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CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2016 2015 2014 Operating activities Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(283,780) $ (69,836) $ 279,370 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 150,608 166,290 208,628 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,561) 110,786 216,409 Unsuccessful well costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,079 94,910 1,105 Change in fair value of derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,559 (210,957) (271,298) Cash settlements on derivatives, net (including $187.9 million, $225.5 million and $18.4 million on commodity hedges during 2016, 2015 and 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,895 224,741 4,460 Equity-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,084 75,057 79,541 Gain on sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (24,651) (23,769) Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 165 2,898 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,355 7,875 (3,875) Changes in assets and liabilities: (Increase) decrease in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . (20,558) 2,209 (156,192) Increase in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,107) (29,855) (8,100) Decrease in prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . 17,557 512 1,732 Increase (decrease) in accounts payable . . . . . . . . . . . . . . . . . . . . . . (75,487) 111,289 90,228 Increase (decrease) in accrued liabilities . . . . . . . . . . . . . . . . . . . . . (3,567) (17,756) 22,449 Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . 52,077 440,779 443,586 Investing activities Oil and gas assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (535,975) (823,642) (424,535) Other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,998) (1,483) (2,383) Proceeds on sale of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 28,692 58,315 Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (537,763) (796,433) (368,603) Financing activities Borrowings under long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 100,000 — Payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (200,000) (400,000) Net proceeds from issuance of senior secured notes . . . . . . . . . . . . . . . . . . — 206,774 294,000 Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,981) (18,110) (11,096) Deferred financing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (9,030) (22,088) Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . 448,019 79,634 (139,184) Net decrease in cash, cash equivalents and restricted cash . . . . . . . . . . . . . . (37,667) (276,020) (64,201) Cash, cash equivalents and restricted cash at beginning of period . . . . . . . . . 310,862 586,882 651,083 Cash, cash equivalents and restricted cash at end of period . . . . . . . . . . . . . $ 273,195 $ 310,862 $ 586,882 Supplemental cash flow information Cash paid for: Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,860 $ 33,315 $ 23,182 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,997 $ 35,857 $ 108,068 Non-cash activity: Conversion of joint interest billings receivable to long-term note receivable . $ 9,814 $ — $ — See accompanying notes. 110