Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001792849 | |
Entity Registrant Name | HighPeak Energy, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39464 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-3533602 | |
Entity Address, Address Line One | 421 W. 3rd St., Suite 1000 | |
Entity Address, Postal Zip Code | 76102 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
City Area Code | 817 | |
Local Phone Number | 850-9200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,226,691 | |
Warrant [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase Common Stock | |
Trading Symbol | HPKEW | |
Security Exchange Name | NASDAQ | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | HPK | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 22,417,000 | $ 34,869,000 |
Accounts receivable | 90,235,000 | 39,378,000 |
Prepaid expenses | 19,072,000 | 7,154,000 |
Derivatives | 8,002,000 | 2,199,000 |
Inventory | 6,207,000 | 3,304,000 |
Deposits | 50,000 | 50,000 |
Total current assets | 145,983,000 | 86,954,000 |
Crude oil and natural gas properties, using the successful efforts method of accounting: | ||
Proved properties | 1,479,748,000 | 699,701,000 |
Unproved properties | 250,595,000 | 108,392,000 |
Accumulated depletion, depreciation and amortization | (134,261,000) | (82,478,000) |
Total crude oil and natural gas properties, net | 1,596,082,000 | 725,615,000 |
Other property and equipment, net | 2,473,000 | 1,600,000 |
Other noncurrent assets | 4,234,000 | 4,791,000 |
Total assets | 1,748,772,000 | 818,960,000 |
Current liabilities: | ||
Accounts payable - trade | 101,990,000 | 38,144,000 |
Accrued liabilities | 104,211,000 | 32,230,000 |
Derivatives | 39,911,000 | 13,591,000 |
Revenues and royalties payable | 14,150,000 | 7,502,000 |
Advances from joint interest owners | 2,880,000 | 10,841,000 |
Other current liabilities | 8,977,000 | 692,000 |
Total current liabilities | 272,119,000 | 103,000,000 |
Noncurrent liabilities: | ||
Long-term debt, net | 488,532,000 | 97,929,000 |
Deferred income taxes | 79,562,000 | 55,802,000 |
Asset retirement obligations | 8,055,000 | 4,260,000 |
Derivatives | 0 | 4,075,000 |
Other | 116,000 | 831,000 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at June 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.0001 par value, 600,000,000 shares authorized, 109,226,591 and 96,774,185 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 11,000 | 10,000 |
Additional paid-in capital | 909,325,000 | 617,489,000 |
Accumulated deficit | (8,948,000) | (64,436,000) |
Total stockholders' equity | 900,388,000 | 553,063,000 |
Total liabilities and stockholders' equity | $ 1,748,772,000 | $ 818,960,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited)-parentheticals (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 109,226,591 | 96,774,185 |
Common stock, shares outstanding (in shares) | 109,226,591 | 96,774,185 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Revenues: | ||||
Operating revenues | $ 201,428,000 | $ 48,270,000 | $ 293,657,000 | $ 73,987,000 |
Operating Costs and Expenses: | ||||
Crude oil and natural gas production | 16,595,000 | 4,692,000 | 26,041,000 | 6,919,000 |
Production and ad valorem taxes | 10,301,000 | 2,543,000 | 15,307,000 | 4,207,000 |
Exploration and abandonments | 184,000 | 463,000 | 393,000 | 654,000 |
Depletion, depreciation and amortization | 34,883,000 | 16,857,000 | 51,907,000 | 29,820,000 |
Accretion of discount | 66,000 | 37,000 | 120,000 | 72,000 |
General and administrative | 2,016,000 | 1,617,000 | 3,956,000 | 3,376,000 |
Stock-based compensation | 14,579,000 | 1,023,000 | 18,555,000 | 1,989,000 |
Total operating costs and expenses | 78,624,000 | 27,232,000 | 116,279,000 | 47,037,000 |
Income from operations | 122,804,000 | 21,038,000 | 177,378,000 | 26,950,000 |
Interest and other income | 2,000 | 0 | 252,000 | 1,000 |
Interest expense | (9,282,000) | (152,000) | (14,534,000) | (206,000) |
Derivative loss, net | (11,891,000) | (13,596,000) | (78,285,000) | (13,596,000) |
Other expense | 0 | (127,000) | 0 | (127,000) |
Income before income taxes | 101,633,000 | 7,163,000 | 84,811,000 | 13,022,000 |
Income tax expense | 24,072,000 | 1,420,000 | 23,760,000 | 2,535,000 |
Earnings (loss) per share: | ||||
Net income | $ 77,561,000 | $ 5,743,000 | $ 61,051,000 | $ 10,487,000 |
Basic net income (in dollars per share) | $ 0.69 | $ 0.06 | $ 0.56 | $ 0.11 |
Diluted net income (in dollars per share) | $ 0.64 | $ 0.06 | $ 0.52 | $ 0.10 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 103,178 | 92,676 | 99,530 | 92,634 |
Diluted (in shares) | 111,228 | 92,676 | 106,843 | 92,830 |
Dividends declared per share (in dollars per share) | $ 0.025 | $ 0 | $ 0.05 | $ 0 |
Crude Oil Sales [Member] | ||||
Operating Revenues: | ||||
Operating revenues | $ 190,926,000 | $ 46,985,000 | $ 277,864,000 | $ 71,855,000 |
Natural Gas and NGL Sales [Member] | ||||
Operating Revenues: | ||||
Operating revenues | $ 10,502,000 | $ 1,285,000 | $ 15,793,000 | $ 2,132,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Outside Directors [Member] | Employee Directors [Member] | Total |
Balance (in shares) | 91,968,000 | |||||
Balance | $ 9,000 | $ 581,426,000 | $ (107,209,000) | $ 474,226,000 | ||
Balance (in shares) at Dec. 31, 2020 | 91,968,000 | |||||
Balance at Dec. 31, 2020 | $ 9,000 | 581,426,000 | (107,209,000) | 474,226,000 | ||
Exercise of warrants (in shares) | 554,000 | |||||
Exercise of warrants | $ 0 | 5,466,000 | 0 | 5,466,000 | ||
Shares issued upon options being exercised (in shares) | 154,000 | |||||
Shares issued upon options being exercised | $ 0 | 1,574,000 | 0 | 1,574,000 | ||
Compensation costs included in net income | 0 | 966,000 | 0 | 966,000 | ||
Net income (loss) | $ 0 | 0 | 4,744,000 | 4,744,000 | ||
Balance (in shares) at Mar. 31, 2021 | 92,676,000 | |||||
Balance at Mar. 31, 2021 | $ 9,000 | 589,432,000 | (102,465,000) | 486,976,000 | ||
Balance (in shares) at Dec. 31, 2020 | 91,968,000 | |||||
Balance at Dec. 31, 2020 | $ 9,000 | 581,426,000 | (107,209,000) | 474,226,000 | ||
Net income (loss) | 10,487,000 | |||||
Balance (in shares) at Jun. 30, 2021 | 92,729,000 | |||||
Balance at Jun. 30, 2021 | $ 9,000 | 590,455,000 | (96,722,000) | 493,742,000 | ||
Balance (in shares) at Dec. 31, 2020 | 91,968,000 | |||||
Balance at Dec. 31, 2020 | $ 9,000 | 581,426,000 | (107,209,000) | $ 474,226,000 | ||
Shares issued upon options being exercised (in shares) | 154,268 | |||||
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||
Balance at Dec. 31, 2021 | $ 10,000 | 617,489,000 | (64,436,000) | $ 553,063,000 | ||
Balance (in shares) | 92,676,000 | |||||
Balance | $ 9,000 | 589,432,000 | (102,465,000) | 486,976,000 | ||
Balance (in shares) at Mar. 31, 2021 | 92,676,000 | |||||
Balance at Mar. 31, 2021 | $ 9,000 | 589,432,000 | (102,465,000) | 486,976,000 | ||
Compensation costs included in net income | 0 | 1,023,000 | 0 | 1,023,000 | ||
Net income (loss) | $ 0 | 0 | 5,743,000 | 5,743,000 | ||
Restricted shares issued to outside directors (in shares) | 53,000 | |||||
Balance (in shares) at Jun. 30, 2021 | 92,729,000 | |||||
Balance at Jun. 30, 2021 | $ 9,000 | 590,455,000 | (96,722,000) | 493,742,000 | ||
Restricted shares issued | $ 0 | 0 | 0 | $ 0 | ||
Balance (in shares) | 92,729,000 | |||||
Balance | $ 9,000 | 590,455,000 | (96,722,000) | 493,742,000 | ||
Balance (in shares) | 96,774,000 | |||||
Balance | $ 10,000 | 617,489,000 | (64,436,000) | 553,063,000 | ||
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||
Balance at Dec. 31, 2021 | $ 10,000 | 617,489,000 | (64,436,000) | 553,063,000 | ||
Exercise of warrants (in shares) | 69,000 | |||||
Exercise of warrants | $ 0 | 779,000 | 0 | 779,000 | ||
Dividends declared | $ 0 | 0 | (2,434,000) | (2,434,000) | ||
Shares issued upon options being exercised (in shares) | 8,000 | |||||
Shares issued upon options being exercised | $ 0 | 75,000 | 0 | 75,000 | ||
Dividend equivalents declared on outstanding stock options | 0 | 0 | (250,000) | (250,000) | ||
Compensation costs included in net income | $ 0 | 2,614,000 | 0 | 2,614,000 | ||
Stock issued for acquisition (in shares) | 6,960,000 | |||||
Stock issued for acquisition | $ 0 | 156,599,000 | 0 | 156,599,000 | ||
Net income (loss) | 0 | 0 | (16,510,000) | (16,510,000) | ||
Stock issuance costs | $ 0 | (55,000) | 0 | (55,000) | ||
Balance (in shares) at Mar. 31, 2022 | 103,811,000 | |||||
Balance at Mar. 31, 2022 | $ 10,000 | 777,501,000 | (83,630,000) | 693,881,000 | ||
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||
Balance at Dec. 31, 2021 | $ 10,000 | 617,489,000 | (64,436,000) | $ 553,063,000 | ||
Shares issued upon options being exercised (in shares) | 12,000 | |||||
Net income (loss) | $ 61,051,000 | |||||
Balance (in shares) at Jun. 30, 2022 | 109,227,000 | |||||
Balance at Jun. 30, 2022 | $ 11,000 | 909,325,000 | (8,948,000) | 900,388,000 | ||
Balance (in shares) | 103,811,000 | |||||
Balance | $ 10,000 | 777,501,000 | (83,630,000) | 693,881,000 | ||
Balance (in shares) at Mar. 31, 2022 | 103,811,000 | |||||
Balance at Mar. 31, 2022 | $ 10,000 | 777,501,000 | (83,630,000) | 693,881,000 | ||
Exercise of warrants (in shares) | 897,000 | |||||
Exercise of warrants | $ 0 | 6,971,000 | 0 | 6,971,000 | ||
Dividends declared | $ 0 | 0 | (2,630,000) | (2,630,000) | ||
Shares issued upon options being exercised (in shares) | 4,000 | |||||
Shares issued upon options being exercised | $ 0 | 45,000 | 0 | 45,000 | ||
Dividend equivalents declared on outstanding stock options | 0 | 0 | (249,000) | (249,000) | ||
