Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Document Information [Line Items] | ||
Entity Registrant Name | PHX MINERALS INC. | |
Entity Central Index Key | 0000315131 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
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 | 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 | 36,433,063 | |
Title of each class | Common Stock, $0.01666 par value | |
Trading Symbol(s) | PHX | |
Name of each exchange on which registered | NYSE | |
Former Address [Member] | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 1601 NW Expressway | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73118 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 4,489,282 | $ 2,438,511 | |
Natural gas, oil, and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 11,780,557 | 6,428,982 | |
Refundable income taxes | 860,416 | 2,413,942 | |
Other | 1,276,942 | 942,082 | |
Total current assets | 18,407,197 | 12,223,517 | |
Properties and equipment at cost, based on successful efforts accounting: | |||
Producing natural gas and oil properties | 265,800,998 | 319,984,874 | |
Non-producing natural gas and oil properties | 50,204,756 | 40,466,098 | |
Other | 972,770 | 794,179 | |
Gross properties and equipment, at cost, based on successful efforts accounting | 316,978,524 | 361,245,151 | |
Less accumulated depreciation, depletion and amortization | (193,551,159) | (257,643,661) | |
Net properties and equipment | 123,427,365 | 103,601,490 | |
Operating lease right-of-use assets | 770,952 | 607,414 | |
Other, net | 764,068 | 578,593 | |
Total assets | 143,369,582 | 117,011,014 | |
Current liabilities: | |||
Accounts payable | 486,034 | 772,717 | |
Derivative contracts, net | [1] | 10,189,546 | 12,087,988 |
Income taxes payable | 334,050 | ||
Current portion of operating lease liability | 190,604 | 132,287 | |
Accrued liabilities and other | 1,489,127 | 1,809,337 | |
Total current liabilities | 12,355,311 | 15,136,379 | |
Long-term debt | 28,300,000 | 17,500,000 | |
Deferred income taxes, net | 550,906 | 343,906 | |
Asset retirement obligations | 2,116,246 | 2,836,172 | |
Derivative contracts, net | [1] | 1,068,544 | 1,696,479 |
Operating lease liability, net of current portion | 1,015,405 | 789,339 | |
Total liabilities | 45,406,412 | 38,302,275 | |
Stockholders' equity: | |||
Common Stock, $0.01666 par value; 54,000,500 shares authorized and 35,680,970 issued at June 30, 2022; 36,000,500 shares authorized and 32,770,433 issued at September 30, 2021 | 594,445 | 545,956 | |
Capital in excess of par value | 42,849,595 | 33,213,645 | |
Deferred directors' compensation | 1,451,690 | 1,768,151 | |
Retained earnings | 58,676,047 | 48,966,420 | |
Stockholders' Equity | 103,571,777 | 84,494,172 | |
Less treasury stock, at cost; 377,232 shares at June 30, 2022, and 388,545 shares at September 30, 2021 | (5,608,607) | (5,785,433) | |
Total stockholders' equity | 97,963,170 | 78,708,739 | |
Total liabilities and stockholders' equity | $ 143,369,582 | $ 117,011,014 | |
[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 ($) | Jun. 30, 2022 | Sep. 30, 2021 |
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 | 36,000,500 |
Common stock, shares issued | 35,680,970 | 32,770,433 |
Treasury stock, shares | 377,232 | 388,545 |
Condensed Statements Of Operati
Condensed Statements Of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Natural gas, oil and NGL sales | $ 19,561,568 | $ 10,899,820 | $ 48,032,597 | $ 25,670,624 |
Lease bonuses and rental income | 209,329 | 259,152 | 450,152 | 319,139 |
Gains (losses) on derivative contracts | (2,387,226) | (5,487,483) | (12,534,464) | (8,089,662) |
Revenues | 17,383,671 | 5,671,489 | 35,948,285 | 17,900,101 |
Costs and expenses: | ||||
Lease operating expenses | 900,807 | 1,064,989 | 3,086,272 | 3,100,052 |
Transportation, gathering and marketing | 1,430,136 | 1,538,174 | 4,132,258 | 4,138,653 |
Production taxes | 925,197 | 596,858 | 2,301,537 | 1,316,038 |
Depreciation, depletion and amortization | 2,022,832 | 2,137,707 | 5,727,708 | 6,176,173 |
Provision for impairment | 6,277 | 45,855 | 11,862 | 45,855 |
Interest expense | 286,345 | 220,439 | 693,276 | 790,202 |
General and administrative | 2,877,614 | 2,275,104 | 7,717,435 | 6,065,677 |
Losses (gains) on asset sales and other | (630,547) | (35,043) | (743,867) | (177,512) |
Total costs and expenses | 7,818,661 | 7,844,083 | 22,926,481 | 21,455,138 |
Income (loss) before provision (benefit) for income taxes | 9,565,010 | (2,172,594) | 13,021,804 | (3,555,037) |
Provision (benefit) for income taxes | 976,000 | (816,000) | 1,771,000 | (1,102,000) |
Net income (loss) | $ 8,589,010 | $ (1,356,594) | $ 11,250,804 | $ (2,453,037) |
Basic earnings (loss) per common share | $ 0.25 | $ (0.05) | $ 0.33 | $ (0.10) |
Diluted earnings (loss) per common share | $ 0.25 | $ (0.05) | $ 0.33 | $ (0.10) |
Weighted average shares outstanding: | ||||
Basic | 34,652,155 | 28,309,258 | 34,009,105 | 24,482,639 |
Diluted | 34,851,214 | 28,309,258 | 34,009,105 | 24,482,639 |
Dividends per share of common stock paid in period | $ 0.02 | $ 0.01 | $ 0.045 | $ 0.03 |
Statements Of Stockholders' Equ
Statements Of Stockholders' Equity - USD ($) | Total | At-the-market Offering [Member] | Common Stock [Member] | Common Stock [Member] At-the-market Offering [Member] | Capital in Excess of Par Value [Member] | Capital in Excess of Par Value [Member] At-the-market Offering [Member] | Deferred Directors' Compensation [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balances at Sep. 30, 2020 | $ 62,993,926 | $ 377,304 | $ 10,649,611 | $ 1,874,007 | $ 56,244,100 | $ (6,151,096) | |||
Balances, shares at Sep. 30, 2020 | 22,647,306 | ||||||||
Balances, Treasury shares at Sep. 30, 2020 | (411,487) | ||||||||
Net income (loss) | (596,720) | (596,720) | |||||||
Equity issued to acquire assets | 225,758 | $ 2,555 | 223,203 | ||||||
Equity issued to acquire assets, shares | 153,375 | ||||||||
Restricted stock awards | 122,978 | 122,978 | |||||||
Dividends | (454,936) | (454,936) | |||||||
Distribution of restricted stock to officers and directors | 353 | (316,886) | $ 317,239 | ||||||
Distribution of restricted stock to officers and directors, shares | 21,220 | ||||||||
Increase in deferred directors' compensation charged to expense | 44,527 | 44,527 | |||||||
Balances at Dec. 31, 2020 | 62,335,886 | $ 379,859 | 10,678,906 | 1,918,534 | 55,192,444 | $ (5,833,857) | |||
Balances, shares at Dec. 31, 2020 | 22,800,681 | ||||||||
Balances, Treasury shares at Dec. 31, 2020 | (390,267) | ||||||||
Balances at Sep. 30, 2020 | 62,993,926 | $ 377,304 | 10,649,611 | 1,874,007 | 56,244,100 | $ (6,151,096) | |||
Balances, shares at Sep. 30, 2020 | 22,647,306 | ||||||||
Balances, Treasury shares at Sep. 30, 2020 | (411,487) | ||||||||
Net income (loss) | (2,453,037) | ||||||||
Balances at Jun. 30, 2021 | 75,296,561 | $ 503,136 | 25,844,372 | 1,701,110 | 53,033,376 | $ (5,785,433) | |||
Balances, shares at Jun. 30, 2021 | 30,200,226 | ||||||||
Balances, Treasury shares at Jun. 30, 2021 | (388,545) | ||||||||
Balances at Dec. 31, 2020 | 62,335,886 | $ 379,859 | 10,678,906 | 1,918,534 | 55,192,444 | $ (5,833,857) | |||
Balances, shares at Dec. 31, 2020 | 22,800,681 | ||||||||
Balances, Treasury shares at Dec. 31, 2020 | (390,267) | ||||||||
Net income (loss) | (499,723) | (499,723) | |||||||
Cost of equity issuance | (29,240) | (29,240) | |||||||
Restricted stock awards | 161,170 | 161,170 | |||||||
