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Wired News – Jones Energy Retains Credit Suisse to Evaluate Strategic and Financial Alternatives and Increase Shareholder Value

Stock Monitor: Midstates Petroleum Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 29, 2017 / Active-Investors issued a free report on Jones Energy, Inc. (NYSE: JONE), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=JONE as the Company' s latest news hit the wire. On November 27, 2017, the Company announced that it is exploring strategic alternatives and opportunities to have a strong balance sheet and increase shareholder value. The Company has retained the services of Credit Suisse to get financial advice and guidance. The current announcement was followed by the Company's earlier communication on the same day, stating that it had increased the limits of its senior secured revolving credit facility after renegotiating terms with its lenders. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for Midstates Petroleum Company, Inc. (NYSE: MPO), which also belongs to the Basic Materials sector as the Company Jones Energy. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Jones Energy most recent news is on our radar and we have decided to include it on our blog post. Today' s free coverage is available at:

www.active-investors.com/registration-sg/?symbol=JONE

Commenting on the Company's plans, Jonny Jones, Chairman and CEO of Jones Energy, said:

"Earlier today we announced modifications to our credit facility which will provide for the continued development of our Merge assets in 2018. These modifications were an important step. However, we believe it is prudent to explore additional opportunities to strengthen our balance sheet, secure additional capital, and improve the Company' s financial flexibility."

The Company has roped in the services of Credit Suisse to help it in this endeavor and assist Jones Energy in identifying the most suitable course of action which will enhance shareholder value. The Company has also engaged the services of Tudor, Pickering, Holt & Co. who will help Jones Energy to explore potential drilling opportunities via joint ventures, or "DrillCo" alternatives. This will help the Company to continue with its plans to develop its Western Anadarko properties. Potential investors have already started showing interest in investing in the Company via these investment methods and is awaiting concrete proposals.

The Company has stated that the process of exploring strategic alternatives does not guarantee that the Company would implement the same and it will not be making any announcements on the matter unless the Company's Board decides to share its findings.

Backdrop

Jones Energy has been under pressure from its investor Q Investments, L.P, to explore all strategic alternatives including the sale of the Company. Q investments owns nearly 8.17% stake in the Company as per a filing with the US Securities and Exchange Commission (SEC) on November 08, 2017. It had written to the Company on two occasions - first in July 2017 and later in September 2017. Q Investments has suggested that the Company explore the DrillCo financing to Jones Energy in its July 2017 communication. The investor felt that this would be the ideal method of raising finance for taking advantage of the emerging plays at the Anadarko basin. The investor had suggested that the Company hire an investment bank for raising the DrillCo capital.

In the September 2017 communique, Q Investments had threatened to nominate its own directors during the Company's annual shareholders meeting, if the Company did not immediately start the process to explore all strategic alternatives, including the sale of the Company. Q Investments felt that these actions would unlock value for shareholders who would benefit from these transactions including merger with another Company.

Renegotiation of its credit facility

Jones Energy had, on the same day, announced that it has completed renegotiating the terms of its credit facility and increased its borrowings after successful negotiations with its lenders. Because of these negotiations, the Company's borrowing limit has been increased to a maximum of $350 million and has managed to suspend the total leverage ratio covenant till after Q1 2019. The first total leverage ratio covenant will only start from March 31, 2019.

These changes in the credit facility will allow the Company to increase the production at its Merge facility and utilize the unborrowed credit capacity to raise additional capital to develop its assets.

About Jones Energy Inc.

Austin, Texas based Jones Energy is an independent oil and gas Company engaged in the development, production, and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. The Company had a total of 4,746 gross drilling locations, 605 net drilling locations, and 18,131 total net acres at the end of FY16.

Stock Performance Snapshot

November 28, 2017 - At Tuesday' s closing bell, Jones Energy' s stock declined 7.29%, ending the trading session at $0.90.

Volume traded for the day: 4.94 million shares, which was above the 3-month average volume of 1.22 million shares.

After yesterday' s close, Jones Energy' s market cap was at $86.22 million.

The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 0.8% at the end of the session.

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SOURCE: Active-Investors