Compensation costs included in net income | $ 0 | 16,429,000 | 0 | 16,429,000 | ||
Stock issued for acquisition (in shares) | 3,894,000 | |||||
Stock issued for acquisition | $ 1,000 | 108,382,000 | 0 | 108,383,000 | ||
Net income (loss) | 0 | 0 | 77,561,000 | 77,561,000 | ||
Stock issuance costs | $ 0 | (3,000) | 0 | (3,000) | ||
Restricted shares issued to outside directors (in shares) | 21,000 | 600,000 | ||||
Balance (in shares) at Jun. 30, 2022 | 109,227,000 | |||||
Balance at Jun. 30, 2022 | $ 11,000 | 909,325,000 | (8,948,000) | 900,388,000 | ||
Restricted shares issued | $ 0 | $ 0 | ||||
Balance (in shares) | 109,227,000 | |||||
Balance | $ 11,000 | $ 909,325,000 | $ (8,948,000) | $ 900,388,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)-parentheticals (Parentheticals) - $ / shares | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | |
Dividends declared per share (in dollars per share) | $ 0.025 | $ 0.025 |
Dividend equivalents declared, per share (in dollars per share) | 0.025 | 0.025 |
Dividends declared, per share (in dollars per share) | 0.025 | 0.025 |
Dividend equivalents declared, per share (in dollars per share) | $ 0.025 | $ 0.025 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 61,051,000 | $ 10,487,000 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Exploration and abandonment expense | 32,000 | 369,000 |
Depletion, depreciation and amortization expense | 51,907,000 | 29,820,000 |
Accretion expense | 120,000 | 72,000 |
Stock-based compensation expense | 18,555,000 | 1,989,000 |
Amortization of debt issuance costs | 1,781,000 | 77,000 |
Amortization of original issue discount on senior notes | 2,741,000 | 0 |
Derivative-related activity | 16,442,000 | 12,558,000 |
Deferred income taxes | 23,760,000 | 2,535,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (50,857,000) | (16,064,000) |
Prepaid expenses, inventory and other assets | (2,571,000) | (366,000) |
Accounts payable, accrued liabilities and other current liabilities | 25,225,000 | 5,803,000 |
Net cash provided by operating activities | 148,186,000 | 47,280,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to crude oil and natural gas properties | (403,177,000) | (89,959,000) |
Changes in working capital associated with crude oil and natural gas property additions | 105,476,000 | 15,223,000 |
Acquisitions of crude oil and natural gas properties | (250,448,000) | (2,070,000) |
Other property additions | (996,000) | (61,000) |
Net cash used in investing activities | (549,145,000) | (76,867,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of senior unsecured notes, net of discount | 210,179,000 | 0 |
Borrowings under revolving credit facility | 380,000,000 | 14,000,000 |
Repayments under revolving credit facility | (195,000,000) | 0 |
Debt issuance costs | (9,098,000) | (1,759,000) |
Proceeds from exercises of warrants | 7,750,000 | 5,466,000 |
Proceeds from subscription receivable from exercises of warrants | 0 | 3,596,000 |
Proceeds from exercises of stock options | 120,000 | 1,574,000 |
Dividends paid | (4,959,000) | 0 |
Dividend equivalents paid | (427,000) | 0 |
Stock offering costs | (58,000) | 0 |
Net cash provided by financing activities | 388,507,000 | 22,877,000 |
Net increase (decrease) in cash and cash equivalents | (12,452,000) | (6,710,000) |
Cash and cash equivalents, beginning of period | 34,869,000 | 19,552,000 |
Cash and cash equivalents, end of period | 22,417,000 | 12,842,000 |
Supplemental disclosure of non-cash transactions: | ||
Interest paid | 1,689,000 | 133,000 |
Income taxes paid | 0 | 0 |
Stock issued for acquisition | 264,982,000 | 0 |
Additions to asset retirement obligations | $ 3,676,000 | $ 600,000 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | NOTE 1. Organization and Nature of Operations HighPeak Energy, Inc. ("HighPeak Energy" or the "Company,") is a Delaware corporation, formed in October 2019. See the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding the formation of the Company. HighPeak Energy’s common stock and warrants are listed and traded on the Nasdaq Global Market (the "Nasdaq") under the ticker symbols “HPK” and “HPKEW,” respectively. HighPeak Energy’s Contingent Value Rights (“CVRs”) are currently traded on the Over-The-Counter market under the ticker symbol “HPKER.” The Company is an independent crude oil and natural gas exploration and production company that explores for, develops and produces crude oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin in Howard and Borden Counties. Our acreage is composed of two core areas, Flat Top in the northern portion of Howard County extending into southern Borden County and Signal Peak in the southern portion of Howard County. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 2. Basis of Presentation and Summary of Significant Accounting Policies Presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim condensed consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Principles of consolidation. Use of estimates in the preparation of financial statements. Cash and cash equivalents. Accounts receivable. zero zero Concentration of credit risk. Prepaid expenses. Inventory. not Crude oil and natural gas properties. The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. Due to the capital-intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project’s feasibility is not contingent upon price improvements or advances in technology, but rather the Company’s ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies’ production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company’s assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note 6 for additional information. The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved developed reserves for drilling, completion and other crude oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined. Proceeds from the sales of individual properties are credited to proved or unproved oil and natural gas properties, as the case may be, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base. The Company performs assessments of its long-lived assets to be held and used, including proved crude oil and natural gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Unproved crude oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the estimates of future recoverable reserves, results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are not expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time. Other property and equipment, net. June 30, 2022 December 31, 2021 Land $ 1,122 $ 1,122 Transportation equipment 609 202 Buildings 532 — Leasehold improvements 161 143 Information technology 42 125 Field equipment 7 8 Total other property and equipment, net $ 2,473 $ 1,600 Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is not depreciated. Transportation equipment is generally depreciated over five forty seven three The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method. Aid-in-construction assets. Debt issuance costs and original issue discount. zero Leases. Current liabilities. Asset retirement obligations. Revenue recognition . The Company enters into contracts with purchasers to sell its crude oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the crude oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the crude oil and natural gas marketing contracts is typically received from the purchaser one two Crude Oil Contracts. Natural Gas Contracts. The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Derivatives. The Company’s credit risk related to derivatives is a counterparties’ failure to perform under derivative contracts owed to the Company. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company’s credit risk policies and procedures. The Company has entered into International Swap Dealers Association Master Agreements (“ISDA Agreements”) with each of its derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with rights of set off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See Note 5 for additional information. Income taxes. The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all the deferred tax assets will not be realized. The Company had not established a valuation allowance as of June 30, 2022 and December 31, 2021. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company’s deferred tax liability and will affect the Company’s effective tax rate in the period it is recognized. See Note 13 for additional information. The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the consolidated statements of operations of which there have been none The Company is also subject to Texas Margin Tax. The Company realized no Texas Margin Tax in the accompanying consolidated financial statements as we do not anticipate owing any Texas Margin Tax for the periods presented. Stock-based compensation. Stock-based compensation for HighPeak Energy common stock issued to outside directors with no restrictions thereon, is measured at the grant date using the fair value of the award and is recognized as stock-based compensation in the accompanying financial statements immediately. Stock-based compensation for restricted stock awarded to outside directors, employee members of the board of directors and certain other employees is measured at the grant date using the fair value of the award and is recognized on a straight-line basis over the requisite service period of the respective award. Segments. one Impact of the COVID-19 Pandemic. Recently adopted accounting pronouncements. New accounting pronouncements not yet adopted. The Company considers the applicability and the impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, the effects of adoption are not expected to be material or are clarifications of ASUs previously disclosed. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Acquisitions [Text Block] | NOTE 3. Acquisitions Acquisitions. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 4. Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three input levels of the fair value hierarchy are as follows: ● Level 1 – quoted prices for identical assets or liabilities in active markets. ● Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 – unobservable inputs for the asset or liability, typically reflecting management’s estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models. Assets and liabilities measured at fair value on a recurring basis. As of June 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Commodity price derivatives $ — $ 8,002 $ — $ 8,002 Liabilities: Commodity price derivatives — 39,911 — 39,911 Total recurring fair value measurements $ — $ (31,909 ) $ — $ (31,909 ) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Commodity price derivatives $ — $ 2,199 $ — $ 2,199 Liabilities: Commodity price derivatives – current — 13,591 — 13,591 Commodity price derivatives – noncurrent — 4,075 — 4,075 Total liabilities — 17,666 — 17,666 Total recurring fair value measurements $ — $ (15,467 ) $ — $ (15,467 ) Commodity price derivatives. Assets and liabilities measured at fair value on a nonrecurring basis. Financial instruments not carried at fair value. As of June 30, 2022 As of December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 22,417 $ 22,417 $ 34,869 $ 34,869 Liabilities: Long-term debt: Senior Notes (a) $ 225,000 $ 225,000 $ — $ — (a) Fair value is determined using Level 2 inputs. The Company’s senior unsecured notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 7 for additional information. The Company has other financial instruments consisting primarily of accounts receivable, accounts payable, long-term debt, specifically the revolving credit facility, and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities. |
Note 5 - Derivative Financial I
Note 5 - Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 5. Derivative Financial Instruments The Company primarily utilizes commodity swap contracts to (i) reduce the effect of price volatility on the commodities the Company produces and sells, and (ii) support the Company’s capital budgeting and expenditure plans, (iii) protect the Company’s borrowing base under its Revolving Credit Facility, (iv) adhere to the hedge obligations included in the senior unsecured notes and (v) support the payment of contractual obligations. The following table summarizes the effect of derivatives on the Company’s consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Noncash derivative gain (loss), net $ 25,191 $ (12,558 ) $ (16,442 ) $ (12,558 ) Derivative settlements, net (37,082 ) (1,038 ) (61,843 ) (1,038 ) Derivative loss, net $ (11,891 ) $ (13,596 ) $ (78,285 ) $ (13,596 ) Crude oil production derivatives. The Company’s outstanding crude oil derivative contracts as of June 30, 2022 and the weighted average crude oil prices per barrel for those contracts are as follows: Remainder of 2022 2023 Third Fourth First Second Quarter Quarter Total Quarter Quarter Total Crude Oil Price Swaps - WTI: Volume (MBbls) 980.8 1,011.8 1,992.6 441.0 200.2 641.2 Price per Bbl $ 88.97 $ 86.13 $ 87.53 $ 70.05 $ 57.22 $ 66.04 Natural gas production derivatives. The Company’s outstanding natural gas derivative contracts as of June 30, 2022 and the weighted average natural gas prices per MMBtu for those contracts are as follows: Remainder of 2022 2023 Third Fourth First Quarter Quarter Total Quarter Total Natural Gas Price Swaps - HH: Volume (MMBtu) 460.0 460.0 920.0 450.0 450.0 Price per MMBtu $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 The Company uses credit and other financial criteria to evaluate the credit standings of, and to select, counterparties to its derivative financial instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative financial instruments, associated credit risk is mitigated by the Company’s credit risk policies and procedures. Net derivative liabilities associated with the Company’s open commodity derivatives by counterparty are as follows (in thousands): As of June 30, 2022 Fifth Third Bank, National Association $ (22,656 ) Bank of America, National Association (9,643 ) Bank of Oklahoma, National Association (3,668 ) Citizens Bank, National Association 4,058 $ (31,909 ) |
Note 6 - Exploratory Well Costs
Note 6 - Exploratory Well Costs | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Exploratory Well Costs [Text Block] | NOTE 6. Exploratory Well Costs The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense. The changes in capitalized exploratory well costs are as follows (in thousands): Six Months Ended June 30, 2022 Beginning capitalized exploratory well costs $ 28,076 Additions to exploratory well costs 161,331 Reclassification to proved properties (177,720 ) Exploratory well costs charged to exploration and abandonment expense — Ending capitalized exploratory well costs $ 11,687 All capitalized exploratory well costs have been capitalized for less than one |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 7. Long-Term Debt The components of long-term debt, including the effects of debt issuance costs, are as follows (in thousands): June 30, 2022 December 31, 2021 Revolving Credit Facility due 2024 $ 285,000 $ 100,000 10.00% Senior Notes due 2024 225,000 — Debt issuance costs, net (a) (9,388 ) (2,071 ) Discounts, net (b) (12,080 ) — Total debt 488,532 97,929 Less current portion of long-term debt — — Long-term debt, net $ 488,532 $ 97,929 (a) Debt issuance costs as of June 30, 2022 and December 31, 2021 consisted of $11.7 million and $2.6 million, respectively, in costs less accumulated amortization of $2.3 million and $502,000, respectively. (b) Discounts as of June 30, 2022 and December 31, 2021 consisted of $14.8 million and zero, zero, Revolving Credit Facility The borrowing capacity under the Revolving Credit Facility is equal to the lowest of (i) the borrowing base (which stands at $400.0 million as of June 30, 2022), (ii) the aggregate elected commitments (which stand at $400.0 million as of June 30, 2022) and (iii) $1.5 billion. As of June 30, 2022 and December 31, 2021, the Company had $285.0 million and $100.0 million, respectively, outstanding borrowings under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility prior to February 2022 bore interest, at the option of the Company, based on (a) a rate per annum equal to the higher of (i) the prime rate announced from time to time by Fifth Third, (ii) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 0.5 percent and (iii) the Adjusted LIBO Rate for one-month Interest Period, plus a margin (the “Applicable Margin”) which was determined by the Borrowing Base Utilization Percentage as defined in the Revolving Credit Facility or (b) the LIBO Rate for a one, three or six month Interest Period multiplied by the Statutory Reserve Rate. As of February 2022, borrowings under the Revolving Credit Facility bear interest at the option of the Company, based on (a) the prime rate announced from time to time by Fifth Third or (b) a rate equal to the higher of (i) zero percent per annum and (ii) SOFR relating to quotations for 1 or 3 months. Letters of credit outstanding under the Revolving Credit Facility are subject to a per annum fee, representing the Applicable Margin plus 0.125 percent. The Company also pays commitment fees on undrawn amounts under the Revolving Credit Facility equal to 0.50 percent. Borrowings under the Revolving Credit Facility are secured by a first lien security interest on substantially all assets of the Company and its restricted subsidiaries, including mortgages on the Company’s and its restricted subsidiaries’ crude oil and natural gas properties. The Revolving Credit Facility is scheduled to have the borrowing base redetermined semiannually in April and October. Additionally, the Company and Fifth Third each have the option for a wild card evaluation between redeterminations. The Revolving Credit Facility requires the maintenance of a ratio of total debt to EBITDAX, subject to certain adjustments, not to exceed 3.00 to 1.00 as of the last day of any fiscal quarter and a current ratio, subject to certain adjustments, of at least 1.00 to 1.00 as of the last day of any fiscal quarter. The Company has limited equity cure rights for a breach of the above-listed financial covenants. Additionally, the Revolving Credit Facility contains additional restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, incur additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain hedging transactions, sell assets and engage in transactions with affiliates. The Revolving Credit Facility contains customary mandatory prepayments, including a monthly mandatory prepayment if the Consolidated Cash Balance (as defined in the Credit Agreement) is in excess of $75.0 million. In addition, the Credit Agreement is subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the administrative agent or the majority of the lenders may accelerate any amounts outstanding and terminate lender commitments. Senior Notes. zero Both the Revolving Credit Facility and the Senior Notes have hedging obligations that the Company adheres to. |
Note 8 - Asset Retirement Oblig
