Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.0001 | |
Trading Symbol | BATL | |
Security Exchange Name | NYSEAMER | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,457,531 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001282648 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Oil, natural gas and natural gas liquids sales: | ||
Total oil, natural gas and natural gas liquids sales | $ 64,273 | $ 81,408 |
Other | 869 | 194 |
Total operating revenues | 65,142 | 81,602 |
Production: | ||
Lease operating | 11,691 | 11,524 |
Workover and other | 1,335 | 865 |
Taxes other than income | 3,190 | 4,951 |
Gathering and other | 16,517 | 15,255 |
General and administrative | 5,137 | 4,985 |
Depletion, depreciation and accretion | 16,148 | 10,220 |
Total operating expenses | 54,018 | 47,800 |
Income (loss) from operations | 11,124 | 33,802 |
Other income (expenses): | ||
Net gain (loss) on derivative contracts | 19,473 | (123,858) |
Interest expense and other | (7,786) | (2,688) |
Total other income (expenses) | 11,687 | (126,546) |
Income (loss) before income taxes | 22,811 | (92,744) |
Income tax benefit (provision) | ||
Net income (loss) | $ 22,811 | $ (92,744) |
Net income (loss) per share of common stock: | ||
Basic (in dollars per share) | $ 1.29 | $ (5.69) |
Diluted (in dollars per share) | $ 1.28 | $ (5.69) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 16,393 | 16,303 |
Diluted (in shares) | 16,535 | 16,303 |
Oil | ||
Oil, natural gas and natural gas liquids sales: | ||
Total oil, natural gas and natural gas liquids sales | $ 54,215 | $ 62,524 |
Natural gas | ||
Oil, natural gas and natural gas liquids sales: | ||
Total oil, natural gas and natural gas liquids sales | 2,900 | 8,881 |
NGLs | ||
Oil, natural gas and natural gas liquids sales: | ||
Total oil, natural gas and natural gas liquids sales | $ 7,158 | $ 10,003 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 23,245 | $ 32,726 |
Accounts receivable, net | 32,456 | 37,974 |
Assets from derivative contracts | 15,103 | 16,244 |
Restricted cash | 90 | 90 |
Prepaids and other | 1,028 | 1,131 |
Total current assets | 71,922 | 88,165 |
Oil and natural gas properties (full cost method): | ||
Subject to depletion | 723,957 | 713,585 |
Unevaluated | 62,651 | 62,621 |
Gross oil and natural gas properties | 786,608 | 776,206 |
Less - accumulated depletion | (406,603) | (390,796) |
Net oil and natural gas properties | 380,005 | 385,410 |
Other operating property and equipment: | ||
Other operating property and equipment | 4,659 | 4,434 |
Less - accumulated depreciation | (1,319) | (1,209) |
Net other operating property and equipment | 3,340 | 3,225 |
Other noncurrent assets: | ||
Assets from derivative contracts | 5,434 | 5,379 |
Operating lease right of use assets | 258 | 352 |
Other assets | 3,023 | 2,827 |
Total assets | 463,982 | 485,358 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 58,643 | 100,095 |
Liabilities from derivative contracts | 18,008 | 29,286 |
Current portion of long-term debt | 40,106 | 35,067 |
Operating lease liabilities | 258 | 352 |
Asset retirement obligations | 225 | 225 |
Total current liabilities | 117,240 | 165,025 |
Long-term debt, net | 174,536 | 182,676 |
Other noncurrent liabilities: | ||
Liabilities from derivative contracts | 22,838 | 33,649 |
Asset retirement obligations | 15,441 | 15,244 |
Other | 3,074 | 4,136 |
Commitments and contingencies (Note 9) | ||
Temporary equity: | ||
Series A redeemable convertible preferred stock: 25,000 shares of $.0001 par value authorized, issued and outstanding as of March 31, 2023 | 25,033 | |
Stockholders' equity: | ||
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,456,563 and 16,344,815 shares issued and outstanding as of March 31, 2023 and 2022, respectively | 2 | 2 |
Additional paid-in capital | 332,952 | 334,571 |
Retained earnings (accumulated deficit) | (227,134) | (249,945) |
Total stockholders' equity | 105,820 | 84,628 |
Total liabilities, temporary equity and stockholders' equity | $ 463,982 | $ 485,358 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized | 25,000 | |
Preferred stock, shares issued | 25,000 | |
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 | 16,456,563 | 16,344,815 |
Common stock, shares outstanding | 16,456,563 | 16,344,815 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total |
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) | (92,744) | (92,744) | ||
Long-term incentive plan vestings (in shares) | 89 | |||
Tax withholding on vesting of restricted stock units | (461) | (461) | ||
Tax withholding on vesting of restricted stock units (in shares) | (26) | |||
Stock-based compensation | 452 | 452 | ||
Balances at Mar. 31, 2022 | $ 2 | 332,178 | (361,228) | (29,048) |
Balances (in shares) at Mar. 31, 2022 | 16,337 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 13,047 | 13,047 | ||
Long-term incentive plan vestings (in shares) | 1 | |||
Reduction in shares to cover individuals' tax withholding | (6) | (6) | ||
Stock-based compensation | 594 | 594 | ||
Balances at Jun. 30, 2022 | $ 2 | 332,766 | (348,181) | (15,413) |
Balances (in shares) at Jun. 30, 2022 | 16,338 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 105,888 | 105,888 | ||
Long-term incentive plan vestings (in shares) | 8 | |||
Reduction in shares to cover individuals' tax withholding | (25) | (25) | ||
Reduction in shares to cover individuals' tax withholding (in shares) | (2) | |||
Stock-based compensation | 893 | 893 | ||
Balances at Sep. 30, 2022 | $ 2 | 333,634 | (242,293) | 91,343 |
Balances (in shares) at Sep. 30, 2022 | 16,344 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (7,652) | (7,652) | ||
Stock-based compensation | $ 1 | 937 | 937 | |
Balances at Dec. 31, 2022 | $ 2 | 334,571 | (249,945) | 84,628 |
Balances (in shares) at Dec. 31, 2022 | 16,345 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 22,811 | 22,811 | ||
Deemed dividends for Series A preferred stock | (1,492) | (1,492) | ||
Long-term incentive plan vestings (in shares) | 159 | |||
Tax withholding on vesting of restricted stock units | (454) | (454) | ||
Tax withholding on vesting of restricted stock units (in shares) | (47) | |||
Stock-based compensation | 327 | 327 | ||
Balances at Mar. 31, 2023 | $ 2 | $ 332,952 | $ (227,134) | $ 105,820 |
Balances (in shares) at Mar. 31, 2023 | 16,457 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,811 | $ (92,744) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depletion, depreciation and accretion | 16,148 | 10,220 |
Stock-based compensation, net | 227 | 384 |
Unrealized loss (gain) on derivative contracts | (21,004) | 91,038 |
Amortization of deferred loan costs | 1,798 | 899 |
Reorganization items | (744) | |
Accrued settlements on derivative contracts | (555) | 12,809 |
Change in fair value of embedded derivative liability | (1,062) | (2,032) |
Other expense (income) | 11 | |
Change in assets and liabilities: | ||
Accounts receivable | 6,928 | (5,638) |
Prepaids and other | 103 | 98 |
Accounts payable and accrued liabilities | (26,094) | (2,243) |
Net cash provided by (used in) operating activities | (689) | 12,047 |
Cash flows from investing activities: | ||
Oil and natural gas capital expenditures | (28,611) | (15,684) |
Proceeds received from sale of oil and natural gas assets | 1,189 | |
Other operating property and equipment capital expenditures | (269) | |
Other | (5) | (160) |
Net cash provided by (used in) investing activities | (27,696) | (15,844) |
Cash flows from financing activities: | ||
Repayments of borrowings | (5,017) | (85) |
