Returned approximately $250 million to shareholders via a $4.25 per share cash distribution paid to shareholders of record as of close of business on December 12, 2019

Returned an aggregate of approximately $398 million of capital to shareholders in 2019 through the significant cash distribution, share repurchases, and a tender offer, and over $550 million since August 2018

Closed the following sales:

Remaining Hugoton Basin assets for proceeds of approximately $283 million

Interests in properties located in the Overton and Personville fields of East Texas for proceeds of approximately $44 million

The Drunkards Wash field located in Utah for proceeds of approximately $4 million.

Signed a definitive agreement to sell our Oklahoma City office building for a contract price of $21.4 million

Ended the fourth quarter with a consolidated cash balance of ~$116 million and ~$70 million drawn on the Blue Mountain Midstream LLC (“Blue Mountain”) senior secured revolving loan facility (the “Blue Mountain Credit Facility”)

Expanded the scope of our engagement with Tudor, Pickering, Holt & Co., in addition to on-going work with other advisors, to explore a potential sale or merger for Riviera

Privately held Citizen Energy Operating, LLC (“Citizen”), a portfolio company of Warburg Pincus, closed on its $1 billion merger agreement with Roan Resources, Inc. (“Roan”), Blue Mountain’s primary customer, in December 2019

Connected 49 wells and 41 wells turned to sales on natural gas system in 2019

Continued expansion of water gathering system, connecting to a total of 19 pads in 2019

Initiated water gathering services for large, independent producer anchored by 5,000 bpd MVC in November 2019

Placed in service two owned and operated saltwater disposal (“SWD”) wells and acquired additional disposal capacity through a non-op joint venture during the fourth quarter of 2019

Redirected ~5 MMcf/d from recently acquired Lumen Midstream system to cryogenic plant beginning on October 1, 2019

Began construction on crude oil gathering system in October 2019, placing in service first crude oil pipeline on February 1, 2020

Closed ten transactions for combined proceeds of ~$548 million in the last thirteen months

Outperformed fourth quarter upstream guidance with respect to Adjusted EBITDAX, with lower operating expenses, higher oil and gas production, and capital in line with guidance ranges

$ in millions

Average daily production (MMcfe/d)

Total oil, natural gas and NGL revenues

(Loss) income from continuing operations

(Loss) income from discontinued operations, net of income taxes

Net (loss) income

Adjusted EBITDAX (a non-GAAP financial measure) ⁽²⁾

Net cash provided by (used in) operating activities

Oil and natural gas capital

Total capital ⁽³⁾

All amounts reflect continuing operations with the exception of net (loss) income for the twelve months ended December 31, 2018.

Includes severance costs of approximately $3 million and $5 million for the three months and year ended December 31, 2019, respectively, recoupment of expenses and success fee on capital reimbursement agreement of approximately $1.5 million and $3.2 million for the three months and year ended December 31, 2019, respectively, and severance and spin-off costs of $1 million and $39 million for the three months and year ended December 31, 2018, respectively.

Includes approximately $3 million of capital for the Lumen acquisition for the year ended December 31, 2019.

Proved reserves at December 31, 2018

Revisions of previous estimates

Sales of minerals in place

Extensions and discoveries

Production

Proved reserves at December 31, 2019

Net Production (MMcfe/d)

Natural gas (MMcf/d)

Oil (Bbls/d)

NGL (Bbls/d)

Other revenues, net (in thousands) ⁽¹⁾

Helium revenues

Jayhawk / Other

Blue Mountain

Costs (in thousands)

Lease operating expenses

Transportation expenses

Taxes, other than income taxes

Adjusted general and administrative expenses (Non-GAAP) ⁽⁶⁾

General and administrative- severance expenses

(in thousands)

Adjusted EBITDAX (Non-GAAP)

Cash interest expense (Non-GAAP) ⁽¹¹⁾

Oil and natural gas capital

Total capital

Includes other revenues and margin on marketing activities

Includes other revenues of approximately $2.7 million, plus marketing revenues of approximately $7.7 million, less marketing expenses of approximately $4.8 million

