Battalion Oil (BATL) 10-K 30 Mar 23 2022 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Mar. 27, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Entity Tax Identification Number	20-0700684
Entity Registrant Name	Battalion Oil Corp
Entity Incorporation, State or Country Code	DE
Entity File Number	001-35467
Entity Address, Address Line One	3505 West Sam Houston Parkway North
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77043
City Area Code	832
Local Phone Number	538-0300
Title of 12(b) Security	Common Stock par value $0.0001
Trading Symbol	BATL
Security Exchange Name	NYSEAMER
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 31.9
Entity Common Stock, Shares Outstanding		16,450,407
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001282648
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Firm ID	34
Auditor Location	Houston, Texas

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 357,401	$ 284,154
Other	1,663	1,051
Total operating revenues	359,064	285,205
Production:
Lease operating	48,095	43,977
Workover and other	6,683	3,224
Taxes other than income	18,483	12,312
Gathering and other	64,117	60,396
General and administrative	17,635	16,514
Depletion, depreciation and accretion	51,915	45,408
Total operating expenses	206,928	181,831
Income (loss) from operations	152,136	103,374
Other income (expenses):
Net gain (loss) on derivative contracts	(110,006)	(125,619)
Interest expense and other	(23,591)	(8,018)
Gain (loss) on extinguishment of debt		1,946
Total other income (expenses)	(133,597)	(131,691)
Income (loss) before income taxes	18,539	(28,317)
Income tax benefit (provision)	0	0
Net income (loss)	$ 18,539	$ (28,317)
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ 1.14	$ (1.74)
Diluted (in dollars per share)	$ 1.12	$ (1.74)
Weighted average common shares outstanding:
Basic (in shares)	16,331	16,261
Diluted (in shares)	16,510	16,261
Oil
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 267,690	$ 213,512
Natural gas
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	46,210	35,248
NGLs
Oil, natural gas and natural gas liquids sales:
Total oil, natural gas and natural gas liquids sales	$ 43,501	$ 35,394

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 32,726	$ 46,864
Accounts receivable, net	37,974	36,806
Assets from derivative contracts	16,244	1,383
Restricted cash	90	1,495
Prepaids and other	1,131	1,366
Total current assets	88,165	87,914
Oil and natural gas properties (full cost method):
Subject to depletion	713,585	569,886
Unevaluated	62,621	64,305
Gross oil and natural gas properties	776,206	634,191
Less - accumulated depletion	(390,796)	(339,776)
Net oil and natural gas properties	385,410	294,415
Other operating property and equipment:
Other operating property and equipment	4,434	3,467
Less - accumulated depreciation	(1,209)	(1,035)
Net other operating property and equipment	3,225	2,432
Other noncurrent assets:
Assets from derivative contracts	5,379	2,515
Operating lease right of use assets	352	721
Other assets	2,827	2,270
Total assets	485,358	390,267
Current liabilities:
Accounts payable and accrued liabilities	100,095	62,826
Liabilities from derivative contracts	29,286	58,322
Current portion of long-term debt	35,067	85
Operating lease liabilities	352	369
Asset retirement obligations	225
Total current liabilities	165,025	121,602
Long-term debt, net	182,676	181,565
Other noncurrent liabilities:
Liabilities from derivative contracts	33,649	7,144
Asset retirement obligations	15,244	11,896
Operating lease liabilities		352
Other	4,136	4,003
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,344,815 and 16,273,913 shares issued and outstanding as of December 31, 2022 and 2021, respectively	2	2
Additional paid-in capital	334,571	332,187
Retained earnings (accumulated deficit)	(249,945)	(268,484)
Total stockholders' equity	84,628	63,705
Total liabilities and stockholders' equity	$ 485,358	$ 390,267

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Stockholders' equity:
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	16,344,815	16,273,913
Common stock, shares outstanding	16,344,815	16,273,913

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Total
Balances at Dec. 31, 2020	$ 2	$ 330,123	$ (240,167)	$ 89,958
Balances (in shares) at Dec. 31, 2020	16,204
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(28,317)	$ (28,317)
Long-term incentive plan vestings (in shares)	96			95,994
Tax withholding on vesting of restricted stock units		(290)		$ (290)
Tax withholding on vesting of restricted stock units (in shares)	(26)
Stock-based compensation		2,354		2,354
Balances at Dec. 31, 2021	$ 2	332,187	(268,484)	63,705
Balances (in shares) at Dec. 31, 2021	16,274
Increase (Decrease) in Stockholders' Equity
Net income (loss)			18,539	$ 18,539
Long-term incentive plan vestings (in shares)	98			98,121
Tax withholding on vesting of restricted stock units		(493)		$ (493)
Tax withholding on vesting of restricted stock units (in shares)	(28)
Stock-based compensation and other		2,877		2,877
Stock-based compensation and other (in shares)	1
Balances at Dec. 31, 2022	$ 2	$ 334,571	$ (249,945)	$ 84,628
Balances (in shares) at Dec. 31, 2022	16,345

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 18,539	$ (28,317)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and accretion	51,915	45,408
Stock-based compensation, net	2,210	2,010
Unrealized loss (gain) on derivative contracts	(20,256)	47,721
Amortization of deferred loan costs	5,448	379
Reorganization items, net	(744)
Loss (gain) on extinguishment of debt		(1,946)
Accrued settlements on derivative contracts	4,302	7,030
Change in fair value of embedded derivative liability	(1,819)
Other expense (income)	(77)	(567)
Change in assets and liabilities:
Accounts receivable	594	(4,647)
Prepaids and other	234	636
Accounts payable and accrued liabilities	18,455	865
Net cash provided by (used in) operating activities	78,801	68,572
Cash flows from investing activities:
Oil and natural gas capital expenditures	(125,465)	(52,557)
Proceeds received from sales of oil and natural gas assets	332	947
Other operating property and equipment capital expenditures	(1,160)	(371)
Other	163	68
Net cash provided by (used in) investing activities	(126,130)	(51,913)
Cash flows from financing activities:
Proceeds from borrowings	35,200	374,000
Repayments of borrowings	(95)	(332,085)
Payment of deferred financing costs	(2,887)	(14,220)
Other	(432)	(290)
Net cash provided by (used in) financing activities	31,786	27,405
Net increase (decrease) in cash, cash equivalents and restricted cash	(15,543)	44,064
Cash, cash equivalents and restricted cash at beginning of period	48,359	4,295
Cash, cash equivalents and restricted cash at end of period	32,816	48,359
Supplemental cash flow information:
Cash paid (received) for interest	19,933	8,485
Cash paid for reorganization items	744
Disclosure of non-cash investing and financing activities:
Asset retirement obligations	3,692	836
Accrued capital expenditures	$ 14,883	$ (3,733)

SUMMARY OF SIGNIFICANT EVENTS A

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES	BATTALION OIL CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation Battalion Oil Corporation (Battalion or the Company) is the successor reporting company to Halcón Resources Corporation (Halcón). On January 21, 2020, Battalion filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to effect a change of the Company’s corporate name from Halcón Resources Corporation to Battalion Oil Corporation. Battalion is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one reportable segment which focuses on oil and natural gas acquisition, production, exploration and development. Allocation of capital is made across the Company’s entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. The Company has evaluated events and transactions through the date of issuance of this report in conjunction with the preparation of these consolidated financial statements. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, and fair value estimates. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted 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. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s consolidated financial statement and the results presented in this Form 10-K are not necessarily indicative of future operating results. Risk and Uncertainties Supply chain issues. In periods of increasing commodity prices, we continue to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business. During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. Commodity Prices . Despite lower commodity prices in 2020, widespread availability of COVID-19 vaccines during 2021 combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates, tightening monetary policies, or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. For further information regarding the actual and potential impacts of the supply chain issues and the potential impact of declines in commodity prices on the Company, see “Risk Factors” in Item 1A of this Annual Report on Form 10-K. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Amounts in the consolidated balance sheets included in “ Cash and cash equivalents Restricted cash ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 32,726 ​ $ 46,864 Restricted cash ​ ​ 90 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 32,816 ​ $ 48,359 ​ Restricted cash consists primarily of funds to collateralize letters of credit outstanding. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. Payment of our accounts receivable is typically received within 30-60 days. The Company’s historical credit losses have been de minimis and are expected to remain so in the future assuming no substantial changes to the business or creditworthiness of the Company’s counterparties. Oil and Natural Gas Properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as prescribed by the United States Securities and Exchange Commission (SEC). Accordingly, all costs incurred in the acquisition, exploration and development of proved and unproved oil and natural gas properties, including the costs of abandoned properties, treating equipment and gathering support facilities, dry holes, geophysical costs, and annual lease rentals are capitalized. All general and administrative corporate costs unrelated to drilling activities are expensed as incurred. Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to estimated proved reserves would significantly change. Depletion of evaluated oil and natural gas properties is computed on the units of production method based on estimated proved reserves. The net capitalized costs of evaluated oil and natural gas properties are subject to a full cost ceiling limitation in which the costs are not allowed to exceed their related estimated future net revenues discounted at 10%, net of tax considerations. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The Company reviews its unevaluated properties at the end of each quarter to determine whether the costs incurred should be transferred to the full cost pool and thereby subject to amortization. Investments in unevaluated oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress, qualify for interest capitalization. The Company determines capitalized interest, when applicable, by multiplying the Company’s weighted-average borrowing cost on debt by the average amount of qualifying costs incurred that were excluded from the full cost pool; however, the amount of capitalized interest cannot exceed the amount of gross interest expense incurred in any given period. The Company’s accounting policy on the capitalization of interest establishes thresholds for the determination of a development project for the purpose of interest capitalization. Additionally, the Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation. Other Operating Property and Equipment Other operating property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: buildings, twenty years; automobiles and computers fixtures, furniture and equipment eight The Company reviews its other operating property and equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. The purchasers of the Company’s oil and natural gas production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. In 2022, three individual purchasers of the Company’s production, Western Refining Company L.P., Sunoco Inc. and Targa Resources Inc., each accounted for more than 10% of more than The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At December 31, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement. Risk Management Activities The Company follows ASC 815, Derivatives and Hedging “Net gain (loss) on derivative contracts” Income Taxes The Company accounts for income taxes using the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company classifies all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the consolidated balance sheets. The evaluation of a tax position in accordance with ASC 740 is a two-step process. The first step is a recognition process to determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more likely than not recognition threshold, it is presumed that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit/expense to recognize in the consolidated financial statements. The tax position is measured at the largest amount of benefit/expense that is more likely than not of being realized upon ultimate settlement. Asset Retirement Obligations The Company records asset retirement obligations to reflect the Company’s legal obligations related to future plugging and abandonment of its oil and natural gas wells, treating equipment and gathering support facilities. The Company estimates the expected cash flows associated with the obligation and discounts the amounts using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should these indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will accordingly update its assessment. Additional retirement obligations increase the liability associated with new oil and natural gas wells, treating equipment and gathering support facilities as these obligations are incurred. The Company records the asset retirement obligation (ARO) liability on the consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties” “Depletion, depreciation and accretion” Recently Issued Accounting Pronouncements In March 2020, the FASB issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
LEASES
LEASES	2. LEASES The Company leases equipment and office space pursuant to operating leases. We determine if an arrangement is or contains a lease at inception and combine lease and nonlease components, when fixed, for all lease contracts. Nonlease components include common area maintenance charges on office leases and, when applicable, services associated with equipment leases. Operating leases with a lease term greater than 12 months where the Company is the lessee are included in “Operating lease right of use assets” “Operating lease liabilities” on the consolidated balance sheets and recorded based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. The Company does not recognize right of use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, but rather recognizes the lease payments associated with its short-term leases when incurred. Payments due under the lease contracts include fixed payments plus, in some instances, variable payments. Variable lease payments, if applicable, associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments, when applicable, are presented as "Gathering and other” "General and administrative” The “Operating lease right of use assets” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ​ ​ 2022 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 391 ​ $ 444 ​ Short-term lease costs ​ ​ 7,972 ​ ​ 3,152 ​ Variable lease costs ​ ​ — ​ ​ 375 ​ Total lease costs ​ $ 8,363 ​ $ 3,971 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 391 ​ $ 537 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ 841 ​ Weighted-average remaining lease term - operating leases ​ ​ 0.9 years ​ 1.9 years Weighted-average discount rate - operating leases ​ ​ 4.29 % ​ 4.29 % ​ Future minimum lease payments associated with the Company’s non-cancellable operating leases for office space and equipment as of December 31, 2022, are presented in the table below (in thousands): ​ ​ ​ ​ ​ ​ December 31, 2022 2023 ​ $ 359 Total operating lease payments ​ ​ 359 Less: discount to present value ​ ​ (7) Total operating lease liabilities ​ ​ 352 Less: current operating lease liabilities ​ ​ 352 Noncurrent operating lease liabilities ​ $ — ​