Payment of deferred debt financing costs | (379) | |
Proceeds from issuance of preferred stock | 24,375 | |
Other | (454) | (461) |
Net cash provided by (used in) financing activities | 18,904 | (925) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (9,481) | (4,722) |
Cash, cash equivalents and restricted cash at beginning of period | 32,816 | 48,359 |
Cash, cash equivalents and restricted cash at end of period | $ 23,335 | $ 43,637 |
FINANCIAL STATEMENT PRESENTATIO
FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
FINANCIAL STATEMENT PRESENTATION | |
FINANCIAL STATEMENT PRESENTATION | 1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation 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 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. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. During interim periods, Battalion follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 30, 2023. Please refer to the notes in the Annual Report on Form 10- K for the year ended December 31, 2022 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. Liquidity and Cash Requirements The accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to execute our operating strategy is dependent on our ability to maintain adequate liquidity and continue to access capital, as needed. Our current business estimates and forecasts indicate that we will require additional liquidity to continue our operations and meet our debt requirements for the next 12 months from the issuance of these consolidated financial statements. In response to these events and conditions, we have implemented a plan to reduce operating and capital costs to improve cash flow, including recent reductions in headcount to align with planned drilling activity Debt, Risk and Uncertainties Supply chain issues. In periods of increasing commodity prices, the Company continues 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 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. When commodity prices decline significantly, our ability to finance our capital budget and operations may be adversely impacted to the extent we have not hedged our production, and we may also be required to record non-cash impairment charges as further described in Note 4, Oil and Natural Gas Properties 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” Use of Estimates The preparation of the Company’s unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” March 31, 2023 December 31, 2022 Cash and cash equivalents $ 23,245 $ 32,726 Restricted cash 90 90 Total cash, cash equivalents and restricted cash $ 23,335 $ 32,816 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. 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 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 March 31, 2023, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement. Recently Issued Accounting Pronouncements In the first quarter of 2023, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06) |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
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” 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” “Operating lease right of use assets” Three Months Ended March 31, 2023 2022 Lease cost Operating lease costs $ 98 $ 98 Short-term lease costs 193 2,108 Variable lease costs — — Total lease costs $ 291 $ 2,206 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 98 $ 98 Right-of-use assets obtained in exchange for new operating lease liabilities — — Weighted-average remaining lease term - operating leases 0.7 year 1.7 years Weighted-average discount rate - operating leases 4.29 % 4.29 % March 31, 2023 Remaining period in 2023 $ 261 Thereafter — Total operating lease payments 261 Less: discount to present value 3 Total operating lease liabilities 258 Less: current operating lease liabilities 258 Noncurrent operating lease liabilities $ — |
OPERATING REVENUES
OPERATING REVENUES | 3 Months Ended |
Mar. 31, 2023 | |
OPERATING REVENUES | |
OPERATING REVENUES | 3. OPERATING REVENUES Substantially all of the Company’s revenues are derived from single basin operations, 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 $29.0 million and $34.0 million as of March 31, 2023 and December 31, 2022, respectively, as “Accounts receivable, net” unaudited condensed 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). For additional information regarding our operating revenues, refer to our Annual Report on Form 10-K for the year ended December 31, 2022. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 3 Months Ended |
Mar. 31, 2023 | |
OIL AND NATURAL GAS PROPERTIES | |
OIL AND NATURAL GAS PROPERTIES | 4. OIL AND NATURAL GAS PROPERTIES 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. 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. 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. of our oil and natural gas properties |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
DEBT | |
DEBT | 5. DEBT As of March 31, 2023 and December 31, 2022, the Company’s debt consisted of the following (in thousands): March 31, 2023 December 31, 2022 Term loan credit facility $ 230,000 $ 235,000 Other 291 190 Total debt (Face Value) 230,291 235,190 Less: Current portion of long-term debt (1) (40,106) (35,067) Other (2) (15,649) (17,447) Long-Term Debt, net $ 174,536 $ 182,676 (1) Amounts primarily reflect amortization payments under the Amended Term Loan Agreement due within one year. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $11.6 million and $13.0 million at March 31, 2023 and December 31, 2022, respectively, but also includes remaining amounts to be accreted associated with the embedded derivative separately presented and further described in Note 6, Fair Value Measurements. Term Loan Credit Facility The Company may elect, at its option, to prepay any borrowing outstanding under the Amended Term Loan Agreement subject to the following prepayment premiums: Period (after applicable borrowing date (1) ) Premium Months 0 - 12 Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 2.00% Months 25-26 1.00% Months 37-48 0.00% (1) Applicable borrowing dates are November 2021 for the original $200 million borrowed and April and November 2022 for the $20 million and $15 million in delayed draw borrowings, respectively. The Company is required to make scheduled remaining amortization payments in the aggregate amount of $115.0 million from the fiscal quarter ending June 30, 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 substantially all of the assets of the Borrower and such direct and indirect subsidiaries, and by 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. ● Asset Coverage Ratio of not less than 1.80 to 1.00 as of March 31, 2023 and the last day of each fiscal quarter ● Total Net Leverage Ratio of not greater than 2.75 to 1.00 as of March 31, 2023, and 2.50 to 1.00 as of each fiscal quarter thereafter, and ● 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 0.75 to 1.00 as of March 31, 2023, returning to 1.00 to 1.00 for the quarter ended June 30, 2023 and for each fiscal quarter thereafter. As of March 31, 2023, the Company was in compliance with th e financial covenants under the Amended Term Loan Agreement. The Amended Term Loan Agreement also contains certain events of default, including non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; judgments; change of control; and voluntary and involuntary bankruptcy. In conjunction with entering into the original Term Loan Agreement in November 2021, the Company agreed to pay a premium to the lenders upon a future change of control event in which a majority of the board of directors or the Chief Executive Officer or the Chief Financial Officer positions do not remain held by the same persons as before the change of control event (Change of Control Call Option). The premium is reduced over time through the payment of interest and certain fees. The Change of Control Call Option is accounted for as an embedded derivative not clearly and closely related to the host debt instrument. Accordingly, the Company recorded the initial fair value separately on the unaudited condensed consolidated balance sheet within “Other noncurrent liabilities” “Interest expense and other” Fair Value Measurements |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
