for a definition of adjusted ebitdax and a reconciliation to our most directly comparable financial measure calculated and presented in accordance with gaap , please read “ adjusted ebitdax . ” operational overview during the year ended december 31 , 2017 , we continued to focus on growing production while at the same time implementing operational efficiencies to reduce drilling and completion costs . we incurred approximately $ 864.5 million , excluding outstanding elections , in drilling 186 gross ( 137.4 net ) wells with an average lateral length of 1.7 miles and completing 198 gross ( 158.9 net ) wells with an average lateral length of 1.7 miles , all of which were horizontal wells in the dj basin . in addition , we incurred approximately $ 73.2 million of leasehold and surface acreage additions , excluding acquisitions , 55 and approximately $ 10.9 million of midstream additions , excluding acquisitions . our 2018 capital budget anticipates a two to three operated rig drilling program . recent developments recent acquisitions and divestitures asset divestitures to date , we have received multiple agreements to divest various properties for approximately $ 70.0 million . these sales are not expected to have a material impact to our previously announced 2018 guidance and are projected to close during the second quarter of 2018. november 2017 acquisition on november 15 , 2017 , we acquired an unaffiliated oil and gas company 's interest in approximately 36,600 net acres of leasehold and primarily non-producing properties located in arapahoe county , colorado , ( the `` november 2017 acquisition `` ) . upon closing the seller received $ 214.3 million in cash , subject to customary purchase price adjustments . we also recorded a liability of $ 12.2 million for the final settlement payment due in april 2018 in conjunction with the november 2017 acquisition for total consideration of $ 226.5 million . the acquisition provides new development opportunities in the dj basin . july 2017 acquisition on july 7 , 2017 , we acquired an unaffiliated oil and gas company 's interest in approximately 12,500 net acres of leasehold and primarily non-producing properties located in adams county , colorado , along with various other related rights , permits , contracts , equipment , rights of way , gathering systems and other assets . upon closing the seller received total consideration of $ 84.0 million in cash . june 2017 acquisition on june 8 , 2017 , we acquired an unaffiliated oil and gas company 's interests in producing properties located in weld county , colorado . the acquisition increased our interest in existing operated wells . we paid approximately $ 13.4 million in cash consideration in connection with the closing of the acquisition . the acquired interest contributed $ 3.7 million of revenue and $ 3.0 million of earnings for the year ended december 31 , 2017. amendments to revolving credit facility and capital raise 2026 senior notes on january 25 , 2018 , we issued at par $ 750.0 million principal amount of 5.625 % senior notes due february 1 , 2026 ( the `` 2026 senior notes `` and the offering , the `` 2026 senior notes offering `` ) . the 2026 senior notes bear an annual interest rate of 5.625 % . the interest on the 2026 senior notes is payable on february 1 and august 1 of each year commencing on august 1 , 2018. we received net proceeds of approximately $ 737.9 million after deducting discounts and fees . we used $ 534.2 million of the net proceeds from the 2026 senior notes offering to tender for our 2021 senior notes , $ 52.7 million to redeem any 2021 senior notes not tendered and the remainder will be used for general corporate purposes . our borrowing base under our revolving credit facility was automatically reduced to $ 700.0 million in connection with the closing of the 2026 senior notes offering ; however , there was no change to the current maximum lending commitments of $ 650.0 million . tender offer to purchase 2021 senior notes on january 25 , 2018 , we announced the results of our cash tender offer to purchase any and all of the outstanding aggregate principal amount of the 2021 senior notes . an aggregate principal amount of $ 500.6 million ( 91 % ) was tendered and paid , in addition to a make-whole premium of $ 32.6 million and accrued and unpaid interest of $ 1.0 million , on january 25 , 2018. on february 17 , 2018 , we redeemed the approximately $ 49.4 million aggregate principal amount of the 2021 senior notes that remained outstanding after the tender offer and made a cash payment of approximately $ 52.7 million to the remaining holders of the 2021 senior notes , which includes a make-whole premium of $ 3.0 million and accrued and unpaid interest of approximately $ 0.3 million . 