Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Document Information [Line Items] | ||
Entity Registrant Name | PHX MINERALS INC. | |
Entity Central Index Key | 0000315131 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-31759 | |
Entity Tax Identification Number | 73-1055775 | |
Entity Address, Address Line One | 1320 South University Drive | |
Entity Address, Address Line Two | Suite 720 | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76107 | |
City Area Code | 405 | |
Local Phone Number | 948-1560 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 37,007,804 | |
Title of each class | Common Stock, $0.01666 par value | |
Trading Symbol(s) | PHX | |
Name of each exchange on which registered | NYSE |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 1,161,460 | $ 2,115,652 | |
Natural gas, oil, and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 7,455,323 | 9,783,996 | |
Refundable income taxes | 776,077 | ||
Held for sale assets | 6,420,051 | ||
Derivative contracts, net | [1] | 2,040,999 | |
Other | 829,818 | 1,543,956 | |
Total current assets | 12,263,677 | 19,863,655 | |
Properties and equipment at cost, based on successful efforts accounting: | |||
Producing natural gas and oil properties | 187,426,879 | 181,431,139 | |
Non-producing natural gas and oil properties | 61,931,041 | 57,781,644 | |
Other | 1,245,782 | 1,122,436 | |
Gross properties and equipment, at cost, based on successful efforts accounting | 250,603,702 | 240,335,219 | |
Less accumulated depreciation, depletion and amortization | (108,382,522) | (107,085,212) | |
Net properties and equipment | 142,221,180 | 133,250,007 | |
Derivative contracts, net | [1] | 112,456 | 141,345 |
Operating lease right-of-use assets | 674,095 | 706,871 | |
Other, net | 652,966 | 695,399 | |
Total assets | 155,924,374 | 154,657,277 | |
Current liabilities: | |||
Accounts payable | 308,508 | 504,466 | |
Derivative contracts, net | [1] | 1,534,034 | |
Income taxes payable | 576,427 | ||
Current portion of operating lease liability | 222,001 | 217,656 | |
Held for Sale Liabilities | 889,155 | ||
Accrued liabilities and other | 1,860,808 | 3,121,522 | |
Total current liabilities | 2,391,317 | 6,843,260 | |
Long-term debt | 26,000,000 | 33,300,000 | |
Deferred income taxes, net | 5,387,906 | 2,453,906 | |
Asset retirement obligations | 1,032,257 | 1,027,777 | |
Operating lease liability, net of current portion | 871,971 | 929,208 | |
Total liabilities | 35,683,451 | 44,554,151 | |
Stockholders' equity: | |||
Common Stock, $0.01666 par value; 54,000,500 shares authorized and 35,938,206 issued at March 31, 2023; 54,000,500 shares authorized and 35,938,206 issued at December 31, 2022 | 598,731 | 598,731 | |
Capital in excess of par value | 43,134,738 | 43,344,916 | |
Deferred directors' compensation | 1,313,162 | 1,541,070 | |
Retained earnings | 78,428,984 | 68,925,774 | |
Stockholders' Equity | 123,475,615 | 114,410,491 | |
Less treasury stock, at cost; 225,484 shares at March 31, 2023, and 300,272 shares at December 31, 2022 | (3,234,692) | (4,307,365) | |
Total stockholders' equity | 120,240,923 | 110,103,126 | |
Total liabilities and stockholders' equity | $ 155,924,374 | $ 154,657,277 | |
[1] See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement Of Financial Position [Abstract] | ||
Allowance for uncollectable accounts | $ 0 | $ 0 |
Common stock, par value | $ 0.01666 | $ 0.01666 |
Common stock, shares authorized | 54,000,500 | 54,000,500 |
Common stock, shares issued | 35,938,206 | 35,938,206 |
Treasury stock, shares | 225,484 | 300,272 |
Condensed Statements Of Operati
Condensed Statements Of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Natural gas, oil and NGL sales | $ 11,857,247 | $ 14,783,865 |
Lease bonuses and rental income | 313,150 | 161,908 |
Gains (losses) on derivative contracts | 3,802,820 | (12,983,406) |
Revenues | 15,973,217 | 1,962,367 |
Costs and expenses: | ||
Lease operating expenses | 545,767 | 929,454 |
Transportation, gathering and marketing | 1,128,756 | 1,488,518 |
Production taxes | 581,433 | 697,393 |
Depreciation, depletion and amortization | 1,889,990 | 2,121,116 |
Provision for impairment | 2,073 | |
Interest expense | 557,473 | 230,212 |
General and administrative | 2,981,909 | 2,744,264 |
Losses (gains) on asset sales and other | (4,334,428) | (2,261,135) |
Total costs and expenses | 3,352,973 | 5,949,822 |
Income (loss) before provision (benefit) for income taxes | 12,620,244 | (3,987,455) |
Provision (benefit) for income taxes | 3,067,000 | 33,000 |
Net income (loss) | $ 9,553,244 | $ (4,020,455) |
Basic earnings (loss) per common share | $ 0.27 | $ (0.12) |
Diluted earnings (loss) per common share | $ 0.27 | $ (0.12) |
Weighted average shares outstanding: | ||
Basic | 35,935,791 | 34,292,455 |
Diluted | 35,935,791 | 34,292,455 |
Dividends per share of common stock paid in period | $ 0.0225 | $ 0.015 |
Statements Of Stockholders' Equ
Statements Of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Deferred Directors' Compensation [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balances at Dec. 31, 2021 | $ 88,340,552 | $ 573,192 | $ 36,741,266 | $ 1,835,721 | $ 54,798,980 | $ (5,608,607) |
Balances, shares at Dec. 31, 2021 | 34,405,287 | |||||
Balances, Treasury shares at Dec. 31, 2021 | (377,232) | |||||
Net income (loss) | (4,020,455) | (4,020,455) | ||||
Cost of equity issuance | (48,166) | (48,166) | ||||
At-the market offering | 8,017 | $ 45 | 7,972 | |||
At-the market offering, shares | 2,710 | |||||
Restricted stock award expense | 433,137 | 433,137 | ||||
Distribution of deferred directors' compensation | $ 1,024 | 462,735 | (463,759) | |||
Distribution of deferred directors' compensation, shares | 61,452 | |||||
Increase in deferred directors' compensation charged to expense | 35,461 | 35,461 | ||||
Balances at Mar. 31, 2022 | 84,748,546 | $ 574,261 | 37,596,944 | 1,407,423 | 50,778,525 | $ (5,608,607) |
Balances, shares at Mar. 31, 2022 | 34,469,449 | |||||
Balances, Treasury shares at Mar. 31, 2022 | (377,232) | |||||
Balances at Dec. 31, 2022 | $ 110,103,126 | $ 598,731 | 43,344,916 | 1,541,070 | 68,925,774 | $ (4,307,365) |
Balances, shares at Dec. 31, 2022 | 35,938,206 | |||||
Balances, Treasury shares at Dec. 31, 2022 | (300,272) | (300,272) | ||||
Net income (loss) | $ 9,553,244 | 9,553,244 | ||||
Restricted stock award expense | 580,998 | 580,998 | ||||
Dividends | (50,034) | (50,034) | ||||
Distribution of restricted stock to officers and directors | (766,846) | $ 766,846 | ||||
Distribution of restricted stock to officers and directors, shares | 53,476 | |||||
Distribution of deferred directors' compensation | (24,330) | (281,497) | $ 305,827 | |||
Distribution of deferred directors' compensation, shares | 21,312 | |||||
Increase in deferred directors' compensation charged to expense | 53,589 | 53,589 | ||||
Balances at Mar. 31, 2023 | $ 120,240,923 | $ 598,731 | $ 43,134,738 | $ 1,313,162 | $ 78,428,984 | $ (3,234,692) |
Balances, shares at Mar. 31, 2023 | 35,938,206 | |||||
Balances, Treasury shares at Mar. 31, 2023 | (225,484) | (225,484) |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net income (loss) | $ 9,553,244 | $ (4,020,455) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 1,889,990 | 2,121,116 |
Impairment of producing properties | 2,073 | |
Provision for deferred income taxes | 2,934,000 | (339,000) |
Gain from leasing fee mineral acreage | (313,150) | (160,829) |
Proceeds from leasing fee mineral acreage | 373,878 | 233,744 |
Net (gain) loss on sales of assets | (4,417,983) | (2,334,644) |
Directors' deferred compensation expense | 53,589 | 35,461 |
Total (gain) loss on derivative contracts | (3,802,820) | 12,983,406 |
Cash receipts (payments) on settled derivative contracts | 816,838 | (176,510) |
Restricted stock award expense | 580,998 | 433,137 |
Other | 35,904 | (8,655) |
Cash provided (used) by changes in assets and liabilities: | ||
Natural gas, oil and NGL sales receivables | 2,328,673 | (1,431,299) |
Other current assets | 123,948 | 120,291 |