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 unaudited condensed consolidated balance sheets, but also the impact of the Company’s nonperformance risk on its own liabilities. Fair value is defined 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 March 31, 2023 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 20,537 $ — $ 20,537 Liabilities Liabilities from commodity-based derivative contracts $ — $ 40,846 $ — $ 40,846 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 Derivative contracts listed above as Level 2 include fixed-price swaps, collars, 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,” “Interest expense and other” Change of Control Call Option Balance at December 31, 2022 $ 4,136 Change in fair value (1,062) Balance at March 31, 2023 $ 3,074 Estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, cash equivalents and 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 approximates carrying value because the interest rates approximate current market rates. The Company follows the provisions of ASC 820, for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. These provisions apply to the Company’s initial recognition of asset retirement obligations for which fair value is used. The asset retirement obligation estimates are derived from historical costs and management’s expectation of future cost environments; and therefore, the Company has designated these liabilities as Level 3. See Note 8, “Asset Retirement Obligations,” |
DERIVATIVE AND HEDGING ACTIVITI
DERIVATIVE AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2023 | |
DERIVATIVE AND HEDGING ACTIVITIES | |
DERIVATIVE AND HEDGING ACTIVITIES | 7. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to commodity price risks relating to its ongoing business operations. 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 unaudited condensed consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the unaudited condensed 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 March 31, 2023, the Company did not post collateral under any of its derivative contracts as they are secured under the Company’s 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 commodity derivative contracts in the unaudited condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): Balance sheet location March 31, 2023 December 31, 2022 Balance sheet location March 31, 2023 December 31, 2022 Current assets $ 15,103 $ 16,244 Current liabilities $ (18,008) $ (29,286) Other noncurrent assets 5,434 5,379 Other noncurrent liabilities (22,838) (33,649) $ 20,537 $ 21,623 $ (40,846) $ (62,935) 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 unaudited condensed consolidated statements of operations (in thousands): Location of net gain (loss) Three Months Ended on derivative contracts on March 31, Type Statement of Operations 2023 2022 Commodity derivative contracts: Unrealized gain (loss) Other income (expenses) $ 21,004 $ (91,038) Realized gain (loss) Other income (expenses) (1,531) (32,820) Total net gain (loss) $ 19,473 $ (123,858) At March 31, 2023, 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) 1,748,502 1,805,885 1,195,171 918,741 Weighted average price $ 68.69 $ 63.69 $ 60.97 $ 63.58 Basis swap: Total volumes (Bbls) 1,678,779 1,801,951 1,195,171 918,741 Weighted average price $ 0.42 $ 0.27 $ 0.15 $ (0.02) WTI NYMEX roll: Total volumes (Bbls) 1,682,452 1,784,914 1,195,171 918,741 Weighted average price $ 0.56 $ 0.27 $ 0.11 $ (0.03) Natural gas: Fixed-price swap: Total volumes (MMBtu) 4,938,380 4,410,134 3,687,113 1,975,283 Weighted average price $ 3.71 $ 3.54 $ 3.35 $ 4.00 Two-way collar: Total volumes (MMBtu) 1,082,869 2,610,639 1,381,321 1,838,812 Weighted average price (call) $ 5.21 $ 5.08 $ 5.09 $ 5.24 Weighted average price (put) $ 3.76 $ 3.67 $ 3.67 $ 3.63 Basis swap: Total volumes (MMBtu) 6,021,249 7,020,722 5,049,878 3,814,095 Weighted average price $ (0.88) $ (0.86) $ (0.66) $ (0.77) Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Gross Amounts - Consolidated Balance Sheet $ 20,537 $ 21,623 $ (40,846) $ (62,935) Amounts Not Offset - Consolidated Balance Sheet (16,933) (20,997) 16,933 20,997 Net Amount $ 3,604 $ 626 $ (23,913) $ (41,938) 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties” “Depletion, depreciation and accretion” The Company recorded the following activity related to its ARO liability (in thousands): Liability for asset retirement obligations as of December 31, 2022 $ 15,469 Accretion expense 186 Liabilities incurred during the period 11 Liability for asset retirement obligations as of March 31, 2023 15,666 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Commitments As of March 31, 2023, the Company has an active drilling rig commitment of approximately $0.3 million that will be incurred through mid-April 2023. In May 2022, the Company 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, the Company has a minimum volume commitment of 20,000 Mcf per day under the gas treating agreement, with certain rollover rights and start-up flexibility, for an initial term of five years from the in-service date of the facility. Under the gas treating agreement, the Company will pay a treating rate that begins at $1.65/Mcf and varies based on volumes delivered to the facility. At an initial treated volume of 12,000 Mcf/d, the commitment would be approximately $7.3 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 March 31, 2023, 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 from the date of first production. Contingencies 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. |
REDEEMABLE CONVERTIBLE PREFERRE
REDEEMABLE CONVERTIBLE PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2023 | |
Redeemable Convertible Preferred Stock [Abstract] | |
