PrimeEnergy Resources (PNRG) 10-Q 18 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 17, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	PNRG
Entity Registrant Name	PrimeEnergy Resources Corporation
Entity Central Index Key	0000056868
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity Address, State or Province	TX
Entity Common Stock, Shares Outstanding		1,994,177

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 4,018	$ 996
Accounts receivable, net	7,377	7,221
Prepaid obligations	1,030	590
Derivative asset short-term	17
Other current assets	536	104
Total Current Assets	12,978	8,911
Property and Equipment, at cost
Oil and gas properties (successful efforts method), net	179,441	185,098
Field and office equipment at cost, net	5,915	5,955
Total Property and Equipment, Net	185,356	191,053
Other assets	1,004	520
Total Assets	199,338	200,484
Current Liabilities
Accounts payable	4,986	5,217
Accrued liabilities	7,287	6,787
Due to related parties	38	38
Current portion of long-term debt	780	487
Current portion of asset retirement and other long-term obligations	1,315	868
Derivative liability short-term	1,284	723
Total Current Liabilities	15,690	14,120
Long-Term Bank Debt	36,925	38,267
Asset Retirement Obligations	13,016	12,891
Deferred Income Taxes	35,907	36,367
Other Long-Term Obligations	1,259	841
Total Liabilities	102,797	102,486
Equity
Common stock, $.10 par value; Authorized: 2,810,000 shares, Outstanding: 1,994,177 shares	281	281
Paid-in capital	7,541	7,541
Retained earnings	125,349	126,804
Treasury stock, at cost; 815,823 shares	(37,502)	(37,502)
Total Stockholders' Equity – PrimeEnergy Resources	95,669	97,124
Non-controlling interest	872	874
Total Equity	96,541	97,998
Total Liabilities and Equity	$ 199,338	$ 200,484

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical)	Dec. 31, 2020$ / sharesshares
Statement of Financial Position [Abstract]
Common stock, par value | $ / shares	$ 0.10
Common stock, shares authorized	2,810,000
Common stock, shares outstanding	1,994,177
Treasury stock, shares	815,823

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Revenues
Realized (loss) gain on derivative instruments, net	$ (212)	$ 1,197
Unrealized (loss) gain on derivative instruments, net	(911)	6,556
Other income	29	29
Total Revenues	14,972	26,108
Costs and Expenses
Lease operating expense	5,282	6,344
Field service expense	1,953	3,549
Depreciation, depletion, amortization and accretion on discounted liabilities	6,497	8,193
General and administrative expense	2,634	7,736
Total Costs and Expenses	16,366	25,822
Gain on Sale and Exchange of Assets		112
(Loss) Income from Operations	(1,394)	398
Other (Expense)
Interest expense	(523)	(659)
(Loss) Before (Benefit from) Income Taxes	(1,917)	(261)
(Benefit from) Income Taxes	(460)	(57)
Net (Loss)	(1,457)	(204)
Less: Net (Loss) Attributable to Non-Controlling Interests	(2)	(34)
Net (Loss) Attributable to PrimeEnergy Resources	$ (1,455)	$ (170)
Basic (Loss) Per Common Share	$ (0.73)	$ (0.09)
Diluted (Loss) Per Common Share	$ (0.73)	$ (0.09)
Oil sales [Member]
Revenues
Oil, gas and service income	$ 9,270	$ 10,711
Natural gas sales [Member]
Revenues
Oil, gas and service income	1,658	846
Natural gas liquids sales [Member]
Revenues
Oil, gas and service income	1,745	1,243
Oil and gas service [Member]
Costs and Expenses
Field service expense	2,263	4,300
Administrative Service [Member]
Revenues
Oil, gas and service income	$ 1,130	$ 1,226