Accounts payable | (175,207) | 4,062 |
Income taxes receivable | (776,077) | |
Other non-current assets | 40,576 | 54,722 |
Income taxes payable | (576,427) | (246,206) |
Accrued liabilities | 261,430 | 27,989 |
Total adjustments | (619,767) | 11,316,785 |
Net cash provided by operating activities | 8,933,477 | 7,296,330 |
Investing Activities | ||
Capital expenditures | (190,826) | (86,671) |
Acquisition of minerals and overriding royalty interests | (10,236,615) | (9,274,447) |
Net proceeds from sales of assets | 9,210,005 | 2,294,480 |
Net cash provided (used) by investing activities | (1,217,436) | (7,066,638) |
Financing Activities | ||
Borrowings under Credit Facility | 6,000,000 | 6,000,000 |
Payments of loan principal | (13,300,000) | (2,000,000) |
Net proceeds from equity issuance | (40,150) | |
Cash receipts from (payments on) off-market derivative contracts | (560,162) | (3,527,738) |
Payments of dividends | (810,071) | (517,479) |
Net cash provided (used) by financing activities | (8,670,233) | (85,367) |
Increase (decrease) in cash and cash equivalents | (954,192) | 144,325 |
Cash and cash equivalents at beginning of period | 2,115,652 | 1,559,350 |
Cash and cash equivalents at end of period | 1,161,460 | 1,703,675 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid (net of capitalized interest) | 611,922 | 208,000 |
Income taxes paid (net of refunds received) | 1,485,505 | 618,206 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Dividends declared and unpaid | 50,034 | |
Gross additions to properties and equipment | 10,996,880 | 9,338,855 |
Net (increase) decrease in accounts payable for properties and equipment additions | (569,439) | 22,263 |
Capital expenditures and acquisitions | $ 10,427,441 | $ 9,361,118 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Principles | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Principles | NOTE 1: Basis of Presentation and Accounting Principles Basis of Presentation The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for a full fiscal year. As previously disclosed, in December 2022, the Board approved a change in the Company’s fiscal year end from September 30 to December 31 to be in-line with our peer group. As a result, the Company’s current fiscal year runs from January 1, 2023 through December 31, 2023, and therefore references in this Form 10-Q to 2023 refer to the annual period from January 1, 2023 through December 31, 2023. Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or the “Company” refer to PHX Minerals Inc. Accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | NOTE 2: Revenues Revenues from contracts with customers Natural gas, oil and NGL sales Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control of the product has been transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate. Disaggregation of natural gas, oil and NGL revenues The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Royalty Interest Working Interest Total Natural gas revenue $ 6,186,021 $ 724,748 $ 6,910,769 Oil revenue 3,432,950 679,838 4,112,788 NGL revenue 504,770 328,920 833,690 Natural gas, oil and NGL sales $ 10,123,741 $ 1,733,506 $ 11,857,247 Three Months Ended March 31, 2022 Royalty Interest Working Interest Total Natural gas revenue $ 5,621,024 $ 2,914,969 $ 8,535,993 Oil revenue 2,550,462 2,161,244 4,711,706 NGL revenue 707,508 828,658 1,536,166 Natural gas, oil and NGL sales $ 8,878,994 $ 5,904,871 $ 14,783,865 Prior-period performance obligations and contract balances The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company’s balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the quarters ended March 31, 2023 and 2022, revenue recognized during the reporting period related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate. As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide to it. Through cash received on new wells, in the quarters ended March 31, 2023 and 2022, the Company identified several producing properties on its minerals that had production dates prior to the quarters ended March 31, 2023 and 2022. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in natural gas, oil and NGL sales receivables. In connection with obtaining more relevant information on new wells on Company acreage during the quarters ended March 31, 2023 and March 31, 2022 , the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $ 876,704 of which $ 64,900 related to the production periods before October 1, 2022 and $ 811,804 related to the three months ended December 31, 2022, and the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $ 592,758 of which $ 156,169 related to the production periods before October 1, 2021 and $ 436,589 related to three months ended December 31, 2021, respectively. Lease bonus revenue The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company’s contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932 (Extractive Activities—Oil and Gas), and upon leasing, it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral interests being treated as a gain. The excess of lease bonus above the mineral interests basis is shown in the lease bonuses and rental income line item on the Company’s Statements of Operations. Natural gas and oil derivative contracts See Note 9 for discussion of the Company’s accounting for derivative contracts. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 3: Income Taxes The Company’s provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from excess federal and Oklahoma percentage depletion, which are permanent tax benefits, and the change in valuation allowance from prior year. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that exceeds cost depletion, which is calculated on a unit-of-production basis. The Company completes an evaluation of the expected realization of the Company’s gross deferred tax assets each quarter. Excess tax benefits and deficiencies of stock-based compensation are recognized as provision (benefit) for income taxes in the Company’s Statements of Operations. Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with detailed well-by-well calculations at fiscal year-end. Depending upon whether a provision for income taxes or a benefit for income taxes is expected for a year, federal and Oklahoma excess percentage depletion will either decrease or increase the effective tax rate, respectively. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. As of March 31, 2023, the Company completed an evaluation of the expected realization of its gross deferred tax assets. As a result of its evaluation, the Company concluded a valuation allowance is required for certain state deferred tax assets and for the quarter ended March 31, 2023 , the change in the Company’s valuation allowance from December 31, 2022 is a decrease of $ 5,000 recorded in the income tax provision. The Company’s effective tax rate for the quarter ended March 31, 2023 was a 24 % provision as compared to a 1 % provision for the quarter ended March 31, 2022 . |
Basic And Diluted Earnings (Los