Note 8 - Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 8. Asset Retirement Obligations The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations. Asset retirement obligations activity is as follows (in thousands): Six Months Ended June 30, 2022 Beginning asset retirement obligations $ 4,260 Liabilities incurred from wells acquired 3,218 Liabilities incurred from new wells 457 Accretion of discount 120 Ending asset retirement obligations $ 8,055 As of June 30, 2022 and December 31, 2021, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheets. |
Note 9 - Incentive Plans
Note 9 - Incentive Plans | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 9. Incentive Plans 401(k) Plan. three four Long-Term Incentive Plan. June 30, 2022 Approved and authorized awards 13,793,197 Awards issued under plan (13,048,190 ) Awards available for future grant 745,007 Stock Options. two The Company estimates the fair value of stock options granted on the grant date using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the simplified method of the midpoint between the vesting dates and the contractual term of the options. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant and the volatility was based on the volatility of either an index of exploration and production crude oil and natural gas companies or on a peer group of companies with similar characteristics of the Company on the date of grant since the Company had minimal or did not have any trading history. More detailed stock options activity and details are as follows: Stock Options Exercise Price Remaining Term in Years Intrinsic Value (in thousands) Outstanding at December 31, 2020 9,705,495 $ 10.00 9.7 $ 57,942 Awards granted 442,500 $ 14.36 Exercised (154,268 ) $ 10.00 Forfeitures (10,000 ) $ 10.00 Outstanding at December 31, 2021 9,983,727 $ 10.19 8.7 $ 44,395 Awards granted 824,500 $ 29.67 Exercised (12,000 ) $ 10.00 Outstanding at June 30, 2022 10,796,227 $ 11.68 8.3 $ 152,316 Vested at December 31, 2021 8,551,070 $ 10.13 8.7 $ 38,556 Exercisable at December 31, 2021 8,551,070 $ 10.13 8.7 $ 38,556 Vested at June 30, 2022 9,268,914 $ 11.67 8.3 $ 103,055 Exercisable at June 30, 2022 9,268,914 $ 11.67 8.3 $ 103,055 Restricted Stock Issued to Employee Members of the Board. three-year Stock Issued to Outside Directors. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 10. Commitments and Contingencies Leases. June 30, 2022 Remainder of 2022 $ 257 2023 349 Total lease payments 606 Less present value discount (15 ) Present value of lease liabilities $ 591 Legal actions. Indemnifications. Environmental. Crude oil delivery commitments. eight Natural gas purchasing replacement contract. Power contracts. Also in June 2021, the Company entered into a contract with Oncor Electric Delivery Company, LLC (“Oncor”) to construct certain facilities to deliver electricity to the aforementioned substation. In conjunction with this contract, the Company issued a $1.9 million letter of credit to Oncor until such time as the Company’s load meets or exceeds 12 megawatts as measured during any fifteen (15) minute interval on or before May 20, 2023. Finally, in June 2022, the Company entered into a contract with TXU Energy Retail Company LLC (“TXU”) to provide a block of electric power via the aforementioned transmission system at an attractive variable rate, which fluctuates based on the usage by the Company through May 31, 2032. In conjunction with this contract, the Company issued a $1.7 million letter of Credit in lieu of a deposit to TXU that is cancellable at the end of the contract term. Sand commitments. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 11. Related Party Transactions Water Treatment. In May 2022, the Company entered into an agreement with Pilot to utilize Pilot’s proprietary water treatment technology in the Company’s Flat Top area to treat produced water such that it can be reused in the Company’s completion operations or sold to third parties for their completion operations. During the one-year term of the agreement, beginning no later than October 1, 2022, the Company has agreed to a minimum volume commitment of 29.2 million barrels of produced water while maintaining the ability to bank excess produced water processed each month toward the minimum volume commitment. The monetary commitment, if the Company never delivers any produced water to be treated under the agreement, is approximately $6.0 million. |
Note 12 - Major Customers
Note 12 - Major Customers | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 12. Major Customers Lion Oil Trading and Transportation, LLC (“Lion”) accounted for approximately 88% and 95% of the Company’s revenues during the six months ended June 30, 2022 and 2021, respectively. Based on the current demand for crude oil and natural gas and the availability of other purchasers, management believes the loss of this major purchaser would not have a material adverse effect on our financial condition and results of operations because crude oil and natural gas are fungible products with well-established markets and numerous purchasers. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 13. Income Taxes The Company’s income tax expense attributable to income from operations consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Current income tax expense: Federal $ — $ — $ — $ — State — — — — Total current income tax expense — — — — Deferred income tax expense: Federal 23,315 1,420 23,127 2,535 State 757 — 633 — Deferred income tax expense 24,072 1,420 23,760 2,535 Total income tax expense $ 24,072 $ 1,420 $ 23,760 $ 2,535 The reconciliation between the income tax expense computed by multiplying pre-tax income by the U.S. federal statutory rate and the reported amounts of income tax expense is as follows (in thousands, except rate): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Income tax expense at U.S. federal statutory rate $ 21,343 $ 1,505 $ 17,810 $ 2,735 Limited tax benefit due to stock-based compensation 1,930 28 5,536 (81 ) State deferred income taxes 848 — 724 — Other, net (49 ) (113 ) (310 ) (119 ) Income tax expense $ 24,072 $ 1,420 $ 23,760 $ 2,535 Effective income tax rate 23.7 % 19.8 % 28.0 % 19.5 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Deferred tax assets: Unrecognized derivative losses $ 6,890 $ 3,248 Net operating loss carryforwards 4,037 2,870 Interest expense limitations 3,052 — Stock-based compensation 2,629 4,373 Other 97 31 Deferred tax assets 16,705 10,522 Deferred tax liabilities: Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes (96,267 ) (66,324 ) Net deferred tax liabilities $ (79,562 ) $ (55,802 ) The effective income tax rate differs from the U.S. statutory rate of 21 percent primarily due to reversing a portion of its deferred tax asset related to stock-based compensation, deferred state income taxes and other permanent differences between GAAP income and taxable income. As required by ASC Topic 740, “Income Taxes,” (“ASC 740”) the Company uses reasonable judgments and makes estimates and assumptions related to evaluating the probability of uncertain tax positions. The Company bases its estimates and assumptions on the potential liability related to an assessment of whether the income tax position will “more likely than not” be sustained in an income tax audit. Based on that analysis, the Company believes the Company has not taken any material uncertain tax positions, and therefore has not recorded an income tax liability related to uncertain tax positions. However, if actual results materially differ, the Company’s effective income tax rate and cash flows could be affected in the period of discovery or resolution. The Company also reviews the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company’s deferred tax assets and records a valuation allowance when the Company believes that a portion or all the deferred tax assets may not be realized. If the Company is unable to realize the expected future benefits of its deferred tax assets, the Company is required to provide a valuation allowance. The Company uses its history and experience, overall profitability, future management plans, tax planning strategies, and current economic information to evaluate the amount of valuation allowance to record. As of June 30, 2022 and December 31, 2021, the Company had not The Company is also subject to Texas Margin Tax. The Company realized no current Texas Margin Tax in the accompanying consolidated financial statements as we do not anticipate owing any Texas Margin Tax for 2022 or 2021. However, the Company has recognized a deferred Texas Margin Tax liability of $2.5 million and $1.8 million as of June 30, 2022 and December 31, 2021, respectively, in the accompanying consolidated financial statements. |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 14. Earnings Per Share The Company uses the two-class method of calculating earnings per share because certain of the Company’s stock-based awards qualify as participating securities. The Company’s basic earnings per share attributable to common stockholders is computed as (i) net income as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding. The following table reconciles the Company’s earnings from operations and earnings attributable to common stockholders to the basic and diluted earnings used to determine the Company’s earnings per share amounts for the three and six months ended June 30, 2022 and 2021 under the two-class method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income as reported $ 77,561 $ 5,743 $ 61,051 $ 10,487 Participating basic earnings (a) (6,376 ) (407 ) (5,169 ) (743 ) Basic earnings attributable to common stockholders 71,185 5,336 55,882 9,744 Reallocation of participating earnings 162 — 124 1 Diluted net income attributable to common stockholders $ 71,347 $ 5,336 $ 55,006 $ 9,745 Basic weighted average shares outstanding 103,178 92,676 99,530 92,634 Dilutive warrants and unvested stock options 5,928 — 5,191 196 Dilutive unvested restricted stock 2,122 — 2,122 — Diluted weighted average shares outstanding 111,228 92,676 106,843 92,830 (a) Certain unvested restricted stock awarded to outside directors represent participating securities because they participate in nonforfeitable dividends with the common equity holders of the Company. Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Certain unvested restricted stock awarded to outside directors, employee members of the board of directors and certain employees do not represent participating securities because, while they participate in dividends with the common equity holders of the Company, the dividends associated with such unvested restricted stock are forfeitable in connection with the forfeitability of the underlying restricted stock. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options. The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding. |