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid in capital	Retained Earnings [Member]	Treasury Stock [Member]	Total Stockholders' Equity – PrimeEnergy [Member]	Non-Controlling Interest [Member]	Shares Outstanding [Member]
Balance at Dec. 31, 2019	$ 103,363	$ 281	$ 7,505	$ 129,120	$ (36,792)	$ 100,114	$ 3,249
Balance, shares at Dec. 31, 2019								1,998,978
Purchase shares of common stock	(709)				(709)	(709)
Purchase shares of common stock, shares								(4,801)
Net (loss)	(204)			(170)		(170)	(34)
Balance at Mar. 31, 2020	102,450	281	7,505	128,950	(37,501)	99,235	3,215
Balance, shares at Mar. 31, 2020								1,994,177
Balance at Dec. 31, 2019	103,363	281	7,505	129,120	(36,792)	100,114	3,249
Balance, shares at Dec. 31, 2019								1,998,978
Net (loss)	(204)
Balance at Dec. 31, 2020	97,998	281	7,541	126,804	(37,502)	97,124	874
Balance, shares at Dec. 31, 2020								1,994,177
Net (loss)	(1,457)			(1,455)		(1,455)	(2)
Balance at Mar. 31, 2021	$ 96,541	$ 281	$ 7,541	$ 125,349	$ (37,502)	$ 95,669	$ 872
Balance, shares at Mar. 31, 2021								1,994,177

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2020shares
Treasury Stock [Member]
Purchase of common stock, shares	4,801
Total Stockholders' Equity – PrimeEnergy [Member]
Purchase of common stock, shares	4,801

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities:
Net (Loss)	$ (1,457)	$ (204)
Adjustments to reconcile net (loss) to net cash (provided by) operating activities:
Depreciation, depletion, amortization and accretion on discounted liabilities	6,497	8,193
Gain on sale and exchange of assets		(112)
Unrealized (gain) loss on derivative instruments, net	911	(6,556)
Deferred income taxes	(460)	(57)
Changes in assets and liabilities:
Accounts receivable	(156)	4,634
Prepaid and other assets	(872)	(512)
Accounts payable	(231)	3,096
Accrued liabilities	500	(1,102)
Net Cash provided by Operating Activities	4,732	7,380
Cash Flows from Investing Activities:
Capital expenditures, including exploration expense	(660)	(1,583)
Proceeds from sale of properties and equipment		112
Net Cash (Used in) Investing Activities	(660)	(1,471)
Cash Flows from Financing Activities:
Purchase of stock for treasury		(709)
Proceeds from long-term bank debt and other long-term obligations	3,000	5,000
Repayment of long-term bank debt and other long-term obligations	(4,050)	(5,000)
Net Cash (Used in) Financing Activities	(1,050)	(709)
Net Increase in Cash and Cash Equivalents	3,022	5,200
Cash and Cash Equivalents at the Beginning of the Period	996	1,015
Cash and Cash Equivalents at the End of the Period	4,018	6,215
Supplemental Disclosures:
Income taxes paid
Interest paid	$ 355	$ 450

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	(1) Basis of Presentation: The accompanying condensed consolidated financial statements of PrimeEnergy Resources Corporation (“PrimeEnergy” or the “Company”) have not been audited by independent public accountants. Pursuant to applicable Securities and Exchange Commission (“SEC”) rules and regulations, the accompanying interim financial statements do not include all disclosures presented in annual financial statements and the reader should refer to the Company’s Form 10-K As of March 31, 2021, PrimeEnergy’s significant accounting policies are consistent with those discussed in Note 1—Description of Operations and Significant Accounting Policies of its consolidated financial statements contained in PrimeEnergy’s Annual Report on Form 10-K