REDEEMABLE CONVERTIBLE PREFERRED STOCK | 10. REDEEMABLE CONVERTIBLE PREFERRED STOCK Overview. an employee that has been elected to and serves on our board of directors, comprised of six members. The issuance of preferred stock was approved by our board of directors upon recommendation by a special committee of disinterested directors that was established to evaluate the proposed terms of the preferred stock. For accounting purposes, upon issuance of the preferred stock on March 28, 2023, we recorded $23.5 million ($25 million net of original issue discount and accrued offering costs) as mezzanine equity (temporary equity) on the condensed consolidated balance sheets because it is not mandatorily redeemable but does contain a redemption feature at the option of the preferred holders that is considered not solely within the company’s control. Due to the redeemable nature of the preferred stock as further discussed below, at March 31, 2023, we recorded a non-cash deemed dividend of approximately $1.5 million to increase the carrying value of the preferred stock to its redemption amount of approximately $25 million. Voting Rights. Dividends. PIK Accrual per annum on the Liquidation Preference and be added to the Liquidation Preference. Currently, the Company’s Amended Term Loan Agreement prohibits the payment of cash dividends. Additionally, while the Company has not declared or paid dividends on its common stock since its inception, holders of preferred stock will be entitled to participate in any dividends or permitted distributions to holders of common stock on an as-converted basis should they occur. Conversion Features. Change of Control Conversion Ratio trading days immediately preceding the closing date). Additionally, the Company has the right, at its option, to convert outstanding shares of preferred stock into common stock at the Conversion Ratio should the Company meet certain calculated valuation metrics which when divided by the number of outstanding shares of common stock equals or exceeds Redemption Features (Issuer). Redemption Price ● at any time prior to 120 days following the closing date, 100% of the Liquidation Preference at such time; ● at any time on or after 120 days following the closing date but prior to the 180 days following the closing date, 102% of the Liquidation Preference at such time; ● at any time on or after 180 days following the closing date but on or prior to the first anniversary of the closing date, 105% of the Liquidation Preference at such time; ● at any time after the first anniversary of the closing date but on or prior to the second anniversary of the closing date, 108% of the Liquidation Preference at such time; and ● at any time after the second anniversary of the closing date, 120% of the Liquidation Preference at such time. Redemption Features (Change of Control) . In the event of a change of control, holders have the right to receive: ● at any time on or prior to 150 days following the issuance date, and at the election of the Company, a cash payment equal to the Liquidation Preference or equity consideration equal to the 107.5% of the Liquidation Preference, or ● at any time after the one hundred fiftieth ( 150 th) day following the issuance date, the Company shall offer each Holder a cash payment equal to the Redemption Price. Holders shall also have the ability to elect conversion into common stock at the Conversion Ratio. Until (i) a termination of or certain amendments to the Amended Term Loan Agreement or (ii) one year 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 11. STOCKHOLDERS’ EQUITY Incentive Plans For the three months ended March 31, 2023 and 2022, the Company recognized expense of $ "General and administrative" Restricted Stock 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 three , depending on award, or when the performance or market conditions occur as described further described in our Annual Report on Form 10-K for the year ended December 31, 2022. During the three months ended March 31, 2023, the Company granted less than 0.1 million shares of RSUs at a weighted average grant date fair value of $10.68 per share. At March 31, 2023, the Company had $1.9 million of unrecognized compensation expense related to non-vested RSU awards to be recognized over a weighted average period of 1 year . 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. Stock options, when 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 four year period at a rate of one from the date of grant. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, 2023 2022 Basic: Net income (loss) $ 22,811 $ (92,744) Less: Preferred stock dividend (1,492) — Less: Undistributed earnings allocable to preferred shareholders (120) — Net income (loss) available to common stockholders $ 21,199 $ (92,744) Weighted average basic number of common shares outstanding - basic 16,393 16,303 Basic net income (loss) per share of common stock $ 1.29 $ (5.69) Diluted: Net income (loss) available to common stockholders - basic $ 21,199 $ (92,744) Reallocation of undistributed earnings 1 — Net income (loss) available to common stockholders - diluted $ 21,200 $ (92,744) Weighted average basic number of common shares outstanding - basic 16,393 16,303 Common stock equivalent shares representing shares issuable upon: Exercise of warrants and stock options Anti-dilutive Anti-dilutive Vesting of restricted stock units 142 Anti-dilutive Weighted average diluted number of common shares outstanding - diluted 16,535 16,303 Diluted net income (loss) per share of common stock $ 1.28 $ (5.69) We compute earnings per share in accordance with ASC Topic 260, Earnings per Share ("ASC 260"), which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the two-class method which allocates earnings for the reporting period between common shareholders and other security holders based on their respective participation rights in undistributed earnings. Diluted EPS was calculated using the two-class method, as this computation was more dilutive than the calculation using the if-converted method. For additional information on our Series A redeemable convertible preferred stock, which is considered a participating security, see Note 10. For the three months ended March 31, 2023, common stock equivalents, including options and restricted stock units, totaling 0.5 million were anti-dilutive and not included in the computation of diluted earnings per share of common stock. For the three months ended March 31, 2022, common stock equivalents, including warrants, options and restricted stock units, totaling |
ADDITIONAL FINANCIAL STATEMENT
ADDITIONAL FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | 13. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Accounts receivable, net: Oil, natural gas and natural gas liquids revenues $ 28,734 $ 33,980 Joint interest accounts 1,694 3,201 Other 2,028 793 $ 32,456 $ 37,974 Prepaids and other: Prepaids $ 673 $ 715 Funds in escrow 342 341 Other 13 75 $ 1,028 $ 1,131 Other assets (Non-current): Investment in unconsolidated affiliate (1) $ 1,519 $ 1,561 Oil, natural gas and natural gas liquids revenues 233 — Funds in escrow 532 527 Other 739 739 $ 3,023 $ 2,827 Accounts payable and accrued liabilities: Trade payables $ 23,234 $ 42,919 Accrued oil and natural gas capital costs 2,570 19,911 Revenues and royalties payable 23,569 26,759 Accrued interest expense 80 160 Accrued employee compensation 1,401 2,300 Accrued lease operating expenses 7,779 8,005 Other 10 41 $ 58,643 $ 100,095 (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 the 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 . |
FINANCIAL STATEMENT PRESENTAT_2
FINANCIAL STATEMENT PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
FINANCIAL STATEMENT PRESENTATION | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation 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 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. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company’s management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. During interim periods, Battalion follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 30, 2023. Please refer to the notes in the Annual Report on Form 10- K for the year ended December 31, 2022 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. |
