Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-3946 | |
Entity Registrant Name | HighPeak Energy, Inc. | |
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 | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 128,220,923 | |
Entity Central Index Key | 0001792849 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | HPK | |
Security Exchange Name | NASDAQ | |
Warrant [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase Common Stock | |
Trading Symbol | HPKEW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 30,265 | $ 30,504 |
Accounts receivable | 100,974 | 96,596 |
Inventory | 9,201 | 13,275 |
Prepaid expenses | 3,154 | 4,133 |
Derivatives | 435 | 17 |
Total current assets | 144,029 | 144,525 |
Crude oil and natural gas properties, using the successful efforts method of accounting: | ||
Proved properties | 2,977,987 | 2,270,236 |
Unproved properties | 91,630 | 114,665 |
Accumulated depletion, depreciation and amortization | (434,006) | (259,962) |
Total crude oil and natural gas properties, net | 2,635,611 | 2,124,939 |
Other property and equipment, net | 3,592 | 3,587 |
Other noncurrent assets | 6,771 | 6,431 |
Total assets | 2,790,003 | 2,279,482 |
Current liabilities: | ||
Current portion of long-term debt, net | 741,155 | 0 |
Accounts payable – trade | 215,845 | 105,565 |
Accrued capital expenditures | 102,727 | 91,842 |
Revenues and royalties payable | 36,480 | 15,623 |
Other accrued liabilities | 15,815 | 15,600 |
Accrued interest | 14,049 | 13,152 |
Derivatives | 10,700 | 16,702 |
Advances from joint interest owners | 782 | 7,302 |
Operating leases | 622 | 343 |
Total current liabilities | 1,138,175 | 266,129 |
Noncurrent liabilities: | ||
Long-term debt, net | 231,854 | 704,349 |
Deferred income taxes | 155,315 | 131,164 |
Asset retirement obligations | 7,886 | 7,502 |
Derivatives | 1,094 | 691 |
Operating leases | 269 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding at June 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value, 600,000,000 shares authorized, 113,385,923 and 113,165,027 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 11 | 11 |
Additional paid-in capital | 1,018,810 | 1,008,896 |
Retained earnings | 236,589 | 160,740 |
Total stockholders’ equity | 1,255,410 | 1,169,647 |
Total liabilities and stockholders’ equity | $ 2,790,003 | $ 2,279,482 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 outstanding (in shares) | 0 | 0 |
Preferred Stock, Shares Issued (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 outstanding (in shares) | 113,385,923 | 113,165,027 |
Common Stock, Shares, Issued (in shares) | 113,385,923 | 113,165,027 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating revenues: | ||||
Total operating revenues | $ 240,760 | $ 201,428 | $ 464,554 | $ 293,657 |
Operating costs and expenses: | ||||
Crude oil and natural gas production | 34,934 | 16,595 | 67,876 | 26,041 |
Production and ad valorem taxes | 13,259 | 10,301 | 25,556 | 15,307 |
Exploration and abandonments | 480 | 184 | 2,644 | 393 |
Depletion, depreciation and amortization | 93,011 | 34,883 | 174,142 | 51,907 |
Accretion of discount | 120 | 66 | 238 | 120 |
General and administrative | 2,516 | 2,016 | 5,018 | 3,956 |
Stock-based compensation | 3,984 | 14,579 | 8,038 | 18,555 |
Total operating costs and expenses | 148,304 | 78,624 | 283,512 | 116,279 |
Other expense | 7,502 | 0 | 7,502 | 0 |
Income from operations | 84,954 | 122,804 | 173,540 | 177,378 |
Interest and other income | 163 | 2 | 193 | 252 |
Interest expense | (39,284) | (9,282) | (66,256) | (14,534) |
Derivative loss, net | (4,363) | (11,891) | (1,243) | (78,285) |
Income before income taxes | 41,470 | 101,633 | 106,234 | 84,811 |
Income tax expense | 9,644 | 24,072 | 24,151 | 23,760 |
Net income | $ 31,826 | $ 77,561 | $ 82,083 | $ 61,051 |
Earnings per share: | ||||
Basic net income (in dollars per share) | $ 0.26 | $ 0.69 | $ 0.67 | $ 0.56 |
Diluted net income (in dollars per share) | $ 0.25 | $ 0.64 | $ 0.64 | $ 0.52 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 111,227 | 103,178 | 111,227 | 99,530 |
Diluted (in shares) | 115,978 | 111,228 | 117,127 | 106,843 |
Dividends declared per share (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.05 | $ 0.05 |
Crude Oil Sales [Member] | ||||
Operating revenues: | ||||
Total operating revenues | $ 236,390 | $ 190,926 | $ 452,086 | $ 277,864 |
Natural Gas and NGL Sales [Member] | ||||
Operating revenues: | ||||
Total operating revenues | $ 4,370 | $ 10,502 | $ 12,468 | $ 15,793 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] Outside Directors [Member] | Common Stock [Member] Employee Directors [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] Outside Directors [Member] | Additional Paid-in Capital [Member] Employee Directors [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] Outside Directors [Member] | Retained Earnings [Member] Employee Directors [Member] | Retained Earnings [Member] | Outside Directors [Member] | Employee Directors [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||||||||
Balance at Dec. 31, 2021 | $ 10 | $ 617,489 | $ (64,436) | $ 553,063 | ||||||||
Dividends declared ($0.025 per share) | 0 | 0 | (2,434) | (2,434) | ||||||||
Dividend equivalents declared on outstanding stock options ($0.025 per share) | $ 0 | 0 | (250) | (250) | ||||||||
Exercise of warrants (in shares) | 69,000 | |||||||||||
Exercise of warrants | $ 0 | 779 | 0 | 779 | ||||||||
Shares issued upon options being exercised (in shares) | 8,000 | |||||||||||
Shares issued upon options being exercised | $ 0 | 75 | 0 | 75 | ||||||||
Compensation costs included in net income | 0 | 2,614 | 0 | 2,614 | ||||||||
Net income | $ 0 | 0 | (16,510) | (16,510) | ||||||||
Stock issued for acquisition (in shares) | 6,960,000 | |||||||||||
Stock issued for acquisition | $ 0 | 156,599 | 0 | 156,599 | ||||||||
Stock issuance costs | $ 0 | (55) | 0 | (55) | ||||||||
Balance (in shares) at Mar. 31, 2022 | 103,811,000 | |||||||||||
Balance at Mar. 31, 2022 | $ 10 | 777,501 | (83,630) | 693,881 | ||||||||
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||||||||
Balance at Dec. 31, 2021 | $ 10 | 617,489 | (64,436) | $ 553,063 | ||||||||
Shares issued upon options being exercised (in shares) | 12,000 | |||||||||||
Net income | $ 61,051 | |||||||||||
Balance (in shares) at Jun. 30, 2022 | 109,227,000 | |||||||||||
Balance at Jun. 30, 2022 | $ 11 | 909,325 | (8,948) | 900,388 | ||||||||
Balance (in shares) at Dec. 31, 2021 | 96,774,000 | |||||||||||
Balance at Dec. 31, 2021 | $ 10 | 617,489 | (64,436) | $ 553,063 | ||||||||
Shares issued upon options being exercised (in shares) | 12,000 | |||||||||||
Balance (in shares) at Dec. 31, 2022 | 113,165,000 | |||||||||||
Balance at Dec. 31, 2022 | $ 11 | 1,008,896 | 160,740 | $ 1,169,647 | ||||||||
Balance (in shares) at Mar. 31, 2022 | 103,811,000 | |||||||||||
Balance at Mar. 31, 2022 | $ 10 | 777,501 | (83,630) | 693,881 | ||||||||
Dividends declared ($0.025 per share) | 0 | 0 | (2,630) | (2,630) | ||||||||
Dividend equivalents declared on outstanding stock options ($0.025 per share) | $ 0 | 0 | (249) | (249) | ||||||||
Exercise of warrants (in shares) | 897,000 | |||||||||||
Exercise of warrants | $ 0 | 6,971 | 0 | 6,971 | ||||||||
Shares issued upon options being exercised (in shares) | 4,000 | |||||||||||
Shares issued upon options being exercised | $ 0 | 45 | 0 | 45 | ||||||||
Compensation costs included in net income | 0 | 16,429 | 0 | 16,429 | ||||||||
Net income | $ 0 | 0 | 77,561 | 77,561 | ||||||||
Restricted shares issued (in shares) | 21,000 | 600,000 | ||||||||||
Restricted shares issued | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Stock issued for acquisition (in shares) | 3,894,000 | |||||||||||
Stock issued for acquisition | $ 1 | 108,382 | 0 | 108,383 | ||||||||
Stock issuance costs | $ 0 | (3) | 0 | (3) | ||||||||
Balance (in shares) at Jun. 30, 2022 | 109,227,000 | |||||||||||
Balance at Jun. 30, 2022 | $ 11 | 909,325 | (8,948) | 900,388 | ||||||||
Balance (in shares) at Dec. 31, 2022 | 113,165,000 | |||||||||||
Balance at Dec. 31, 2022 | $ 11 | 1,008,896 | 160,740 | 1,169,647 | ||||||||
Dividends declared ($0.025 per share) | 0 | 0 | (2,829) | (2,829) | ||||||||
Dividend equivalents declared on outstanding stock options ($0.025 per share) | $ 0 | 0 | (288) | (288) | ||||||||
Exercise of warrants (in shares) | 0 | |||||||||||
Exercise of warrants | $ 0 | 2 | 0 | 2 | ||||||||
Shares issued upon options being exercised (in shares) | 12,000 | |||||||||||
Shares issued upon options being exercised | $ 0 | 148 | 0 | 148 | ||||||||
Compensation costs included in net income | 0 | 4,054 | 0 | 4,054 | ||||||||
Net income | $ 0 | 0 | 50,257 | 50,257 | ||||||||
Balance (in shares) at Mar. 31, 2023 | 113,177,000 | |||||||||||
Balance at Mar. 31, 2023 | $ 11 | 1,013,100 | 207,880 | 1,220,991 | ||||||||
Balance (in shares) at Dec. 31, 2022 | 113,165,000 | |||||||||||
Balance at Dec. 31, 2022 | $ 11 | 1,008,896 | 160,740 | $ 1,169,647 | ||||||||
Shares issued upon options being exercised (in shares) | 11,834 | |||||||||||
Net income | $ 82,083 | |||||||||||
Balance (in shares) at Jun. 30, 2023 | 113,386,000 | |||||||||||
Balance at Jun. 30, 2023 | $ 11 | 1,018,810 | 236,589 | 1,255,410 | ||||||||
Balance (in shares) at Mar. 31, 2023 | 113,177,000 | |||||||||||
Balance at Mar. 31, 2023 | $ 11 | 1,013,100 | 207,880 | 1,220,991 | ||||||||
Dividends declared ($0.025 per share) | 0 | 0 | (2,830) | (2,830) | ||||||||
Dividend equivalents declared on outstanding stock options ($0.025 per share) | $ 0 | 0 | (287) | (287) | ||||||||
Exercise of warrants (in shares) | 150,000 | |||||||||||
Exercise of warrants | $ 0 | 1,726 | 0 | 1,726 | ||||||||
Compensation costs included in net income | 0 | 3,984 | 0 | 3,984 | ||||||||
Net income | $ 0 | 0 | 31,826 | 31,826 | ||||||||
Restricted shares issued (in shares) | 59,000 | |||||||||||
Restricted shares issued | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Balance (in shares) at Jun. 30, 2023 | 113,386,000 | |||||||||||
Balance at Jun. 30, 2023 | $ 11 | $ 1,018,810 | $ 236,589 | $ 1,255,410 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Dividends declared per share (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 |
Dividend Equivalents, Per Share, Declared (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 82,083 | $ 61,051 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Exploration and abandonment expense | 2,186 | 32 |
Depletion, depreciation and amortization expense | 174,142 | 51,907 |
Accretion expense | 238 | 120 |
Stock-based compensation expense | 8,038 | 18,555 |
Amortization of debt issuance costs | 5,704 | 1,781 |
Amortization of discounts on 10.000% Senior Notes and 10.625% Senior Notes | 8,627 | 2,741 |
Derivative-related activity | (6,017) | 16,442 |