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") | NOTE 4: Basic and Diluted Earnings (Loss) Per Common Share (“EPS”) Basic earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors’ deferred compensation shares, during the period. Diluted earnings (loss) per share of Common Stock is calculated using net income (loss) divided by the weighted average number of voting shares of Common Stock outstanding, including unissued, vested directors’ deferred compensation shares and any other potentially dilutive shares of Common Stock, during the period. Participating securities had no effect on basic and diluted EPS at March 31, 2023. For the quarters ended March 31, 2023 and 2022 , the Company excluded restricted stock in the diluted EPS calculation that would have been antidilutive. The average shares outstanding of restricted stock excluded from the diluted EPS was 498,431 and 161,295 for the quarters ended March 31, 2023 and 2022, respectively. The following table presents a reconciliation of the components of basic and diluted EPS. Three Months Ended March 31, 2023 2022 Basic EPS Numerator: Basic net income (loss) $ 9,553,244 $ ( 4,020,455 ) Denominator: Common Shares 35,698,363 34,056,316 Unissued, directors' deferred compensation shares 237,428 236,139 Basic weighted average shares outstanding 35,935,791 34,292,455 Basic EPS $ 0.27 $ ( 0.12 ) Diluted EPS Numerator: Basic net income (loss) $ 9,553,244 $ ( 4,020,455 ) Diluted net income (loss) 9,553,244 ( 4,020,455 ) Denominator: Basic weighted average shares outstanding 35,935,791 34,292,455 Effects of dilutive securities: Unvested restricted stock - - Diluted weighted average shares outstanding 35,935,791 34,292,455 Diluted EPS $ 0.27 $ ( 0.12 ) |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 5: Long-Term Debt The Company has a $ 100,000,000 credit facility (the “Credit Facility”) with a syndicate of banks led by Independent Bank pursuant to a credit agreement entered into in September 2021 (as amended, the “Credit Agreement”). The Credit Facility had a borrowing base of $ 50,000,000 as of March 31, 2023 , which was reduced to $ 45,000,000 on May 5, 2023 in connection with the regularly scheduled semi-annual redetermination, and has a maturity date of September 1, 2025 . The Credit Facility is secured by the Company’s personal property and at least 75 % of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) SOFR plus an applicable margin ranging from 2.750 % to 3.750 % per annum based on the Company’s Borrowing Base Utilization or (b) the greater of (1) the Prime Rate in effect for such day, or (2) the overnight cost of federal funds as announced by the U.S. Federal Reserve System in effect on such day plus one-half of one percent ( 0.50 %), plus, in each case, an applicable margin ranging from 1.750 % to 2.750 % per annum based on the Company’s Borrowing Base Utilization. The election of Independent Bank prime or SOFR is at the Company’s discretion. The interest rate spread from Independent Bank prime or SOFR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from SOFR or the prime rate increases as a larger percent of the borrowing base is advanced. At March 31, 2023, the effective interest rate was 8.03 % . The Company’s debt is recorded at the carrying amount on its balance sheets. The carrying amount of the debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in “Other, net” on the Company’s balance sheets. Total debt issuance cost, net of amortization, as of March 31, 2023 was $ 275,213 . The debt issuance cost is amortized over the life of the Credit Facility. Determinations of the borrowing base under the Credit Facility are made semi-annually (usually June and December) or whenever the lending banks, in their sole discretion, believe that there has been a material change in the value of the Company’s natural gas and oil properties. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain restrictions on the Company’s ability to incur debt, grant liens, make fundamental changes and engage in certain transactions with affiliates. The Credit Facility also restricts the Company’s ability to make certain restricted payments if before or after the Restricted Payment (i) the Available Commitment is less than ten percent ( 10 %) of the Borrowing Base or (ii) the Leverage Ratio on a pro forma basis is greater than 2.50 to 1.00. In addition, the Company is required to maintain certain financial ratios, a current ratio (as described in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDAX (as defined in the Credit Facility) of no more than 3.5 to 1.0 based on the trailing twelve months. At March 31, 2023, the Company was in compliance with the covenants of the Credit Facility, had $ 26,000,000 in outstanding borrowings and had $ 24,000,000 available for borrowing under the Credit Facility. All capitalized terms in this description of the Credit Facility that are not otherwise defined in this Form 10-Q have the meaning assigned to them in the Credit Agreement. |
Deferred Compensation Plan For
Deferred Compensation Plan For Non-Employee Directors | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Deferred Compensation Plan For Non-Employee Directors | NOTE 6: Deferred Compensation Plan for Non-Employee Directors Annually, non-employee directors may elect to be included in the Deferred Compensation Plan for Non-Employee Directors. This plan provides that each outside director may individually elect to be credited with future unissued shares of Company Common Stock rather than cash for all or a portion of their annual retainers and Board and committee meeting fees. These unissued shares are recorded to each director’s deferred compensation account at the closing market price of the shares on the payment dates of the annual retainers. Only upon a director’s retirement, termination or death or a change-in-control of the Company will the shares recorded for such director be issued under this plan. Directors may elect to receive shares, when issued, over annual time periods of up to ten years . The promise to issue such shares in the future is an unsecured obligation of the Company. |
Restricted Stock Plan
Restricted Stock Plan | 3 Months Ended |
Mar. 31, 2023 | |
Restricted Stock Plan [Abstract] | |
Restricted Stock Plan | NOTE 7: Long Term Incentive Plan On January 31, 2023, the Company granted shares of Common Stock in the form of time-based and market-based restricted stock to the employees and officers of the Company. Officers were awarded 299,900 market-based shares with a fair value on their award date of $ 1,541,893 . Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. Both employees and certain officers were also awarded 97,053 time-based shares with a fair value on the award date of $ 350,362 . The shares issued to employees time-vest ratably over a three-year period ending in December of 2025, and the shares awarded to the officers cliff vest at the end of a three-year period ending in December of 2025. All shares granted on January 31, 2023 have voting rights during the vesting period. Compensation expense for the restricted stock awards is recognized in G&A. Forfeitures of awards are recognized when they occur. The following table summarizes the Company’s pre-tax compensation expense for the three months ended March 31, 2023 and 2022 related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended March 31, 2023 2022 Market-based, restricted stock $ 523,410 $ 313,872 Time-based, restricted stock 57,588 119,265 Total compensation expense $ 580,998 $ 433,137 A summary of the Company’s unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized is shown in the following table: As of March 31, 2023 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 2,015,065 1.51 Time-based, restricted stock 519,875 2.37 Total $ 2,534,940 |
Properties And Equipment
Properties And Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property Plant And Equipment [Abstract] | |