Liquidity and Cash Requirements | Liquidity and Cash Requirements The accompanying unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to execute our operating strategy is dependent on our ability to maintain adequate liquidity and continue to access capital, as needed. Our current business estimates and forecasts indicate that we will require additional liquidity to continue our operations and meet our debt requirements for the next 12 months from the issuance of these consolidated financial statements. In response to these events and conditions, we have implemented a plan to reduce operating and capital costs to improve cash flow, including recent reductions in headcount to align with planned drilling activity Debt, |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements. |
Risk and Uncertainties | Risk and Uncertainties Supply chain issues. In periods of increasing commodity prices, the Company continues 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 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. When commodity prices decline significantly, our ability to finance our capital budget and operations may be adversely impacted to the extent we have not hedged our production, and we may also be required to record non-cash impairment charges as further described in Note 4, Oil and Natural Gas Properties 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” |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” March 31, 2023 December 31, 2022 Cash and cash equivalents $ 23,245 $ 32,726 Restricted cash 90 90 Total cash, cash equivalents and restricted cash $ 23,335 $ 32,816 |
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. |
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 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 March 31, 2023, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Amended Term Loan Agreement. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In the first quarter of 2023, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06) |
FINANCIAL STATEMENT PRESENTAT_3
FINANCIAL STATEMENT PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FINANCIAL STATEMENT PRESENTATION | |
Schedule Of Cash, Cash Equivalents And Restricted Cash | March 31, 2023 December 31, 2022 Cash and cash equivalents $ 23,245 $ 32,726 Restricted cash 90 90 Total cash, cash equivalents and restricted cash $ 23,335 $ 32,816 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
LEASES | |
Schedule of Company's leases | The table below summarizes the Company’s leases for the three months ended March 31, 2023 and 2022 (in thousands, except term and discount rate): Three Months Ended March 31, 2023 2022 Lease cost Operating lease costs $ 98 $ 98 Short-term lease costs 193 2,108 Variable lease costs — — Total lease costs $ 291 $ 2,206 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 98 $ 98 Right-of-use assets obtained in exchange for new operating lease liabilities — — Weighted-average remaining lease term - operating leases 0.7 year 1.7 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 as of March 31, 2023 are presented in the table below (in thousands): March 31, 2023 Remaining period in 2023 $ 261 Thereafter — Total operating lease payments 261 Less: discount to present value 3 Total operating lease liabilities 258 Less: current operating lease liabilities 258 Noncurrent operating lease liabilities $ — |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
DEBT | |
Schedule of debt | As of March 31, 2023 and December 31, 2022, the Company’s debt consisted of the following (in thousands): March 31, 2023 December 31, 2022 Term loan credit facility $ 230,000 $ 235,000 Other 291 190 Total debt (Face Value) 230,291 235,190 Less: Current portion of long-term debt (1) (40,106) (35,067) Other (2) (15,649) (17,447) Long-Term Debt, net $ 174,536 $ 182,676 (1) Amounts primarily reflect amortization payments under the Amended Term Loan Agreement due within one year. (2) Amounts primarily reflect unamortized debt issuance costs of approximately $11.6 million and $13.0 million at March 31, 2023 and December 31, 2022, respectively, but also includes remaining amounts to be accreted associated with the embedded derivative separately presented and further described in Note 6, Fair Value Measurements. |
Schedule of prepayment premiums | The Company may elect, at its option, to prepay any borrowing outstanding under the Amended Term Loan Agreement subject to the following prepayment premiums: Period (after applicable borrowing date (1) ) Premium Months 0 - 12 Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 2.00% Months 25-26 1.00% Months 37-48 0.00% (1) Applicable borrowing dates are November 2021 for the original $200 million borrowed and April and November 2022 for the $20 million and $15 million in delayed draw borrowings, respectively. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of the Company's financial assets and liabilities | March 31, 2023 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 20,537 $ — $ 20,537 Liabilities Liabilities from commodity-based derivative contracts $ — $ 40,846 $ — $ 40,846 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 |
Schedule of changes in fair value of the change of control call option | 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, 2022 $ 4,136 Change in fair value (1,062) Balance at March 31, 2023 $ 3,074 |
DERIVATIVE AND HEDGING ACTIVI_2
DERIVATIVE AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 commodity derivative contracts in the unaudited condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): Balance sheet location March 31, 2023 December 31, 2022 Balance sheet location March 31, 2023 December 31, 2022 Current assets $ 15,103 $ 16,244 Current liabilities $ (18,008) $ (29,286) Other noncurrent assets 5,434 5,379 Other noncurrent liabilities (22,838) (33,649) $ 20,537 $ 21,623 $ (40,846) $ (62,935) |
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 unaudited condensed consolidated statements of operations (in thousands): Location of net gain (loss) Three Months Ended on derivative contracts on March 31, Type Statement of Operations 2023 2022 Commodity derivative contracts: Unrealized gain (loss) Other income (expenses) $ 21,004 $ (91,038) Realized gain (loss) Other income (expenses) (1,531) (32,820) Total net gain (loss) $ 19,473 $ (123,858) |
Schedule of open derivative contracts | At March 31, 2023, 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) 1,748,502 1,805,885 1,195,171 918,741 Weighted average price $ 68.69 $ 63.69 $ 60.97 $ 63.58 Basis swap: Total volumes (Bbls) 1,678,779 1,801,951 1,195,171 918,741 Weighted average price $ 0.42 $ 0.27 $ 0.15 $ (0.02) WTI NYMEX roll: Total volumes (Bbls) 1,682,452 1,784,914 1,195,171 918,741 Weighted average price $ 0.56 $ 0.27 $ 0.11 $ (0.03) Natural gas: Fixed-price swap: Total volumes (MMBtu) 4,938,380 4,410,134 3,687,113 1,975,283 Weighted average price $ 3.71 $ 3.54 $ 3.35 $ 4.00 Two-way collar: Total volumes (MMBtu) 1,082,869 2,610,639 1,381,321 1,838,812 Weighted average price (call) $ 5.21 $ 5.08 $ 5.09 $ 5.24 Weighted average price (put) $ 3.76 $ 3.67 $ 3.67 $ 3.63 Basis swap: Total volumes (MMBtu) 6,021,249 7,020,722 5,049,878 3,814,095 Weighted average price $ (0.88) $ (0.86) $ (0.66) $ (0.77) |
