Energy Resources 12 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 13, 2021
Document Information Line Items
Entity Registrant Name	Energy Resources 12, L.P.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		11,031,579
Amendment Flag	false
Entity Central Index Key	0001696088
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-55916
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-4805237
Entity Address, Address Line One	120 W 3rd Street, Suite 220
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	817
Local Phone Number	882-9192
Title of 12(b) Security	None
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 3,349,426	$ 3,076,840
Accounts receivable and other current assets	6,472,586	5,629,026
Total Current Assets	9,822,012	8,705,866
Oil and natural gas properties, successful efforts method, net of accumulated depreciation, depletion and amortization of $39,799,987 and $36,136,401, respectively	190,548,784	192,170,057
Total Assets	200,370,796	200,875,923
Liabilities
Accounts payable and accrued expenses	4,246,472	3,658,846
Derivative liability	725,303	594,632
Total Current Liabilities	4,971,775	4,253,478
Asset retirement obligations	653,356	624,089
Total Liabilities	5,625,131	4,877,567
Partners’ Equity
Limited partners' interest (11,031,579 common units issued and outstanding, respectively)	194,745,880	195,998,571
General partner's interest	(215)	(215)
Total Partners’ Equity	194,745,665	195,998,356
Total Liabilities and Partners’ Equity	$ 200,370,796	$ 200,875,923

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Oil and natural gas properties, successful efforts method, accumulated depreciation, depletion and amortization (in Dollars)	$ 39,799,987	$ 36,136,401
Limited partners' interest, common units issued	11,031,579	11,031,579
Limited partners' interest, common units outstanding	11,031,579	11,031,579

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Oil	$ 11,026,810	$ 11,087,656
Natural gas	1,399,505	499,114
Natural gas liquids	1,238,233	346,126
Total revenue	13,664,548	11,932,896
Operating costs and expenses
Production expenses	4,454,040	4,899,265
Production taxes	1,028,206	1,040,346
General and administrative expenses	746,979	805,508
Depreciation, depletion, amortization and accretion	3,669,857	4,498,722
Total operating costs and expenses	9,899,082	11,243,841
Operating income	3,765,466	689,055
Interest income (expense), net	(709)	19,172
Gain (loss) on derivatives	(1,166,974)	1,506,088
Total other income (expense), net	(1,167,683)	1,525,260
Net income	$ 2,597,783	$ 2,214,315
Basic and diluted net income per common unit (in Dollars per share)	$ 0.24	$ 0.20
Weighted average common units outstanding - basic and diluted (in Shares)	11,031,579	11,031,579

Consolidated Statements of Part

Consolidated Statements of Partners' Equity - USD ($)	Total	Limited Partner [Member]	General Partner [Member]
Balance at Dec. 31, 2019	$ 210,688,959	$ 210,689,174	$ (215)
Balance (in Shares) at Dec. 31, 2019		11,031,579
Distributions declared and paid to common units	(3,850,473)	$ (3,850,473)
Net income	2,214,315	2,214,315
Balance at Mar. 31, 2020	209,052,801	$ 209,053,016	(215)
Balance (in Shares) at Mar. 31, 2020		11,031,579
Balance at Dec. 31, 2020	$ 195,998,356	$ 195,998,571	(215)
Balance (in Shares) at Dec. 31, 2020	11,031,579	11,031,579
Distributions declared and paid to common units	$ (3,850,474)	$ (3,850,474)
Net income	2,597,783	2,597,783
Balance at Mar. 31, 2021	$ 194,745,665	$ 194,745,880	$ (215)
Balance (in Shares) at Mar. 31, 2021	11,031,579	11,031,579

Consolidated Statements of Pa_2

Consolidated Statements of Partners' Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
General Partner [Member]
Distributions declared and paid per unit	$ 0.349041	$ 0.349041

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flow from operating activities:
Net income	$ 2,597,783	$ 2,214,315
Adjustments to reconcile net income to cash from operating activities:
Depreciation, depletion, amortization and accretion	3,669,857	4,498,722
(Gain) loss on mark-to-market of derivatives	130,671	(1,244,098)
Other non-cash expenses, net		0
Changes in operating assets and liabilities:
Accounts receivable and other current assets	(843,560)	4,173,011
Accounts payable and accrued expenses	662,443	(391,133)
Net cash flow provided by operating activities	6,217,194	9,250,817
Cash flow from investing activities:
Cash paid for acquisition of oil and natural gas properties	0	(110,073)
Additions to oil and natural gas properties	(2,094,134)	(5,077,510)
Net cash flow used in investing activities	(2,094,134)	(5,187,583)
Cash flow from financing activities:
Distributions paid to limited partners	(3,850,474)	(3,850,473)
Net cash flow used in financing activities	(3,850,474)	(3,850,473)
Increase in cash and cash equivalents	272,586	212,761
Cash and cash equivalents, beginning of period	3,076,840	14,834,452
Cash and cash equivalents, end of period	3,349,426	15,047,213
Supplemental non-cash information:
Accrued capital expenditures related to additions to oil and natural gas properties	$ 2,021,030	$ 2,997,080