Additional Balance Sheet Inform

Additional Balance Sheet Information	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Additional Balance Sheet Information	(2) Additional Balance Sheet Information: Certain balance sheet amounts are comprised of the following: (Thousands of dollars) March 31, December 31, Accounts Receivable Joint interest billing $ 1,487 $ 2,475 Trade receivables 782 1,073 Oil and gas sales 5,706 3,469 Other — 802 7,975 7,819 Less: Allowance for doubtful accounts (598 ) (598 ) Total $ 7,377 $ 7,221 Accounts Payable: Trade $ 1,450 $ 876 Royalty and other owners 3,009 3,569 Partner advances 227 193 Other 300 579 Total $ 4,986 $ 5,217 Accrued Liabilities: Compensation and related expenses $ 3,943 $ 3,331 Property costs 2,161 2,056 Taxes 1,016 1,016 Other 167 384 Total $ 7,287 $ 6,787

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	(3) Property and Equipment: Property and equipment at March 31, 2021 and December 31, 2020 consisted of the following: (Thousands of dollars) March 31, December 31, Proved oil and gas properties, at cost $ 521,035 $ 520,488 Less: Accumulated depletion and depreciation (341,594 ) (335,390 ) Oil and Gas Properties, Net $ 179,441 $ 185,098 Field and office equipment $ 26,894 $ 26,797 Less: Accumulated depreciation (20,979 ) (20,842 ) Field and Office Equipment, Net $ 5,915 $ 5,955 Total Property and Equipment, Net $ 185,356 $ 191,053

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Long-Term Debt	(4) Long-Term Debt: Bank Debt: On February 15, 2017, the Company and its lenders entered into a Third Amended and Restated Credit Agreement (the “2017 Credit Agreement”) with a maturity date of February 15, 2021 . Under the 2017 Credit Agreement, the Company has a revolving line of credit and letter of credit facility of up to million subject to a borrowing base that is determined semi-annually by the lenders based upon the Company’s financial statements and the estimated value of the Company’s oil and gas properties, in accordance with the Lenders’ customary practices for oil and gas loans. The credit facility is secured by substantially all of the Company’s oil and gas properties. The 2017 Credit Agreement includes terms and covenants that require the Company to maintain a minimum current ratio and total indebtedness to EBITDAX (earnings before depreciation, depletion, amortization, taxes, interest expense and exploration costs) ratio, as defined, and restrictions are placed on the payment of dividends, the amount of treasury stock the Company may purchase, commodity hedge agreements, and loans and investments in its consolidated subsidiaries and limited partnerships. During 2020, the 2017 Credit Agreement was amended to add loans under the Paycheck Protection Program to the Permitted loans, as defined in the agreement. On February 11, 2021, the Company and its lenders entered into a Sixth Amendment to the 2017 Credit Agreement. Under this amendment the Company’s borrowing base is $40 million. Borrowings under the 2017 Credit Agreement will bear interest at a base rate plus an applicable margin ranging from 2.00% to 3.00% or at the Company’s option, at LIBOR plus an applicable margin ranging from 3.00% to 4.00%. The 2017 Credit Agreement will mature on February 11, 2023. The Company’s borrowings under this credit facility approximates fair value because the interest rates are variable and reflective of market rates. On March 31, 2021, the Company had a total of $35.95 million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 5.31% and $4.05 million was available for future borrowings. The combined weighted average interest rate paid on outstanding bank borrowings subject to base rate and LIBO interest was 5.27% for the quarter ended March 31, 2021 as compared to 4.81% for quarter ended March 31, 2020. Paycheck Protection Program Loans During May 2020, Prime Operating Company and Eastern Oil Well Services Corporation, subsidiaries of the Company received loan proceeds in the amount of $1.28 million and $0.47 million, respectively, under the Paycheck Protection Program (the “PPP”) of the CARES Act, which was enacted March 27, 2020. The PPP Loans are evidenced by a promissory note in favor of the Lender, which bears interest at the rate of 1.00% per annum. No payments of principal or interest are due under the note until the date on which the amount of loan forgiveness (if any) under the CARES Act, which can be up to 10 months after the end of the related notes covered period (which is defined as 24 weeks after the date of the loan) (the “Deferral Period”). The note may be prepaid at any time prior to maturity with no prepayment penalties. Funds from the PPP Loans may be used only for payroll and related costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that were incurred prior to February 15, 2020 (the “Qualifying Expenses”). Under the terms of the PPP Loans, certain amounts thereunder may be forgiven if they are used for Qualifying Expenses as described in and in compliance with the CARES Act. The Company utilized the PPP Loan proceeds exclusively for Qualifying Expenses during the 24-week To the extent, if any, that any or all of the PPP loans are not forgiven, beginning one month following expiration of the Deferral Period, and continuing monthly until 24 months from the date of each applicable Note (the “Maturity Date”), the Company is obligated to make monthly payments of principal and interest to the Lender with respect to any unforgiven portion of the Note, in such equal amounts required to fully amortize the principal amount outstanding on such Note as of the last day of the applicable Deferral Period by the applicable Maturity Date. The Company accounts for these loans on the balance sheet as financial liabilities reported within the following lines: Current portion of long-term debt in the amount of $780 thousand and included as part of the long-term bank debt in the amount of $975 thousand.