OPERATING REVENUES

OPERATING REVENUES	12 Months Ended
	Dec. 31, 2022
OPERATING REVENUES
OPERATING REVENUES	3. OPERATING REVENUES Substantially all of the Company’s oil, natural gas, and NGL revenues are derived from the Delaware Basin in Pecos, Reeves, Ward and Winkler Counties, Texas. Revenue is presented disaggregated in the statement of operations by major product, and depicts how the nature, timing, and uncertainty of revenue and cash flows are affected by economic factors in the Company’s single basin operations. Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when the reporting organization satisfies a performance obligation. Revenues from the sale of crude oil, natural gas and natural gas liquids are recognized, at a point in time, when a performance obligation is satisfied by the transfer of control of each unit (e.g. barrel of oil, Mcf of gas) of commodity to the customer. Revenue is measured based on contract consideration allocated to each unit of commodity and excludes amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Since the Company’s performance obligations have been satisfied and an unconditional right to consideration exists as of the balance sheet date, the Company recognized amounts due from contracts with customers of $34.0 million and $35.1 million as of December 31, 2022 and 2021, respectively, as “Accounts receivable, net” on the consolidated balance sheets. The Company utilizes the practical expedient exempting the disclosure of the transaction price of unsatisfied performance obligations for (i) contracts with an original expected duration of one year or less and (ii) contracts where variable consideration is allocated entirely to a wholly unsatisfied performance obligation (each unit of product typically represents a separate performance obligation, and therefore, future volumes under the Company’s long-term contracts are wholly unsatisfied). We record revenue in the month our production is delivered to the purchaser. However, to the extent settlement statements and/or payments are not available, we are required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. We record any differences, which historically have not been significant, between the actual amounts ultimately received and the original estimates in the period they become finalized. Oil Sales The Company recognizes revenue when control of the crude oil transfers at the delivery point at the net price received. Generally, this occurs when the Company (i) sells its crude oil production at the wellhead where control of the crude oil transfers to the customer at an index price, averaged over the daily settlement prices for a production month, and adjusted for pricing differentials and other deduction or (ii) when delivered to the customer at a contractual delivery point at which the customer takes custody, title and risk of loss of the product. The Company receives a specified index price from the customer, averaged over the daily settlement prices for a production month, and net of applicable market-related adjustments. Settlement statements for the Company’s crude oil production are typically received within the month following the date of production and therefore the amount of production delivered to the customer and the price that will be received for that production are known at the time the revenue is recorded. Natural Gas and NGL Sales The Company evaluates its natural gas gathering and processing arrangements in place with midstream companies to determine when control of the natural gas is transferred. Under contracts where it is determined that control of the natural gas transfers at the wellhead, any fees incurred to gather or process the unprocessed natural gas are treated as a reduction of the sales price of unprocessed natural gas, and therefore revenues from such transactions are presented on a net basis. Under contracts where it is determined that control of the natural gas transfers at the tailgate of the midstream entity’s processing plant, revenues are presented on a gross basis for amounts expected to be received from the midstream company or third party purchasers through the gathering and treating process and presented as “Natural gas” “Natural gas liquids” “Gathering and other” Under certain contracts, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant. The Company then sells the products to a customer at contractual delivery points at prices based on an index. In these instances, revenues are presented on a gross basis and any fees incurred to gather, process or transport the commodities are presented separately as “Gathering and other” on the consolidated statements of operations. The majority of the Company’s natural gas and natural gas liquids prices are based on daily average pricing for the month. Settlement statements for the Company’s natural gas and natural gas liquids production are typically received 30 days after the date of production and therefore the Company estimates the amount of production delivered to the customer and the price that will be received for that production. Historically, differences between the Company’s estimates and the actual revenue received have not been material.

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	12 Months Ended
	Dec. 31, 2022
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES	4. OIL AND NATURAL GAS PROPERTIES Oil and natural gas properties as of December 31, 2022 and 2021 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Subject to depletion ​ $ 713,585 ​ $ 569,886 Not subject to depletion: ​ ​ ​ ​ ​ ​ Other capital costs: ​ ​ ​ ​ ​ Incurred in 2022 ​ ​ 1,427 ​ ​ — Incurred in 2021 ​ ​ 1,427 ​ ​ 1,427 Incurred in 2020 ​ ​ 983 ​ ​ 983 Incurred in 2019 (1) ​ ​ 58,784 ​ ​ 61,895 Total not subject to depletion ​ ​ 62,621 ​ ​ 64,305 Gross oil and natural gas properties ​ ​ 776,206 ​ ​ 634,191 Less accumulated depletion ​ ​ (390,796) ​ ​ (339,776) Net oil and natural gas properties ​ $ 385,410 ​ $ 294,415 (1) In 2019, with the adoption of fresh-start accounting, the Company’s unevaluated properties were recorded at fair value. The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas reserves (including such costs as leasehold acquisition costs, geological expenditures, treating equipment and gathering support facilities costs, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. Depletion for oil and natural gas properties is calculated using the unit of production method, which depletes the capitalized costs of evaluated properties plus future development costs based on the ratio of production for the current period to total reserve volumes of evaluated properties as of the beginning of the period. Depletion expense was $51.0 million and $44.6 million for the year ended December 31, 2022 and 2021, respectively. Depletion expense is recorded in “Depletion, depreciation and accretion” The net capitalized costs of evaluated oil and natural gas properties are subject to a full cost ceiling limitation in which the costs are not allowed to exceed their related estimated future net revenues discounted at 10%, net of tax considerations. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. The ceiling test value of the Company’s reserves was calculated based on the following prices: ​ ​ ​ ​ ​ ​ ​ ​ ​ West Texas Intermediate (per barrel) (1) Henry Hub (per MMBtu) (1) December 31, 2022 ​ $ 94.14 ​ $ 6.36 December 31, 2021 ​ ​ 66.55 ​ $ 3.60 (1) Unweighted average of the first day of the 12-months ended spot price, adjusted by lease or field for quality, transportation fees, and regional price differentials. The Company's net book value of oil and natural gas properties for both 2022 and 2021 did not exceed the ceiling amount. Changes in commodity prices, production rates, levels of reserves, future development costs, transfers of unevaluated properties to the full cost pool, capital spending, and other factors will determine the Company’s ceiling test calculation and impairment analyses in future periods. ​

DEBT

DEBT	12 Months Ended
	Dec. 31, 2022
DEBT
DEBT	5. DEBT As of December 31, 2022 and 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Term loan credit facility ​ $ 235,000 ​ $ 200,000 Other ​ ​ 190 ​ ​ 85 Total debt (Face Value) ​ ​ 235,190 ​ ​ 200,085 Less: ​ ​ ​ ​ ​ ​ Current Portion of Long-Term Debt (1) ​ ​ (35,067) ​ ​ (85) Other (2) ​ ​ (17,447) ​ ​ (18,435) Long-Term Debt, net ​ $ 182,676 ​ $ 181,565 (1) As of December 31, 2022, amount primarily reflects amortization payments of $35.0 million under the Amended Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Paycheck Protection Program Loan. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $13.0 million and $14.2 million at December 31, 2022 and December 31, 2021, respectively, but also include amounts associated with an embedded derivative separately presented and further described in Note 6. Fair Value Measurements. For the years ended December 31, 2022 and 2021, we recorded approximately $5.4 million and $0.4 million, respectively, in interest expense reflecting the amortization/accretion of these amounts. Term Loan Credit Facility ​ ​ ​ ● Current Ratio . Our Current Ratio financial covenant decreased to 0.90 to 1.00 as of September 30, 2022, to 0.70 to 1.00 for the quarter ended December 31, 2022, and to 0.75 to 1.00 for the quarter ended March 31, 2023, returning to 1.00 to 1.00 for the quarter ended June 30, 2023 and for each fiscal quarter thereafter as further described below. ​ ● Interest Rate. We converted our benchmark interest rate from LIBOR to a Secured Overnight Financing Rate (SOFR) plus 0.15% and increased the applicable margin on borrowings by 0.50% , such that borrowings under the Amended Term Loan Agreement will now bear interest at a rate per annum equal to the SOFR benchmark rate plus 7.65% . ​ ● Prepayment Premium. We reset the prepayment periods (for outstanding borrowings) beginning on the amendment date with the following prepayment premiums, subject to the conditions described in the table and further discussion below: ​ ​ ​ ​ ​ Period (after amendment date) ​ ​ Premium Months 0 - 12 ​ ​ Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 ​ ​ 2.00% Thereafter ​ ​ 0.00% ​ ​ ​ . The weighted average interest rate on our borrowings for the year ended December 31, 2022 was approximately ​ ​ The Company is required to make scheduled amortization payments in the aggregate amount of $120.0 million from the fiscal quarter ending March 31, 2023 through the fiscal quarter ending September 30, 2025. Amounts outstanding under the Amended Term Loan Agreement are guaranteed by certain of the Borrower’s direct and indirect subsidiaries and secured by a security interest in substantially all of the assets of the Borrower and such direct and indirect subsidiaries, and of the equity interests of the Borrower held by the Company. As part of the Amended Term Loan Agreement there are certain restrictions on the transfer of assets, including cash, to Battalion from the guarantor subsidiaries. ​ ● an Asset Coverage Ratio of not less than 1.80 to 1.00 as of December 31, 2022 and each fiscal quarter thereafter; ● Total Net Leverage Ratio of not greater than 3.00 to 1.00 as of December 31, 2022, 2.75 to 1.00 as of March 31, 2023 and 2.50 to 1.00 as of each fiscal quarter thereafter; and ● a Current Ratio of not less than 1.00 to 1.00, each determined as of the last day of any fiscal quarter period, other than as amended in November 2022 to 0.70 to 1.00 as of December 31, 2022, and to 0.75 to 1.00 as of March 31, 2023. ​ As of December 31, 2022, the Company was in compliance with the financial covenants under the Amended Term Loan Agreement. ​ ​ “Other noncurrent liabilities.” “Interest expense and other” Fair Value Measurements ​ Debt Maturities Aggregate maturities required on debt at December 31, 2022 due in future years are as follows (in thousands): ​ ​ ​ ​ ​ 2023 $ 35,067 2024 ​ ​ 50,067 2025 ​ ​ 150,056 Total ​ $ 235,190 ​

