Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | RING ENERGY, INC. | |
Entity Central Index Key | 0001384195 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | REI | |
Entity Common Stock, Shares Outstanding | 67,810,711 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash | $ 2,606,769 | $ 3,363,726 |
Accounts receivable | 27,941,378 | 12,643,478 |
Joint interest billing receivable | 2,553,377 | 578,144 |
Operating lease asset | 417,567 | 0 |
Prepaid expenses and retainers | 3,013,688 | 258,909 |
Total Current Assets | 36,532,779 | 16,844,257 |
Properties and Equipment | ||
Oil and natural gas properties subject to depletion and amortization | 990,608,164 | 641,121,398 |
Fixed assets subject to depreciation | 1,465,551 | 1,465,551 |
Total Properties and Equipment | 992,073,715 | 642,586,949 |
Accumulated depreciation, depletion and amortization | (113,505,141) | (100,576,087) |
Net Properties and Equipment | 878,568,574 | 542,010,862 |
Deferred Income Taxes | 9,741,903 | 7,786,479 |
Deferred Financing Costs | 353,384 | 424,061 |
Total Assets | 925,196,640 | 567,065,659 |
Current Liabilities | ||
Accounts payable | 63,862,098 | 51,910,432 |
Acquisition liability to be settled through equity | 28,356,396 | 0 |
Operating lease liability | 417,567 | |
Derivative liabilities | 340,685 | 0 |
Total Current Liabilities | 92,976,746 | 51,910,432 |
Revolving line of credit | 84,500,000 | 39,500,000 |
Acquisition liability to be settled through refinancing into credit facility | 256,877,766 | 0 |
Asset retirement obligations | 16,318,790 | 13,055,797 |
Total Liabilities | 450,673,302 | 104,466,229 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 150,000,000 shares authorized; 63,229,710 shares and 63,229,710 shares issued and outstanding, respectively | 63,230 | 63,230 |
Additional paid-in capital | 495,726,558 | 494,892,093 |
Accumulated deficit | (21,266,450) | (32,355,893) |
Total Stockholders' Equity | 474,523,338 | 462,599,430 |
Total Liabilities and Stockholders' Equity | $ 925,196,640 | $ 567,065,659 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 63,229,710 | 63,229,710 |
Common Stock, Shares, Outstanding | 63,229,710 | 63,229,710 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Oil and Gas Revenues | $ 41,798,315 | $ 29,891,391 |
Costs and Operating Expenses | ||
Oil and gas production costs | 9,408,764 | 5,781,910 |
Oil and gas production taxes | 2,082,875 | 1,425,882 |
Depreciation, depletion and amortization | 12,929,054 | 8,501,379 |
Asset retirement obligation accretion | 215,945 | 161,120 |
Lease expense | 128,175 | 0 |
General and administrative expense | 6,798,017 | 3,085,980 |
Total Costs and Operating Expenses | 31,562,830 | 18,956,271 |
Income from Operations | 10,235,485 | 10,935,120 |
Other Income (Expense) | ||
Interest income | 12,236 | 8,953 |
Interest expense | (773,017) | (44,483) |
Realized loss on derivatives | 0 | (1,475,026) |
Unrealized loss on change in fair value of derivatives | (340,685) | (790,701) |
Net Other Income (Expense) | (1,101,466) | (2,301,257) |
Income before tax provision | 9,134,019 | 8,633,863 |
(Provision for) Benefit from Income Taxes | 1,955,424 | (2,968,229) |
Net Income | $ 11,089,443 | $ 5,665,634 |
Basic Income per Share | $ 0.18 | $ 0.10 |
Diluted Income per Share | $ 0.17 | $ 0.10 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (AccumulatedDeficit) [Member] |
Balance at Dec. 31, 2017 | $ 356,603,340 | $ 54,224 | $ 397,904,769 | $ (41,355,653) |
Balance (in shares) at Dec. 31, 2017 | 54,224,029 | |||
Share-based compensation | 1,081,199 | $ 0 | 1,081,199 | 0 |
Common stock issued for cash, net | 81,822,066 | $ 6,164 | 81,815,902 | 0 |
Common stock issued for cash, net (in shares) | 6,164,000 | |||
Net income (loss) | 5,665,634 | $ 0 | 0 | 5,665,634 |
Balance at Mar. 31, 2018 | 445,172,239 | $ 60,388 | 480,801,870 | (35,690,019) |
Balance (in shares) at Mar. 31, 2018 | 60,388,029 | |||
Balance at Dec. 31, 2018 | 462,599,430 | $ 63,230 | 494,892,093 | (32,355,893) |
Balance (in shares) at Dec. 31, 2018 | 63,229,710 | |||
Share-based compensation | 834,465 | $ 0 | 834,465 | 0 |
Net income (loss) | 11,089,443 | 0 | 0 | 11,089,443 |
Balance at Mar. 31, 2019 | $ 474,523,338 | $ 63,230 | $ 495,726,558 | $ (21,266,450) |
Balance (in shares) at Mar. 31, 2019 | 63,229,710 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 11,089,443 | $ 5,665,634 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 12,929,054 | 8,501,379 |
Accretion expense | 215,945 | 161,120 |
Share-based compensation | 834,465 | 1,081,199 |
Deferred income tax provision | 1,918,144 | 1,809,625 |
Excess tax deficiency related to share-based compensation | (3,873,568) | 1,158,604 |
Change in fair value of derivative instruments | 340,685 | 790,701 |
Changes in assets and liabilities, net of Acquisition: | ||
Accounts receivable | (15,808,739) | (195,642) |
Prepaid expenses and retainers | 180,452 | 166,082 |
Accounts payable | 2,111,804 | (32,653,094) |
Settlement of asset retirement obligation | (107,770) | (149,772) |
Net Cash Provided by (Used in) Operating Activities | 9,829,915 | (13,664,164) |
Cash Flows From Investing Activities | ||
Payments to purchase oil and natural gas properties | (13,358,132) | (1,061,195) |
Payments to develop oil and natural gas properties | (42,228,740) | (35,081,925) |
Proceeds from disposal of fixed assets subject to depreciation | 0 | 14,738 |
Net Cash Used in Investing Activities | (55,586,872) | (36,128,382) |
Cash Flows From Financing Activities | ||
Proceeds from revolving line of credit | 45,000,000 | 0 |
Proceeds from issuance of common stock, net of offering costs | 0 | 81,822,066 |
Net Cash Provided by Financing Activities | 45,000,000 | 81,822,066 |
Net Change in Cash | (756,957) | 32,029,520 |
Cash at Beginning of Period | 3,363,726 | 15,006,581 |
Cash at End of Period | 2,606,769 | 47,036,101 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 708,951 | 44,483 |
Noncash Investing and Financing Activities | ||
Asset retirement obligation incurred during development | 175,173 | 380,807 |
Capitalized expenditures attributable to drilling projects financed through current liabilities | 34,605,000 | 13,000,000 |
Acquisition of oil and gas properties | ||
Assumption of joint interest billing receivable | 1,464,394 | 0 |
Assumption of prepaid assets | 2,864,554 | 0 |
Assumption of accounts and revenue payables | (1,234,862) | 0 |
Asset retirement obligations | (2,979,645) | 0 |
Acquisition payable to be settled through equity | (28,356,396) | 0 |
Acquisition payable to be settled through cash payment | (256,877,766) | 0 |