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts | Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Gross Amounts - Consolidated Balance Sheet $ 20,537 $ 21,623 $ (40,846) $ (62,935) Amounts Not Offset - Consolidated Balance Sheet (16,933) (20,997) 16,933 20,997 Net Amount $ 3,604 $ 626 $ (23,913) $ (41,938) |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of activity related to ARO liability | The Company recorded the following activity related to its ARO liability (in thousands): Liability for asset retirement obligations as of December 31, 2022 $ 15,469 Accretion expense 186 Liabilities incurred during the period 11 Liability for asset retirement obligations as of March 31, 2023 15,666 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, 2023 2022 Basic: Net income (loss) $ 22,811 $ (92,744) Less: Preferred stock dividend (1,492) — Less: Undistributed earnings allocable to preferred shareholders (120) — Net income (loss) available to common stockholders $ 21,199 $ (92,744) Weighted average basic number of common shares outstanding - basic 16,393 16,303 Basic net income (loss) per share of common stock $ 1.29 $ (5.69) Diluted: Net income (loss) available to common stockholders - basic $ 21,199 $ (92,744) Reallocation of undistributed earnings 1 — Net income (loss) available to common stockholders - diluted $ 21,200 $ (92,744) Weighted average basic number of common shares outstanding - basic 16,393 16,303 Common stock equivalent shares representing shares issuable upon: Exercise of warrants and stock options Anti-dilutive Anti-dilutive Vesting of restricted stock units 142 Anti-dilutive Weighted average diluted number of common shares outstanding - diluted 16,535 16,303 Diluted net income (loss) per share of common stock $ 1.28 $ (5.69) |
ADDITIONAL FINANCIAL STATEMEN_2
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
Schedule of additional financial statement information, balance sheet | Certain balance sheet amounts are comprised of the following (in thousands): March 31, 2023 December 31, 2022 Accounts receivable, net: Oil, natural gas and natural gas liquids revenues $ 28,734 $ 33,980 Joint interest accounts 1,694 3,201 Other 2,028 793 $ 32,456 $ 37,974 Prepaids and other: Prepaids $ 673 $ 715 Funds in escrow 342 341 Other 13 75 $ 1,028 $ 1,131 Other assets (Non-current): Investment in unconsolidated affiliate (1) $ 1,519 $ 1,561 Oil, natural gas and natural gas liquids revenues 233 — Funds in escrow 532 527 Other 739 739 $ 3,023 $ 2,827 Accounts payable and accrued liabilities: Trade payables $ 23,234 $ 42,919 Accrued oil and natural gas capital costs 2,570 19,911 Revenues and royalties payable 23,569 26,759 Accrued interest expense 80 160 Accrued employee compensation 1,401 2,300 Accrued lease operating expenses 7,779 8,005 Other 10 41 $ 58,643 $ 100,095 (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 the 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 . |
FINANCIAL STATEMENT PRESENTAT_4
FINANCIAL STATEMENT PRESENTATION (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) segment shareholder | |
Basis of Presentation and Principles of Consolidation | |
Number of Shareholders in Private Placement | shareholder | 3 |
Commitment letter from investors to purchase additional equity | $ | $ 20 |
Number of operating segments | segment | 1 |
FINANCIAL STATEMENT PRESENTAT_5
FINANCIAL STATEMENT PRESENTATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
FINANCIAL STATEMENT PRESENTATION | ||||
Cash and cash equivalents | $ 23,245 | $ 32,726 | ||
Restricted cash | 90 | 90 | ||
Total cash, cash equivalents and restricted cash | $ 23,335 | $ 32,816 | $ 43,637 | $ 48,359 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lease cost | |||
Operating lease costs | $ 98 | $ 98 | |
Short-term lease costs | 193 | 2,108 | |
Total lease costs | 291 | 2,206 | |
Other information | |||
Operating cash flows from operating leases | $ 98 | $ 98 | |
Weighted-average remaining lease term - operating leases | 8 months 12 days | 1 year 8 months 12 days | |
Weighted-average discount rate - operating leases | 4.29% | 4.29% | |
Initial lease term | 2 years 3 months 18 days | 2 years 3 months 18 days |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Future minimum lease payments for non-cancellable operating leases | ||
Remaining period in 2023 | $ 261 | |
Total operating lease payment | 261 | |
Less: discount to present value | (3) | |
Total operating lease liabilities | 258 | |
Less: current operating lease liabilities | $ 258 | $ 352 |
OPERATING REVENUES - Revenue Re
OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable | ||
Disaggregation of operating revenue | ||
Due from contracts with customers | $ 29 | $ 34 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES - Ceiling Test Value of Company's Reserves (Details) | 3 Months Ended | |
Mar. 31, 2023 $ / MMBTU $ / bbl | Mar. 31, 2022 $ / bbl $ / MMBTU | |
Ceiling Limitation Disclosures | ||
First-day-of-month 12-month average price for natural gas (in $/MMBtu) | $ / MMBTU | 5.96 | 4.09 |
First-day-of-month 12-month average price for crude oil used in ceiling test impairment (in dollars per barrel) | $ / bbl | 91.38 | 75.28 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current and long-term debt | ||
Debt | $ 230,291 | $ 235,190 |
Current Portion of Long-Term Debt(1) | (40,106) | (35,067) |
Other(2) | (15,649) | (17,447) |
Total long-term debt | 174,536 | 182,676 |
Unamortized debt issuance costs | 11,600 | 13,000 |
Term loan credit facility | ||
Current and long-term debt | ||
Debt | 230,000 | 235,000 |
Paycheck Protection Program Loan [Member] | ||
Current and long-term debt | ||
Debt | $ 291 | $ 190 |
DEBT - Term Loan Credit Facilit
DEBT - Term Loan Credit Facility (Details) $ in Thousands | 3 Months Ended | |||||
Nov. 14, 2022 USD ($) | Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) | Nov. 30, 2022 USD ($) | Apr. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Lender fees paid | $ 1,798 | $ 899 | ||||
Term loan credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount available for issuance of letters of credit | $ 3,600 | |||||
Basis spread on variable rate (as a percent) | 0.50% | |||||
Weighted average interest rate | 12.20% | |||||
Lender fees paid | $ 2,400 | |||||
Maturity date | Nov. 24, 2025 | |||||
Amount outstanding | $ 230,000 | $ 200,000 | ||||
Letters of credit outstanding | 1,400 | |||||
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 | |||||
Aggregate scheduled amortization payments | $ 115,000 | |||||
Term loan credit facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Current ratio | 100% | |||||
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, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Interest plus | 1% | |||||
Term loan credit facility | February 15, 2021 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment term | 25 months | |||||
Term loan credit facility | February 15, 2021 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment term | 26 months | |||||
Term loan credit facility | February 15, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest plus | 0% | |||||
Term loan credit facility | February 15, 2022 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment term | 37 months | |||||
Term loan credit facility | February 15, 2022 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment term | 48 months | |||||
Term loan credit facility | SOFR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 7.65% | |||||
Applicable margin (as a percent) | 0.15% | |||||
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Asset coverage ratio | 180% | |||||
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Current ratio | 75% | |||||
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Net Leverage Ratio | 275% | |||||
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 | 250% | |||||
Delayed Draw Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Incremental borrowing that we can make if we meet certain criteria | $ 15,000 | $ 20,000 |
DEBT - Debt Maturities and Debt
DEBT - Debt Maturities and Debt Issuance Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Issuance Costs | ||