Other Long-Term Obligations and

Other Long-Term Obligations and Commitments	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Other Long-Term Obligations and Commitments	(5) Other Long-Term Obligations and Commitments: Operating Leases: The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Leases assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. A new finance lease for office equipment is included in property and equipment, other current liabilities and other long-term liabilities this quarter. As most of the Company’s lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted average discount rate used was 5.5%. Certain leases may contain variable costs above the minimum required payments and are not included in the right-of-use Operating lease costs for the three months ended March 31, 202 1 1 The Company amended certain leases for office space in Texas providing for payments of $599,000 in 202 1 , $157,000 in 2 and $17,000 in 2023. Rent expense for office space for the quarter s The payment schedule for the Company’s operating and financing lease obligations as of March 31, 2021 is as follows: (Thousands of dollars) Operating Financing 202 1 $ 449 $ 1 202 2 157 — 2023 17 — Total undiscounted lease payments $ 623 $ 1 Less: Amount associated with discounting (23 ) — Net operating lease liabilities $ 600 $ 1 Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the three months ended March 31, 2021 is as follows: (Thousands of dollars) March 31, Asset retirement obligation at December 31, 2020 $ 13,660 Liabilities incurred 12 Liabilities settled (40 ) Accretion expense 153 Asset retirement obligation at March 31, 2021 $ 13,785 The Company’s liability is determined using significant assumptions, including current estimates of plugging and abandonment costs, annual inflation of these costs, the productive life of wells and a risk-adjusted interest rate. Changes in any of these assumptions can result in significant revisions to the estimated asset retirement obligation. Revisions to the asset retirement obligation are recorded with an offsetting change to producing properties, resulting in prospective changes to depreciation, depletion and amortization expense and accretion of discount. Because of the subjectivity of assumptions and the relatively long life of most of the Company’s wells, the costs to ultimately retire the wells may vary significantly from previous estimates.

Contingent Liabilities

Contingent Liabilities	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities	(6) Contingent Liabilities: The Company, as managing general partner of the affiliated Partnerships, is responsible for all Partnership activities, including the drilling of development wells and the production and sale of oil and gas from productive wells. The Company also provides the administration, accounting and tax preparation work for the Partnerships, and is liable for all debts and liabilities of the affiliated Partnerships, to the extent that the assets of a given limited Partnership are not sufficient to satisfy its obligations. The Company is subject to environmental laws and regulations. Management believes that future expenses, before recoveries from third parties, if any, will not have a material effect on the Company’s financial condition. This opinion is based on expenses incurred to date for remediation and compliance with laws and regulations, which have not been material to the Company’s results of operations. From time to time, the Company is party to certain legal actions arising in the ordinary course of business. While the outcome of these events cannot be predicted with certainty, management does not expect these matters to have a materially adverse effect on the financial position or results of operations of the Company.