Properties And Equipment | NOTE 8: Properties and Equipment Acquisitions The Company made the following property acquisitions during the three-month periods ended March 31, 2023 and 2022. Quarter Ended Net royalty acres (1)(2) Cash Total Purchase Price (1) Area of Interest March 31, 2023 913 $ 10.8 million $ 10.8 million Haynesville / SCOOP March 31, 2022 825 $ 9.3 million $ 9.3 million Haynesville / SCOOP (1) Excludes subsequent closing adjustments and insignificant acquisitions. (2) An estimated net royalty equivalent was used for the minerals included in the net royalty acres. All purchases made in 2023 and 2022 were for mineral and royalty acreage and were accounted for as asset acquisitions. Divestitures The Company made the following property divestitures during the three-month periods ended March 31, 2023 and 2022. Revenue and expenses recognized between the effective date and close date of divestitures is recorded in the Operating Activities section in the Statements of Cash Flows. Quarter Ended Net mineral acres (1) / Wellbores (2) Sale Price (3) Gain/(Loss) (3) Location March 31, 2023 757 acres $ 0.3 million $ 0.3 million OK / TX 268 wellbores $ 10.7 million $ 4.1 million (4) OK / TX March 31, 2022 7,201 acres $ 2.1 million $ 2.1 million NM / TX (1) Number of net mineral acres sold. (2) Number of gross wellbores associated with working interests sold. (3) Excludes subsequent closing adjustments and insignificant divestitures. (4) Excludes $ 6.1 million loss recognized as an impairment in the quarter ended December 31, 2022 related to assets and liabilities held for sale as of December 31, 2022. Natural Gas, Oil and NGL Reserves Management considers the estimation of the Company’s natural gas, oil and NGL reserves to be the most significant of its judgments and estimates. Changes in natural gas, oil and NGL reserve estimates affect the Company’s calculation of DD&A, provision for retirement of assets and assessment of the need for asset impairments. On an annual basis, with a semi-annual update, the Company’s independent consulting petroleum engineer, with assistance from Company staff, prepares estimates of natural gas, oil and NGL reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geologic and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated natural gas, oil and NGL reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month natural gas, oil and NGL price for each month within the 12 -month period prior to the balance sheet date, held flat over the life of the properties. However, projected future natural gas, oil and NGL pricing assumptions are used by management to prepare estimates of natural gas, oil and NGL reserves and future net cash flows used in asset impairment assessments and in formulating management’s overall operating decisions. Natural gas, oil and NGL prices are volatile, affected by worldwide production and consumption, and are outside the control of management. Assets and liabilities held for sale In the quarter ended December 31, 2022, the Company entered into two agreements to sell working interest in the Arkoma Basin and the Eagle Ford Play, and the Company recorded an impairment of $ 6.1 million to reduce the net book value of the working interest in the Arkoma Basin to fair value less cost to sell. As of December 31, 2022, the Arkoma Basin and Eagle Ford Play working interests had a net carrying value of approximately $ 5.5 million and were considered held for sale, resulting in the reclassification of $ 6.4 million of properties, plants and equipment (PP&E) to “Held for sale assets” and $ 0.9 million of asset retirement obligations, to “Held for sale liabilities” on the balance sheet. The Company received $ 0.8 million in deposits related to the held for sale assets recorded in “Accrued liabilities and other” on the balance sheet during the quarter ended December 31, 2022. These two divestitures closed in January of 2023. Impairment Company management monitors all long-lived assets, principally natural gas and oil properties, for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as inflation rates; future drilling and completion costs; future sales prices for natural gas, oil and NGL; future production costs; estimates of future natural gas, oil and NGL reserves to be recovered and the timing thereof; the economic and regulatory climates; and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to natural gas, oil and NGL reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations to reflect any material changes since the prior report was issued and then utilizes updated projected future price decks current with the period. For the quarters ended March 31, 2023 and 2022 , management’s assessment resulted in no impairment provisions on producing properties. The Company wrote off $ 2,073 on wells assigned to the operator with zero consideration received during the quarter ended March 31, 2023. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 9: Derivatives The Company has entered into commodity price derivative agreements, including fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company’s exposure to short-term fluctuations in the price of natural gas and oil. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price, or require payments by the Company if the index price is above the fixed price. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. These contracts cover only a portion of the Company’s natural gas and oil production and provide only partial price protection against declines in natural gas and oil prices. The Company’s derivative contracts are currently with BP Energy Company (“BP”). The derivative contracts with BP are secured under the Credit Facility with Independent Bank (see Note 5: Long-Term Debt). The derivative instruments have settled or will settle based on the prices below: Derivative Contracts in Place as of March 31, 2023 Calendar Period Contract total volume Index Contract average price Natural gas costless collars 2023 780,000 Mmbtu NYMEX Henry Hub $ 3.38 floor / $ 6.47 ceiling 2024 755,000 Mmbtu NYMEX Henry Hub $ 3.96 floor / $ 6.51 ceiling Natural gas fixed price swaps 2023 1,220,000 Mmbtu NYMEX Henry Hub $ 3.42 2024 300,000 Mmbtu NYMEX Henry Hub $ 3.47 Oil costless collars 2023 10,000 Bbls NYMEX WTI $ 75.00 floor / $ 96.00 ceiling 2024 23,450 Bbls NYMEX WTI $ 64.11 floor / $ 76.28 ceiling Oil fixed price swaps 2023 47,500 Bbls NYMEX WTI $ 74.55 Derivative Settlements during the Three Months Ended March 31, 2023 Settlement Contract period (1) Production volume Index Contract price (paid) received Natural gas costless collars January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 3.00 floor / $ 4.70 ceiling $ 10,800 January 2023 45,000 Mmbtu NYMEX Henry Hub $ 3.50 floor / $ 4.05 ceiling $ ( 29,655 ) January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 10.00 ceiling $ 154,620 January - March 2023 40,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 14.50 ceiling $ 309,240 January - March 2023 35,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 12.40 ceiling $ 270,585 Natural gas fixed price swaps January - February 2023 125,000 Mmbtu NYMEX Henry Hub $ 2.83 $ ( 269,750 ) January - March 2023 50,000 Mmbtu NYMEX Henry Hub $ 3.70 $ 40,800 March 2023 100,000 Mmbtu NYMEX Henry Hub $ 3.37 $ 91,900 January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 3.57 $ 8,820 Oil costless collars January - February 2023 2,500 Bbls NYMEX WTI $ 75.00 floor / $ 96.00 ceiling $ - Oil fixed price swaps December 2022 9,000 Bbls NYMEX WTI $ 44.25 $ ( 290,412 ) December 2022 1,000 Bbls NYMEX WTI $ 94.49 $ 17,972 January - February 2023 1,000 Bbls NYMEX WTI $ 64.00 $ ( 27,025 ) January - February 2023 1,500 Bbls NYMEX WTI $ 67.55 $ ( 29,888 ) January - February 2023 750 Bbls NYMEX WTI $ 70.05 $ ( 11,194 ) January - February 2023 1,500 Bbls NYMEX WTI $ 80.80 $ 9,863 Total (paid) received $ 256,676 (1) Natural gas derivatives settle at first of the month pricing and oil derivatives settle at a monthly daily average. The Company has elected not to complete all of the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges. The Company’s fair value of derivative contracts was a net asset of $ 2,153,455 as of March 31, 2023, and a net liability of $ 1,392,689 as of December 31, 2022 . Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods. Three Months Ended March 31, 2023 2022 Cash received (paid) on derivative contracts: Natural gas costless collars $ 715,590 $ ( 152,190 ) Natural gas fixed price swaps (1) 83,100 ( 474,935 ) Oil costless collars - - Oil fixed price swaps (1) ( 168,269 ) ( 583,641 ) Cash received (paid) on derivative contracts, net $ 630,421 $ ( 1,210,766 ) Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ 583,601 $ ( 1,465,603 ) Natural gas fixed price swaps 2,173,378 ( 7,686,898 ) Oil costless collars 22,262 - Oil fixed price swaps 393,158 ( 2,620,139 ) Non-cash gain (loss) on derivative contracts, net $ 3,172,399 $ ( 11,772,640 ) Gains (losses) on derivative contracts, net $ 3,802,820 $ ( 12,983,406 ) (1) For the three months ended March 31, 2023 and 2022, excludes $ 373,745 and $ 2,493,481 , respectively, of cash paid to settle off-market derivative contracts that are not reflected on the Condensed Statements of Operations. Total cash paid related to off-market derivatives was $ 560,162 and $ 3,527,738 , respectively, for the three months ended March 31, 2023 and 2022 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows. The fair value amounts recognized for the Company’s derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice of whether or not to offset, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the Company’s balance sheets. The following table summarizes and reconciles the Company’s derivative contracts’ fair values at a gross level back to net fair value presentation on the Company’s balance sheets at March 31, 2023 and December 31, 2022. The Company has offset all amounts subject to master netting agreements in the Company's balance sheets at March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Gross amounts recognized $ 2,462,101 $ 421,102 $ 326,656 $ 214,200 $ 908,001 $ 2,442,035 $ 627,664 $ 486,319 Offsetting adjustments ( 421,102 ) ( 421,102 ) ( 214,200 ) ( 214,200 ) ( 908,001 ) ( 908,001 ) ( 486,319 ) ( 486,319 ) Net presentation on condensed balance sheets $ 2,040,999 $ - $ 112,456 $ - $ - $ 1,534,034 $ 141,345 $ - (a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10: Fair Value Measurements Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the financial asset or liability. The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2023: Fair Value Measurement at March 31, 2023 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Financial Assets (Liabilities): Derivative Contracts - Swaps $ - $ 827,019 $ - $ 827,019 Derivative Contracts - Collars $ - $ 1,326,436 $ - $ 1,326,436 Level 2 – Market Approach - The fair values of the Company’s swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. At March 31, 2023 and December 31, 2022 , the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. Financial instruments include long-term debt, the valuation of which is classified as Level 2 as the carrying amount of the Company’s debt under the Credit Facility approximates fair value because the interest rates are reflective of market rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11: Commitments and Contingencies Litigation The Company may be the subject of threatened or pending legal actions and contingencies in the normal course of conducting our business. The Company provides for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company ’ s future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. For certain types of claims, the Company maintains insurance coverage for personal injury and property damage, product liability and other liability coverages in amounts and with deductibles that it believes are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against the Company. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12: Subsequent Events Debt Redetermination Subsequent to March 31, 2023, the Company entered into the Fourth Amendment to the Credit Agreement on May 5, 2023 pursuant to which, among other changes, the borrowing base under the Company’s Credit Facility decreased from $ 50.0 million to $ 45.0 million in connection with its regularly scheduled semi-annual redetermination. This reduction in the borrowing base constitutes the periodic redetermination of the borrowing base scheduled for June 1, 2023 under the terms of the Credit Agreement. Derivative Contracts Subsequent to March 31, 2023, the Company entered into new derivative contracts as summarized in the table below: Production volume Contract period covered per month Index Contract price Natural gas fixed price swaps June - October 2023 50,000 Mmbtu NYMEX Henry Hub $ 2.52 April - June 2024 10,000 Mmbtu NYMEX Henry Hub $ 3.21 July - October 2024 25,000 Mmbtu NYMEX Henry Hub $ 3.47 |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Principles (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for a full fiscal year. As previously disclosed, in December 2022, the Board approved a change in the Company’s fiscal year end from September 30 to December 31 to be in-line with our peer group. As a result, the Company’s current fiscal year runs from January 1, 2023 through December 31, 2023, and therefore references in this Form 10-Q to 2023 refer to the annual period from January 1, 2023 through December 31, 2023. Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or the “Company” refer to PHX Minerals Inc. Accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Natural Gas, Oil and NGL Revenues | The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Royalty Interest Working Interest Total Natural gas revenue $ 6,186,021 $ 724,748 $ 6,910,769 Oil revenue 3,432,950 679,838 4,112,788 NGL revenue 504,770 328,920 833,690 Natural gas, oil and NGL sales $ 10,123,741 $ 1,733,506 $ 11,857,247 Three Months Ended March 31, 2022 Royalty Interest Working Interest Total Natural gas revenue $ 5,621,024 $ 2,914,969 $ 8,535,993 Oil revenue 2,550,462 2,161,244 4,711,706 NGL revenue 707,508 828,658 1,536,166 Natural gas, oil and NGL sales $ 8,878,994 $ 5,904,871 $ 14,783,865 |
Basic And Diluted Earnings (L_2
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Components of Basic and Diluted EPS | The following table presents a reconciliation of the components of basic and diluted EPS. Three Months Ended March 31, 2023 2022 Basic EPS Numerator: Basic net income (loss) $ 9,553,244 $ ( 4,020,455 ) Denominator: Common Shares 35,698,363 34,056,316 Unissued, directors' deferred compensation shares 237,428 236,139 Basic weighted average shares outstanding 35,935,791 34,292,455 Basic EPS $ 0.27 $ ( 0.12 ) Diluted EPS Numerator: Basic net income (loss) $ 9,553,244 $ ( 4,020,455 ) Diluted net income (loss) 9,553,244 ( 4,020,455 ) Denominator: Basic weighted average shares outstanding 35,935,791 34,292,455 Effects of dilutive securities: Unvested restricted stock - - Diluted weighted average shares outstanding 35,935,791 34,292,455 Diluted EPS $ 0.27 $ ( 0.12 ) |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restricted Stock Plan [Abstract] | |
Summary of Pre-Tax Compensation Expense | The following table summarizes the Company’s pre-tax compensation expense for the three months ended March 31, 2023 and 2022 related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended March 31, 2023 2022 Market-based, restricted stock $ 523,410 $ 313,872 Time-based, restricted stock 57,588 119,265 Total compensation expense $ 580,998 $ 433,137 |
Summary Of Unrecognized Compensation Cost | A summary of the Company’s unrecognized compensation cost for its unvested market-based and time-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized is shown in the following table: As of March 31, 2023 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 2,015,065 1.51 Time-based, restricted stock 519,875 2.37 Total $ 2,534,940 |
Properties And Equipment (Table
Properties And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property Acquisitions | The Company made the following property acquisitions during the three-month periods ended March 31, 2023 and 2022. Quarter Ended Net royalty acres (1)(2) Cash Total Purchase Price (1) Area of Interest March 31, 2023 913 $ 10.8 million $ 10.8 million Haynesville / SCOOP March 31, 2022 825 $ 9.3 million $ 9.3 million Haynesville / SCOOP (1) Excludes subsequent closing adjustments and insignificant acquisitions. (2) An estimated net royalty equivalent was used for the minerals included in the net royalty acres. |
