Through our em phasis on operating and G & A cost control 
initiatives, the C om pany’s record oil and natural gas sales 
translated to best-in-class Adjusted EBITD AX  M argin (7 9 
percent) am ong peers our size and a full 1 0 absolute percentage 
points higher than the average of our entire peer group. 
A s a result of its significant production increase, the C om pany’s 20 14 oil, N G L and natural 
gas sales revenue increased by $74.4 m illion to $159.8 m illion; an 87 percent increase 
com pared to $85.3 m illion in 20 13.  
This topline grow th resulted in A djusted E B ID TA X  increase of $73.8 m illion to $126.4 
m illion (7 9 percent of revenue); a 140  percent increase com pared to $52.6 m illion 
(62 percent of revenue) in 20 13.  In other w ords, for every $1.0 0  of revenue grow th 
com pared to 20 13, the C om pany added $0 .99 of 20 14 A djusted E B ITD A X  grow th. 
This A djusted E B ITD A X  (generally a good proxy for our 
operating cash flow ) increase w as prim arily the result of 
increased revenue and the follow ing cost controlled 
operating expenses: 
• Lease operating expenses increased only slightly (12 percent), 
despite significant production increases (10 8  percent). 
A s a result of several changes in its field operations and 
econom ies of scale, the C om pany has realized im provem ent 
in its lease operating costs per barrel. 
• Production taxes also only increased slightly (11 percent), 
despite significant revenue increase (87 percent). Through a 
series of strategic dispositions, the C om pany has shifted its 
state production m ix from  prim arily high severance tax rate 
jurisdictions (states of C olorado and N orth D akota) to low er severance tax rate jurisdictions 
(states of Texas and O klahom a). 
• G eneral and adm inistrative expenses rem ained relatively flat com pared to prior year. 
This is prim arily due to the fact that the C om pany began ram ping up staffing in 20 13 as 
it expected developm ent grow th in late 20 13 and 20 14. 
FIN A N C IA L O V ERV IEW 
2,000 
4,000 
6,000 
8,000 
10,000 
$10,000 
$20,000 
$30,000 
$40,000 
$50,000 
REVENUE (US$000s)  AND PRODUCTION (Boe/d) 
I REVENUE     —— Boe/d 
 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 
$5,000 
$10,000 
$15,000 
$20,000 
$25,000 
$30,000 
$35,000 
$40,000 
20% 
40% 
60% 
80% 
100% 
 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 
ADJUSTED EBITDAX AND MARGIN 
I ADJUSTED EBITDAX (US$000s) 
——  ADJUSTED EBITDAX MARGIN (%) 
6