Sitio Royalties (STR) 10-Q 13 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
Entity Registrant Name	Falcon Minerals Corp
Entity Central Index Key	1,703,785
Amendment Flag	false
Trading Symbol	FLMN
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Class A common stock
Entity Common Stock, Shares Outstanding		45,855,000
Class C common stock
Entity Common Stock, Shares Outstanding		40,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 12,906	$ 8,345
Accounts receivable	12,086	12,564
Prepaid expenses	1,728	1,321
Current asset held for sale		3,337
Total current assets	26,720	25,567
Royalty interests in oil and natural gas properties, net of accumulated amortization of $113,822 and $155,855, respectively	211,736	304,663
Deferred tax asset, net	60,603
Other assets	3,295	259
Non-current assets held for sale		22,253
Total assets	302,354	352,742
Current liabilities:
Accounts payable and accrued expenses	775	3,650
Accrued expenses - to partners		1,601
Current liabilities held for sale		152
Total current liabilities	775	5,403
Credit facility	38,000	57,024
Non-current liabilities held for sale		1,158
Total liabilities	38,775	63,585
Commitments and contingencies
Shareholder's equity and partners' capital:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Additional paid in capital	137,866
Non-controlling interests	123,175	629
Retained earnings	2,529
Partners' capital		288,528
Total shareholder's equity and partners' capital	263,579	289,157
Total liabilities, shareholder's equity and partners' capital	302,354	352,742
Class A Common Stock
Shareholder's equity and partners' capital:
Common stock, value	5
Total shareholder's equity and partners' capital	5
Class C Common Stock
Shareholder's equity and partners' capital:
Common stock, value	4
Total shareholder's equity and partners' capital	$ 4

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accumulated amortization	$ 113,822	$ 155,855
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Class A Common Stock
Common stock, par value	$ 0.0001
Common stock, shares authorized	240,000,000
Common stock, shares issued	45,855,000
Common stock, shares outstanding	45,855,000
Class C Common Stock
Common stock, par value	$ 0.0001
Common stock, shares authorized	120,000,000
Common stock, shares issued	40,000,000
Common stock, shares outstanding	40,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Oil and gas sales	$ 23,825	$ 19,218	$ 72,354	$ 70,117
Gain (loss) on hedging activities	458	(164)	(1,456)	1,792
Revenues	24,283	19,054	70,898	71,909
Expenses:
Production and ad valorem taxes	1,326	1,144	3,854	4,032
Marketing and transportation	493	1,367	1,487	5,126
Amortization of royalty interests in oil and natural gas properties	4,494	7,829	13,179	27,608
General, administrative and other	1,132	1,160	7,013	4,182
Total expenses	7,445	11,500	25,533	40,948
Operating income	16,838	7,554	45,365	30,961
Other income (expense):
Gain on the sale of assets			41,382
Other income	38		39
Interest expense	(557)	(710)	(1,600)	(2,028)
Total other income (expense)	(519)	(710)	39,821	(2,028)
Income before income taxes	16,319	6,844	85,186	28,933
Provision for income taxes	810		810
Income from continuing operations	15,509	6,844	84,376	28,933
Income from discontinued operations	91	688	2,139	1,683
Net income	15,600	7,532	86,515	30,616
Net income attributable to non-controlling interests	(2,933)	(29)	(3,028)	(90)
Net income attributable to common shareholders/unitholders	$ 12,667	$ 7,503	$ 83,487	$ 30,526
Earnings (loss) per common share:
Common shares (basic)	$ 0.06		$ 0.06
Common shares (diluted)	$ 0.03		$ 0.03

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flow from operating activities:
Net income	$ 86,515	$ 30,616
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on sale of assets	(41,382)
Unrealized (gain) loss on hedging activities, net	1,151	(1,040)
Amortization of royalty interests in oil and natural gas properties	14,753	30,711
Accretion of asset retirement obligation	7	31
Amortization of debt issuance costs	296	71
Deferred income taxes	1,061
Cash paid to settle derivatives	(1,151)
Changes in operating assets and liabilities:
Accounts receivable	1,067	(951)
Prepaid expenses	(616)	(1,062)
Accounts payable and accrued expenses	(4,752)	656
Other liabilities	(147)	99
Net cash provided by operating activities	56,802	59,131
Cash flows from investing activities:
Additions to oil and natural gas properties	(523)	(3,241)
Decrease in advances to operators		225
Cash acquired in the Transaction	2,920
Proceeds from sale of assets	121,130
Net cash provided by (used in) investing activities	123,527	(3,016)
Cash flows from financing activities:
Distributions to partners	(143,788)	(30,000)
Distribution of subsidiaries	(7,124)
Repayments of long-term debt	(27,000)	(1,000)
Deferred financing fees	(8)
Proceeds from credit facility
Net cash (used in) financing activities	(177,920)	(31,000)
Net increase (decrease) in cash and cash equivalents	2,409	25,115
Cash and cash equivalents, beginning of period	8,345	8,048
Cash and cash equivalents, end of period	12,906	33,163
Supplemental disclosure of cash flow information:
Cash paid for interest	1,245	2,004
Cash paid for income taxes	450
Non-cash investing and financing activities:
Credit facility prior to the Transaction	38,000
Deferred financing prior to the Transaction	3,214
Deferred tax asset related to the Transaction	60,603
Accounts payable related to capital expenditures	$ 229	$ 122

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholder's Equity and Partners' Capital (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Class A Common Stock	Class C Common Stock	Additional Paid in Capital	Partners' Capital	Non-controlling Interests	Retained Earnings	Total
Partners' capital at Dec. 31, 2017				$ 288,528	$ 629		$ 289,157
Partners' capital at Dec. 31, 2017
Distributions to partners				(143,750)	(38)		(143,788)
Net income prior toTransaction				80,959	115		81,074
Recapitalization in connection with the Transaction	$ 5	$ 4	137,866	(225,737)	119,556		31,694
Recapitalization in connection with the Transaction, shares	45,855,000	40,000,000
Net income post Transaction					2,913	2,529	5,442
Shareholder's equity at Sep. 30, 2018	$ 5	$ 4	$ 137,866		$ 123,175	$ 2,529	$ 263,579
Shareholder's equity, shares at Sep. 30, 2018	45,855,000	40,000,000