Dividends | (289,997) | (289,997) | |||||||
Distribution of restricted stock to officers and directors | (1,268) | $ (1,268) | |||||||
Distribution of restricted stock to officers and directors, shares | (556) | ||||||||
Distribution of deferred directors' compensation | $ 409 | 339,913 | (340,322) | ||||||
Distribution of deferred directors' compensation, shares | 24,545 | ||||||||
Increase in deferred directors' compensation charged to expense | 55,727 | 55,727 | |||||||
Balances at Mar. 31, 2021 | 61,732,555 | $ 380,268 | 11,150,749 | 1,633,939 | 54,402,724 | $ (5,835,125) | |||
Balances, shares at Mar. 31, 2021 | 22,825,226 | ||||||||
Balances, Treasury shares at Mar. 31, 2021 | (390,823) | ||||||||
Net income (loss) | (1,356,594) | (1,356,594) | |||||||
Equity issued | 11,142,340 | $ 102,876 | 11,039,464 | ||||||
Equity issued, shares | 6,175,000 | ||||||||
Equity issued to acquire assets | 3,468,000 | $ 19,992 | 3,448,008 | ||||||
Equity issued to acquire assets, shares | 1,200,000 | ||||||||
Purchase of treasury stock | (2,741) | $ (2,741) | |||||||
Purchase of treasury stock, shares | (1,229) | ||||||||
Restricted stock awards | 258,526 | 258,526 | |||||||
Dividends | (12,754) | (12,754) | |||||||
Distribution of restricted stock to officers and directors | 58 | (52,375) | $ 52,433 | ||||||
Distribution of restricted stock to officers and directors, shares | 3,507 | ||||||||
Increase in deferred directors' compensation charged to expense | 67,171 | 67,171 | |||||||
Balances at Jun. 30, 2021 | 75,296,561 | $ 503,136 | 25,844,372 | 1,701,110 | 53,033,376 | $ (5,785,433) | |||
Balances, shares at Jun. 30, 2021 | 30,200,226 | ||||||||
Balances, Treasury shares at Jun. 30, 2021 | (388,545) | ||||||||
Balances at Sep. 30, 2021 | $ 78,708,739 | $ 545,956 | 33,213,645 | 1,768,151 | 48,966,420 | $ (5,785,433) | |||
Balances, shares at Sep. 30, 2021 | 32,770,433 | ||||||||
Balances, Treasury shares at Sep. 30, 2021 | (388,545) | (388,545) | |||||||
Net income (loss) | $ 6,682,249 | 6,682,249 | |||||||
Equity issued to acquire assets | 3,486,303 | $ 25,315 | 3,460,988 | ||||||
Equity issued to acquire assets, shares | 1,519,481 | ||||||||
Cost of equity issuance | $ (10,730) | $ (10,730) | |||||||
Purchase of treasury stock | (1,855) | $ (1,855) | |||||||
Purchase of treasury stock, shares | (700) | ||||||||
Restricted stock awards | 255,844 | 255,844 | |||||||
Dividends | (849,689) | (849,689) | |||||||
Distribution of restricted stock to officers and directors | 2,121 | $ 1,921 | (178,481) | $ 178,681 | |||||
Distribution of restricted stock to officers and directors, shares | 115,373 | 12,013 | |||||||
Increase in deferred directors' compensation charged to expense | 67,570 | 67,570 | |||||||
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) | ||||||||
Balances at Sep. 30, 2021 | $ 78,708,739 | $ 545,956 | 33,213,645 | 1,768,151 | 48,966,420 | $ (5,785,433) | |||
Balances, shares at Sep. 30, 2021 | 32,770,433 | ||||||||
Balances, Treasury shares at Sep. 30, 2021 | (388,545) | (388,545) | |||||||
Net income (loss) | $ 11,250,804 | ||||||||
Balances at Jun. 30, 2022 | $ 97,963,170 | $ 594,445 | 42,849,595 | 1,451,690 | 58,676,047 | $ (5,608,607) | |||
Balances, shares at Jun. 30, 2022 | 35,680,970 | ||||||||
Balances, Treasury shares at Jun. 30, 2022 | (377,232) | (377,232) | |||||||
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) | |||||||
Equity issued | 8,017 | $ 45 | 7,972 | ||||||
Equity issued, shares | 2,710 | ||||||||
Cost of equity issuance | (48,166) | (48,166) | |||||||
Restricted stock awards | 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) | ||||||||
Net income (loss) | 8,589,010 | 8,589,010 | |||||||
Equity issued | $ 4,742,769 | $ 20,184 | $ 4,722,585 | ||||||
Equity issued, shares | 1,211,521 | ||||||||
Restricted stock awards | 530,066 | 530,066 | |||||||
Dividends | (691,488) | (691,488) | |||||||
Increase in deferred directors' compensation charged to expense | 44,267 | 44,267 | |||||||
Balances at Jun. 30, 2022 | $ 97,963,170 | $ 594,445 | $ 42,849,595 | $ 1,451,690 | $ 58,676,047 | $ (5,608,607) | |||
Balances, shares at Jun. 30, 2022 | 35,680,970 | ||||||||
Balances, Treasury shares at Jun. 30, 2022 | (377,232) | (377,232) |
Statements Of Stockholders' E_2
Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends per share | $ 0.02 | $ 0.025 | $ 0.01 | $ 0.02 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income (loss) | $ 11,250,804 | $ (2,453,037) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 5,727,708 | 6,176,173 |
Impairment of producing properties | 11,862 | 45,855 |
Provision for deferred income taxes | 207,000 | (1,117,000) |
Gain from leasing fee mineral acreage | (449,053) | (316,541) |
Proceeds from leasing fee mineral acreage | 545,920 | 334,938 |
Net (gain) loss on sales of assets | (865,035) | (136,596) |
Directors' deferred compensation expense | 147,298 | 167,425 |
Total (gain) loss on derivative contracts | 12,534,464 | 8,089,662 |
Cash receipts (payments) on settled derivative contracts | (1,215,245) | (688,807) |
Restricted stock awards | 1,219,047 | 542,674 |
Other | 55,653 | 72,126 |
Cash provided (used) by changes in assets and liabilities: | ||
Natural gas, oil and NGL sales receivables | (5,351,575) | (2,134,395) |
Other current assets | (78,262) | (89,957) |
Accounts payable | (251,059) | 209,014 |
Income taxes receivable | 1,553,526 | 1,425,471 |
Other non-current assets | (393,492) | 87,065 |
Income taxes payable | (334,050) | |
Accrued liabilities | 23,463 | 26,263 |
Total adjustments | 13,088,170 | 12,693,370 |
Net cash provided by operating activities | 24,338,974 | 10,240,333 |
Investing Activities | ||
Capital expenditures | (351,524) | (696,759) |
Acquisition of minerals and overriding royalty interests | (29,872,407) | (19,337,265) |
Net proceeds from sales of assets | 7,852,389 | 533,371 |
Net cash provided (used) by investing activities | (22,371,542) | (19,500,653) |
Financing Activities | ||
Borrowings under Credit Facility | 14,300,000 | |
Payments of loan principal | (3,500,000) | (8,850,000) |
Net proceeds from equity issuance | 4,670,112 | 11,088,858 |
Cash receipts from (payments on) off-market derivative contracts | (13,845,596) | |
Purchases of treasury stock | (2,741) | |
Payments of dividends | (1,541,177) | (757,692) |
Net cash provided (used) by financing activities | 83,339 | 1,478,425 |
Increase (decrease) in cash and cash equivalents | 2,050,771 | (7,781,895) |
Cash and cash equivalents at beginning of period | 2,438,511 | 10,690,395 |
Cash and cash equivalents at end of period | 4,489,282 | 2,908,500 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Gross additions to properties and equipment | 33,431,875 | 23,794,178 |
Value of shares used for acquisitions | (3,510,001) | (3,718,000) |
Net (increase) decrease in accounts payable for properties and equipment additions | 302,057 | (42,154) |
Capital expenditures and acquisitions | $ 30,223,931 | $ 20,034,024 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Principles | 9 Months Ended |
Jun. 30, 2022 | |
