Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | PANHANDLE OIL & GAS INC, | |
Entity Central Index Key | 0000315131 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
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 | Grand Centre | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, Address Line Three | 5400 N Grand Blvd | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73112 | |
City Area Code | (405) | |
Local Phone Number | 948-1560 | |
Entity Incorporation, State or Country Code | OK | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 16,392,054 | |
Title of each class | Class A 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, 2020 | Sep. 30, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 498,777 | $ 6,160,691 | |
Oil, NGL and natural gas sales receivables (net of allowance for uncollectable accounts) | 3,913,347 | 4,377,646 | |
Refundable income taxes | 3,401,870 | 1,505,442 | |
Derivative contracts, net | [1] | 4,216,915 | 2,256,639 |
Other | 601,412 | 177,037 | |
Total current assets | 12,632,321 | 14,477,455 | |
Properties and equipment at cost, based on successful efforts accounting: | |||
Producing oil and natural gas properties | 326,766,558 | 354,718,398 | |
Non-producing oil and natural gas properties | 19,030,785 | 14,599,023 | |
Other | 1,782,063 | 1,722,080 | |
Gross properties and equipment, at cost, based on successful efforts accounting | 347,579,406 | 371,039,501 | |
Less accumulated depreciation, depletion and amortization | (261,599,529) | (259,314,590) | |
Net properties and equipment | 85,979,877 | 111,724,911 | |
Investments | 151,752 | 205,076 | |
Derivative contracts, net | [1] | 237,505 | |
Total assets | 98,763,950 | 126,644,947 | |
Current liabilities: | |||
Accounts payable | 810,095 | 665,160 | |
Accrued liabilities and other | 1,246,544 | 2,433,466 | |
Total current liabilities | 2,056,639 | 3,098,626 | |
Long-term debt | 32,000,000 | 35,425,000 | |
Deferred income taxes, net | 1,312,007 | 5,976,007 | |
Asset retirement obligations | 2,862,523 | 2,835,781 | |
Stockholders' equity: | |||
Class A voting common stock, $0.01666 par value; 24,000,500 shares authorized; 16,897,306 issued at March 31, 2020, and Class A voting common stock, $0.01666 par value; 24,000,000 shares authorized; 16,897,306 issued at September 30, 2019 | 281,509 | 281,509 | |
Capital in excess of par value | 3,264,383 | 2,967,984 | |
Deferred directors' compensation | 2,092,426 | 2,555,781 | |
Retained earnings | 62,447,346 | 81,848,301 | |
Stockholders' Equity | 68,085,664 | 87,653,575 | |
Less treasury stock, at cost; 505,252 shares at March 31, 2020, and 558,051 shares at September 30, 2019 | (7,552,883) | (8,344,042) | |
Total stockholders' equity | 60,532,781 | 79,309,533 | |
Total liabilities and stockholders' equity | $ 98,763,950 | $ 126,644,947 | |
[1] | See Note 11: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Sep. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01666 | $ 0.01666 |
Common stock, shares authorized | 24,000,500 | 24,000,000 |
Common stock, shares issued | 16,897,306 | 16,897,306 |
Treasury stock, shares | 505,252 | 558,051 |
Condensed Statements Of Operati
Condensed Statements Of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |||
Revenues: | ||||||
Revenues | $ 7,982,905 | $ 9,221,319 | $ 15,576,743 | $ 21,432,038 | ||
Gains (losses) on derivative contracts | 4,071,577 | (1,793,852) | 3,253,683 | 2,712,928 | ||
Gain on asset sales | 3,272,888 | 9,096,938 | ||||
Revenues | 12,076,574 | 7,636,213 | 22,653,105 | 33,965,207 | ||
Costs and expenses: | ||||||
Lease operating expenses | 1,542,199 | 1,505,507 | 2,723,870 | 3,020,061 | ||
Transportation, gathering and marketing | 1,386,297 | 1,482,671 | 2,769,298 | 3,072,687 | ||
Production taxes | 404,728 | 467,308 | 732,009 | 1,076,259 | ||
Depreciation, depletion and amortization | 3,373,518 | 3,623,976 | 6,329,219 | 7,437,662 | ||
Provision for impairment | 29,545,702 | [1] | 0 | 29,545,702 | [1] | 0 |
Interest expense | 346,573 | 485,784 | 717,238 | 1,025,154 | ||
General and administrative | 2,174,661 | 2,133,153 | 4,397,689 | 4,071,993 | ||
Loss on asset sales and other expense (income) | 40,066 | (852) | 29,136 | 15,785 | ||
Total costs and expenses | 38,813,744 | 9,697,547 | 47,244,161 | 19,719,601 | ||
Income (loss) before provision (benefit) for income taxes | (26,737,170) | (2,061,334) | (24,591,056) | 14,245,606 | ||
Provision (benefit) for income taxes | (6,764,000) | (130,000) | (6,510,000) | 3,441,000 | ||
Net income (loss) | $ (19,973,170) | $ (1,931,334) | $ (18,081,056) | $ 10,804,606 | ||
Basic and diluted earnings (loss) per common share | $ (1.21) | $ (0.11) | $ (1.09) | $ 0.64 | ||
Basic and diluted weighted average shares outstanding: | ||||||
Common shares | 16,384,687 | 16,679,187 | 16,362,057 | 16,712,493 | ||
Unissued, directors' deferred compensation shares | 139,390 | 183,206 | 186,443 | 217,704 | ||
Basic and diluted weighted average shares outstanding | 16,524,077 | 16,862,393 | 16,548,500 | 16,930,197 | ||
Dividends declared per share of common stock and paid in period | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.08 | ||
Oil, NGL and Natural Gas [Member] | ||||||
Revenues: | ||||||
Revenues | $ 7,982,905 | $ 9,221,319 | $ 15,576,743 | $ 21,432,038 | ||
Lease Bonuses and Rental Income [Member] | ||||||
Revenues: | ||||||
Revenues | $ 22,092 | $ 208,746 | $ 549,791 | $ 723,303 | ||
[1] | At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Statements Of Stockholders' Equ
Statements Of Stockholders' Equity - USD ($) | Total | Class A voting Common Stock [Member] | Capital in Excess of Par Value [Member] | Deferred Directors' Compensation [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balances at Sep. 30, 2018 | $ 128,765,205 | $ 281,502 | $ 2,824,691 | $ 2,950,405 | $ 125,266,945 | $ (2,558,338) |
Balances, shares at Sep. 30, 2018 | 16,896,881 | |||||
Balances, Treasury shares at Sep. 30, 2018 | (145,467) | |||||
Net income (loss) | 12,735,940 | 12,735,940 | ||||
Purchase of treasury stock | (1,140,559) | $ (1,140,559) | ||||
Purchase of treasury stock, shares | (74,457) | |||||
Restricted stock awards | 159,469 | 159,469 | ||||
Dividends | (1,347,789) | (1,347,789) | ||||
Distribution of restricted stock to officers and directors | 160 | $ 7 | (159,869) | $ 160,022 | ||
Distribution of restricted stock to officers and directors, shares | 425 | 9,194 | ||||
Distribution of deferred Directors' compensation | (8) | 8 | ||||
Increase in deferred directors' compensation charged to expense | 80,287 | 80,287 | ||||
Balances at Dec. 31, 2018 | 139,252,713 | $ 281,509 | 2,824,283 | 3,030,700 | 136,655,096 | $ (3,538,875) |
Balances, shares at Dec. 31, 2018 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2018 | (210,730) | |||||
Balances at Sep. 30, 2018 | 128,765,205 | $ 281,502 | 2,824,691 | 2,950,405 | 125,266,945 | $ (2,558,338) |
Balances, shares at Sep. 30, 2018 | 16,896,881 | |||||
Balances, Treasury shares at Sep. 30, 2018 | (145,467) | |||||
Net income (loss) | 10,804,606 | |||||
Balances at Mar. 31, 2019 | 134,832,789 | $ 281,509 | 2,830,224 | 2,415,569 | 134,723,381 | $ (5,417,894) |
Balances, shares at Mar. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2019 | (329,065) | |||||
Balances at Dec. 31, 2018 | 139,252,713 | $ 281,509 | 2,824,283 | 3,030,700 | 136,655,096 | $ (3,538,875) |
Balances, shares at Dec. 31, 2018 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2018 | (210,730) | |||||
Net income (loss) | (1,931,334) | (1,931,334) | ||||
Purchase of treasury stock | (2,827,126) | $ (2,827,126) | ||||
Purchase of treasury stock, shares | (175,175) | |||||
Restricted stock awards | 286,852 | 286,852 | ||||