Stock Options and Other Compens

Stock Options and Other Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Other Compensation	(7) Stock Options and Other Compensation: In May 1989, non-statutory

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	(8) Related Party Transactions: Payables owed to related parties primarily represent receipts collected by the Company as agent for the joint venture partners, which may include members of the Company’s Board of Directors, for oil and gas sales net of expenses.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Financial Instruments	(9) Financial Instruments Fair Value Measurements: Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The fair values of the Company’s interest rate swaps, natural gas and crude oil price collars and swaps are designated as Level 3. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020: March 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 94 $ 94 Total assets $ — $ — $ 94 $ 94 Liabilities Commodity derivative contracts $ — $ — $ (1,676 ) $ (1,676 ) Total liabilities $ — $ — $ (1,676 ) $ (1,676 ) December 31, 2020 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 97 $ 97 Total assets $ — $ — $ 97 $ 97 March 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Liabilities Commodity derivative contract $ — $ — $ (768 ) $ (768 ) Total liabilities $ — $ — $ (768 ) $ (768 ) The derivative contracts were measured based on quotes from the Company’s counterparties. Such quotes have been derived using valuation models that consider various inputs including current market and contractual prices for the underlying instruments, quoted forward prices for natural gas and crude oil, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. These estimates are verified using comparable NYMEX futures contracts or are compared to multiple quotes obtained from counterparties for reasonableness. The significant unobservable inputs for Level 3 derivative contracts include basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the quarter ended March 31, 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized (gains) losses: Included in earnings (a) (1,145 ) Purchases, sales, issuances and settlements 234 Net Liabilities — March 31, 2021 $ (1,582 ) (a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments. Derivative Instruments: The Company is exposed to commodity price and interest rate risk, and management considers periodically the Company’s exposure to cash flow variability resulting from the commodity price changes and interest rate fluctuations. Futures, swaps and options are used to manage the Company’s exposure to commodity price risk inherent in the Company’s oil and gas production operations. The Company does not apply hedge accounting to any of its commodity-based derivatives. Both realized and unrealized gains and losses associated with commodity derivative instruments are recognized in earnings. The following table sets forth the effect of derivative instruments on the consolidated balance sheets at March 31, 2021 and December 31, 2020: Fair Value (Thousands of dollars) Balance Sheet Location March 31, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Natural gas commodity contracts Derivative asset short-term $ 17 $ — Natural gas commodity contracts Derivative asset long-term and 77 97 Total $ 94 $ 97 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (938 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (346 ) (296 ) Crude oil commodity contracts Derivative liability long-term (385 ) — Natural gas commodity contracts Derivative liability long-term (7 ) (44 ) Total $ (1,676 ) $ (768 ) Total derivative instruments $ (1,582 ) $ (671 ) The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the quarters ended March 31, 2021 and 2020: Location of gain/loss recognized in income Amount of gain/loss (Thousands of dollars) 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net $ (15 ) $ 305 Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net (896 ) 6,251 Natural gas commodity contracts Realized (loss) (60 ) 191 Crude oil commodity contracts Realized (loss) gain on derivative instruments, net (152 ) 1,006 $ (1,123 ) $ 7,753

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Share	(10) Earnings Per Share: Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. The following reconciles amounts reported in the financial statements: Quarter Ended March 31, 2021 2020 Net Income Weighted Per Share Net Income Weighted Per Share Basic $ (1,455 ) 1,994,197 $ (0.73 ) $ (170 ) 1,995,174 $ (0.09 ) Effect of dilutive securities: Options ( a — Diluted $ (1,455 ) 1,994,197 $ (0.73 ) $ (170 ) 1,995,174 $ (0.09 ) (a) The effect of the 767,000 outstanding stock options is antidilutive for the quarter ended March 31, 2021 and 2020, due to net loss for this period.