Summary of Property Divestitures | The Company made the following property divestitures during the three-month periods ended March 31, 2023 and 2022. Revenue and expenses recognized between the effective date and close date of divestitures is recorded in the Operating Activities section in the Statements of Cash Flows. Quarter Ended Net mineral acres (1) / Wellbores (2) Sale Price (3) Gain/(Loss) (3) Location March 31, 2023 757 acres $ 0.3 million $ 0.3 million OK / TX 268 wellbores $ 10.7 million $ 4.1 million (4) OK / TX March 31, 2022 7,201 acres $ 2.1 million $ 2.1 million NM / TX (1) Number of net mineral acres sold. (2) Number of gross wellbores associated with working interests sold. (3) Excludes subsequent closing adjustments and insignificant divestitures. (4) Excludes $ 6.1 million loss recognized as an impairment in the quarter ended December 31, 2022 related to assets and liabilities held for sale as of December 31, 2022. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary Of Derivative Instruments Contracts and Settlements | Derivative Contracts in Place as of March 31, 2023 Calendar Period Contract total volume Index Contract average price Natural gas costless collars 2023 780,000 Mmbtu NYMEX Henry Hub $ 3.38 floor / $ 6.47 ceiling 2024 755,000 Mmbtu NYMEX Henry Hub $ 3.96 floor / $ 6.51 ceiling Natural gas fixed price swaps 2023 1,220,000 Mmbtu NYMEX Henry Hub $ 3.42 2024 300,000 Mmbtu NYMEX Henry Hub $ 3.47 Oil costless collars 2023 10,000 Bbls NYMEX WTI $ 75.00 floor / $ 96.00 ceiling 2024 23,450 Bbls NYMEX WTI $ 64.11 floor / $ 76.28 ceiling Oil fixed price swaps 2023 47,500 Bbls NYMEX WTI $ 74.55 Derivative Settlements during the Three Months Ended March 31, 2023 Settlement Contract period (1) Production volume Index Contract price (paid) received Natural gas costless collars January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 3.00 floor / $ 4.70 ceiling $ 10,800 January 2023 45,000 Mmbtu NYMEX Henry Hub $ 3.50 floor / $ 4.05 ceiling $ ( 29,655 ) January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 10.00 ceiling $ 154,620 January - March 2023 40,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 14.50 ceiling $ 309,240 January - March 2023 35,000 Mmbtu NYMEX Henry Hub $ 6.00 floor / $ 12.40 ceiling $ 270,585 Natural gas fixed price swaps January - February 2023 125,000 Mmbtu NYMEX Henry Hub $ 2.83 $ ( 269,750 ) January - March 2023 50,000 Mmbtu NYMEX Henry Hub $ 3.70 $ 40,800 March 2023 100,000 Mmbtu NYMEX Henry Hub $ 3.37 $ 91,900 January - March 2023 20,000 Mmbtu NYMEX Henry Hub $ 3.57 $ 8,820 Oil costless collars January - February 2023 2,500 Bbls NYMEX WTI $ 75.00 floor / $ 96.00 ceiling $ - Oil fixed price swaps December 2022 9,000 Bbls NYMEX WTI $ 44.25 $ ( 290,412 ) December 2022 1,000 Bbls NYMEX WTI $ 94.49 $ 17,972 January - February 2023 1,000 Bbls NYMEX WTI $ 64.00 $ ( 27,025 ) January - February 2023 1,500 Bbls NYMEX WTI $ 67.55 $ ( 29,888 ) January - February 2023 750 Bbls NYMEX WTI $ 70.05 $ ( 11,194 ) January - February 2023 1,500 Bbls NYMEX WTI $ 80.80 $ 9,863 Total (paid) received $ 256,676 (1) Natural gas derivatives settle at first of the month pricing and oil derivatives settle at a monthly daily average. |
Summary of Gain or Loss on Derivative Contracts, Net | Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods. Three Months Ended March 31, 2023 2022 Cash received (paid) on derivative contracts: Natural gas costless collars $ 715,590 $ ( 152,190 ) Natural gas fixed price swaps (1) 83,100 ( 474,935 ) Oil costless collars - - Oil fixed price swaps (1) ( 168,269 ) ( 583,641 ) Cash received (paid) on derivative contracts, net $ 630,421 $ ( 1,210,766 ) Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ 583,601 $ ( 1,465,603 ) Natural gas fixed price swaps 2,173,378 ( 7,686,898 ) Oil costless collars 22,262 - Oil fixed price swaps 393,158 ( 2,620,139 ) Non-cash gain (loss) on derivative contracts, net $ 3,172,399 $ ( 11,772,640 ) Gains (losses) on derivative contracts, net $ 3,802,820 $ ( 12,983,406 ) (1) For the three months ended March 31, 2023 and 2022, excludes $ 373,745 and $ 2,493,481 , respectively, of cash paid to settle off-market derivative contracts that are not reflected on the Condensed Statements of Operations. Total cash paid related to off-market derivatives was $ 560,162 and $ 3,527,738 , respectively, for the three months ended March 31, 2023 and 2022 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows. |
Summary Of Derivative Contracts | March 31, 2023 December 31, 2022 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Gross amounts recognized $ 2,462,101 $ 421,102 $ 326,656 $ 214,200 $ 908,001 $ 2,442,035 $ 627,664 $ 486,319 Offsetting adjustments ( 421,102 ) ( 421,102 ) ( 214,200 ) ( 214,200 ) ( 908,001 ) ( 908,001 ) ( 486,319 ) ( 486,319 ) Net presentation on condensed balance sheets $ 2,040,999 $ - $ 112,456 $ - $ - $ 1,534,034 $ 141,345 $ - (a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2023: Fair Value Measurement at March 31, 2023 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Financial Assets (Liabilities): Derivative Contracts - Swaps $ - $ 827,019 $ - $ 827,019 Derivative Contracts - Collars $ - $ 1,326,436 $ - $ 1,326,436 Level 2 – Market Approach - The fair values of the Company’s swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent to March 31, 2023, the Company entered into new derivative contracts as summarized in the table below: Production volume Contract period covered per month Index Contract price Natural gas fixed price swaps June - October 2023 50,000 Mmbtu NYMEX Henry Hub $ 2.52 April - June 2024 10,000 Mmbtu NYMEX Henry Hub $ 3.21 July - October 2024 25,000 Mmbtu NYMEX Henry Hub $ 3.47 |
Revenues (Summary of Disaggrega
Revenues (Summary of Disaggregation of Company's Natural Gas, Oil and NGL Revenues) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | $ 11,857,247 | $ 14,783,865 |
Royalty Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 10,123,741 | 8,878,994 |
Working Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 1,733,506 | 5,904,871 |
Oil [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 4,112,788 | 4,711,706 |
Oil [Member] | Royalty Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 3,432,950 | 2,550,462 |
Oil [Member] | Working Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 679,838 | 2,161,244 |
NGL [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 833,690 | 1,536,166 |
NGL [Member] | Royalty Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 504,770 | 707,508 |
NGL [Member] | Working Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 328,920 | 828,658 |
Natural Gas [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 6,910,769 | 8,535,993 |
Natural Gas [Member] | Royalty Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | 6,186,021 | 5,621,024 |
Natural Gas [Member] | Working Interest [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Natural gas, oil and NGL sales | $ 724,748 | $ 2,914,969 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||||
Revenues | $ 11,857,247 | $ 14,783,865 | ||||
Natural Gas, Oil and NGL [Member] | New Wells on PHX Acreage [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Revenues | $ 64,900 | $ 156,169 | $ 876,704 | $ 811,804 | $ 592,758 | $ 436,589 |
Minimum [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
New wells production statements period | 30 days | |||||
Maximum [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
New wells production statements period | 90 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Contingency [Line Items] | ||
Decrease of income tax provision | $ 5,000 | |
Effective tax rate | 24% | 1% |
Income taxes paid (net of refunds received) | $ 1,485,505 | $ 618,206 |
Basic And Diluted Earnings (L_3
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") - (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Restricted Stock excluded from the diluted EPS calculation | 498,431 | 161,295 |
Effect on basic and diluted | $ 0 |
Basic And Diluted Earnings (L_4
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") - Summary of Reconciliation of Components of Basic and Diluted EPS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic EPS | ||
Basic net income (loss) | $ 9,553,244 | $ (4,020,455) |
Common Shares | 35,698,363 | 34,056,316 |
Unissued, directors' deferred compensation shares | 237,428 | 236,139 |
Basic weighted average shares outstanding | 35,935,791 | 34,292,455 |
Basic EPS | $ 0.27 | $ (0.12) |