Organization and Presentation

Organization and Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Presentation	Note 1—Organization and Presentation Organization and Description of Business Falcon Minerals Corporation (the “Company” or “Falcon” and formerly named Osprey Energy Acquisition Corp.) was a blank check company, incorporated in Delaware in June 2016. The Company was formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, recapitalization, or other similar business transaction, one or more operating businesses or assets (a “Business Combination”). On August 23, 2018 (the “Closing Date”), the Company completed the acquisition of the equity interests ( the “Equity Interests”) in certain of the subsidiaries (the “Royal Entities”) of Noble Royalties Acquisition Co., LP, (“NRAC”), Hooks Ranch Holdings LP (“Hooks Holdings”), DGK ORRI Holdings, LP (“DGK”), DGK ORRI GP LLC (“DGK GP”) and Hooks Holding Company GP, LLC (“Hooks GP”, and collectively with NRAC, Hooks Holdings, DGK, and DGK GP, the “Contributors”). The acquisition was made pursuant to the Contribution Agreement, dated as of June 3, 2018 (the “Contribution Agreement”), by and among the Company, Royal Resources L.P. (“Royal”), Royal Resources GP L.L.C. (“Royal GP”) and the Contributors. The acquisition of the Royal Entities pursuant to the Contribution Agreement is referred to in this Form 10-Q as the “Business Combination” and the Business Combination together with the other transactions contemplated by the Contribution Agreement are referred to herein as the “Transactions.” Pursuant to the Contribution Agreement, on the Closing Date, the Company contributed cash to Falcon Minerals Operating Partnership, LP, a Delaware limited partnership and wholly owned subsidiary of the Company (“Opco”), in exchange for (a) a number of OpCo Common Units representing limited partnership interests in Opco (the “OpCo Common Units”) equal to the number of shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), outstanding as of the Closing Date and (b) a number of Opco warrants exercisable for OpCo Common Units equal to the number of the Company’s warrants outstanding as of the Closing Date. The Company controls Opco through Falcon Minerals GP, LLC, a Delaware limited liability company, wholly owned subsidiary of the Company and the sole general partner of Opco (“Opco GP”). On the Closing Date, Falcon completed the acquisition of the Equity Interests and in return the Contributors received (i) $400 million of cash and (ii) 40 million units OpCo Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled. In connection with the closing of the Business Combination (the “Closing”), the Company changed its name from “Osprey Energy Acquisition Corp.” to “Falcon Minerals Corporation”. The Company is now structured as an “Up-C,” meaning that substantially all the assets of the Company are held by Opco, and the Company’s only operating asset is its equity interest in Opco. Each OpCo Common Unit, together with one share of Class C Common Stock, is exchangeable for one share of Class A Common Stock at the option of the holder pursuant to the terms of the Company’s and Opco’s organizational documents, subject to certain restrictions. The Company’s assets, via its controlling interest in OpCo, consist of royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests, or ORRIs, (“Royalties) underlying approximately 250,000 gross unit acres that are concentrated in what the Company believes is the “core-of-the-core” of liquids-rich condensate region of the Eagle Ford Share in Karnes, DeWitt and Gonzales Counties, Texas. The company owns additional assets of approximately 58,000 gross acres in Pennsylvania, Ohio and West Virginia that is prospective for Marcellus Shale. These royalties entitle the holder to a portion of the production of oil and natural gas from the underlying acreage at the sales price received by the operator, net of any applicable post-production expenses and taxes. The holder of these interests has no obligation to fund exploration and development costs, lease operating expenses or plugging and abandonment costs at the end of a well’s productive life.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2—Summary of Significant Accounting Policies Basis of Presentation The acquisition of the Royal Entities has been accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Falcon will be treated as the acquired company and Royal will be treated as the acquirer for financial reporting purposes. Therefore, the consolidated financial results include information regarding Royal as the Company’s predecessor entity, which includes certain interests in subsidiary companies which were not acquired by the Company in the Transactions. Thus, the financial statements included in this report reflect (i) the historical operating results of Royal prior to the Transactions: (ii) the combined results of the Company, OpCo and Royal following the Transactions; (iii) the assets, liabilities and partners’ capital of Royal at their historical costs; and (iv) the Company’s equity and earnings per share presented for the period from the Closing Date of the Business Combination. The Royal subsidiaries that were contributed in the Transaction are VickiCristina, LP, DGK ORRI Company, L.P., Noble EF DLG LP, Noble EF LP and Noble Marcellus LP. The interests in Riverbend Natural Resources, L.P (‘RNR”) and KGD ORRI, L.P. were not contributed in the Transactions (the “Non-Contributed Entities”). The RNR interests that were not contributed in the Transactions are classified as held for sale and are presented separately in the December 31, 2017 consolidated balance sheet of the Company. In addition, the amounts attributed to RNR interests related to the Transaction are included in discontinued operations in the consolidated statements of operations. The accompanying interim statements of the Company have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair statement of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year or for any other period. These interim statements should be read in conjunction with Royal’s audited financial statements for the year ended December 31, 2017 included in the proxy statement of the Company filed with the SEC on August 3, 2018 (the “Proxy Statement”) and incorporated by reference in the Current Report on Form 8-K filed with the SEC on August 29, 2018. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; the reported amounts of revenues and expenses during the reporting periods; and the quantities and values of proved oil, natural gas and natural gas liquids (“NGLs”) reserves used in calculating depletion and assessing impairment of oil and natural gas properties. Actual results could differ significantly from these estimates. Significant estimates made by management include the quantities of proved oil, natural gas and NGL reserves, related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, fair value of the Company’s warrants, estimates of current and deferred income taxes, and deferred income tax valuation allowances. While management believes these estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates and it is reasonably possible these estimates could be revised in the near term, and these revisions could be material. Royalty Interests in Oil and Natural Gas Properties The Company follows the successful efforts method of accounting for oil and natural gas operations. Under this method, costs to acquire mineral and royalty interests in oil and natural gas properties are capitalized when incurred. Acquisitions of royalty interests of oil and natural gas properties are considered asset acquisitions and are recorded at cost. Acquisition costs of proven royalty interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. Acquisition costs of royalty interests on exploration stage properties, where there are no proven reserves, are not amortized. When the associated exploration stage interests are converted to proven reserves, the cost basis is amortized using the units of production methodology over the life of the property, using proven reserves. For purposes of amortization, interests in oil and natural gas properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the condensed consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy. The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term maturities of these instruments (Level 1). Because the Credit Facility (as defined in “Note 5 – Debt – Falcon Credit Facility” below) has a market rate of interest, its carrying amount approximated fair value (Level 2). Revenue Recognition The Company’s oil, natural gas and natural gas liquids sales contracts are generally structured whereby the producer of the properties in which the Company owns a royalty interest sells the Company’s proportionate share of oil, natural gas and natural gas liquids production to the purchaser and the Company collects its percentage royalty based upon the revenue generated by the sale of the oil, natural gas and natural gas liquids. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Company’s percentage ownership share of the revenue. The Company uses the entitlement method of accounting for revenues. Under this method, revenues are recognized based on actual production. However, settlement statements for certain oil, natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of royalty income to be received based upon the Company’s interest. The Company records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the producer. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. To the extent actual volumes and prices of oil and natural gas are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to the expected sales volume and prices for those properties are estimated and recorded. Income Taxes The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Royal was historically treated as a partnership for federal income tax purposes, with each partner being separately taxed on its share of taxable income; therefore, there is no federal income tax expense reflected in Royal’s financial statements. Derivative Financial Instruments Royal used derivative financial instruments to reduce exposure to fluctuations in commodity prices. The transactions were in the form of crude swaps. Royal’s derivative instruments were not designated as cash flow hedges for accounting purposes for any of periods presented. Accordingly, the changes in fair value are recognized in the consolidated statements of operations in the period of change. Gains and losses from derivatives are included in the cash flows from operating activities. Royal’s derivative financial instruments were extinguished in connection with the Transaction. Segment Reporting The Company derives revenue from royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests, or ORRIs, (“Royalties”) in oil and natural gas properties in North America. The Company operates in a single operating and reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s chief executive officer has been determined to be the CODM and allocates resources and assesses performance based upon financial information at the consolidated level. Recently Issued Accounting Pronouncements In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue recognition. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. In April 2015, the FASB proposed a one-year deferral of the effective date, and therefore, this guidance will be effective for the Company beginning in the first quarter of 2019, with early adoption optional but not before the original effective date of December 15, 2016. In May and December 2016, the FASB issued certain narrow-scope improvements and practical expedients to the guidance. The Company plans to adopt this effective January 1, 2019 using the modified retrospective method. To date, the Company has not identified changes to its revenue recognition policies that would result in a material adjustment to the opening balance of shareholder’s equity on January 1, 2019; however, it is continuing to evaluate the effect, if any, adopting this guidance will have on its financial position, results of operations, cash flows and related disclosures. Adopting this guidance will result in increased disclosures related to revenue recognition policies and disaggregation of revenue. In February 2016, the FASB issued new guidance which amends various aspects of existing guidance for leases. The new guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The main difference between previous GAAP and the new standard is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases under previous GAAP. As a result, the Company will have to recognize a liability representing its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The new guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial position or results of operations. In August 2016, the FASB issued new guidance which makes eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides specific guidance on cash flow classification issues that are not currently addressed by GAAP and thereby reduces the current diversity in practice. The standard is effective for the Company’s financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect this requirement to have a significant impact on its financial condition, results of operations, cash flows and related disclosures. In January 2017, the FASB issued new guidance which provides clarifications to evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company does not expect this requirement to have a significant impact on its financial condition, results of operations, cash flows and related disclosures.