Deferred income taxes | 24,151 | 23,760 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,378) | (50,857) |
Prepaid expenses, inventory and other assets | 3,941 | (2,571) |
Accounts payable, accrued liabilities and other current liabilities | 64,961 | 25,225 |
Net cash provided by operating activities | 363,676 | 148,186 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to crude oil and natural gas properties | (678,968) | (403,177) |
Changes in working capital associated with crude oil and natural gas property additions | 74,736 | 105,476 |
Acquisitions of crude oil and natural gas properties | (7,789) | (250,448) |
Deposit and other costs related to pending acquisitions | (397) | 0 |
Other property additions | (103) | (996) |
Net cash used in investing activities | (612,521) | (549,145) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under Credit Agreement | 255,000 | 380,000 |
Proceeds from exercises of warrants | 1,728 | 7,750 |
Proceeds from exercises of stock options | 148 | 120 |
Dividends paid | (5,554) | (4,959) |
Debt issuance costs | (1,399) | (9,098) |
Stock offering costs | (748) | (58) |
Dividend equivalents paid | (569) | (427) |
Proceeds from issuance of 10.000% Senior Notes, net of discount | 0 | 210,179 |
Repayments under Credit Agreement | 0 | (195,000) |
Net cash provided by financing activities | 248,606 | 388,507 |
Net decrease in cash and cash equivalents | (239) | (12,452) |
Cash and cash equivalents, beginning of period | 30,504 | 34,869 |
Cash and cash equivalents, end of period | 30,265 | 22,417 |
Supplemental cash flow information: | ||
Cash paid for interest | 51,027 | 1,689 |
Cash paid for income taxes | 0 | 0 |
Supplemental disclosure of non-cash transactions: | ||
Stock issued for acquisition | 0 | 264,982 |
Additions to asset retirement obligations | $ 186 | $ 3,676 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 6, 2023, 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. 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 primarily in Howard and Borden Counties. Our acreage is composed of two core areas, Flat Top primarily in the northern portion of Howard County extending into southern Borden, southwest Scurry and northwest Mitchell Counties 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, 2023 | |
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 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, 2022. Going concern. We are currently evaluating multiple prospective supplemental financing alternatives. Failure to redeem or refinance the 10.000% Senior Notes due February 2024 on or before September 1, 2023 or such later date as agreed to in writing by the Majority Lenders in their reasonable discretion, allocate a portion of our cash flow that will retire such 10.000% Senior Notes on or before November 30, 2023 or amend the terms of such 10.000% Senior Notes to extend the scheduled repayment thereof to no earlier than February 15, 2025 will result in an event of default under our Credit Agreement and an acceleration of the repayment of all amounts outstanding thereunder. We may not be successful in refinancing, repaying or extending the maturity of the 10.000% Senior Notes or allocating a portion of our cash flow satisfactory to the Administrative Agent and the Majority Lenders to retire the 10.000% Senior Notes by November 30, 2023, by September 1, 2023 or such later date as agreed to in writing by the Majority Lenders in their reasonable discretion and in the future we may not be able to obtain additional postponements or waivers under, or amendments of, the Credit Agreement, of the types described in Note 7. Any such refinancing may not be obtainable on terms favorable to us. Further, any inability to satisfy our obligations under the Credit Agreement, including the 10.000% Senior Notes Obligation, could lead to the acceleration of amounts due thereunder by our credit facility lenders, which would cause a cross default and acceleration of amounts due under our Existing Notes. Principles of consolidation. Use of estimates in the preparation of financial statements. Cash and cash equivalents. Accounts receivable. zero zero The Company adopted ASU 2016-13 and the subsequent applicable modifications to the rule on January 1, 2023. Accounts receivable are stated at amounts due from purchasers or joint interest owners, net of an allowance for expected losses as estimated by the Company when collection is doubtful. For receivables from joint interest owners, the Company typically has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Accounts receivable from purchasers or joint interest owners outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for each type of receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for expected losses. As of June 30, 2023 and December 31, 2022, the Company had no Concentration of credit risk. two Inventory. not Prepaid expenses. 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 crude 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, 2023 December 31, 2022 Land $ 2,139 $ 2,139 Transportation equipment 693 691 Buildings 537 544 Leasehold improvements 217 206 Field equipment 5 6 Furniture and fixtures 1 1 Total other property and equipment, net $ 3,592 $ 3,587 Other property and equipment are depreciated over their estimated useful life on a straight-line basis. Land is not depreciated. Transportation equipment is generally depreciated over five forty seven five 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. Leases. Current liabilities. Debt issuance costs and original issue discount. Asset retirement obligations. Revenue recognition . The Company enters into contracts with purchasers to sell its crude oil, NGL 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 has not established a valuation allowance as of June 30, 2023 and December 31, 2022. Tax benefits from an uncertain tax positions are recognized 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. Tax-related interest charges are recorded as interest expense and any tax-related penalties as other expense in the consolidated statements of operations of which there have been none to date. 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 the periods presented. Stock-based compensation. Stock-based compensation for restricted stock awarded to outside directors, employee members of the Board 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 Recently adopted accounting pronouncements. New accounting pronouncements not yet adopted. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Acquisitions [Text Block] | NOTE 3. Acquisitions Hannathon Acquisition. Alamo Acquisitions. Other acquisitions. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 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– current $ — $ 435 $ — $ 435 Liabilities: Commodity price derivatives – current — 10,700 — 10,700 Commodity price derivatives – noncurrent — 1,094 — 1,094 Total liabilities — 11,794 — 11,794 Total recurring fair value measurements $ — $ (11,359 ) $ — $ (11,359 ) As of December 31, 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– current $ — $ 17 $ — $ 17 Liabilities: Commodity price derivatives – current — 16,702 — 16,702 Commodity price derivatives – noncurrent — 691 — 691 Total liabilities — 17,393 — 17,393 Total recurring fair value measurements $ — $ (17,376 ) $ — $ (17,376 ) 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, 2023 As of December 31, 2022 Carrying Carrying Value Fair Value Value Fair Value Liabilities: Current portion of long-term debt: 10.000% Senior Notes (a) $ 225,000 $ 225,000 $ 225,000 $ 225,000 Long-term debt: 10.625% Senior Notes (a) $ 250,000 $ 250,000 $ 250,000 $ 250,000 (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 cash and cash equivalents, accounts receivable, accounts payable, long-term debt (specifically the Credit Agreement), 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, 2023 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 5. Derivative Financial Instruments The Company primarily utilizes commodity swap contracts and deferred premium put options to (i) reduce the effect of price volatility on the commodities the Company produces and sells, particularly on the down-side, and (ii) support the Company’s capital budgeting and expenditure plans, (iii) protect the Company’s borrowing base under the Credit Agreement and (iv) 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Noncash derivative gain (loss), net $ 703 $ 25,191 $ 6,017 $ (16,442 ) Cash payments on settled derivatives, net (5,066 ) (37,082 ) (7,260 ) (61,843 ) Derivative loss, net $ (4,363 ) $ (11,891 ) $ (1,243 ) $ (78,285 ) Crude oil production derivatives. The Company’s outstanding crude oil derivative contracts as of June 30, 2023 and the weighted average crude oil prices per barrel for those contracts are as follows: Remainder of 2023 Third Quarter Fourth Quarter Total Crude Oil Price Swaps – WTI: Volume (MBbls) 276.0 — 276.0 Price per Bbl $ 72.30 $ — $ 72.30 Deferred Premium Put Options – WTI: Volume (MBbls) 644.0 920.0 1,564.0 Price per Bbl (Put Price) $ 60.46 $ 55.97 $ 57.82 Price per Bbl (Net of Premium) $ 55.46 $ 50.97 $ 52.82 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Total Deferred Premium Put Options – WTI: Volume (MBbls) 910.0 910.0 920.0 — 2,740.0 Price per Bbl (Put Price) $ 53.83 $ 53.83 $ 53.83 $ — $ 53.83 Price per Bbl (Net of Premium) $ 48.83 $ 48.83 $ 48.83 $ — $ 48.83 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, 2023 Bank of America, National Association $ (7,994 ) Citizens Bank, National Association (3,365 ) $ (11,359 ) |
Note 6 - Exploratory Extension