Debt issuance costs | $ 15,649 | $ 17,447 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Asset transfers between levels | $ 0 | |
Liabilities | ||
Liability transfers between levels | 0 | |
Recurring | Total | ||
Assets | ||
Receivables from derivative contracts | 20,537 | $ 21,623 |
Liabilities | ||
Liabilities from derivative contracts | 40,846 | 62,935 |
Recurring | Level 2 | ||
Assets | ||
Receivables from derivative contracts | 20,537 | 21,623 |
Liabilities | ||
Liabilities from derivative contracts | $ 40,846 | $ 62,935 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Change of Control Call Option (Details) - Change of Control Call Option $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at the beginning of the period | $ 4,136 |
Change in fair value | (1,062) |
Balance at the end of the period | $ 3,074 |
DERIVATIVE AND HEDGING ACTIVI_3
DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative and hedging activities | ||
Asset derivative contracts | $ 20,537 | $ 21,623 |
Liability derivative contracts | (40,846) | (62,935) |
Derivatives not designated as hedging contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 20,537 | 21,623 |
Liability derivative contracts | (40,846) | (62,935) |
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 15,103 | 16,244 |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 5,434 | 5,379 |
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | (18,008) | (29,286) |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | $ (22,838) | $ (33,649) |
DERIVATIVE AND HEDGING ACTIVI_4
DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative and hedging activities | ||
Total net gain (loss) on derivative contracts | $ 19,473 | $ (123,858) |
Derivatives not designated as hedging contracts | Commodity contracts | ||
Derivative and hedging activities | ||
Total net gain (loss) on derivative contracts | 19,473 | (123,858) |
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense | ||
Derivative and hedging activities | ||
Unrealized gain (loss) on commodity contracts | 21,004 | (91,038) |
Realized gain (loss) on commodity contracts | $ (1,531) | $ (32,820) |
DERIVATIVE AND HEDGING ACTIVI_5
DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details) | 3 Months Ended |
Mar. 31, 2023 MMBTU $ / bbl $ / MMBTU bbl | |
January 2023 - December 2023 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,748,502 |
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 | 68.69 |
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 4,938,380 |
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) | 3.71 |
January 2023 - December 2023 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,678,779 |
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 | 0.42 |
January 2023 - December 2023 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 6,021,249 |
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) | (0.88) |
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,682,452 |
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 | 0.56 |
January 2023 - December 2023 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,082,869 |
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) | 5.21 |
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) | 3.76 |
January 2024 - December 2024 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,805,885 |
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 | 63.69 |
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Minimum | |
Derivative and hedging activities | |
Floor (in dollars per Mmbtu's/Bbl's) | 4,410,134 |
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 | 1,801,951 |
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 | 7,020,722 |
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) | (0.86) |
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,784,914 |
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 | 0.27 |
January 2024 - December 2024 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 2,610,639 |
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) | 5.08 |
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) | 3.67 |
January 2025 - December 2025 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,195,171 |
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 | 60.97 |
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 3,687,113 |
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) | 3.35 |
January 2025 - December 2025 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,195,171 |
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 | 0.15 |
January 2025 - December 2025 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 5,049,878 |
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) | (0.66) |
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,195,171 |
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 | 0.11 |
January 2025 - December 2025 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,381,321 |
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) | 5.09 |
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) | 3.67 |
January 2026 - December 2026 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 918,741 |
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 | 63.58 |
January 2026 - December 2026 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,975,283 |
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 |
January 2026 - December 2026 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 918,741 |
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 | (0.02) |
January 2026 - December 2026 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 3,814,095 |
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) | (0.77) |
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 918,741 |
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 | (0.03) |
January 2026 - December 2026 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,838,812 |
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) | 5.24 |
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) | 3.63 |
DERIVATIVE AND HEDGING ACTIVI_6
DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Assets | ||
Gross Amounts Presented in the Consolidated Balance Sheet | $ 20,537 | $ 21,623 |
Amounts Not Offset in the Consolidated Balance Sheet | (16,933) | (20,997) |
Net Amount | 3,604 | 626 |
Derivative Liabilities | ||
Gross Amounts Presented in the Consolidated Balance Sheet | (40,846) | (62,935) |
Amounts Not Offset in the Consolidated Balance Sheet | 16,933 | 20,997 |
Net Amount | $ (23,913) | $ (41,938) |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Activity related to ARO liability | |
Asset retirement obligations at beginning of the period | $ 15,469 |
Accretion expense | 186 |
Liabilities incurred | 11 |
Asset retirement obligations at end of period | $ 15,666 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
May 31, 2022 USD ($) MMcf / d $ / Mcf | Mar. 31, 2023 USD ($) contract | Dec. 31, 2024 MMcf / d | |
Obligations under drilling rig commitments | |||
Commitment next year | $ 7.3 | ||
Purchase commitments related to equipment | |||
Total | $ 0.3 | ||
Drilling rig commitment | $ 0.3 | ||
Minimum volume commitment | MMcf / d | 20,000 | ||
Volume commitment term | 5 years | ||
Minimum | |||
Purchase commitments related to equipment | |||
Treating rate paid | $ / Mcf | 1.65 | ||
West Texas | |||
Purchase commitments related to equipment | |||
Number of long-term natural gas sales contracts to which the entity is committed | contract | 12 | ||
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 | ||
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 |
