3,397			11,283
Provision for uncollectible related party receivable	—			2,310			—			2,310
Reorganization items, net	(22,905		)	—			438			(22,467		)
Adjusted EBITDAX	$	173,459		$	45,085		$	(8,244	)	$	210,300

Equity method investment at period end	$	—		$	1,813		$	—		$	1,813
Capital expenditures	243,709			72,185			—			315,894
Total assets at period end	552,744			156,225			(11,902		)	697,067

	Six Months Ended June 30, 2019
(in thousands)	Exploration &Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	177,031		$	—		$	—		$	177,031
Natural gas	30,834			—			—			30,834
Natural gas liquids	21,467			—			—			21,467
Sales of gathered production	—			19,999			—			19,999
Midstream revenue	—			44,488			(30,784		)	13,704
Segment sales revenue	229,332			64,487			(30,784		)	263,035
Other revenue	898			14,374			(9,173		)	6,099
Operating revenue	230,230			78,861			(39,957		)	269,134
Gain on sale of assets	1,483			—			—			1,483
Gain (loss) on derivatives	(11,365		)	—			—			(11,365		)
Total revenue	220,348			78,861			(39,957		)	259,252
Operating expenses
Lease operating	44,231			—			(9,173		)	35,058
Transportation, processing and marketing	37,375			4,849			(30,784		)	11,440
Midstream operating	—			12,671			—			12,671
Cost of sales for purchased gathered production	—			18,415			—			18,415
Production taxes	10,600			—			—			10,600
Workovers	609			511			—			1,120
Exploration	5,343			—			—			5,343
Depreciation, depletion and amortization	69,179			6,729			—			75,908
Impairment of assets	6,500			—			—			6,500
General and administrative	36,670			13,387			6,633			56,690
Total operating expenses	210,507			56,562			(33,324		)	233,745
Operating income	9,841			22,299			(6,633		)	25,507
Other income (expense)
Interest expense	(26,901		)	(5,314		)	—			(32,215		)
Interest income	81			10			39			130
Equity in earnings of unconsolidated subsidiaries	—			742			—			742
Total other income (expense)	(26,820		)	(4,562		)	39			(31,343		)
Income (loss) from continuing operations before income taxes	(16,979		)	17,737			(6,594		)	(5,836		)
Interest expense	26,901			5,314			—			32,215
Depreciation, depletion and amortization	69,179			6,729			—			75,908
Loss on unrealized hedges	12,274			—			—			12,274
Impairment of assets	6,500			—			—			6,500
Equity-based compensation	3,057			462			—			3,519
Exploration	5,343			—			—			5,343
Severance costs	4,584			1,984			—			6,568
Strategic costs	4,061			—			—			4,061
Business Combination	10			—			—			10
Adjusted EBITDAX	$	114,930		$	32,226		$	(6,594	)	$	140,562
Equity method investment at period end	$	—		$	1,842		$	—		$	1,842
Capital expenditures	180,138			67,804			—			247,942
Total assets at period end	999,744			458,882			(6,569		)	1,452,057

Table of Contents

Index to Financial Statements



	February 9, 2018 Through September 30, 2018
(in thousands)	Exploration & Production			Midstream			Corporate and Eliminations			Total
Revenue
Oil	$	222,822		$	—		$	—		$	222,822
Natural gas	25,149			—			—			25,149
Natural gas liquids	28,835			—			—			28,835
Sales of gathered production	—			59,039			(37,113		)	21,926
Midstream revenue	—			44,446			(26,567		)	17,879
Segment sales revenue	276,806			103,485			(63,680		)	316,611
Other revenue	3,795			—			—			3,795
Operating revenue	280,601			103,485			(63,680		)	320,406
Gain on sale of assets	5,058			—			—			5,058
Loss on derivatives	(62,442		)	—			—			(62,442		)
Total revenue	223,217			103,485			(63,680		)	263,022
Operating expenses
Lease operating	37,347			—			—			37,347
Transportation, processing and marketing	32,608			7,895			(26,567		)	13,936
Midstream operating	—			8,407			—			8,407
Cost of sales for purchased gathered production	—			59,285			(37,113		)	22,172
Production taxes	10,332			—			—			10,332
Workovers	2,643			—			—			2,643
Exploration	10,697			—			—			10,697
Depreciation, depletion and amortization	83,557			19,159			—			102,716
Impairment of assets	—			—			—			—
General and administrative	60,383			9,736			1,991			72,110
Total operating expenses	237,567			104,482			(61,689		)	280,360
Operating income	(14,350		)	(997		)	(1,991		)	(17,338		)
Other income (expense)
Interest expense	(26,565		)	(3,005		)	—			(29,570		)
Interest income	1,688			3			36			1,727
Total other income (expense)	(24,877		)	(3,002		)	36			(27,843		)
Income (loss) from continuing operations before income taxes	(39,227		)	(3,999		)	(1,955		)	(45,181		)

Interest expense	26,565			3,005			—			29,570
Depreciation, depletion and amortization	83,557			19,159			—			102,716
Loss on unrealized hedges	30,241			—			—			30,241
Equity-based compensation	6,714			784

Filing Compare · Alta Mesa Resources, Inc. /DE