Partnership Organization

Partnership Organization	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Partnership Organization Energy Resources 12, L.P. (together with its wholly-owned subsidiary, the “Partnership”) is a Delaware limited partnership formed to acquire producing and non-producing oil and natural gas properties onshore in the United States and to develop those properties. The initial capitalization of the Partnership of $1,000 occurred on December 30, 2016. The Partnership completed its best-efforts offering in October 2019 with a total of approximately 11.0 million common units sold for gross proceeds of $218.0 million and proceeds net of offering costs of $204.3 million. As of March 31, 2021, the Partnership owned an approximate 5.8% non-operated working interest in 372 producing wells, predominantly in McKenzie, Dunn, McLean and Mountrail counties of North Dakota (collectively, the “Bakken Assets”). The Partnership also owns an estimated approximate 2.2% non-operated working interest in 28 wells in various stages of the drilling and completion process, and possible future development locations in the Bakken Assets. The Bakken Assets, which are a part of the Bakken shale formation in the Greater Williston Basin, are operated by 14 third-party operators on behalf of the Partnership and other working interest owners. The general partner of the Partnership is Energy Resources 12 GP, LLC (the “General Partner”). The General Partner manages and controls the business affairs of the Partnership. The Partnership’s fiscal year ends on December 31. COVID-19, Demand, Pricing and Production The outbreak of a novel coronavirus (“COVID-19”) in China in December 2019 significantly impacted the global economy throughout 2020, and the domestic oil and gas industry was especially impacted as demand for oil, natural gas and other hydrocarbons substantially declined in March and April 2020 and remained depressed through the third quarter of 2020. Demand for oil and natural gas began to return in the fourth quarter of 2020 and first quarter of 2021 as government-mandated COVID-19 restrictions have eased. In addition, oil prices increased to over $60 per barrel throughout March 2021, marking an over 50% increase over the average price per barrel in 2020. Increased demand and higher commodity prices have improved the outlook for the domestic oil and natural gas industry in 2021, but significant uncertainty remains as to when domestic operators, including those who operate the Bakken Assets on behalf of the Partnership, will fully resume drilling programs, which the Partnership anticipates will have a positive impact to its revenues and operating results.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Partnership’s audited December 31, 2020 financial statements included in its 2020 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2021. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximates their carrying value. Cash balances may at times exceed federal depository insurance limits. Use of Estimates The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition The Partnership is bound by a joint operating agreement with the operator of each of its producing wells. Under the joint operating agreement, the Partnership’s proportionate share of production is marketed at the discretion of the operators. The Partnership typically satisfies its performance obligations upon transfer of control of its products and records the related revenue in the month production is delivered to the purchaser. As the Partnership does not operate its properties, it receives actual oil, natural gas, and NGL sales volumes and prices, net of costs incurred by the operators, two to three months after the date production is delivered by the operator. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from the Partnership’s operators are accrued in Accounts Receivable and other current assets in the consolidated balance sheets. Variances between the Partnership’s estimated revenue and actual payments are recorded in the month the payment is received; differences have been and are insignificant. As a result, the variable consideration is not constrained. The Partnership has elected to utilize the practical expedient in ASC 606 that states the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Each delivery of product represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of oil, natural gas and natural gas liquids and prevailing supply and demand conditions, so that prices fluctuate to remain competitive with other available suppliers. Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, partners’ equity or cash flows. Net Income Per Common Unit Basic net income per common unit is computed as net income divided by the weighted average number of common units outstanding during the period. Diluted net income per common unit is calculated after giving effect to all potential common units that were dilutive and outstanding for the period. There were no common units with a dilutive effect for the three months ended March 31, 2021 and 2020. As a result, basic and diluted outstanding common units were the same. The Incentive Distribution Rights, as defined below, are not included in net income per common unit until such time that it is probable Payout (as discussed in Note 7) will occur.