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS The Company’s determination of fair value incorporates not only the credit standing of the counterparties involved in transactions with the Company resulting in receivables on the Company’s consolidated balance sheets, but also the impact of the Company’s nonperformance risk on its own liabilities. Fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company separates the fair value of its financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no transfers ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 21,623 ​ $ — ​ $ 21,623 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 62,935 ​ $ — ​ $ 62,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 65,466 ​ $ — ​ $ 65,466 ​ Derivative contracts listed above as Level 2 include fixed-price swaps, collars, puts, calls, basis swaps and WTI NYMEX rolls that are carried at fair value. The Company records the net change in the fair value of these positions in “Net gain (loss) on derivative contracts” “Derivative and Hedging Activities,” The Company’s derivative contracts are with major financial institutions with investment grade credit ratings which are believed to have minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance. As discussed in Note 5, “Debt,” “Other noncurrent liabilities.” Interest expense and other ’ on the consolidated statement of operations. The valuation of the Change of Control Call Option includes significant inputs such as the timing and probability of discrete potential exit scenarios, forward interest rate curves, and discount rates based on implied and market yields. The following table sets forth a reconciliation of the changes in fair value of the Change of Control Call Option classified as Level 3 in the fair value hierarchy (in thousands): ​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2021 ​ $ 4,003 Change in fair value ​ ​ 133 Balance at December 31, 2022 ​ $ 4,136 ​ Estimated fair value amounts have been determined at discrete points in time based on relevant market information. The estimated fair value of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximates their carrying value due to their short- term nature. The estimated fair value of borrowings under the Company’s Amended Term Loan Agreement approximate carrying value because the interest rates approximate current market rates. ​ The Company follows the provisions of ASC 820, Fair Value Measurement “Asset Retirement Obligations,”

DERIVATIVE AND HEDGING ACTIVITI

DERIVATIVE AND HEDGING ACTIVITIES	12 Months Ended
	Dec. 31, 2022
DERIVATIVE AND HEDGING ACTIVITIES
DERIVATIVE AND HEDGING ACTIVITIES	7. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk and interest rate risk. In accordance with the Company’s policy and the requirements under the Term Loan Agreement, it generally hedges a substantial, but varying, portion of anticipated oil and natural gas production for future periods. Derivatives are carried at fair value on the consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the consolidated statements of operations for the period in which the change occurs. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in “Net gain (loss) on derivative contracts” It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial or commodity hedging institutions deemed by management as competent and competitive market makers. As of December 31, 2022, the Company did not post collateral under any of its derivative contracts as they are secured under the Company’s Amended Term Loan Agreement. The Company’s crude oil and natural gas derivative positions at any point in time may consist of fixed-price swaps, costless put/call collars, basis swaps and WTI NYMEX rolls further described as follows: ● Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. ● Costless collars consist of a sold call, which establishes a maximum price the Company will receive for the volumes under contract and a purchased put that establishes a minimum price and are generally utilized less frequently by the Company than fixed-price swaps. ● Basis swaps effectively lock in a price differential between regional prices (i.e. Midland) where the product is sold and the relevant pricing index under which the oil production is hedged (i.e. Cushing). ● WTI NYMEX roll agreements account for pricing adjustments to the trade month versus the delivery month for contract pricing. The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ​ ​ Years Ended December 31, Balance sheet location 2022 2021 Balance sheet location 2022 2021 Current assets ​ $ 16,244 ​ $ 1,383 ​ Current liabilities ​ $ (29,286) ​ $ (58,322) Other noncurrent assets ​ ​ 5,379 ​ ​ 2,515 ​ Other noncurrent liabilities ​ ​ (33,649) ​ ​ (7,144) ​ ​ $ 21,623 ​ $ 3,898 ​ ​ ​ $ (62,935) ​ $ (65,466) ​ The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s consolidated statements of operations (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain or (loss) ​ ​ ​ ​ ​ ​ on derivative contracts on ​ Years Ended December 31, Type Statement of Operations 2022 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) ​ Other income (expenses) ​ $ 20,256 ​ $ (47,721) Realized gain (loss) ​ Other income (expenses) ​ ​ (130,262) ​ ​ (77,898) Total net gain (loss) ​ ​ ​ $ (110,006) ​ $ (125,619) ​ At December 31, 2022, the Company had the following open crude oil and natural gas derivative contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2023 ​ 2024 ​ 2025 ​ ​ 2026 Crude oil: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,430,183 ​ ​ 1,812,285 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 69.17 ​ $ 63.75 ​ $ 60.88 ​ $ 64.19 Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,586,562 ​ ​ 1,810,056 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 0.40 ​ $ 0.27 ​ $ 0.16 ​ $ 0.09 WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,490,458 ​ ​ 1,733,719 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 0.58 ​ $ 0.30 ​ $ 0.13 ​ $ 0.18 Natural gas: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 5,236,373 ​ ​ 4,271,034 ​ ​ 3,451,713 ​ ​ 1,829,816 Weighted average price ​ $ 3.75 ​ $ 3.54 ​ $ 3.33 ​ $ 4.03 Two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,545,828 ​ ​ 2,167,139 ​ ​ 1,052,153 ​ ​ 895,562 Weighted average price (call) ​ $ 6.19 ​ $ 5.17 ​ $ 5.05 ​ $ 4.86 Weighted average price (put) ​ $ 4.50 ​ $ 3.74 ​ $ 3.72 ​ $ 4.03 Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 7,565,173 ​ ​ 6,438,122 ​ ​ 4,477,126 ​ ​ 2,725,378 Weighted average price ​ $ (0.83) ​ $ (0.85) ​ $ (0.64) ​ $ (0.75) ​ The Company presents the fair value of its derivative contracts at the gross amounts in the consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts at December 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities ​ ​ Years Ended December 31, ​ Years Ended December 31, Offsetting of Derivative Assets and Liabilities 2022 ​ 2021 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts - Consolidated Balance Sheet ​ $ 21,623 ​ $ 3,898 ​ $ (62,935) ​ $ (65,466) Amounts Not Offset - Consolidated Balance Sheet ​ ​ (20,997) ​ ​ (3,898) ​ ​ 20,997 ​ ​ 3,898 Net amount ​ $ 626 ​ $ — ​ $ (41,938) ​ $ (61,568) ​ The Company enters into an International Swap Dealers Association Master Agreement (ISDA) with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	12 Months Ended
	Dec. 31, 2022
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS	8. ASSET RETIREMENT OBLIGATIONS The Company records an asset retirement obligation (ARO) on oil and natural gas properties when it can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records asset retirement obligations to reflect the Company’s legal obligations related to future plugging and abandonment of its oil and natural gas wells, treating equipment and gathering support facilities. The Company recorded the following activity related to its ARO liability (inclusive of the current portion) (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2022 2021 Asset retirement obligations at beginning of the period ​ $ 11,896 ​ $ 10,583 Accretion expense ​ ​ 528 ​ ​ 477 Liabilities incurred ​ ​ 151 ​ ​ 111 Liabilities settled/divested ​ ​ (647) ​ ​ — Revisions to estimate ​ ​ 3,541 ​ ​ 725 Asset retirement obligations at end of period ​ ​ 15,469 ​ ​ 11,896 Less: current asset retirement obligations ​ ​ (225) ​ ​ — Long-term asset retirement obligations at the end of the period ​ $ 15,244 ​ $ 11,896 ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Commitments As of December 31, 2022, the Company has an active drilling rig commitment of approximately $2.7 million that will be incurred in 2023. Termination of the active drilling rig commitment would require an early termination penalty of $1.1 million, which would be in lieu of paying the active drilling rig commitment of $2.7 million. In May 2022, we also entered into a joint venture agreement to develop a strategic acid gas treatment and carbon sequestration facility and entered into a gas treating agreement. Once the facility is in service, we have Under the gas treating agreement, /Mcf and varies based on volumes delivered to the facility. At an initial treated volume of million for the first 12 months of the agreement. For additional information on this joint venture, see Note 13, Additional Financial Information The Company has entered into various long-term gathering, transportation and sales contracts with respect to its oil and natural gas production from the Delaware Basin in West Texas. As of December 31, 2022, the Company had in place two long-term crude oil contracts and 12 long-term natural gas contracts in this area and the sales prices under these contracts are based on posted market rates. Under the terms of these contracts, the Company has committed a substantial portion of its production from this area for periods ranging from one Contingencies In addition to the matters described below, from time to time, the Company may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of its business. While the outcome and impact of currently pending legal proceedings cannot be determined, the Company’s management and legal counsel believe that the resolution of these proceedings through settlement or adverse judgment will not have a material effect on the Company’s consolidated operating results, financial position or cash flows. Surface owners of properties in Louisiana, where the Company formerly operated, often file lawsuits or assert claims against oil and gas companies claiming that operators and working interest owners are liable for environmental damages arising from operations conducted on the leased properties. These damages are frequently measured by the cost to restore the leased properties to their original condition. Currently and in the past, the Company has been party to such matters in Louisiana. With regard to pending matters, the overall exposure is not currently determinable. The Company intends to vigorously oppose these claims. ​