Dividends | (381) | (381) | ||||
Distribution of restricted stock to officers and directors | 75 | (73,069) | $ 73,144 | |||
Distribution of restricted stock to officers and directors, shares | 4,441 | |||||
Distribution of deferred Directors' compensation | (3) | (207,842) | (667,124) | $ 874,963 | ||
Distribution of deferred directors' compensation, shares | 52,399 | |||||
Increase in deferred directors' compensation charged to expense | 51,993 | 51,993 | ||||
Balances at Mar. 31, 2019 | 134,832,789 | $ 281,509 | 2,830,224 | 2,415,569 | 134,723,381 | $ (5,417,894) |
Balances, shares at Mar. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2019 | (329,065) | |||||
Balances at Sep. 30, 2019 | $ 79,309,533 | $ 281,509 | 2,967,984 | 2,555,781 | 81,848,301 | $ (8,344,042) |
Balances, shares at Sep. 30, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Sep. 30, 2019 | (558,051) | (558,051) | ||||
Net income (loss) | $ 1,892,114 | 1,892,114 | ||||
Purchase of treasury stock | (7,635) | $ (7,635) | ||||
Purchase of treasury stock, shares | (632) | |||||
Restricted stock awards | 148,515 | 148,515 | ||||
Dividends | (1,319,899) | (1,319,899) | ||||
Distribution of restricted stock to officers and directors | 93 | (82,821) | $ 82,914 | |||
Distribution of restricted stock to officers and directors, shares | 5,546 | |||||
Increase in deferred directors' compensation charged to expense | 86,212 | 86,212 | ||||
Balances at Dec. 31, 2019 | 80,108,933 | $ 281,509 | 3,033,678 | 2,641,993 | 82,420,516 | $ (8,268,763) |
Balances, shares at Dec. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2019 | (553,137) | |||||
Balances at Sep. 30, 2019 | $ 79,309,533 | $ 281,509 | 2,967,984 | 2,555,781 | 81,848,301 | $ (8,344,042) |
Balances, shares at Sep. 30, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Sep. 30, 2019 | (558,051) | (558,051) | ||||
Net income (loss) | $ (18,081,056) | |||||
Balances at Mar. 31, 2020 | $ 60,532,781 | $ 281,509 | 3,264,383 | 2,092,426 | 62,447,346 | $ (7,552,883) |
Balances, shares at Mar. 31, 2020 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2020 | (505,252) | (505,252) | ||||
Balances at Dec. 31, 2019 | $ 80,108,933 | $ 281,509 | 3,033,678 | 2,641,993 | 82,420,516 | $ (8,268,763) |
Balances, shares at Dec. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2019 | (553,137) | |||||
Net income (loss) | (19,973,170) | (19,973,170) | ||||
Restricted stock awards | 343,101 | 343,101 | ||||
Distribution of deferred Directors' compensation | (1) | (112,396) | (603,485) | $ 715,880 | ||
Distribution of deferred directors' compensation, shares | 47,885 | |||||
Increase in deferred directors' compensation charged to expense | 53,918 | 53,918 | ||||
Balances at Mar. 31, 2020 | $ 60,532,781 | $ 281,509 | $ 3,264,383 | $ 2,092,426 | $ 62,447,346 | $ (7,552,883) |
Balances, shares at Mar. 31, 2020 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2020 | (505,252) | (505,252) |
Statements Of Stockholders' E_2
Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends per share | $ 0.08 | $ 0.08 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |||
Operating Activities | |||||||
Net income (loss) | $ (18,081,056) | $ 10,804,606 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | $ 3,373,518 | $ 3,623,976 | 6,329,219 | 7,437,662 | |||
Impairment of producing properties | 29,545,702 | [1] | 0 | 29,545,702 | [1] | 0 | |
Provision for deferred income taxes | (4,664,000) | 3,942,000 | |||||
Gain from leasing fee mineral acreage | (544,979) | (722,912) | |||||
Proceeds from leasing fee mineral acreage | 559,462 | 737,812 | |||||
Net (gain) loss on sales of assets | (3,265,449) | (9,096,938) | |||||
Directors' deferred compensation expense | 140,130 | 132,280 | |||||
Fair value of derivative contracts | (1,722,771) | (4,231,222) | |||||
Restricted stock awards | 343,101 | 286,852 | 491,616 | 446,321 | |||
Other | 7,225 | 9,326 | |||||
Cash provided (used) by changes in assets and liabilities: | |||||||
Oil, NGL and natural gas sales receivables | 464,299 | 715,935 | |||||
Other current assets | (232,349) | (172,645) | |||||
Accounts payable | 117,561 | (77,977) | |||||
Income taxes receivable | (1,896,428) | (538,150) | |||||
Other non-current assets | 50,010 | 17,317 | |||||
Accrued liabilities | (1,189,850) | (342,361) | |||||
Total adjustments | 24,189,398 | (1,743,552) | |||||
Net cash provided by operating activities | 6,108,342 | 9,061,054 | |||||
Investing Activities | |||||||
Capital expenditures | (139,755) | (4,159,683) | |||||
Acquisition of minerals and overrides | (10,254,016) | (1,809,775) | |||||
Investments in partnerships | (199) | ||||||
Proceeds from sales of assets | 3,376,049 | 9,096,938 | |||||
Net cash provided (used) by investing activities | (7,017,722) | 3,127,281 | |||||
Financing Activities | |||||||
Borrowings under Credit Facility | 5,561,725 | 8,686,270 | |||||
Payments of loan principal | (8,986,725) | (15,586,270) | |||||
Purchases of treasury stock | (7,635) | (3,967,685) | |||||
Payments of dividends | (1,319,899) | (1,348,170) | |||||
Net cash provided (used) by financing activities | (4,752,534) | (12,215,855) | |||||
Increase (decrease) in cash and cash equivalents | (5,661,914) | (27,520) | |||||
Cash and cash equivalents at beginning of period | 6,160,691 | 532,502 | $ 532,502 | ||||
Cash and cash equivalents at end of period | $ 498,777 | $ 504,982 | 498,777 | 504,982 | $ 6,160,691 | ||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||
Additions to asset retirement obligations | 4 | 27,562 | |||||
Gross additions to properties and equipment | 10,229,121 | 5,654,060 | |||||
Net (increase) decrease in accounts payable for properties and equipment additions | 164,650 | 315,398 | |||||
Capital expenditures and acquisitions | $ 10,393,771 | $ 5,969,458 | |||||
[1] | At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Principles | 6 Months Ended |
Mar. 31, 2020 | |
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 Panhandle Oil and Gas 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 the full year. The Company’s fiscal year runs from October 1 through September 30. 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, 2019. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Panhandle” or “Company” refer to Panhandle Oil and Gas Inc. Adoption of New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements New Accounting Pronouncements yet to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Other 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 financial statements upon adoption. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 2: Leases Impact of ASC 842 Adoption On October 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) using the modified retrospective method. This ASU, as subsequently amended by ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20, requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the previous guidance. The Company elected the adoption practical expedient under ASU 2018-11, and used October 1, 2019, the beginning of the period of adoption, as its date of initial application. The Company elected the set of practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. The Company’s operating lease right-of-use (“ROU”) assets and operating lease obligations were less than 1% of the Company's total assets as of December 31, 2019, had remaining terms of less than 12 months and were not considered material to the Company; and therefore, the adoption of the standard had no related impact on the Company’s Balance Sheets as of October 1, 2019. Additionally, there was no related impact on the Company’s Statements of Operations, and the standard had no impact on the Company’s debt covenant compliance under existing agreements. Assessment of Leases The Company determines if an arrangement is a lease at inception by considering whether (i) explicitly or implicitly identified assets have been deployed in the agreement and (ii) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. As of March 31, 2020, none of the Company’s leases were classified as financing leases. Operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company signed a new lease for office space during the quarter ended March 31, 2020, with an anticipated commencement date during the fourth quarter of 2020. The associated lease liability will be recognized at that time and is estimated to be approximately $1 million. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs, prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Company will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Company will exercise that option. Lease expense for lease payments will be recognized on a straight-line basis over the lease term. The Company made an accounting policy election to not recognize leases with terms, including applicable options, of less than twelve months on the Company’s Balance Sheets and recognize those lease payments in the Company’s Statements of Operations on a straight-line basis over the lease term. In the event that the Company’s assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities. |
Revenues
Revenues | 6 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | NOTE 3: Revenues Lease bonus income 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 oil, NGL or natural gas 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 Accounting Standards Codification (“ASC”) 932, and it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral being treated as a gain. The excess of lease bonus above the mineral basis is shown in the lease bonuses and rental income line item on the Company’s Statements of Operations. Oil and natural gas derivative contracts See Note 10 for discussion of the Company’s accounting for derivative contracts. Revenues from Contracts with Customers Oil, NGL and natural gas sales Sales of oil, NGL and natural gas are recognized when production is sold to a purchaser and control has 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 oil, NGL and natural gas revenues The following table presents the disaggregation of the Company's oil, NGL and natural gas revenues for the three and six months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Oil revenue $ 3,126,132 $ 1,641,643 $ 4,767,775 $ 4,539,343 $ 3,693,944 $ 8,233,287 NGL revenue 196,311 328,430 524,741 419,088 720,536 1,139,624 Natural gas revenue 1,245,413 1,444,976 2,690,389 2,518,527 3,685,305 6,203,832 Oil, NGL and natural gas sales $ 4,567,856 $ 3,415,049 $ 7,982,905 $ 7,476,958 $ 8,099,785 $ 15,576,743 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Oil revenue $ 1,552,380 $ 2,377,225 $ 3,929,605 $ 3,856,185 $ 4,552,400 $ 8,408,585 NGL revenue 186,884 629,478 816,362 628,111 1,643,086 2,271,197 Natural gas revenue 1,411,154 3,064,198 4,475,352 3,442,266 7,309,990 10,752,256 Oil, NGL and natural gas sales $ 3,150,418 $ 6,070,901 $ 9,221,319 $ 7,926,562 $ 13,505,476 $ 21,432,038 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 Oil, NGL and natural gas sales receivables line item on the Company’s Balance Sheets. The difference between the Company's estimates and the actual amounts received for oil, NGL and natural gas sales is recorded in the quarter that payment is received from the third party. For the three and six months ended March 31, 2019, As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide to us. Through the use of new technological platforms as well as cash received on new wells, in the 2020 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2020 second quarter. Estimates of the oil and natural gas sales related to those properties were made and are reflected in the second quarter Oil, NGL and natural gas sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in Oil, NGL and natural gas sales receivables. In connection with obtaining more relevant information identifying additional new wells on Panhandle acreage, we have recorded a change in estimate for new wells to Oil, NGL and natural gas sales totaling $1,871,245 of which $1,322,115 related to the production periods before October 1, 2019, and $549,130 related to first quarter of 2020. This reduced loss before benefit for income taxes by $1,717,948 in the three and six months ended March 31, 2020. This resulted in decreases in both net loss of $1,283,339 and $0.08 loss per common share for the three months ended March 31, 2020, and decreases in both net loss of $1,263,155 and $0.08 loss per common share for the six months ended March 31, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 4: 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. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that it exceeds cost depletion which is calculated on a unit-of-production basis. 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. Federal and Oklahoma excess percentage depletion, when a provision for income taxes is expected for the year, decreases the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is expected for the year. 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. The effective tax rate for the six months ended March 31, 2020, was a 26% benefit as compared a 24% provision for the six months ended March 31, 2019. The effective tax rate for the quarter ended March 31, 2020, was a 25% benefit as compared to a 6% benefit for the quarter ended March 31, 2019. The federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020. The CARES Act provides relief to corporate taxpayers by permitting a five-year carryback of 2018-2020 Net Operating Losses (“NOLs”), removing the 80% limitation on the carryback of those NOLs, increasing the Section 163(j) 30% limitation on interest expense deductibility to 50% of adjusted taxable income for 2019 and 2020, and accelerates refunds for minimum tax credit carryforwards, along with a few other provisions. During the quarter ended March 31, 2020, the receipt of the refundable tax credit due to AMT credits totaling $1.4 million was accelerated due to the CARES Act. In addition to the acceleration of the AMT refund, an additional $203 thousand was recognized as an income tax benefit as a result of the NOL carryback provision allowing the Company to use the previously enacted tax rate of 34% rather than the current tax rate of 21%. |
Basic And Diluted Earnings (Los