Note 15 - Stockholders' Equity
Note 15 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 15. Stockholders Equity Issuance of Common Stock. (965,588 (12,000 Dividends and dividend equivalents. In January 2022, the board of directors of the Company approved a quarterly dividend of $0.025 per share of common stock outstanding which resulted in a total of $2.4 million in dividends being paid on February 25, 2022. In addition, under the terms of the LTIP, the Company paid a dividend equivalent per share to all vested stock option holders and accrued a dividend equivalent per share to all unvested stock option holders payable upon vesting, which equates to a total payment of $214,000 in February 2022 and up to an additional $36,000, assuming no forfeitures. In addition, the Company accrued an additional combined $53,000 in dividends on the restricted stock issued to management directors and certain employees that will be payable upon vesting. Outstanding Securities. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 16. Subsequent Events Dividends and dividend equivalents. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Presentation. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates in the preparation of financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents. |
Accounts Receivable [Policy Text Block] | Accounts receivable. zero zero |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of credit risk. |
Prepaid Expense [Policy Text Block] | Prepaid expenses. |
Inventory, Policy [Policy Text Block] | Inventory. not |
Industry-Specific Policies, Oil and Gas [Policy Text Block] | Crude oil and natural gas properties. |
Property, Plant and Equipment, Policy [Policy Text Block] | Other property and equipment, net. June 30, 2022 December 31, 2021 Land $ 1,122 $ 1,122 Transportation equipment 609 202 Buildings 532 — Leasehold improvements 161 143 Information technology 42 125 Field equipment 7 8 Total other property and equipment, net $ 2,473 $ 1,600 five forty seven three |
Other Non-current Assets, Aid-in-Construction Assets, Policy [Policy Text Block] | Aid-in-construction assets. |
Debt, Policy [Policy Text Block] | Debt issuance costs and original issue discount. zero |
Lessee, Leases [Policy Text Block] | Leases. |
Accounts Payable and Accrued Liabilities, Policy [Policy Text Block] | Current liabilities. |
Asset Retirement Obligation [Policy Text Block] | Asset retirement obligations. |
Revenue from Contract with Customer [Policy Text Block] | Revenue recognition . one two Crude Oil Contracts. Natural Gas Contracts. |
Derivatives, Policy [Policy Text Block] | Derivatives. |
Income Tax, Policy [Policy Text Block] | Income taxes. none |
Share-Based Payment Arrangement [Policy Text Block] | Stock-based compensation. |
Segment Reporting, Policy [Policy Text Block] | Segments. one |
Effect of Covid-19 Pandemic [Policy Text Block] | Impact of the COVID-19 Pandemic. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently adopted accounting pronouncements. New accounting pronouncements not yet adopted. |
Note 2 - Basis of Presentatio_2
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2022 December 31, 2021 Land $ 1,122 $ 1,122 Transportation equipment 609 202 Buildings 532 — Leasehold improvements 161 143 Information technology 42 125 Field equipment 7 8 Total other property and equipment, net $ 2,473 $ 1,600 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | As of June 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Commodity price derivatives $ — $ 8,002 $ — $ 8,002 Liabilities: Commodity price derivatives — 39,911 — 39,911 Total recurring fair value measurements $ — $ (31,909 ) $ — $ (31,909 ) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Commodity price derivatives $ — $ 2,199 $ — $ 2,199 Liabilities: Commodity price derivatives – current — 13,591 — 13,591 Commodity price derivatives – noncurrent — 4,075 — 4,075 Total liabilities — 17,666 — 17,666 Total recurring fair value measurements $ — $ (15,467 ) $ — $ (15,467 ) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of June 30, 2022 As of December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents $ 22,417 $ 22,417 $ 34,869 $ 34,869 Liabilities: Long-term debt: Senior Notes (a) $ 225,000 $ 225,000 $ — $ — |
Note 5 - Derivative Financial_2
Note 5 - Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Noncash derivative gain (loss), net $ 25,191 $ (12,558 ) $ (16,442 ) $ (12,558 ) Derivative settlements, net (37,082 ) (1,038 ) (61,843 ) (1,038 ) Derivative loss, net $ (11,891 ) $ (13,596 ) $ (78,285 ) $ (13,596 ) |
Schedule of Price Risk Derivatives [Table Text Block] | Remainder of 2022 2023 Third Fourth First Second Quarter Quarter Total Quarter Quarter Total Crude Oil Price Swaps - WTI: Volume (MBbls) 980.8 1,011.8 1,992.6 441.0 200.2 641.2 Price per Bbl $ 88.97 $ 86.13 $ 87.53 $ 70.05 $ 57.22 $ 66.04 Remainder of 2022 2023 Third Fourth First Quarter Quarter Total Quarter Total Natural Gas Price Swaps - HH: Volume (MMBtu) 460.0 460.0 920.0 450.0 450.0 Price per MMBtu $ 9.00 $ 9.00 $ 9.00 $ 9.00 $ 9.00 |
Schedule of Derivative Assets and Liabilities By Counterparty [Table Text Block] | As of June 30, 2022 Fifth Third Bank, National Association $ (22,656 ) Bank of America, National Association (9,643 ) Bank of Oklahoma, National Association (3,668 ) Citizens Bank, National Association 4,058 $ (31,909 ) |
Note 6 - Exploratory Well Cos_2
Note 6 - Exploratory Well Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Capitalized Exploratory Well Costs, Roll Forward [Table Text Block] | Six Months Ended June 30, 2022 Beginning capitalized exploratory well costs $ 28,076 Additions to exploratory well costs 161,331 Reclassification to proved properties (177,720 ) Exploratory well costs charged to exploration and abandonment expense — Ending capitalized exploratory well costs $ 11,687 |
Note 7 - Long-term Debt (Tables
Note 7 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | June 30, 2022 December 31, 2021 Revolving Credit Facility due 2024 $ 285,000 $ 100,000 10.00% Senior Notes due 2024 225,000 — Debt issuance costs, net (a) (9,388 ) (2,071 ) Discounts, net (b) (12,080 ) — Total debt 488,532 97,929 Less current portion of long-term debt — — Long-term debt, net $ 488,532 $ 97,929 |
Note 8 - Asset Retirement Obl_2
Note 8 - Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Six Months Ended June 30, 2022 Beginning asset retirement obligations $ 4,260 Liabilities incurred from wells acquired 3,218 Liabilities incurred from new wells 457 Accretion of discount 120 Ending asset retirement obligations $ 8,055 |
Note 9 - Incentive Plans (Table
Note 9 - Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Shares Available Under Long-term Incentive Plan [Table Text Block] | June 30, 2022 Approved and authorized awards 13,793,197 Awards issued under plan (13,048,190 ) Awards available for future grant 745,007 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Stock Options Exercise Price Remaining Term in Years Intrinsic Value (in thousands) Outstanding at December 31, 2020 9,705,495 $ 10.00 9.7 $ 57,942 Awards granted 442,500 $ 14.36 Exercised (154,268 ) $ 10.00 Forfeitures (10,000 ) $ 10.00 Outstanding at December 31, 2021 9,983,727 $ 10.19 8.7 $ 44,395 Awards granted 824,500 $ 29.67 Exercised (12,000 ) $ 10.00 Outstanding at June 30, 2022 10,796,227 $ 11.68 8.3 $ 152,316 Vested at December 31, 2021 8,551,070 $ 10.13 8.7 $ 38,556 Exercisable at December 31, 2021 8,551,070 $ 10.13 8.7 $ 38,556 Vested at June 30, 2022 9,268,914 $ 11.67 8.3 $ 103,055 Exercisable at June 30, 2022 9,268,914 $ 11.67 8.3 $ 103,055 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | June 30, 2022 Remainder of 2022 $ 257 2023 349 Total lease payments 606 Less present value discount (15 ) Present value of lease liabilities $ 591 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Current income tax expense: Federal $ — $ — $ — $ — State — — — — Total current income tax expense — — — — Deferred income tax expense: Federal 23,315 1,420 23,127 2,535 State 757 — 633 — Deferred income tax expense 24,072 1,420 23,760 2,535 Total income tax expense $ 24,072 $ 1,420 $ 23,760 $ 2,535 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Income