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2022
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	10. STOCKHOLDERS’ EQUITY Common Stock On October 8, 2019, upon emergence from chapter 11 bankruptcy, Battalion Oil Corporation filed an amended and restated certificate of incorporation with the Delaware Secretary of State to provide for, among other things, (i) the total number of shares of all classes of capital stock that Battalion Oil Corporation has the authority to issue is 101,000,000 of which 100,000,000 shares are common stock, par value $0.0001 per share and 1,000,000 shares are preferred stock, par value $0.0001 per share and (ii) a restriction on Battalion Oil Corporation from issuing any non-voting equity securities in violation of Section 1123(a)(6) of chapter 11 of title 11 of the United States Code. In addition, pursuant to the Company’s certificate of incorporation, effective at the 2021 annual meeting of stockholders, the board ceased to be divided into two classes, and the provision for the right of removal of any directors designated as a Group II director by an increased voting threshold from a majority to 85% of the shares then entitled to vote at an election of directors shares expired. Incentive Plans The Company’s board of directors adopted the 2020 Long-Term Incentive Plan (the Plan), as amended in 2021, in which an aggregate of approximately 1.8 million shares of the Company’s common stock were available for grant pursuant to awards under the Plan. As of December 31, 2022, a maximum of 0.2 million shares of the Company’s common stock remained reserved for issuance under the Plan. For the years ended December 31, 2022 and 2021, the Company recognized $2.2 million and $2.0 million, respectively, related to stock-based compensation awards granted to employees and directors, primarily related to restricted stock unit grants. Stock-based compensation is recorded as a component of “General and administrative” Restricted Stock Units From time to time, the Company grants shares of restricted stock units (RSUs) under the Plan to employees of the Company. Under the Plan, employee RSUs will vest and convert to shares typically in equal amounts over a three or four year vesting period from the date of the grant, depending on award, or when the performance or market conditions described below occur. ​ The following table sets forth the restricted stock unit transactions for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Shares Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value (1) (In thousands) Unvested outstanding shares at December 31, 2020 ​ 874,134 ​ $ 9.48 ​ $ 3,287 Granted ​ 12,000 ​ ​ 8.00 ​ ​ ​ Vested ​ (95,994) ​ ​ 11.51 ​ ​ ​ Forfeited ​ (14,625) ​ ​ 11.89 ​ ​ ​ Unvested outstanding shares at December 31, 2021 ​ 775,515 ​ $ 9.16 ​ $ 2,914 Granted ​ 225,700 ​ ​ 13.75 ​ ​ ​ Vested ​ (98,121) ​ ​ 11.40 ​ ​ ​ Forfeited ​ (13,700) ​ ​ 12.20 ​ ​ ​ Unvested outstanding shares at December 31, 2022 ​ 889,394 ​ $ 10.03 ​ $ 3,993 (1) The intrinsic value of restricted stock was calculated as the closing market price on December 31, 2022 and 2021 of the underlying stock multiplied by the number of restricted shares that would be issuable. The total fair value of shares vested was $1.7 million for the year ended December 31, 2022. The discussion below outlines the vesting conditions and fair values for each type of the Company’s approximately 0.9 million unvested outstanding RSU under the Plan issued to employees of the Company as of December 31, 2022. ● Time-Based RSU . 0.4 million RSUs will vest over a three or four year vesting period from the date of the grant, depending on award . The aggregate grant date fair value of these RSUs was $5.2 million. ​ ● Performance-Based RSU . 0.2 million RSUs will vest in full only upon achievement of certain business combination goals, as defined in the awards agreements. The aggregate grant date fair value of these RSUs was $1.8 million. As of December 31, 2022, no expense had been recognized for these awards as a business combination, as defined in the award agreements, had neither been consummated nor was considered probable. ​ ● Market-Based (e.g. TSR) RSU . 0.3 million RSUs will vest in full or in part or may terminate based on the Company’s total shareholder return (TSR) relative to the total shareholder return of certain of its peer companies as defined in the awards agreements over the performance period ending on February 20, 2024. The aggregate grant date fair value of these RSUs was $1.9 million. ​ The assumptions used in calculating the Monte Carlo valuation model fair value of the Company’s RSUs with market based (e.g. TSR) vesting conditions granted in 2020 are set forth in the following table: ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, 2020 ​ Weighted average value per performance based RSUs granted during the period ​ $ 6.13 ​ Assumptions: ​ ​ ​ ​ Stock price volatility (1) ​ ​ 51.79 % Risk free rate of return ​ ​ 1.22 % Expected term ​ ​ 3.9 years (1) Due to the Company’s limited historical data, expected volatility was estimated using volatilities of peer entities as defined in the award agreements whose share prices and assumptions were publicly available. ​ Stock Options From time to time, the Company has granted stock options under the Plan covering shares of common stock to employees of the Company. The Company has not granted stock options since 2020. Stock options, if exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. Awards granted under the Plan typically vest over a one At December 31, 2022, the Company had 478,152 options outstanding (3 equal tranches of 159,384 options at exercise prices /share. As of December 31, 2022 and 2021 years. Approximately ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2020 Weighted average value per option granted during the period ​ $ 3.36 ​ Assumptions: ​ ​ ​ ​ Stock price volatility (1) ​ ​ 61.87 % Risk free rate of return ​ ​ 1.21 % Expected term ​ ​ 4.75 years (1) Due to the Company’s limited historical data, expected volatility was estimated using volatilities of similar entities whose share or option prices and assumptions were publicly available. ​ Warrants On October 8, 2019, pursuant to the Company’s plan of reorganization, approximately 6.9 million Series A, Series B and Series C warrants were issued to pre-emergence holders of the predecessor Company’s common stock with corresponding initial exercise prices ranging from $40.17 to $60.45 per share, on a pro rata basis. Each series of Warrants issued under the Warrant Agreement had a three-year term, which expired on October 8, 2022.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
INCOME TAXES
INCOME TAXES	11. INCOME TAXES Income tax benefit (provision) for the indicated periods is comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Current: ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ — State ​ ​ — ​ ​ — ​ ​ ​ — ​ ​ — Deferred: ​ ​ ​ ​ ​ ​ Federal ​ ​ — ​ ​ — State ​ ​ — ​ ​ — ​ ​ ​ — ​ ​ — Total income tax benefit (provision) ​ $ — ​ $ — ​ The actual income tax benefit (provision) differs from the expected income tax benefit (provision) as computed by applying the United States federal corporate income tax rate of 21% for the periods indicated below, as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Expected tax benefit (provision) ​ $ (3,893) ​ $ 5,947 Change in valuation allowance and related items ​ ​ 6,689 ​ ​ 57,845 Attribute reduction ​ ​ (2,704) ​ ​ (64,024) Permanent adjustments ​ ​ (5) ​ ​ 404 Employee retention credit ​ ​ — ​ ​ (153) Non-deductible compensation ​ ​ (56) ​ ​ — Other ​ ​ (31) ​ ​ (19) Total income tax benefit (provision) ​ $ — ​ $ — ​ The components of net deferred income tax assets (liabilities) recognized are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Deferred noncurrent income tax assets: ​ ​ ​ ​ ​ ​ Net operating loss carry-forwards ​ $ 151,905 ​ $ 135,454 Built in loss adjustment Section 382 ​ ​ 693 ​ ​ 693 Capital loss carryforward ​ ​ 114,725 ​ ​ 114,725 Stock-based compensation expense ​ ​ 2,334 ​ ​ 1,870 Asset retirement obligations ​ ​ 2,558 ​ ​ 2,447 Book-tax differences in property basis ​ ​ 129,427 ​ ​ 148,008 Unrealized hedging transactions ​ ​ 8,676 ​ ​ 12,929 Disallowed interest Section 163(j) ​ ​ 14,905 ​ ​ 15,230 Embedded derivative liability ​ ​ 459 ​ ​ 841 Operating lease liability ​ ​ 74 ​ ​ 151 Other ​ ​ 874 ​ ​ 382 Gross deferred noncurrent income tax assets ​ ​ 426,630 ​ ​ 432,730 Valuation allowance ​ ​ (425,005) ​ ​ (431,694) Deferred noncurrent income tax assets ​ $ 1,625 ​ $ 1,036 ​ ​ ​ ​ ​ ​ ​ Deferred noncurrent income tax liabilities: ​ ​ ​ ​ ​ ​ Basis difference in debt ​ $ (885) ​ $ (885) Investment in unconsolidated subsidiary ​ ​ (580) ​ ​ ​ Amortization of debt issuance costs ​ ​ (86) ​ ​ ​ Lease right of use ​ ​ (74) ​ ​ (151) Deferred noncurrent income tax liabilities ​ $ (1,625) ​ $ (1,036) Net noncurrent deferred income tax assets (liabilities) ​ $ — ​ $ — ​ The amount of U.S. consolidated Net Operating Losses (NOLs) available as of December 31, 2022 after attribute reduction is estimated to be approximately $1.2 billion, but the amount after attribute reduction and the Section 382 limitation is $723.3 million. Of this amount, $92.6 million is subject to the 20 year carryforward period and will expire in 2037. The remaining $630.7 million may be carried forward indefinitely but is in part subject to a Section 382 limitation. The Company assesses the recoverability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. The Company evaluated possible sources of taxable income that may be available to realize the benefit of deferred tax assets, including projected future taxable income, the reversal of existing temporary differences, taxable income in carryback years and available tax planning strategies in making this assessment. As a result of the Company’s analysis, it was concluded that as of December 31, 2022, a valuation allowance should continue to be applied against the Company’s net deferred tax asset. The Company recorded a valuation allowance as of December 31, 2022 of $425.0 million, a decrease of $6.7 million from December 31, 2021. The Company will continue to monitor facts and circumstances in the reassessment of the likelihood that operating loss carryforwards, credits and other deferred tax assets will be utilized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. For those benefits to be recognized, an income tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company has no unrecognized tax benefits for the year ended December 31, 2022 and 2021. Accordingly, there is no amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate and there is “Interest expense and other” consolidated balance sheets as of December 31, 2022 and 2021. In addition, the Company does not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months. Tax audits may be ongoing at any point in time. Tax liabilities are recorded based on estimates of additional taxes which may be due upon the conclusion of these audits. Estimates of these tax liabilities are made based upon prior experience and are updated for changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. Generally, the Company’s income tax years 2019 through 2022 remain open for federal purposes and are subject to examination by Federal tax authorities. The Company's income tax returns are also subject to audit by the tax authorities in Louisiana, Mississippi, North Dakota, Oklahoma, Texas, Pennsylvania, Ohio and certain other state taxing jurisdictions where the Company has, or previously had, operations. In certain jurisdictions the Company operates through more than one legal entity, each of which may have different open years subject to examination. The open years for state purposes can vary from the normal three year statue expiration period for federal purposes. On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was enacted into law. The IRA contains significant U.S. federal income tax law changes, including the addition of a corporate alternative minimum tax imposed at a rate of fifteen percent (15%) on our global adjusted financial statement income effective as of January 1, 2023. Based on current guidance, we do not expect the IRA to have a material adverse impact on our business, results of operations or financial position. During 2020, the CARES Act and the Consolidated Appropriations Act of 2021 (the CAA) were signed into law. Both the CARES Act and CAA did not have a material impact to the Company’s consolidated financial statements and related disclosures

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	12. EARNINGS PER SHARE The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Basic: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 18,539 ​ $ (28,317) Weighted average basic number of common shares outstanding ​ ​ 16,331 ​ ​ 16,261 Basic net income (loss) per share of common share ​ $ 1.14 ​ $ (1.74) ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 18,539 ​ $ (28,317) Weighted average basic number of common shares outstanding ​ ​ 16,331 ​ ​ 16,261 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ Exercise of Warrants & Stock Options ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ 179 ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,510 ​ ​ 16,261 Diluted net income (loss) per share of common stock ​ $ 1.12 ​ $ (1.74) ​ For the year ended December 31, 2022, common stock equivalents, including warrants, stock options and certain restricted stock units, totaling 5.8 million weighted-average shares were anti-dilutive and not included in the computation of diluted earnings per share of common stock. For the year ended December 31, 2021, common stock equivalents, including warrants, stock options and restricted stock units, totaling 7.7 million shares were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the Company’s net loss in the period. Additionally, we also have approximately Stockholder’s Equity . On October 8, 2022 approximately share of common stock for each warrant.

ADDITIONAL FINANCIAL STATEMENT

ADDITIONAL FINANCIAL STATEMENT INFORMATION	12 Months Ended
	Dec. 31, 2022
ADDITIONAL FINANCIAL STATEMENT INFORMATION
ADDITIONAL FINANCIAL STATEMENT INFORMATION	13. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 33,980 ​ $ 34,110 Joint interest accounts ​ ​ 3,201 ​ ​ 2,503 Other ​ ​ 793 ​ ​ 193 ​ ​ $ 37,974 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 715 ​ $ 975 Funds in escrow ​ ​ 341 ​ ​ 390 Other ​ ​ 75 ​ ​ 1 ​ ​ $ 1,131 ​ $ 1,366 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate (1) ​ $ 1,561 ​ $ — Oil, natural gas and natural gas liquids revenues ​ ​ — ​ ​ 1,010 Funds in escrow ​ ​ 527 ​ ​ 1,227 Other ​ ​ 739 ​ ​ 33 ​ ​ $ 2,827 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 42,919 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 19,911 ​ ​ 4,881 Revenues and royalties payable ​ ​ 26,759 ​ ​ 22,763 Accrued interest expense ​ ​ 160 ​ ​ 42 Accrued employee compensation ​ ​ 2,300 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 8,005 ​ ​ 6,090 Other ​ ​ 41 ​ ​ — ​ ​ $ 100,095 ​ $ 62,826 (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to this related party joint venture in a non-cash exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT (a related party) using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. For more information related to this joint venture, see Note 9, Commitments and Contingencies . ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14. SUBSEQUENT EVENTS Preferred Stock Equity Issuance. shares of Series A Convertible Preferred Stock (the “preferred stock”) to certain funds managed by Luminus Management, LLC, Oaktree Capital Management, LP, and LSP Investment Advisors, LLC, our largest voting rights with respect to the shares of preferred stock. The preferred stock will receive annual dividends, paid either in cash at a fixed rate of Shares of preferred stock will be convertible, subject to conversion ratios and prices stipulated in the agreement, at any time by the holders and by Battalion after meeting certain other agreement requirements. Battalion will also have the right to redeem the preferred stock in cash at an amount equal to between of the Liquidation Preference determined by the redemption date or conversion into common stock. Until (i) a termination of or certain amendments to the Amended Term Loan Agreement or (ii) past the maturity date of the Amended Term Loan Agreement, an election of the cash payment option by holders in a change of control scenario is not permitted.