Note 6 - Exploratory Extension Well Costs | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Exploratory Well Costs [Text Block] | NOTE 6. Exploratory/Extension Well Costs The Company capitalizes exploratory/extension wells 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/extension well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory/extension well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense. The changes in capitalized exploratory/extension well costs are as follows (in thousands): Six Months Ended June 30, 2023 Beginning capitalized exploratory/extension well costs $ 186,427 Additions to exploratory/extension well costs 322,902 Reclassification to proved properties (428,306 ) Exploratory/extension well costs charged to exploration and abandonment expense — Ending capitalized exploratory/extension well costs $ 81,023 All capitalized exploratory/extension well costs have been capitalized for less than one |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Credit Agreement due 2024 $ 525,000 $ 270,000 10.625% Senior Notes, due 2024 250,000 250,000 10.000% Senior Notes, due 2024 225,000 225,000 Discounts, net (a) (18,459 ) (27,086 ) Debt issuance costs, net (b) (8,532 ) (13,565 ) Total debt 973,009 704,349 Less current portion of long-term debt, net (741,155 ) — Long-term debt, net $ 231,854 $ 704,349 (a) Discounts as of June 30, 2023 and December 31, 2022 consisted of $34.8 million and $34.8 million, respectively, in discounts less accumulated amortization of $16.4 million and $7.7 million, respectively. (b) Debt issuance costs as of June 30, 2023 and December 31, 2022 consisted of $20.4 million and $19.7 million, respectively, in costs less accumulated amortization of $11.8 million and $6.1 million, respectively. Credit Agreement In June 2022, the Company entered into the Fourth Amendment to, among other things, (i) increase (a) the aggregate elected commitments to $400.0 million, (b) the borrowing base to $400.0 million and (c) the maximum credit amount to $1.5 billion, (ii) increase the excess cash threshold to $75.0 million, (iii) modify the affirmative hedging requirement so that if total debt to EBITDAX is greater than 1.25 to 1.00 but less than or equal to 1.75 to 1.00, notional volumes covering the first 24 months following the measurement date shall be hedged in an amount equal to not less than 25% of the projected production and if total debt to EBITDAX is greater than 1.75 to 1.00, notional volumes covering the first 24 months following the measurement date shall be hedged in an amount equal to not less than 50% of the projection production and (iv) increase the number of banks included in the syndicate at differing levels of commitments, with Fifth Third remaining the administrative agent. In October 2022, the Company entered into the Fifth Amendment to, among other things, (i) increase the elected commitments to $525 million and the borrowing base to $550 million, (ii) require an additional borrowing base redetermination on or about December 1, 2022, (iii) modify the permitted dividends and distributions conditions such that minimum availability under the credit facility must be 25% percent (as opposed to 30% before giving effect to the Fifth Amendment) and (iv) appoint Wells Fargo Bank, National Association (“Wells Fargo”) as the new administrative agent to replace Fifth Third. In addition, in connection with the Fifth Amendment, to the extent the Company incurs any additional specified unsecured senior, senior subordinated or subordinated future indebtedness in an aggregate amount of up to $250.0 million before June 30, 2023, the Company’s obligation to reduce the borrowing base by an amount equal to 25% of the principal amount of such additional future indebtedness shall be waived. In connection with the Fifth Amendment, the lenders waived two events of default existing with the Credit Agreement, as it existed prior to giving effect to the Fifth Amendment, related to entering into and maintaining certain minimum hedges as of the fiscal quarters ending June 30, 2022 and September 30, 2022 and complying with the required current ratio as of the fiscal quarter ending September 30, 2022. In October 2022, the Company entered into the Sixth Amendment to, among other things, (i) change the period to 120 days following the maturity date for which there can be no scheduled principal payments, mandatory redemption or maturity date for the 10.000% Senior Notes and the Specified Senior Notes, (ii) clarify that the Specified Senior Notes are subject to the restriction on the voluntary redemption by the Company of certain specified additional debt, including the 10.000% Senior Notes, (iii) add a permitted lien basket in connection with the escrow account to be opened in connection with the Specified Senior Notes and (iv) provide for an exception for the restriction on mandatory redemptions of the Specified Senior Notes in connection with the special mandatory redemption provided for with respect to the Specified Senior Notes. In December 2022, the Company entered into the Seventh Amendment to, among other things, increase the amount of Specified Senior Notes from $225.0 million to $250.0 million. In March 2023, the Company entered into the Eighth Amendment to, among other things, (a) increase the borrowing base to $700.0 million, (b) add an aggregate elected commitments concept at an initial amount of $575.0 million, (c) provide that the applicable margin shall be determined in reference to such aggregate elected commitments (as opposed to being determined in reference to the borrowing base before giving effect to the Eighth Amendment), (d) modify the permitted dividends and distributions conditions such that minimum availability under the credit facility must be 25% of such aggregate elected commitments (as opposed to the borrowing base before giving effect to the Eighth Amendment), (e) permit quarterly dividends and distributions in an amount not to exceed $4.0 million provided that there is no default and that after giving effect thereto and any concurrent borrowing, the Company is in pro forma compliance with its financial covenants, (f) require the Company, on or before June 30, 2023, to redeem or refinance the 10.000% Senior Notes, allocate a portion of its cash flow that will retire the 10.000% Senior Notes on or before November 30, 2023 or amend the terms of the 10.000% Senior Notes to extend the scheduled repayment thereof to no earlier than February 15, 2025, (g) permit the redemption of Specified Additional Debt (defined in the Credit Agreement to mean any unsecured senior, senior subordinated or subordinated Debt of the Borrower incurred after the Effective Date and any refinancing of such Debt, including without limitation, the 10.000% Senior Notes; provided that any such Debt may be refinanced only to the extent that the aggregate principal amount of such refinanced Debt does not result in an increase in the principal amount thereof plus amounts to fund any original issue discount or upfront fees relating thereto plus amounts to fund accrued interest, fees, expenses and premiums, with all Capitalized terms defined in such Credit Agreement) with the proceeds of Loans if pre-approved by all Lenders provided that there is no default and that after giving effect thereto, the Company is in pro forma compliance with its financial covenants and (h) add Texas Capital Bank as a Lender. Subsequent to quarter end in July 2023, the Company entered into the Ninth Amendment to, among other things, provide for (i) a waiver of the minimum current ratio covenant for the fiscal quarter ended June 30, 2023 under the Credit Agreement, (ii) a waiver of the failure to subject one or more certain accounts to an Account Control Agreement within the period provided in the Credit Agreement, (iii) a postponement of the April 2023 borrowing base redetermination until September 2023, (iv) a postponement of the date on which the Company was previously obligated thereunder to either extend the maturity of the 10.000% Senior Notes due February 2024, redeem or refinance the 10.000% Senior Notes or allocate a portion of the Company’s cash flow satisfactory to the Administrative Agent and the Majority Lenders that will retire the 10.000% Senior Notes on or before November 30, 2023 to September 1, 2023 or such later date as agreed to in writing by the Majority Lenders in their reasonable discretion, (v) certain pricing increases and additional minimum hedging requirements, (vi) an additional requirement to deliver a 13-week cash flow forecast on a weekly basis through completion of the September 2023 borrowing base redetermination and (vii) a temporary restriction on borrowing further amounts under the Credit Agreement until the Company has received at least $95 million of net proceeds from the sales of the Company’s equity securities, which has been subsequently satisfied and the restriction no longer applies. The borrowing capacity under the Credit Agreement is currently equal to the lowest of (i) the borrowing base (which stands at $575.0 million as of June 30, 2023), (ii) the aggregate elected commitments (which stands at $575.0 million as of June 30, 2023) and (iii) $1.5 billion. As of June 30, 2023 and December 31, 2022, the Company had $525.0 million and $270.0million, respectively, outstanding borrowings under the Credit Agreement. Borrowings under the Credit Agreement 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, which was determined by the Borrowing Base Utilization Percentage as defined in the Credit Agreement or (b) the LIBO Rate for a one, three or six month Interest Period multiplied by the Statutory Reserve Rate. As of June 30, 2023, borrowings under the Credit Agreement bear 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 the administrative agent, (ii) the weighted average of the rates of overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 0.5 percent and (iii) Term SOFR for one-month Interest Period, plus a margin (the “Applicable Margin”), which is determined by the Utilization Percentage as defined in the Credit Agreement or (b) a rate equal to the higher of (i) zero The Credit Agreement 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 obtained a waiver regarding its current ratio as of March 31, 2023 and June 30, 2023. The Company has limited equity cure rights for a breach of the above-listed financial covenants. Additionally, the Credit Agreement 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 Credit Agreement 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. 10.000% Senior Notes. zero 10.625% Senior Notes. The Credit Agreement and the indentures governing the 10.000% Senior Notes and 10.625% Senior Notes have hedging requirements to which the Company adheres. |
Note 8 - Asset Retirement Oblig
Note 8 - Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2023 | |
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 remediation of 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, 2023 Beginning asset retirement obligations $ 7,502 Liabilities incurred from new wells 186 Dispositions (40 ) Accretion of discount 238 Ending asset retirement obligations $ 7,886 As of June 30, 2023 and December 31, 2022, 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, 2023 | |