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 the full fiscal 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, 2021. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or the “Company” refer to PHX Minerals Inc. Recent Accounting Pronouncements Standard Description Date of Adoption Impact on Financial Statements or Other Significant Matters Adoption of New Accounting Pronouncements ASU 2019-12, Simplifying the Accounting for Income Taxes This standard is intended to clarify and simplify the accounting for income taxes by removing certain exceptions and amending existing guidance. First Fiscal Quarter 2022 The adoption of this update did not have a material impact on the Company's financial statements and related disclosures. 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 Company’s financial statements upon adoption. |
Revenues
Revenues | 9 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | NOTE 2: Revenues 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. Revenues from c ontracts with c ustomers 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 and nine months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Nine Months Ended June 30, 2022 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 8,457,521 $ 4,494,665 $ 12,952,186 $ 19,279,414 $ 10,898,801 $ 30,178,215 Oil revenue 3,340,065 1,808,814 5,148,879 7,784,554 5,652,135 13,436,689 NGL revenue 675,829 784,674 1,460,503 2,008,959 2,408,734 4,417,693 Natural gas, oil and NGL sales $ 12,473,415 $ 7,088,153 $ 19,561,568 $ 29,072,927 $ 18,959,670 $ 48,032,597 Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 3,023,941 $ 3,234,656 $ 6,258,597 $ 6,580,533 $ 7,509,962 $ 14,090,495 Oil revenue 1,934,966 1,603,996 3,538,962 4,748,987 4,275,962 9,024,949 NGL revenue 453,935 648,326 1,102,261 1,095,124 1,460,056 2,555,180 Natural gas, oil and NGL sales $ 5,412,842 $ 5,486,978 $ 10,899,820 $ 12,424,644 $ 13,245,980 $ 25,670,624 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 three and nine months ended June 30, 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 2022 and 2021 third quarters, the Company identified several producing properties on its minerals that had production dates prior to the 2022 and 2021 third quarters. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the third quarter 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 for the three months ended June 30, 2022, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $894,099, of which $83,352 related to the production periods before October 1, 2021 and $810,747 related to the first and second fiscal quarters of fiscal 2022. In connection with obtaining more relevant information on new wells on Company acreage for the three months ended June 30, 2021 , the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $365,871 of which $72,717 related to the production periods before October 1, 2020, and $293,154 related to the first and second fiscal quarters of fiscal 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, 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 and for the nine months ended June 30, 2022, the net impact of the change in the Company’s valuation allowance against its deferred tax assets from September 30, 2021 is a decrease of $717,875 recorded in the income tax provision. The Company’s effective tax rate for the nine months ended June 30, 2022 was a 14% provision as compared to a 31% benefit for the nine months ended June 30, 2021. During the three and nine months ended June 30, 2022, the Company made income tax payments of $1.9 million and $2.6 million, respectively. 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 , the Company received $2.2 million associated with the carryback of the Company’s 2020 federal net operating loss. |
Basic And Diluted Earnings (Los
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") | 9 Months Ended |
Jun. 30, 2022 | |
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 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 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 June 30, 2022. For the three and nine months ended June 30, 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 720,254 and 445,943, respectively, for the three and nine months ended June 30, 2022, and 584,547 and 377,808, respectively, for the three and nine months ended June 30, 2021. The following table presents a reconciliation of the components of basic and diluted EPS. Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Basic EPS Numerator: Basic net income (loss) $ 8,589,010 $ (1,356,594 ) $ 11,250,804 $ (2,453,037 ) Denominator: Common Shares 34,438,807 28,117,199 33,792,632 24,308,185 Unissued, directors' deferred compensation shares 213,348 192,059 216,473 174,454 Basic weighted average shares outstanding 34,652,155 28,309,258 34,009,105 24,482,639 Basic EPS $ 0.25 $ (0.05 ) $ 0.33 $ (0.10 ) Diluted EPS Numerator: Basic net income (loss) $ 8,589,010 $ (1,356,594 ) $ 11,250,804 $ (2,453,037 ) Diluted net income (loss) 8,589,010 (1,356,594 ) 11,250,804 (2,453,037 ) Denominator: Basic weighted average shares outstanding 34,652,155 28,309,258 34,009,105 24,482,639 Effects of dilutive securities: Unvested restricted stock 199,059 - - - Diluted weighted average shares outstanding 34,851,214 28,309,258 34,009,105 24,482,639 Diluted EPS $ 0.25 $ (0.05 ) $ 0.33 $ (0.10 ) |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 5: Long-Term Debt T he 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 has a borrowing base of , and a maturity date of September 1, 2025. The Credit Facility is secured by the Company’s personal property and at least 80% of the total value of the proved, developed and producing oil and gas properties. The interest rate is based on either (a) the Secured Overnight Financing Rate (“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. 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 June 30, 2022 was $353,084. 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 June 30, 2022 , the Company was in compliance with the covenants of the Credit Facility, had $28,300,000 in outstanding borrowings and had $21,700,000 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 shall have the meaning assigned to them in the Credit Agreement |
Deferred Compensation Plan For
Deferred Compensation Plan For Non-Employee Directors | 9 Months Ended |
Jun. 30, 2022 | |
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 | 9 Months Ended |
Jun. 30, 2022 | |
Restricted Stock Plan [Abstract] | |
Restricted Stock Plan | NOTE 7: Restricted Stock Plan On March 2, 2022, the Company awarded shares of Common Stock in the form of time-based and market-based restricted stock to the directors, employees and officers of the Company. Non-employee directors received 138,249 time-based shares with a fair value on the award date of $387,095. These shares vest in December 2022 three-year three-year On April 1, 2022, the Company awarded shares of common stock in the form of time-based restricted stock to a new director. The non-employee director received 20,737 time-based shares with a fair value on the award date of $62,004. These shares vest in December of 2022 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 and nine months ended June 30, 2022 and 2021 related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Market-based, restricted stock $ 313,728 $ 79,118 $ 705,082 $ 168,483 Time-based, restricted stock 216,338 179,408 513,965 374,191 Performance-based, restricted stock - - - - Total compensation expense $ 530,066 $ 258,526 $ 1,219,047 $ 542,674 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 is shown in the following table: As of June 30, 2022 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 1,621,184 1.50 Time-based, restricted stock 649,773 1.37 Performance-based, restricted stock - Total $ 2,270,957 |