Diluted EPS | ||
Basic net income (loss) | $ 9,553,244 | $ (4,020,455) |
Diluted net income (loss) | $ 9,553,244 | $ (4,020,455) |
Basic weighted average shares outstanding | 35,935,791 | 34,292,455 |
Effects of dilutive securities: | ||
Diluted weighted average shares outstanding | 35,935,791 | 34,292,455 |
Diluted EPS | $ 0.27 | $ (0.12) |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility [Member] | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Ratio | Apr. 01, 2023 USD ($) | Sep. 30, 2021 USD ($) | |
Line Of Credit Facility [Line Items] | |||
Revolving loan credit facility | $ 100,000,000 | ||
Borrowing base of credit facility | $ 50,000,000 | ||
Credit facility maturity | Sep. 01, 2025 | ||
Effective Interest rate | 8.03% | ||
Debt issuance cost net of amortization | $ 275,213 | ||
Funded debt to EBITDA ratio | 350% | ||
Credit facility outstanding amount | $ 26,000,000 | ||
Availability under outstanding credit facility | $ 24,000,000 | ||
Subsequent Event [Member] | |||
Line Of Credit Facility [Line Items] | |||
Borrowing base of credit facility | $ 45,000,000 | ||
Prime Rate [Member] | U.S Federal Reserve System [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 0.50% | ||
Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 75% | ||
Current ratio | 100% | ||
Leverage ratio | Ratio | 2.50 | ||
Minimum [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 2.75% | ||
Minimum [Member] | Prime Rate [Member] | U.S Federal Reserve System [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 1.75% | ||
Maximum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Percentage of available commitment to borrowing basis | 10% | ||
Maximum [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 3.75% | ||
Maximum [Member] | Prime Rate [Member] | U.S Federal Reserve System [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 2.75% |
Deferred Compensation Plan Fo_2
Deferred Compensation Plan For Non-Employee Directors (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Maximum [Member] | |
Deferred Compensation Plan For Directors [Line Items] | |
Period outside directors may elect to receive shares | 10 years |
Restricted Stock Plan (Narrativ
Restricted Stock Plan (Narrative) (Details) | Jan. 31, 2023 USD ($) shares |
Employees [Member] | Time-vested Ratably Ending in December 2025 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock vesting period | 3 years |
Officer [Member] | Cliff Vested Ending in December 2025 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock vesting period | 3 years |
Time-Based Restricted Stock [Member] | Employees and Officers [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares awarded | shares | 97,053 |
Fair value of shares awarded | $ | $ 350,362 |
Market-Based Restricted Stock [Member] | Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares awarded | shares | 299,900 |
Fair value of shares awarded | $ | $ 1,541,893 |
Restricted Stock Plan (Summary
Restricted Stock Plan (Summary of Pre-Tax Compensation Expense) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 580,998 | $ 433,137 |
Market-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 523,410 | 313,872 |
Time-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 57,588 | $ 119,265 |
Restricted Stock Plan (Summar_2
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 2,534,940 |
Market-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 2,015,065 |
Weighted Average Period (in years) | 1 year 6 months 3 days |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 519,875 |
Weighted Average Period (in years) | 2 years 4 months 13 days |
Properties And Equipment - Summ
Properties And Equipment - Summary of Property Acquisitions (Details) - Haynesville / SCOOP [Member] $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) a | Mar. 31, 2022 USD ($) a | ||
Property Plant And Equipment [Line Items] | |||
Net royalty acres | a | [1],[2] | 913 | 825 |
Cash | $ 10.8 | $ 9.3 | |
Total Purchase Price | [2] | $ 10.8 | $ 9.3 |
[1] An estimated net royalty equivalent was used for the minerals included in the net royalty acres. Excludes subsequent closing adjustments and insignificant acquisitions. |
Properties And Equipment - Su_2
Properties And Equipment - Summary of Property Divestitures (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) a Wellbore | Mar. 31, 2022 USD ($) a | ||
Property Plant And Equipment [Line Items] | |||
Sale Price | $ 9,210,005 | $ 2,294,480 | |
NM / TX | |||
Property Plant And Equipment [Line Items] | |||
Net mineral acres | a | [1],[2] | 7,201 | |
Sale Price | $ 2,100,000 | ||
Gain/(Loss) | $ 2,100,000 | ||
OK / TX | |||
Property Plant And Equipment [Line Items] | |||
Net mineral acres | a | [1],[2] | 757 | |
Sale Price | $ 300,000 | ||
Gain/(Loss) | $ 300,000 | ||
OK / TX 1 | |||
Property Plant And Equipment [Line Items] | |||
Wellbores | Wellbore | [1],[2] | 268 | |
Sale Price | $ 10,700,000 | ||
Gain/(Loss) | [3] | $ 4,100,000 | |
[1] Number of gross wellbores associated with working interests sold. Number of net mineral acres sold. Excludes $ 6.1 million loss recognized as an impairment in the quarter ended December 31, 2022 related to assets and liabilities held for sale as of December 31, 2022. |
Properties And Equipment - Su_3
Properties And Equipment - Summary of Property Divestitures (Parenthetical) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |||
Impairment | $ 0 | $ 6,100,000 | $ 0 |
Properties And Equipment (Narra
Properties And Equipment (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Property Plant And Equipment [Line Items] | |||
Computation of Natural Gas, Oil and NGL Reserves | 12 months | ||
Impairment | $ 0 | $ 6,100,000 | $ 0 |
Impairment for written-off wells | 2,073 | ||
Consideration received | 0 | ||
Asset Impairment Charges | 2,073 | ||
Net carrying value of held for sale assets | 6,420,051 | ||
Asset retirement obligations | 1,032,257 | 1,027,777 | |
Held for sale liabilities | 889,155 | ||
Deposits received on held for sale assets | 800,000 | ||
Reclassification of PP&E to Held for sale assets | $ 142,221,180 | 133,250,007 | |
Arkoma Basin [Member] | |||
Property Plant And Equipment [Line Items] | |||
Asset Impairment Charges | 6,100,000 | ||
Arkoma Basin and Eagleford Play [Member] | |||
Property Plant And Equipment [Line Items] | |||
Net carrying value of held for sale assets | 5,500,000 | ||
Held for sale liabilities | 900,000 | ||
Reclassification of PP&E to Held for sale assets | $ 6,400,000 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Mar. 31, 2023 MMBTU $ / MMBTU $ / bbl bbl |
Natural Gas Costless Collars [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 780,000 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 3.38 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 6.47 |
Natural Gas Costless Collars [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 755,000 |
Natural Gas Costless Collars [Member] | 2024 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 3.96 |
Natural Gas Costless Collars [Member] | 2024 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 6.51 |
Natural Gas Fixed Price Swaps [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 1,220,000 |
Contract average price | 3.42 |
Natural Gas Fixed Price Swaps [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 300,000 |
Contract average price | 3.47 |
Oil Costless Collars [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | bbl | 10,000 |
Oil Costless Collars [Member] | 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 75 |
Oil Costless Collars [Member] | 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 96 |
Oil Costless Collars [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract total volume | bbl | 23,450 |
Oil Costless Collars [Member] | 2024 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 64.11 |
Oil Costless Collars [Member] | 2024 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 76.28 |
Oil Fixed Price Swaps [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 74.55 |
Contract total volume | bbl | 47,500 |