Oil and gas properties subject to amortization | $ 285,119,721 | $ 0 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Condensed Financial Statements – The accompanying condensed financial statements prepared by Ring Energy, Inc. (the “Company” or “Ring”) have not been audited by an independent registered public accounting firm. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all adjustments necessary for fair presentation of the results of operations for the periods presented, which adjustments were of a normal recurring nature, except as disclosed herein. The results of operations for the three months ended M are not necessarily indicative of the results to be expected for the full year ending December 31, 2019. Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s a on Form 10-K . Organization and Nature of Operations – The Company Company’s oil and natural gas sales, profitability and future growth are dependent upon prevailing and future prices for oil and natural gas and the successful acquisition, exploration and development of oil and natural gas properties. Oil and natural gas prices have historically been volatile and may be subject to wide fluctuations in the future. A substantial decline in oil and natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil and natural gas reserves that may be economically produced. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the Company’s future results of operations. Fair Measurements – Fair value is 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 Financial Accounting Standards Board (“FASB”) has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. Fair Values of Financial Instruments – The carrying amounts reported for the revolving line of credit approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The carrying amounts of accounts receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. Derivative Instruments and Hedging Activities – The Company may periodically enter into derivative contracts to manage its exposure to commodity risk. These derivative contracts, which are generally placed with major financial institutions, may take the form of forward contracts, futures contracts, swaps, or options. The oil and gas reference prices upon which the commodity derivative contracts are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company for its oil and gas production. When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. During the three months ended March 31, 2019, the change in fair value resulted in the recognition of unrealized loss of $340,685 on derivative contracts. During 2018, the change in fair value resulted in the recognition of an unrealized loss of $790,701 for the three months ended March 31, 2018. During the three months ended March 31, 2019, the Company had no realized gain or losses During the three months ended March 31, 2018, the Company had a realized loss on derivatives of $1,475,026. Concentration of Credit Risk and Major Customer – The Company had cash in excess of federally insured limits at March 31, 2019. During the three months ended March 31, 2019, sales to two customers represented 51% and 32%, respectively, of the Company’s oil and gas revenues. At March 31, 2019, these two customers made up 40% and 26%, respectively, of the Company’s accounts receivable. Approximately 96% of the Company’s accounts and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Oil and Gas Properties – The Company uses the full cost method of accounting for oil and gas properties. Under this method, all costs associated with the acquisition, leasing, exploration, and development of oil and gas reserves are capitalized. Costs capitalized include acquisition costs, estimated future costs of abandonment and site restoration, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling and equipping productive and non-productive wells. Drilling costs include directly related overhead costs. Capitalized costs are generally categorized either as being subject to amortization or not subject to amortization. All of our costs are subject to amortization. All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. The Company evaluates oil and gas properties for impairment at least annually. Depreciation, depletion and amortization expense for the three months ended March 31, 2019, was $12,929,054, based on depletion at the rate of $14.72 per barrel of oil equivalent compared to $8,501,379 based on depletion at the rate of $16.36 per barrel of oil equivalent hese amounts include $41,154 of depreciation for the three months ended March 31, 2019, compared to $80,446 of depreciation for the three months ended March 31, 2018. Equipment, vehicles and leasehold improvements – Office equipment is valued at historical cost adjusted for impairment loss less accumulated depreciation. Historical costs include all direct costs associated with the acquisition of office equipment and placing such equipment in service. Depreciation is calculated using the straight-line method based upon an estimated useful life of 5 to 7 years. Asset Retirement Obligation – The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final estimated retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. Revenue Recognition – In January 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”). The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09. The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance regarding ASU 2014-09 does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. See Note 2 for additional information. Share-Based Employee Compensation – The Company has outstanding stock option grants to directors, officers and employees, which are described more fully in Note 11. The Company recognizes the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the related compensation expense over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. Share-Based Compensation to Non-Employees – The Company accounts for share-based compensation issued to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement date for these issuances is the earlier of (i) the date at which a commitment for performance by the recipient to earn the equity instruments is reached or (ii) the date at which the recipient’s performance is complete. Income Taxes – Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) The Company used the modified retrospective method to account for unrecognized excess tax benefits from prior periods. For the three months ended March 31, 2019, we recorded a decrease of $3,873,568 to our income tax provision. For the three months ended March 31, 2018, we recorded an increase of $1,158,604 to our income tax provision. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. Recently Adopted Accounting Pronouncements – In February 2016 , FASB issued ASU No. 2016 - 02 , Leases (Topic 842) . For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 . . In August 2017, the FASB issued ASU 2017-12 , Derivatives and Hedging (Topic 815), In February 2018, the FASB issued Accounting Standards Update (ASU) 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income statements. Recent Accounting Pronouncements Fair Value Measurement (Topic 820); Changes to the Disclosure Requirements for Fair Value Measurement. Basic and Diluted Earnings (Loss) per Share – Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except for those that are anti-dilutive. The dilutive effect of stock options and other share-based compensation is calculated using the treasury method. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2 – REVENUE RECOGNITION Oil sales Under the Company’s oil sales contracts, the Company sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received. Natural gas sales Under the Company’s natural gas sales contracts, the Company delivers unprocessed natural gas to a midstream processing entity at the wellhead. The midstream processing entity obtains control of the natural gas at the wellhead. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of natural gas. Under these agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery. Natural gas liquids sales Under the Company’s natural gas liquids sales contracts, the Company delivers natural gas liquids to a midstream entity. The Company recognizes revenue at the price received when control transfers to the purchaser at the point of delivery. Disaggregation of Revenue. For The Three Months Ended March 31, 2019 2018 Operating revenues Oil $ 40,877,983 $ 29,140,165 Natural gas 782,139 751,226 Natural gas liquids 138,193 - Total operating revenues $ 41,798,315 $ 29,891,391 All . |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | NOTE 3 – LEASES Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases The Company made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. The Company has also elected to adopt the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases and the practical expedient regarding land easements that exist prior to the adoption of ASU 2016-02. The Company did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. The Company has operating leases for our offices in Midland, Texas and Tulsa, Oklahoma with terms through January 31, 2020. The office space being leased in Tulsa is owned by Arenaco, LLC, a company that is owned by Mr. Rochford, Chairman of the Board of the Company, and Mr. McCabe, a Director of the Company. Future lease payments associated with these operating leases as of March 31, 2019 are as follows: 2019 (1) 2020 Operating lease payments $ 384,525 $ 42,725 (1) 2019 excludes the three months ended March 31, 2019. The following table provides supplemental information regarding cash flows from operations: 2019 Cash paid for amounts included in the measurement of lease liabilities $ 128,175 Short term lease costs for the period ended March 31, 2019 were $153,759. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 4 – EARNINGS PER SHARE INFORMATION For The Three Months Ended March 31, 2019 2018 Net Income $ 11,089,443 $ 5,665,634 Basic Weighted-Average Shares Outstanding 63,229,710 56,415,673 Effect of dilutive securities: Stock options 590,098 1,491,095 Restricted stock 172,741 42,621 Diluted Weighted-Average Shares Outstanding 63,992,549 57,949,389 Basic Income per Share $ 0.18 $ 0.10 Diluted Income per Share $ 0.17 $ 0.10 Stock options to purchase 993,500 shares of common stock and 326,200 shares of unvested restricted stock were excluded from the computation of diluted earnings per share during the three months ended March 31, 2019, as their effect would have been anti-dilutive. Stock options to purchase 583,500 shares of common stock were excluded from the computation of diluted earnings per share during the three months ended March 31, 2018, as their effect would have been anti-dilutive. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 5 – ACQUISITIONS On April 9, 2019, the Company completed the acquisition of oil and gas properties on the Northwest Shelf in Gaines, Yoakum, Runnels and Coke Counties, acquired properties consist of 49,754 gross (38,230 net) and include a 77% average working interest and a 58% average net revenue interest. The Company incurred approximately $3.5 million in acquisition related costs, which were recognized in general and administrative expense during the three months ended March 31, 2019. The whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of February 1, 2019, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. The estimated fair value of the acquired properties approximated the consideration paid, which the Company concluded approximated the fair value that would be paid by a typical market participant. The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired: Joint interest billing receivable $ 1,464,394 Prepaid assets 2,864,554 Liabilities assumed Draw on revolving line of credit (15,000,000 ) Accounts and revenues payable (1,234,862 ) Asset retirement obligations (2,979,645 ) Acquisition payable to be settled through equity (28,356,396 ) Acquisition payable to be settled through cash payment (256,877,766 ) Total Identifiable Net Assets $ (300,119,721 ) The $15 million draw on the revolving line of credit was the deposit placed at the signing of the Purchase and Sale Agreement on February 25, 2019. The Acquisition payable to be settled through equity was settled at the closing on April 9, 2019 through the issuance of 4,581,001 shares of common stock, of which 2,538,071 shares are being held in escrow to satisfy potential indemnification claims. The Acquisition payable to be settled through cash payment was settled at closing with the amendment and restatement of the Credit Facility as discussed further in Note 8. The Company will continue to evaluate the fair value of the assets and liabilities reflected above and will record any adjustments, if needed, in future periods. The following unaudited pro forma information is presented to reflect the operations of the Company as if the had been completed on January 1, 2019 and 2018, respectively: For The Three Months Ended March 31, 2019 2018 Oil and Gas Revenues $ 48,463,729 $ 42,759,403 Net Income (Loss) $ 11,379,247 $ 10,939,149 Basic Earnings (Loss) per Share $ 0.17 $ 0.18 Diluted Earnings (Loss) per Share $ 0.17 $ 0.17 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to fluctuations in crude oil and natural gas prices on its production. It can utilize derivative strategies that consist of either a single derivative instrument or a combination of instruments to manage the variability in cash flows associated with the forecasted sale of its future domestic oil and natural gas production. While the use of derivative instruments may limit or partially reduce the downside risk of adverse commodity price movements, the use also may limit future income from favorable commodity price movements. During March 2019, the Company entered into new derivative contracts in the form of costless collars of WTI Crude Oil prices in order to protect the Company’s cash flow from price fluctuation and maintain its capital programs. “Costless collars” are the combination of two options, a put option (floor) and call option (ceiling) with the options structured so that the premium paid for the put option will be offset by the premium received from selling the call option. The trades were for a total of 3,500 barrels of oil per day and were for the period of April 2019 through December 2019. The following is a table reflects the put and call prices of those contracts: Date entered into Barrels per day Put price Call price 03/12/19 1,500 $ 50.00 $ 66.00 03/13/19 500 50.00 67.40 03/20/19 500 50.00 67.90 03/20/19 1,000 50.00 68.71 On September 25, 2017, the Company entered into derivative contracts in the form of costless collars for the period of January 2018 through December 2018 for 1,000 barrels per day with a put price of $49.00 and a call price of $54.60. On October 27, 2017, the Company entered into costless collars of WTI Crude Oil for the period of January 2018 through December 2018 for an additional 1,000 barrels of oil per day with a put price of $51.00 and a call price of $54.80. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying balance sheets. Any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of other income (expense) in the accompanying statements of operations. The use of derivative transactions involves the risk that the counterparties, which generally are financial institutions, will be unable to meet the financial terms of such transactions. At March 31, 2019, 100% of our volumes subject to derivative instruments are with lenders under our Credit Facility (as defined in Note 8). As noted in Note 13, the Company entered into additional derivative contracts subsequent to March 31, 2019. These contracts were for an additional 2,000 barrels per day for the period April 2019 through December 2019 and for 2,000 barrels per day for the period January 2020 through December 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | NOTE 7 – FAIR VALUE MEASUREMENTS Fair value is 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 authoritative guidance requires disclosure of the framework for measuring fair value and requires that fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy. We continue to evaluate our inputs to ensure the fair value level classification is appropriate. When transfers between levels occur, it is our policy to assume that the transfer occurred at the date of the event or change in circumstances that caused the transfer. The fair values of the Company’s derivatives are not actively quoted in the open market. The Company uses a market approach to estimate the fair values of its derivative instruments on a recurring basis, utilizing commodity futures pricing for the underlying commodities provided by a reputable third party, a Level 2 fair value measurement. The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis. Fair Value Measurement Classification Quoted prices in Actives Markets for Identical Assets or (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of March 31, 2019 Oil and gas derivative contracts $ - $ (340,685 ) $ - $ (340,685 ) Total $ - $ (340,685 ) $ - $ (340,685 ) |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 8 – REVOLVING LINE OF CREDIT On July 1, 2014, the Company entered into a Credit Agreement with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders (“Administrative Agent”), which was amended on June 14, 2018, May 18, 2016, June 26, 2015, and July 24, 2015 (as amended, the “Credit Facility”). The Credit Facility provides for a senior secured revolving credit facility with a maximum borrowing amount of $500 million. The Credit Facility matures on June 26, 2020, and is secured by substantially all of the Company’s assets. In June 2018, the borrowing base (the “Borrowing Base”) for the Credit Facility was increased from $60 million to $175 million. The Borrowing Base is subject to periodic redeterminations, mandatory reductions and further adjustments from time to time. The Borrowing Base will be redetermined semi-annually on each May 1 and November 1. The Borrowing Base will also be reduced in certain circumstances such as the sale or disposition of certain oil and gas properties of the Company or its subsidiaries and cancellation of certain hedging positions. The Credit Facility allows for Eurodollar Loans and Base Rate Loans (each as defined in the Credit Facility). The interest rate on each Eurodollar Loan will be the adjusted LIBOR for the applicable interest period plus a margin between 1.75% and 2.75% (depending on the then-current level of borrowing base usage). The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the federal funds rate plus 0.5% per annum or the (iii) adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum, plus (b) a margin between 2.75% and 3.75% (depending on the then-current level of borrowing base usage). The Credit Facility contains certain covenants, which, among other things, require the maintenance of 4.0 to 1.0 and 1.0 to 1.0. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of March 31, 2019, $84,500,000 was outstanding on the Credit Facility. We are in compliance with all covenants contained in the Credit Facility. As reflected in Note 13, subsequent to March 31, 2019, the Company amended and restated its Credit Facility with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders (the “Amended and Restated Senior Credit Facility”). The Amended and Restated Senior Credit Facility, among other things, increases the maximum facility amount to $1 billion, increases the Borrowing Base to $425 million, extends the maturity date and makes other modifications to the terms of the Credit Facility. The Amended and Restated Senior Credit Facility has term of five years. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 9 – ASSET RETIREMENT OBLIGATION The Company provides for the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the estimated cash flows. The asset retirement obligation incurred at the time of drilling was computed using the annual credit-adjusted risk-free discount rate at the applicable dates. Changes in the asset retirement obligation were as follows: Balance, December 31, 2018 $ 13,055,797 Liabilities acquired 2,979,645 Liabilities incurred 175,173 Liabilities settled (107,770 ) Accretion expense 215,945 Balance, March 31, 2019 $ 16,318,790 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 10 – STOCKHOLDERS’ EQUITY Common Stock Issued in Public Offering – In February 2018, the Company closed on an underwritten public offering of 6,164,000 shares of its common stock, including 804,000 shares sold pursuant to the full exercise of an over-allotment option, at $14.00 per share for gross proceeds of $86,296,000. Total net proceeds from the offering were $81,819,073, after deducting underwriting commissions and offering expenses payable by the Company of $4,476,927. |
EMPLOYEE STOCK OPTIONS AND REST
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN Compensation expense charged against income for share-based awards during the three months ended March 31, 2019, was $834,465, as compared to $1,081,199 for the three months ended March 31, 2018. These amounts are included in general and administrative expense in the accompanying financial statements. In 2011, the board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 shares of common stock through the grant of qualified stock options, non-qualified stock options and restricted stock. In 2013, the Company’s stockholders approved an amendment to the long-term incentive plan, increasing the number of shares eligible under the plan to 5,000,000 shares. As of March 31, 2019, there were 684,020 shares remaining eligible for issuance under the plan. Stock Options A summary of the stock option activity as of March 31, 2019, and changes during the three months then ended is as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2018 2,751,000 $ 6.28 Granted - $ - Forfeited or rescinded (2,500 ) $ 11.70 Vested - $ - Outstanding, March 31, 2019 2,748,500 $ 6.28 5.3 Years $ 3,366,300 Exercisable, March 31, 2019 2,323,400 $ 5.42 4.6 Years The intrinsic value was calculated using the closing price on March 29, 2019 of $5.87. As of March 31, 2019, there was $1,501,300 of unrecognized compensation cost related to stock options that is expected be recognized