Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182The discussion of the results of operations and the period-to-period comparisons presented below analyze our historical results. The following discussion may not be indicative of future results. Year Ended December 31, 2016 vs. 2015 Years Ended December 31, Increase 2016 2015 (Decrease) (In thousands) Revenues and other income: Oil and gas revenue . . . . . . . . . . . . . . . . . . . . $ 310,377 $ 446,696 $(136,319) Gain on sale of assets . . . . . . . . . . . . . . . . . . — 24,651 (24,651) Other income . . . . . . . . . . . . . . . . . . . . . . . . 74,978 209 74,769 Total revenues and other income . . . . . . . . . 385,355 471,556 (86,201) Costs and expenses: Oil and gas production . . . . . . . . . . . . . . . . . 119,367 105,336 14,031 Facilities insurance modifications . . . . . . . . . . 14,961 — 14,961 Exploration expenses . . . . . . . . . . . . . . . . . . . 202,280 156,203 46,077 General and administrative . . . . . . . . . . . . . . 87,623 136,809 (49,186) Depletion and depreciation . . . . . . . . . . . . . . 140,404 155,966 (15,562) Interest and other financing costs, net . . . . . . 44,147 37,209 6,938 Derivatives, net . . . . . . . . . . . . . . . . . . . . . . . 48,021 (210,649) 258,670 Other expenses, net . . . . . . . . . . . . . . . . . . . . 23,116 5,246 17,870 Total costs and expenses . . . . . . . . . . . . . . . 679,919 386,120 293,799 Income (loss) before income taxes . . . . . . . . . . . (294,564) 85,436 (380,000) Income tax expense (benefit) . . . . . . . . . . . . . (10,784) 155,272 (166,056) Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(283,780) $ (69,836) $(213,944) Oil and gas revenue. Oil and gas revenue decreased by $136.3 million as a result of seven cargos sold during the year ended December 31, 2016 as compared to nine cargos during the year ended December 31, 2015, and as a result of a lower realized price per barrel. We lifted and sold 6,756 MBbl at an average realized price per barrel of $45.94 in 2016 and 8,538 MBbl at an average realized price per barrel of $52.32 in 2015. Gain on sale of assets. During the year ended December 31, 2015, we closed a farm-out agreement with Chevron. As part of the transaction, we received proceeds in excess of our book basis, resulting in a gain of $24.7 million. Other income. During the year ended December 31, 2016, we recognized $74.8 million of LOPI proceeds related to the turret bearing issue on the Jubilee FPSO. Oil and gas production. Oil and gas production costs increased by $14.0 million during the year ended December 31, 2016 as compared to the year ended December 31, 2015. The 2016 costs were impacted by increased costs associated with the new operating procedures related to the turret bearing issue while the 2015 costs were impacted by higher workover costs in the Jubilee Field. Facilities insurance modifications. During the year ended December 31, 2016, we incurred $15.0 million of facilities modification costs associated with the long-term solution to convert the FPSO to a permanently spread moored facility which we expect to substantially recover from our insurance policy. 86