tax expense at U.S. federal statutory rate $ 21,343 $ 1,505 $ 17,810 $ 2,735 Limited tax benefit due to stock-based compensation 1,930 28 5,536 (81 ) State deferred income taxes 848 — 724 — Other, net (49 ) (113 ) (310 ) (119 ) Income tax expense $ 24,072 $ 1,420 $ 23,760 $ 2,535 Effective income tax rate 23.7 % 19.8 % 28.0 % 19.5 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, 2022 December 31, 2021 Deferred tax assets: Unrecognized derivative losses $ 6,890 $ 3,248 Net operating loss carryforwards 4,037 2,870 Interest expense limitations 3,052 — Stock-based compensation 2,629 4,373 Other 97 31 Deferred tax assets 16,705 10,522 Deferred tax liabilities: Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes (96,267 ) (66,324 ) Net deferred tax liabilities $ (79,562 ) $ (55,802 ) |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income as reported $ 77,561 $ 5,743 $ 61,051 $ 10,487 Participating basic earnings (a) (6,376 ) (407 ) (5,169 ) (743 ) Basic earnings attributable to common stockholders 71,185 5,336 55,882 9,744 Reallocation of participating earnings 162 — 124 1 Diluted net income attributable to common stockholders $ 71,347 $ 5,336 $ 55,006 $ 9,745 Basic weighted average shares outstanding 103,178 92,676 99,530 92,634 Dilutive warrants and unvested stock options 5,928 — 5,191 196 Dilutive unvested restricted stock 2,122 — 2,122 — Diluted weighted average shares outstanding 111,228 92,676 106,843 92,830 |
Note 2 - Basis of Presentatio_3
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 6 Months Ended | |||
Feb. 28, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | ||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 90,235,000 | $ 39,378,000 | |||
Income Taxes Receivable | 3,200,000 | 3,200,000 | |||
Oil and Gas Joint Interest Billing Receivables | 9,100,000 | 3,100,000 | |||
Accounts Receivable, Allowance for Credit Loss, Current | 0 | 0 | |||
Prepaid Expense | 19,100,000 | 7,200,000 | |||
Inventory, Raw Materials and Supplies, Gross, Total | 6,200,000 | 3,300,000 | |||
Inventory, LIFO Reserve | 0 | 0 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance | 562,000 | 438,000 | |||
Payments of Debt Issuance Costs | 9,098,000 | $ 1,759,000 | |||
Amortization of Debt Issuance Costs | 1,781,000 | 77,000 | |||
Debt Instrument, Unamortized Discount, Total | [1] | 12,080,000 | 0 | ||
Amortization of Debt Discount (Premium) | 2,741,000 | 0 | |||
Accounts Payable and Accrued Liabilities, Current, Total | 272,100,000 | 103,000,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 0 | ||||
Number of Operating Segments | 1 | ||||
Minimum [Member] | |||||
Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month) | 1 month | ||||
Maximum [Member] | |||||
Oil and Natural Gas Marketing Contracts, Term Over Which Consideration is Received from Purchaser (Month) | 2 months | ||||
Senior Unsecured Notes and Revolving Credit Facility [Member] | |||||
Debt Issuance Costs, Gross | $ 11,700,000 | ||||
Payments of Debt Issuance Costs | 9,100,000 | ||||
Amortization of Debt Issuance Costs | 1,800,000 | 77,000 | |||
Senior Unsecured Notes Due 2024 [Member] | |||||
Payments of Debt Issuance Costs | $ 21,200,000 | ||||
Debt Instrument, Unamortized Discount, Total | $ 14,800,000 | ||||
Amortization of Debt Discount (Premium) | $ 2,700,000 | $ 0 | |||
Transportation Equipment [Member] | |||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||||
Building [Member] | |||||
Property, Plant and Equipment, Useful Life (Year) | 40 years | ||||
Field Equipment [Member] | |||||
Property, Plant and Equipment, Useful Life (Year) | 7 years | ||||
Technology Equipment [Member] | |||||
Property, Plant and Equipment, Useful Life (Year) | 3 years | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Purchaser [Member] | |||||
Concentration Risk, Percentage | 88% | 95% | |||
Settlements of Derivative Contracts [Member] | |||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 0 | 771,000 | |||
Aid-in-construction Receivables [Member] | WTG Gas Processing, L.P. [Member] | |||||
Accounts Receivable, after Allowance for Credit Loss, Total | 3,700,000 | 3,900,000 | |||
Crude Oil, Natural Gas and Natural Gas Liquids [Member] | |||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 69,000,000 | 29,000,000 | |||
Refunds From Pipe Suppliers [Member] | |||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 0 | $ 3,200,000 | |||
[1]Discounts as of June |
Note 2 - Basis of Presentatio_4
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Other Property and Equipment, Net (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Other property and equipment, net | $ 2,473,000 | $ 1,600,000 |
Land [Member] | ||
Other property and equipment, net | 1,122,000 | 1,122,000 |
Transportation Equipment [Member] | ||
Other property and equipment, net | 609,000 | 202,000 |
Building [Member] | ||
Other property and equipment, net | 532,000 | 0 |
Leasehold Improvements [Member] | ||
Other property and equipment, net | 161,000 | 143,000 |
Technology Equipment [Member] | ||
Other property and equipment, net | 42,000 | 125,000 |
Field Equipment [Member] | ||
Other property and equipment, net | $ 7,000 | $ 8,000 |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) $ in Millions | 6 Months Ended | |||
Jun. 27, 2022 shares | Jun. 21, 2022 shares | Mar. 25, 2022 shares | Jun. 30, 2022 USD ($) a shares | |
Asset Acquisition, Consideration Transferred, Total | $ | $ 515.4 | |||
Stock Issued During Period, Shares, Acquisitions (in shares) | shares | 3,522,117 | 371,517 | ||
Flat Top Operating Area [Member] | ||||
Acquisition, Area of Working Interests in Producing Properties and Salt-water Disposal Wells (Acre) | a | 34,500 | |||
Stock Issued During Period, Shares, Acquisitions (in shares) | shares | 6,960,000 | 10,853,634 | ||
Payments to Acquire Oil and Gas Property and Equipment, Total | $ | $ 265 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Assets and Liabilities Measured On Recurring Basis (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives | $ 39,911,000 | $ 13,591,000 |
Derivatives | 0 | 4,075,000 |
Commodity Contract [Member] | ||
Commodity price derivatives | 31,909,000 | |
Total liabilities | 31,909,000 | |
Fair Value, Recurring [Member] | Commodity Contract [Member] | ||
Commodity price derivatives | 8,002,000 | 2,199,000 |
Commodity price derivatives | 39,911,000 | 17,666,000 |
Total recurring fair value measurements | (31,909,000) | (15,467,000) |
Derivatives | 13,591,000 | |
Derivatives | 4,075,000 | |
Total liabilities | 39,911,000 | 17,666,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | ||
Commodity price derivatives | 0 | 0 |
Commodity price derivatives | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Derivatives | 0 | |
Derivatives | 0 | |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | ||
Commodity price derivatives | 8,002,000 | 2,199,000 |
Commodity price derivatives | 39,911,000 | 17,666,000 |
Total recurring fair value measurements | (31,909,000) | (15,467,000) |
Derivatives | 13,591,000 | |
Derivatives | 4,075,000 | |
Total liabilities | 39,911,000 | 17,666,000 |
Fair Value, Inputs, Level 3 [Member] | Commodity Contract [Member] | ||
Commodity price derivatives | 0 | |
Commodity price derivatives | 0 | |
Total recurring fair value measurements | 0 | |
Derivatives | 0 | |
Derivatives | 0 | |
Total liabilities | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | ||
Commodity price derivatives | 0 | |
Commodity price derivatives | 0 | |
Total recurring fair value measurements | 0 | |
Total liabilities | $ 0 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Financial Instruments Fair Value (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Reported Value Measurement [Member] | |||
Cash and cash equivalents | $ 22,417,000 | $ 34,869,000 | |
Senior notes (a) | [1] | 225,000,000 | 0 |
Estimate of Fair Value Measurement [Member] | |||
Cash and cash equivalents | 22,417,000 | 34,869,000 | |
Senior notes (a) | [1] | $ 225,000,000 | $ 0 |
[1]Fair value is determined using Level 2 inputs. The Company’s senior unsecured notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 7 for additional information. |
Note 5 - Derivative Financial_3
Note 5 - Derivative Financial Instruments - Summary of the Effect of Derivatives on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noncash derivative gain (loss), net | $ 25,191 | $ (12,558) | $ (16,442) | $ (12,558) |
Derivative settlements, net | (37,082) | (1,038) | (61,843) | (1,038) |
Derivative gain (loss), net | $ (11,891) | $ (13,596) | $ (78,285) | $ (13,596) |
Note 5 - Derivative Financial_4
Note 5 - Derivative Financial Instruments - Price Risk Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member] | 6 Months Ended |
Jun. 30, 2022 MMBTU $ / shares bbl | |
Crude Oil Derivative Swap Q3 2022 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 980.8 |
Price per Bbl (in dollars per share) | 88.97 |
Natural Gas Derivative Swap Q3 2022 [Member] | |
Volume (MMBtu) (Millions of British Thermal Unit) | MMBTU | 460 |
Price per Bbl (in dollars per share) | 9 |
Natural Gas Derivative Swap Q4 2022 [Member] | |
Volume (MMBtu) (Millions of British Thermal Unit) | MMBTU | 460 |
Price per Bbl (in dollars per share) | 9 |
Crude Oil Derivative Swap Q4 2022 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 1,011.8 |
Price per Bbl (in dollars per share) | 86.13 |
Natural Gas Derivative Swap 2022 [Member] | |
Volume (MMBtu) (Millions of British Thermal Unit) | MMBTU | 920 |
Price per Bbl (in dollars per share) | 9 |
Natural Gas Derivative Swap Q1 2023 [Member] | |