over a weighted-average period of 1.8 years. Restricted Stock A summary of the restricted stock activity as of March 31, 2019, and changes during the three months then ended is as follows: Restricted stock Weighted- Average Grant Date Fair Value Outstanding, December 31, 2018 878,360 $ 7.36 Granted - - Forfeited or rescinded (4,400 ) 7.53 Vested - - Outstanding, March 31, 2019 873,960 $ 7.36 As of March 31, 2019, there was $2,547,688 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 2.3 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 – CONTINGENCIES AND COMMITMENTS Standby Letters of Credit – A commercial bank issued a standby letter of credit on behalf of the Company to the state of Texas for $250,000 to allow the Company to do business there. The standby letter of credit is valid until cancelled or matured and is collateralized by the revolving credit facility with the bank. The terms of the letter of credit are extended for a term of one year at a time. The Company intends to renew the standby letters of credit for as long as the Company does business in the state of Texas. No amounts have been drawn under the standby letters of credit. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 13 – SUBSEQUENT EVENTS Subsequent to March 31, 2019 , April 9, 2019 , the Company completed the acquisition of $249,062,999 and issuance of 4,581,001 shares of common stock As the Company had effective control of the assets beginning February 1, 2019 , this Acquisition was recorded effective that date and the balance sheet as of March 31, 2019 included Acquisition liabilities for such payment and stock issuance. The closing included settlement of those liabilities. In connection with the closing of the Acquisition, the Company entered into a registration rights agreement under which the Company agreed to register with the Securities and Exchange Commission the shares issued as consideration. The Company agreed to file a resale registration statement and to use reasonable best efforts to cause such registration statement to be declared effective as promptly as possible after the filing thereof. The Holders (as defined ) are also entitled to piggyback registration rights under the . Also subsequent to March 31, 2019, the Company amended and restated its Credit Facility dated July 1, 2014, with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial and Restated Senior Credit Facility, among other things, increases the maximum facility amount to $1 billion, increases the borrowing base to $425 million, extends the maturity date and makes other modifications to the terms of the Credit Facility. The Amended and Restated Senior Credit Facility has five- Also subsequent to March 31, 2019, the Company entered into additional derivative contracts. These contracts were for an additional 2,000 barrels per day for the period April 2019 through December 2019 and for 2,000 barrels per day for the period January 2020 through December 2020. Date entered into Barrels per day Put price Call price 2019 contracts 04/01/19 1,000 $ 50.00 $ 69.50 04/03/19 1,000 50.00 70.20 2020 contracts 04/01/19 1,000 50.00 65.83 04/01/19 1,000 50.00 65.40 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Condensed Financial Statements – The accompanying condensed financial statements prepared by Ring Energy, Inc. (the “Company” or “Ring”) have not been audited by an independent registered public accounting firm. In the opinion of the Company’s management, the accompanying unaudited financial statements contain all adjustments necessary for fair presentation of the results of operations for the periods presented, which adjustments were of a normal recurring nature, except as disclosed herein. The results of operations for the three months ended M are not necessarily indicative of the results to be expected for the full year ending December 31, 2019. Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s a on Form 10-K . |
Organization And Nature Of Operations [Policy Text Block] | Organization and Nature of Operations – The Company Company’s oil and natural gas sales, profitability and future growth are dependent upon prevailing and future prices for oil and natural gas and the successful acquisition, exploration and development of oil and natural gas properties. Oil and natural gas prices have historically been volatile and may be subject to wide fluctuations in the future. A substantial decline in oil and natural gas prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows and quantities of oil and natural gas reserves that may be economically produced. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the Company’s future results of operations. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Measurements – Fair value is 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 Financial Accounting Standards Board (“FASB”) has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments – The carrying amounts reported for the revolving line of credit approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The carrying amounts of accounts receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities – The Company may periodically enter into derivative contracts to manage its exposure to commodity risk. These derivative contracts, which are generally placed with major financial institutions, may take the form of forward contracts, futures contracts, swaps, or options. The oil and gas reference prices upon which the commodity derivative contracts are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company for its oil and gas production. When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. During the three months ended March 31, 2019, the change in fair value resulted in the recognition of unrealized loss of $340,685 on derivative contracts. During 2018, the change in fair value resulted in the recognition of an unrealized loss of $790,701 for the three months ended March 31, 2018. During the three months ended March 31, 2019, the Company had no realized gain or losses During the three months ended March 31, 2018, the Company had a realized loss on derivatives of $1,475,026. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Major Customer – The Company had cash in excess of federally insured limits at March 31, 2019. During the three months ended March 31, 2019, sales to two customers represented 51% and 32%, respectively, of the Company’s oil and gas revenues. At March 31, 2019, these two customers made up 40% and 26%, respectively, of the Company’s accounts receivable. Approximately 96% of the Company’s accounts and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. |