Additional Balance Sheet Info_2

Additional Balance Sheet Information (Tables)	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Components of Balance Sheet Amounts	Certain balance sheet amounts are comprised of the following: (Thousands of dollars) March 31, December 31, Accounts Receivable Joint interest billing $ 1,487 $ 2,475 Trade receivables 782 1,073 Oil and gas sales 5,706 3,469 Other — 802 7,975 7,819 Less: Allowance for doubtful accounts (598 ) (598 ) Total $ 7,377 $ 7,221 Accounts Payable: Trade $ 1,450 $ 876 Royalty and other owners 3,009 3,569 Partner advances 227 193 Other 300 579 Total $ 4,986 $ 5,217 Accrued Liabilities: Compensation and related expenses $ 3,943 $ 3,331 Property costs 2,161 2,056 Taxes 1,016 1,016 Other 167 384 Total $ 7,287 $ 6,787

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment at March 31, 2021 and December 31, 2020 consisted of the following: (Thousands of dollars) March 31, December 31, Proved oil and gas properties, at cost $ 521,035 $ 520,488 Less: Accumulated depletion and depreciation (341,594 ) (335,390 ) Oil and Gas Properties, Net $ 179,441 $ 185,098 Field and office equipment $ 26,894 $ 26,797 Less: Accumulated depreciation (20,979 ) (20,842 ) Field and Office Equipment, Net $ 5,915 $ 5,955 Total Property and Equipment, Net $ 185,356 $ 191,053

Other Long-Term Obligations a_2

Other Long-Term Obligations and Commitments (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Summary of Future Minimum Lease Payments for Non-Cancelable Operating Leases	The payment schedule for the Company’s operating and financing lease obligations as of March 31, 2021 is as follows: (Thousands of dollars) Operating Financing 202 1 $ 449 $ 1 202 2 157 — 2023 17 — Total undiscounted lease payments $ 623 $ 1 Less: Amount associated with discounting (23 ) — Net operating lease liabilities $ 600 $ 1
Reconciliation of Liability for Plugging and Abandonment Costs	A reconciliation of the liability for plugging and abandonment costs for the three months ended March 31, 2021 is as follows: (Thousands of dollars) March 31, Asset retirement obligation at December 31, 2020 $ 13,660 Liabilities incurred 12 Liabilities settled (40 ) Accretion expense 153 Asset retirement obligation at March 31, 2021 $ 13,785

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020: March 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 94 $ 94 Total assets $ — $ — $ 94 $ 94 Liabilities Commodity derivative contracts $ — $ — $ (1,676 ) $ (1,676 ) Total liabilities $ — $ — $ (1,676 ) $ (1,676 ) December 31, 2020 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 97 $ 97 Total assets $ — $ — $ 97 $ 97 March 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Liabilities Commodity derivative contract $ — $ — $ (768 ) $ (768 ) Total liabilities $ — $ — $ (768 ) $ (768 )
Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3	The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the quarter ended March 31, 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized (gains) losses: Included in earnings (a) (1,145 ) Purchases, sales, issuances and settlements 234 Net Liabilities — March 31, 2021 $ (1,582 ) (a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments.
Effect of Derivative Instruments on Consolidated Balance Sheets	The following table sets forth the effect of derivative instruments on the consolidated balance sheets at March 31, 2021 and December 31, 2020: Fair Value (Thousands of dollars) Balance Sheet Location March 31, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Natural gas commodity contracts Derivative asset short-term $ 17 $ — Natural gas commodity contracts Derivative asset long-term and 77 97 Total $ 94 $ 97 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (938 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (346 ) (296 ) Crude oil commodity contracts Derivative liability long-term (385 ) — Natural gas commodity contracts Derivative liability long-term (7 ) (44 ) Total $ (1,676 ) $ (768 ) Total derivative instruments $ (1,582 ) $ (671 )
Effect of Derivative Instruments on Consolidated Statements of Operations	The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the quarters ended March 31, 2021 and 2020: Location of gain/loss recognized in income Amount of gain/loss (Thousands of dollars) 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net $ (15 ) $ 305 Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net (896 ) 6,251 Natural gas commodity contracts Realized (loss) (60 ) 191 Crude oil commodity contracts Realized (loss) gain on derivative instruments, net (152 ) 1,006 $ (1,123 ) $ 7,753

