The Company uses Adjusted Net Income (Loss), Adjusted Cash Flows from Operations, and Adjusted EBITDAX as performance measurements in its presentations to analysts. These measurements are not recognized under generally accepted accounting principles. The reconciliations below demonstrate how the Company calculates such measurements from its financial statements. Adjusted Net Income (Loss) is provided as a supplement to present an alternative net income (loss) measure which excludes expense and income items (and their related tax effects) not directly related to the Company’s ongoing operations, which management believes may be helpful to investors by eliminating the impact of noncash and/or special or unusual items not indicative of the Company’s performance from period to period. Adjusted Cash Flows from Operations measures the Company’s cash flow generated from operations excluding the timing effects related to the collection or payment of its receivables and payables which management believes reflects the available cash generated from the Company’s operating activities. Adjusted EBITDAX is a widely accepted measure of profitability that management believes may be used to measure the Company’s ability to service its debt.

Non-GAAP Reconciliations