Basic And Diluted Earnings (Loss) Per Common Share | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Earnings (Loss) Per Common Share | NOTE 5: Basic and Diluted Earnings (Loss) per Common Share Basic and diluted earnings (loss) per common share is calculated using net income (loss) divided by the weighted average number of voting common shares outstanding, including unissued, vested directors’ deferred compensation shares during the period. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 6: Long-Term Debt The Company has a $200,000,000 credit facility with a group of banks headed by Bank of Oklahoma (BOK) with a borrowing base of $45,000,000 as of March 31, 2020, and a maturity date of November 30, 2022 (as amended, the “Credit Facility”). The Credit Facility is subject to a semi-annual borrowing base determination, wherein BOK applies its commodity pricing forecast to the Company’s reserve forecast and determines a borrowing base. The Credit Facility is secured by certain of the Company’s properties (wellbore only) with a net book value of $42,020,263 at March 31, 2020. The interest rate is based on BOK prime plus from 0.50% to 1.25%, or 30-day LIBOR plus from 2.00% to 2.75%. The election of BOK prime or LIBOR is at the Company’s discretion. The interest rate spread from BOK prime or LIBOR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from LIBOR or the prime rate increases as the ratio of loan balance to the borrowing base increases. At March 31, 2020, the effective interest rate was 3.89%. The Company’s debt is recorded at the carrying amount on its Balance Sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Determinations of the borrowing base are made semi-annually (usually June and December) or whenever the banks, in their discretion, believe that there has been a material change in the value of the oil and natural gas properties. The next redetermination is expected to occur in June 2020. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company’s incurrence of indebtedness, liens, payment of dividends and acquisitions of stock. In addition, the Company is required to maintain certain financial ratios, a current ratio (as defined in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDA (as defined in the Credit Facility) of no more than 4.0 to 1.0 based on the trailing twelve months. At March 31, 2020, the Company was in compliance with the covenants of the Credit Facility, had $32,000,000 outstanding and had $13,000,000 of borrowing base availability under the Credit Facility. |
Deferred Compensation Plan For
Deferred Compensation Plan For Non-Employee Directors | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Deferred Compensation Plan For Non-Employee Directors | NOTE 7: 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 the annual retainers, Board meeting fees and committee meeting fees. These unissued shares are recorded to each director’s deferred compensation account at the closing market price of the shares (i) on the dates of the Board and committee meetings, and (ii) on the payment dates of the annual retainers. Only upon a director’s retirement, termination, 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 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 | 6 Months Ended |
Mar. 31, 2020 | |
Restricted Stock Plan [Abstract] | |
Restricted Stock Plan | NOTE 8: Restricted Stock Plan In March 2010, shareholders approved the Panhandle Oil and Gas Inc. 2010 Restricted Stock Plan (the “2010 Stock Plan”), which made available 200,000 shares of common stock to provide a long-term component to the Company’s total compensation package for its officers and to further align the interest of its officers with those of its shareholders. In March 2014, shareholders approved an amendment to increase the number of shares of common stock reserved for issuance under the 2010 Stock Plan from 200,000 shares to 500,000 shares and to allow the grant of shares of restricted stock to our directors. In March 2020, shareholders approved an amendment to increase the number of shares of common stock reserved for issuance under the 2010 Stock Plan to 750,000 shares. The 2010 Stock Plan, as amended (the “Amended 2010 Stock Plan”), is designed to provide as much flexibility as possible for future grants of restricted stock so that the Company can respond as necessary to provide competitive compensation in order to attract, retain and motivate directors and officers of the Company and to align their interests with those of the Company’s shareholders. Effective in May 2014, the Board adopted stock repurchase resolutions to allow management, at its discretion, to purchase the Company’s common stock as treasury shares up to an amount equal to the aggregate number of shares of common stock awarded pursuant to the Amended 2010 Restricted Stock Plan, contributed by the Company to its ESOP and credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors. Effective in May 2018, the Board of directors approved an amendment to the Company’s existing stock repurchase program (the “Repurchase Program”). As amended, the Repurchase Program continues to allow the Company to repurchase up to $1.5 million of the Company’s common stock at management’s discretion. The Board added language to clarify that this is intended to be an evergreen program as the repurchase of an additional $1.5 million of the Company’s common stock is authorized and approved whenever the previous amount is utilized. In addition, the number of shares allowed to be purchased by the Company under the Repurchase Program is no longer capped at an amount equal to the aggregate number of shares of common stock (i) awarded pursuant to the Amended 2010 Stock Plan, (ii) contributed by the Company to its ESOP, and (iii) credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors. On December 11, 2019, the Company awarded 10,038 time-based shares and 15,058 market-based shares of the Company’s common stock as restricted stock to certain officers. The restricted stock vests at the end of a three-year period and contains non-forfeitable rights to receive dividends and voting rights during the vesting period. Upon vesting, the market-based shares that do not meet certain market performance criteria are forfeited. The time-based and market-based shares had fair values on their award date of $122,062 and $160,401, respectively. The fair values for the time-based and the market-based awards will be recognized as compensation expense ratably over the vesting period. The fair value of the market-based shares on their award date is calculated by simulating the Company’s stock prices as compared to the S&P Oil & Gas Exploration & Production ETF (XOP) prices utilizing a Monte Carlo model covering the market performance period (December 11, 2019, through December 11, 2022). On January 2, 2020, the Company awarded 22,300 time-based shares of the Company’s common stock as restricted stock to its non-employee directors. The restricted stock vests on December 31, 2020. The restricted stock contains non-forfeitable rights to receive dividends and to vote the shares during the vesting period. These time-based shares had a fair value on their award date of $246,640. On January 16, 2020, upon naming a new Chief Executive Officer, the Company awarded 53,476 time-based shares and 21,988 market-based shares of the Company’s common stock as restricted stock, with the same vesting criteria as the December 11, 2019 awards discussed above. The time-based and market-based shares had fair values on their award date of $500,000 and $179,334, respectively. An additional 37,045 of performance-based shares were awarded to the Company’s officers at that time with a nominal value at their award date. On March 9, 2020, upon naming a new Chief Financial Officer, the Company awarded 16,340 time-based shares, 2,534 market-based shares and 2,534 performance-based shares of the Company’s common stock as restricted stock, with the same vesting criteria as the December 11, 2019, and January 16, 2020, awards discussed above. The time-based and market-based shares had fair values on their award date of $72,550 and $9,814, respectively. The performance-based shares had a nominal value at their award date. Compensation expense for the restricted stock awards is recognized in G&A. Forfeitures of awards are recognized when they occur. The dilutive impact of all restricted stock plans is immaterial for all periods presented. The following table summarizes the Company’s pre-tax compensation expense for the three and six months ended March 31, 2020 and 2019, related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Six Months Ended March 31, March 31, 2020 2019 2020 2019 Market-based, restricted stock $ 200,761 $ 182,742 $ 274,903 $ 246,279 Time-based, restricted stock 142,340 104,110 216,713 200,042 Performance-based, restricted stock - - - - Total compensation expense $ 343,101 $ 286,852 $ 491,616 $ 446,321 A summary of the Company’s unrecognized compensation cost for its unvested market-based, time-based and performance-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table: As of March 31, 2020 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 88,147 2.30 Time-based, restricted stock 827,501 2.19 Performance-based, restricted stock - Total $ 915,648 |