56 january 2018 credit facility amendment on january 5 , 2018 , we amended the revolving credit facility to ( i ) increase the borrowing base from $ 525.0 million to $ 750.0 million , subject to the current maximum lending commitments of $ 650.0 million , ( ii ) increase the maximum amount for the letter of credit issued in favor of a purchaser of our crude oil be increased from $ 25.0 million to $ 35.0 million , and ( iii ) amend certain provisions of the credit agreement , including the commitments and allocations of each lender . subsequent to this amendment our borrowing base was reduced in connections with the 2026 senior notes offering . see `` –liquidity and capital resources–revolving credit facility . story_separator_special_tag we retain the flexibility to defer a portion of these planned capital expenditures depending on a variety of factors , including but not limited to the success of our drilling activities , prevailing and anticipated prices for oil , natural gas and ngl , the availability of necessary equipment , infrastructure and capital , the receipt and timing of required regulatory permits and approvals , seasonal conditions , drilling and acquisition costs and the level of participation by other interest owners . any postponement or elimination of our development drilling program could result in a reduction of proved reserve volumes and related standardized measure . these risks could materially affect our business , financial condition and results of operations . adjusted ebitdax adjusted ebitdax is not a measure of net income ( loss ) as determined by united states generally accepted accounting principles ( `` gaap `` ) . adjusted ebitdax is a supplemental non-gaap financial measure that is used by management and external users of our financial statements , such as industry analysts , investors , lenders and rating agencies . we define adjusted ebitdax as net income ( loss ) adjusted for certain cash and non-cash items , including depletion , depreciation , amortization and accretion ( `` dd & a `` ) , impairment of long lived assets , exploration expenses , rig termination fees , acquisition transaction expenses , commodity derivative ( gain ) loss , settlements on commodity derivatives , premiums paid for derivatives that settled during the period , unit and stock-based compensation expense , amortization of debt discount and debt issuance costs , interest expense , income taxes and non-recurring charges . management believes adjusted ebitdax is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure . we exclude the items listed above from net income ( loss ) in arriving at adjusted ebitdax because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets , capital structures and the method by which the assets were acquired . adjusted ebitdax should not be considered as an alternative to , or more meaningful than , net income ( loss ) as determined in accordance with gaap or as an indicator of our operating performance . certain items excluded from adjusted ebitdax are significant components in understanding and assessing a company 's financial performance , such as a company 's cost of capital , hedging strategy and tax structure , as well as the historic costs of depreciable assets , none of which are components of adjusted ebitdax . our computations of adjusted ebitdax may not be comparable to other similarly titled measure of other companies . we believe that adjusted ebitdax is a widely followed measure of operating performance . additionally , our management team believes adjusted ebitdax is useful to an investor in evaluating our financial performance because this measure : is widely used by investors in the oil and natural gas industry to measure a company 's operating performance without regard to items excluded from the calculation of such term , among other factors ; helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure from our operating structure ; and is used by our management team for various purposes , including as a measure of operating performance , in presentations to our board of directors , as a basis for strategic planning and forecasting . adjusted ebitdax is also used by our board of directors as a performance measure in determining executive compensation . 