Volume (MMBtu) (Millions of British Thermal Unit) | MMBTU | 450 |
Price per Bbl (in dollars per share) | 9 |
Crude Oil Derivative Swap 2022 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 1,992.6 |
Price per Bbl (in dollars per share) | 87.53 |
Natural Gas Derivative Swap 2023 [Member] | |
Volume (MMBtu) (Millions of British Thermal Unit) | MMBTU | 450 |
Price per Bbl (in dollars per share) | 9 |
Crude Oil Derivative Swap Q1 2023 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 441 |
Price per Bbl (in dollars per share) | 70.05 |
Crude Oil Derivative Swap Q2 2023 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 200.2 |
Price per Bbl (in dollars per share) | 57.22 |
Crude Oil Derivative Swap 2023 [Member] | |
Volume (MBbls) (Barrel of Oil) | bbl | 641.2 |
Price per Bbl (in dollars per share) | 66.04 |
Note 5 - Derivative Financial_5
Note 5 - Derivative Financial Instruments - Net Derivative Liabilities By Counterparty (Details) - Commodity Contract [Member] $ in Thousands | Jun. 30, 2022 USD ($) |
Net derivative liabilities | $ (31,909) |
Fifth Third Bank, National Association [Member] | |
Net derivative liabilities | (22,656) |
Bank of America, National Association [Member] | |
Net derivative liabilities | (9,643) |
Bank of Oklahoma, National Association [Member] | |
Net derivative liabilities | (3,668) |
Citizens Bank, National Association [Member] | |
Commodity price derivatives | $ 4,058 |
Note 6 - Exploratory Well Cos_3
Note 6 - Exploratory Well Costs (Details Textual) | 6 Months Ended |
Jun. 30, 2022 | |
Capitalized Exploratory Well Costs, Maximum Term (Year) | 1 year |
Note 6 - Exploratory Well Cos_4
Note 6 - Exploratory Well Costs - Exploratory Well Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Beginning capitalized exploratory well costs | $ 28,076 |
Additions to exploratory well costs | 161,331 |
Reclassification to proved properties | (177,720) |
Exploratory well costs charged to exploration and abandonment expense | 0 |
Ending capitalized exploratory well costs | $ 11,687 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) | 1 Months Ended | 6 Months Ended | |||||
Feb. 28, 2022 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | ||
Debt Instrument, Unamortized Discount, Total | [1] | $ 12,080,000 | $ 0 | ||||
Payments of Debt Issuance Costs | 9,098,000 | $ 1,759,000 | |||||
Senior Unsecured Notes Due 2024 [Member] | |||||||
Debt Instrument, Unamortized Discount, Total | $ 14,800,000 | ||||||
Debt Instrument, Face Amount | $ 225,000,000 | ||||||
Long-Term Debt, Gross | 225,000,000 | 0 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | ||||||
Payments of Debt Issuance Costs | $ 21,200,000 | ||||||
Proceeds from Issuance of Debt | 203,800,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Long-Term Debt, Gross | 285,000,000 | 100,000,000 | |||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 138,800,000 | $ 40,000,000 | 400,000,000 | 125,000,000 | $ 195,000,000 | ||
Line of Credit Facility, Commitment Fee Amount | 20,000,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 138,800,000 | $ 20,000,000 | 400,000,000 | $ 125,000,000 | $ 195,000,000 | ||
Debt Instrument, Covenant, Minimum Cash Threshold for Prepayment to be Due | 75,000,000 | ||||||
Long-Term Debt, Gross | $ 0 | $ 285,000,000 | 100,000,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio | 3 | ||||||
Debt Instrument, Covenant, Minimum Current Ratio | 1 | ||||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||
Fifth Third Bank, National Association [Member] | Letter of Credit [Member] | London Interbank Offered Rate (LIBOR), Applicable Margin [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
Other Noncurrent Assets [Member] | |||||||
Debt Issuance Costs, Gross | 11,700,000 | 2,600,000 | |||||
Accumulated Amortization, Debt Issuance Costs | 2,300,000 | 502,000 | |||||
Debt Instrument, Unamortized Discount, Total | 14,800,000 | 0 | |||||
Accumulated Amortization, Debt Discount | $ 2,700,000 | $ 0 | |||||
[1]Discounts as of June |
Note 7 - Long-term Debt - Long-
Note 7 - Long-term Debt - Long-term Debt (Details) - USD ($) | Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | |
Debt issuance costs, net (a) | [1] | $ (9,388,000) | $ (2,071,000) | |
Discounts, net (b) | [2] | (12,080,000) | 0 | |
Long term debt | 488,532,000 | 97,929,000 | ||
Less current portion of long-term debt | 0 | 0 | ||
Long-term debt, net | 488,532,000 | 97,929,000 | ||
Senior Unsecured Notes Due 2024 [Member] | ||||
Long-term debt | 225,000,000 | 0 | ||
Discounts, net (b) | $ (14,800,000) | |||
Revolving Credit Facility [Member] | ||||
Long-term debt | $ 285,000,000 | $ 100,000,000 | ||
[1]Debt issuance costs as of[2]Discounts as of June |
Note 8 - Asset Retirement Obl_3
Note 8 - Asset Retirement Obligations - Asset Retirement Obligations Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Beginning asset retirement obligations | $ 4,260 | |||
Liabilities incurred from wells acquired | 3,218 | |||
Liabilities incurred from new wells | 457 | |||
Accretion of discount | $ 66 | $ 37 | 120 | $ 72 |
Ending asset retirement obligations | $ 8,055 | $ 8,055 |
Note 9 - Incentive Plans (Detai
Note 9 - Incentive Plans (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 01, 2022 | Nov. 04, 2021 | Jun. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Expense | $ 14,579,000 | $ 1,023,000 | $ 18,555,000 | $ 1,989,000 | ||||
Share-Based Payment Arrangement, Option [Member] | ||||||||
Share-Based Payment Arrangement, Expense | 10,800,000 | 1,900,000 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 1,900,000 | $ 1,900,000 | $ 1,800,000 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years | |||||||
Restricted Stock [Member] | ||||||||
Share-Based Payment Arrangement, Expense | $ 3,600,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 1,500,500 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 16,800,000 | 16,800,000 | ||||||
Restricted Stock [Member] | Outside Directors [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,184 | 67,779 | ||||||
Restricted Stock [Member] | Outside Directors [Member] | June 1, 2022 [Member] | ||||||||
Share-Based Payment Arrangement, Expense | 61,000 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 672,000 | 672,000 | ||||||
Restricted Stock [Member] | Outside Directors [Member] | June 1, 2021 [Member] | ||||||||
Share-Based Payment Arrangement, Expense | 284,000 | |||||||
Contractual Equity-based Bonus [Member] | ||||||||
Share-Based Payment Arrangement, Expense | $ 3,800,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 600,000 | |||||||
The 401K Plan [Member] | ||||||||
Defined Contribution Plan, Period of Employment for Eligibility (Month) | 3 months | |||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 80% | |||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% | |||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 141,000 | $ 111,000 |
Note 9 - Incentive Plans - Numb
Note 9 - Incentive Plans - Number of Shares Available for Grant Pursuant to Long-term Incentive Plan (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Awards issued under plan (in shares) | (10,796,227) | (9,983,727) | (9,705,495) |
The 2020 Long-term Incentive Plan [Member] | |||
Approved and authorized awards (in shares) | 13,793,197 | ||
Awards issued under plan (in shares) | (13,048,190) | ||
Awards available for future grant (in shares) | 745,007 |
Note 9 - Incentive Plans - Stoc
Note 9 - Incentive Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding balance (in shares) | 9,983,727 | 9,705,495 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 10.19 | $ 10 | |
Outstanding, remaining term (Year) | 8 years 3 months 18 days | 8 years 8 months 12 days | 9 years 8 months 12 days |
Outstanding, intrinsic value | $ 152,316 | $ 44,395 | $ 57,942 |
Awards granted (in shares) | 824,500 | 442,500 | |
Awards granted, weighted average exercise price (in dollars per share) | $ 29.67 | $ 14.36 | |
Exercised (in shares) | (12,000) | (154,268) | |
Exercised, weighted average exercise price (in dollars per share) | $ 10 | $ 10 | |
Forfeitures (in shares) | (10,000) | ||
Forfeitures, weighted average exercise price (in dollars per share) | $ 10 | ||
Outstanding balance (in shares) | 10,796,227 | 9,983,727 | 9,705,495 |
Outstanding, weighted average exercise price (in dollars per share) | $ 11.68 | $ 10.19 | $ 10 |
Vested (in shares) | 9,268,914 | 8,551,070 | |
Vested, weighted average exercise price (in dollars per share) | $ 11.67 | $ 10.13 | |
Vested, remaining term (Year) | 8 years 3 months 18 days | 8 years 8 months 12 days | |
Vested, intrinsic value | $ 103,055 | $ 38,556 | |
Exercisable (in shares) | 9,268,914 | 8,551,070 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 11.67 | $ 10.13 | |
Exercisable, remaining term (Year) | 8 years 3 months 18 days | 8 years 8 months 12 days | |
Exercisable, intrinsic value | $ 103,055 | $ 38,556 |
Note 10 - Commitments and Con_3
Note 10 - Commitments and Contingencies (Details Textual) | 6 Months Ended | ||
Jun. 30, 2022 USD ($) bbl | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) a | |
Oncor [Member] | |||
Letters of Credit Outstanding, Amount | $ 1,900,000 | ||
TXU Energy Retail Company LLC [Member] | |||
Letters of Credit Outstanding, Amount | $ 1,700,000 | ||
TEXAS | |||
Area of Land (Acre) | a | 80 | ||
Crude Oil Delivery Commitments [Member] | |||
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Year One (Barrel of Oil) | bbl | 5,000 | ||
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Year Two (Barrel of Oil) | bbl | 7,500 | ||