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, 2023 December 31, 2022 Approved and authorized shares 14,459,464 14,340,324 Shares subject to awards issued under plan (13,813,457 ) (13,769,191 ) Shares available for future grant 646,007 571,133 Stock options. two The Company estimates the fair values 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 Average Exercise Price Remaining Term in Years Intrinsic Value (in thousands) Outstanding at December 31, 2021 9,983,727 $ 10.19 8.7 $ 44,395 Awards granted 1,564,500 25.09 Exercised (12,000 ) $ 10.00 Forfeitures (18,999 ) $ 18.66 Outstanding at December 31, 2022 11,517,228 $ 12.20 7.9 $ 128,429 Exercised (11,834 ) $ 12.52 Forfeitures (2,667 ) $ 29.67 Outstanding at June 30, 2023 11,502,727 $ 12.20 7.7 $ 8,381 Vested at December 31, 2022 11,304,747 $ 12.02 7.9 $ 127,591 Exercisable at December 31, 2022 11,304,747 $ 12.02 7.9 $ 127,591 Vested at June 30, 2023 11,290,246 $ 12.02 7.7 $ 8,381 Exercisable at June 30, 2023 11,290,246 $ 12.02 7.7 $ 8,381 Restricted stock issued to employee members of the Board and certain employees. three Stock issued to outside directors. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 10. Commitments and Contingencies Leases. June 30, 2023 Remainder of 2023 $ 392 2024 552 Total lease payments 944 Less present value discount (53 ) Present value of lease liabilities $ 891 Legal actions. Indemnifications. Environmental. Crude oil delivery commitments. eight Natural gas purchasing replacement contract. Connection fee commitments. Power contracts. Sand commitments. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
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 on October 1, 2022, the Company 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. During the six months ended June 30, 2023 and the year ended December 31, 2022, the Company paid $1.5 million and $1.6 million, respectively, to Pilot for such services. In April 2023, the Company terminated the contract with Pilot in exchange for $6.5 million that was charged to other expense in the accompanying consolidated financial statements during the three and six months ended June 30, 2023. |
Note 12 - Major Customers
Note 12 - Major Customers | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 12. Major Customers Delek accounted for approximately 77% and 88% during the six months ended June 30, 2023 and 2022, respectively, and Energy Transfer Crude Marketing, LLC (“ETC”) accounted for approximately 19% and less than 10% of the Company’s revenues during the six months ended June 30, 2023 and 2022, respectively. Based on the current demand for crude oil and natural gas and the availability of other purchasers, management believes the loss of either of these major purchasers 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, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 13. Income Taxes Enactment of the Inflation Reduction Act of 2022. The Company’s income tax expense attributable to income before income taxes consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Current income tax expense: Federal $ — $ — $ — $ — State — — — — Total current income tax expense — — — — Deferred income tax expense: Federal 9,121 23,315 23,041 23,127 State 523 757 1,110 633 Deferred income tax expense 9,644 24,072 24,151 23,760 Total income tax expense $ 9,644 $ 24,072 $ 24,151 $ 23,760 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, 2023 2022 2023 2022 Income tax expense at U.S. federal statutory rate $ 8,709 $ 21,343 $ 22,309 $ 17,810 State deferred income taxes 523 848 1,110 724 Limited tax benefit due to stock-based compensation 451 1,930 740 5,536 Other, net (39 ) (49 ) (8 ) (310 ) Income tax expense $ 9,644 $ 24,072 $ 24,151 $ 23,760 Effective income tax rate 23.3 % 23.7 % 22.7 % 28.0 % 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, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Deferred tax assets: Interest expense limitations $ 24,497 $ 10,623 Net operating loss carryforwards 8,216 5,496 Stock-based compensation 4,869 4,102 Unrecognized derivative losses 2,453 3,756 Other 50 32 Less: Valuation allowance — — Deferred tax assets 40,085 24,009 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 (195,400 ) (155,169 ) Unrecognized derivative gains — (4 ) Deferred tax liabilities (195,400 ) (155,173 ) Net deferred tax liabilities $ (155,315 ) $ (131,164 ) 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, 2023 and December 31, 2022, 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 2023 or 2022. However, the Company has recognized a deferred Texas Margin Tax liability of $6.7 million and $4.1 million as of June 30, 2023 and December 31, 2022, respectively, in the accompanying consolidated financial statements. |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 under the two-class method (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income as reported $ 31,826 $ 77,561 $ 82,083 $ 61,051 Participating basic earnings (a) (2,942 ) (6,376 ) (7,590 ) (5,169 ) Basic earnings attributable to common stockholders 28,884 77,185 74,493 55,882 Reallocation of participating earnings 46 162 123 124 Diluted net income attributable to common stockholders $ 28,930 $ 71,347 $ 74,616 $ 55,006 Basic weighted average shares outstanding 111,227 103,178 111,227 99,530 Dilutive warrants and unvested stock options 2,592 5,928 3,741 5,191 Dilutive unvested restricted stock 2,159 2,122 2,159 2,122 Diluted weighted average shares outstanding 115,978 111,228 117,127 106,843 (a) 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 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, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 15. Stockholders Equity Issuance of common stock. Dividends and Dividend Equivalents In January 2023, the Board declared a quarterly dividend of $0.025 per share of common stock outstanding which resulted in a total of $2.8 million in dividends being paid on February 24, 2023. In addition, under the terms of the LTIP, the Company paid a dividend equivalent per share to all vested stock option holders of $283,000 in February 2023 and accrued a dividend equivalent per share to all unvested stock option holders which is payable upon vesting of up to an additional $5,000, assuming no forfeitures. In addition, the Company accrued an additional combined $53,000 in dividends on the restricted stock issued to directors, management directors and certain employees that will be payable upon vesting. In April 2022, the Board approved a quarterly dividend of $0.025 per share of common stock outstanding which resulted in a total of $2.6 million in dividends being paid on May 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 May 2022 and up to an additional $2,000, 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. In January 2022, the Board 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 $2,000, 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, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 16. Subsequent Events Dividends and dividend equivalents. Derivatives. Remainder of 2023 Third Quarter Fourth Quarter Total Crude Oil Price Swaps – WTI: Volume (MBbls) 1,072.3 671.6 1,743.9 Price per Bbl $ 73.90 $ 74.46 $ 74.12 Deferred Premium Put Options – WTI: Volume (MBbls) 644.0 920.0 1,564.0 Price per Bbl (Put Price) $ 60.46 $ 55.97 $ 57.82 Price per Bbl (Net of Premium) $ 55.46 $ 50.97 $ 52.82 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Total Deferred Premium Put Options – WTI: Volume (MBbls) 910.0 910.0 920.0 — 2,740.0 Price per Bbl (Put Price) $ 53.83 $ 53.83 $ 53.83 $ — $ 53.83 Price per Bbl (Net of Premium) $ 48.83 $ 48.83 $ 48.83 $ — $ 48.83 Ninth Amendment to Credit Agreement. Public stock offering. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 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, 2022. |
Going Concern [Policy Text Block] | Going concern. We are currently evaluating multiple prospective supplemental financing alternatives. Failure to redeem or refinance the 10.000% Senior Notes due February 2024 on or before September 1, 2023 or such later date as agreed to in writing by the Majority Lenders in their reasonable discretion, allocate a portion of our cash flow that will retire such 10.000% Senior Notes on or before November 30, 2023 or amend the terms of such 10.000% Senior Notes to extend the scheduled repayment thereof to no earlier than February 15, 2025 will result in an event of default under our Credit Agreement and an acceleration of the repayment of all amounts outstanding thereunder. We may not be successful in refinancing, repaying or extending the maturity of the 10.000% Senior Notes or allocating a portion of our cash flow satisfactory to the Administrative Agent and the Majority Lenders to retire the 10.000% Senior Notes by November 30, 2023, by September 1, 2023 or such later date as agreed to in writing by the Majority Lenders in their reasonable discretion and in the future we may not be able to obtain additional postponements or waivers under, or amendments of, the Credit Agreement, of the types described in Note 7. Any such refinancing may not be obtainable on terms favorable to us. Further, any inability to satisfy our obligations under the Credit Agreement, including the 10.000% Senior Notes Obligation, could lead to the acceleration of amounts due thereunder by our credit facility lenders, which would cause a cross default and acceleration of amounts due under our Existing Notes. |
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 The Company adopted ASU 2016-13 and the subsequent applicable modifications to the rule on January 1, 2023. Accounts receivable are stated at amounts due from purchasers or joint interest owners, net of an allowance for expected losses as estimated by the Company when collection is doubtful. For receivables from joint interest owners, the Company typically has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Accounts receivable from purchasers or joint interest owners outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for each type of receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for expected losses. As of June 30, 2023 and December 31, 2022, the Company had no |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of credit risk. two |
Inventory, Policy [Policy Text Block] | Inventory. not |
Industry-Specific Policies, Oil and Gas [Policy Text Block] | 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 crude 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. |
Property, Plant and Equipment, Policy [Policy Text Block] | Other property and equipment, net. June 30, 2023 December 31, 2022 Land $ 2,139 $ 2,139 Transportation equipment 693 691 Buildings 537 544 Leasehold improvements 217 206 Field equipment 5 6 Furniture and fixtures 1 1 Total other property and equipment, net $ 3,592 $ 3,587 Other property and equipment are depreciated over their estimated useful life on a straight-line basis. Land is not depreciated. Transportation equipment is generally depreciated over five forty seven five 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. |
Other Non-current Assets, Aid-in-Construction Assets, Policy [Policy Text Block] | Aid-in-construction assets. |
Lessee, Leases [Policy Text Block] | Leases. |
Accounts Payable and Accrued Liabilities, Policy [Policy Text Block] | Current liabilities. |
Debt, Policy [Policy Text Block] | Debt issuance costs and original issue discount. |
Asset Retirement Obligation [Policy Text Block] | Asset retirement obligations. |