63 the following table presents a reconciliation of adjusted ebitdax to the gaap financial measure of net income ( loss ) for each of the periods indicated ( in thousands ) . replace_table_token_13_th items affecting the comparability of our financial results our historical results of operations for the periods presented may not be comparable , either to each other or to our future results of operations , for the reasons described below : on december 22 , 2017 , the tcja was enacted making significant changes to the internal revenue code . we have calculated our best estimate of the impact of the tcja in our year-end income tax provision in accordance with our understanding of the tcja and guidance available as of the date of this filing . many of the provisions in the tcja have an effective date for years beginning after december 31 , 2017 , including the lowering of the u.s. corporate rate from 35 % to 21 % . however , as a result of the enactment date of december 22 , 2017 , we are required to remeasure the deferred tax assets and liabilities at the rate in which they are expected to reverse . we provisionally recorded an income tax benefit in the amount of $ 23.4 million related to the remeasurement of the net deferred tax liability . in connection with the consummation of the ipo , we issued 185,280 shares of our series a preferred stock to the holders of holdings ' series b preferred units in conversion of such units . the series a preferred stock are entitled to receive a cash dividend of 5.875 % per year , payable quarterly in arrears , and we have the ability to pay such quarterly dividends in kind at a dividend rate of 10 % per year ( decreased proportionately to the extent such quarterly dividends are paid in cash ) . we incur additional general and administrative expenses related to being a public company , including exchange act reporting expenses ; expenses associated with sarbanes-oxley act compliance ; expenses associated with listing on the nasdaq global select market ; incremental independent auditor fees ; incremental legal fees ; investor

net cash used in investing activities . for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 , our net cash used in investing activities increased by $ 395.8 million primarily due to $ 298.5 million in additional acquisition of properties , an increase of $ 52.3 million in cash held in escrow for acquisitions as required under the related purchase and sale agreements , and a reduction of cash received from the sale of property and equipment of $ 2.0 million in 2016 compared to 2015. additionally , there was an increase of $ 43.0 million in cash expended for drilling and completion activities and other property and equipment for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015. net cash provided by financing activities . for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 , our net cash provided by financing activities increased by $ 919.6 million , primarily as a result of an increase of $ 990.0 million in proceeds from the issuance of common stock and members units , net of issuance costs in the year ended december 31 , 2016 compared to december 31 , 2015. additionally , we issued preferred equity securities , net of repayments and dividends , in the amount of $ 170.8 million . these increases were offset by an increase of $ 241.2 million in the net repayment of debt due to the repayment of our credit facility and second lien notes during the year ended december 31 , 2016 with proceeds from our senior notes and ipo . working capital our working capital surplus ( deficit ) was $ ( 236.7 ) million and $ 379.1 million at december 31 , 2017 and 2016 , respectively . our cash balances totaled $ 6.8 million and $ 588.7 million at december 31 , 2017 and december 31 , 2016 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```net cash used in investing activities . for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 , our net cash used in investing activities increased by $ 395.8 million primarily due to $ 298.5 million in additional acquisition of properties , an increase of $ 52.3 million in cash held in escrow for acquisitions as required under the related purchase and sale agreements , and a reduction of cash received from the sale of property and equipment of $ 2.0 million in 2016 compared to 2015. additionally , there was an increase of $ 43.0 million in cash expended for drilling and completion activities and other property and equipment for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015. net cash provided by financing activities . for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 , our net cash provided by financing activities increased by $ 919.6 million , primarily as a result of an increase of $ 990.0 million in proceeds from the issuance of common stock and members units , net of issuance costs in the year ended december 31 , 2016 compared to december 31 , 2015. additionally , we issued preferred equity securities , net of repayments and dividends , in the amount of $ 170.8 million . these increases were offset by an increase of $ 241.2 million in the net repayment of debt due to the repayment of our credit facility and second lien notes during the year ended december 31 , 2016 with proceeds from our senior notes and ipo . working capital our working capital surplus ( deficit ) was $ ( 236.7 ) million and $ 379.1 million at december 31 , 2017 and 2016 , respectively . our cash balances totaled $ 6.8 million and $ 588.7 million at december 31 , 2017 and december 31 , 2016 , respectively .