Properties And Equipment
Properties And Equipment | 9 Months Ended |
Jun. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Properties And Equipment | NOTE 8: Properties and Equipment Properties and equipment and related accumulated DD&A as of June 30, 2022 and September 30, 2021 are as follows: June 30, 2022 September 30, 2021 Properties and equipment at cost, based on successful efforts accounting: Producing natural gas and oil properties $ 265,800,998 $ 319,984,874 Non-producing natural gas and oil properties 50,204,756 40,466,098 Other property and equipment 972,770 794,179 316,978,524 361,245,151 Less accumulated depreciation, depletion and amortization (193,551,159 ) (257,643,661 ) Net properties and equipment $ 123,427,365 $ 103,601,490 Acquisitions The Company made the following property acquisitions during the nine-month periods ended June 30, 2022 Quarter Ended (4) Net royalty acres (1)(2) Cash Number of shares (3) Total Purchase Price (1) Area of Interest June 30, 2022 60 $0.6 million - $0.6 million SCOOP / OK 46 $0.8 million - $0.8 million Haynesville / LA 56 $0.4 million - $0.4 million Haynesville / LA 88 $0.9 million - $0.9 million SCOOP / OK 503 $5.0 million - $5.0 million Haynesville / LA, TX 92 $0.6 million - $0.6 million Haynesville / LA 25 $0.3 million - $0.3 million Haynesville / LA 68 $0.5 million - $0.5 million SCOOP / OK March 31, 2022 58 $0.5 million - $0.5 million SCOOP / OK 500 $6.4 million - $6.4 million Haynesville / LA 68 $0.7 million - $0.7 million Haynesville / TX 166 $1.3 million - $1.3 million SCOOP / OK 33 $0.4 million - $0.4 million Haynesville / TX December 31, 2021 426 $5.8 million - $5.8 million Haynesville / LA 847 $0.6 million 1,519,481 $4.1 million Haynesville / LA 172 $1.4 million - $1.4 million SCOOP / OK 103 $0.6 million - $0.6 million Haynesville / TX 116 $1.7 million - $1.7 million Haynesville / LA 220 $1.2 million - $1.2 million SCOOP / OK June 30, 2021 262 $1.3 million - $1.3 million Haynesville / LA 131 $1.0 million - $1.0 million Haynesville / TX 2,514 $9.5 million 1,200,000 $13.0 million SCOOP / OK March 31, 2021 No significant acquisitions December 31, 2020 142 $1.0 million - $1.0 million Haynesville / TX 184 $0.8 million - $0.8 million Haynesville / TX 386 $3.5 million - $3.5 million Haynesville / TX 297 $2.0 million 153,375 $2.3 million SCOOP / OK (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. (3) The Company’s policy is to classify all costs associated with equity issuances as financial costs in the Statements of Cash Flows. (4) Presented in chronological order with most recent at top. All purchases made in 2021 2022 Divestitures The Company made the following property divestitures during the nine-month periods ended June 30, 2022 Quarter Ended ( 3) Net mineral acres ( 1) (2) Sale Price Gain/(Loss) Location June 30, 2022 43 acres $0.1 million $0.1 million TX 9 wellbores $0.3 million $0.1 million OK 83 acres $0.1 million $0.1 million OK 16 wellbores $0.1 million $ - OK 2 wellbores $0.1 million $0.1 million OK 2,255 acres $0.3 million $0.3 million AR / OK / TX March 31, 2022 7,071 acres $1.6 million $1.6 million NM / TX 130 acres $0.5 million $0.5 million TX December 31, 2021 98 wellbores $2.0 million ($3.5) million OK 95 wellbores $0.5 million $0.2 million OK / TX 499 wellbores $2.1 million $1.1 million AR June 30, 2021 2,857 acres $0.3 million $0.2 million Central Basin Platform, TX March 31, 2021 No significant divestitures December 31, 2020 No significant divestitures (1) (2) Number of wellbores associated with working interests sold. (3) 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. 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 three and nine months ended June 30, 2022 , management’s assessment resulted in no impairment provision s on producing properties . T he Company wrote off $ 11,862 on wells assigned to the operator with zero consideration received during the nine months ended June 30, 2022 . For the three and nine months ended June 30, 2021 , management’s assessment resulted in an impairment provision of $37,879 on producing properties and $7,976 on wells that the Company wrote off. |
Derivatives
Derivatives | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 Fiscal Period Contract total volume Index Contract average price Natural gas costless collars Remaining 2022 370,000 Mmbtu NYMEX Henry Hub $4.21 floor / $6.65 ceiling 2023 890,000 Mmbtu NYMEX Henry Hub $4.49 floor / $8.10 ceiling 2024 60,000 Mmbtu NYMEX Henry Hub $3.00 floor / $4.70 ceiling Natural gas fixed price swaps Remaining 2022 810,000 Mmbtu NYMEX Henry Hub $3.00 2023 2,100,000 Mmbtu NYMEX Henry Hub $3.24 2024 380,000 Mmbtu NYMEX Henry Hub $3.41 Oil costless collars 2023 15,000 Bbls NYMEX WTI $75.00 floor / $96.00 ceiling Oil fixed price swaps Remaining 2022 41,000 Bbls NYMEX WTI $45.48 2023 66,750 Bbls NYMEX WTI $62.11 2024 11,250 Bbls NYMEX WTI $73.35 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 liability of $11,258,090 as of June 30, 2022, and a net liability of $13,784,467 as of September 30, 2021. 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 Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Cash received (paid) on derivative contracts: Natural gas costless collars $ (653,495 ) $ (11,975 ) $ (805,685 ) $ (21,064 ) Natural gas fixed price swaps ( 1) (3,562,961 ) (20,185 ) (5,390,089 ) (18,943 ) Oil costless collars - (346,786 ) - (370,432 ) Oil fixed price swaps ( 1) (1,453,691 ) (625,744 ) (2,399,472 ) (278,368 ) Cash received (paid) on derivative contracts, net $ (5,670,147 ) $ (1,004,690 ) $ (8,595,246 ) $ (688,807 ) Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ 926,778 $ (1,732,932 ) $ (458,854 ) $ (1,135,852 ) Natural gas fixed price swaps 1,853,506 (953,201 ) (1,355,455 ) (670,605 ) Oil costless collars (38,910 ) (680,443 ) (38,910 ) (1,787,689 ) Oil fixed price swaps 541,547 (1,116,217 ) (2,085,999 ) (3,806,709 ) Non-cash gain (loss) on derivative contracts, net $ 3,282,921 $ (4,482,793 ) $ (3,939,218 ) $ (7,400,855 ) Gains (losses) on derivative contracts, net $ (2,387,226 ) $ (5,487,483 ) $ (12,534,464 ) $ (8,089,662 ) (1) For the three and nine months ended June 30, 2022, excludes $1,284,024 and $6,465,597, 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 $13,845,596 for the nine months ended June 30, 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 June 30, 2022 and September 30, 2021. The Company has offset all amounts subject to master netting agreements in the Company's balance sheets at June 30, 2022 and September 30, 2021. June 30, 2022 September 30, 2021 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 Liabilities Gross amounts recognized $ 763,554 $ 10,953,100 $ 21,155 $ 1,089,699 $ 17,395 $ 12,105,383 $ 1,696,479 Offsetting adjustments (763,554 ) (763,554 ) (21,155 ) (21,155 ) (17,395 ) (17,395 ) - Net presentation on condensed balance sheets $ - $ 10,189,546 $ - $ 1,068,544 $ - $ 12,087,988 $ 1,696,479 (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 | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022: Fair Value Measurement at June 30, 2022 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 $ - $ (10,760,325 ) $ - $ (10,760,325 ) Derivative Contracts - Collars $ - $ (497,765 ) $ - $ (497,765 ) 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 June 30, 2022 and September 30, 2021, 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