SUMMARY OF SIGNIFICANT EVENTS_2

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Battalion Oil Corporation (Battalion or the Company) is the successor reporting company to Halcón Resources Corporation (Halcón). On January 21, 2020, Battalion filed a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to effect a change of the Company’s corporate name from Halcón Resources Corporation to Battalion Oil Corporation. Battalion is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one reportable segment which focuses on oil and natural gas acquisition, production, exploration and development. Allocation of capital is made across the Company’s entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. The Company has evaluated events and transactions through the date of issuance of this report in conjunction with the preparation of these consolidated financial statements.
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, and fair value estimates. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted 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. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s consolidated financial statement and the results presented in this Form 10-K are not necessarily indicative of future operating results.
Risk and Uncertainties	Risk and Uncertainties Supply chain issues. In periods of increasing commodity prices, we continue to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business. During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. Commodity Prices . Despite lower commodity prices in 2020, widespread availability of COVID-19 vaccines during 2021 combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates, tightening monetary policies, or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. For further information regarding the actual and potential impacts of the supply chain issues and the potential impact of declines in commodity prices on the Company, see “Risk Factors” in Item 1A of this Annual Report on Form 10-K.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Amounts in the consolidated balance sheets included in “ Cash and cash equivalents Restricted cash ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 32,726 ​ $ 46,864 Restricted cash ​ ​ 90 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 32,816 ​ $ 48,359 ​ Restricted cash consists primarily of funds to collateralize letters of credit outstanding.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. Payment of our accounts receivable is typically received within 30-60 days. The Company’s historical credit losses have been de minimis and are expected to remain so in the future assuming no substantial changes to the business or creditworthiness of the Company’s counterparties.
Oil and Natural Gas Properties	Oil and Natural Gas Properties The Company uses the full cost method of accounting for its investment in oil and natural gas properties as prescribed by the United States Securities and Exchange Commission (SEC). Accordingly, all costs incurred in the acquisition, exploration and development of proved and unproved oil and natural gas properties, including the costs of abandoned properties, treating equipment and gathering support facilities, dry holes, geophysical costs, and annual lease rentals are capitalized. All general and administrative corporate costs unrelated to drilling activities are expensed as incurred. Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of cost to estimated proved reserves would significantly change. Depletion of evaluated oil and natural gas properties is computed on the units of production method based on estimated proved reserves. The net capitalized costs of evaluated oil and natural gas properties are subject to a full cost ceiling limitation in which the costs are not allowed to exceed their related estimated future net revenues discounted at 10%, net of tax considerations. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The Company reviews its unevaluated properties at the end of each quarter to determine whether the costs incurred should be transferred to the full cost pool and thereby subject to amortization. Investments in unevaluated oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress, qualify for interest capitalization. The Company determines capitalized interest, when applicable, by multiplying the Company’s weighted-average borrowing cost on debt by the average amount of qualifying costs incurred that were excluded from the full cost pool; however, the amount of capitalized interest cannot exceed the amount of gross interest expense incurred in any given period. The Company’s accounting policy on the capitalization of interest establishes thresholds for the determination of a development project for the purpose of interest capitalization. Additionally, the Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation.
Other Operating Property and Equipment	Other Operating Property and Equipment Other operating property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: buildings, twenty years; automobiles and computers fixtures, furniture and equipment eight The Company reviews its other operating property and equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. The purchasers of the Company’s oil and natural gas production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. In 2022, three individual purchasers of the Company’s production, Western Refining Company L.P., Sunoco Inc. and Targa Resources Inc., each accounted for more than 10% of more than The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At December 31, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement.
Risk Management Activities	Risk Management Activities The Company follows ASC 815, Derivatives and Hedging “Net gain (loss) on derivative contracts”
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method wherein deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company classifies all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the consolidated balance sheets. The evaluation of a tax position in accordance with ASC 740 is a two-step process. The first step is a recognition process to determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more likely than not recognition threshold, it is presumed that the position will be examined by the appropriate taxing authority with full knowledge of all relevant information. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit/expense to recognize in the consolidated financial statements. The tax position is measured at the largest amount of benefit/expense that is more likely than not of being realized upon ultimate settlement.
Asset Retirement Obligations	Asset Retirement Obligations The Company records asset retirement obligations to reflect the Company’s legal obligations related to future plugging and abandonment of its oil and natural gas wells, treating equipment and gathering support facilities. The Company estimates the expected cash flows associated with the obligation and discounts the amounts using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should these indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will accordingly update its assessment. Additional retirement obligations increase the liability associated with new oil and natural gas wells, treating equipment and gathering support facilities as these obligations are incurred. The Company records the asset retirement obligation (ARO) liability on the consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties” “Depletion, depreciation and accretion”

SUMMARY OF SIGNIFICANT EVENTS_3

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Schedule Of Cash, Cash Equivalents And Restricted Cash	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 32,726 ​ $ 46,864 Restricted cash ​ ​ 90 ​ ​ 1,495 Total cash, cash equivalents and restricted cash ​ $ 32,816 ​ $ 48,359 ​

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
LEASES
Schedule of Company's leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ​ ​ 2022 2021 Lease cost ​ ​ ​ ​ ​ ​ ​ Operating lease costs ​ $ 391 ​ $ 444 ​ Short-term lease costs ​ ​ 7,972 ​ ​ 3,152 ​ Variable lease costs ​ ​ — ​ ​ 375 ​ Total lease costs ​ $ 8,363 ​ $ 3,971 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other information ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 391 ​ $ 537 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ 841 ​ Weighted-average remaining lease term - operating leases ​ ​ 0.9 years ​ 1.9 years Weighted-average discount rate - operating leases ​ ​ 4.29 % ​ 4.29 %
Schedule of future minimum lease payments associated with the Company's non-cancellable operating leases for office space and equipment	​ Future minimum lease payments associated with the Company’s non-cancellable operating leases for office space and equipment as of December 31, 2022, are presented in the table below (in thousands): ​ ​ ​ ​ ​ ​ December 31, 2022 2023 ​ $ 359 Total operating lease payments ​ ​ 359 Less: discount to present value ​ ​ (7) Total operating lease liabilities ​ ​ 352 Less: current operating lease liabilities ​ ​ 352 Noncurrent operating lease liabilities ​ $ —

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Tables)	12 Months Ended
	Dec. 31, 2022
OIL AND NATURAL GAS PROPERTIES
Schedule of oil and natural gas properties	Oil and natural gas properties as of December 31, 2022 and 2021 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 ​ ​ ​ ​ ​ ​ ​ Subject to depletion ​ $ 713,585 ​ $ 569,886 Not subject to depletion: ​ ​ ​ ​ ​ ​ Other capital costs: ​ ​ ​ ​ ​ Incurred in 2022 ​ ​ 1,427 ​ ​ — Incurred in 2021 ​ ​ 1,427 ​ ​ 1,427 Incurred in 2020 ​ ​ 983 ​ ​ 983 Incurred in 2019 (1) ​ ​ 58,784 ​ ​ 61,895 Total not subject to depletion ​ ​ 62,621 ​ ​ 64,305 Gross oil and natural gas properties ​ ​ 776,206 ​ ​ 634,191 Less accumulated depletion ​ ​ (390,796) ​ ​ (339,776) Net oil and natural gas properties ​ $ 385,410 ​ $ 294,415 (1) In 2019, with the adoption of fresh-start accounting, the Company’s unevaluated properties were recorded at fair value.
Schedule of the Company's Oil and Natural Gas prices used in the calculation of the ceiling test value of the Company's reserves	​ ​ ​ ​ ​ ​ ​ ​ ​ West Texas Intermediate (per barrel) (1) Henry Hub (per MMBtu) (1) December 31, 2022 ​ $ 94.14 ​ $ 6.36 December 31, 2021 ​ ​ 66.55 ​ $ 3.60 (1) Unweighted average of the first day of the 12-months ended spot price, adjusted by lease or field for quality, transportation fees, and regional price differentials.

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2022
DEBT
Schedule of debt	As of December 31, 2022 and 2021, the Company’s debt consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Term loan credit facility ​ $ 235,000 ​ $ 200,000 Other ​ ​ 190 ​ ​ 85 Total debt (Face Value) ​ ​ 235,190 ​ ​ 200,085 Less: ​ ​ ​ ​ ​ ​ Current Portion of Long-Term Debt (1) ​ ​ (35,067) ​ ​ (85) Other (2) ​ ​ (17,447) ​ ​ (18,435) Long-Term Debt, net ​ $ 182,676 ​ $ 181,565 (1) As of December 31, 2022, amount primarily reflects amortization payments of $35.0 million under the Amended Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Paycheck Protection Program Loan. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $13.0 million and $14.2 million at December 31, 2022 and December 31, 2021, respectively, but also include amounts associated with an embedded derivative separately presented and further described in Note 6. Fair Value Measurements. For the years ended December 31, 2022 and 2021, we recorded approximately $5.4 million and $0.4 million, respectively, in interest expense reflecting the amortization/accretion of these amounts.
Schedule of prepayment premiums	​ ​ ​ ​ ​ Period (after amendment date) ​ ​ Premium Months 0 - 12 ​ ​ Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 ​ ​ 2.00% Thereafter ​ ​ 0.00% ​
Schedule of aggregate maturities required on long-term debt	Aggregate maturities required on debt at December 31, 2022 due in future years are as follows (in thousands): ​ ​ ​ ​ ​ 2023 $ 35,067 2024 ​ ​ 50,067 2025 ​ ​ 150,056 Total ​ $ 235,190

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
Schedule of fair value of the Company's financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 21,623 ​ $ — ​ $ 21,623 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 62,935 ​ $ — ​ $ 62,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Level 1 Level 2 Level 3 Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets from commodity-based derivative contracts ​ $ — ​ $ 3,898 ​ $ — ​ $ 3,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities from commodity-based derivative contracts ​ $ — ​ $ 65,466 ​ $ — ​ $ 65,466
Schedule of changes in fair value of the change of control call option	​ ​ ​ ​ ​ ​ ​ Change of Control ​ ​ Call Option Balance at December 31, 2021 ​ $ 4,003 Change in fair value ​ ​ 133 Balance at December 31, 2022 ​ $ 4,136 ​

DERIVATIVE AND HEDGING ACTIVI_2

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	12 Months Ended
	Dec. 31, 2022
DERIVATIVE AND HEDGING ACTIVITIES
Summary of location and fair value of derivative contracts	The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ ​ ​ Years Ended December 31, Balance sheet location 2022 2021 Balance sheet location 2022 2021 Current assets ​ $ 16,244 ​ $ 1,383 ​ Current liabilities ​ $ (29,286) ​ $ (58,322) Other noncurrent assets ​ ​ 5,379 ​ ​ 2,515 ​ Other noncurrent liabilities ​ ​ (33,649) ​ ​ (7,144) ​ ​ $ 21,623 ​ $ 3,898 ​ ​ ​ $ (62,935) ​ $ (65,466) ​
Summary of the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts	The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s consolidated statements of operations (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain or (loss) ​ ​ ​ ​ ​ ​ on derivative contracts on ​ Years Ended December 31, Type Statement of Operations 2022 2021 Commodity contracts: ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain (loss) ​ Other income (expenses) ​ $ 20,256 ​ $ (47,721) Realized gain (loss) ​ Other income (expenses) ​ ​ (130,262) ​ ​ (77,898) Total net gain (loss) ​ ​ ​ $ (110,006) ​ $ (125,619) ​
Schedule of open derivative contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Instrument ​ 2023 ​ 2024 ​ 2025 ​ ​ 2026 Crude oil: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,430,183 ​ ​ 1,812,285 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 69.17 ​ $ 63.75 ​ $ 60.88 ​ $ 64.19 Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,586,562 ​ ​ 1,810,056 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 0.40 ​ $ 0.27 ​ $ 0.16 ​ $ 0.09 WTI NYMEX roll: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (Bbls) ​ ​ 2,490,458 ​ ​ 1,733,719 ​ ​ 1,172,171 ​ ​ 711,741 Weighted average price ​ $ 0.58 ​ $ 0.30 ​ $ 0.13 ​ $ 0.18 Natural gas: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed-price swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 5,236,373 ​ ​ 4,271,034 ​ ​ 3,451,713 ​ ​ 1,829,816 Weighted average price ​ $ 3.75 ​ $ 3.54 ​ $ 3.33 ​ $ 4.03 Two-way collar: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 2,545,828 ​ ​ 2,167,139 ​ ​ 1,052,153 ​ ​ 895,562 Weighted average price (call) ​ $ 6.19 ​ $ 5.17 ​ $ 5.05 ​ $ 4.86 Weighted average price (put) ​ $ 4.50 ​ $ 3.74 ​ $ 3.72 ​ $ 4.03 Basis swap: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total volumes (MMBtu) ​ ​ 7,565,173 ​ ​ 6,438,122 ​ ​ 4,477,126 ​ ​ 2,725,378 Weighted average price ​ $ (0.83) ​ $ (0.85) ​ $ (0.64) ​ $ (0.75) ​
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Assets ​ Derivative Liabilities ​ ​ Years Ended December 31, ​ Years Ended December 31, Offsetting of Derivative Assets and Liabilities 2022 ​ 2021 2022 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts - Consolidated Balance Sheet ​ $ 21,623 ​ $ 3,898 ​ $ (62,935) ​ $ (65,466) Amounts Not Offset - Consolidated Balance Sheet ​ ​ (20,997) ​ ​ (3,898) ​ ​ 20,997 ​ ​ 3,898 Net amount ​ $ 626 ​ $ — ​ $ (41,938) ​ $ (61,568)