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 Suspicious Activity Report : for a definition of adjusted ebitdax and a reconciliation to our most directly comparable financial measure calculated and presented in accordance with gaap , please read “ adjusted ebitdax . ” operational overview during the year ended december 31 , 2017 , we continued to focus on growing production while at the same time implementing operational efficiencies to reduce drilling and completion costs . we incurred approximately $ 864.5 million , excluding outstanding elections , in drilling 186 gross ( 137.4 net ) wells with an average lateral length of 1.7 miles and completing 198 gross ( 158.9 net ) wells with an average lateral length of 1.7 miles , all of which were horizontal wells in the dj basin . in addition , we incurred approximately $ 73.2 million of leasehold and surface acreage additions , excluding acquisitions , 55 and approximately $ 10.9 million of midstream additions , excluding acquisitions . our 2018 capital budget anticipates a two to three operated rig drilling program . recent developments recent acquisitions and divestitures asset divestitures to date , we have received multiple agreements to divest various properties for approximately $ 70.0 million . these sales are not expected to have a material impact to our previously announced 2018 guidance and are projected to close during the second quarter of 2018. november 2017 acquisition on november 15 , 2017 , we acquired an unaffiliated oil and gas company 's interest in approximately 36,600 net acres of leasehold and primarily non-producing properties located in arapahoe county , colorado , ( the `` november 2017 acquisition `` ) . upon closing the seller received $ 214.3 million in cash , subject to customary purchase price adjustments . we also recorded a liability of $ 12.2 million for the final settlement payment due in april 2018 in conjunction with the november 2017 acquisition for total consideration of $ 226.5 million . the acquisition provides new development opportunities in the dj basin . july 2017 acquisition on july 7 , 2017 , we acquired an unaffiliated oil and gas company 's interest in approximately 12,500 net acres of leasehold and primarily non-producing properties located in adams county , colorado , along with various other related rights , permits , contracts , equipment , rights of way , gathering systems and other assets . upon closing the seller received total consideration of $ 84.0 million in cash . june 2017 acquisition on june 8 , 2017 , we acquired an unaffiliated oil and gas company 's interests in producing properties located in weld county , colorado . the acquisition increased our interest in existing operated wells . we paid approximately $ 13.4 million in cash consideration in connection with the closing of the acquisition . the acquired interest contributed $ 3.7 million of revenue and $ 3.0 million of earnings for the year ended december 31 , 2017. amendments to revolving credit facility and capital raise 2026 senior notes on january 25 , 2018 , we issued at par $ 750.0 million principal amount of 5.625 % senior notes due february 1 , 2026 ( the `` 2026 senior notes `` and the offering , the `` 2026 senior notes offering `` ) . the 2026 senior notes bear an annual interest rate of 5.625 % . the interest on the 2026 senior notes is payable on february 1 and august 1 of each year commencing on august 1 , 2018. we received net proceeds of approximately $ 737.9 million after deducting discounts and fees . we used $ 534.2 million of the net proceeds from the 2026 senior notes offering to tender for our 2021 senior notes , $ 52.7 million to redeem any 2021 senior notes not tendered and the remainder will be used for general corporate purposes . our borrowing base under our revolving credit facility was automatically reduced to $ 700.0 million in connection with the closing of the 2026 senior notes offering ; however , there was no change to the current maximum lending commitments of $ 650.0 million . tender offer to purchase 2021 senior notes on january 25 , 2018 , we announced the results of our cash tender offer to purchase any and all of the outstanding aggregate principal amount of the 2021 senior notes . an aggregate principal amount of $ 500.6 million ( 91 % ) was tendered and paid , in addition to a make-whole premium of $ 32.6 million and accrued and unpaid interest of $ 1.0 million , on january 25 , 2018. on february 17 , 2018 , we redeemed the approximately $ 49.4 million aggregate principal amount of the 2021 senior notes that remained outstanding after the tender offer and made a cash payment of approximately $ 52.7 million to the remaining holders of the 2021 senior notes , which includes a make-whole premium of $ 3.0 million and accrued and unpaid interest of approximately $ 0.3 million . 