Oil and Gas Investments

Oil and Gas Investments	3 Months Ended
	Mar. 31, 2021
Oil and Gas Property [Abstract]
Oil and Gas Properties [Text Block]	Note 3. Oil and Gas Investments On February 1, 2018, the Partnership completed its first purchase (“Acquisition No. 1”) in the Bakken Assets for approximately $90.5 million, including all closing costs and assumed liabilities. On August 31, 2018, the Partnership completed its second purchase of an additional non-operated working interest in the Bakken Assets for approximately $81.3 million, including all closing costs and assumed liabilities. As of March 31, 2021, the Partnership’s ownership of the Bakken Assets consisted of an approximate 5.8% non-operated working interest in 372 producing wells, and an estimated approximate 2.2% non-operated working interest in 28 wells in various stages of the drilling and completion process. From September 1, 2017, the effective date of Acquisition No. 1, to March 31, 2021, the Partnership has participated in the drilling of 195 wells, of which 167 have been completed and 28 wells are in various stages of completion at March 31, 2021. The Partnership incurred approximately $2.0 million and $2.2 million, respectively, in capital drilling and completion costs for the three months ended March 31, 2021 and 2020. The Partnership anticipates approximately $2 to $4 million of capital expenditures will be incurred during 2021 to complete the 28 wells in process at March 31, 2021. However, estimated capital expenditures to complete these 28 wells could be significantly different from amounts actually invested, and the timing of these expenditures is difficult to estimate.

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation Disclosure [Text Block]	Note 4. Asset Retirement Obligations The Partnership records an asset retirement obligation (“ARO”) and capitalizes the asset retirement costs in oil and natural gas properties in the period in which the asset retirement obligation is incurred based upon the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon wells. After recording these amounts, the ARO is accreted to its future estimated value using an assumed cost of funds and the additional capitalized costs are depreciated on a unit-of-production basis. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions of these assumptions impact the present value of the existing asset retirement obligation, a corresponding adjustment is made to the oil and natural gas property balance. The changes in the aggregate ARO are as follows: 2021 2020 Balance at January 1 $ 624,089 $ 570,795 Well additions 22,995 5,618 Accretion 6,272 5,576 Revisions - - Balance at March 31 $ 653,356 $ 581,989

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Note 5. Fair Value of Financial Instruments The Partnership follows authoritative guidance related to fair value measurement and disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement using market participant assumptions at the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: ● Level 1: Quoted prices in active markets for identical assets ● Level 2: Significant other observable inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, either directly or indirectly, for substantially the full term of the financial instrument ● Level 3: Significant unobservable inputs The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and the consideration of factors specific to the asset or liability. The Partnership’s policy is to recognize transfers in or out of a fair value hierarchy as of the end of the reporting period for which the event or change in circumstances caused the transfer. The Partnership has consistently applied the valuation techniques discussed above for all periods presented. During the three months ended March 31, 2021 and for the year ended December 31, 2020, there were no transfers in or out of Level 1, Level 2, or Level 3 assets and liabilities measured on a recurring basis. As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the Partnership’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. Three Months Ended March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Commodity derivatives - current liabilities $ - $ (725,303 ) $ - Total $ - $ (725,303 ) $ - Year Ended December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Commodity derivatives - current liabilities $ - $ (594,632 ) $ - Total $ - $ (594,632 ) $ - The Level 2 instruments presented in the table above consist of Partnership’s costless collar commodity derivative instruments. The fair value of the Partnership’s derivative financial instruments is determined based upon future prices, volatility and time to maturity, among other things. Counterparty statements are utilized to determine the value of the commodity derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs. The fair value of the commodity derivatives noted above are included in the Partnership’s consolidated balance sheets as Derivative liability at March 31, 2021 and December 31, 2020. See additional detail in Note 6. Risk Management. Fair Value of Other Financial Instruments The carrying value of the Partnership’s cash and cash equivalents, accounts receivable and other current assets, accounts payable and accrued expenses reflect these items’ cost, which approximates fair value based on the timing of the anticipated cash flows, current market conditions and short-term maturity of these instruments.