Oil and Gas Properties Policy [Policy Text Block] | Oil and Gas Properties – The Company uses the full cost method of accounting for oil and gas properties. Under this method, all costs associated with the acquisition, leasing, exploration, and development of oil and gas reserves are capitalized. Costs capitalized include acquisition costs, estimated future costs of abandonment and site restoration, geological and geophysical expenditures, lease rentals on undeveloped properties and costs of drilling and equipping productive and non-productive wells. Drilling costs include directly related overhead costs. Capitalized costs are generally categorized either as being subject to amortization or not subject to amortization. All of our costs are subject to amortization. All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. The Company evaluates oil and gas properties for impairment at least annually. Depreciation, depletion and amortization expense for the three months ended March 31, 2019, was $12,929,054, based on depletion at the rate of $14.72 per barrel of oil equivalent compared to $8,501,379 based on depletion at the rate of $16.36 per barrel of oil equivalent hese amounts include $41,154 of depreciation for the three months ended March 31, 2019, compared to $80,446 of depreciation for the three months ended March 31, 2018. |
Property, Plant and Equipment, Policy [Policy Text Block] | Equipment, vehicles and leasehold improvements – Office equipment is valued at historical cost adjusted for impairment loss less accumulated depreciation. Historical costs include all direct costs associated with the acquisition of office equipment and placing such equipment in service. Depreciation is calculated using the straight-line method based upon an estimated useful life of 5 to 7 years. |
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligation – The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final estimated retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition – In January 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”). The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09. The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance regarding ASU 2014-09 does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. See Note 2 for additional information. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Employee Compensation – The Company has outstanding stock option grants to directors, officers and employees, which are described more fully in Note 11. The Company recognizes the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the related compensation expense over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. |
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | Share-Based Compensation to Non-Employees – The Company accounts for share-based compensation issued to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement date for these issuances is the earlier of (i) the date at which a commitment for performance by the recipient to earn the equity instruments is reached or (ii) the date at which the recipient’s performance is complete. |
Income Tax, Policy [Policy Text Block] | Income Taxes – Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) The Company used the modified retrospective method to account for unrecognized excess tax benefits from prior periods. For the three months ended March 31, 2019, we recorded a decrease of $3,873,568 to our income tax provision. For the three months ended March 31, 2018, we recorded an increase of $1,158,604 to our income tax provision. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements – In February 2016 , FASB issued ASU No. 2016 - 02 , Leases (Topic 842) . For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 . . In August 2017, the FASB issued ASU 2017-12 , Derivatives and Hedging (Topic 815), In February 2018, the FASB issued Accounting Standards Update (ASU) 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income statements. Recent Accounting Pronouncements Fair Value Measurement (Topic 820); Changes to the Disclosure Requirements for Fair Value Measurement. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings (Loss) per Share – Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except for those that are anti-dilutive. The dilutive effect of stock options and other share-based compensation is calculated using the treasury method. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue. For The Three Months Ended March 31, 2019 2018 Operating revenues Oil $ 40,877,983 $ 29,140,165 Natural gas 782,139 751,226 Natural gas liquids 138,193 - Total operating revenues $ 41,798,315 $ 29,891,391 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | The Company has operating leases for our offices in Midland, Texas and Tulsa, Oklahoma with terms through January 31, 2020. The office space being leased in Tulsa is owned by Arenaco, LLC, a company that is owned by Mr. Rochford, Chairman of the Board of the Company, and Mr. McCabe, a Director of the Company. Future lease payments associated with these operating leases as of March 31, 2019 are as follows: 2019 (1) 2020 Operating lease payments $ 384,525 $ 42,725 (1) 2019 excludes the three months ended March 31, 2019. |
Lease, Cost [Table Text Block] | The following table provides supplemental information regarding cash flows from operations: 2019 Cash paid for amounts included in the measurement of lease liabilities $ 128,175 |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For The Three Months Ended March 31, 2019 2018 Net Income $ 11,089,443 $ 5,665,634 Basic Weighted-Average Shares Outstanding 63,229,710 56,415,673 Effect of dilutive securities: Stock options 590,098 1,491,095 Restricted stock 172,741 42,621 Diluted Weighted-Average Shares Outstanding 63,992,549 57,949,389 Basic Income per Share $ 0.18 $ 0.10 Diluted Income per Share $ 0.17 $ 0.10 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired: Joint interest billing receivable $ 1,464,394 Prepaid assets 2,864,554 Liabilities assumed Draw on revolving line of credit (15,000,000 ) Accounts and revenues payable (1,234,862 ) Asset retirement obligations (2,979,645 ) Acquisition payable to be settled through equity (28,356,396 ) Acquisition payable to be settled through cash payment (256,877,766 ) Total Identifiable Net Assets $ (300,119,721 ) |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma information is presented to reflect the operations of the Company as if the had been completed on January 1, 2019 and 2018, respectively: For The Three Months Ended March 31, 2019 2018 Oil and Gas Revenues $ 48,463,729 $ 42,759,403 Net Income (Loss) $ 11,379,247 $ 10,939,149 Basic Earnings (Loss) per Share $ 0.17 $ 0.18 Diluted Earnings (Loss) per Share $ 0.17 $ 0.17 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following is a table reflects the put and call prices of those contracts: Date entered into Barrels per day Put price Call price 03/12/19 1,500 $ 50.00 $ 66.00 03/13/19 500 50.00 67.40 03/20/19 500 50.00 67.90 03/20/19 1,000 50.00 68.71 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis. Fair Value Measurement Classification Quoted prices in Actives Markets for Identical Assets or (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of March 31, 2019 Oil and gas derivative contracts $ - $ (340,685 ) $ - $ (340,685 ) Total $ - $ (340,685 ) $ - $ (340,685 ) |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Changes in the asset retirement obligation were as follows: Balance, December 31, 2018 $ 13,055,797 Liabilities acquired 2,979,645 Liabilities incurred 175,173 Liabilities settled (107,770 ) Accretion expense 215,945 Balance, March 31, 2019 $ 16,318,790 |
EMPLOYEE STOCK OPTIONS AND RE_2
