CASH FLOWS FROM OPERATING ACTIVITIES

(Unaudited in thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Net loss

$

(162,771

) ^(a)

$

(321,827

)

$

(521,388

)

$

(713,685

)

Adjustments to reconcile net cash provided from continuing operations:

Deferred income tax benefit

(93,617

) ^(a)

(164,316

)

(280,848

)

(338,706

)

Depletion, depreciation, amortization and impairment

149,662

215,918

567,142

1,171,329

Exploration dry hole costs

16

1

18

88

Abandonment and impairment of unproved properties

6,307

11,432

30,076

47,619

Derivative fair value loss (income)

250,057

(126,312

)

261,391

(416,364

)

Cash settlements on derivative financial instruments that do not qualify for hedge

    accounting

86,679

171,477

347,336

532,122

Allowance for bad debts

—

1,700

800

2,300

Amortization of deferred issuance costs, loss on extinguishment of debt and other

1,787

1,811

7,170

29,383

Deferred and stock-based compensation

1,996

(9,732

)

74,685

(20,411

)

(Gain) loss on sale of assets and other

(470

)

408,909

7,074

406,856

Changes in working capital:

Accounts receivable

(52,571

)

(14,744

)

(20,586

)

64,704

Inventory and other

6,996

(7,795

)

6,220

(14,868

)

Accounts payable

14,009

(13,039

)

(27,259

)

(26,197

)

Accrued liabilities and other

(23,049

)

22,359

(64,763

)

(32,768

)

Net changes in working capital

(54,615

)

(13,219

)

(106,388

)

(9,129

)

Net cash provided from operating activities

$

185,031

$

175,842

$

387,068

$

691,402

^(a)Fourth quarter 2016 includes the $2.0 million impact of retrospective adoption of ASU 2016-09.

RECONCILIATION OF NET CASH PROVIDED FROM OPERATING ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure

(Unaudited, in thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Net cash provided from operating activities, as reported

$

185,031

$

175,842

$

387,068

$

691,402

Net changes in working capital

54,615

13,219

106,388

9,129

Exploration expense

13,039

3,445

30,009

18,333

Lawsuit settlements

1,131

1,226

2,575

3,238

Cash paid to exchange senior subordinated notes

—

—

6,600

—

Legal contingency/DEP penalty

—

—

—

2,500

Memorial merger expenses

813

—

37,225

—

Termination costs

(822

)

10,283

(519

)

14,853

Non-cash compensation adjustment

56

73

19

709

Cash flow from operations before changes in working capital – non-GAAP measure

$

253,863

$

204,088

$

569,365

$

740,164

ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING

(Unaudited, in thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Basic:

Weighted average shares outstanding

247,161

169,371

192,661

169,183

Stock held by deferred compensation plan

(2,799

)

(2,798

)

(2,793

)

(2,794

)

Adjusted basic

244,362

166,573

189,868

166,389

Dilutive:

Weighted average shares outstanding

247,161

169,371

192,661

169,183

Dilutive stock options under treasury method

(2,799

)

(2,798

)

(2,793

)

(2,794

)

Adjusted dilutive

244,362

166,573

189,868

166,389