Revenue from Contract with Customer [Policy Text Block] | Revenue recognition . The Company enters into contracts with purchasers to sell its crude oil, NGL 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, Policy [Policy Text Block] | 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 Tax, Policy [Policy Text Block] | 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 has not established a valuation allowance as of June 30, 2023 and December 31, 2022. Tax benefits from an uncertain tax positions are recognized 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. Tax-related interest charges are recorded as interest expense and any tax-related penalties as other expense in the consolidated statements of operations of which there have been none to date. 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 the periods presented. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-based compensation. Stock-based compensation for restricted stock awarded to outside directors, employee members of the Board 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. |
Segment Reporting, Policy [Policy Text Block] | Segments. one |
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, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2023 December 31, 2022 Land $ 2,139 $ 2,139 Transportation equipment 693 691 Buildings 537 544 Leasehold improvements 217 206 Field equipment 5 6 Furniture and fixtures 1 1 Total other property and equipment, net $ 3,592 $ 3,587 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | As of June 30, 2023 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– current $ — $ 435 $ — $ 435 Liabilities: Commodity price derivatives – current — 10,700 — 10,700 Commodity price derivatives – noncurrent — 1,094 — 1,094 Total liabilities — 11,794 — 11,794 Total recurring fair value measurements $ — $ (11,359 ) $ — $ (11,359 ) As of December 31, 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– current $ — $ 17 $ — $ 17 Liabilities: Commodity price derivatives – current — 16,702 — 16,702 Commodity price derivatives – noncurrent — 691 — 691 Total liabilities — 17,393 — 17,393 Total recurring fair value measurements $ — $ (17,376 ) $ — $ (17,376 ) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of June 30, 2023 As of December 31, 2022 Carrying Carrying Value Fair Value Value Fair Value Liabilities: Current portion of long-term debt: 10.000% Senior Notes (a) $ 225,000 $ 225,000 $ 225,000 $ 225,000 Long-term debt: 10.625% Senior Notes (a) $ 250,000 $ 250,000 $ 250,000 $ 250,000 |
Note 5 - Derivative Financial_2
Note 5 - Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Noncash derivative gain (loss), net $ 703 $ 25,191 $ 6,017 $ (16,442 ) Cash payments on settled derivatives, net (5,066 ) (37,082 ) (7,260 ) (61,843 ) Derivative loss, net $ (4,363 ) $ (11,891 ) $ (1,243 ) $ (78,285 ) |
Schedule of Price Risk Derivatives [Table Text Block] | Remainder of 2023 Third Quarter Fourth Quarter Total Crude Oil Price Swaps – WTI: Volume (MBbls) 276.0 — 276.0 Price per Bbl $ 72.30 $ — $ 72.30 Deferred Premium Put Options – WTI: Volume (MBbls) 644.0 920.0 1,564.0 Price per Bbl (Put Price) $ 60.46 $ 55.97 $ 57.82 Price per Bbl (Net of Premium) $ 55.46 $ 50.97 $ 52.82 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Total Deferred Premium Put Options – WTI: Volume (MBbls) 910.0 910.0 920.0 — 2,740.0 Price per Bbl (Put Price) $ 53.83 $ 53.83 $ 53.83 $ — $ 53.83 Price per Bbl (Net of Premium) $ 48.83 $ 48.83 $ 48.83 $ — $ 48.83 |
Schedule of Derivative Assets and Liabilities By Counterparty [Table Text Block] | As of June 30, 2023 Bank of America, National Association $ (7,994 ) Citizens Bank, National Association (3,365 ) $ (11,359 ) |
Note 6 - Exploratory Extensio_2
Note 6 - Exploratory Extension Well Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Capitalized Exploratory Well Costs, Roll Forward [Table Text Block] | Six Months Ended June 30, 2023 Beginning capitalized exploratory/extension well costs $ 186,427 Additions to exploratory/extension well costs 322,902 Reclassification to proved properties (428,306 ) Exploratory/extension well costs charged to exploration and abandonment expense — Ending capitalized exploratory/extension well costs $ 81,023 |
Note 7 - Long-term Debt (Tables
Note 7 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | June 30, 2023 December 31, 2022 Credit Agreement due 2024 $ 525,000 $ 270,000 10.625% Senior Notes, due 2024 250,000 250,000 10.000% Senior Notes, due 2024 225,000 225,000 Discounts, net (a) (18,459 ) (27,086 ) Debt issuance costs, net (b) (8,532 ) (13,565 ) Total debt 973,009 704,349 Less current portion of long-term debt, net (741,155 ) — Long-term debt, net $ 231,854 $ 704,349 |
Note 8 - Asset Retirement Obl_2
Note 8 - Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Six Months Ended June 30, 2023 Beginning asset retirement obligations $ 7,502 Liabilities incurred from new wells 186 Dispositions (40 ) Accretion of discount 238 Ending asset retirement obligations $ 7,886 |
Note 9 - Incentive Plans (Table
Note 9 - Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Shares Available Under Long-term Incentive Plan [Table Text Block] | June 30, 2023 December 31, 2022 Approved and authorized shares 14,459,464 14,340,324 Shares subject to awards issued under plan (13,813,457 ) (13,769,191 ) Shares available for future grant 646,007 571,133 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Stock Options Average Exercise Price Remaining Term in Years Intrinsic Value (in thousands) Outstanding at December 31, 2021 9,983,727 $ 10.19 8.7 $ 44,395 Awards granted 1,564,500 25.09 Exercised (12,000 ) $ 10.00 Forfeitures (18,999 ) $ 18.66 Outstanding at December 31, 2022 11,517,228 $ 12.20 7.9 $ 128,429 Exercised (11,834 ) $ 12.52 Forfeitures (2,667 ) $ 29.67 Outstanding at June 30, 2023 11,502,727 $ 12.20 7.7 $ 8,381 Vested at December 31, 2022 11,304,747 $ 12.02 7.9 $ 127,591 Exercisable at December 31, 2022 11,304,747 $ 12.02 7.9 $ 127,591 Vested at June 30, 2023 11,290,246 $ 12.02 7.7 $ 8,381 Exercisable at June 30, 2023 11,290,246 $ 12.02 7.7 $ 8,381 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | June 30, 2023 Remainder of 2023 $ 392 2024 552 Total lease payments 944 Less present value discount (53 ) Present value of lease liabilities $ 891 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Current income tax expense: Federal $ — $ — $ — $ — State — — — — Total current income tax expense — — — — Deferred income tax expense: Federal 9,121 23,315 23,041 23,127 State 523 757 1,110 633 Deferred income tax expense 9,644 24,072 24,151 23,760 Total income tax expense $ 9,644 $ 24,072 $ 24,151 $ 23,760 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Income tax expense at U.S. federal statutory rate $ 8,709 $ 21,343 $ 22,309 $ 17,810 State deferred income taxes 523 848 1,110 724 Limited tax benefit due to stock-based compensation 451 1,930 740 5,536 Other, net (39 ) (49 ) (8 ) (310 ) Income tax expense $ 9,644 $ 24,072 $ 24,151 $ 23,760 Effective income tax rate 23.3 % 23.7 % 22.7 % 28.0 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, 2023 December 31, 2022 Deferred tax assets: Interest expense limitations $ 24,497 $ 10,623 Net operating loss carryforwards 8,216 5,496 Stock-based compensation 4,869 4,102 Unrecognized derivative losses 2,453 3,756 Other 50 32 Less: Valuation allowance — — Deferred tax assets 40,085 24,009 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 (195,400 ) (155,169 ) Unrecognized derivative gains — (4 ) Deferred tax liabilities (195,400 ) (155,173 ) Net deferred tax liabilities $ (155,315 ) $ (131,164 ) |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income as reported $ 31,826 $ 77,561 $ 82,083 $ 61,051 Participating basic earnings (a) (2,942 ) (6,376 ) (7,590 ) (5,169 ) Basic earnings attributable to common stockholders 28,884 77,185 74,493 55,882 Reallocation of participating earnings 46 162 123 124 Diluted net income attributable to common stockholders $ 28,930 $ 71,347 $ 74,616 $ 55,006 Basic weighted average shares outstanding 111,227 103,178 111,227 99,530 Dilutive warrants and unvested stock options 2,592 5,928 3,741 5,191 Dilutive unvested restricted stock 2,159 2,122 2,159 2,122 Diluted weighted average shares outstanding 115,978 111,228 117,127 106,843 |
Note 16 - Subsequent Events (Ta
Note 16 - Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Price Risk Derivatives [Table Text Block] | Remainder of 2023 Third Quarter Fourth Quarter Total Crude Oil Price Swaps – WTI: Volume (MBbls) 276.0 — 276.0 Price per Bbl $ 72.30 $ — $ 72.30 Deferred Premium Put Options – WTI: Volume (MBbls) 644.0 920.0 1,564.0 Price per Bbl (Put Price) $ 60.46 $ 55.97 $ 57.82 Price per Bbl (Net of Premium) $ 55.46 $ 50.97 $ 52.82 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Total Deferred Premium Put Options – WTI: Volume (MBbls) 910.0 910.0 920.0 — 2,740.0 Price per Bbl (Put Price) $ 53.83 $ 53.83 $ 53.83 $ — $ 53.83 Price per Bbl (Net of Premium) $ 48.83 $ 48.83 $ 48.83 $ — $ 48.83 |
Derivatives Including Additional Deferred Premium Put Options [Member] | |
Notes Tables | |
Schedule of Price Risk Derivatives [Table Text Block] | Remainder of 2023 Third Quarter Fourth Quarter Total Crude Oil Price Swaps – WTI: Volume (MBbls) 1,072.3 671.6 1,743.9 Price per Bbl $ 73.90 $ 74.46 $ 74.12 Deferred Premium Put Options – WTI: Volume (MBbls) 644.0 920.0 1,564.0 Price per Bbl (Put Price) $ 60.46 $ 55.97 $ 57.82 Price per Bbl (Net of Premium) $ 55.46 $ 50.97 $ 52.82 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Total Deferred Premium Put Options – WTI: Volume (MBbls) 910.0 910.0 920.0 — 2,740.0 Price per Bbl (Put Price) $ 53.83 $ 53.83 $ 53.83 $ — $ 53.83 Price per Bbl (Net of Premium) $ 48.83 $ 48.83 $ 48.83 $ — $ 48.83 |
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 | 12 Months Ended | ||||
Nov. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Nov. 14, 2022 | ||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 100,974,000 | $ 96,596,000 | |||||
Oil and Gas Joint Interest Billing Receivables | 17,200,000 | 2,200,000 | |||||
Income Taxes Receivable | 3,200,000 | 3,200,000 | |||||
Accounts Receivable, Allowance for Credit Loss, Current | 0 | 0 | |||||
Inventory, Raw Materials and Supplies, Gross, Total | 9,200,000 | 13,300,000 | |||||
Inventory, LIFO Reserve | 0 | 0 | |||||
Prepaid Expense | 3,200,000 | 4,100,000 | |||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance | 794,000 | 696,000 | |||||
Accounts Payable and Accrued Liabilities, Current, Total | 1,100,000,000 | 266,100,000 | |||||
Payments of Debt Issuance Costs | 1,399,000 | $ 9,098,000 | |||||
Amortization of Debt Issuance Costs | 5,704,000 | 1,781,000 | |||||
Debt Instrument, Unamortized Discount, Total | [1] | 18,459,000 | $ 27,086,000 | ||||