REDEEMABLE CONVERTIBLE PREFER_2
REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) shareholder | Mar. 28, 2023 USD ($) shareholder person $ / shares shares | Mar. 31, 2023 USD ($) shareholder | |
Class of Stock [Line Items] | |||
Number of Shareholders in Private Placement | shareholder | 3 | 3 | |
Board of directors, members | person | 6 | ||
Series A redeemable convertible preferred stock | $ 25,033 | $ 23,500 | $ 25,033 |
Series A redeemable convertible preferred stock redemption amount | $ 25,000 | 25,000 | 25,000 |
Deemed dividends for Series A preferred stock | $ 1,492 | ||
Redeemable Convertible Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Proceeds from preferred stock offering | 24,400 | ||
Beneficial conversion proceeds | $ 600 | ||
Shares issued | shares | 25,000 | ||
Number of Shareholders in Private Placement | shareholder | 3 | ||
Preferred stock voting rights | no | ||
Dividend rate (as a percent) | 14.50% | ||
Liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | ||
Preferred Stock, Liquidation Preference, Value | $ 25,000 | ||
Percentage of liquidation preference paid to redeem shares | 107.50% | 18% | 107.50% |
Threshold of time following change of control | 20 days | ||
Percentage of common stock value over Conversion Price threshold | 130% | ||
Period past maturity date of term loan agreement if election of cash payment option is not permitted | 1 year | ||
Redeemable Convertible Preferred Stock [Member] | Maximum | |||
Class of Stock [Line Items] | |||
Threshold of time following change of control | 150 days | ||
Redeemable Convertible Preferred Stock [Member] | Annually [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate (as a percent) | 16% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period One [Member] | |||
Class of Stock [Line Items] | |||
Percentage of liquidation preference paid to redeem shares | 100% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period One [Member] | Maximum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 120 days | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Two [Member] | |||
Class of Stock [Line Items] | |||
Percentage of liquidation preference paid to redeem shares | 102% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Two [Member] | Minimum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 120 days | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Two [Member] | Maximum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 180 days | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Three [Member] | |||
Class of Stock [Line Items] | |||
Percentage of liquidation preference paid to redeem shares | 105% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Three [Member] | Minimum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 180 days | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Three [Member] | Maximum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 1 year | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Four [Member] | |||
Class of Stock [Line Items] | |||
Percentage of liquidation preference paid to redeem shares | 108% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Four [Member] | Minimum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 1 year | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Four [Member] | Maximum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 2 years | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Five [Member] | |||
Class of Stock [Line Items] | |||
Percentage of liquidation preference paid to redeem shares | 120% | ||
Redeemable Convertible Preferred Stock [Member] | Redemption Period Five [Member] | Minimum | |||
Class of Stock [Line Items] | |||
Redemption feature, time period after closing date | 2 years |
STOCKHOLDERS' EQUITY - Incentiv
STOCKHOLDERS' EQUITY - Incentive Plans (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Directors and employees | ||
Stock-based compensation | ||
Compensation expense recorded | $ 0.2 | $ 0.4 |
2020 Incentive Plan | ||
Stock-based compensation | ||
Aggregate number of shares available | 1.8 | |
Maximum number of shares that remained reserved for issuance under the Plan | 0.3 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock (Details) - Restricted Stock $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Stock-based compensation | |
Number of shares granted | shares | 0.1 |
Granted (in dollars per share) | $ / shares | $ 10.68 |
Unrecognized compensation expense other than options | $ | $ 1.9 |
Weighted average remaining vesting period | 1 year |
Minimum | |
Stock-based compensation | |
Vesting period | 3 years |
Maximum | |
Stock-based compensation | |
Vesting period | 4 years |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Options (Details) - Stock options $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
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 | $ | $ 0.1 |
Weighted average remaining vesting period | 1 year |
Granted (in shares) | shares | 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||||
Oct. 08, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Basic: | ||||||
Net income (loss) | $ 22,811 | $ (7,652) | $ 105,888 | $ 13,047 | $ (92,744) | |
Less: Preferred stock dividend | (1,492) | |||||
Less: Undistributed earnings allocable to preferred shareholders | (120) | |||||
Net income (loss) available to common stockholders | $ 21,199 | $ (92,744) | ||||
Weighted average basic number of common shares outstanding - basic | 16,393 | 16,303 | ||||
Basic net income (loss) per share of common share (in dollars per share) | $ 1.29 | $ (5.69) | ||||
Diluted: | ||||||
Net income (loss) available to common stockholders - basic | $ 21,199 | $ (92,744) | ||||
Reallocation of undistributed earnings | 1 | |||||
Net income (loss) available to common stockholders - diluted | $ 21,200 | $ (92,744) | ||||
Weighted average basic number of common shares outstanding - basic | 16,393 | 16,303 | ||||
Common stock equivalent shares representing shares included upon Vesting of restricted shares | 142 | |||||
Weighted average diluted number of common shares outstanding - diluted | 16,535 | 16,303 | ||||
Diluted net income (loss) per share of common stock (in dollars per share) | $ 1.28 | $ (5.69) | ||||
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect | 500 | 7,700 | ||||
Market Based Restricted Stock Units | ||||||
Diluted: | ||||||
Warrants expired | 6,900 |
ADDITIONAL FINANCIAL STATEMEN_3
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | May 31, 2022 |
Accounts receivable: | |||
Oil, natural gas and natural gas liquids revenues | $ 28,734 | $ 33,980 | |
Joint interest accounts | 1,694 | 3,201 | |
Other | 2,028 | 793 | |
Total | 32,456 | 37,974 | |
Prepaids and other: | |||
Prepaids | 673 | 715 | |
Funds in escrow | 342 | 341 | |
Other | 13 | 75 | |
Total | 1,028 | 1,131 | |
Other assets: | |||
Investment in unconsolidated affiliate | 1,519 | 1,561 | |
Oil, natural gas and natural gas liquids revenues | 233 | ||
Funds in escrow | 532 | 527 | |
Other | 739 | 739 | |
Total | 3,023 | 2,827 | |
Accounts payable and accrued liabilities: | |||
Trade payables | 23,234 | 42,919 | |
Accrued oil and natural gas capital costs | 2,570 | 19,911 | |
Revenues and royalties payable | 23,569 | 26,759 | |
Accrued interest expense | 80 | 160 | |
Accrued employee compensation | 1,401 | 2,300 | |
Accrued lease operating expenses | 7,779 | 8,005 | |
Other | 10 | 41 | |
Total | $ 58,643 | $ 100,095 | |
Brazos Amine Treater, LLC [Member] | |||
Accounts payable and accrued liabilities: | |||
Equity interest | 5% |