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings (Loss) per Share	The following reconciles amounts reported in the financial statements: Quarter Ended March 31, 2021 2020 Net Income Weighted Per Share Net Income Weighted Per Share Basic $ (1,455 ) 1,994,197 $ (0.73 ) $ (170 ) 1,995,174 $ (0.09 ) Effect of dilutive securities: Options ( a — Diluted $ (1,455 ) 1,994,197 $ (0.73 ) $ (170 ) 1,995,174 $ (0.09 )

Additional Balance Sheet Info_3

Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts Receivable:
Joint interest billing	$ 1,487	$ 2,475
Trade receivables	782	1,073
Oil and gas sales	5,706	3,469
Other		802
Accounts Receivable, Gross	7,975	7,819
Less: Allowance for doubtful accounts	(598)	(598)
Total	7,377	7,221
Accounts Payable:
Trade	1,450	876
Royalty and other owners	3,009	3,569
Partner advances	227	193
Other	300	579
Total	4,986	5,217
Accrued Liabilities:
Compensation and related expenses	3,943	3,331
Property costs	2,161	2,056
Taxes	1,016	1,016
Other	167	384
Total	$ 7,287	$ 6,787

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Proved oil and gas properties, at cost	$ 521,035	$ 520,488
Less: Accumulated depletion and depreciation	(341,594)	(335,390)
Oil and gas properties, net	179,441	185,098
Field and office equipment	26,894	26,797
Less: Accumulated depreciation	(20,979)	(20,842)
Field and office equipment, net	5,915	5,955
Total Property and Equipment, Net	$ 185,356	$ 191,053

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands	Feb. 11, 2021	May 31, 2020	Dec. 31, 2017	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Feb. 15, 2017
Debt Instrument [Line Items]
Outstanding borrowings under revolving credit facility					$ 35,950
Weighted-average interest rate of borrowings					5.31%
Credit facility remaining borrowing capacity					$ 4,050
Long-term Debt, Current Maturities					$ 780	$ 487
Loan Under Paycheck Protection Programme [Member]
Debt Instrument [Line Items]
Long-term Debt, Current Maturities				$ 780
Long-term bank debt				$ 975,000
Loan Under Paycheck Protection Programme [Member] | Eastern Oilwells Service Corporation [Member]
Debt Instrument [Line Items]
Proceeds from scheme based loan		$ 470
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company And Eastern Oilwells Company [Member]
Debt Instrument [Line Items]
Long term debt stated rate of interest		1.00%
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company And Eastern Oilwells Company [Member] | Possible Forgiveness Of Loan [Member]
Debt Instrument [Line Items]
Period of forgiveness of term loan		10 months
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company [Member]
Debt Instrument [Line Items]
Proceeds from scheme based loan		$ 1,280
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility borrowing capacity								$ 300,000
Credit agreement date			Feb. 15, 2017
Line of credit facility, expiration date			Feb. 15, 2021
Equipment Loan, face amount	$ 40,000
Equipment Loan, maturity date	Feb. 11, 2023
2017 Credit Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	3.00%
LIBOR Margin Rate	4.00%
2017 Credit Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	2.00%
LIBOR Margin Rate	3.00%
Base Rate And Libor [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Debt instrument basis weighted average interest rate spread on variable rate					5.27%		4.81%