Amortization of Debt Discount (Premium) | $ 8,627,000 | 2,741,000 | |||||
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 | ||||||
Revolving Credit Facility [Member] | Fifth Third Bank, National Association [Member] | |||||||
Deferred Debt Refinancing Costs, Current | $ 727,000 | ||||||
Senior Unsecured Notes and Revolving Credit Facility [Member] | |||||||
Debt Issuance Costs, Gross | 20,400,000 | ||||||
Payments of Debt Issuance Costs | 672,000 | ||||||
Amortization of Debt Issuance Costs | $ 5,700,000 | 1,800,000 | |||||
Senior Unsecured Notes Due 2024 [Member] | |||||||
Payments of Debt Issuance Costs | $ 22,100,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | |||||
Debt Instrument, Unamortized Discount, Total | $ 34,800,000 | ||||||
Amortization of Debt Discount (Premium) | $ 8,600,000 | $ 2,700,000 | |||||
The 10.625% Senior Notes [Member] | |||||||
Payments of Debt Issuance Costs | $ 223,700,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.625% | 10.625% | |||||
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 | ||||||
Furniture and Fixtures [Member] | |||||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||||||
Number of Customers | 2 | 2 | |||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Largest Purchasers [Member] | |||||||
Concentration Risk, Percentage | 96% | 94% | |||||
Electric Power Infrastructure [Member] | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 0 | $ 4,900,000 | |||||
Settlements of Derivative Contracts [Member] | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 0 | 4,700,000 | |||||
Aid-in-construction Receivables [Member] | WTG Gas Processing, L.P. [Member] | |||||||
Accounts Receivable, after Allowance for Credit Loss, Total | 5,900,000 | 6,100,000 | |||||
Crude Oil, Natural Gas and Natural Gas Liquids [Member] | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 80,600,000 | $ 81,600,000 | |||||
[1]Discounts as of June 30, 2023 and December 31, 2022 consisted of $34.8 million and $34.8 million, respectively, in discounts less accumulated amortization of $16.4 million and $7.7 million, respectively. |
Note 2 - Basis of Presentatio_4
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Other Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other property and equipment, net | $ 3,592 | $ 3,587 |
Land [Member] | ||
Other property and equipment, net | 2,139 | 2,139 |
Transportation Equipment [Member] | ||
Other property and equipment, net | 693 | 691 |
Building [Member] | ||
Other property and equipment, net | 537 | 544 |
Leasehold Improvements [Member] | ||
Other property and equipment, net | 217 | 206 |
Field Equipment [Member] | ||
Other property and equipment, net | 5 | 6 |
Furniture and Fixtures [Member] | ||
Other property and equipment, net | $ 1 | $ 1 |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2022 | Jun. 21, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Issued During Period, Shares, Acquisitions | 3,522,117 | 371,517 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 108,383 | $ 156,599 | ||||||
Payments to Acquire Oil and Gas Property and Equipment | $ 7,800 | $ 12,700 | ||||||
Hannathon Petroleum, LLC Property [Member] | ||||||||
Business Combination, Consideration Transferred | $ 337,200 | |||||||
Stock Issued During Period, Shares, Acquisitions | 3,522,117 | |||||||
Stock Issued During Period, Value, Acquisitions | $ 97,200 | |||||||
Alamo Acquisitions [Member] | ||||||||
Business Combination, Consideration Transferred | $ 11,000 | $ 156,100 | ||||||
Stock Issued During Period, Shares, Acquisitions | 371,517 | 6,960,000 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 11,200 | $ 156,600 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Assets and Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commodity price derivatives – current | $ 435 | $ 17 |
Derivatives | 10,700 | 16,702 |
Derivatives | 1,094 | 691 |
Commodity Contract [Member] | ||
Total liabilities | 11,359 | |
Commodity Contract [Member] | Fair Value, Recurring [Member] | ||
Commodity price derivatives – current | 435 | |
Commodity price derivatives | 17 | |
Derivatives | 10,700 | 16,702 |
Derivatives | 1,094 | 691 |
Total liabilities | 11,794 | 17,393 |
Total recurring fair value measurements | (11,359) | (17,376) |
Commodity Contract [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Commodity price derivatives – current | 0 | |
Commodity price derivatives | 0 | |
Derivatives | 0 | 0 |
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Commodity Contract [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Commodity price derivatives – current | 435 | |
Commodity price derivatives | 17 | |
Derivatives | 10,700 | 16,702 |
Derivatives | 1,094 | 691 |
Total liabilities | 11,794 | 17,393 |
Total recurring fair value measurements | (11,359) | (17,376) |
Commodity Contract [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Commodity price derivatives – current | 0 | |
Commodity price derivatives | 0 | |
Derivatives | 0 | 0 |
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Total recurring fair value measurements | $ 0 | $ 0 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Financial Instruments Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Carrying value, current | $ 231,854 | $ 704,349 | |
Reported Value Measurement [Member] | Senior Unsecured Notes Due 2024 [Member] | |||
Carrying value, current | [1] | 225,000 | 225,000 |
Reported Value Measurement [Member] | The 10.625% Senior Notes [Member] | |||
Carrying value | [1] | 250,000 | 250,000 |
Estimate of Fair Value Measurement [Member] | Senior Unsecured Notes Due 2024 [Member] | |||
Carrying value, current | [1] | 225,000 | 225,000 |
Estimate of Fair Value Measurement [Member] | The 10.625% Senior Notes [Member] | |||
Carrying value | [1] | $ 250,000 | $ 250,000 |
[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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Noncash derivative gain (loss), net | $ 703 | $ 25,191 | $ 6,017 | $ (16,442) |
Cash payments on settled derivatives, net | (5,066) | (37,082) | (7,260) | (61,843) |
Derivative loss, net | $ (4,363) | $ (11,891) | $ (1,243) | $ (78,285) |
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, 2023 $ / bbl MMBbls | |
Deferred Premium Put Options Q1 2024 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 |
Price per Bbl (in USD per Barrel of Oil) | 53.83 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 |
Crude Oil Derivative Swap Q3 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 276 |
Price per Bbl (in USD per Barrel of Oil) | 72.30 |
Deferred Premium Put Options Q2 2024 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 |
Price per Bbl (in USD per Barrel of Oil) | 53.83 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 |
Deferred Premium Put Options Q3 2024 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 920 |
Price per Bbl (in USD per Barrel of Oil) | 53.83 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 |
Crude Oil Derivative Swap Q4 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 0 |
Price per Bbl (in USD per Barrel of Oil) | 0 |
Deferred Premium Put Options 2024 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 2,740 |
Price per Bbl (in USD per Barrel of Oil) | 53.83 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 |
Crude Oil Derivative Swap 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 276 |
Price per Bbl (in USD per Barrel of Oil) | 72.30 |
Deferred Premium Put Options Q3 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 644 |
Price per Bbl (in USD per Barrel of Oil) | 60.46 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 55.46 |
Deferred Premium Put Options Q4 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 920 |
Price per Bbl (in USD per Barrel of Oil) | 55.97 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 50.97 |
Deferred Premium Put Options 2023 [Member] | |
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 1,564 |
Price per Bbl (in USD per Barrel of Oil) | 57.82 |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 52.82 |
Note 5 - Derivative Financial_5
Note 5 - Derivative Financial Instruments - Net Derivative Liabilities By Counterparty (Details) - Commodity Contract [Member] $ in Thousands | Jun. 30, 2023 USD ($) |
Deriviative liabilities | $ (11,359) |
Bank of America, National Association [Member] | |
Deriviative liabilities | (7,994) |
Citizens Bank, National Association [Member] | |
Deriviative liabilities | $ (3,365) |
Note 6 - Exploratory Extensio_3
Note 6 - Exploratory Extension Well Costs (Details Textual) | 3 Months Ended |
Mar. 31, 2023 | |
Capitalized Exploratory Well Costs, Maximum Term (Year) | 1 year |
Note 6 - Exploratory Well Costs
Note 6 - Exploratory Well Costs - Exploratory Well Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Beginning capitalized exploratory/extension well costs | $ 186,427 |
Additions to exploratory/extension well costs | 322,902 |
Reclassification to proved properties | (428,306) |
Exploratory/extension well costs charged to exploration and abandonment expense | 0 |
Ending capitalized exploratory/extension well costs | $ 81,023 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2022 USD ($) | Aug. 08, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Nov. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2020 | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 14, 2022 USD ($) | Nov. 14, 2022 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | ||
Debt Instrument, Unamortized Discount, Total | [1] | $ 18,459 | $ 18,459 | $ 27,086 | |||||||||||
Payments of Debt Issuance Costs | 1,399 | $ 9,098 | |||||||||||||
Senior Unsecured Notes Due 2024 [Member] | |||||||||||||||
Debt Instrument, Unamortized Discount, Total | 34,800 | 34,800 | |||||||||||||
Debt Instrument, Face Amount | $ 225,000 | $ 225,000 | 250,000 | ||||||||||||
Long-Term Debt, Gross | $ 225,000 | $ 225,000 | 225,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 10% | 10% | ||||||||||||
Proceeds from Issuance of Debt | $ 202,900 | ||||||||||||||
Payments of Debt Issuance Costs | 22,100 | ||||||||||||||
The 10.625% Senior Notes [Member] | |||||||||||||||
Debt Instrument, Face Amount | $ 25,000 | $ 225,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.625% | 10.625% | 10.625% | ||||||||||||
Proceeds from Issuance of Debt | 26,300 | ||||||||||||||
Payments of Debt Issuance Costs | $ 223,700 | ||||||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 8,300 | ||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Long-Term Debt, Gross | 525,000 | $ 525,000 | $ 270,000 | ||||||||||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | 575,000 | $ 700,000 | 138,800 | 575,000 | 400,000 | $ 550,000 | $ 195,000 | |||||||
Line of Credit Facility, Current Borrowing Capacity | 400,000 | 138,800 | 400,000 | 525,000 | $ 195,000 | ||||||||||