Includes marketing revenues of approximately $40.0 million, less adjusted marketing expenses of approximately $29.2 million. Adjusted marketing expenses is a non-GAAP measure that excludes share-based compensation expenses of less than ($0.1) million, and gains on derivatives of approximately $0.3 million

Includes other revenues of approximately $2.7 million, plus marketing revenues of approximately $47.7 million, less adjusted marketing expenses of approximately $34.1 million. Adjusted marketing expenses is a non-GAAP measure that excludes share-based compensation expenses of less than ($0.1), and gains on derivatives of approximately $0.3 million

Includes helium revenues of approximately $2.4 million from the overriding royalty interest in helium produced from certain oil and natural gas properties in the Hugoton Basin that Riviera contributed to Mayzure, LLC in March 2019 (the “VPP Interests”)

Adjusted general and administrative expenses is a non-GAAP measure that excludes share-based compensation expenses and severance expenses presented for the purpose of comparing to guidance

Represents general and administrative expenses of approximately $13.4 million, excluding share-based compensation expenses of approximately $1.5 million, and severance expenses of approximately $2.9 million

Represents general and administrative expenses of approximately ($1.2) million, excluding share-based compensation expenses of approximately ($3.5) million

Represents general and administrative expenses of approximately $12.2 million, excluding share-based compensation expenses of approximately ($2.0) million, and severance expenses of approximately $2.9 million

Includes recoupment of operating expenses, net of success fee adjustments related to capital reimbursement agreement, for partial sale of NW STACK gathering infrastructure to producer of approximately $1.5 million

Excludes non cash amortization

Q4 2019

Actuals

Q4 2019

Guidance

Net Production (MMcfe/d)

Natural gas (MMcf/d)

Oil (Bbls/d)

NGL (Bbls/d)

Other revenues, net (in thousands) ⁽¹⁾

Helium revenues

Jayhawk / Other

Costs (in thousands)

Lease operating expenses

Transportation expenses

Taxes, other than income taxes

Adjusted general and administrative expenses (Non-GAAP) ⁽⁴⁾

General and administrative- severance expenses

Targets (Mid-Point) (in thousands)

Adjusted EBITDAX (Non-GAAP)

Capital expenditures

VPP Notes interest expense payments ⁽⁶⁾

VPP Notes principal payments

Includes other revenues and margin on marketing activities

Includes other revenues of approximately $2.7 million, plus marketing revenues of approximately $7.7 million, less marketing expenses of approximately $4.8 million

Includes helium revenues from the VPP Interests of approximately $2.4 million

Adjusted general and administrative expenses is a non-GAAP measure that excludes share-based compensation expenses and severance expenses presented for the purpose of comparing to guidance

For the three months ended December 31, 2019 represents general and administrative expenses of approximately $13.4 million, excluding share-based compensation expenses of approximately $1.5 million, and severance expenses of approximately $2.9 million

Excludes non cash amortization

Midstream Volumes

Natural Gas Throughput (MMcf/d)

Water Managed (Bbl/d)

% Piped

% Trucked

Crude Throughput (Bbl /d)

Operating Margin ($ in thousands) ⁽²⁾

Gas

Other

Total Operating Margin

Adjusted EBITDA ($ in thousands) (Non-GAAP) ^{(3) (4)}

Capital Expenditures ($ in thousands)

Includes approximately $1 million of capitalized general and administrative expenses

Includes margin on marketing activities (marketing revenues less marketing expenses), and direct operating expenses for Blue Mountain Midstream assets, only

Excludes share-based compensation expenses and severance expenses

The Company does not provide a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis as it is unable to forecast certain items that we have defined as “Selected Items Impacting Comparability”, which items are set forth later in this press release under the heading “Non-GAAP Financial Measures and Selected Items Impacting Comparability,” without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of and the periods in which such items may be recognized. Thus, a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures could result in disclosure that could be imprecise or potentially misleading. These items could be material to and have a significant impact on the Company’s results computed in accordance with GAAP.