Transaction

Transaction	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Transaction	Note 3 – Transaction On the Closing Date, Falcon completed the acquisition of the equity interests in the Royal Entities and in return the Contributors received (i) $400 million of cash and (ii) 40 million units Op Co Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled. In addition to the above, pursuant to the Contribution Agreement, Royal is entitled to receive earn-out consideration to be paid in the form of OpCo Common Units (and a corresponding number of shares of Class C Common Stock) if the 30-day volume-weighted average price (“30-Day VWAP”) of the Class A Common Stock equals or exceeds certain hurdles set forth in the Contribution Agreement. Royal can potentially receive up to an additional 20.0 million OpCo Common Units as a part of the earn-out consideration. As of the September 30, 2018, none of these hurdles have been met. Royal is also entitled to the earn-out consideration described above in connection with certain liquidity events of the Company, including a merger or sale of all or substantially all of the Company’s assets, if the consideration paid to holders of the Class A Common Stock in connection with such liquidity event is greater than any of the 30-Day VWAP hurdles. In connection with the Company’s entry into the Contribution Agreement, the Company agreed to issue and sell in a private placement an aggregate of 11,480,000 shares of Class A Common Stock for a purchase price of $10.00 per share, and aggregate consideration of $114.8 million (the “Private Placement”). The Private Placement was consummated concurrently with the Closing Date and the proceeds of the Private Placement were used to fund a portion of the cash consideration paid to the Contributors. Because Royal has effective control of the combined company after the Transaction through its majority voting interests in both the Company and, accordingly, Opco, this Transaction was accounted for as a reverse recapitalization. Although the Company was the legal acquirer, Royal was the accounting acquirer. As a result, the reports filed by the Company subsequent to the Transaction are prepared “as if” Royal is the predecessor and legal successor to the Company. The historical operations of Royal are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Royal prior to the Transaction; (ii) the combined results of the Company, OpCo and Royal following the Transaction; (iii) the assets, liabilities and partners’ capital of Royal at their historical cost; and (iv) the Company’s equity and earnings per share for the period from the Closing Date of the Business Combination. The RNR assets, liabilities and operations are considered discontinued operations prior to the Closing Date of the Transactions. Below is a reconciliation of the carrying amounts of the major classes of assets and liabilities of the discontinued operations that are classified as held for sale and are presented separately in the December 31, 2017 consolidated balance sheet of the Company (in thousands): December 31, 2017 Assets: Current assets: Cash and cash equivalents $ 2,152 Accounts receivable 1,185 Total current assets 3,337 Royalty interests in oil and natural gas properties, net 22,253 Total assets of disposal group classified as held for sale $ 25,590 Liabilities and shareholder’s equity: Current liabilities: Accounts payable and accrued expenses $ 152 Total current liabilities 152 Credit facility 976 Asset retirement obligation 182 Total liabilities of the disposal group classified as held for sale $ 1,310 Below are amounts attributed to the disposition of the RNR interests included in discontinued operations in the consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: Oil & gas sales $ 635 $ 2,819 $ 5,401 $ 6,318 Expenses: Production and ad valorem taxes 39 242 484 558 Lease operating expenses 114 194 510 458 Transportation and marketing 153 160 332 310 Depreciation, depletion and amortization 181 1,472 1,574 3,103 General, administrative and other 51 49 325 167 Total expenses 538 2,117 3,225 4,596 Operating income 97 702 2,176 1,722 Other income (expense): Other income 2 - 2 - Interest expense (8 ) (14 ) (39 ) (39 ) Total other income (expense) (6 ) (14 ) (37 ) (39 ) Net income $ 91 $ 688 $ 2,139 $ 1,683 Below are the amounts attributed to the disposition of the RNR interests included in the consolidated cash flow statements (in thousands): Nine Months Ended September 30, 2018 2017 Cash flow from operating activities: Net income $ 2,139 $ 1,683 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of mineral interests 1,574 3,103 Amortization of debt issuance costs 8 9 Accretion expense 7 31 Changes in operating assets and liabilities: Accounts receivable 534 (397 ) Accounts receivable - related parties 54 - Accounts payable and accrued expenses (41 ) (20 ) Accrued expenses to related parties 215 96 Net cash provided by operating activities 4,490 4,505 Cash flows from investing activities: Additions to oil and natural gas properties (523 ) (2,684 ) Additions to oil and natural gas properties - change in capital accruals - (557 ) Decrease in advances to operators - 225 Net cash (used in) investing activities (523 ) (3,016 ) Cash flows from financing activities: Distributions (530 ) - Net cash (used in) financing activities (530 ) - Net increase (decrease) in cash and cash equivalents 3,437 1,489 Cash and cash equivalents, beginning of period 2,152 2,512 Cash and cash equivalents, end of period $ 5,589 $ 4,001

Oil and Natural Gas Interests

Oil and Natural Gas Interests	9 Months Ended
	Sep. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Oil and Natural Gas Interests	Note 4—Oil and Natural Gas Interests Oil and natural gas interest include the following (in thousands): As of September 30, December 31, 2018 2017 Oil and natural gas interests: Subject to depletion $ 306,359 $ 463,571 Not subject to depletion 19,200 19,200 Gross oil and natural gas interests 325,559 482,771 Accumulated depletion and impairment (113,823 ) (155,855 ) Less: Discontinued operations portion - (22,253 ) Oil and natural gas interests, net 211,736 304,663 In February 2018, Royal completed the sale of its interests in a portion of its oil and natural gas properties to an unaffiliated third part for cash proceeds of $121.0 million. The sale resulted in a realized gain of $41.3 million.

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Note 5—Debt Royal Credit Facilities Royal’s historical primary sources of indebtedness are its first lien credit facility, which it entered into in October 2012, and Royal Natural Resources, LP (“RNR”) credit facility: · First lien credit facility: · RNR credit facility: The availability under each facility was subject to Royal’s compliance with certain customary contractual financial and non-financial covenants and non-financial covenants and each facility was secured by Royal’s assets. Falcon Credit Facility On the Closing Date, we entered into a credit facility with Citibank, N.A., as administrative agent and collateral agent for the lenders from time to time party thereto (the “Credit Facility”). The Credit Facility initially provides for aggregate revolving borrowings of up to $500.0 million with an initial $115.0 million borrowing base and expires on the fifth anniversary of the Closing Date. On the Closing Date, $38.0 million was drawn under the Credit Agreement to fund a portion of the purchase price of the Business Combination, to pay transaction expenses, to fund any original issue discount or upfront fees in connection with the “market flex” provisions previously agreed upon and to finance working capital needs and other general corporate purposes. As of September 30, 2018, the Company had borrowings of $38.0 million under the Credit Facility at an interest rate of 4.62%. The Company incurred $3.2 million in connection with the closing of the Credit Facility. These amounts have been recorded as a deferred asset and will be amortized over the term of the credit facility. Principal amounts borrowed are payable on the maturity date. We have a choice of borrowing at the base rate or LIBOR, with such borrowings bearing interest, payable quarterly in arrears for base rate loans and one month, two-month, three month or six-month periods for LIBOR loans. LIBOR loans bear interest at a rate per annum equal to the rate appearing on the Reuters Reference LIBOR01 or LIBOR02 page as the LIBOR, for deposits in dollars at 12:00 noon (London, England time) for one, two, three, or six months plus an applicable margin ranging from 200 to 300 basis points. Base rate loans bear interest at a rate per annum equal to the greatest of (i) the agent bank’s reference rate, (ii) the federal funds effective rate plus 50 basis points and (iii) the rate for one-month LIBOR loans plus 1%, plus an applicable margin ranging from 100 to 200 basis points. The next scheduled redetermination of our borrowing base is on April 1, 2019. Based upon the current borrowing base, the Company has $77.0 million of available capacity under the Credit Facility. Obligations under the Credit Facility are guaranteed by us and each of our existing and future, direct and indirect domestic subsidiaries (the “Credit Parties”) and are secured by all the present and future assets of the Credit Parties, subject to customary carve-outs. The Credit Facility contains certain customary representations and warranties, affirmative covenants, negative covenants and events of default. As of September 30, 2018, the Company was in compliance with such covenants. The negative covenants include restrictions on the Company’s ability to incur additional indebtedness, acquire and sell assets, create liens, enter into certain lease agreements, make investments and make distributions.