Properties And Equipment
Properties And Equipment | 6 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Properties And Equipment | NOTE 9: Properties and Equipment Divestitures During the second quarter of 2020, the Company had no significant divestitures. During the first quarter of 2020, Panhandle closed on the sale of 530 net mineral acres in Eddy County, New Mexico, for $3.4 million. At the time of sale, the assets were mostly amortized and therefore had minimal net book value. Almost all of the value received was a gain on the sale of assets, $3.3 million, in the first quarter of 2020. The Company utilized a like-kind exchange under Internal Revenue Code Section 1031 to defer income tax on all of the gain by offsetting it with the STACK/SCOOP mineral acreage acquisition that was purchased during the quarter using qualified exchange accommodation agreements. During the second quarter of 2019, the Company had no divestitures. During the first quarter of 2019, the Company sold 206 net mineral acres and producing oil and natural gas properties located in Lea and Eddy Counties, New Mexico, to a private buyer for total net consideration of $9.1 million and recorded a gain on the sale of $9.1 million. The cash from the sale was used to reduce the Company’s outstanding debt under the Credit Facility. Acquisitions During the second quarter of 2020, the Company had no significant acquisitions. During the first quarter of 2020, Panhandle closed on the purchase of 700 net mineral acres in Kingfisher, Canadian and Garvin Counties, Oklahoma, for a purchase price of $9.3 million (after customary closing adjustments). During the second quarter of 2019, the Company acquired 329 net mineral acres (which include producing oil and natural gas properties) in the STACK play in Blaine and Caddo Counties, Oklahoma, for $1,386,775. During the first quarter of 2019, the Company acquired 45 net mineral acres (which include producing oil and natural gas properties) in the STACK play in Blaine County, Oklahoma, with undeveloped locations identified in both the Woodford and Meramac Shales for $423,000. Oil, NGL and Natural Gas Reserves Management considers the estimation of the Company’s crude oil, NGL and natural gas reserves to be the most significant of its judgments and estimates. Changes in crude oil, NGL and natural gas 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 crude oil, NGL and natural gas 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 oil, NGL and natural gas reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month oil, NGL and natural gas 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 crude oil, NGL and natural gas pricing assumptions are used by management to prepare estimates of crude oil, NGL and natural gas reserves and future net cash flows used in asset impairment assessments and in formulating management’s overall operating decisions. Crude oil, NGL and natural gas prices are volatile and affected by worldwide production and consumption and are outside the control of management (see Item 1A: Risk Factors for a further discussion of price volatility). Impairment All long-lived assets, principally oil and natural gas properties, are monitored 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 oil, NGL and natural gas; future production costs; estimates of future oil, NGL and natural gas 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 oil, NGL and natural gas 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 three and six months ended March 31, 2020, the assessment resulted in an impairment provision on producing properties of $29,545,702, primarily due to the decline in commodity prices caused by the ongoing COVID-19 pandemic and the early March 2020 failure by a group of oil producing nations known as OPEC+ to reach an agreement over proposed oil production cuts (see Item 1A: Risk Factors). For the three and six months ended March 31, 2019, the assessment resulted in no impairment provisions on producing properties. During the quarter ended March 31, 2020, impairment of $19.3 million and $7.3 million was recorded on our Fayetteville Shale and Eagle Ford fields, respectively. The remaining $2.9 million of impairment was taken on other producing assets. The discounted cash flows of the properties were prepared using NYMEX strip pricing as of March 31, 2020, using a discount rate of 10% for proved developed and assigning no value to undeveloped locations. The Fayetteville Shale assets are dry-gas assets of which the Company acquired a portion in 2011. Low natural gas prices at March 31, 2020, are the primary reason for impairment in this field. The Company recognized an impairment related to the Eagle Ford at September 30, 2019, of $76.6 million primarily due to the removal of working interest PUDs from the Company’s reserve report. The further impairment of the Eagle Ford assets at March 31, 2020, is due to the decline in commodity prices over fiscal 2020. A further reduction in oil, NGL and natural gas prices or a decline in reserve volumes may lead to additional impairment in future periods that may be material to the Company. |
Derivatives
Derivatives | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 10: 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 oil and natural gas. 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. These derivative instruments may expose the Company to risk of financial loss and limit the benefit of future increases in prices. The Company’s derivative contracts are currently with Bank of Oklahoma and Koch Supply and Trading LP. The derivative contracts with Bank of Oklahoma are secured under the Credit Facility with Bank of Oklahoma (see Note 6: Long-Term Debt). The derivative contracts with Koch Supply and Trading LP are unsecured. The derivative instruments have settled or will settle based on the prices below: Derivative contracts in place as of March 31, 2020 Production volume Contract period covered per month Index Contract price Natural gas costless collars April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.20 floor / $2.59 ceiling Natural gas fixed price swaps January - December 2020 80,000 Mmbtu NYMEX Henry Hub $2.750 April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.405 November 2020 - March 2021 10,000 Mmbtu NYMEX Henry Hub $2.661 Oil costless collars July 2019 - June 2020 2,000 Bbls NYMEX WTI $65.00 floor / $76.15 ceiling January - June 2020 2,000 Bbls NYMEX WTI $60.00 floor / $67.00 ceiling January - December 2020 2,000 Bbls NYMEX WTI $55.00 floor / $62.00 ceiling Oil fixed price swaps January - December 2020 2,000 Bbls NYMEX WTI $55.28 January - December 2020 2,000 Bbls NYMEX WTI $58.65 January - December 2020 2,000 Bbls NYMEX WTI $60.00 January - December 2020 2,000 Bbls NYMEX WTI $58.05 July - December 2020 2,000 Bbls NYMEX WTI $58.10 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 $4,216,915 as of March 31, 2020, and a net asset of $2,494,144 as of September 30, 2019. Net cash received related to derivative contracts settled during the six-month period ended March 31, 2020, was $1,530,912 compared to net cash paid of $1,518,294 in the same period in the prior year. Net cash received 