Net Production (MMcfe/d)

Natural gas (MMcf/d)

Oil (Bbls/d)

NGL (Bbls/d)

Other revenues, net (in thousands) ⁽¹⁾

Costs (in thousands)

Lease operating expenses

Transportation expenses

Taxes, other than income taxes

Adjusted general and administrative expenses (Non-GAAP) ^(2), (5)

General and administrative- severance expenses

Costs per Mcfe (Mid-Point)

Lease operating expenses

Transportation expenses

Taxes, other than income taxes

Targets (Mid-Point in thousands)

Adjusted EBITDAX (Non-GAAP) ⁽⁵⁾

Capital expenditures

Weighted Average NYMEX Differentials

Natural gas (MMBtu)

Oil (Bbl)

NGL price as a % of crude oil price

Natural gas (MMBtu)

Oil (Bbl)

NGL (Bbl)

Includes other revenues and margin on marketing activities for Upstream assets, only

Excludes share-based compensation expenses and severance expenses

Includes severance expenses of approximately $3.0 million

Includes severance expenses of approximately $5.5 million

The Company does not provide a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis as it is unable to forecast certain items that we have defined as “Selected Items Impacting Comparability”, which items are set forth later in this press release under the heading “Non-GAAP Financial Measures and Selected Items Impacting Comparability,” without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of and the periods in which such items may be recognized. Thus, a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures could result in disclosure that could be imprecise or potentially misleading. These items could be material to and have a significant impact on the Company’s results computed in accordance with GAAP.

Natural Gas

(MMMBtu/d)

(per MMBtu)

Swaps

Collars

Oil

(Bbls/d)

(per Bbl)

Swaps

Natural Gas Basis Differential positions

(per MMBtu)

PEPL Basis Swaps

Oil

(Bbls/d)

(per Bbl)

Swaps

ASSETS

Current assets:

Cash and cash equivalents

Accounts receivable – trade, net

Derivative instruments

Restricted cash

Other current assets

Assets held for sale

Total current assets

Noncurrent assets:

Oil and natural gas properties (successful efforts method)

Less accumulated depletion and amortization

Other property and equipment

Less accumulated depreciation

Derivative instruments

Deferred income taxes

Other noncurrent assets

Total noncurrent assets

Total assets

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued expenses

Derivative instruments

Other accrued liabilities

Liabilities held for sale

Total current liabilities

Noncurrent liabilities:

Credit facilities

Asset retirement obligations and other noncurrent liabilities

Total noncurrent liabilities

Commitments and contingencies

Equity:

Preferred Stock ($0.01 par value, 30,000,000 shares authorized and no shares issued at December 31, 2019; no shares authorized or issued at December 31, 2018)

Common Stock ($0.01 par value, 270,000,000 shares authorized and 58,168,756 shares issued at December 31, 2019; 69,197,284 shares authorized or issued at December 31, 2018)

Additional paid-in capital

Retained (deficit) earnings

Total equity

Total liabilities and equity

Revenues and other:

Oil, natural gas and natural gas liquids sales

Gains (losses) on commodity derivatives

Marketing revenues

Other revenues

Expenses:

Lease operating expenses

Transportation expenses

Marketing expenses

General and administrative expenses

Exploration costs

Depreciation, depletion and amortization

Impairment of assets held for sale and long-lived assets

Taxes, other than income taxes

(Gains) losses on sale of assets and other, net

Other income and (expenses):

Interest expense, net of amounts capitalized

Other, net

Reorganization items, net

(Loss) income from continuing operations before income taxes

Income tax expense

(Loss) income from continuing operations

Income from discontinued operations, net of income taxes

Net (loss) income

(Loss) income per share:

(Loss) income from continuing operations per share – Basic

(Loss) income from continuing operations per share – Diluted

Income from discontinued operations per share – Basic

Income from discontinued operations per share – Diluted

Net (loss) income per share – Basic

Net (loss) income per share – Diluted

Weighted average shares outstanding – Basic

Weighted average shares outstanding – Diluted

Distributions declared per share

Cash flow from operating activities:

Net (loss) income

Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:

Income from discontinued operations

Depreciation, depletion and amortization

Impairment of assets held for sale and long-lived assets

Deferred income taxes

Total (gains) losses on derivatives, net

Cash settlements on derivatives

Share-based compensation expenses

Amortization and write-off of deferred financing fees

(Gains) losses on sale of assets and other, net

Reorganization items, net

Changes in assets and liabilities:

(Increase) decrease in accounts receivable – trade, net

(Increase) decrease in other assets

Increase (decrease) in accounts payable and accrued expenses

Increase (decrease) in other liabilities

Net cash provided by (used in) operating activities – continuing operations

Net cash provided by (used in) operating activities

Cash flow from investing activities:

Acquisition of property, plant and equipment

Development of oil and natural gas properties

Purchases of other property and equipment

Proceeds from sale of properties and equipment and other

Net cash provided by (used in) investing activities – continuing operations

Net cash provided by (used in) investing activities – discontinued operations

Net cash provided by investing activities

Cash flow from financing activities:

Net transfers to parent

Repurchases of shares

Proceeds from borrowings

Repayments of debt

Debt issuance costs paid

Distributions to shareholders

Distributions to unitholders

Other

Net cash used in financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash:

Beginning

Ending

Net (loss) income

Plus (less):

Income from discontinued operations

Interest expense, net of amounts capitalized

Income tax expense (benefit)

Depreciation, depletion and amortization

Exploration costs

EBITDAX

Plus (less):

Noncash losses (gains) on commodity derivatives

Accrued settlements on commodity derivative contracts related to current production period ⁽¹⁾

Share-based compensation expenses

(Gains) losses on sale of assets and other, net (2)

Reorganization items, net ⁽³⁾

Impairment of assets held for sale and long-lived assets

Adjusted EBITDAX ⁽⁴⁾

Represent amounts related to commodity derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period.

Primarily represent gains or losses on the sale of assets, earnings from equity method investments, gains or losses on inventory valuation, and write-off of deferred financing fees.

Represent costs and income directly associated with the predecessor’s filing for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code since the petition date, and also include adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments were determined.

Includes expense recoupment and success fee on capital reimbursement agreement of approximately $1.5 million and $3.2 million for the three months and year ended December 31, 2019, respectively.

Net (loss) income

Plus (less):

Income from discontinued operations

Interest expense

Income tax expense

Depreciation, depletion and amortization

EBITDA

Exploration costs

EBITDAX

Plus (less):

Noncash losses (gains) on commodity derivatives

Accrued settlements on commodity derivative contracts related to current production period ⁽¹⁾

Share-based compensation expenses

(Gains) losses on sale of assets and other, net ⁽²⁾

Reorganization items, net ⁽³⁾

Impairment of assets held for sale and long-lived assets

Adjusted EBITDAX / Adjusted EBITDA ⁽⁴⁾

Net (loss) income

Plus (less):

Income from discontinued operations

Interest expense

Income tax expense

Depreciation, depletion and amortization

EBITDA

Exploration costs

EBITDAX

Plus (less):

Noncash (gains) losses on commodity derivatives

Accrued settlements on commodity derivative contracts related to current production period ⁽¹⁾

Share-based compensation expenses

(Gains) losses on sale of assets and other, net ⁽²⁾

Reorganization items, net ⁽³⁾

Impairment of assets held for sale and long-lived assets

Adjusted EBITDAX / Adjusted EBITDA ⁽⁴⁾

Represent amounts related to commodity derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period.

Primarily represent gains or losses on the sale of assets, earnings from equity method investments, gains or losses on inventory valuation, and write-off of deferred financing fees.

Represent costs and income directly associated with the predecessor’s filing for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code since the petition date, and also include adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments were determined.

Consolidated and Blue Mountain include recoupment of expenses and success fee on capital reimbursement agreement of approximately $1.5 million and $3.2 million for the three months and year ended December 31, 2019, respectively.