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the stock option activity as of March 31, 2019, and changes during the three months then ended is as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2018 2,751,000 $ 6.28 Granted - $ - Forfeited or rescinded (2,500 ) $ 11.70 Vested - $ - Outstanding, March 31, 2019 2,748,500 $ 6.28 5.3 Years $ 3,366,300 Exercisable, March 31, 2019 2,323,400 $ 5.42 4.6 Years |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | A summary of the restricted stock activity as of March 31, 2019, and changes during the three months then ended is as follows: Restricted stock Weighted- Average Grant Date Fair Value Outstanding, December 31, 2018 878,360 $ 7.36 Granted - - Forfeited or rescinded (4,400 ) 7.53 Vested - - Outstanding, March 31, 2019 873,960 $ 7.36 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | Following is a table reflecting these additional contracts: Date entered into Barrels per day Put price Call price 2019 contracts 04/01/19 1,000 $ 50.00 $ 69.50 04/03/19 1,000 50.00 70.20 2020 contracts 04/01/19 1,000 50.00 65.83 04/01/19 1,000 50.00 65.40 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation | $ 41,154 | $ 80,446 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Adjustment to Deferred Tax Asset for Change in Effective Tax Rate | $ (3,873,568) | 1,158,604 | |
Unrealized Gain (Loss) on Derivatives | (340,685) | (790,701) | |
Derivative, Loss on Derivative | $ 0 | 1,475,026 | |
Percentage Of Accounts Receivables | 96.00% | ||
Amortization expense | $ 12,929,054 | 8,501,379 | |
Depletion At The Rate Per Barrel | $ 14.72 | $ 16.36 | |
Accounting Standards Update 2016-02 [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 12 months | ||
Maximum [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Minimum [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Sales Revenue, Net [Member] | Customer One [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 51.00% | ||
Sales Revenue, Net [Member] | Customer Two [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 32.00% | ||
Accounts Receivable [Member] | Customer One [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 40.00% | ||
Accounts Receivable [Member] | Customer Two [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 26.00% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Oil | $ 40,877,983 | $ 29,140,165 |
Natural gas | 782,139 | 751,226 |
Natural Gas Liquids | 138,193 | 0 |
Total operating revenues | $ 41,798,315 | $ 29,891,391 |
LEASES (Details)
LEASES (Details) | Mar. 31, 2019USD ($) | |
Operating lease payments, 2019 | $ 384,525 | [1] |
Operating lease payments, 2020 | $ 42,725 | |
[1] | 2019 excludes the three months ended March 31, 2019. |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 128,175 | $ 0 |
LEASES (Details Textual)
LEASES (Details Textual) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Short-term Lease, Cost | $ 153,759 |
EARNINGS PER SHARE INFORMATIO_2
EARNINGS PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net Income | $ 11,089,443 | $ 5,665,634 |
Basic Weighted-Average Shares Outstanding | 63,229,710 | 56,415,673 |
Effect of dilutive securities: | ||
Diluted Weighted-Average Shares Outstanding | 63,992,549 | 57,949,389 |
Basic Income per Share | $ 0.18 | $ 0.10 |
Dilute Income per Share | $ 0.17 | $ 0.10 |
Employee Stock Option [Member] | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 590,098 | 1,491,095 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 172,741 | 42,621 |
EARNINGS PER SHARE INFORMATIO_3
EARNINGS PER SHARE INFORMATION (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 583,500 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 326,200 | |
Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 993,500 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Assets acquired | ||
Joint interest billing receivable | $ 1,464,394 | $ 0 |
Prepaid assets | 2,864,554 | 0 |
Liabilities assumed | ||
Draw on revolving line of credit | (15,000,000) | |
Accounts and revenues payable | (1,234,862) | 0 |
Asset retirement obligations | (2,979,645) | $ 0 |
Acquisition payable to be settled through equity | (28,356,396) | |
Acquisition payable to be settled through cash payment | (256,877,766) | |
Total Identifiable Net Assets | $ (300,119,721) |
ACQUISITIONS (Details 1)
ACQUISITIONS (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Oil and Gas Revenues | $ 48,463,729 | $ 42,759,403 |
Net Income (Loss) | $ 11,379,247 | $ 10,939,149 |
Basic Earnings (Loss) per Share | $ 0.17 | $ 0.18 |
Diluted Earnings (Loss) per Share | $ 0.17 | $ 0.17 |
ACQUISITIONS (Details Textual)
ACQUISITIONS (Details Textual) | Apr. 09, 2019ashares | Mar. 31, 2019USD ($)shares |
Business Acquisition [Line Items] | ||
Gas and Oil Area, Developed, Net | a | 38,230 | |
Gas and Oil Area, Developed, Gross | a | 49,754 | |
Business Combination, Acquisition Related Costs | $ | $ 3,500,000 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 4,581,001 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Revolving Line Of Credit | $ | $ 15,000,000 | |
Escrow Shares Held | shares | 2,538,071 | |
Average Working Interest [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 77.00% | |
Average Net Revenue Interest [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 58.00% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | 3 Months Ended |
Mar. 31, 2019a$ / BarrelofOilEquivalent | |
Commodity Contract [Member] | |
Date entered into | Mar. 12, 2019 |
Barrels per day | a | 1,500 |
Commodity Contract [Member] | Put Option [Member] | |
Put price | 50 |
Commodity Contract [Member] | Call Option [Member] | |
Call price | 66 |
Commodity Contract A [Member] | |
Date entered into | Mar. 13, 2019 |
Barrels per day | a | 500 |
Commodity Contract A [Member] | Put Option [Member] | |
Put price | 50 |
Commodity Contract A [Member] | Call Option [Member] | |
Call price | 67.40 |
Commodity Contract B [Member] | |
Date entered into | Mar. 20, 2019 |
Barrels per day | a | 500 |
Commodity Contract B [Member] | Put Option [Member] | |
Put price | 50 |
Commodity Contract B [Member] | Call Option [Member] | |
Call price | 67.90 |
Commodity Contract C [Member] | |
Date entered into | Mar. 20, 2019 |
Barrels per day | a | 1,000 |
Commodity Contract C [Member] | Put Option [Member] | |
Put price | 50 |
Commodity Contract C [Member] | Call Option [Member] | |
Call price | 68.71 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textual) | Dec. 31, 2020bbl | Dec. 31, 2019bbl | Mar. 31, 2019bbl | Dec. 31, 2018$ / BarrelofOilEquivalent | Oct. 27, 2017bbl | Sep. 25, 2017bbl |
Number Of Barrels Per Day | bbl | 3,500 | 1,000 | ||||
Addititional Derivative Contracts [Member] | ||||||
Number Of Barrels Per Day | bbl | 1,000 | |||||
Addititional Derivative Contracts [Member] | Scenario, Forecast [Member] | ||||||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | 2,000 | ||||
Call Option [Member] | ||||||
Derivative, Price Risk Option Strike Price | 54.60 | |||||
Call Option [Member] | Addititional Derivative Contracts [Member] | ||||||
Derivative, Price Risk Option Strike Price | 54.80 | |||||
Put Option [Member] | ||||||
Derivative, Price Risk Option Strike Price | 49 | |||||
Put Option [Member] | Addititional Derivative Contracts [Member] | ||||||
Derivative, Price Risk Option Strike Price | 51 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] | Mar. 31, 2019USD ($) |