Derivatives (Summary of Deriv_2
Derivatives (Summary of Derivative Settlements) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) MMBTU $ / MMBTU bbl | |
Derivative [Line Items] | |
Settlement (paid) received | $ | $ 256,676 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 20,000 |
Settlement (paid) received | $ | $ 10,800 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 3 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 4.70 |
Natural Gas Costless Collars [Member] | January 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 45,000 |
Settlement (paid) received | $ | $ (29,655) |
Natural Gas Costless Collars [Member] | January 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 3.50 |
Natural Gas Costless Collars [Member] | January 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 4.05 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 20,000 |
Settlement (paid) received | $ | $ 154,620 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 6 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 10 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 40,000 |
Settlement (paid) received | $ | $ 309,240 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 6 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 14.50 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 35,000 |
Settlement (paid) received | $ | $ 270,585 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 6 |
Natural Gas Costless Collars [Member] | January - March 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 12.40 |
Natural Gas Fixed Price Swaps [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 50,000 |
Contract price | 3.70 |
Settlement (paid) received | $ | $ 40,800 |
Natural Gas Fixed Price Swaps [Member] | January - March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 20,000 |
Contract price | 3.57 |
Settlement (paid) received | $ | $ 8,820 |
Natural Gas Fixed Price Swaps [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 125,000 |
Contract price | 2.83 |
Settlement (paid) received | $ | $ (269,750) |
Natural Gas Fixed Price Swaps [Member] | March 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | MMBTU | 100,000 |
Contract price | 3.37 |
Settlement (paid) received | $ | $ 91,900 |
Oil Costless Collars [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 2,500 |
Oil Costless Collars [Member] | January - February 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 75 |
Oil Costless Collars [Member] | January - February 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 96 |
Oil Fixed Price Swaps [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 1,000 |
Contract price | 64 |
Settlement (paid) received | $ | $ (27,025) |
Oil Fixed Price Swaps [Member] | December 2022 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 9,000 |
Contract price | 44.25 |
Settlement (paid) received | $ | $ (290,412) |
Oil Fixed Price Swaps [Member] | December 2022 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 1,000 |
Contract price | 94.49 |
Settlement (paid) received | $ | $ 17,972 |
Oil Fixed Price Swaps [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 1,500 |
Contract price | 67.55 |
Settlement (paid) received | $ | $ (29,888) |
Oil Fixed Price Swaps [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 750 |
Contract price | 70.05 |
Settlement (paid) received | $ | $ (11,194) |
Oil Fixed Price Swaps [Member] | January - February 2023 [Member] | |
Derivative [Line Items] | |
Production Volume | bbl | 1,500 |
Contract price | 80.80 |
Settlement (paid) received | $ | $ 9,863 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative contracts, asset | $ 2,153,455 | |
Fair value of derivative contracts, liability | $ 1,392,689 |
Derivatives (Schedule of Gain o
Derivatives (Schedule of Gain or Loss on Derivative Contracts, Net) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Derivative [Line Items] | |||
Cash received (paid) on derivative contracts, net | $ 630,421 | $ (1,210,766) | |
Non-cash gain (loss) on derivative contracts, net | 3,172,399 | (11,772,640) | |
Gains (losses) on derivative contracts, net | 3,802,820 | (12,983,406) | |
Natural Gas Costless Collars [Member] | |||
Derivative [Line Items] | |||
Cash received (paid) on derivative contracts, net | 715,590 | (152,190) | |
Non-cash gain (loss) on derivative contracts, net | 583,601 | (1,465,603) | |
Natural Gas Fixed Price Swaps [Member] | |||
Derivative [Line Items] | |||
Cash received (paid) on derivative contracts, net | [1] | 83,100 | (474,935) |
Non-cash gain (loss) on derivative contracts, net | 2,173,378 | (7,686,898) | |
Oil Costless Collars | |||
Derivative [Line Items] | |||
Non-cash gain (loss) on derivative contracts, net | 22,262 | ||
Oil Fixed Price Swaps [Member] | |||
Derivative [Line Items] | |||
Cash received (paid) on derivative contracts, net | [1] | (168,269) | (583,641) |
Non-cash gain (loss) on derivative contracts, net | $ 393,158 | $ (2,620,139) | |
[1] For the three months ended March 31, 2023 and 2022, excludes $ 373,745 and $ 2,493,481 , respectively, of cash paid to settle off-market derivative contracts that are not reflected on the Condensed Statements of Operations. Total cash paid related to off-market derivatives was $ 560,162 and $ 3,527,738 , respectively, for the three months ended March 31, 2023 and 2022 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows. |
Derivatives (Schedule of Gain_2
Derivatives (Schedule of Gain or Loss on Derivative Contracts, Net) (Parenthetical) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Cash paid to settle off-market derivative contracts | $ 373,745 | $ 2,493,481 |
Cash paid on off-market derivatives | $ 560,162 | $ 3,527,738 |
Derivatives (Summary Of Deriv_3
Derivatives (Summary Of Derivative Contracts) (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Gross amounts recognized - Current Assets | [1] | $ 2,462,101 | $ 908,001 |
Offsetting adjustments - Current Assets | [1] | (421,102) | (908,001) |
Net presentation on condensed balance sheets - Current Assets | [1] | 2,040,999 | |
Gross amounts recognized - Non-Current Assets | [1] | 326,656 | 627,664 |
Offsetting adjustments - Non-Current Assets | [1] | (214,200) | (486,319) |
Net presentation on condensed balance sheets - Non-Current Assets | [1] | 112,456 | 141,345 |
Gross amounts recognized - Current Liabilities | [1] | 421,102 | 2,442,035 |
Offsetting adjustments - Current Liabilities | [1] | (421,102) | (908,001) |
Derivative contracts, net | [1] | 1,534,034 | |
Gross amounts recognized - Non-Current Liabilities | [1] | 214,200 | 486,319 |
Offsetting adjustments - Non-Current Liabilities | [1] | $ (214,200) | $ (486,319) |
[1] See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) | Mar. 31, 2023 USD ($) |
Swap [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ 827,019 |
Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | 827,019 |
Collars [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | 1,326,436 |
Collars [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ 1,326,436 |
Subsequent Events - Summary Of
Subsequent Events - Summary Of Derivative Instruments Contracts (Details) - Natural Gas Fixed Price Swaps [Member] - Subsequent Event [Member] | Apr. 01, 2023 MMBTU $ / MMBTU |
Derivative Contract Period June - October 2023 [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month | MMBTU | 50,000 |
Contract price | $ / MMBTU | 2.52 |
Derivative Contract Period April - June 2024 [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month | MMBTU | 10,000 |
Contract price | $ / MMBTU | 3.21 |
Derivative Contract Period July - October 2024 [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month | MMBTU | 25,000 |
Contract price | $ / MMBTU | 3.47 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Revolving Credit Facility [Member] - USD ($) | Apr. 01, 2023 | Mar. 31, 2023 |
Subsequent Event [Line Items] | ||
Borrowing base of credit facility | $ 50,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing base of credit facility | $ 45,000,000 |