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2022
ASSET RETIREMENT OBLIGATIONS
Schedule of activity related to ARO liability	The Company recorded the following activity related to its ARO liability (inclusive of the current portion) (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2022 2021 Asset retirement obligations at beginning of the period ​ $ 11,896 ​ $ 10,583 Accretion expense ​ ​ 528 ​ ​ 477 Liabilities incurred ​ ​ 151 ​ ​ 111 Liabilities settled/divested ​ ​ (647) ​ ​ — Revisions to estimate ​ ​ 3,541 ​ ​ 725 Asset retirement obligations at end of period ​ ​ 15,469 ​ ​ 11,896 Less: current asset retirement obligations ​ ​ (225) ​ ​ — Long-term asset retirement obligations at the end of the period ​ $ 15,244 ​ $ 11,896

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Schedule of the restricted stock transactions	The following table sets forth the restricted stock unit transactions for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Shares Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value (1) (In thousands) Unvested outstanding shares at December 31, 2020 ​ 874,134 ​ $ 9.48 ​ $ 3,287 Granted ​ 12,000 ​ ​ 8.00 ​ ​ ​ Vested ​ (95,994) ​ ​ 11.51 ​ ​ ​ Forfeited ​ (14,625) ​ ​ 11.89 ​ ​ ​ Unvested outstanding shares at December 31, 2021 ​ 775,515 ​ $ 9.16 ​ $ 2,914 Granted ​ 225,700 ​ ​ 13.75 ​ ​ ​ Vested ​ (98,121) ​ ​ 11.40 ​ ​ ​ Forfeited ​ (13,700) ​ ​ 12.20 ​ ​ ​ Unvested outstanding shares at December 31, 2022 ​ 889,394 ​ $ 10.03 ​ $ 3,993 (1) The intrinsic value of restricted stock was calculated as the closing market price on December 31, 2022 and 2021 of the underlying stock multiplied by the number of restricted shares that would be issuable. The total fair value of shares vested was $1.7 million for the year ended December 31, 2022.
Restricted Stock
Schedule of assumptions used in calculating fair value of the Company's stock-based compensation	​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, 2020 ​ Weighted average value per performance based RSUs granted during the period ​ $ 6.13 ​ Assumptions: ​ ​ ​ ​ Stock price volatility (1) ​ ​ 51.79 % Risk free rate of return ​ ​ 1.22 % Expected term ​ ​ 3.9 years (1) Due to the Company’s limited historical data, expected volatility was estimated using volatilities of peer entities as defined in the award agreements whose share prices and assumptions were publicly available.
Stock options
Schedule of assumptions used in calculating fair value of the Company's stock-based compensation	​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, 2020 Weighted average value per option granted during the period ​ $ 3.36 ​ Assumptions: ​ ​ ​ ​ Stock price volatility (1) ​ ​ 61.87 % Risk free rate of return ​ ​ 1.21 % Expected term ​ ​ 4.75 years (1) Due to the Company’s limited historical data, expected volatility was estimated using volatilities of similar entities whose share or option prices and assumptions were publicly available. ​

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
INCOME TAXES
Schedule of income tax benefit (provision)	Income tax benefit (provision) for the indicated periods is comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Current: ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ — State ​ ​ — ​ ​ — ​ ​ ​ — ​ ​ — Deferred: ​ ​ ​ ​ ​ ​ Federal ​ ​ — ​ ​ — State ​ ​ — ​ ​ — ​ ​ ​ — ​ ​ — Total income tax benefit (provision) ​ $ — ​ $ — ​
Schedule of differences between the actual income tax benefit (provision) and the expected income tax benefit (provision)	The actual income tax benefit (provision) differs from the expected income tax benefit (provision) as computed by applying the United States federal corporate income tax rate of 21% for the periods indicated below, as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Expected tax benefit (provision) ​ $ (3,893) ​ $ 5,947 Change in valuation allowance and related items ​ ​ 6,689 ​ ​ 57,845 Attribute reduction ​ ​ (2,704) ​ ​ (64,024) Permanent adjustments ​ ​ (5) ​ ​ 404 Employee retention credit ​ ​ — ​ ​ (153) Non-deductible compensation ​ ​ (56) ​ ​ — Other ​ ​ (31) ​ ​ (19) Total income tax benefit (provision) ​ $ — ​ $ — ​
Schedule of components of net deferred income tax assets (liabilities)	The components of net deferred income tax assets (liabilities) recognized are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Deferred noncurrent income tax assets: ​ ​ ​ ​ ​ ​ Net operating loss carry-forwards ​ $ 151,905 ​ $ 135,454 Built in loss adjustment Section 382 ​ ​ 693 ​ ​ 693 Capital loss carryforward ​ ​ 114,725 ​ ​ 114,725 Stock-based compensation expense ​ ​ 2,334 ​ ​ 1,870 Asset retirement obligations ​ ​ 2,558 ​ ​ 2,447 Book-tax differences in property basis ​ ​ 129,427 ​ ​ 148,008 Unrealized hedging transactions ​ ​ 8,676 ​ ​ 12,929 Disallowed interest Section 163(j) ​ ​ 14,905 ​ ​ 15,230 Embedded derivative liability ​ ​ 459 ​ ​ 841 Operating lease liability ​ ​ 74 ​ ​ 151 Other ​ ​ 874 ​ ​ 382 Gross deferred noncurrent income tax assets ​ ​ 426,630 ​ ​ 432,730 Valuation allowance ​ ​ (425,005) ​ ​ (431,694) Deferred noncurrent income tax assets ​ $ 1,625 ​ $ 1,036 ​ ​ ​ ​ ​ ​ ​ Deferred noncurrent income tax liabilities: ​ ​ ​ ​ ​ ​ Basis difference in debt ​ $ (885) ​ $ (885) Investment in unconsolidated subsidiary ​ ​ (580) ​ ​ ​ Amortization of debt issuance costs ​ ​ (86) ​ ​ ​ Lease right of use ​ ​ (74) ​ ​ (151) Deferred noncurrent income tax liabilities ​ $ (1,625) ​ $ (1,036) Net noncurrent deferred income tax assets (liabilities) ​ $ — ​ $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
EARNINGS PER SHARE
Schedule of calculation of earnings (loss) per share	The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, ​ 2022 2021 Basic: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 18,539 ​ $ (28,317) Weighted average basic number of common shares outstanding ​ ​ 16,331 ​ ​ 16,261 Basic net income (loss) per share of common share ​ $ 1.14 ​ $ (1.74) ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 18,539 ​ $ (28,317) Weighted average basic number of common shares outstanding ​ ​ 16,331 ​ ​ 16,261 Common stock equivalent shares representing shares issuable upon: ​ ​ ​ ​ ​ ​ Exercise of Warrants & Stock Options ​ ​ Anti-dilutive ​ ​ Anti-dilutive Vesting of restricted stock units ​ ​ 179 ​ ​ Anti-dilutive Weighted average diluted number of common shares outstanding ​ ​ 16,510 ​ ​ 16,261 Diluted net income (loss) per share of common stock ​ $ 1.12 ​ $ (1.74) ​

ADDITIONAL FINANCIAL STATEMEN_2

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2022
ADDITIONAL FINANCIAL STATEMENT INFORMATION
Schedule of additional financial statement information, balance sheet	Certain balance sheet amounts are comprised of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 December 31, 2021 Accounts receivable, net: ​ ​ ​ ​ ​ ​ Oil, natural gas and natural gas liquids revenues ​ $ 33,980 ​ $ 34,110 Joint interest accounts ​ ​ 3,201 ​ ​ 2,503 Other ​ ​ 793 ​ ​ 193 ​ ​ $ 37,974 ​ $ 36,806 Prepaids and other: ​ ​ ​ ​ ​ ​ Prepaids ​ $ 715 ​ $ 975 Funds in escrow ​ ​ 341 ​ ​ 390 Other ​ ​ 75 ​ ​ 1 ​ ​ $ 1,131 ​ $ 1,366 Other assets (Non-current): ​ ​ ​ ​ ​ ​ Investment in unconsolidated affiliate (1) ​ $ 1,561 ​ $ — Oil, natural gas and natural gas liquids revenues ​ ​ — ​ ​ 1,010 Funds in escrow ​ ​ 527 ​ ​ 1,227 Other ​ ​ 739 ​ ​ 33 ​ ​ $ 2,827 ​ $ 2,270 Accounts payable and accrued liabilities: ​ ​ ​ ​ ​ ​ Trade payables ​ $ 42,919 ​ $ 25,315 Accrued oil and natural gas capital costs ​ ​ 19,911 ​ ​ 4,881 Revenues and royalties payable ​ ​ 26,759 ​ ​ 22,763 Accrued interest expense ​ ​ 160 ​ ​ 42 Accrued employee compensation ​ ​ 2,300 ​ ​ 3,735 Accrued lease operating expenses ​ ​ 8,005 ​ ​ 6,090 Other ​ ​ 41 ​ ​ — ​ ​ $ 100,095 ​ $ 62,826 (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to this related party joint venture in a non-cash exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT (a related party) using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. For more information related to this joint venture, see Note 9, Commitments and Contingencies .

SUMMARY OF SIGNIFICANT EVENTS_4

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2022 segment
Basis of Presentation and Principles of Consolidation
Number of operating segments	1

SUMMARY OF SIGNIFICANT EVENTS_5

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES- Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES
Cash and cash equivalents	$ 32,726	$ 46,864
Restricted cash	90	1,495
Total cash, cash equivalents and restricted cash	$ 32,816	$ 48,359	$ 4,295

SUMMARY OF SIGNIFICANT EVENTS_6

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES - Other Operating Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Buildings
Other operating property and equipment
Estimated useful lives	20 years
Automobiles
Other operating property and equipment
Estimated useful lives	3 years
Computers
Other operating property and equipment
Estimated useful lives	3 years
Computer software
Other operating property and equipment
Estimated useful lives	5 years
Fixtures, furniture and equipment
Other operating property and equipment
Estimated useful lives	5 years
Trailers
Other operating property and equipment
Estimated useful lives	7 years
Heavy equipment | Minimum
Other operating property and equipment
Estimated useful lives	8 years
Heavy equipment | Maximum
Other operating property and equipment
Estimated useful lives	10 years

SUMMARY OF SIGNIFICANT EVENTS_7

SUMMARY OF SIGNIFICANT EVENTS AND ACCOUNTING POLICIES - Concentrations of Credit Risk (Details) - Revenue - Concentrations of Credit Risk - customer	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Concentrations of Credit Risk
Number of customers	3	3
Sunoco and Western Refining Inc.
Concentrations of Credit Risk
Percentage of concentration risk	82%
Western Refining, Inc., Sunoco Inc. and Salt Creek Midstream, LLC
Concentrations of Credit Risk
Percentage of concentration risk		73%
Sunoco | Minimum
Concentrations of Credit Risk
Percentage of concentration risk	10%	10%
Western Refining | Minimum
Concentrations of Credit Risk
Percentage of concentration risk	10%	10%
Salt Creek Midstream, LLC | Minimum
Concentrations of Credit Risk
Percentage of concentration risk		10%