Risk Management

Risk Management	3 Months Ended
	Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 6. Risk Management Participation in the oil and gas industry exposes the Partnership to risks associated with potentially volatile changes in energy commodity prices, and the Partnership’s future earnings are subject to these risks. Therefore, the Partnership periodically enters into derivative contracts to manage the commodity price risk on a portion of the Partnership’s anticipated future oil and gas production it will produce and sell and to reduce the effect of volatility in commodity price changes to provide a base level of cash flow from operations. As of March 31, 2021 and December 31, 2020, the Partnership’s derivatives were in a loss position; therefore current liabilities of $0.7 million and $0.6 million, respectively, which approximate fair value, were recognized as Derivative liability on the Partnership’s consolidated balance sheets. The Partnership determined the estimated fair value of derivative instruments using a market approach based on several factors, including quoted market prices in active markets and quotes from third parties, among other things. The Partnership also performed an internal valuation to ensure the reasonableness of third-party quotes. In consideration of counterparty credit risk, the Partnership assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually-required payments. Additionally, the Partnership considered that the counterparty is of substantial credit quality and had the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. See additional discussion above in Note 5. Fair Value of Financial Instruments. The Partnership has not designated its derivative instruments as hedges for accounting purposes and has not entered into such instruments for speculative trading purposes. As a result, when derivatives do not qualify or are not designated as a hedge, the changes in the fair value are recognized on the Partnership’s consolidated statements of operations as a gain or loss on derivative instruments. The following table presents settlements of matured derivative instruments and non-cash losses on open derivative instruments for the periods presented. Settlements on matured derivatives below reflect a realized gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price. The mark-to-market (non-cash) losses below represent the change in fair value of derivative instruments which were held at period-end. Three Months Ended Three Months Ended Settlement gain (loss) on matured derivatives $ (1,036,303 ) $ 261,990 Gain (loss) on mark-to-market of derivatives (130,671 ) 1,244,098 Gain (loss) on derivatives $ (1,166,974 ) $ 1,506,088 The Partnership generally uses costless collar derivative contracts, which establish floor and ceiling prices on future anticipated production. The Partnership did not pay or receive a premium related to the costless collars, and the contracts are settled monthly. The following table reflects the open costless collar derivative instruments as of March 31, 2021. Settlement Period Basis Oil Volume (bbls) Floor / Ceiling Prices ($) Fair Value of Liability at March 31, 2021 04/01/21 - 05/31/21 NYMEX 26,170 38.00 / 44.85 $ (377,168 ) 04/01/21 - 05/31/21 NYMEX 26,170 37.50 / 46.00 (348,135 ) $ (725,303 ) The Partnership’s outstanding derivative instruments are covered by International Swap Dealers Association Master Agreements (“ISDA”) entered into with the counterparty. The ISDA may provide that as a result of certain circumstances, such as cross-defaults, a counterparty may require all outstanding derivative instruments under an ISDA to be settled immediately. The Partnership has netting arrangements with its counterparties that provide for offsetting payables against receivables from separate derivative instruments. The use of derivative instruments involves the risk that the Partnership’s counterparty will be unable to meet the financial terms of such instruments.