56 january 2018 credit facility amendment on january 5 , 2018 , we amended the revolving credit facility to ( i ) increase the borrowing base from $ 525.0 million to $ 750.0 million , subject to the current maximum lending commitments of $ 650.0 million , ( ii ) increase the maximum amount for the letter of credit issued in favor of a purchaser of our crude oil be increased from $ 25.0 million to $ 35.0 million , and ( iii ) amend certain provisions of the credit agreement , including the commitments and allocations of each lender . subsequent to this amendment our borrowing base was reduced in connections with the 2026 senior notes offering . see `` –liquidity and capital resources–revolving credit facility . story_separator_special_tag we retain the flexibility to defer a portion of these planned capital expenditures depending on a variety of factors , including but not limited to the success of our drilling activities , prevailing and anticipated prices for oil , natural gas and ngl , the availability of necessary equipment , infrastructure and capital , the receipt and timing of required regulatory permits and approvals , seasonal conditions , drilling and acquisition costs and the level of participation by other interest owners . any postponement or elimination of our development drilling program could result in a reduction of proved reserve volumes and related standardized measure . these risks could materially affect our business , financial condition and results of operations . adjusted ebitdax adjusted ebitdax is not a measure of net income ( loss ) as determined by united states generally accepted accounting principles ( `` gaap `` ) . adjusted ebitdax is a supplemental non-gaap financial measure that is used by management and external users of our financial statements , such as industry analysts , investors , lenders and rating agencies . we define adjusted ebitdax as net income ( loss ) adjusted for certain cash and non-cash items , including depletion , depreciation , amortization and accretion ( `` dd & a `` ) , impairment of long lived assets , exploration expenses , rig termination fees , acquisition transaction expenses , commodity derivative ( gain ) loss , settlements on commodity derivatives , premiums paid for derivatives that settled during the period , unit and stock-based compensation expense , amortization of debt discount and debt issuance costs , interest expense , income taxes and non-recurring charges . management believes adjusted ebitdax is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure . we exclude the items listed above from net income ( loss ) in arriving at adjusted ebitdax because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets , capital structures and the method by which the assets were acquired . adjusted ebitdax should not be considered as an alternative to , or more meaningful than , net income ( loss ) as determined in accordance with gaap or as an indicator of our operating performance . certain items excluded from adjusted ebitdax are significant components in understanding and assessing a company 's financial performance , such as a company 's cost of capital , hedging strategy and tax structure , as well as the historic costs of depreciable assets , none of which are components of adjusted ebitdax . our computations of adjusted ebitdax may not be comparable to other similarly titled measure of other companies . we believe that adjusted ebitdax is a widely followed measure of operating performance . additionally , our management team believes adjusted ebitdax is useful to an investor in evaluating our financial performance because this measure : is widely used by investors in the oil and natural gas industry to measure a company 's operating performance without regard to items excluded from the calculation of such term , among other factors ; helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure from our operating structure ; and is used by our management team for various purposes , including as a measure of operating performance , in presentations to our board of directors , as a basis for strategic planning and forecasting . adjusted ebitdax is also used by our board of directors as a performance measure in determining executive compensation . 63 the following table presents a reconciliation of adjusted ebitdax to the gaap financial measure of net income ( loss ) for each of the periods indicated ( in thousands ) . replace_table_token_13_th items affecting the comparability of our financial results our historical results of operations for the periods presented may not be comparable , either to each other or to our future results of operations , for the reasons described below : on december 22 , 2017 , the tcja was enacted making significant changes to the internal revenue code . we have calculated our best estimate of the impact of the tcja in our year-end income tax provision in accordance with our understanding of the tcja and guidance available as of the date of this filing . many of the provisions in the tcja have an effective date for years beginning after december 31 , 2017 , including the lowering of the u.s. corporate rate from 35 % to 21 % . however , as a result of the enactment date of december 22 , 2017 , we are required to remeasure the deferred tax assets and liabilities at the rate in which they are expected to reverse . we provisionally recorded an income tax benefit in the amount of $ 23.4 million related to the remeasurement of the net deferred tax liability . in connection with the consummation of the ipo , we issued 185,280 shares of our series a preferred stock to the holders of holdings ' series b preferred units in conversion of such units . the series a preferred stock are entitled to receive a cash dividend of 5.875 % per year , payable quarterly in arrears , and we have the ability to pay such quarterly dividends in kind at a dividend rate of 10 % per year ( decreased proportionately to the extent such quarterly dividends are paid in cash ) . we incur additional general and administrative expenses related to being a public company , including exchange act reporting expenses ; expenses associated with sarbanes-oxley act compliance ; expenses associated with listing on the nasdaq global select market ; incremental independent auditor fees ; incremental legal fees ; investor