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, 2020, and September 30, 2019. The Company has offset all amounts subject to master netting agreements in the Company's Balance Sheets at March 31, 2020, and September 30, 2019. March 31, 2020 September 30, 2019 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Non-Current Assets Current Assets Non-Current Assets Gross amounts recognized $ 4,216,915 $ - $ 2,256,639 $ 237,505 Offsetting adjustments - - - - Net presentation on Condensed Balance Sheets $ 4,216,915 $ - $ 2,256,639 $ 237,505 (a) See Note 11: 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 | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 11: 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 as of March 31, 2020: Fair Value Measurement at March 31, 2020 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 $ - $ 3,114,037 $ - $ 3,114,037 Derivative Contracts - Collars $ - $ 1,102,878 $ - $ 1,102,878 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. The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy: Quarter Ended March 31, 2020 2019 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 5,288,710 $ 29,545,702 $ - $ - Six Months Ended March 31, 2020 2019 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 5,288,710 $ 29,545,702 $ - $ - (a) At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values At March 31, 2020, and September 30, 2019, 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12: Subsequent Events Derivative Contracts Subsequent to March 31, 2020, 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 costless collars November 2020 - December 2021 50,000 Mmbtu NYMEX Henry Hub $2.30 floor / $2.90 ceiling November 2020 - December 2021 40,000 Mmbtu NYMEX Henry Hub $2.30 floor / $3.10 ceiling Natural gas fixed price swaps January 2021 - February 2022 50,000 Mmbtu NYMEX Henry Hub $2.729 Oil fixed price swaps January - December 2021 8,000 Bbls NYMEX WTI $37.00 |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Principles (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements of Panhandle Oil and Gas 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 the full year. The Company’s fiscal year runs from October 1 through September 30. 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, 2019. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Panhandle” or “Company” refer to Panhandle Oil and Gas Inc. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) Leases In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), Targeted Improvements |
New Accounting Pronouncements yet to be Adopted | New Accounting Pronouncements yet to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Other 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 financial statements upon adoption. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Oil, NGL and Natural Gas Revenues | The following table presents the disaggregation of the Company's oil, NGL and natural gas revenues for the three and six months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Oil revenue $ 3,126,132 $ 1,641,643 $ 4,767,775 $ 4,539,343 $ 3,693,944 $ 8,233,287 NGL revenue 196,311 328,430 524,741 419,088 720,536 1,139,624 Natural gas revenue 1,245,413 1,444,976 2,690,389 2,518,527 3,685,305 6,203,832 Oil, NGL and natural gas sales $ 4,567,856 $ 3,415,049 $ 7,982,905 $ 7,476,958 $ 8,099,785 $ 15,576,743 Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Oil revenue $ 1,552,380 $ 2,377,225 $ 3,929,605 $ 3,856,185 $ 4,552,400 $ 8,408,585 NGL revenue 186,884 629,478 816,362 628,111 1,643,086 2,271,197 Natural gas revenue 1,411,154 3,064,198 4,475,352 3,442,266 7,309,990 10,752,256 Oil, NGL and natural gas sales $ 3,150,418 $ 6,070,901 $ 9,221,319 $ 7,926,562 $ 13,505,476 $ 21,432,038 |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Restricted Stock Plan [Abstract] | |
Summary Of Pre-Tax Compensation Expense | The following table summarizes the Company’s pre-tax compensation expense for the three and six months ended March 31, 2020 and 2019, related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Six Months Ended March 31, March 31, 2020 2019 2020 2019 Market-based, restricted stock $ 200,761 $ 182,742 $ 274,903 $ 246,279 Time-based, restricted stock 142,340 104,110 216,713 200,042 Performance-based, restricted stock - - - - Total compensation expense $ 343,101 $ 286,852 $ 491,616 $ 446,321 |
Summary Of Unrecognized Compensation Cost | A summary of the Company’s unrecognized compensation cost for its unvested market-based, time-based and performance-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table: As of March 31, 2020 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 88,147 2.30 Time-based, restricted stock 827,501 2.19 Performance-based, restricted stock - Total $ 915,648 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary Of Derivative Instruments Contracts | Derivative contracts in place as of March 31, 2020 Production volume Contract period covered per month Index Contract price Natural gas costless collars April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.20 floor / $2.59 ceiling Natural gas fixed price swaps January - December 2020 80,000 Mmbtu NYMEX Henry Hub $2.750 April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.405 November 2020 - March 2021 10,000 Mmbtu NYMEX Henry Hub $2.661 Oil costless collars July 2019 - June 2020 2,000 Bbls NYMEX WTI $65.00 floor / $76.15 ceiling January - June 2020 2,000 Bbls NYMEX WTI $60.00 floor / $67.00 ceiling January - December 2020 2,000 Bbls NYMEX WTI $55.00 floor / $62.00 ceiling Oil fixed price swaps January - December 2020 2,000 Bbls NYMEX WTI $55.28 January - December 2020 2,000 Bbls NYMEX WTI $58.65 January - December 2020 2,000 Bbls NYMEX WTI $60.00 January - December 2020 2,000 Bbls NYMEX WTI $58.05 July - December 2020 2,000 Bbls NYMEX WTI $58.10 Production volume Contract period covered per month Index Contract price Natural gas costless collars November 2020 - December 2021 50,000 Mmbtu NYMEX Henry Hub $2.30 floor / $2.90 ceiling November 2020 - December 2021 40,000 Mmbtu NYMEX Henry Hub $2.30 floor / $3.10 ceiling Natural gas fixed price swaps January 2021 - February 2022 50,000 Mmbtu NYMEX Henry Hub $2.729 Oil fixed price swaps January - December 2021 8,000 Bbls NYMEX WTI $37.00 |
Summary Of Derivative Contracts | March 31, 2020 September 30, 2019 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Non-Current Assets Current Assets Non-Current Assets Gross amounts recognized $ 4,216,915 $ - $ 2,256,639 $ 237,505 Offsetting adjustments - - - - Net presentation on Condensed Balance Sheets $ 4,216,915 $ - $ 2,256,639 $ 237,505 (a) See Note 11: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
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 as of March 31, 2020: Fair Value Measurement at March 31, 2020 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 $ - $ 3,114,037 $ - $ 3,114,037 Derivative Contracts - Collars $ - $ 1,102,878 $ - $ 1,102,878 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. |
Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3 | The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy: Quarter Ended March 31, 2020 2019 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 5,288,710 $ 29,545,702 $ - $ - Six Months Ended March 31, 2020 2019 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 5,288,710 $ 29,545,702 $ - $ - (a) At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Summary Of Derivative Instruments Contracts | Derivative contracts in place as of March 31, 2020 Production volume Contract period covered per month Index Contract price Natural gas costless collars April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.20 floor / $2.59 ceiling Natural gas fixed price swaps January - December 2020 80,000 Mmbtu NYMEX Henry Hub $2.750 April - October 2020 10,000 Mmbtu NYMEX Henry Hub $2.405 November 2020 - March 2021 10,000 Mmbtu NYMEX Henry Hub $2.661 Oil costless collars July 2019 - June 2020 2,000 Bbls NYMEX WTI $65.00 floor / $76.15 ceiling January - June 2020 2,000 Bbls NYMEX WTI $60.00 floor / $67.00 ceiling January - December 2020 2,000 Bbls NYMEX WTI $55.00 floor / $62.00 ceiling Oil fixed price swaps January - December 2020 2,000 Bbls NYMEX WTI $55.28 January - December 2020 2,000 Bbls NYMEX WTI $58.65 January - December 2020 2,000 Bbls NYMEX WTI $60.00 January - December 2020 2,000 Bbls NYMEX WTI $58.05 July - December 2020 2,000 Bbls NYMEX WTI $58.10 Production volume Contract period covered per month Index Contract price Natural gas costless collars November 2020 - December 2021 50,000 Mmbtu NYMEX Henry Hub $2.30 floor / $2.90 ceiling November 2020 - December 2021 40,000 Mmbtu NYMEX Henry Hub $2.30 floor / $3.10 ceiling Natural gas fixed price swaps January 2021 - February 2022 50,000 Mmbtu NYMEX Henry Hub $2.729 Oil fixed price swaps January - December 2021 8,000 Bbls NYMEX WTI $37.00 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Maximum percentage of operating lease right use assets to assets | 1.00% | |
Maximum percentage of Operating lease obligations to assets | 1.00% | |
Lease liability | $ 1 |
Revenues (Summary Of Disaggrega
Revenues (Summary Of Disaggregation Of Company's Oil, NGL And Natural Gas Revenues) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | $ 7,982,905 | $ 9,221,319 | $ 15,576,743 | $ 21,432,038 |
Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 4,567,856 | 3,150,418 | 7,476,958 | 7,926,562 |
Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 3,415,049 | 6,070,901 | 8,099,785 | 13,505,476 |
Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 4,767,775 | 3,929,605 | 8,233,287 | 8,408,585 |
Oil [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 3,126,132 | 1,552,380 | 4,539,343 | 3,856,185 |
Oil [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 1,641,643 | 2,377,225 | 3,693,944 | 4,552,400 |
NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 524,741 | 816,362 | 1,139,624 | 2,271,197 |
NGL [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 196,311 | 186,884 | 419,088 | 628,111 |
NGL [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 328,430 | 629,478 | 720,536 | 1,643,086 |
Natural Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 2,690,389 | 4,475,352 | 6,203,832 | 10,752,256 |
Natural Gas [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | 1,245,413 | 1,411,154 | 2,518,527 | 3,442,266 |
Natural Gas [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Oil, NGL and natural gas sales | $ 1,444,976 | $ 3,064,198 | $ 3,685,305 | $ 7,309,990 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||||
Revenue, practical expedient, financing component | true | |||||
Decrease in loss before benefit for income taxes | $ 1,717,948 | $ 1,717,948 | ||||
Decrease in net loss | $ 1,283,339 | $ 1,263,155 | ||||
Decrease in loss per common share | $ 0.08 | $ 0.08 | ||||
Revenues | $ 7,982,905 | $ 9,221,319 | $ 15,576,743 | $ 21,432,038 | ||
Oil, NGL and Natural Gas [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Revenues | $ 7,982,905 | $ 9,221,319 | 15,576,743 | $ 21,432,038 | ||
Oil, NGL and Natural Gas [Member] | New Wells on Panhandle Acreage [Member] | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Revenues | $ 549,130 | $ 1,322,115 | $ 1,871,245 | |||
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 ($) | Mar. 27, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Tax Contingency [Line Items] | |||||
Effective tax rate | (25.00%) | (6.00%) | (26.00%) | 24.00% | |
Income tax benefit | $ (6,764,000) | $ (130,000) | $ (6,510,000) | $ 3,441,000 | |
Current tax rate | 21.00% | ||||
CARES Act [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating losses carryback term | 5 years | ||||
Net operating losses carryback term start year | 2018 | ||||
Net operating losses carryback term end year | 2020 | ||||
Net operating losses carryback percentage. | 80.00% | ||||
Net operating losses percentage of increase limitation on interest expense deductibility | 30.00% | ||||
Net operating losses carryback percentage of adjusted taxable income | 50.00% | ||||
Refundable tax credit due to AMT credits | 1,400,000 | ||||
Income tax benefit | $ (203,000) | ||||
Previously enacted tax rate | 34.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility [Member] | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Line Of Credit Facility [Line Items] | |
Revolving loan credit facility | $ 200,000,000 |
Borrowing base of credit facility | $ 45,000,000 |
Credit facility maturity | Nov. 30, 2022 |
Mortgaged properties net book value | $ 42,020,263 |
Effective Interest rate | 3.89% |
Funded debt to EBITDA ratio | 400.00% |
Credit facility outstanding amount | $ 32,000,000 |
Availability under outstanding credit facility | $ 13,000,000 |
Minimum [Member] | |
Line Of Credit Facility [Line Items] | |
Current ratio | 100.00% |
Minimum [Member] | Prime Rate [Member] | |
Line Of Credit Facility [Line Items] | |
Interest rate basis | 0.50% |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line Of Credit Facility [Line Items] | |
Interest rate basis | 2.00% |
Maximum [Member] | Prime Rate [Member] | |
Line Of Credit Facility [Line Items] | |
Interest rate basis | 1.25% |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [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) | 6 Months Ended |
Mar. 31, 2020 | |
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) - USD ($) | Mar. 09, 2020 | Jan. 16, 2020 | Jan. 02, 2020 | Dec. 11, 2019 | Mar. 31, 2020 | May 31, 2018 | Mar. 31, 2014 | Mar. 31, 2010 |
Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted Stock vesting period | 3 years | |||||||
Time-Based Restricted Stock [Member] | Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded | 16,340 | 53,476 | 10,038 | |||||
Fair value of shares awarded | $ 72,550 | $ 500,000 | $ 122,062 | |||||
Time-Based Restricted Stock [Member] | Non Employee Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded | 22,300 | |||||||
Fair value of shares awarded | $ 246,640 | |||||||
Share based payment award vesting date | Dec. 31, 2020 | |||||||
Market-Based Restricted Stock [Member] | Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded | 2,534 | 21,988 | 15,058 | |||||
Fair value of shares awarded | $ 9,814 | $ 179,334 | $ 160,401 | |||||
Performance Based Restricted Stock [Member] | Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded | 2,534 | 37,045 | ||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Repurchase of common stock authorized | $ 1,500,000 | |||||||
2010 Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock authorized | 750,000 | 500,000 | 200,000 |
Restricted Stock Plan (Summary
Restricted Stock Plan (Summary Of Pre-Tax Compensation Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 343,101 | $ 286,852 | $ 491,616 | $ 446,321 |
Market-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 200,761 | 182,742 | 274,903 | 246,279 |
Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 142,340 | $ 104,110 | $ 216,713 | $ 200,042 |
Restricted Stock Plan (Summar_2
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 915,648 |
Market-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 88,147 |
Weighted Average Period (in years) | 2 years 3 months 18 days |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 827,501 |
Weighted Average Period (in years) | 2 years 2 months 8 days |
Properties And Equipment (Detai