Shareholder's Equity and Divide

Shareholder's Equity and Dividends	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Shareholder's Equity and Dividends	Note 6—Shareholder’s Equity and Dividends Shares Outstanding Prior to the Transaction, Falcon was a shell company with no operations, formed as a vehicle to affect a business combination with one or more operating businesses. After the Closing of the Transaction, the Company became a holding company whose sole material operating asset consists of its interest in Royal through its interest in Opco. The following table summarizes the changes in the outstanding stock and warrants through September 30, 2018. Class A Common Stock Class B Common Stock Class C Common Stock Warrants Issued at IPO in July 2017 27,500,000 - - 13,750,000 Issued to founders - 6,875,000 - 7,500,000 Issued in connection with private placement 11,480,000 - - - Issued in connection with the Transaction - - 40,000,000 - Class B conversion related to Transaction 6,875,000 (6,875,000 ) Shares outstanding at September 30, 2018 45,855,000 - 40,000,000 21,250,000 Preferred stock - Class A Common Stock Class B Common Stock Class C Common Stock Warrants In connection with the Transaction, the Company issued 40,000,000 OpCo Common Units to the Contributors. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the holder. Upon the redemption by any Contributor of OpCo Common Units for shares of Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled. In addition to the above, the Contributors will be entitled to receive earn-out consideration to be paid in the form of OpCo Common Units (with a corresponding number of shares of Class C common stock) if the volume-weighted average price of the trading days during any thirty (30) calendar days (the “30-Day VWAP”) of the Class A common stock equals or exceeds certain hurdles set forth in the Contribution Agreement. If the 30-Day VWAP of the Class A common stock is $12.50 or more per share at any time within the seven years following the closing, Royal LP will receive (i) an additional 10 million Op Co Common Units (and an equivalent number of shares of Class C common stock), plus (ii) an amount of OpCo Common Units (and an equivalent number of shares of Class C common stock) equal to (x) the amount by which annual cash dividends paid on each share of Class A common stock exceeds $0.50 in each year between the closing and the date the first earn-out is achieved (with any dividends paid in the stub year in which the first earn-out is achieved annualized for purposes of determining what portion of such dividends would have, on an annual basis, exceeded $0.50), multiplied by 10 million, (y) divided by $12.50. If the 30-Day VWAP of the Class A common stock is $15.00 or more per share at any time within the seven years following the closing (which $15.00 threshold will be reduced by the amount by which annual cash dividends paid on each share of Class A common stock exceeds $0.50 in each year between the closing and the date the earn-out is achieved, but not below $12.50), the Contributors will receive an additional 10 million OpCo Common Units (and an equivalent number of Class C common stock). Noncontrolling Interest The Company’s non-controlling ownership interest in consolidated subsidiaries are presented in the consolidated balance sheet within shareholder’s equity as a separate component. In addition, consolidated net income includes earnings attributable to both the shareholders and the non-controlling interests. For the nine months ended September 30, 2018 and 2017, less than $0.1 million of distributions for each period have been made to non-controlling interest holders of the consolidated subsidiaries. Long-Term Incentive Plan In connection with the Closing, the Falcon Board of Directors adopted the Falcon Minerals Corporation 2018 Long-Term Incentive Plan (the “Plan”). An aggregate of 8.6 million shares of Class A Common Stock are available for issuance under the Plan. As of September 30, 2018, no grants have been made under the Plan. Cash Dividends The table below summarizes the quarterly dividends related to the Company’s quarterly financial results (in thousands, except per unit data): Total Quarterly Dividend per Total Cash Date of Class A Shareholders Quarter Ended Share Dividend Dividend Record Date 9/30/2018 (1) $ 0.0950 $ 4,356 November 15, 2018 November 8, 2018 (1) Initial pro rata dividend, prorated for the period from August 23, 2018 to September 30, 2018.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Earnings (loss) per common share:
Earnings Per Share	Note 7—Earnings Per Share The Transaction was structured as a reverse capitalization by which the Company issued stock for the net assets of Royal accompanied by a recapitalization. Earnings per share is calculated for the Company only for periods after the Transaction due to the reverse recapitalization. Diluted net income per share includes the effects of potentially dilutive shares of the Class C Common Stock. Diluted net income per share excludes the effects of warrants to purchase 21,250,000 shares of common stock because there are no assurances that the stock price will exceed the exercise price. The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Net income attributable to Class A shareholders $ 2,529 $ 2,529 Weighted average common shares outstanding: Basic weighted average common shares outstanding 45,855 45,855 Effect of dilutive securities: Potential common shares issuable 40,000 40,000 Diluted weighted average common units outstanding 85,855 85,855 Net income per common share, basic $ 0.06 $ 0.06 Net income per common share, diluted $ 0.03 $ 0.03

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 8—Income Taxes The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As of September 30, 2018, the Company recorded an income tax expense of $810,231 and $0 for the three months ended September 30, 2018 and 2017, and income tax expense of $810,231 and $0 for the nine months ended September 30, 2018 and 2017, respectively. Royal was historically treated as a partnership for federal income tax purposes, with each partner being separately taxed on its share of taxable income; therefore, there is no federal income tax expense reflected in Royal’s financial statements for the three and nine months ending September 30, 2017 or any period prior to the business combination on August 23, 2018. As of September 30, 2018, the Company had $60.6 million of net deferred tax assets net of valuation allowances. Deferred tax assets of $61.1M net of valuation allowances were recorded as of the August 23, 2018 transaction date. These net deferred tax assets relate to oil & gas assets and other temporary items where the tax basis differs from the GAAP carrying amounts. At September 30, 2018 and December 31, 2017, the Company had recorded a prepayment of income taxes of $355,983 and $0 respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect our calendar year tax filings for the period ending December 31, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3) creating a new limitation on deductible interest expense; and (4) changing rules related to uses and limitations of NOL carryforwards created in tax years beginning after December 31, 2017. The impact of the Tax Act on the Company’s financial statements are recorded in the amounts reported in our income tax provision.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 9—Related Party Transactions Founder Shares In June 2016, the Company issued an aggregate of 125,000 shares of Class B Common Stock to Osprey Sponsor, LLC (the “Sponsor”) for an aggregate purchase price of $25,000 (the “Founder Shares”). In March 2017, the Company effectuated a 57.5-for-1 stock split resulting in an aggregate of 7,187,500 Founders Shares outstanding and held by the Sponsor. The Founder Shares automatically converted into Class A Common Stock upon the consummation of the Transaction on a one-for-one basis. Due to the underwriter’s election not to exercise the remaining portion of the over-allotment option related to the Initial Public Offering, 312,500 Founder Shares were forfeited resulting in an aggregate of 6,875,000 Founders Shares held by the Sponsor prior to the Transaction. Promissory Note Prior to the closing of the Initial Public Offering, the Sponsor loaned the Company a total of $0.2 million under a promissory note (the “Promissory Note”) to be used for the payment of costs related to the Initial Public Offering. The Promissory Note was non-interest bearing, unsecured and due on the earlier of December 31, 2017 or the closing of the Initial Public Offering. The Promissory Note was repaid upon the consummation of the Initial Public Offering. Atlas Energy Group, LLC Atlas Energy Group, LLC, which Company officers and directors Edward Cohen, Jonathan Cohen and Daniel Herz are also directors and officers of, and its affiliates provide the Company with advisory services in connection with potential business opportunities and prospective targets. For the nine months ended September 30, 2018 and 2017, the Company paid less than $0.1 million and $0 in expenses in connection with such services. In October 2018, Daniel Herz resigned from any and all director and officer positions within Atlas Energy Group, LLC and its affiliates. Hepco Capital Management, LLC Hepco Capital Management, LLC (“Hepco Capital”), which Company officers and directors Edward Cohen, Jonathan Cohen and Jeffrey Brotman are also directors and officers of, and its affiliates share certain employees and office space and reimburses the Company for a proportionate amount of the shared expenses on a monthly basis. For the nine months ended September 30, 2018 and 2017, the Company incurred less than $0.1 million and $0 million, respectively.