Debt Instrument, Covenant, Minimum Cash Threshold for Prepayment to be Due | $ 75,000 | 75,000 | $ 75,000 | $ 250,000 | |||||||||||
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio | 3 | ||||||||||||||
Debt Instrument, Covenant, Hedged Notional Amounts, Less than Maximum EBITDAX, Minimum Percentage of Projected Production | 25% | 25% | |||||||||||||
Debt Instrument, Covenant, Hedged Notional Amounts, Greater than Maximum EBITDAX, Minimum Percentage of Projected Production | 50% | 50% | |||||||||||||
Debt Instrument, Covenant, Minimum Availability Percentage for Dividend and Distributions | 30% | 30% | 25% | 25% | |||||||||||
Debt Instrument, Covenant, Reduced Borrowing Base, Minimum Percentage of Principal | 25% | ||||||||||||||
Line of Credit Facility, Commitment Fee Amount | 575,000 | 575,000 | |||||||||||||
Debt Instrument, Covenant, Dividends and Distributions Limit | $ 4,000 | ||||||||||||||
Long-Term Debt, Gross | 525,000 | $ 0 | $ 270,000 | ||||||||||||
Debt Instrument, SOFR Floor | 0% | ||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||||||||
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] | Subsequent Event [Member] | |||||||||||||||
Debt Instrument, Restriction on Borrowings, Minimum Net Proceeds From Equity Securities | $ 95,000 | ||||||||||||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||||||||||
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio | 1.75 | ||||||||||||||
Fifth Third Bank, National Association [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||||
Debt Instrument, Covenant, Maximum Total Debt to EBITDAX Ratio | 1.25 | ||||||||||||||
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 Instrument, Unamortized Discount, Total | 34,800 | 34,800 | $ 34,800 | ||||||||||||
Accumulated Amortization, Debt Discount | 16,400 | 16,400 | 7,700 | ||||||||||||
Debt Issuance Costs, Gross | 20,400 | 20,400 | 19,700 | ||||||||||||
Accumulated Amortization, Debt Issuance Costs | $ 11,800 | $ 11,800 | $ 6,100 | ||||||||||||
[1]Discounts as of June 30, 2023 and December 31, 2022 consisted of $34.8 million and $34.8 million, respectively, in discounts less accumulated amortization of $16.4 million and $7.7 million, respectively. |
Note 7 - Long-term Debt - Long-
Note 7 - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Discounts, net (a) | [1] | $ (18,459) | $ (27,086) |
Debt issuance costs, net (b) | [2] | (8,532) | (13,565) |
Total debt | 973,009 | 704,349 | |
Less current portion of long-term debt, net | (741,155) | 0 | |
Long-term debt, net | 231,854 | 704,349 | |
Senior Unsecured Notes Due 2024 [Member] | |||
Debt, gross | 225,000 | 225,000 | |
Discounts, net (a) | (34,800) | ||
Revolving Credit Facility [Member] | |||
Debt, gross | 525,000 | 270,000 | |
The 10.625% Senior Notes [Member] | |||
Debt, gross | $ 250,000 | $ 250,000 | |
[1]Discounts as of June 30, 2023 and December 31, 2022 consisted of $34.8 million and $34.8 million, respectively, in discounts less accumulated amortization of $16.4 million and $7.7 million, respectively.[2]Debt issuance costs as of June 30, 2023 and December 31, 2022 consisted of $20.4 million and $19.7 million, respectively, in costs less accumulated amortization of $11.8 million and $6.1 million, respectively. |
Note 8 - Asset Retirement Obl_3
Note 8 - Asset Retirement Obligations - Asset Retirement Obligations Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Beginning asset retirement obligations | $ 7,502 | |||
Liabilities incurred from new wells | 186 | |||
Dispositions | (40) | |||
Accretion of discount | $ 120 | $ 66 | 238 | $ 120 |
Ending asset retirement obligations | $ 7,886 | $ 7,886 |
Note 9 - Incentive Plans (Detai
Note 9 - Incentive Plans (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 01, 2023 | Jun. 01, 2022 | Nov. 04, 2021 | Jun. 01, 2021 | Jul. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 3,984,000 | $ 14,579,000 | $ 8,038,000 | $ 18,555,000 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,564,500 | |||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | 555,000 | 10,800,000 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 43,000 | $ 43,000 | $ 1,100,000 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years | |||||||||
Share-Based Payment Arrangement, Option [Member] | Subsequent Event [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,900,000 | |||||||||
Share Based Compensation Arrangement by Share Based Payment Award, Options, Grants in Period, Value | $ 10,200,000 | |||||||||
Restricted Stock [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 3,600,000 | 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 | 9,600,000 | 9,600,000 | ||||||||
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) | 58,767 | 21,184 | 67,779 | |||||||
Restricted Stock [Member] | Outside Directors [Member] | June 1, 2023 [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | 63,000 | |||||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 694,000 | 694,000 | ||||||||
Restricted Stock [Member] | Outside Directors [Member] | June 1, 2022 [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | 305,000 | |||||||||
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 | 3,500,000 | 3,800,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 600,000 | |||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 9,400,000 | $ 9,400,000 | ||||||||
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 | $ 134,000 | $ 141,000 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Shares subject to awards issued under plan (in shares) | (11,502,727) | (11,517,228) | (9,983,727) |
The 2020 Long-term Incentive Plan [Member] | |||
Approved and authorized shares (in shares) | 14,459,464 | 14,340,324 | |
Shares subject to awards issued under plan (in shares) | (13,813,457) | (13,769,191) | |
Shares available for future grant (in shares) | 646,007 | 571,133 |
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, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Outstanding (in shares) | 11,517,228 | 9,983,727 | 9,983,727 | |
Outstanding (in dollars per share) | $ 12.20 | $ 10.19 | $ 10.19 | |
Outstanding (Year) | 7 years 8 months 12 days | 7 years 10 months 24 days | 8 years 8 months 12 days | |
Outstanding | $ 8,381 | $ 128,429 | $ 44,395 | |
Awards granted (in shares) | 1,564,500 | |||
Awards granted (in dollars per share) | $ 25.09 | |||
Exercised (in shares) | (11,834) | (12,000) | (12,000) | |
Exercised (in dollars per share) | $ 12.52 | $ 10 | ||
Forfeitures (in shares) | (2,667) | (18,999) | ||
Forfeitures (in dollars per share) | $ 29.67 | $ 18.66 | ||
Outstanding (in shares) | 11,502,727 | 11,517,228 | 9,983,727 | |
Outstanding (in dollars per share) | $ 12.20 | $ 12.20 | $ 10.19 | |
Vested (in shares) | 11,290,246 | 11,304,747 | ||
Vested (in dollars per share) | $ 12.02 | $ 12.02 | ||
Vested (Year) | 7 years 8 months 12 days | 7 years 10 months 24 days | ||
Vested | $ 8,381 | $ 127,591 | ||
Exercisable (in shares) | 11,290,246 | 11,304,747 | ||
Exercisable (in dollars per share) | $ 12.02 | $ 12.02 | ||
Exercisable (Year) | 7 years 8 months 12 days | 7 years 10 months 24 days | ||
Exercisable | $ 8,381 | $ 127,591 |
Note 10 - Commitments and Con_3
Note 10 - Commitments and Contingencies (Details Textual) | 6 Months Ended | |||
Jun. 30, 2023 USD ($) T MMBbls bbl | Dec. 31, 2022 USD ($) | Jul. 01, 2022 | Jun. 30, 2022 USD ($) | |
Operating Lease, Liability, Current | $ 622,000 | $ 343,000 | ||
Operating Lease, Liability, Noncurrent | $ 269,000 | 0 | ||
TXU Energy Retail Company LLC [Member] | ||||
Letters of Credit Outstanding, Amount | $ 1,700,000 | |||
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 | 25,239 | |||
Supply Commitment, Percent of Contracted Volume Delivered | 48% | |||
Supply Commitment, Remaining Minimum Amount Committed, Volume | MMBbls | 17.7 | |||
Supply Commitment, Amount Committed | $ 14,200,000 | |||
Connection Fee Commitments [Member] | ||||
Supply Commitment, Amount Committed | 553,000 | |||
Sand Commitments [Member] | ||||
Supply Commitment, Amount Committed | $ 19,100,000 | |||
Supply Commitment, Minimum Tons of Sand | 1,700,000 | |||
Supply Commitment, Sand Purchased | T | 762,000 | |||
Other Noncurrent Assets [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 876,000 | 333,000 | ||
Other Liabilities [Member] | ||||
Operating Lease, Liability | 891,000 | $ 343,000 | ||
Other Current Liabilities [Member] | ||||
Operating Lease, Liability, Current | 622,000 | |||
Other Noncurrent Liabilities [Member] | ||||
Operating Lease, Liability, Noncurrent | $ 269,000 |
Note 10 - Commitments and Con_4
Note 10 - Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Remainder of 2023 | $ 392,000 | |
2024 | 552,000 | |
Total lease payments | 944,000 | |
Less present value discount | (53,000) | |
Other Liabilities [Member] | ||
Operating Lease, Liability | $ 891,000 | $ 343,000 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details Textual) - Pilot Exploration Inc. [Member] Pure in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 31, 2022 | |
Supply Commitment, Minimum Barrels of Produced Water | 29.2 | |||
Water Treatment Services [Member] | ||||
Related Party Transaction, Amounts of Transaction | $ 2 | |||
Water Treatment Services [Member] | Flat Top Operating Area [Member] | ||||
Related Party Transaction, Amounts of Transaction | $ 6.5 | $ 1.5 | $ 1.6 |
Note 12 - Major Customers (Deta
Note 12 - Major Customers (Details Textual) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Lion Oil Trading and Transportation, LLC [Member] | ||
Concentration Risk, Percentage | 77% | 88% |
Energy Transfer Crude Marketing, LLC [Member] | ||
Concentration Risk, Percentage | 19% | 10% |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | ||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | |
Deferred Income Tax Liabilities, Net | 155,315 | 131,164 | |
State and Local Jurisdiction [Member] | Texas Margin Tax [Member] | |||
Deferred Income Tax Liabilities, Net | $ 6,700 | $ 4,100 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Deferred Tax Assets, Gross, Total | $ 3,400 |
Note 13 - Income Taxes - Income
Note 13 - Income Taxes - Income Tax Benefit and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Federal | $ 0 | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 | 0 |
Total current income tax expense | 0 | 0 | 0 | 0 |
Federal | 9,121 | 23,315 | 23,041 | 23,127 |
State | 523 | 757 | 1,110 | 633 |
Deferred income tax expense | 9,644 | 24,072 | 24,151 | 23,760 |
Total income tax expense | $ 9,644 | $ 24,072 | $ 24,151 | $ 23,760 |
Note 13 - Income Taxes - Effect
Note 13 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income tax expense at U.S. federal statutory rate | $ 8,709 | $ 21,343 | $ 22,309 | $ 17,810 |
State deferred income taxes | 523 | 848 | 1,110 | 724 |