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 our 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 | 9 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12: Subsequent Events Derivatives Subsequent to June 30, 2022 Contract Contract period total volume Index Contract price Oil fixed price swaps April 2023 - December 2023 9,000 Bbls NYMEX WTI $ 80.74 Acquisitions Subsequent to June 30, 2022 Divestitures Subsequent to June 30, 2022 |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Principles (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
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 the full fiscal 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, 2021. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or the “Company” refer to PHX Minerals Inc. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Description Date of Adoption Impact on Financial Statements or Other Significant Matters Adoption of New Accounting Pronouncements ASU 2019-12, Simplifying the Accounting for Income Taxes This standard is intended to clarify and simplify the accounting for income taxes by removing certain exceptions and amending existing guidance. First Fiscal Quarter 2022 The adoption of this update did not have a material impact on the Company's financial statements and related disclosures. 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 Company’s financial statements upon adoption. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 and nine months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Nine Months Ended June 30, 2022 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 8,457,521 $ 4,494,665 $ 12,952,186 $ 19,279,414 $ 10,898,801 $ 30,178,215 Oil revenue 3,340,065 1,808,814 5,148,879 7,784,554 5,652,135 13,436,689 NGL revenue 675,829 784,674 1,460,503 2,008,959 2,408,734 4,417,693 Natural gas, oil and NGL sales $ 12,473,415 $ 7,088,153 $ 19,561,568 $ 29,072,927 $ 18,959,670 $ 48,032,597 Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 3,023,941 $ 3,234,656 $ 6,258,597 $ 6,580,533 $ 7,509,962 $ 14,090,495 Oil revenue 1,934,966 1,603,996 3,538,962 4,748,987 4,275,962 9,024,949 NGL revenue 453,935 648,326 1,102,261 1,095,124 1,460,056 2,555,180 Natural gas, oil and NGL sales $ 5,412,842 $ 5,486,978 $ 10,899,820 $ 12,424,644 $ 13,245,980 $ 25,670,624 |
Basic And Diluted Earnings (L_2
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Basic EPS Numerator: Basic net income (loss) $ 8,589,010 $ (1,356,594 ) $ 11,250,804 $ (2,453,037 ) Denominator: Common Shares 34,438,807 28,117,199 33,792,632 24,308,185 Unissued, directors' deferred compensation shares 213,348 192,059 216,473 174,454 Basic weighted average shares outstanding 34,652,155 28,309,258 34,009,105 24,482,639 Basic EPS $ 0.25 $ (0.05 ) $ 0.33 $ (0.10 ) Diluted EPS Numerator: Basic net income (loss) $ 8,589,010 $ (1,356,594 ) $ 11,250,804 $ (2,453,037 ) Diluted net income (loss) 8,589,010 (1,356,594 ) 11,250,804 (2,453,037 ) Denominator: Basic weighted average shares outstanding 34,652,155 28,309,258 34,009,105 24,482,639 Effects of dilutive securities: Unvested restricted stock 199,059 - - - Diluted weighted average shares outstanding 34,851,214 28,309,258 34,009,105 24,482,639 Diluted EPS $ 0.25 $ (0.05 ) $ 0.33 $ (0.10 ) |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 nine months ended June 30, 2022 and 2021 related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Market-based, restricted stock $ 313,728 $ 79,118 $ 705,082 $ 168,483 Time-based, restricted stock 216,338 179,408 513,965 374,191 Performance-based, restricted stock - - - - Total compensation expense $ 530,066 $ 258,526 $ 1,219,047 $ 542,674 |
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 is shown in the following table: As of June 30, 2022 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 1,621,184 1.50 Time-based, restricted stock 649,773 1.37 Performance-based, restricted stock - Total $ 2,270,957 |
Properties And Equipment (Table
Properties And Equipment (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Property Plant And Equipment [Abstract] | |
Summary of Properties and Equipment and Related Accumulated DD&A | Properties and equipment and related accumulated DD&A as of June 30, 2022 and September 30, 2021 are as follows: June 30, 2022 September 30, 2021 Properties and equipment at cost, based on successful efforts accounting: Producing natural gas and oil properties $ 265,800,998 $ 319,984,874 Non-producing natural gas and oil properties 50,204,756 40,466,098 Other property and equipment 972,770 794,179 316,978,524 361,245,151 Less accumulated depreciation, depletion and amortization (193,551,159 ) (257,643,661 ) Net properties and equipment $ 123,427,365 $ 103,601,490 |
Schedule of Property Acquisitions | The Company made the following property acquisitions during the nine-month periods ended June 30, 2022 Quarter Ended (4) Net royalty acres (1)(2) Cash Number of shares (3) Total Purchase Price (1) Area of Interest June 30, 2022 60 $0.6 million - $0.6 million SCOOP / OK 46 $0.8 million - $0.8 million Haynesville / LA 56 $0.4 million - $0.4 million Haynesville / LA 88 $0.9 million - $0.9 million SCOOP / OK 503 $5.0 million - $5.0 million Haynesville / LA, TX 92 $0.6 million - $0.6 million Haynesville / LA 25 $0.3 million - $0.3 million Haynesville / LA 68 $0.5 million - $0.5 million SCOOP / OK March 31, 2022 58 $0.5 million - $0.5 million SCOOP / OK 500 $6.4 million - $6.4 million Haynesville / LA 68 $0.7 million - $0.7 million Haynesville / TX 166 $1.3 million - $1.3 million SCOOP / OK 33 $0.4 million - $0.4 million Haynesville / TX December 31, 2021 426 $5.8 million - $5.8 million Haynesville / LA 847 $0.6 million 1,519,481 $4.1 million Haynesville / LA 172 $1.4 million - $1.4 million SCOOP / OK 103 $0.6 million - $0.6 million Haynesville / TX 116 $1.7 million - $1.7 million Haynesville / LA 220 $1.2 million - $1.2 million SCOOP / OK June 30, 2021 262 $1.3 million - $1.3 million Haynesville / LA 131 $1.0 million - $1.0 million Haynesville / TX 2,514 $9.5 million 1,200,000 $13.0 million SCOOP / OK March 31, 2021 No significant acquisitions December 31, 2020 142 $1.0 million - $1.0 million Haynesville / TX 184 $0.8 million - $0.8 million Haynesville / TX 386 $3.5 million - $3.5 million Haynesville / TX 297 $2.0 million 153,375 $2.3 million SCOOP / OK (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. (3) The Company’s policy is to classify all costs associated with equity issuances as financial costs in the Statements of Cash Flows. (4) Presented in chronological order with most recent at top. |