Major Operators

Major Operators	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Major Operators	Note 10—Major Operators The following table presents the percentage of revenues with the Company’s significant operators (those that have accounted for 10% or more of the Company’s revenues in a given period) for the periods indicated: % of Revenues % of Revenues Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Conoco Phillips 58 % 15 % 41 % 14 % EOG 13 % 18 % 21 % 16 % Devon 13 % 29 % 16 % 31 % BHP Billiton 4 % 19 % 6 % 23 % Total 88 % 81 % 84 % 84 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11—Commitments and Contingencies The Company could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations. Commitments and Contractual Obligations Future non-cancelable commitments related to certain contractual obligations as of September 30, 2018 are presented below (in thousands): Payments Due by Period Total Q4 2018 2019 2020 2021 2022 Thereafter Long-term debt obligations $ 38,000 $ - $ - $ - $ - $ - $ 38,000 Operating lease obligations 696 52 209 209 209 17 - Total $ 38,696 52 209 209 209 17 38,000

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 12—Subsequent Events Cash Dividends In October 2018, the Company declared a partial quarterly cash dividend of $0.095 per share of Class A common stock totaling approximately $4.4 million for all shares Class A common stock outstanding. The dividend is for the period from August 23, 2018 through September 30, 2018. The dividend is payable on November 15, 2018 to all Class A shareholders of record on November 8, 2018. OpCo Distribution In November 2018, OpCo made distributions totaling $8.8 million to its unitholders. Of the $8.8 million distributed by OpCo, the Company received $4.7 million.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of Presentation The acquisition of the Royal Entities has been accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Falcon will be treated as the acquired company and Royal will be treated as the acquirer for financial reporting purposes. Therefore, the consolidated financial results include information regarding Royal as the Company’s predecessor entity, which includes certain interests in subsidiary companies which were not acquired by the Company in the Transactions. Thus, the financial statements included in this report reflect (i) the historical operating results of Royal prior to the Transactions: (ii) the combined results of the Company, OpCo and Royal following the Transactions; (iii) the assets, liabilities and partners’ capital of Royal at their historical costs; and (iv) the Company’s equity and earnings per share presented for the period from the Closing Date of the Business Combination. The Royal subsidiaries that were contributed in the Transaction are VickiCristina, LP, DGK ORRI Company, L.P., Noble EF DLG LP, Noble EF LP and Noble Marcellus LP. The interests in Riverbend Natural Resources, L.P (‘RNR”) and KGD ORRI, L.P. were not contributed in the Transactions (the “Non-Contributed Entities”). The RNR interests that were not contributed in the Transactions are classified as held for sale and are presented separately in the December 31, 2017 consolidated balance sheet of the Company. In addition, the amounts attributed to RNR interests related to the Transaction are included in discontinued operations in the consolidated statements of operations. The accompanying interim statements of the Company have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair statement of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year or for any other period. These interim statements should be read in conjunction with Royal’s audited financial statements for the year ended December 31, 2017 included in the proxy statement of the Company filed with the SEC on August 3, 2018 (the “Proxy Statement”) and incorporated by reference in the Current Report on Form 8-K filed with the SEC on August 29, 2018.
Use of estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities; disclosure of contingent assets and liabilities at the date of the financial statements; the reported amounts of revenues and expenses during the reporting periods; and the quantities and values of proved oil, natural gas and natural gas liquids (“NGLs”) reserves used in calculating depletion and assessing impairment of oil and natural gas properties. Actual results could differ significantly from these estimates. Significant estimates made by management include the quantities of proved oil, natural gas and NGL reserves, related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, fair value of the Company’s warrants, estimates of current and deferred income taxes, and deferred income tax valuation allowances. While management believes these estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates and it is reasonably possible these estimates could be revised in the near term, and these revisions could be material.
Royalty Interests in Oil and Natural Gas Properties	Royalty Interests in Oil and Natural Gas Properties The Company follows the successful efforts method of accounting for oil and natural gas operations. Under this method, costs to acquire mineral and royalty interests in oil and natural gas properties are capitalized when incurred. Acquisitions of royalty interests of oil and natural gas properties are considered asset acquisitions and are recorded at cost. Acquisition costs of proven royalty interests are amortized using the units of production method over the life of the property, which is estimated using proven reserves. Acquisition costs of royalty interests on exploration stage properties, where there are no proven reserves, are not amortized. When the associated exploration stage interests are converted to proven reserves, the cost basis is amortized using the units of production methodology over the life of the property, using proven reserves. For purposes of amortization, interests in oil and natural gas properties are grouped in a reasonable aggregation of properties with common geological structural features or stratigraphic condition.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs used to measure fair value. This three-tier hierarchy classifies fair value amounts recognized or disclosed in the condensed consolidated financial statements based on the observability of inputs used to estimate such fair values. The classification within the hierarchy of an asset or liability is determined based on the lowest level input that is significant to the fair value measurement. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, the Company categorizes its assets and liabilities recorded at fair value using this hierarchy. The amounts reported in the balance sheet for cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term maturities of these instruments (Level 1). Because the Credit Facility (as defined in “Note 5 – Debt – Falcon Credit Facility” below) has a market rate of interest, its carrying amount approximated fair value (Level 2).
Revenue Recognition	Revenue Recognition The Company’s oil, natural gas and natural gas liquids sales contracts are generally structured whereby the producer of the properties in which the Company owns a royalty interest sells the Company’s proportionate share of oil, natural gas and natural gas liquids production to the purchaser and the Company collects its percentage royalty based upon the revenue generated by the sale of the oil, natural gas and natural gas liquids. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Company’s percentage ownership share of the revenue. The Company uses the entitlement method of accounting for revenues. Under this method, revenues are recognized based on actual production. However, settlement statements for certain oil, natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of royalty income to be received based upon the Company’s interest. The Company records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the producer. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. To the extent actual volumes and prices of oil and natural gas are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to the expected sales volume and prices for those properties are estimated and recorded.
Income Taxes	Income Taxes The Company under ASC 740 uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Royal was historically treated as a partnership for federal income tax purposes, with each partner being separately taxed on its share of taxable income; therefore, there is no federal income tax expense reflected in Royal’s financial statements.
Derivative Financial Instruments	Derivative Financial Instruments Royal used derivative financial instruments to reduce exposure to fluctuations in commodity prices. The transactions were in the form of crude swaps. Royal’s derivative instruments were not designated as cash flow hedges for accounting purposes for any of periods presented. Accordingly, the changes in fair value are recognized in the consolidated statements of operations in the period of change. Gains and losses from derivatives are included in the cash flows from operating activities. Royal’s derivative financial instruments were extinguished in connection with the Transaction.
Segment Reporting	Segment Reporting The Company derives revenue from royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests, or ORRIs, (“Royalties”) in oil and natural gas properties in North America. The Company operates in a single operating and reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s chief executive officer has been determined to be the CODM and allocates resources and assesses performance based upon financial information at the consolidated level.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue recognition. The update requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires new qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, information about contract balances and performance obligations, and assets recognized from costs incurred to obtain or fulfill a contract. In April 2015, the FASB proposed a one-year deferral of the effective date, and therefore, this guidance will be effective for the Company beginning in the first quarter of 2019, with early adoption optional but not before the original effective date of December 15, 2016. In May and December 2016, the FASB issued certain narrow-scope improvements and practical expedients to the guidance. The Company plans to adopt this effective January 1, 2019 using the modified retrospective method. To date, the Company has not identified changes to its revenue recognition policies that would result in a material adjustment to the opening balance of shareholder’s equity on January 1, 2019; however, it is continuing to evaluate the effect, if any, adopting this guidance will have on its financial position, results of operations, cash flows and related disclosures. Adopting this guidance will result in increased disclosures related to revenue recognition policies and disaggregation of revenue. In February 2016, the FASB issued new guidance which amends various aspects of existing guidance for leases. The new guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The main difference between previous GAAP and the new standard is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases under previous GAAP. As a result, the Company will have to recognize a liability representing its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The new guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial position or results of operations. In August 2016, the FASB issued new guidance which makes eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides specific guidance on cash flow classification issues that are not currently addressed by GAAP and thereby reduces the current diversity in practice. The standard is effective for the Company’s financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect this requirement to have a significant impact on its financial condition, results of operations, cash flows and related disclosures. In January 2017, the FASB issued new guidance which provides clarifications to evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company does not expect this requirement to have a significant impact on its financial condition, results of operations, cash flows and related disclosures.