Limited tax benefit due to stock-based compensation | 451 | 1,930 | 740 | 5,536 |
Other, net | (39) | (49) | (8) | (310) |
Total income tax expense | $ 9,644 | $ 24,072 | $ 24,151 | $ 23,760 |
Effective income tax rate | 23.30% | 23.70% | 22.70% | 28% |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Interest expense limitations | $ 24,497 | $ 10,623 |
Net operating loss carryforwards | 8,216 | 5,496 |
Stock-based compensation | 4,869 | 4,102 |
Unrecognized derivative losses | 2,453 | 3,756 |
Other | 50 | 32 |
Less: Valuation allowance | 0 | 0 |
Deferred tax assets | 40,085 | 24,009 |
Crude oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes | (195,400) | (155,169) |
Unrecognized derivative gains | 0 | (4) |
Deferred tax liabilities | (195,400) | (155,173) |
Net deferred tax liabilities | $ (155,315) | $ (131,164) |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Net income | $ 31,826 | $ 50,257 | $ 77,561 | $ (16,510) | $ 82,083 | $ 61,051 | |
Participating basic earnings (a) | [1] | (2,942) | (6,376) | (7,590) | (5,169) | ||
Basic earnings attributable to common stockholders | 28,884 | 77,185 | 74,493 | 55,882 | |||
Reallocation of participating earnings | 46 | 162 | 123 | 124 | |||
Diluted net income attributable to common stockholders | $ 28,930 | $ 71,347 | $ 74,616 | $ 55,006 | |||
Basic weighted average shares outstanding (in shares) | 111,227 | 103,178 | 111,227 | 99,530 | |||
Dilutive warrants and unvested stock options (in shares) | 2,592 | 5,928 | 3,741 | 5,191 | |||
Dilutive unvested restricted stock (in shares) | 2,159 | 2,122 | 2,159 | 2,122 | |||
Diluted weighted average shares outstanding (in shares) | 115,978 | 111,228 | 117,127 | 106,843 | |||
[1]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 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 | ||||||||||||||||||
May 25, 2023 | Feb. 24, 2023 | Jun. 27, 2022 | Jun. 21, 2022 | May 25, 2022 | Mar. 25, 2022 | Feb. 25, 2022 | May 31, 2023 | Apr. 30, 2023 | Feb. 28, 2023 | Jan. 31, 2023 | May 31, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Stock Issued During Period, Shares, Warrants and Stock Options Exercised | 162,129 | 977,588 | ||||||||||||||||||||
Stock Issued During Period, Shares, Warrant Exercises | (150,295) | (965,588) | ||||||||||||||||||||
Exercised (in shares) | (11,834) | (12,000) | (12,000) | |||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 3,522,117 | 371,517 | ||||||||||||||||||||
Stock Issued During Period, Shares, Warrant Exercises (in shares) | 150,295 | 965,588 | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 11,834 | 12,000 | 12,000 | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.05 | $ 0.05 | ||||||||||||||||
Dividends Payable | $ 53,000 | $ 53,000 | $ 53,000 | $ 53,000 | ||||||||||||||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 113,385,923 | 113,385,923 | 113,165,027 | |||||||||||||||||||
Class of Warrant or Right, Outstanding (in shares) | 8,134,977 | 8,134,977 | 8,285,272 | |||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 11.50 | $ 11.50 | ||||||||||||||||||||
Quarterly Dividend [Member] | ||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | ||||||||||||||||||
Dividends | $ 2,800,000 | $ 2,800,000 | $ 2,600,000 | $ 2,400,000 | ||||||||||||||||||
Dividend Equivalent [Member] | ||||||||||||||||||||||
Dividends | 282,000 | 283,000 | 214,000 | 214,000 | ||||||||||||||||||
Dividends Payable | $ 5,000 | $ 5,000 | $ 2,000 | $ 2,000 | ||||||||||||||||||
Flat Top Operating Area [Member] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 6,960,000 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
Aug. 25, 2023 USD ($) | May 25, 2023 USD ($) | Feb. 24, 2023 USD ($) | May 25, 2022 USD ($) | Feb. 25, 2022 USD ($) | Aug. 31, 2023 USD ($) | Aug. 08, 2023 USD ($) | Jul. 31, 2023 $ / shares $ / bbl shares | Jul. 31, 2023 USD ($) $ / shares $ / bbl | Jul. 31, 2023 $ / shares $ / bbl | Jul. 31, 2023 $ / shares $ / bbl MMBbls | Jul. 31, 2023 $ / shares $ / bbl bbl | May 31, 2023 USD ($) | Apr. 30, 2023 $ / shares | Feb. 28, 2023 USD ($) | Jan. 31, 2023 $ / shares | May 31, 2022 USD ($) | Apr. 30, 2022 $ / shares | Feb. 28, 2022 USD ($) | Jan. 31, 2022 $ / shares | Jun. 30, 2023 $ / shares | Mar. 31, 2023 $ / shares | Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Jun. 30, 2023 USD ($) $ / shares MMBbls | Jun. 30, 2022 USD ($) $ / shares | |
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.05 | $ 0.05 | ||||||||||||||||||||
Dividends Payable | $ 53,000 | $ 53,000 | $ 53,000 | $ 53,000 | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ (748,000) | $ (58,000) | ||||||||||||||||||||||||
Deferred Premium Put Options Q3 2024 [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 920 | |||||||||||||||||||||||||
Forecast [Member] | ||||||||||||||||||||||||||
Dividends | $ 3,200,000 | |||||||||||||||||||||||||
Dividends Payable | $ 54,000 | |||||||||||||||||||||||||
Subsequent Event [Member] | Public Stock Offering [Member] | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 14,835,000 | |||||||||||||||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 10.50 | $ 10.50 | $ 10.50 | $ 10.50 | $ 10.50 | |||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 151,200,000 | |||||||||||||||||||||||||
Subsequent Event [Member] | Public Stock Offering [Member] | Existing Stockholders [Member] | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 10,000,000 | |||||||||||||||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Fifth Third Bank, National Association [Member] | ||||||||||||||||||||||||||
Debt Instrument, Restriction on Borrowings, Minimum Net Proceeds From Equity Securities | $ 95,000,000 | |||||||||||||||||||||||||
Subsequent Event [Member] | Deferred Premium Put Options Q3 2024 [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | 920 | 8,000 | ||||||||||||||||||||||||
Subsequent Event [Member] | Deferred Premium Put Options Q3 2024 [Member] | Not Designated as Hedging Instrument [Member] | Minimum [Member] | ||||||||||||||||||||||||||
Derivative, Floor Price (in USD per Barrel of Oil) | $ / bbl | 74.46 | 74.46 | 74.46 | 74.46 | 74.46 | |||||||||||||||||||||
Quarterly Dividend [Member] | ||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | ||||||||||||||||||||||
Dividends | $ 2,800,000 | $ 2,800,000 | $ 2,600,000 | $ 2,400,000 | ||||||||||||||||||||||
Quarterly Dividend [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.025 | |||||||||||||||||||||||||
Dividend Equivalent [Member] | ||||||||||||||||||||||||||
Dividends | 282,000 | 283,000 | 214,000 | 214,000 | ||||||||||||||||||||||
Dividends Payable | $ 5,000 | $ 5,000 | $ 2,000 | $ 2,000 | ||||||||||||||||||||||
Dividend Equivalent [Member] | Forecast [Member] | ||||||||||||||||||||||||||
Dividends | 331,000 | |||||||||||||||||||||||||
Dividends Payable | $ 5,000 |
Note 16 - Subsequent Events - P
Note 16 - Subsequent Events - Price Risk Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member] | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2023 $ / bbl MMBbls | Jul. 31, 2023 $ / bbl bbl | Jun. 30, 2023 $ / bbl MMBbls | |
Deferred Premium Put Options Q1 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | ||
Crude Oil Derivative Swap Q3 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 276 | ||
Price per Bbl (in USD per Barrel of Oil) | 72.30 | ||
Deferred Premium Put Options Q2 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | ||
Deferred Premium Put Options Q3 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 920 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | ||
Crude Oil Derivative Swap Q4 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 0 | ||
Price per Bbl (in USD per Barrel of Oil) | 0 | ||
Deferred Premium Put Options 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 2,740 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | ||
Crude Oil Derivative Swap 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 276 | ||
Price per Bbl (in USD per Barrel of Oil) | 72.30 | ||
Deferred Premium Put Options Q3 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 644 | ||
Price per Bbl (in USD per Barrel of Oil) | 60.46 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 55.46 | ||
Deferred Premium Put Options Q4 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 920 | ||
Price per Bbl (in USD per Barrel of Oil) | 55.97 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 50.97 | ||
Deferred Premium Put Options 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 1,564 | ||
Price per Bbl (in USD per Barrel of Oil) | 57.82 | ||
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 52.82 | ||
Subsequent Event [Member] | Deferred Premium Put Options Q1 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | 53.83 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | 48.83 | |
Subsequent Event [Member] | Crude Oil Derivative Swap Q3 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 1,072.3 | ||
Price per Bbl (in USD per Barrel of Oil) | 73.90 | 73.90 | |
Subsequent Event [Member] | Deferred Premium Put Options Q2 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 910 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | 53.83 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | 48.83 | |
Subsequent Event [Member] | Deferred Premium Put Options Q3 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | 920 | 8,000 | |
Price per Bbl (in USD per Barrel of Oil) | 53.83 | 53.83 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | 48.83 | |
Subsequent Event [Member] | Crude Oil Derivative Swap Q4 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 671.6 | ||
Price per Bbl (in USD per Barrel of Oil) | 74.46 | 74.46 | |
Subsequent Event [Member] | Deferred Premium Put Options 2024 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 2,740 | ||
Price per Bbl (in USD per Barrel of Oil) | 53.83 | 53.83 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 48.83 | 48.83 | |
Subsequent Event [Member] | Crude Oil Derivative Swap 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 1,743.9 | ||
Price per Bbl (in USD per Barrel of Oil) | 74.12 | 74.12 | |
Subsequent Event [Member] | Deferred Premium Put Options Q3 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 644 | ||
Price per Bbl (in USD per Barrel of Oil) | 60.46 | 60.46 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 55.46 | 55.46 | |
Subsequent Event [Member] | Deferred Premium Put Options Q4 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 920 | ||
Price per Bbl (in USD per Barrel of Oil) | 55.97 | 55.97 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 50.97 | 50.97 | |
Subsequent Event [Member] | Deferred Premium Put Options 2023 [Member] | |||
Volume (MBbls) (Million Barrels of Oil) | MMBbls | 1,564 | ||
Price per Bbl (in USD per Barrel of Oil) | 57.82 | 57.82 | |
Price per Bbl (Net of Premium) (in USD per Barrel of Oil) | 52.82 | 52.82 |