Other Long-Term Obligations a_3

Other Long-Term Obligations and Commitments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Lease period description	The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Leases assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term.
Rent expense for office space	$ 162,000	$ 163,000
Lease Payments With in One Year	599,000
Lease payments due next year	157,000
Lease payments due next two years	$ 17,000
Weighted-average discount rate	5.50%
Operating lease weighted-average remaining lease term	17 months 15 days
Finance lease remaining lease term	13 months
Finance lease amortization and interest expense	$ 1,828,000
Operating lease payments	151,000
Operating lease cost	140,000
Finance lease payments	$ 1,913,000

Other Long-Term Obligations a_4

Other Long-Term Obligations and Commitments - Summary of Operating and Financing Lease Obligation (Detail) $ in Thousands	Mar. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 449
2022	157
2023	17
Total undiscounted lease payments	623
Less: Amount associated with discounting	(23)
Net operating lease liabilities	600
2021	1
2022	0
2023	0
Total undiscounted lease payments	1
Less: Amount associated with discounting	0
Net operating lease liabilities	$ 1

Other Long-Term Obligations a_5

Other Long-Term Obligations and Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Asset retirement obligation	$ 13,660
Liabilities incurred	12
Liabilities settled	(40)
Accretion expense	153
Asset retirement obligation	$ 13,785

Stock Options and Other Compe_2

Stock Options and Other Compensation - Additional Information (Detail)	Mar. 31, 2021$ / sharesshares	May 31, 2020$ / sharesshares	May 31, 1989Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, shares | shares	767,500	767,500
Number of key executive officers to whom non-statutory stock options granted | Officers			4
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average exercise price | $ / shares	$ 1	$ 1
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average exercise price | $ / shares	$ 1.25	$ 1.25
Nonstatutory Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable, shares | shares	767,500	767,500

Financial Instruments - Schedul

Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Derivative assets	$ 94	$ 97
Liabilities
Derivative liabilities	(1,676)	(768)
Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	94	97
Liabilities
Derivative liabilities	(1,676)
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	94	97
Liabilities
Derivative liabilities	(1,676)
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	94	97
Liabilities
Derivative liabilities	(1,676)
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member]
Assets
Derivative assets	94	$ 97
Liabilities
Derivative liabilities	$ (1,676)

Financial Instruments - Sched_2

Financial Instruments - Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net Liabilities at beginning of period	$ (671)
Total realized and unrealized (gains) losses:
Included in earnings	(1,145)	[1]
Purchases, sales, issuances and settlements	234
Net Liabilities end of period	$ (1,582)
[1]	Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments.

Financial Instruments - Effect

Financial Instruments - Effect of Derivative Instruments on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative assets	$ 94	$ 97
Derivative liabilities	(1,676)	(768)
Total derivative instruments	(1,582)	(671)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative asset short-term [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	17	0
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability short-term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(346)	(296)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability Long Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(7)	(44)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability short-term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(938)	(428)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability Long Term [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	(385)
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Liquid Contracts [Member] | Derivative asset short-term [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	$ 77	$ 97

Financial Instruments - Effec_2

Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	$ (1,123)	$ 7,753
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Unrealized gain (loss) on derivative instruments, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	(15)	305
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Realized gain (loss) on derivative instruments, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	(60)	191
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Unrealized gain (loss) on derivative instruments, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	(896)	6,251
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized gain (loss) on derivative instruments, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain/loss recognized in income	$ (152)	$ 1,006

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Earnings Per Share [Abstract]
Net (Loss) Income, Basic	$ (1,455)	$ (170)
Net (Loss) Income, Diluted	$ (1,455)	$ (170)
Weighted Average Number of Shares Outstanding, Basic	1,994,197	1,995,174
Weighted Average Number of Shares Outstanding, Options		0
Weighted Average Number of Shares Outstanding, Diluted	1,994,197	1,995,174
Per Share Amount, Basic	$ (0.73)	$ (0.09)	$ (0.09)
Per Share Amount, Diluted	$ (0.73)	$ (0.09)	$ (0.09)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	767,000	767,000