Capital Contribution and Partne

Capital Contribution and Partners' Equity	3 Months Ended
	Mar. 31, 2021
Partners' Capital Notes [Abstract]
Partners' Capital Notes Disclosure [Text Block]	Note 7. Capital Contribution and Partners Equity At inception, the General Partner and organizational limited partner made initial capital contributions totaling $1,000 to the Partnership. Upon closing of the minimum offering, the organizational limited partner withdrew its initial capital contribution of $990, the General Partner received Incentive Distribution Rights (defined below), and has been reimbursed for its documented third-party out-of-pocket expenses incurred in organizing the Partnership and offering the common units. The Partnership completed its best-efforts offering of common units as of the close of business on October 24, 2019. As of the conclusion of the offering, the Partnership had completed the sale of approximately 11.0 million common units for total gross proceeds of $218.0 million and proceeds net of offering costs of $204.3 million. Under the agreement with David Lerner Associates, Inc. (the “Managing Dealer”), the Managing Dealer received a total of 6% in selling commissions and a marketing expense allowance based on gross proceeds of the common units sold. The Managing Dealer also has Dealer Manager Incentive Fees (defined below) where the Managing Dealer could receive distributions up to an additional 4% of gross proceeds of the common units sold in the Partnership’s best-efforts offering as outlined in the prospectus based on the performance of the Partnership. Based on the common units sold in the best-efforts offering, the Dealer Manager Incentive Fees are approximately $8.7 million, subject to Payout (defined below). Prior to “Payout,” which is defined below, all of the distributions made by the Partnership, if any, will be paid to the holders of common units. Accordingly, the Partnership will not make any distributions with respect to the Incentive Distribution Rights or the Dealer Manager Incentive Fees to the Managing Dealer until Payout occurs. The Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) provides that “Payout”, which is defined below, occurs on the day when the aggregate amount distributed with respect to each of the common units equals $20.00 plus the Payout Accrual. The Partnership Agreement defines “Payout Accrual” as 7% per annum simple interest accrued monthly until paid on the Net Investment Amount outstanding from time to time. The Partnership Agreement defines Net Investment Amount initially as $20.00 per common unit, regardless of the amount paid for the common unit. If at any time the Partnership distributes to holders of common units more than the Payout Accrual, the amount the Partnership distributes in excess of the Payout Accrual will reduce the Net Investment Amount. All distributions made by the Partnership after Payout, which may include all or a portion of the proceeds of the sale of all or substantially all of the Partnership’s assets, will be made as follows: ● First, (i) to the Record Holders of the Incentive Distribution Rights, 30%; (ii) to the Managing Dealer, the “Dealer Manager Incentive Fees”, 30%, until such time as the Managing Dealer receives 4% of the gross proceeds of the common units sold; and (iii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest. ● Thereafter, (i) to the Record Holders of the Incentive Distribution Rights, 60%; and (ii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest. All items of income, gain, loss and deduction will be allocated to each Partner’s capital account in a manner generally consistent with the distribution procedures outlined above. For the three months ended March 31, 2021 and 2020, the Partnership paid distributions of $0.349041 per common unit, or $3.9 million, in both periods.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 8. Related Parties The Class A voting members of the General Partner are affiliates of Glade M. Knight, Chairman and Chief Executive Officer and David S. McKenney, Chief Financial Officer. Messrs. Knight and McKenney are also the Chief Executive Officer and Chief Financial Officer of Energy 11 GP, LLC, the general partner of Energy 11, L.P. (“Energy 11”), a limited partnership that also invests in producing and non-producing oil and gas properties on-shore in the United States. The Class B non-voting members of the General Partner are affiliates of Anthony F. Keating, III and Michael J. Mallick, the Co-Chief Operating Officers of Energy 11’s general partner. The Partnership has, and is expected to continue to engage in, significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Partnership’s operations may be different than if conducted with non-related parties. The General Partner’s Board of Directors oversees and reviews the Partnership’s related party relationships and is required to approve any significant modifications to any existing related party transactions, as well as any new significant related party transactions. The Partnership will reimburse the General Partner for any costs incurred by the General Partner for certain expenses, which include costs for organizing the Partnership, costs incurred in the offering of the common units and general and administrative costs. The Partnership also agreed to pay the General Partner an advisory fee to manage the day-to-day affairs of the Partnership, including serving as an investment advisor and consultant in connection with the acquisition, development, operation and disposition of oil and gas properties and other assets of the Partnership. In accordance with the Partnership Agreement, subsequent to the Partnership’s first asset purchase, which occurred on February 1, 2018, the Partnership is required to pay quarterly an annual fee of 0.5% of the total gross equity proceeds raised by the Partnership in its best-efforts offering. The management fee that has been paid to the General Partner for the three months ended March 31, 2021 and 2020 was approximately $273,000 in both periods and is included in General and administrative expenses on the consolidated statements of operations. The Partnership also will reimburse the General Partner for certain general and administrative costs. For the three months ended March 31, 2021 and 2020, approximately $32,000 and $92,000 of general and administrative costs were incurred by a member of the General Partner and have been or will be reimbursed by the Partnership. At March 31, 2021, approximately $32,000 was due to a member of the