Harvest Oil and Gas Corp.

Unaudited Financial Statements

For the Year Ended December 31, 2022

Harvest Oil & Gas Corp.

Unaudited Consolidated Balance Sheets

(In thousands, except per share data)

December 31,

2022

2021

Assets

Current assets:

Cash and cash equivalents

$

10,338

$

15,341

Accounts receivable

202

2,685

Other current assets

943

1,634

Total current assets

11,483

19,660

Assets held for sale

111

66

Other assets

742

1,063

Total assets

$

12,346

$

20,789

Liabilities And Equity

Current liabilities:

Accounts payable and accrued liabilities

$

284

$

746

Asset retirement obligations

175

152

Total current liabilities

459

898

Liabilities held for sale

64

64

Other long-term liabilities

466

466

Commitments and contingencies

Stockholders' equity:

Common stock - $0.01 par value; 2,000,000 shares authorized;

1,032,885 shares issued and 1,026,541 shares outstanding

102

102

Additional paid-in capital

142,313

147,959

Treasury stock at cost - 6,344 shares

(657)

(657)

Retained earnings (accumulated deficit)

(130,401)

(128,043)

Total stockholders' equity

11,357

19,361

Total liabilities and equity

$

12,346

$

20,789

See accompanying notes to consolidated financial statements.

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Harvest Oil & Gas Corp.

Unaudited Consolidated Statements of Operations

(In thousands, except per share data)

Year Ended

December 31,

2022

2021

Oil, natural gas and natural gas liquids revenues

$

-

$

33

Operating costs and expenses:

General and administrative expenses

717

3,392

Loss on sales of oil and natural gas properties

830

340

Total operating costs and expenses

1,547

4,720

Operating loss

(1,547)

(4,687)

Other income (expense), net:

Interest income

-

1,563

Loss on early termination of note receivable

-

(1,600)

Other expense, net

(811)

-

Total other income, net

(811)

(37)

Loss before income taxes

(2,358)

(4,724)

Income tax benefit

-

-

Net loss

$

(2,358)

$

(4,724)

Earnings (loss) per share - Basic and Diluted

$

(2.28)

$

(4.57)

Weighted average common shares outstanding - Basic and Diluted

1,033

1,033

See accompanying notes to consolidated financial statements.

2

Harvest Oil & Gas Corp.

Notes to Unaudited Consolidated Financial Statements

(Amounts in thousands, except per share data)

Note 1. Organization and Nature of Business

Harvest Oil & Gas Corp. (the "Company" or "Harvest"), a Delaware corporation, previously operated as an independent oil and gas company. On January 26, 2021, Harvest filed a Certificate of Dissolution with the Secretary of State of the State of Delaware. The Company is currently winding down its business and operations and is in the process of returning capital to its shareholders, subject to an analysis of the net cash available for distribution to its shareholders after any net cash that must be retained to satisfy the Company's ongoing liabilities during the winding-up process. As used herein, the terms "Harvest" or the "Company" refer to Harvest Oil & Gas Corp. and its consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made.

Given the significant costs and resource demands of being a public company, the Company decided to deregister its common stock in accordance with the Securities Exchange Act of 1934, as amended (the "Exchange Act"). On May 15, 2020, Harvest filed a Form 15 with the Securities and Exchange Commission (the "SEC") to voluntarily deregister its common stock and suspend its reporting obligations under the Exchange Act. By deregistering under the Exchange Act, Harvest's obligations to file reports with the Securities and Exchange Commission ("SEC") (including periodic reports, proxy statements, and tender offer statements) were terminated, and Harvest is no longer subject to Exchange Act reporting obligations.

After deregistration from the SEC, Harvest's common stock was quoted and traded on the OTCQX until January 8, 2021, after which Harvest's common stock was quoted and traded on the OTC PINK Market until September 27, 2021. Harvest's common stock is now trading on the OTC Expert Market. Although Harvest currently provides financial information for the benefit of its shareholders, there is no assurance it will continue to do so.

The Company has divested virtually all of its oil and gas properties over the past several years. This included the divestiture of the Company's Appalachia Basin assets, which represented substantially all of Harvest's remaining oil and gas assets when they were sold in October 2020. The Company intends to divest all of its minimal remaining oil and gas assets.

Distributions

After filing its Certificate of Dissolution, the Company is currently winding down its business and operations and is in the process of returning capital to its shareholders, subject to an analysis of the net cash available for distribution to its shareholders and the amount of net cash that must be retained to satisfy the Company's ongoing liabilities during the winding-up process. Since filing the Certificate of Dissolution, the Company has made the following distributions per share:

3

Harvest Oil & Gas Corp.

Notes to Unaudited Consolidated Financial Statements

(Amounts in thousands, except per share data)

Year Ended December 31,

2022

2021

Distribution per share

$

5.50

$

13.00

Subsequent to December 31, 2022, the Company made an additional distribution of $3.75 per share on January 17, 2023. As of June 1, 2023, the Company has made cumulative distributions of $42.25 per share or $43.3 million for 2020, 2021, 2022 and 2023.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The Company's consolidated financial statements included herein are consistent with accounting principles generally accepted in the United States of America ("GAAP"). The financial statements contain selected disclosures, but do not contain all the information required by annual financial statements prepared in accordance with GAAP.

This information contained herein is provided for informational purposes only and is not intended to substitute for obtaining professional accounting, tax, or financial advice. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Although reasonable and appropriate measures to maintain the timeliness and accuracy of the financial information included herein, the financial data provided has been neither reviewed nor audited and may contain errors, omissions or misstatements.

All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company's operating environment changes. While Harvest believes that the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. All of its cash and cash equivalents are maintained with major financial institutions in the United States.

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Harvest Oil & Gas Corp. published this content on 12 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2023 20:07:36 UTC.