ACQUISITIONS On March 1, 2019 , we completed the acquisition of Resolute Energy Corporation, an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin area of the Permian Basin of west Texas. The principal factors considered by management in making this acquisition included: (i) our expectation that Resolutes assets attractive returns are competitive with those in our existing portfolio, (ii) the opportunity to apply our experience and learnings from already operating in this area to generating productivity gains from Resolutes properties, (iii) the ability to increase our acreage position in the Delaware Basin, and (iv) the expectation that the acquisition will be financially accretive. We acquired 100% of the outstanding common shares and voting interests of Resolute in a cash and stock transaction. The acquisition date fair value of the consideration transferred totaled $820.3 million , which consisted of cash, common stock, and a newly created series of preferred stock (see Note 5 for more information on the preferred stock) as follows: (in thousands) Fair Value of Consideration Transferred Cash $ 325,677 Common stock (5,652 shares issued) 413,015 Preferred stock (63 shares issued) 81,620 $ 820,312 The fair value of the common stock issued as part of the consideration was determined on the basis of the closing market price of Cimarex common stock on the acquisition date. The fair value of the preferred stock issued as part of the consideration was determined using a multiple probability simulation model. Preliminary Purchase Price Allocation The Resolute acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the preliminary allocation of the Resolute purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded to goodwill. The table also presents the adjustments to the preliminary purchase price allocation recorded through September 30, 2019 . The most significant adjustment was made to the fair value of the unproved oil and gas properties acquired based on the finalization of the quantity of acres acquired. The tax effect of this adjustment reduced the related deferred income taxes. The remaining adjustments were working capital adjustments. The offset to all of the adjustments is goodwill. In conjunction with the adjustment to the unproved oil and gas properties balance, capitalized interest was reduced by $0.4 million in the current period to adjust capitalized interest recognized in previous periods. The purchase price allocation remains preliminary as certain data necessary to complete it is not yet available, and includes, but is not limited to, finalization of the fair value of certain assets and liabilities, including pre-acquisition working capital balances and completion of the final Resolute tax returns that will provide the underlying tax basis of Resolutes assets and liabilities and net operating losses. We expect to complete the purchase price allocation during the 12 -month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate. The following table sets forth the preliminary purchase price allocation: (in thousands) March 1, 2019 Adjustments September 30, 2019 Cash $ 41,236 $  $ 41,236 Accounts receivable 50,739 1,838 52,577 Other current assets 13,280 (792 ) 12,488 Proved oil and gas properties 692,600  692,600 Unproved oil and gas properties 1,054,200 (30,314 ) 1,023,886 Fixed assets 5,355 (32 ) 5,323 Goodwill 107,341 24,263 131,604 Other assets 142  142 Current liabilities (202,735 ) (1,862 ) (204,597 ) Long-term debt (870,000 )  (870,000 ) Deferred income taxes (62,409 ) 6,899 (55,510 ) Asset retirement obligation (9,437 )  (9,437 ) Total identifiable net assets $ 820,312 $  $ 820,312 In connection with the acquisition, we assumed, and immediately repaid, $870.0 million principal amount of long-term debt consisting of $600.0 million of senior notes and $270.0 million of credit facility borrowings. On March 1, 2019 , we repaid Resolutes credit facility borrowings, delivered a notice of optional redemption of Resolutes senior notes for an April 1, 2019 redemption date, and irrevocably deposited with a trustee the full amount of funds to repay the aggregate outstanding senior notes principal balance plus accrued and unpaid interest, incurring a $4.3 million loss on early extinguishment of debt. The cash consideration transferred and the repayment of Resolutes long-term debt was funded using cash on hand and borrowings on our Credit Facility. We subsequently repaid the borrowings on our Credit Facility using the net proceeds from the March 8, 2019 issuance of $500 million aggregate principal amount of 4.375% senior unsecured notes (see Note 2 for more information on our debt issuance). Goodwill of $131.6 million has been recognized principally as a result of recording net deferred tax liabilities arising from the difference between the tax basis and the purchase price allocated to Resolutes assets and liabilities, and anticipated opportunities for cost savings through administrative and operational synergies. Goodwill is not expected to be deductible for tax purposes. Acquisition-related costs incurred in 2019 were $8.4 million . These costs, which are comprised primarily of advisory, legal, and other professional and consulting fees, are included in the Other operating expense, net line item on our Condensed Consolidated Statements of Operations and Comprehensive Income. The results of Resolutes operations have been included in our consolidated financial statements since the March 1, 2019 acquisition date. The amount of revenue and direct operating expenses resulting from the acquisition included in our Condensed Consolidated Statements of Operations and Comprehensive Income from March 1, 2019 through September 30, 2019 is $154.1 million and $36.5 million , respectively. Pro Forma Financial Information The following supplemental pro forma information for the three and nine months ended September 30, 2019 and 2018 has been prepared to give effect to the Resolute acquisition as if it had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including (i) the depletion of the combined companys proved oil and gas properties, (ii) the capitalization of interest expense, and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by Cimarex of $8.4 million and transaction-related costs incurred by Resolute of $60.0 million . The pro forma results of operations do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by Cimarex to integrate the Resolute assets. The pro forma financial data has not been adjusted to reflect any other acquisitions or dispositions made during the periods presented as their results were not deemed material. The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2018 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities, and other factors. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Revenue $ 582,305 $ 691,140 $ 1,758,861 $ 1,954,550 Net income $ 40,536 $ 148,620 $ 162,493 $ 484,173 Net income per common share: Basic $ 0.39 $ 1.47 $ 1.57 $ 4.81 Diluted $ 0.39 $ 1.47 $ 1.57 $ 4.80