Summary of Property Divestitures | The Company made the following property divestitures during the nine-month periods ended June 30, 2022 Quarter Ended ( 3) Net mineral acres ( 1) (2) Sale Price Gain/(Loss) Location June 30, 2022 43 acres $0.1 million $0.1 million TX 9 wellbores $0.3 million $0.1 million OK 83 acres $0.1 million $0.1 million OK 16 wellbores $0.1 million $ - OK 2 wellbores $0.1 million $0.1 million OK 2,255 acres $0.3 million $0.3 million AR / OK / TX March 31, 2022 7,071 acres $1.6 million $1.6 million NM / TX 130 acres $0.5 million $0.5 million TX December 31, 2021 98 wellbores $2.0 million ($3.5) million OK 95 wellbores $0.5 million $0.2 million OK / TX 499 wellbores $2.1 million $1.1 million AR June 30, 2021 2,857 acres $0.3 million $0.2 million Central Basin Platform, TX March 31, 2021 No significant divestitures December 31, 2020 No significant divestitures (1) (2) Number of wellbores associated with working interests sold. (3) |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary Of Derivative Instruments Contracts | Derivative contracts in place as of June 30, 2022 Fiscal Period Contract total volume Index Contract average price Natural gas costless collars Remaining 2022 370,000 Mmbtu NYMEX Henry Hub $4.21 floor / $6.65 ceiling 2023 890,000 Mmbtu NYMEX Henry Hub $4.49 floor / $8.10 ceiling 2024 60,000 Mmbtu NYMEX Henry Hub $3.00 floor / $4.70 ceiling Natural gas fixed price swaps Remaining 2022 810,000 Mmbtu NYMEX Henry Hub $3.00 2023 2,100,000 Mmbtu NYMEX Henry Hub $3.24 2024 380,000 Mmbtu NYMEX Henry Hub $3.41 Oil costless collars 2023 15,000 Bbls NYMEX WTI $75.00 floor / $96.00 ceiling Oil fixed price swaps Remaining 2022 41,000 Bbls NYMEX WTI $45.48 2023 66,750 Bbls NYMEX WTI $62.11 2024 11,250 Bbls NYMEX WTI $73.35 |
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 Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Cash received (paid) on derivative contracts: Natural gas costless collars $ (653,495 ) $ (11,975 ) $ (805,685 ) $ (21,064 ) Natural gas fixed price swaps ( 1) (3,562,961 ) (20,185 ) (5,390,089 ) (18,943 ) Oil costless collars - (346,786 ) - (370,432 ) Oil fixed price swaps ( 1) (1,453,691 ) (625,744 ) (2,399,472 ) (278,368 ) Cash received (paid) on derivative contracts, net $ (5,670,147 ) $ (1,004,690 ) $ (8,595,246 ) $ (688,807 ) Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ 926,778 $ (1,732,932 ) $ (458,854 ) $ (1,135,852 ) Natural gas fixed price swaps 1,853,506 (953,201 ) (1,355,455 ) (670,605 ) Oil costless collars (38,910 ) (680,443 ) (38,910 ) (1,787,689 ) Oil fixed price swaps 541,547 (1,116,217 ) (2,085,999 ) (3,806,709 ) Non-cash gain (loss) on derivative contracts, net $ 3,282,921 $ (4,482,793 ) $ (3,939,218 ) $ (7,400,855 ) Gains (losses) on derivative contracts, net $ (2,387,226 ) $ (5,487,483 ) $ (12,534,464 ) $ (8,089,662 ) (1) For the three and nine months ended June 30, 2022, excludes $1,284,024 and $6,465,597, 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 $13,845,596 for the nine months ended June 30, 2022 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows. |
Summary Of Derivative Contracts | June 30, 2022 September 30, 2021 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 Liabilities Gross amounts recognized $ 763,554 $ 10,953,100 $ 21,155 $ 1,089,699 $ 17,395 $ 12,105,383 $ 1,696,479 Offsetting adjustments (763,554 ) (763,554 ) (21,155 ) (21,155 ) (17,395 ) (17,395 ) - Net presentation on condensed balance sheets $ - $ 10,189,546 $ - $ 1,068,544 $ - $ 12,087,988 $ 1,696,479 (a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022: Fair Value Measurement at June 30, 2022 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 $ - $ (10,760,325 ) $ - $ (10,760,325 ) Derivative Contracts - Collars $ - $ (497,765 ) $ - $ (497,765 ) 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) | 9 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent to June 30, 2022 Contract Contract period total volume Index Contract price Oil fixed price swaps April 2023 - December 2023 9,000 Bbls NYMEX WTI $ 80.74 |
Revenues (Summary of Disaggrega
Revenues (Summary of Disaggregation of Company's Natural Gas, Oil and NGL Revenues) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | $ 19,561,568 | $ 10,899,820 | $ 48,032,597 | $ 25,670,624 |
Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 12,473,415 | 5,412,842 | 29,072,927 | 12,424,644 |
Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 7,088,153 | 5,486,978 | 18,959,670 | 13,245,980 |
Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 5,148,879 | 3,538,962 | 13,436,689 | 9,024,949 |
Oil [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 3,340,065 | 1,934,966 | 7,784,554 | 4,748,987 |
Oil [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 1,808,814 | 1,603,996 | 5,652,135 | 4,275,962 |
NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 1,460,503 | 1,102,261 | 4,417,693 | 2,555,180 |
NGL [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 675,829 | 453,935 | 2,008,959 | 1,095,124 |
NGL [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 784,674 | 648,326 | 2,408,734 | 1,460,056 |
Natural Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 12,952,186 | 6,258,597 | 30,178,215 | 14,090,495 |
Natural Gas [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 8,457,521 | 3,023,941 | 19,279,414 | 6,580,533 |
Natural Gas [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | $ 4,494,665 | $ 3,234,656 | $ 10,898,801 | $ 7,509,962 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||||||
Revenue, practical expedient, financing component | true | |||||||
Revenues | $ 19,561,568 | $ 10,899,820 | $ 48,032,597 | $ 25,670,624 | ||||
Natural Gas, Oil and NGL [Member] | New Wells on PHX Acreage [Member] | ||||||||
Disaggregation Of Revenue [Line Items] | ||||||||
Revenues | $ 83,352 | $ 72,717 | $ 894,099 | $ 365,871 | $ 810,747 | $ 293,154 | ||
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 | 9 Months Ended | |||||
Jul. 28, 2020 | Mar. 27, 2020 | Jun. 30, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||||||
Decrease of income tax provision | $ 717,875 | ||||||
Effective tax rate | 14% | (31.00%) | |||||
Income tax payments | $ 1,900,000 | $ 2,600,000 | |||||
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% | ||||||
Net operating losses percentage of increase limitation on interest expense deductibility | 50% | ||||||
Total Deferred tax assets | $ 0 | ||||||
Refundable tax credit due to AMT credits | $ 1,400,000 | ||||||
CARES Act [Member] | Minimum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating losses carryback percentage of adjusted taxable income | 30% | ||||||
CARES Act [Member] | Maximum [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating losses carryback percentage of adjusted taxable income | 50% | ||||||
CARES Act [Member] | Federal [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Tax refundable associated with carryback of net operating loss | $ 2,200,000 |
Basic And Diluted Earnings (L_3
Basic And Diluted Earnings (Loss) Per Common Share ("EPS") - (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Restricted Stock excluded from the diluted EPS calculation | 720,254 | 584,547 | 445,943 | 377,808 |
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 | 9 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic EPS | ||||||||
Basic net income (loss) | $ 8,589,010 | $ (4,020,455) | $ 6,682,249 | $ (1,356,594) | $ (499,723) | $ (596,720) | $ 11,250,804 | $ (2,453,037) |
Common Shares | 34,438,807 | 28,117,199 | 33,792,632 | 24,308,185 | ||||
Unissued, directors' deferred compensation shares | 213,348 | 192,059 | 216,473 | 174,454 | ||||
Basic weighted average shares outstanding | 34,652,155 | 28,309,258 | 34,009,105 | 24,482,639 | ||||
Basic EPS | $ 0.25 | $ (0.05) | $ 0.33 | $ (0.10) | ||||
Diluted EPS | ||||||||
Basic net income (loss) | $ 8,589,010 | $ (1,356,594) | $ 11,250,804 | $ (2,453,037) | ||||
Diluted net income (loss) | $ 8,589,010 | $ (1,356,594) | $ 11,250,804 | $ (2,453,037) | ||||
Basic weighted average shares outstanding | 34,652,155 | 28,309,258 | 34,009,105 | 24,482,639 | ||||
Effects of dilutive securities: | ||||||||
Unvested restricted stock | 199,059 | |||||||
Diluted weighted average shares outstanding | 34,851,214 | 28,309,258 | 34,009,105 | 24,482,639 | ||||