Properties And Equipment (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)a | Mar. 31, 2019USD ($)aAsset | Dec. 31, 2018USD ($)a | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |||
Property Plant And Equipment [Line Items] | |||||||||
Proceeds from sales of assets | $ 3,376,049 | $ 9,096,938 | |||||||
Gain on sale of oil and gas properties | $ 3,272,888 | 9,096,938 | |||||||
Number of assets sold | Asset | 0 | ||||||||
Computation of Oil, Natural Gas and NGL Reserves | 12 months | ||||||||
Impairment | $ 29,545,702 | [1] | $ 0 | $ 29,545,702 | [1] | $ 0 | |||
Percentage of discount rate for developed location | 10.00% | ||||||||
Undeveloped location assigned value | $ 0 | ||||||||
Fayetteville Shale | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | 19,300,000 | ||||||||
Eagle Ford [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | 7,300,000 | $ 76,600,000 | |||||||
Other Producing Assets [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | $ 2,900,000 | ||||||||
Lea and Eddy Counties, New Mexico [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage sold | a | 530 | 206 | |||||||
Proceeds from sales of assets | $ 3,400,000 | ||||||||
Gain on sale of oil and gas properties | $ 3,300,000 | $ 9,100,000 | |||||||
Proceeds from sales of assets | $ 9,100,000 | ||||||||
Kingfisher, Canadian [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 700 | ||||||||
Purchase price of mineral acreage acquired | $ 9,300,000 | ||||||||
Blaine County, Oklahoma [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 700 | 329 | 45 | ||||||
Purchase price of mineral acreage acquired | $ 9,300,000 | $ 1,386,775 | $ 423,000 | ||||||
[1] | At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Mar. 31, 2020MMBTU$ / MMBTU$ / bblbbl |
Natural Gas Costless Collars [Member] | Derivative Contract Period One [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 10,000 |
Natural Gas Costless Collars [Member] | Derivative Contract Period One [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | $ / MMBTU | 2.20 |
Natural Gas Costless Collars [Member] | Derivative Contract Period One [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | $ / MMBTU | 2.59 |
Natural Gas Fixed Price Swaps [Member] | Derivative Contract Period Two [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 80,000 |
Contract price | $ / MMBTU | 2.750 |
Natural Gas Fixed Price Swaps [Member] | Derivative Contract Period Three [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 10,000 |
Contract price | $ / MMBTU | 2.405 |
Natural Gas Fixed Price Swaps [Member] | Derivative Contract Period Four [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 10,000 |
Contract price | $ / MMBTU | 2.661 |
Oil Costless Collars [Member] | Derivative Contract Period Five [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Costless Collars [Member] | Derivative Contract Period Five [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 65 |
Oil Costless Collars [Member] | Derivative Contract Period Five [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 76.15 |
Oil Costless Collars [Member] | Derivative Contract Period Six [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Costless Collars [Member] | Derivative Contract Period Six [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 60 |
Oil Costless Collars [Member] | Derivative Contract Period Six [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 67 |
Oil Costless Collars [Member] | Derivative Contract Period Seven [Member] | |
Derivative [Line Items] | |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Costless Collars [Member] | Derivative Contract Period Seven [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract price | 55 |
Oil Costless Collars [Member] | Derivative Contract Period Seven [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract price | 62 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Eight [Member] | |
Derivative [Line Items] | |
Contract price | 55.28 |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Nine [Member] | |
Derivative [Line Items] | |
Contract price | 58.65 |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Ten [Member] | |
Derivative [Line Items] | |
Contract price | 60 |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Eleven [Member] | |
Derivative [Line Items] | |
Contract price | 58.05 |
Production volume covered per month - Oil | bbl | 2,000 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Twelve [Member] | |
Derivative [Line Items] | |
Contract price | 58.10 |
Production volume covered per month - Oil | bbl | 2,000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||
Fair value of derivative contracts, asset | $ 4,216,915 | $ 4,216,915 | $ 2,494,144 | ||
Net cash received related to derivative contracts settled | $ 629,139 | $ 181,107 | $ 1,530,912 | ||
Net cash paid related to derivative contracts settled | $ 1,518,294 |
Derivatives (Summary Of Deriv_2
Derivatives (Summary Of Derivative Contracts) (Details) - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Gross amounts recognized - Current Assets | [1] | $ 4,216,915 | $ 2,256,639 |
Net presentation on Condensed Balance Sheets - Current Assets | [1] | $ 4,216,915 | 2,256,639 |
Gross amounts recognized - Non-Current Assets | [1] | 237,505 | |
Net presentation on Condensed Balance Sheets - Non-Current Assets | [1] | $ 237,505 | |
[1] | See Note 11: 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, 2020USD ($) |
Swap [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ 3,114,037 |
Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | 3,114,037 |
Collars [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | 1,102,878 |
Collars [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ 1,102,878 |
Fair Value Measurements (Summ_2
Fair Value Measurements (Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||||
Fair Value Disclosures [Abstract] | |||||||
Producing Properties, Fair Value | [1] | $ 5,288,710 | $ 5,288,710 | ||||
Provision for impairment | $ 29,545,702 | [1] | $ 0 | $ 29,545,702 | [1] | $ 0 | |
[1] | At the end of each quarter, the Company assessed the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil, NGL and natural gas prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Subsequent Events - Summary of
Subsequent Events - Summary of New Derivative Instruments Contracts (Details) - Subsequent Event [Member] | May 07, 2020MMBTU$ / MMBTU$ / bblbbl |
Natural Gas Costless Collars [Member] | Derivative Contract Period Thirteen [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 50,000 |
Natural Gas Costless Collars [Member] | Derivative Contract Period Thirteen [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Contract price | 2.30 |
Natural Gas Costless Collars [Member] | Derivative Contract Period Thirteen [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Contract price | 2.90 |
Natural Gas Costless Collars [Member] | Derivative Contract Period Fourteen [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 40,000 |
Natural Gas Costless Collars [Member] | Derivative Contract Period Fourteen [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Contract price | 2.30 |
Natural Gas Costless Collars [Member] | Derivative Contract Period Fourteen [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Contract price | 3.10 |
Natural Gas Fixed Price Swaps [Member] | Derivative Contract Period Fifteen [Member] | |
Subsequent Event [Line Items] | |
Production volume covered per month - Gas/Natural gas | MMBTU | 50,000 |
Contract price | 2.729 |
Oil Fixed Price Swaps [Member] | Derivative Contract Period Sixteen [Member] | |
Subsequent Event [Line Items] | |
Contract price | $ / bbl | 37 |
Production volume covered per month - Oil | bbl | 8,000 |