Transaction (Tables)

Transaction (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of discontinued operations that are classified as held for sale	December 31, 2017 Assets: Current assets: Cash and cash equivalents $ 2,152 Accounts receivable 1,185 Total current assets 3,337 Royalty interests in oil and natural gas properties, net 22,253 Total assets of disposal group classified as held for sale $ 25,590 Liabilities and shareholder’s equity: Current liabilities: Accounts payable and accrued expenses $ 152 Total current liabilities 152 Credit facility 976 Asset retirement obligation 182 Total liabilities of the disposal group classified as held for sale $ 1,310 Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: Oil & gas sales $ 635 $ 2,819 $ 5,401 $ 6,318 Expenses: Production and ad valorem taxes 39 242 484 558 Lease operating expenses 114 194 510 458 Transportation and marketing 153 160 332 310 Depreciation, depletion and amortization 181 1,472 1,574 3,103 General, administrative and other 51 49 325 167 Total expenses 538 2,117 3,225 4,596 Operating income 97 702 2,176 1,722 Other income (expense): Other income 2 - 2 - Interest expense (8 ) (14 ) (39 ) (39 ) Total other income (expense) (6 ) (14 ) (37 ) (39 ) Net income $ 91 $ 688 $ 2,139 $ 1,683 Nine Months Ended September 30, 2018 2017 Cash flow from operating activities: Net income $ 2,139 $ 1,683 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of mineral interests 1,574 3,103 Amortization of debt issuance costs 8 9 Accretion expense 7 31 Changes in operating assets and liabilities: Accounts receivable 534 (397 ) Accounts receivable - related parties 54 - Accounts payable and accrued expenses (41 ) (20 ) Accrued expenses to related parties 215 96 Net cash provided by operating activities 4,490 4,505 Cash flows from investing activities: Additions to oil and natural gas properties (523 ) (2,684 ) Additions to oil and natural gas properties - change in capital accruals - (557 ) Decrease in advances to operators - 225 Net cash (used in) investing activities (523 ) (3,016 ) Cash flows from financing activities: Distributions (530 ) - Net cash (used in) financing activities (530 ) - Net increase (decrease) in cash and cash equivalents 3,437 1,489 Cash and cash equivalents, beginning of period 2,152 2,512 Cash and cash equivalents, end of period $ 5,589 $ 4,001

Oil and Natural Gas Interests (

Oil and Natural Gas Interests (Tables)	9 Months Ended
	Sep. 30, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Schedule of oil and natural gas interest	As of September 30, December 31, 2018 2017 Oil and natural gas interests: Subject to depletion $ 306,359 $ 463,571 Not subject to depletion 19,200 19,200 Gross oil and natural gas interests 325,559 482,771 Accumulated depletion and impairment (113,823 ) (155,855 ) Less: Discontinued operations portion - (22,253 ) Oil and natural gas interests, net 211,736 304,663

Shareholder's Equity and Divi_2

Shareholder's Equity and Dividends (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of outstanding stock and warrants	Class A Common Stock Class B Common Stock Class C Common Stock Warrants Issued at IPO in July 2017 27,500,000 - - 13,750,000 Issued to founders - 6,875,000 - 7,500,000 Issued in connection with private placement 11,480,000 - - - Issued in connection with the Transaction - - 40,000,000 - Class B conversion related to Transaction 6,875,000 (6,875,000 ) Shares outstanding at September 30, 2018 45,855,000 - 40,000,000 21,250,000
Schedule of quarterly dividends related to the Company's quarterly financial results	Total Quarterly Dividend per Total Cash Date of Class A Shareholders Quarter Ended Share Dividend Dividend Record Date 9/30/2018 (1) $ 0.0950 $ 4,356 November 15, 2018 November 8, 2018 (1) Initial pro rata dividend, prorated for the period from August 23, 2018 to September 30, 2018.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings (loss) per common share:
Schedule of basic and diluted earnings per share	Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Net income attributable to Class A shareholders $ 2,529 $ 2,529 Weighted average common shares outstanding: Basic weighted average common shares outstanding 45,855 45,855 Effect of dilutive securities: Potential common shares issuable 40,000 40,000 Diluted weighted average common units outstanding 85,855 85,855 Net income per common share, basic $ 0.06 $ 0.06 Net income per common share, diluted $ 0.03 $ 0.03

Major Operators (Tables)

Major Operators (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of revenues with the Company's significant operators	% of Revenues % of Revenues Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Conoco Phillips 58 % 15 % 41 % 14 % EOG 13 % 18 % 21 % 16 % Devon 13 % 29 % 16 % 31 % BHP Billiton 4 % 19 % 6 % 23 % Total 88 % 81 % 84 % 84 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future non-cancelable commitments related to certain contractual obligations	Payments Due by Period Total Q4 2018 2019 2020 2021 2022 Thereafter Long-term debt obligations $ 38,000 $ - $ - $ - $ - $ - $ 38,000 Operating lease obligations 696 52 209 209 209 17 - Total $ 38,696 52 209 209 209 17 38,000

Organization and Presentation (

Organization and Presentation (Details)	1 Months Ended
	Aug. 23, 2018$ / shares
Organization and Presentation (Textual)
Description of the acquisition	(i) $400 million of cash and (ii) 40 million units Op Co Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled.<p></p></p>" id="sjs-B4">&lt;p class="MsoNormal">(i) $400 million of cash and (ii) 40 million units Op Co Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled.&lt;p>&lt;/p>&lt;/p>
Descriptions of royalties	The Company&#8217;s assets, via its controlling interest in OpCo, consist of royalty interests, mineral interests, non-participating royalty interests and overriding royalty interests, or ORRIs, (&#8220;Royalties) underlying approximately 250,000 gross unit acres that are concentrated in what the Company believes is the &#8220;core-of-the-core&#8221; of liquids-rich condensate region of the Eagle Ford Share in Karnes, DeWitt and Gonzales Counties, Texas. The company owns additional assets of approximately 58,000 gross acres in Pennsylvania, Ohio and West Virginia that is prospective for Marcellus Shale.
Class A Common Stock [Member]
Organization and Presentation (Textual)
Common stock, par value	$ 0.0001

Transaction (Details)