Diluted EPS | $ 0.25 | $ (0.05) | $ 0.33 | $ (0.10) |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility [Member] | 9 Months Ended | |
Jun. 30, 2022 USD ($) Ratio | Sep. 30, 2021 USD ($) | |
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 | 4.43% | |
Debt issuance cost net of amortization | $ 353,084 | |
Funded debt to EBITDA ratio | 350% | |
Credit facility outstanding amount | $ 28,300,000 | |
Availability under outstanding credit facility | $ 21,700,000 | |
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 | 80% | |
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) | 9 Months Ended |
Jun. 30, 2022 | |
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 ($) | Apr. 01, 2022 | Mar. 02, 2022 |
Employees [Member] | Time-vested Ratably Ending in December 2024 [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 2024 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock vesting period | 3 years | |
Time-Based Restricted Stock [Member] | Non Employee Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 20,737 | 138,249 |
Fair value of shares awarded | $ 62,004 | $ 387,095 |
Share based payment award vesting date | Dec. 31, 2022 | Dec. 31, 2022 |
Time-Based Restricted Stock [Member] | Employees and Officers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 126,013 | |
Fair value of shares awarded | $ 352,838 | |
Market-Based Restricted Stock [Member] | Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 402,086 | |
Fair value of shares awarded | $ 1,679,757 |
Restricted Stock Plan (Summary
Restricted Stock Plan (Summary of Pre-Tax Compensation Expense) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 530,066 | $ 258,526 | $ 1,219,047 | $ 542,674 |
Market-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 313,728 | 79,118 | 705,082 | 168,483 |
Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 216,338 | $ 179,408 | $ 513,965 | $ 374,191 |
Restricted Stock Plan (Summar_2
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 2,270,957 |
Market-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 1,621,184 |
Weighted Average Period (in years) | 1 year 6 months |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 649,773 |
Weighted Average Period (in years) | 1 year 4 months 13 days |
Properties And Equipment - Summ
Properties And Equipment - Summary of Properties and Equipment and Related Accumulated DD&A (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Properties and equipment at cost, based on successful efforts accounting: | ||
Producing natural gas and oil properties | $ 265,800,998 | $ 319,984,874 |
Non-producing natural gas and oil properties | 50,204,756 | 40,466,098 |
Other property and equipment | 972,770 | 794,179 |
Gross properties and equipment, at cost, based on successful efforts accounting | 316,978,524 | 361,245,151 |
Less accumulated depreciation, depletion and amortization | (193,551,159) | (257,643,661) |
Net properties and equipment | $ 123,427,365 | $ 103,601,490 |
Properties And Equipment - Su_2
Properties And Equipment - Summary of Property Acquisitions (Details) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2022 USD ($) a | Mar. 31, 2022 USD ($) a | Dec. 31, 2021 USD ($) a shares | Jun. 30, 2021 USD ($) a shares | Dec. 31, 2020 USD ($) a shares | ||
SCOOP / OK [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 60 | 58 | 172 | 297 | |
Cash | $ 0.6 | $ 0.5 | $ 1.4 | $ 2 | ||
Number of shares | shares | [3] | 153,375 | ||||
Total Purchase Price | [2] | $ 0.6 | $ 0.5 | $ 1.4 | $ 2.3 | |
Haynesville /LA [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 46 | 500 | 426 | 262 | |
Cash | $ 0.8 | $ 6.4 | $ 5.8 | $ 1.3 | ||
Total Purchase Price | [2] | $ 0.8 | $ 6.4 | $ 5.8 | $ 1.3 | |
Haynesville /LA [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 56 | 847 | |||
Cash | $ 0.4 | $ 0.6 | ||||
Number of shares | shares | [3] | 1,519,481 | ||||
Total Purchase Price | [2] | $ 0.4 | $ 4.1 | |||
SCOOP / OK [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 88 | 166 | 220 | 2,514 | |
Cash | $ 0.9 | $ 1.3 | $ 1.2 | $ 9.5 | ||
Number of shares | shares | [3] | 1,200,000 | ||||
Total Purchase Price | [2] | $ 0.9 | $ 1.3 | $ 1.2 | $ 13 | |
Haynesville / LA, TX [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 503 | ||||
Cash | $ 5 | |||||
Total Purchase Price | [2] | $ 5 | ||||
Haynesville /LA [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 92 | 116 | |||
Cash | $ 0.6 | $ 1.7 | ||||
Total Purchase Price | [2] | $ 0.6 | $ 1.7 | |||
Haynesville /LA [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 25 | ||||
Cash | $ 0.3 | |||||
Total Purchase Price | [2] | $ 0.3 | ||||
SCOOP / OK [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 68 | ||||
Cash | $ 0.5 | |||||
Total Purchase Price | [2] | $ 0.5 | ||||
Haynesville / TX [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 68 | 103 | 131 | 142 | |
Cash | $ 0.7 | $ 0.6 | $ 1 | $ 1 | ||
Total Purchase Price | [2] | $ 0.7 | $ 0.6 | $ 1 | $ 1 | |
Haynesville / TX [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 33 | 184 | |||
Cash | $ 0.4 | $ 0.8 | ||||
Total Purchase Price | [2] | $ 0.4 | $ 0.8 | |||
Haynesville / TX [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Net royalty acres | a | [1],[2] | 386 | ||||
Cash | $ 3.5 | |||||
Total Purchase Price | [2] | $ 3.5 | ||||
[1]An estimated net royalty equivalent was used for the minerals included in the net royalty acres.[2]Excludes subsequent closing adjustments and insignificant acquisitions.[3]The Company’s policy is to classify all costs associated with equity issuances as financial costs in the Statements of Cash Flows. |
Properties And Equipment - Su_3
Properties And Equipment - Summary of Property Divestitures (Details) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2022 USD ($) a Well | Mar. 31, 2022 USD ($) a | Dec. 31, 2021 USD ($) Well | Jun. 30, 2021 USD ($) a | Jun. 30, 2022 USD ($) Well | Jun. 30, 2021 USD ($) | ||
Property Plant And Equipment [Line Items] | |||||||
Sale Price | $ 7,852,389 | $ 533,371 | |||||
TX | |||||||
Property Plant And Equipment [Line Items] | |||||||
Net mineral acres | a | [1],[2] | 43 | 130 | ||||
Sale Price | [1] | $ 100,000 | $ 500,000 | ||||
Gain/(Loss) | [1] | $ 100,000 | $ 500,000 | ||||
OK | |||||||
Property Plant And Equipment [Line Items] | |||||||
Wellbores | Well | [1],[3] | 9 | 98 | 9 | |||
Sale Price | [1] | $ 300,000 | $ 2,000,000 | ||||
Gain/(Loss) | [1] | $ 100,000 | $ (3,500,000) | ||||
OK | |||||||
Property Plant And Equipment [Line Items] | |||||||
Net mineral acres | a | [1],[2] | 83 | |||||
Sale Price | [1] | $ 100,000 | |||||
Gain/(Loss) | [1] | $ 100,000 | |||||
OK | |||||||
Property Plant And Equipment [Line Items] | |||||||
Wellbores | Well | [1],[3] | 16 | 16 | ||||
Sale Price | [1] | $ 100,000 | |||||
OK | |||||||
Property Plant And Equipment [Line Items] | |||||||
Wellbores | Well | [1],[3] | 2 | 2 | ||||
Sale Price | [1] | $ 100,000 | |||||
Gain/(Loss) | [1] | $ 100,000 | |||||
AR / OK / TX | |||||||
Property Plant And Equipment [Line Items] | |||||||
Net mineral acres | a | [1],[2] | 2,225 | |||||
Sale Price | [1] | $ 300,000 | |||||
Gain/(Loss) | [1] | $ 300,000 | |||||
NM / TX | |||||||
Property Plant And Equipment [Line Items] | |||||||
Net mineral acres | a | [1],[2] | 7,071 | |||||
Sale Price | [1] | $ 1,600,000 | |||||
Gain/(Loss) | [1] | $ 1,600,000 | |||||
OK / TX | |||||||
Property Plant And Equipment [Line Items] | |||||||
Wellbores | Well | [1],[3] | 95 | |||||