Oil and gas derivative contracts | $ (340,685) |
Total | (340,685) |
Fair Value, Inputs, Level 1 [Member] | |
Oil and gas derivative contracts | 0 |
Total | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Oil and gas derivative contracts | (340,685) |
Total | (340,685) |
Fair Value, Inputs, Level 3 [Member] | |
Oil and gas derivative contracts | 0 |
Total | $ 0 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Details Textual) - USD ($) | Apr. 09, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 01, 2018 | Jul. 01, 2014 |
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Interest Rate Description | The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the federal funds rate plus 0.5% per annum or the (iii) adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum, plus (b) a margin between 2.75% and 3.75% (depending on the then-current level of borrowing base usage). | ||||
Leverage Ratio, Total | 4.0 to 1.0 | ||||
Minimum Leverage Ratio Current | 1.0 to 1.0 | ||||
Debt Instrument, Redemption, Description | The Borrowing Base will be redetermined semi-annually on each May 1 and November 1 | ||||
Long-term Line of Credit | $ 84,500,000 | $ 39,500,000 | |||
Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | ||||
Line of Credit Facility, Expiration Date | Jun. 26, 2020 | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Expiration Period | 5 years | ||||
Revolving Credit Facility [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425,000,000 | ||||
Revolving Credit Facility [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Asset Retirement Obligation [Line Items] | ||
Balance | $ 13,055,797 | |
Liabilities acquired | 2,979,645 | |
Liabilities incurred | 175,173 | |
Liabilities settled | (107,770) | |
Accretion expense | 215,945 | $ 161,120 |
Balance | $ 16,318,790 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Class of Stock [Line Items] | |||
Proceeds from issuance of common stock | $ 0 | $ 81,822,066 | |
Underwritten Public Offering [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 6,164,000 | ||
Share Price | $ 14 | ||
Proceeds from issuance of common stock | $ 81,819,073 | ||
Payments of Stock Issuance Costs | 4,476,927 | ||
Proceeds From Issuance Of Common Stock Gross | $ 86,296,000 | ||
Over-Allotment Option [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 804,000 |
EMPLOYEE STOCK OPTIONS AND RE_3
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details) - Equity Option [Member] | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding at beginning of the year | shares | 2,751,000 |
Options,Granted | shares | 0 |
Forfeited or rescinded | shares | (2,500) |
Options,Vested | shares | 0 |
Options Outstanding at end of year | shares | 2,748,500 |
Options Exercisable at end of year | shares | 2,323,400 |
Weighted Average Exercise Price, Outstanding at beginning of the year | $ / shares | $ 6.28 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Forfeited or rescinded | $ / shares | 11.70 |
Weighted Average Exercise Price, Vested | $ / shares | 0 |
Weighted Average Exercise Price, Outstanding at end of year | $ / shares | 6.28 |
Weighted Average Exercise Price, Exercisable at end of year | $ / shares | $ 5.42 |
Weighted Average Remaining contractual Term Outstanding at end of year | 5 years 3 months 18 days |
Weighted Average Remaining contractual Term Exercisable | 4 years 7 months 6 days |
Aggregate Intrinsic Value | $ | $ 3,366,300 |
EMPLOYEE STOCK OPTIONS AND RE_4
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 1) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock, Outstanding at beginning of the year | shares | 878,360 |
Restricted stock, Granted | shares | 0 |
Restricted stock, Forfeited or rescinded | shares | (4,400) |
Restricted stock, Vested | shares | 0 |
Restricted stock, Outstanding at end of year | shares | 873,960 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ / shares | $ 7.36 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited or rescinded | $ / shares | 7.53 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ / shares | $ 7.36 |
EMPLOYEE STOCK OPTIONS AND RE_5
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 684,020 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 5.87 | |||
Compensation Expenses Charged Against Income For Share Based Awards Included In General And Administrative Expenses | $ 834,465 | $ 1,081,199 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 5,000,000 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 1,501,300 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2,547,688 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 18 days |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details Textual) | Mar. 31, 2019USD ($) |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Mar. 31, 2019bbl$ / BarrelofOilEquivalent | Dec. 31, 2018$ / BarrelofOilEquivalent | Sep. 25, 2017bbl |
Number of Barrels Per Day | bbl | 3,500 | 1,000 | |
Period One [Member] | |||
Number of Barrels Per Day | bbl | 1,000 | ||
Period Two [Member] | |||
Number of Barrels Per Day | bbl | 1,000 | ||
Period Three [Member] | |||
Number of Barrels Per Day | bbl | 1,000 | ||
Period Four [Member] | |||
Number of Barrels Per Day | bbl | 1,000 | ||
Put price [Member] | |||
Derivative, Price Risk Option Strike Price | 49 | ||
Put price [Member] | Period One [Member] | |||
Derivative, Price Risk Option Strike Price | 50 | ||
Put price [Member] | Period Two [Member] | |||
Derivative, Price Risk Option Strike Price | 50 | ||
Put price [Member] | Period Three [Member] | |||
Derivative, Price Risk Option Strike Price | 50 | ||
Put price [Member] | Period Four [Member] | |||
Derivative, Price Risk Option Strike Price | 50 | ||
Call price [Member] | |||
Derivative, Price Risk Option Strike Price | 54.60 | ||
Call price [Member] | Period One [Member] | |||
Derivative, Price Risk Option Strike Price | 69.50 | ||
Call price [Member] | Period Two [Member] | |||
Derivative, Price Risk Option Strike Price | 70.20 | ||
Call price [Member] | Period Three [Member] | |||
Derivative, Price Risk Option Strike Price | 65.83 | ||
Call price [Member] | Period Four [Member] | |||
Derivative, Price Risk Option Strike Price | 65.40 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Apr. 09, 2019USD ($)shares | Dec. 31, 2020bbl | Dec. 31, 2019bbl | Dec. 31, 2018USD ($) | Jun. 01, 2018USD ($) | Jul. 01, 2014USD ($) |
Subsequent Event [Line Items] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 4,581,001 | |||||
Scenario, Forecast [Member] | Addititional Derivative Contracts [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | 2,000 | ||||
Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | |||||
Minimum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | |||||
Revolving Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | |||||
Subsequent Event [Member] | Wishbone Acquisition [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 249,062,999 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 4,581,001 | |||||
Common Stock Held in Escrow | shares | 2,538,071 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Expiration Period | 5 years | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425,000,000 |