General Partner and is included in Accounts payable and accrued expenses in the consolidated balance sheets. On January 31, 2018, the Partnership entered into a cost sharing agreement with Energy 11 that gave the Partnership access to Energy 11’s personnel and administrative resources, including accounting, asset management and other day-to-day management support. The cost sharing agreement reduced these accounting and asset management costs to the Partnership, as these shared day-to-day costs were split evenly between the two partnerships. The shared costs were based on actual costs incurred with no mark-up or profit to the Partnership. Any other direct third-party costs were paid by the party receiving the services. For the three months ended March 31, 2020, approximately $76,000 of expenses subject to the cost sharing agreement were incurred by the Partnership and have been reimbursed to Energy 11. In October 2020, the cost sharing agreement was terminated by the Partnership, effective December 31, 2020. On December 1, 2020, the Partnership entered into an Administrative Services Agreement (the “ASA”) with Regional Energy Investors, L.P. d/b/a Regional Energy Management (the “Administrator”) and Energy 11, whereby the Administrator will provide administrative, operating and professional services necessary and useful to the Partnership. The Administrator will also assist the General Partner with the day-to-day operations of the Partnership. The ASA became effective January 1, 2021, and the Initial Term of the ASA will extend until the earlier of (a) five years or (b) when the Partnership and/or Energy 11 ceases to own its respective oil and natural gas assets. Provided the ASA is not terminated by any party via 60-day written notice at the conclusion of the Initial Term, the ASA will be automatically renewed for additional one-year periods. If a party to the ASA materially breaches the terms and conditions of the ASA and the breach has not been cured with 30 days of written notification of said breach, the ASA may be terminated with immediate effect. Costs and expenses attributable to the services performed by the Administrator under the ASA will be reimbursed by the Partnership. All Administrator costs and expenses will be accumulated (based on actual costs incurred with no mark-up or profit to the Administrator) and approved by the Partnership prior to reimbursement. Costs and expenses to be reimbursed under the ASA may include, but are not limited to, employee wages and benefits – including those of the president of Energy 11’s general partner (of which the General Partner agreed to pay as the president is an employee of the Administrator), rent for office space and network and information technology support. Other expenses, such as business travel costs and accounting, legal or banking services, may not be incurred by the Administrator on behalf of the Partnership without prior express written consent of the Partnership. For the three months ended March 31, 2021, approximately $140,000 of costs and expenses subject to the ASA were reimbursed by the Partnership to the Administrator. Under the ASA, the General Partner agreed to pay one-half of its annual management fee to the Administrator in exchange for the services to be provided under the ASA. Therefore, one-half of the management fee of approximately $273,000 described above for the first quarter of 2021 was paid by the General Partner to the Administrator. The Administrator is owned by entities that are controlled by Messrs. Keating and Mallick.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 9. Subsequent Events In April 2021, the Partnership declared and paid $1.5 million, or $0.134247 per outstanding common unit, in distributions to its holders of common units.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Partnership’s audited December 31, 2020 financial statements included in its 2020 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2021.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximates their carrying value. Cash balances may at times exceed federal depository insurance limits.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue [Policy Text Block]	Revenue Recognition The Partnership is bound by a joint operating agreement with the operator of each of its producing wells. Under the joint operating agreement, the Partnership’s proportionate share of production is marketed at the discretion of the operators. The Partnership typically satisfies its performance obligations upon transfer of control of its products and records the related revenue in the month production is delivered to the purchaser. As the Partnership does not operate its properties, it receives actual oil, natural gas, and NGL sales volumes and prices, net of costs incurred by the operators, two to three months after the date production is delivered by the operator. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from the Partnership’s operators are accrued in Accounts Receivable and other current assets in the consolidated balance sheets. Variances between the Partnership’s estimated revenue and actual payments are recorded in the month the payment is received; differences have been and are insignificant. As a result, the variable consideration is not constrained. The Partnership has elected to utilize the practical expedient in ASC 606 that states the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Each delivery of product represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of oil, natural gas and natural gas liquids and prevailing supply and demand conditions, so that prices fluctuate to remain competitive with other available suppliers.
Reclassification, Comparability Adjustment [Policy Text Block]	Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, partners’ equity or cash flows.
Earnings Per Share, Policy [Policy Text Block]	Net Income Per Common Unit Basic net income per common unit is computed as net income divided by the weighted average number of common units outstanding during the period. Diluted net income per common unit is calculated after giving effect to all potential common units that were dilutive and outstanding for the period. There were no common units with a dilutive effect for the three months ended March 31, 2021 and 2020. As a result, basic and diluted outstanding common units were the same. The Incentive Distribution Rights, as defined below, are not included in net income per common unit until such time that it is probable Payout (as discussed in Note 7) will occur.