Supply Commitment, Gross Barrels of Oil Delivered Per Day, Remaining Term of Contract (Barrel of Oil) | bbl | 10,000 | ||
Supply Commitment, Remaining Term of Contract (Year) | 8 years | ||
Number of Barrels, Delivered (Barrel of Oil) | bbl | 17,503 | ||
Supply Commitment, Amount Committed | $ 22,200,000 | ||
Sand Commitments [Member] | |||
Supply Commitment, Amount Committed | $ 8,700,000 | ||
Supply Commitment, Minimum Tons of Sand | 600,000 | ||
Other Noncurrent Assets [Member] | |||
Operating Lease, Right-of-Use Asset | $ 579,000 | $ 852,000 | |
Other Liabilities [Member] | |||
Operating Lease, Liability, Total | 591,000 | 856,000 | |
Other Current Liabilities [Member] | |||
Operating Lease, Liability, Current | 475,000 | 513,000 | |
Other Noncurrent Liabilities [Member] | |||
Operating Lease, Liability, Noncurrent | $ 116,000 | $ 343,000 |
Note 10 - Commitments and Con_4
Note 10 - Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Remainder of 2022 | $ 257,000 | |
2023 | 349,000 | |
Total lease payments | 606,000 | |
Less present value discount | (15,000) | |
Other Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 591,000 | $ 856,000 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details Textual) Pure in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) | May 31, 2022 USD ($) | |
Water Treatment Services [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 1.4 | |
Pilot Exploration Inc. [Member] | ||
Supply Commitment, Minimum Barrels of Produced Water | 29.2 | |
Supply Commitment, Amount Committed | $ 6 |
Note 12 - Major Customers (Deta
Note 12 - Major Customers (Details Textual) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Lion Oil Trading and Transportation, LLC [Member] | ||
Concentration Risk, Percentage | 88% | 95% |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | ||||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | $ 0 | ||
Income Tax Expense (Benefit), Total | 24,072 | $ 1,420 | 23,760 | $ 2,535 | |
Deferred Income Tax Liabilities, Net | 79,562 | 79,562 | 55,802 | ||
State and Local Jurisdiction [Member] | Texas Margin Tax [Member] | |||||
Deferred Income Tax Liabilities, Net | 2,500 | 2,500 | $ 1,800 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Deferred Tax Assets, Gross, Total | $ 3,400 | 3,400 | |||
Income Tax Expense (Benefit), Total | $ 3,400 |
Note 13 - Income Taxes - Income
Note 13 - Income Taxes - Income Tax Benefit and Effective Tax Rate (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Federal | $ 0 | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 | 0 |
Total current income tax expense (benefit) | 0 | 0 | 0 | 0 |
Federal | 23,315,000 | 1,420,000 | 23,127,000 | 2,535,000 |
State | 757,000 | 0 | 633,000 | 0 |
Deferred income tax expense (benefit) | 24,072,000 | 1,420,000 | 23,760,000 | 2,535,000 |
Total income tax expense (benefit) | $ 24,072,000 | $ 1,420,000 | $ 23,760,000 | $ 2,535,000 |
Note 13 - Income Taxes - Effect
Note 13 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income tax expense at U.S. federal statutory rate | $ 21,343,000 | $ 1,505,000 | $ 17,810,000 | $ 2,735,000 |
Limited tax benefit due to stock-based compensation | 1,930,000 | 28,000 | 5,536,000 | (81,000) |
State deferred income taxes | 848,000 | 0 | 724,000 | 0 |
Other, net | (49,000) | (113,000) | (310,000) | (119,000) |
Total income tax expense (benefit) | $ 24,072,000 | $ 1,420,000 | $ 23,760,000 | $ 2,535,000 |
Effective income tax rate | 23.70% | 19.80% | 28% | 19.50% |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Unrecognized derivative losses | $ 6,890,000 | $ 3,248,000 |
Net operating loss carryforwards | 4,037,000 | 2,870,000 |
Interest expense limitations | 3,052,000 | 0 |
Stock-based compensation | 2,629,000 | 4,373,000 |
Other | 97,000 | 31,000 |
Deferred tax assets | 16,705,000 | 10,522,000 |
Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes | (96,267,000) | (66,324,000) |
Net deferred tax liabilities | $ (79,562,000) | $ (55,802,000) |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net income (loss) | $ 77,561,000 | $ (16,510,000) | $ 5,743,000 | $ 4,744,000 | $ 61,051,000 | $ 10,487,000 | |
Participating basic earnings (a) | [1] | (6,376,000) | (407,000) | (5,169,000) | (743,000) | ||
Basic earnings attributable to common stockholders | 71,185,000 | 5,336,000 | 55,882,000 | 9,744,000 | |||
Reallocation of participating earnings | 162,000 | 0 | 124,000 | 1,000 | |||
Diluted net income attributable to common stockholders | $ 71,347,000 | $ 5,336,000 | $ 55,006,000 | $ 9,745,000 | |||
Basic weighted average shares outstanding (in shares) | 103,178,000 | 92,676,000 | 99,530,000 | 92,634,000 | |||
Dilutive warrants and unvested stock options (in shares) | 5,928,000 | 0 | 5,191,000 | 196,000 | |||
Dilutive unvested restricted stock (in shares) | 2,122,000 | 0 | 2,122,000 | 0 | |||
Diluted weighted average shares outstanding (in shares) | 111,228,000 | 92,676,000 | 106,843,000 | 92,830,000 | |||
[1]Certain unvested restricted stock awarded to outside directors represent participating securities because they participate in nonforfeitable dividends with the common equity holders of the Company. Vested stock options represent participating securities because they participate in dividend equivalents with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Certain unvested restricted stock awarded to outside directors, employee members of the board of directors and certain employees do not represent participating securities because, while they participate in dividends with the common equity holders of the Company, the dividends associated with such unvested restricted stock are forfeitable in connection with the forfeitability of the underlying restricted stock. Unvested stock options do not represent participating securities because, while they participate in dividend equivalents with the common equity holders of the Company, the dividend equivalents associated with unvested stock options are forfeitable in connection with the forfeitability of the underlying stock options. |
Note 15 - Stockholders' Equity
Note 15 - Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 27, 2022 | Jun. 21, 2022 | Jun. 01, 2022 | May 25, 2022 | Mar. 25, 2022 | Feb. 25, 2022 | Aug. 31, 2022 | May 31, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Nov. 30, 2023 | Nov. 03, 2022 | |
Stock Issued During Period, Shares, Acquisitions (in shares) | 3,522,117 | 371,517 | |||||||||||||||||
Stock Issued During Period, Shares, Warrants and Stock Options Exercised (in shares) | 977,588 | ||||||||||||||||||
Stock Issued During Period, Shares, Warrant Exercises (in shares) | 965,588 | ||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 12,000 | 154,268 | |||||||||||||||||
Dividends declared, per share (in dollars per share) | $ 0.025 | $ 0.025 | $ 0 | $ 0.05 | $ 0 | ||||||||||||||
Dividends, Total | $ 2,600,000 | $ 2,400,000 | |||||||||||||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 109,226,591 | 109,226,591 | 96,774,185 | ||||||||||||||||
Class of Warrant or Right, Outstanding (in shares) | 8,290,572 | 8,290,572 | 9,500,166 | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 11.50 | $ 11.50 | |||||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 21,694,763 | 21,694,763 | |||||||||||||||||
Contingent Value Right [Member] | |||||||||||||||||||
Class of Warrant or Right, Outstanding (in shares) | 10,209,300 | 10,209,300 | 10,209,300 | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 2.125 | $ 2.125 | |||||||||||||||||
Forecast [Member] | |||||||||||||||||||
Dividends Payable | $ 53,000 | $ 53,000 | |||||||||||||||||
Quarterly Dividend [Member] | |||||||||||||||||||
Dividends declared, per share (in dollars per share) | $ 0.025 | $ 0.025 | |||||||||||||||||
Dividend Equivalent [Member] | |||||||||||||||||||
Dividends, Total | $ 214,000 | $ 214,000 | |||||||||||||||||
Dividends Payable | $ 36,000 | $ 36,000 | |||||||||||||||||
Dividend Equivalent [Member] | Forecast [Member] | |||||||||||||||||||
Dividends, Total | $ 263,000 | ||||||||||||||||||
Share-Based Payment Arrangement, Nonemployee [Member] | |||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 21,184 | ||||||||||||||||||
Share-Based Payment Arrangement, Employee [Member] | |||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 600,000 | ||||||||||||||||||
Flat Top Operating Area [Member] | |||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions (in shares) | 6,960,000 | 10,853,634 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||
Aug. 25, 2022 | May 25, 2022 | Feb. 25, 2022 | Aug. 31, 2022 | Jul. 31, 2022 | May 31, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Nov. 30, 2023 | Nov. 03, 2022 | |
Dividends declared, per share (in dollars per share) | $ 0.025 | $ 0.025 | $ 0 | $ 0.05 | $ 0 | |||||||||||
Dividends, Total | $ 2,600,000 | $ 2,400,000 | ||||||||||||||
Forecast [Member] | ||||||||||||||||
Dividends Payable | $ 53,000 | $ 53,000 | ||||||||||||||
Quarterly Dividend [Member] | ||||||||||||||||
Dividends declared, per share (in dollars per share) | $ 0.025 | $ 0.025 | ||||||||||||||
Quarterly Dividend [Member] | Subsequent Event [Member] | ||||||||||||||||
Dividends declared, per share (in dollars per share) | $ 0.025 | |||||||||||||||
Dividends, Total | $ 2,700,000 | |||||||||||||||
Dividend Equivalent [Member] | ||||||||||||||||
Dividends, Total | $ 214,000 | $ 214,000 | ||||||||||||||
Dividends Payable | $ 36,000 | $ 36,000 | ||||||||||||||
Dividend Equivalent [Member] | Forecast [Member] | ||||||||||||||||
Dividends, Total | $ 263,000 |