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lease cost
Operating lease costs	$ 391	$ 444
Short-term lease costs	7,972	3,152
Variable lease costs		375
Total lease costs	8,363	3,971
Other information
Operating cash flows from operating leases	$ 391	537
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 841
Weighted-average remaining lease term - operating leases	10 months 24 days	1 year 10 months 24 days
Weighted-average discount rate - operating leases	4.29%	4.29%
Minimum
Other information
Initial lease term	2 years 3 months 18 days	2 years 3 months 18 days

LEASES - Reported under ASC 842

LEASES - Reported under ASC 842 and ASC 840 (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Future minimum lease payments for non-cancellable operating leases
2023	$ 359
Total operating lease payment	359
Less: discount to present value	(7)
Total operating lease liabilities	352
Less: current operating lease liabilities	$ 352	$ 369
Noncurrent operating lease liabilities		$ 352

OPERATING REVENUES - Revenue Re

OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Accounts receivable
Disaggregation of operating revenue
Due from contracts with customers	$ 34	$ 35.1

OIL AND NATURAL GAS PROPERTIE_2

OIL AND NATURAL GAS PROPERTIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / bbl $ / MMBTU	Dec. 31, 2021 USD ($) $ / bbl $ / MMBTU
OIL AND NATURAL GAS PROPERTIES
Subject to depletion	$ 713,585	$ 569,886
Incurred in 2022	1,427
Incurred in 2021	1,427	1,427
Incurred in 2020	983	983
Incurred in 2019	58,784	61,895
Total not subject to depletion	62,621	64,305
Gross oil and natural gas properties	776,206	634,191
Less - accumulated depletion	(390,796)	(339,776)
Net oil and natural gas properties	$ 385,410	294,415
Maximum discount percentage of estimated future net revenues for full cost ceiling limitation	10%
Depletion expense	$ 51,000	$ 44,600
Ceiling Limitation Disclosures
First day average of the (WTI) crude oil spot price (in dollars per barrel) | $ / bbl	94.14	66.55
First day average of the Henry Hub natural gas price (in dollars per Mmbtu) | $ / MMBTU	6.36	3.60

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current and long-term debt
Debt	$ 235,190	$ 200,085
Current Portion of Long-Term Debt(1)	(35,067)	(85)
Other(2)	(17,447)	(18,435)
Total long-term debt	182,676	181,565
Unamortized debt issuance costs	13,000	14,200
Interest expense	5,400	400
Unamortized premium related to debt issued	35,000
Term loan credit facility
Current and long-term debt
Debt	235,000	200,000
Paycheck Protection Program Loan [Member]
Current and long-term debt
Debt	$ 190	$ 85

DEBT - Term Loan Credit Facilit

DEBT - Term Loan Credit Facility (Details) $ in Thousands		2 Months Ended	12 Months Ended
	Nov. 14, 2022 USD ($)	Dec. 31, 2022 USD ($) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Lender fees paid			$ 5,448	$ 379
Gain (loss) on extinguishment of debt				$ 1,946
Term loan credit facility
Debt Instrument [Line Items]
Amount available for issuance of letters of credit		$ 3,600	$ 3,600
Weighted average interest rate			9.10%
Lender fees paid	$ 2,400
Maturity date			Nov. 24, 2025
Cash dividend or cash interest for prepayment premium	$ 0
Amount outstanding		235,000	$ 235,000
Letters of credit outstanding		$ 1,400	$ 1,400
Interest plus	2%
Covenant compliance			As of December 31, 2022, the Company was in compliance with the financial covenants under the Amended Term Loan Agreement.
Threshold from capital expenditures to cash balance			$ 20,000
Maximum number of additional approved plan of development wells if out of compliance with loan agreement | item		6	6
Aggregate scheduled amortization payments		$ 120,000	$ 120,000
Term loan credit facility | Minimum
Debt Instrument [Line Items]
Current ratio			1%
Threshold new capital raising requirements for prepayment premiums	$ 20,000
Term loan credit facility | Prior to February 15, 2020
Debt Instrument [Line Items]
Interest plus	2%
Term loan credit facility | Prior to February 15, 2020 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term	0 months
Term loan credit facility | Prior to February 15, 2020 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term	12 months
Term loan credit facility | February 15, 2020
Debt Instrument [Line Items]
Interest plus	2%
Term loan credit facility | February 15, 2020 | Minimum
Debt Instrument [Line Items]
Debt instrument prepayment term	13 months
Term loan credit facility | February 15, 2020 | Maximum
Debt Instrument [Line Items]
Debt instrument prepayment term	24 months
Term loan credit facility | February 15, 2022
Debt Instrument [Line Items]
Interest plus	0%
Term loan credit facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.50%
Applicable margin (as a percent)	7.65%	7.50%
Term loan credit facility | SOFR | Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.15%
Term loan credit facility | Fiscal quarter ending September 30, 2022 | Minimum
Debt Instrument [Line Items]
Current ratio	0.90%
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Minimum
Debt Instrument [Line Items]
Asset coverage ratio	1.80%
Term loan credit facility | Fiscal quarter ending December 31, 2022 [Member] | Minimum
Debt Instrument [Line Items]
Current ratio	0.70%
Term loan credit facility | Fiscal quarter ending December 31, 2022 [Member] | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	3%
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Minimum
Debt Instrument [Line Items]
Current ratio	0.75%
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	2.75%
Term loan credit facility | Fiscal quarter ending June 30, 2023 | Minimum
Debt Instrument [Line Items]
Current ratio	1%
Term loan credit facility | Fiscal quarter ending each fiscal quarter thereafter | Maximum
Debt Instrument [Line Items]
Net Leverage Ratio	2.50%

DEBT - Debt Maturities and Debt

DEBT - Debt Maturities and Debt Issuance Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt maturities
2023	$ 35,067
2024	50,067
2025	150,056
Total	235,190
Debt Issuance Costs
Debt issuance costs	$ 17,447	$ 18,435

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Assets
Asset transfers between levels	$ 0
Liabilities
Liability transfers between levels	$ 0
Recurring
Assets
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Derivative Asset, Current, Derivative Asset, Noncurrent	Derivative Asset, Current, Derivative Asset, Noncurrent
Liabilities
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Derivative Liability, Current, Derivative Liability, Noncurrent	Derivative Liability, Current, Derivative Liability, Noncurrent
Recurring | Total
Assets
Receivables from derivative contracts	$ 21,623	$ 3,898
Liabilities
Liabilities from derivative contracts	62,935	65,466
Recurring | Level 2
Assets
Receivables from derivative contracts	21,623	3,898
Liabilities
Liabilities from derivative contracts	$ 62,935	$ 65,466

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Change of Control Call Option (Details) - Change of Control Call Option $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at the beginning of the period	$ 4,003
Change in fair value	133
Balance at the end of the period	$ 4,136

DERIVATIVE AND HEDGING ACTIVI_3

DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative and hedging activities
Asset derivative contracts	$ 21,623	$ 3,898
Liability derivative contracts	(62,935)	(65,466)
Derivatives not designated as hedging contracts
Derivative and hedging activities
Asset derivative contracts	21,623	3,898
Liability derivative contracts	(62,935)	(65,466)
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	16,244	1,383
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	5,379	2,515
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	(29,286)	(58,322)
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	$ (33,649)	$ (7,144)

DERIVATIVE AND HEDGING ACTIVI_4

DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivative and hedging activities
Total net gain (loss) on derivative contracts	$ (110,006)	$ (125,619)
Derivatives not designated as hedging contracts | Commodity contracts
Derivative and hedging activities
Total net gain (loss) on derivative contracts	(110,006)	(125,619)
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense
Derivative and hedging activities
Unrealized gain (loss) on commodity contracts	20,256	(47,721)
Realized gain (loss) on commodity contracts	$ (130,262)	$ (77,898)

DERIVATIVE AND HEDGING ACTIVI_5

DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details)	12 Months Ended
	Dec. 31, 2022 MMBTU $ / bbl $ / MMBTU bbl
January 2023 - December 2023 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	2,430,183
January 2023 - December 2023 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	69.17
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	5,236,373
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.75
January 2023 - December 2023 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	2,586,562
January 2023 - December 2023 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.40
January 2023 - December 2023 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	7,565,173
January 2023 - December 2023 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.83)
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	2,490,458
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.58
January 2023 - December 2023 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,545,828
January 2023 - December 2023 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	6.19
January 2023 - December 2023 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.50
January 2024 - December 2024 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,812,285
January 2024 - December 2024 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	63.75
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	4,271,034
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.54
January 2024 - December 2024 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,810,056
January 2024 - December 2024 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.27
January 2024 - December 2024 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	6,438,122
January 2024 - December 2024 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.85)
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,733,719
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.30
January 2024 - December 2024 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,167,139
January 2024 - December 2024 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.17
January 2024 - December 2024 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.74
January 2025 - December 2025 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,172,171
January 2025 - December 2025 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	60.88
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	3,451,713
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.33
January 2025 - December 2025 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	1,172,171
January 2025 - December 2025 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.16
January 2025 - December 2025 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	4,477,126
January 2025 - December 2025 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.64)
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	1,172,171
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.13
January 2025 - December 2025 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,052,153
January 2025 - December 2025 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	5.05
January 2025 - December 2025 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	3.72
January 2026 - December 2026 | Fixed Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	711,741
January 2026 - December 2026 | Fixed Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	64.19
January 2026 - December 2026 | Fixed Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,829,816
January 2026 - December 2026 | Fixed Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.03
January 2026 - December 2026 | Basis Swap | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	711,741
January 2026 - December 2026 | Basis Swap | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.09
January 2026 - December 2026 | Basis Swap | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	2,725,378
January 2026 - December 2026 | Basis Swap | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	(0.75)
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum
Derivative and hedging activities
Volume in Bbl's | bbl	711,741
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl	0.18
January 2026 - December 2026 | Collars | Natural Gas [Member]
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	895,562
January 2026 - December 2026 | Call option | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.86
January 2026 - December 2026 | Put options | Natural Gas [Member] | Weighted Average
Derivative and hedging activities
Weighted Average Price (in dollars per Mmbtu's/Bbl's)	4.03

DERIVATIVE AND HEDGING ACTIVI_6

DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative Assets
Gross Amounts Presented in the Consolidated Balance Sheet	$ 21,623	$ 3,898
Amounts Not Offset in the Consolidated Balance Sheet	(20,997)	(3,898)
Net Amount	626
Derivative Liabilities
Gross Amounts Presented in the Consolidated Balance Sheet	(62,935)	(65,466)
Amounts Not Offset in the Consolidated Balance Sheet	20,997	3,898
Net Amount	$ (41,938)	$ (61,568)

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Activity related to ARO liability
Asset retirement obligations at beginning of the period	$ 11,896	$ 10,583
Accretion expense	528	477
Liabilities incurred	151	111
Liabilities settled/divested	(647)
Revisions to estimate	3,541	725
Asset retirement obligations at end of period	15,469	11,896
Less: current asset retirement obligations	(225)
Long-term asset retirement obligations at the end of the period	$ 15,244	$ 11,896

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2022 MMcf / d	Dec. 31, 2023 MMcf / d	Dec. 31, 2022 USD ($) contract $ / Mcf
Obligations under drilling rig commitments
Commitment next year			$ 7.3
Purchase commitments related to equipment
Total			2.7
Drilling rig commitment			2.7
Early termination penalty			$ 1.1
Minimum volume commitment | MMcf / d	20,000
Volume commitment term	5 years
Minimum
Purchase commitments related to equipment
Treating rate paid | $ / Mcf			1.65
Gathering, transportation and sales | West Texas
Purchase commitments related to equipment
Number of long-term crude oil sales contracts to which the entity is committed | contract			2
Number of long-term natural gas sales contracts to which the entity is committed | contract			12
Gathering, transportation and sales | West Texas | Minimum
Purchase commitments related to equipment
Period of commitment for production from the date of first production			1 year
Gathering, transportation and sales | West Texas | Maximum
Purchase commitments related to equipment
Period of commitment for production from the date of first production			20 years
Plan
Purchase commitments related to equipment
Minimum volume commitment | MMcf / d		12,000