Transaction (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,589	$ 2,152	$ 4,001	$ 2,512
Accounts receivable		1,185
Total current assets		3,337
Royalty interests in oil and natural gas properties, net		22,253
Total assets of disposal group classified as held for sale		25,590
Current liabilities:
Accounts payable and accrued expenses		152
Total current liabilities		152
Credit facility		976
Asset retirement obligation		182
Total liabilities of the disposal group classified as held for sale		$ 1,310

Transaction (Details 1)

Transaction (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Oil & gas sales	$ 635	$ 2,819	$ 5,401	$ 6,318
Expenses:
Production and ad valorem taxes	39	242	484	558
Lease operating expenses	114	194	510	458
Transportation and marketing	153	160	332	310
Depreciation, depletion and amortization	181	1,472	1,574	3,103
General, administrative and other	51	49	325	167
Total expenses	538	2,117	3,225	4,596
Operating income	97	702	2,176	1,722
Other income (expense):
Other income	2		2
Interest expense	(8)	(14)	(39)	(39)
Total other income (expense)	(6)	(14)	(37)	(39)
Net income	$ 91	$ 688	$ 2,139	$ 1,683

Transaction (Details 2)

Transaction (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Cash flow from operating activities:
Net income	$ 91	$ 688	$ 2,139	$ 1,683
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of mineral interests			1,574	3,103
Amortization of debt issuance costs			8	9
Accretion expense			7	31
Changes in operating assets and liabilities:
Accounts receivable			534	(397)
Accounts receivable - related parties			54
Accounts payable and accrued expenses			(41)	(20)
Accrued expenses to related parties			215	96
Net cash provided by operating activities			4,490	4,505
Cash flows from investing activities:
Additions to oil and natural gas properties			(523)	(2,684)
Additions to oil and natural gas properties - change in capital accruals				(557)
Decrease in advances to operators				225
Net cash (used in) investing activities			(523)	(3,016)
Cash flows from financing activities:
Distributions			(530)
Net cash (used in) financing activities			(530)
Net increase (decrease) in cash and cash equivalents			3,437	1,489
Cash and cash equivalents, beginning of period			2,152	2,512
Cash and cash equivalents, end of period	$ 5,589	$ 4,001	$ 5,589	$ 4,001

Transaction (Details Textual)

Transaction (Details Textual) $ / shares in Units, $ in Thousands	1 Months Ended
	Aug. 23, 2018USD ($)$ / sharesshares
Transaction (Textual)
Description of the acquisition	(i) $400 million of cash and (ii) 40 million units Op Co Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled.<p></p></p>" id="sjs-B4">&lt;p class="MsoNormal">(i) $400 million of cash and (ii) 40 million units Op Co Common Units. The Company also issued to the Contributors 40 million shares of non-economic Class C common stock of the Company, which entitles each holder to one vote per share. The OpCo Common Units are redeemable on a one-for-one basis for shares of Class A Common Stock at the option of the Contributors. Upon the redemption by any Contributor of OpCo Common Units for Class A Common Stock, a corresponding number of shares of Class C Common Stock held by such Contributor will be cancelled.&lt;p>&lt;/p>&lt;/p>
Class A Common Stock
Transaction (Textual)
Aggregate common shares purchase price | $ / shares	$ 0.0001
Class A Common Stock | Contribution Agreement [Member]
Transaction (Textual)
Potentially receive up to an additional OpCo Common Units | shares	20,000,000
Private Placement [Member]
Transaction (Textual)
Aggregate common shares | shares	11,480,000
Aggregate common shares purchase price | $ / shares	$ 10
Aggregate common shares amount | $	$ 114,800

Oil and Natural Gas Interests_2

Oil and Natural Gas Interests (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Oil and natural gas interests:
Subject to depletion	$ 306,359	$ 463,571
Not subject to depletion	19,200	19,200
Gross oil and natural gas interests	325,559	482,771
Accumulated depletion and impairment	(113,823)	(155,855)
Less: Discontinued operations portion		(22,253)
Oil and natural gas interests, net	$ 211,736	$ 304,663

Oil and Natural Gas Interests_3

Oil and Natural Gas Interests (Details Textual) $ in Thousands	1 Months Ended
	Feb. 28, 2018USD ($)
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Unaffiliated third part for cash proceeds amount	$ 121,000
Realized gain amount	$ 41,300

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
First lien credit facility [Member]
Debt (Textual)
Borrowing base on credit facility		$ 57,000
Repayments of lines of credit		27,000
RNR credit facility [Member]
Debt (Textual)
Borrowing base on credit facility		$ 2,000
Borrowings interest rate, description		Borrowings are between 7% and 9% for LIBOR-based loans, and between 6% and 8% for Base Rate loans. The interest rate is based on the percentage of the borrowing based utilized.
Falcon Credit Facility [Member]
Debt (Textual)
Falcon's borrowing base amount	$ 115,000
Outstanding amount	$ 38,000
Borrowings interest rate, description	Principal amounts borrowed are payable on the maturity date. We have a choice of borrowing at the base rate or LIBOR, with such borrowings bearing interest, payable quarterly in arrears for base rate loans and one month, two-month, three month or six-month periods for LIBOR loans. LIBOR loans bear interest at a rate per annum equal to the rate appearing on the Reuters Reference LIBOR01 or LIBOR02 page as the LIBOR, for deposits in dollars at 12:00 noon (London, England time) for one, two, three, or six months plus an applicable margin ranging from 200 to 300 basis points. Base rate loans bear interest at a rate per annum equal to the greatest of (i) the agent bank’s reference rate, (ii) the federal funds effective rate plus 50 basis points and (iii) the rate for one-month LIBOR loans plus 1%, plus an applicable margin ranging from 100 to 200 basis points. The next scheduled redetermination of our borrowing base is on April 1, 2019.<p></p></p>" id="sjs-B15">&lt;p class="MsoNormal">Principal amounts borrowed are payable on the maturity date. We have a choice of borrowing at the base rate or LIBOR, with such borrowings bearing interest, payable quarterly in arrears for base rate loans and one month, two-month, three month or six-month periods for LIBOR loans. LIBOR loans bear interest at a rate per annum equal to the rate appearing on the Reuters Reference LIBOR01 or LIBOR02 page as the LIBOR, for deposits in dollars at 12:00 noon (London, England time) for one, two, three, or six months plus an applicable margin ranging from 200 to 300 basis points. Base rate loans bear interest at a rate per annum equal to the greatest of (i) the agent bank&#226;&#128;&#153;s reference rate, (ii) the federal funds effective rate plus 50 basis points and (iii) the rate for one-month LIBOR loans plus 1%, plus an applicable margin ranging from 100 to 200 basis points. The next scheduled redetermination of our borrowing base is on April 1, 2019.&lt;p>&lt;/p>&lt;/p>
Credit facility interest rate	4.62%
Drawn under credit agreement	$ 38,000
Amount incurred in closing of Credit Facility	3,200
Current borrowing base on available capacity under credit facility	$ 77,000
Description of maximum aggregate revolving borrowings	The Credit Facility initially provides for aggregate revolving borrowings of up to $500.0 million with an initial $115.0 million borrowing base and expires on the fifth anniversary of the Closing Date.<p></p></p>" id="sjs-B20">&lt;p class="MsoNormal">The Credit Facility initially provides for aggregate revolving borrowings of up to $500.0 million with an initial $115.0 million borrowing base and expires on the fifth anniversary of the Closing Date.&lt;p>&lt;/p>&lt;/p>

Shareholder's Equity and Divi_3

Shareholder's Equity and Dividends (Details)	9 Months Ended
	Sep. 30, 2018shares
Warrant [Member]
Issued at IPO in July 2017	13,750,000
Issued to founders	7,500,000
Issued in connection with private placement
Issued in connection with the Transaction
Class B conversion related to Transaction
Shares outstanding at September 30, 2018	21,250,000
Class A Common Stock [Member]
Issued at IPO in July 2017	27,500,000
Issued to founders
Issued in connection with private placement	11,480,000
Issued in connection with the Transaction
Class B conversion related to Transaction	6,875,000
Shares outstanding at September 30, 2018	45,855,000
Common Class B [Member]
Issued at IPO in July 2017
Issued to founders	6,875,000
Issued in connection with private placement
Issued in connection with the Transaction
Class B conversion related to Transaction	(6,875,000)
Shares outstanding at September 30, 2018
Class C Common Stock [Member]
Issued at IPO in July 2017
Issued to founders
Issued in connection with private placement
Issued in connection with the Transaction	40,000,000
Class B conversion related to Transaction
Shares outstanding at September 30, 2018	40,000,000

Shareholder's Equity and Divi_4

Shareholder's Equity and Dividends (Details 1) - Dividend Paid [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)$ / shares	[1]
Total Quarterly Dividend per Share | $ / shares	$ 0.0950
Total Cash Dividend | $	$ 4,356
Date of Dividend	Nov. 15, 2018
Class A Shareholders Record Date	Nov. 8, 2018
[1]	Initial pro rata dividend, prorated for the period from August 23, 2018 to September 30, 2018.

