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New words:
adjusted, arrangement, ASU, automatic, baseload, began, conservation, consideration, decision, deducting, desired, earn, enhance, enhanced, extension, Fayette, free, greenhouse, jointly, Lee, longer, MMBtu, month, MSA, NM, notional, Overnight, permanent, personal, predominately, prospectively, publicly, redetermination, regularly, repurchase, repurchased, retrospectively, sensitive, serve, Southeastern, standard, swap, team, temporary, tolling, trailing, transparency, underwriting, unsettled, usage, wildlife, withholding, yearly
Removed:
arising, chose, Codification, committing, Conduit, consent, consummate, count, defend, determinable, employee, expiration, formation, geological, geophysical, hold, indemnification, indemnified, indemnify, influence, insurance, investee, investor, Judgment, limit, line, measurement, meeting, negatively, outlook, portfolio, pursued, recent, relation, representation, revolving, San, suffered, survey, termination, unproved, utility, wholly, workover, written
Financial report summary
?Risks
- Recent regulatory restrictions on use of produced water and a moratorium on new produced water disposal wells in certain areas of the Permian Basin to stem rising seismic activity and earthquakes could increase our operating costs and adversely impact our business, results of operations and financial condition.
- Enhanced scrutiny on ESG matters could have an adverse effect on the Company’s operations.
- We may be unable to quickly adapt to changes in market/investor priorities.
- Part of our strategy involves drilling using the latest available horizontal drilling and completion techniques, which involve risks and uncertainties in their application.
- We may be unable to make accretive acquisitions or successfully integrate acquired businesses or assets, and any inability to do so may disrupt our business and hinder our ability to grow.
- Our undeveloped acreage must be drilled before lease expirations to hold the acreage by production or by other operations. In highly competitive markets for acreage, failure to drill sufficient wells to hold acreage could result in a substantial lease renewal cost or, if renewal is not feasible, loss of our lease and prospective drilling opportunities.
- Our acquisition strategy will subject us to certain risks associated with the inherent uncertainty in evaluating properties for which we have limited information.
- Our future results will suffer if we do not effectively manage our expanded operations.
- Acquisitions of assets or businesses may reduce, rather than increase, our distributable cash flow or may disrupt our business.
- Any significant reduction in our borrowing base under our Credit Facility as a result of the periodic borrowing base redeterminations or otherwise may negatively impact our ability to fund our operations.
- We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our debt arrangements, which may not be successful.
- Drilling for and producing oil and natural gas are high risk activities with many uncertainties that could adversely affect our business, financial condition or results of operations.
- Negative public perception regarding us and/or our industry could have an adverse effect on our operations.
- Our business could be negatively affected by security threats, including cybersecurity threats, and other disruptions.
- Our executive officers, directors and principal stockholders have the ability to control or significantly influence all matters submitted to the Company’s stockholders for approval.
Management Discussion
- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
- We operate in the upstream segment of the oil and natural gas industry and are focused on steadily growing conventional reserves, production and cash flow through the acquisition, exploration, development and production of oil, natural gas and NGLs primarily in the Permian Basin in West Texas and Southeastern New Mexico. We intend to continue to develop our reserves and increase production through development drilling and exploration activities and through acquisitions that meet our strategic and financial objectives.
- •Increased total net equivalent production by 55% to 20.4 MBoe/d for the three months ended March 31, 2024, as compared to the three months ended March 31, 2023