Sale Price | [1] | $ 500,000 | |||||
Gain/(Loss) | [1] | $ 200,000 | |||||
AR | |||||||
Property Plant And Equipment [Line Items] | |||||||
Wellbores | Well | [1],[3] | 499 | |||||
Sale Price | [1] | $ 2,100,000 | |||||
Gain/(Loss) | [1] | $ 1,100,000 | |||||
Central Basin Platform, TX [Member] | |||||||
Property Plant And Equipment [Line Items] | |||||||
Net mineral acres | a | [1],[2] | 2,857 | |||||
Sale Price | [1] | $ 300,000 | |||||
Gain/(Loss) | [1] | $ 200,000 | |||||
[1]Excludes immaterial divestitures.[2]Number of net mineral acres sold.[3]Number of wellbores associated with working interests sold. |
Properties And Equipment (Detai
Properties And Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | ||||
Computation of Natural Gas, Oil and NGL Reserves | 12 months | |||
Impairment | $ 0 | $ 37,879 | $ 0 | $ 37,879 |
Impairment for written-off wells | $ 7,976 | 11,862 | $ 7,976 | |
Consideration received | $ 0 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Jun. 30, 2022 MMBTU $ / MMBTU $ / bbl bbl |
Natural Gas Costless Collars [Member] | Remaining 2022 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 370,000 |
Natural Gas Costless Collars [Member] | Remaining 2022 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 4.21 |
Natural Gas Costless Collars [Member] | Remaining 2022 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 6.65 |
Natural Gas Costless Collars [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 890,000 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 4.49 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 8.10 |
Natural Gas Costless Collars [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 60,000 |
Natural Gas Costless Collars [Member] | 2024 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 3 |
Natural Gas Costless Collars [Member] | 2024 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 4.70 |
Natural Gas Fixed Price Swaps [Member] | Remaining 2022 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 810,000 |
Contract average price | 3 |
Natural Gas Fixed Price Swaps [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 2,100,000 |
Contract average price | 3.24 |
Natural Gas Fixed Price Swaps [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract total volume | MMBTU | 380,000 |
Contract average price | 3.41 |
Oil Costless Collars | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume | bbl | 15,000 |
Oil Costless Collars | 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 75 |
Oil Costless Collars | 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 96 |
Oil Fixed Price Swaps [Member] | Remaining 2022 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 45.48 |
Contract total volume | bbl | 41,000 |
Oil Fixed Price Swaps [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 62.11 |
Contract total volume | bbl | 66,750 |
Oil Fixed Price Swaps [Member] | 2024 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 73.35 |
Contract total volume | bbl | 11,250 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative contracts, liability | $ 11,258,090 | $ 13,784,467 |
Derivatives (Schedule of Gain o
Derivatives (Schedule of Gain or Loss on Derivative Contracts, Net) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Derivative [Line Items] | |||||
Cash received (paid) on derivative contracts, net | $ (5,670,147) | $ (1,004,690) | $ (8,595,246) | $ (688,807) | |
Non-cash gain (loss) on derivative contracts, net | 3,282,921 | (4,482,793) | (3,939,218) | (7,400,855) | |
Gains (losses) on derivative contracts, net | (2,387,226) | (5,487,483) | (12,534,464) | (8,089,662) | |
Natural Gas Costless Collars [Member] | |||||
Derivative [Line Items] | |||||
Cash received (paid) on derivative contracts, net | (653,495) | (11,975) | (805,685) | (21,064) | |
Non-cash gain (loss) on derivative contracts, net | 926,778 | (1,732,932) | (458,854) | (1,135,852) | |
Natural Gas Fixed Price Swaps [Member] | |||||
Derivative [Line Items] | |||||
Cash received (paid) on derivative contracts, net | [1] | (3,562,961) | (20,185) | (5,390,089) | (18,943) |
Non-cash gain (loss) on derivative contracts, net | 1,853,506 | (953,201) | (1,355,455) | (670,605) | |
Oil Costless Collars | |||||
Derivative [Line Items] | |||||
Cash received (paid) on derivative contracts, net | (346,786) | (370,432) | |||
Non-cash gain (loss) on derivative contracts, net | (38,910) | (680,443) | (38,910) | (1,787,689) | |
Oil Fixed Price Swaps [Member] | |||||
Derivative [Line Items] | |||||
Cash received (paid) on derivative contracts, net | [1] | (1,453,691) | (625,744) | (2,399,472) | (278,368) |
Non-cash gain (loss) on derivative contracts, net | $ 541,547 | $ (1,116,217) | $ (2,085,999) | $ (3,806,709) | |
[1]For the three and nine months ended June 30, 2022, excludes $1,284,024 and $6,465,597, 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 $13,845,596 for the nine months ended June 30, 2022 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows. |
Derivatives (Schedule of Gain_2
Derivatives (Schedule of Gain or Loss on Derivative Contracts, Net) (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Cash paid to settle off-market derivative contracts | $ 1,284,024 | $ 6,465,597 |
Cash paid on off-market derivatives | $ 13,845,596 |
Derivatives (Summary Of Deriv_2
Derivatives (Summary Of Derivative Contracts) (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Gross amounts recognized - Current Assets | [1] | $ 763,554 | $ 17,395 |
Offsetting adjustments - Current Assets | [1] | (763,554) | (17,395) |
Gross amounts recognized - Non-Current Assets | [1] | 21,155 | |
Offsetting adjustments - Non-Current Assets | [1] | (21,155) | |
Gross amounts recognized - Current Liabilities | [1] | 10,953,100 | 12,105,383 |
Offsetting adjustments - Current Liabilities | [1] | (763,554) | (17,395) |
Derivative contracts, net | [1] | 10,189,546 | 12,087,988 |
Gross amounts recognized - Non-Current Liabilities | [1] | 1,089,699 | 1,696,479 |
Offsetting adjustments - Non-Current Liabilities | [1] | (21,155) | |
Derivative contracts, net | [1] | $ 1,068,544 | $ 1,696,479 |
[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) | Jun. 30, 2022 USD ($) |
Swap [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ (10,760,325) |
Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | (10,760,325) |
Collars [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | (497,765) |
Collars [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ (497,765) |
Subsequent Events - Summary Of
Subsequent Events - Summary Of Derivative Instruments Contracts (Details) - Oil Fixed Price Swaps [Member] - Derivative Contract Period April 2023 - December 2023 [Member] - Subsequent Event [Member] | Jul. 01, 2022 $ / bbl bbl |
Subsequent Event [Line Items] | |
Contract total volume | bbl | 9,000 |
Contract average price | $ / bbl | 80.74 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | 9 Months Ended | ||
Jul. 01, 2022 USD ($) a | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Subsequent Event [Line Items] | |||
Net proceeds from sales of assets | $ 7,852,389 | $ 533,371 | |
Subsequent Event [Member] | Fayetteville Shale of Arkansas [Member] | |||
Subsequent Event [Line Items] | |||
Net proceeds from sales of assets | $ 6,000,000 | ||
Subsequent Event [Member] | SCOOP of Oklahoma and Haynesville of Louisiana [Member] | |||
Subsequent Event [Line Items] | |||
Net royalty acres | a | 544 | ||
Total Purchase Price | $ 8,200,000 |