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligations [Table Text Block]	The Partnership records an asset retirement obligation (“ARO”) and capitalizes the asset retirement costs in oil and natural gas properties in the period in which the asset retirement obligation is incurred based upon the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon wells. After recording these amounts, the ARO is accreted to its future estimated value using an assumed cost of funds and the additional capitalized costs are depreciated on a unit-of-production basis. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions of these assumptions impact the present value of the existing asset retirement obligation, a corresponding adjustment is made to the oil and natural gas property balance. The changes in the aggregate ARO are as follows: 2021 2020 Balance at January 1 $ 624,089 $ 570,795 Well additions 22,995 5,618 Accretion 6,272 5,576 Revisions - - Balance at March 31 $ 653,356 $ 581,989

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the Partnership’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. Three Months Ended March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Commodity derivatives - current liabilities $ - $ (725,303 ) $ - Total $ - $ (725,303 ) $ - Year Ended December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Commodity derivatives - current liabilities $ - $ (594,632 ) $ - Total $ - $ (594,632 ) $ -

Risk Management (Tables)

Risk Management (Tables)	3 Months Ended
	Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments, Gain (Loss) [Table Text Block]	The Partnership has not designated its derivative instruments as hedges for accounting purposes and has not entered into such instruments for speculative trading purposes. As a result, when derivatives do not qualify or are not designated as a hedge, the changes in the fair value are recognized on the Partnership’s consolidated statements of operations as a gain or loss on derivative instruments. The following table presents settlements of matured derivative instruments and non-cash losses on open derivative instruments for the periods presented. Settlements on matured derivatives below reflect a realized gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price. The mark-to-market (non-cash) losses below represent the change in fair value of derivative instruments which were held at period-end. Three Months Ended Three Months Ended Settlement gain (loss) on matured derivatives $ (1,036,303 ) $ 261,990 Gain (loss) on mark-to-market of derivatives (130,671 ) 1,244,098 Gain (loss) on derivatives $ (1,166,974 ) $ 1,506,088
Schedule of Derivative Instruments [Table Text Block]	The Partnership generally uses costless collar derivative contracts, which establish floor and ceiling prices on future anticipated production. The Partnership did not pay or receive a premium related to the costless collars, and the contracts are settled monthly. The following table reflects the open costless collar derivative instruments as of March 31, 2021. Settlement Period Basis Oil Volume (bbls) Floor / Ceiling Prices ($) Fair Value of Liability at March 31, 2021 04/01/21 - 05/31/21 NYMEX 26,170 38.00 / 44.85 $ (377,168 ) 04/01/21 - 05/31/21 NYMEX 26,170 37.50 / 46.00 (348,135 ) $ (725,303 )

Partnership Organization (Detai

Partnership Organization (Details) shares in Millions	Dec. 30, 2016USD ($)	Mar. 31, 2021	Oct. 24, 2019USD ($)shares
Partnership Organization (Details) [Line Items]
Limited Liability Company or Limited Partnership, Business, Formation State	Delaware
Partners' Capital Account, Contributions (in Dollars)	$ 1,000
Bakken Assets [Member]
Partnership Organization (Details) [Line Items]
Number of Operators		14
Bakken Assets [Member] | Non-operated Completed Wells [Member]
Partnership Organization (Details) [Line Items]
Gas and Oil Area Developed, Net		5.80%
Oil, Productive Well, Number of Wells, Net		372
Bakken Assets [Member] | Non-operated Wells in the Process of Drilling [Member]
Partnership Organization (Details) [Line Items]
Gas and Oil Area Developed, Net		2.20%
Oil and Gas, Present Activity, Well in Process of Drilling		28
Best-Efforts Offering [Member]
Partnership Organization (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares) | shares			11
Proceeds from Issuance of Common Limited Partners Units (in Dollars)			$ 218,000,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units (in Dollars)			$ 204,300,000

Oil and Gas Investments (Detail

Oil and Gas Investments (Details) - Bakken Assets [Member] $ in Millions	Aug. 31, 2018USD ($)	Feb. 01, 2018USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2021
Non-operated Completed Wells [Member]
Oil and Gas Investments (Details) [Line Items]
Gas and Oil Area Developed, Net			5.80%
Oil, Productive Well, Number of Wells, Net			372		372
Non-operated Wells in the Process of Drilling [Member]
Oil and Gas Investments (Details) [Line Items]
Gas and Oil Area Developed, Net			2.20%
Oil, Productive Well, Number of Wells, Net			28		28
Acquisition No. 1 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred (in Dollars)		$ 90.5
Wells Drilled					195
Oil and Gas, Development Well Drilled, Net Productive, Number					167
Oil and Gas, Present Activity, Well in Process of Drilling			28		28
Costs Incurred, Development Costs (in Dollars)			$ 2	$ 2.2
Acquisition No. 1 [Member] | Minimum [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells (in Dollars)				2
Acquisition No. 1 [Member] | Maximum [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells (in Dollars)				$ 4
Acquisition No. 2 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred (in Dollars)	$ 81.3

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - Schedule of Asset Retirement Obligations - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Asset Retirement Obligations [Abstract]
Balance	$ 624,089	$ 570,795
Well additions	22,995	5,618
Accretion	6,272	5,576
Revisions	0	0
Balance	$ 653,356	$ 581,989

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Inputs, Level 1 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current liabilities	$ 0	$ 0
Total	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current liabilities	(725,303)	(594,632)
Total	(725,303)	(594,632)
Fair Value, Inputs, Level 3 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current liabilities	0	0
Total	$ 0	$ 0

Risk Management (Details)

Risk Management (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability, Current	$ 725,303	$ 594,632

Risk Management (Details) - Der

Risk Management (Details) - Derivative Instruments, Gain (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Abstract]
Settlement gain (loss) on matured derivatives	$ (1,036,303)	$ 261,990
Gain (loss) on mark-to-market of derivatives	(130,671)	1,244,098
Gain (loss) on derivatives	$ (1,166,974)	$ 1,506,088