STOCKHOLDERS' EQUITY - Warrants

STOCKHOLDERS' EQUITY - Warrants (Details) - $ / shares	Oct. 08, 2019	Dec. 31, 2022	Dec. 31, 2021
Stockholders' equity
Percentage of shares of class of directors	85%
Warrants issued	6,900,000
Warrant term (in years)	3 years
Warrant maturity date		Oct. 08, 2022
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Authorized shares of capital stock, after amendment of certificate of incorporation	101,000,000
Authorized shares of common stock, after amendment of certificate of incorporation	100,000,000	100,000,000	100,000,000
Minimum
Stockholders' equity
Exercise price (in dollars per share)	$ 40.17
Maximum
Stockholders' equity
Exercise price (in dollars per share)	60.45
Preferred Stock
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.0001
Authorized shares of preferred stock, after amendment of certificate of incorporation	1,000,000

STOCKHOLDERS' EQUITY - Incentiv

STOCKHOLDERS' EQUITY - Incentive Plans (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Jan. 29, 2020 shares
Number of Shares
Outstanding at the end of the period (in shares)	478,152
Weighted Average Exercise Price Per Share
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 28.32
Weighted Average Remaining Contractual Term
Options exercisable	0	0
Outstanding at the end of the period	4 years 2 months 12 days
Number of Shares
Unvested outstanding shares at the beginning of the period (in shares)	775,515	874,134
Granted (in shares)	225,700	12,000
Vested (in shares)	(98,121)	(95,994)
Forfeited (in shares)	(13,700)	(14,625)
Unvested outstanding shares at the end of the period (in shares)	889,394	775,515
Weighted Average Grant Date fair Value Per Share
Unvested outstanding shares at the beginning of the period (in dollars per share) | $ / shares	$ 9.16	$ 9.48
Granted (in dollars per share) | $ / shares	13.75	8
Vested (in dollars per share) | $ / shares	11.40	11.51
Forfeited (in dollars per share) | $ / shares	12.20	11.89
Unvested outstanding shares at the end of the period (in dollars per share) | $ / shares	$ 10.03	$ 9.16
Aggregate Intrinsic Value
Aggregate Intrinsic Value at the beginning of the period (in dollars) | $	$ 2,914	$ 3,287
Aggregate Intrinsic Value at the end of period (in dollars) | $	3,993	2,914
General and administrative
Stock-based compensation
Compensation expense recorded | $	$ 2,200	$ 2,000
2020 Incentive Plan | Common Stock
Stock-based compensation
Aggregate number of shares available			1,800,000
Maximum number of shares that remained reserved for issuance under the Plan	200,000
2020 Incentive Plan | Stock options
Stock-based compensation
Percentage of awards vesting on the annual anniversary date of the grant	0.25
2020 Incentive Plan | Restricted Stock
Additional Disclosures
Total fair value of shares vested | $	$ 1,700

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock-based compensation
Outstanding RSU	889,394	775,515	874,134
Number of shares granted	225,700	12,000
Granted (in dollars per share)	$ 13.75	$ 8
Restricted Stock
Stock-based compensation
Unrecognized compensation expense other than options	$ 2.6	$ 2.2
Weighted average remaining vesting period	1 year	1 year 9 months 18 days
Restricted Stock | Minimum
Stock-based compensation
Vesting period	3 years
Restricted Stock | Maximum
Stock-based compensation
Vesting period	4 years
Restricted Stock | Employee
Stock-based compensation
Outstanding RSU	900,000
2020 Incentive Plan | Time-Based RSU | Employee
Stock-based compensation
Number of shares granted	400,000
Aggregate average grant date fair value	$ 5.2
2020 Incentive Plan | Time-Based RSU | Employee | Minimum
Stock-based compensation
Vesting period	3 years
2020 Incentive Plan | Time-Based RSU | Employee | Maximum
Stock-based compensation
Vesting period	4 years
2020 Incentive Plan | Performance share units (PSU) | Employee
Stock-based compensation
Number of shares granted	200,000
Aggregate average grant date fair value	$ 1.8
Compensation expense recorded	$ 0
2020 Incentive Plan | Market-Based RSU | Employee
Stock-based compensation
Number of shares granted	300,000
Aggregate average grant date fair value	$ 1.9

STOCKHOLDERS' EQUITY - Stock Op

STOCKHOLDERS' EQUITY - Stock Options (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) tranche $ / shares shares	Dec. 31, 2020 $ / shares	Dec. 31, 2021 shares
Stock-based compensation
Outstanding common stock (in shares) | shares	478,152
Number of tranches | tranche	3
Weighted average exercise price | $ / shares	$ 28.32
Options exercisable | shares	0		0
Outstanding at the end of the period	4 years 2 months 12 days
Tranche One
Stock-based compensation
Outstanding common stock (in shares) | shares	159,384
Weighted average exercise price | $ / shares	$ 18.91
Tranche Two
Stock-based compensation
Outstanding common stock (in shares) | shares	159,384
Weighted average exercise price | $ / shares	$ 28.23
Tranche Three
Stock-based compensation
Outstanding common stock (in shares) | shares	159,384
Weighted average exercise price | $ / shares	$ 37.83
Stock options
Stock-based compensation
Weighted average grant date fair value of grants | $ / shares		$ 3.36
2020 Incentive Plan | Stock options
Stock-based compensation
Vesting period	4 years
Percentage of awards vesting on the annual anniversary date of the grant	0.25
Expiration term	7 years
Unrecognized compensation expense stock option | $	$ 0.2
Weighted average remaining vesting period	8 months 12 days

STOCKHOLDERS' EQUITY - Stock _2

STOCKHOLDERS' EQUITY - Stock Options Assumptions (Details)	12 Months Ended
	Dec. 31, 2020 $ / shares
Stock options
Stock-based compensation
Weighted average grant date fair value of grants	$ 3.36
Assumptions:
Stock price volatility (as a percent)	61.87%
Risk free rate of return (as a percent)	1.21%
Expected term	4 years 9 months
Restricted Stock
Stock-based compensation
Weighted average grant date fair value of grants	$ 6.13
Assumptions:
Stock price volatility (as a percent)	51.79%
Risk free rate of return (as a percent)	1.22%
Expected term	3 years 10 months 24 days

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income tax benefit (provision)
Total income tax benefit (provision)	$ 0	$ 0
Differences between the actual income tax benefit (provision) and the expected income tax benefit (provision)
Federal statutory rate (as a percent)	21%	21%
Expected tax benefit (provision)	$ (3,893)	$ 5,947
Change in valuation allowance and related items	6,689	57,845
Attribute reduction	(2,704)	(64,024)
Permanent adjustments	(5)	404
Employee retention credit		(153)
Non-deductible compensation	(56)
Other	(31)	(19)
Total income tax benefit (provision)	0	0
Deferred noncurrent income tax assets:
Net operating loss carry-forwards	151,905	135,454
Built in loss adjustment Section 382	693	693
Capital loss carryforward	114,725	114,725
Stock-based compensation expense	2,334	1,870
Asset retirement obligations	2,558	2,447
Book-tax differences in property basis	129,427	148,008
Unrealized hedging transactions	8,676	12,929
Disallowed interest Section 163(j)	14,905	15,230
Embedded derivative liability	459	841
Operating lease liability	74	151
Other	874	382
Gross deferred noncurrent income tax assets	426,630	432,730
Valuation allowance	(425,005)	(431,694)
Deferred noncurrent income tax assets	1,625	1,036
Net operating loss limitation under IRC Section 382	723,300
Deferred noncurrent income tax liabilities:
Basis difference in debt	(885)	(885)
Investment in unconsolidated entities	(580)
Amortization of debt issuance costs	(86)
Lease right of use	(74)	(151)
Deferred noncurrent income tax liabilities	(1,625)	(1,036)
Net noncurrent deferred income tax assets (liabilities)	$ 0	$ 0

INCOME TAXES - Operating loss c

INCOME TAXES - Operating loss carryforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
INCOME TAXES
Deferred tax expense	$ 0	$ 0
Net operating loss carryforwards	1,200
Net operating loss carryforward subject expiration in 2037	$ 92,600
Carryforward period of NOLs that will expire in 2037	20 years
Net operating carryforward not subject to expiration	$ 630,700
Valuation allowance	425,005	431,694
Increase in valuation allowance	(6,700)
Unrecognized tax benefits	0	0
Interest or penalties recognized in the statement of financial position	$ 0	0
Open tax year (in years)	3 years
Interest and penalties	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 08, 2022	Dec. 31, 2022	Dec. 31, 2021
Basic:
Net income (loss)		$ 18,539	$ (28,317)
Weighted average basic number of common shares outstanding		16,331,000	16,261,000
Basic net income (loss) per share of common share (in dollars per share)		$ 1.14	$ (1.74)
Diluted:
Net income (loss)		$ 18,539	$ (28,317)
Weighted average basic number of common shares outstanding		16,331,000	16,261,000
Common stock equivalent shares representing shares included upon Vesting of restricted shares		179,000
Weighted average diluted number of common shares outstanding		16,510,000	16,261,000
Diluted net income (loss) per share of common stock (in dollars per share)		$ 1.12	$ (1.74)
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect		5,800,000	7,700,000
Market Based Restricted Stock Units
Diluted:
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect		500,000
Warrants expired	6,900,000
Number of shares of common stock that can be purchased from warrants	1

ADDITIONAL FINANCIAL STATEMEN_3

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2022	May 31, 2022	Dec. 31, 2021
Accounts receivable:
Oil, natural gas and natural gas liquids revenues	$ 33,980		$ 34,110
Joint interest accounts	3,201		2,503
Other	793		193
Total	37,974		36,806
Prepaids and other:
Prepaids	715		975
Funds in escrow	341		390
Other	75		1
Total	1,131		1,366
Other assets:
Investment in unconsolidated affiliate	1,561
Oil, natural gas and natural gas liquids revenues			1,010
Funds in escrow	527		1,227
Other	739		33
Total	2,827		2,270
Accounts payable and accrued liabilities:
Trade payables	42,919		25,315
Accrued oil and natural gas capital costs	19,911		4,881
Revenues and royalties payable	26,759		22,763
Accrued interest expense	160		42
Accrued employee compensation	2,300		3,735
Accrued lease operating expenses	8,005		6,090
Drilling advances from partners	41
Total	$ 100,095		$ 62,826
Brazos Amine Treater, LLC [Member]
Accounts payable and accrued liabilities:
Equity interest		5%

SUBSEQUENT EVENTS - Preferred S

SUBSEQUENT EVENTS - Preferred Stock (Details)	Mar. 28, 2023 USD ($) shareholder $ / shares shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares	Oct. 08, 2019 $ / shares
Subsequent Event [Line Items]
Par value of common stock (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001	$ 0.0001
Convertible Preferred stock | Subsequent event
Subsequent Event [Line Items]
Shares issued | shares	25,000
Number of Shareholders in Private Placement | shareholder	3
Preferred stock voting rights	no
Percentage of board of directors represented who were part of private placement	50%
Percentage of liquidation preference paid to redeem shares	107.50%
Preferred stock, conversion price (in dollars per share) | $ / shares	$ 1,000
Threshold of time following change of control	150 days
Preferred stock, redemption amount	$ 25,000,000
Period past maturity date of term loan agreement if election of cash payment option is not permitted	1 year
Proceeds from preferred stock offering	$ 24,375,000
Offering costs including placement agent fees	$ 625,000
Convertible Preferred stock | Subsequent event | Minimum
Subsequent Event [Line Items]
Percentage of liquidation preference paid to redeem shares	100%
Convertible Preferred stock | Subsequent event | Maximum
Subsequent Event [Line Items]
Percentage of liquidation preference paid to redeem shares	120%
P I K Accrual [Member] | Convertible Preferred stock | Subsequent event
Subsequent Event [Line Items]
Dividend rate (as a percent)	14.50%
Annually [Member] | Convertible Preferred stock | Subsequent event
Subsequent Event [Line Items]
Dividend rate (as a percent)	16%