Shareholder's Equity and Divi_5

Shareholder's Equity and Dividends (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Shareholder's Equity and Dividends (Textual)
Preferred stock, par value	$ 0.0001		$ 0.0001
Preferred stock, shares authorized	1,000,000		1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common Stock are available for issuance	8,600
Distributions of non-controlling interest holders	$ 100	$ 100
Warrants [Member]
Shareholder's Equity and Dividends (Textual)
Warrant outstanding, shares	21,250,000		21,250,000
Warrants, description	Each warrant entitles the holder to purchase one share of Class A Common Stock at an exercise price of $11.50 per share, subject to adjustment pursuant to the terms of the warrant agreement. The warrants become exercisable on the later of (a) 30 days after the completion of a business combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of common stock issuable upon of the warrants and a current prospectus relating to them is available. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. The warrants expire five years from August 23, 2018, the date upon with the Transaction was closed, or earlier upon redemption or liquidation.
Business combination, description	In addition to the above, the Contributors will be entitled to receive earn-out consideration to be paid in the form of OpCo Common Units (with a corresponding number of shares of Class C common stock) if the volume-weighted average price of the trading days during any thirty (30) calendar days (the “30-Day VWAP”) of the Class A common stock equals or exceeds certain hurdles set forth in the Contribution Agreement. If the 30-Day VWAP of the Class A common stock is $12.50 or more per share at any time within the seven years following the closing, Royal LP will receive (i) an additional 10 million Op Co Common Units (and an equivalent number of shares of Class C common stock), plus (ii) an amount of OpCo Common Units (and an equivalent number of shares of Class C common stock) equal to (x) the amount by which annual cash dividends paid on each share of Class A common stock exceeds $0.50 in each year between the closing and the date the first earn-out is achieved (with any dividends paid in the stub year in which the first earn-out is achieved annualized for purposes of determining what portion of such dividends would have, on an annual basis, exceeded $0.50), multiplied by 10 million, (y) divided by $12.50. If the 30-Day VWAP of the Class A common stock is $15.00 or more per share at any time within the seven years following the closing (which $15.00 threshold will be reduced by the amount by which annual cash dividends paid on each share of Class A common stock exceeds $0.50 in each year between the closing and the date the earn-out is achieved, but not below $12.50), the Contributors will receive an additional 10 million OpCo Common Units (and an equivalent number of Class C common stock).
Stock issued common units to contributors	40,000,000
Class A Common Stock [Member]
Shareholder's Equity and Dividends (Textual)
Common stock, par value	$ 0.0001
Common stock, shares authorized	240,000,000
Common stock, shares issued	45,855,000
Common stock, shares outstanding	45,855,000
Common stock subject to possible redemption	0		26,140,754
Common stock voting, description	Holders of the Company’s Class A Common Stock are entitled to one vote for each share.
Common Class B [Member]
Shareholder's Equity and Dividends (Textual)
Common stock, par value	$ 0.0001		$ 0.0001
Common stock, shares authorized	0
Common stock, shares issued	0		6,875,000
Common stock, shares outstanding	0		6,875,000
Class C Common Stock [Member]
Shareholder's Equity and Dividends (Textual)
Common stock, par value	$ 0.0001
Common stock, shares authorized	120,000,000
Common stock, shares issued	40,000,000
Common stock, shares outstanding	40,000,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Earnings (loss) per common share:
Net income attributable to Class A shareholders	$ 2,529	$ 2,529
Weighted average common shares outstanding:
Basic weighted average common shares outstanding	45,855	45,855
Effect of dilutive securities:
Potential common shares issuable	40,000	40,000
Diluted weighted average common units outstanding	85,855	85,855
Net income per common share, basic	$ 0.06	$ 0.06
Net income per common share, diluted	$ 0.03	$ 0.03

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual)	9 Months Ended
	Sep. 30, 2018shares
Earnings Per Share (Textual)
Diluted net income per share excludes the effects of warrants to purchase shares of common stock	21,250,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 22, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Aug. 23, 2018	Dec. 31, 2017
Income Taxes (Textual)
Income tax expense		$ 810		$ 810
Deferred tax assets net of valuation allowances		60,600		60,600		$ 61,100
Prepayment of income taxes		$ 355,983		$ 355,983			$ 0
Description of federal corporate tax	(1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3) creating a new limitation on deductible interest expense; and (4) changing rules related to uses and limitations of NOL carryforwards created in tax years beginning after December 31, 2017.

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Sep. 30, 2018	Sep. 30, 2017
Promissory Note [Member]
Related Party Transactions (Textual)
Outstanding loan			$ 200
Promissory note due, description			The Promissory Note was non-interest bearing, unsecured and due on the earlier of December 31, 2017 or the closing of the Initial Public Offering.
Over-Allotment Option [Member]
Related Party Transactions (Textual)
Founder shares outstanding	6,875,000
Founder Shares [Member]
Related Party Transactions (Textual)
Issuance common stock to the sponsor		125,000
Aggregate purchase price		$ 25
Forfeiture of founder shares	312,500
Atlas Energy Group, LLC [Member]
Related Party Transactions (Textual)
Amount of related party transaction			$ 100	$ 0
Hepco Capital Management, LLC [Member]
Related Party Transactions (Textual)
Amount of related party transaction			$ 100	$ 0

Major Operators (Details)

Major Operators (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Percentage of revenues	88.00%	81.00%	84.00%	84.00%
Conoco Phillips [Member]
Percentage of revenues	58.00%	15.00%	41.00%	14.00%
EOG [Member]
Percentage of revenues	13.00%	18.00%	21.00%	16.00%
Devon [Member]
Percentage of revenues	13.00%	29.00%	16.00%	31.00%
BHP Billiton [Member]
Percentage of revenues	4.00%	19.00%	6.00%	23.00%

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2018USD ($)
Long-term debt obligations
Q4 2018
2,019
2,020
2,021
2,022
Thereafter	38,000
Total	38,000
Operating lease obligations
Q4 2018	52
2,019	209
2,020	209
2,021	209
2,022	17
Thereafter
Total	696
Total
Q4 2018	52
2,019	209
2,020	209
2,021	209
2,022	17
Thereafter	38,000
Total	$ 38,696

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		9 Months Ended
	Nov. 30, 2018	Oct. 31, 2018	Sep. 30, 2018
Subsequent Events (Textual)
Distributions to unitholders			$ 7,124
Subsequent Event [Member]
Subsequent Events (Textual)
Cash dividend of per share		$ 0.095
Total cash dividend		$ 4,400
Dividend payable date		Nov. 15, 2018
Dividend payable record date		Nov. 8, 2018
Dividends payable, description		The dividend is for the period from August 23, 2018 through September 30, 2018.
Distributions to unitholders	$ 8,800
Payment received from OpCo	$ 4,700