Risk Management (Details) - Sch

Risk Management (Details) - Schedule of Derivative Instruments	3 Months Ended
	Mar. 31, 2021USD ($)$ / itembbl
Derivative [Line Items]
Fair Value of Liability (in Dollars) | $	$ (725,303)
Costless Collar Agreements #1 [Member] | Price Risk Derivative [Member]
Derivative [Line Items]
Basis	NYMEX
Oil (Barrels) (in Barrels (of Oil)) | bbl	26,170
Floor Price	38
Fair Value of Liability (in Dollars) | $	$ (377,168)
Ceiling Price	44.85
Costless Collar Agreements #2 [Member] | Price Risk Derivative [Member]
Derivative [Line Items]
Basis	NYMEX
Oil (Barrels) (in Barrels (of Oil)) | bbl	26,170
Floor Price	37.50
Fair Value of Liability (in Dollars) | $	$ (348,135)
Ceiling Price	46

Capital Contribution and Part_2

Capital Contribution and Partners' Equity (Details) - USD ($) $ / shares in Units, shares in Millions	Dec. 30, 2016	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2017	Oct. 24, 2019
Capital Contribution and Partners' Equity (Details) [Line Items]
Partners' Capital Account, Contributions	$ 1,000
Partners' Capital Account, Return of Contribution Upon Minimum Offering				$ 990
Partners' Capital Account, Description of Units Sold		Under the agreement with David Lerner Associates, Inc. (the “Managing Dealer”), the Managing Dealer received a total of 6% in selling commissions and a marketing expense allowance based on gross proceeds of the common units sold. The Managing Dealer also has Dealer Manager Incentive Fees (defined below) where the Managing Dealer could receive distributions up to an additional 4% of gross proceeds of the common units sold in the Partnership’s best-efforts offering as outlined in the prospectus based on the performance of the Partnership.
Managing Dealer, Selling Commissions, Percentage		6.00%
Managing Dealer, Maximum Contingent Incentive Fee on Gross Proceeds, Percentage		4.00%
Managing Dealer, Maximum Contingent Incentive Fee on Gross Proceeds		$ 8,700,000
Key Provisions of Operating or Partnership Agreement, Description		The Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) provides that “Payout”, which is defined below, occurs on the day when the aggregate amount distributed with respect to each of the common units equals $20.00 plus the Payout Accrual. The Partnership Agreement defines “Payout Accrual” as 7% per annum simple interest accrued monthly until paid on the Net Investment Amount outstanding from time to time. The Partnership Agreement defines Net Investment Amount initially as $20.00 per common unit, regardless of the amount paid for the common unit. If at any time the Partnership distributes to holders of common units more than the Payout Accrual, the amount the Partnership distributes in excess of the Payout Accrual will reduce the Net Investment Amount. All distributions made by the Partnership after Payout, which may include all or a portion of the proceeds of the sale of all or substantially all of the Partnership’s assets, will be made as follows:  ● First, (i) to the Record Holders of the Incentive Distribution Rights, 30%; (ii) to the Managing Dealer, the “Dealer Manager Incentive Fees”, 30%, until such time as the Managing Dealer receives 4% of the gross proceeds of the common units sold; and (iii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest.   ● Thereafter, (i) to the Record Holders of the Incentive Distribution Rights, 60%; and (ii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest.  All items of income, gain, loss and deduction will be allocated to each Partner’s capital account in a manner generally consistent with the distribution procedures outlined above.
Distribution Made to Limited Partner, Cash Distributions Paid		$ 3,850,474	$ 3,850,473
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in Dollars per share)		$ 0.349041	$ 0.349041
Best-Efforts Offering [Member]
Capital Contribution and Partners' Equity (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares)					11
Proceeds from Issuance of Common Limited Partners Units					$ 218,000,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units					$ 204,300,000

Related Parties (Details)

Related Parties (Details) - USD ($)	Dec. 01, 2020	Mar. 31, 2021	Mar. 31, 2020
Related Parties (Details) [Line Items]
Related Party Transaction, Description of Transaction		subsequent to the Partnership’s first asset purchase, which occurred on February 1, 2018, the Partnership is required to pay quarterly an annual fee of 0.5% of the total gross equity proceeds raised by the Partnership in its best-efforts offering.
General Partner [Member]
Related Parties (Details) [Line Items]
Due to Related Parties, Current		$ 32,000
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		32,000	$ 92,000
Energy 11 [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party			76,000
Administrative Service Agreement [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		140,000
Related Party, Administrative Service Agreement	Under the ASA, the General Partner agreed to pay one-half of its annual management fee to the Administrator in exchange for the services to be provided under the ASA.
Management Fee [Member] | General Partner [Member]
Related Parties (Details) [Line Items]
Due to Related Parties, Current		273,000	$ 273,000
Administrative Service Agreement [Member] | General Partner [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		$ 273,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions	1 Months Ended
	Apr. 30, 2021USD ($)$ / shares
Subsequent Events (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Paid | $	$ 1.5
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ / shares	$ 0.134247