Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 File Number | 0-7406 | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | TX | |
Entity Common Stock, Shares Outstanding | 1,994,177 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Tax Identification Number | 84-0637348 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 9821 Katy Freeway | |
Entity Address, City or Town | Houston | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 713 | |
Local Phone Number | 735-0000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 3,624 | $ 996 |
Accounts receivable, net | 14,341 | 7,221 |
Prepaid obligations | 781 | 590 |
Other current assets | 568 | 104 |
Total Current Assets | 19,314 | 8,911 |
Property and Equipment, at cost | ||
Oil and gas properties (successful efforts method), net | 176,497 | 185,098 |
Field and office equipment, net | 5,774 | 5,955 |
Total Property and Equipment, Net | 182,271 | 191,053 |
Other assets | 593 | 520 |
Total Assets | 202,178 | 200,484 |
Current Liabilities | ||
Accounts payable | 11,387 | 5,217 |
Accrued liabilities | 6,896 | 6,787 |
Due to Related Parties | 34 | 38 |
Current portion of long-term debt | 1,365 | 487 |
Current portion of asset retirement and other long-term obligations | 816 | 867 |
Derivative liability short-term | 6,177 | 724 |
Total Current Liabilities | 26,675 | 14,120 |
Long-Term Bank Debt | 32,164 | 38,267 |
Asset Retirement Obligations | 13,281 | 12,891 |
Derivative Liability Long-Term | 1,657 | 44 |
Deferred Income Taxes | 34,667 | 36,367 |
Other Long-Term Obligations | 759 | 797 |
Total Liabilities | 109,203 | 102,486 |
Commitments and Contingencies | ||
Equity | ||
Common stock, $.10 par value; Authorized: 2,810,000 shares; Outstanding: 1,994,177 shares | 281 | 281 |
Paid-in capital | 7,560 | 7,541 |
Retained earnings | 121,783 | 126,804 |
Treasury stock, at cost; 815,823 shares | (37,502) | (37,502) |
Total Stockholders' Equity – PrimeEnergy Resources | 92,122 | 97,124 |
Non-controlling interest | 853 | 874 |
Total Equity | 92,975 | 97,998 |
Total Liabilities and Equity | $ 202,178 | $ 200,484 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 10 | $ 10 |
Common stock, shares authorized | 2,810,000 | 2,810,000 |
Common stock, shares outstanding | 1,994,177 | 1,994,177 |
Treasury stock, shares | 815,823 | 815,823 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Realized gain (loss) on derivative instruments, net | $ (1,983) | $ 222 | $ (2,896) | $ 6,176 |
Unrealized gain (loss) on derivative instruments, net | (1,194) | (1,003) | (7,162) | (62) |
Other income | 1 | 75 | 30 | 240 |
Total Revenues | 19,035 | 11,792 | 47,670 | 45,178 |
Costs and Expenses | ||||
Lease operating expense | 7,248 | 3,804 | 17,820 | 16,378 |
Field service expense | 3,413 | 1,974 | 7,744 | 7,448 |
Depreciation, depletion, amortization and accretion on discounted liabilities | 6,883 | 9,431 | 19,990 | 24,524 |
General and administrative expense | 2,368 | 2,571 | 7,475 | 12,877 |
Total Costs and Expenses | 19,912 | 17,780 | 53,029 | 61,227 |
Gain on Sale and Exchange of Assets | 5 | 14,773 | 111 | 14,967 |
Income (Loss) from Operations | (872) | 8,785 | (5,248) | (1,082) |
Other Income (Expense) | ||||
Interest Income | 1 | 1 | ||
Interest Expense | (462) | (470) | (1,469) | (1,629) |
Income (Loss) Before Income Taxes | (1,334) | 8,316 | (6,717) | (2,710) |
Income Taxes Expense (Benefit) | (186) | 1,372 | (1,700) | (2,664) |
Net Income (Loss) | (1,148) | 6,944 | (5,017) | (46) |
Less: Net Income (Loss) Attributable to Non-Controlling Interests | 15 | 443 | 4 | (111) |
Net Income Attributable to PrimeEnergy | $ (1,163) | $ 6,501 | $ (5,021) | $ 65 |
Basic Income Per Common Share | $ (0.58) | $ 3.26 | $ (2.52) | $ 0.03 |
Diluted Income Per Common Share | $ (0.58) | $ 2.36 | $ (2.52) | $ 0.02 |
Oil sales [Member] | ||||
Revenues | ||||
Oil, gas and service income | $ 10,442 | $ 6,339 | $ 30,376 | $ 20,663 |
Natural gas sales [Member] | ||||
Revenues | ||||
Oil, gas and service income | 3,998 | 1,052 | 7,948 | 3,212 |
Natural gas liquids sales [Member] | ||||
Revenues | ||||
Oil, gas and service income | 3,632 | 1,474 | 7,781 | 2,441 |
Oil and gas service [Member] | ||||
Costs and Expenses | ||||
Field service expense | 2,975 | 2,567 | 8,138 | 9,248 |
Administrative Service [Member] | ||||
Revenues | ||||
Oil, gas and service income | $ 1,164 | $ 1,066 | $ 3,455 | $ 3,260 |
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 of common stock | (709) | (709) | (709) | |||||
Purchase of common stock, shares | (4,801) | |||||||
Net Income (Loss) | (46) | 65 | 65 | (111) | ||||
Balance at Sep. 30, 2020 | 102,608 | 281 | 7,505 | 129,185 | (37,501) | 99,470 | 3,138 | |
Balance, shares at Sep. 30, 2020 | 1,994,177 | |||||||
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 Income (Loss) | (5,017) | (5,021) | (5,021) | 4 | ||||
Purchase of Non- controlling Interest | (6) | 19 | 19 | (25) | ||||
Balance at Sep. 30, 2021 | $ 92,975 | $ 281 | $ 7,560 | $ 121,783 | $ (37,502) | $ 92,122 | $ 853 | |
Balance, shares at Sep. 30, 2021 | 1,994,177 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2020shares | |
Treasury Stock [Member] | |
Purchase of common stock, shares | 4,801 |
Total Stockholders' Equity – PrimeEnergy [Member] | |
Purchase of common stock, shares | 4,801 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net (Loss) Income including non-controlling interest | $ (5,017) | $ (46) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion on discounted liabilities | 19,990 | 24,524 |
Gain on sale of properties | (111) | (14,967) |
Unrealized loss (gain) on derivative instruments, net | 7,162 | (62) |
Provision for deferred income taxes | (1,700) | 676 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,120) | 9,073 |
Due to related parties | (4) | |
Other assets | (655) | 422 |
Accounts payable | 6,170 | (438) |
Accrued liabilities | 109 | (1,293) |
Net Cash Provided by (Used in) Operating Activities | 18,824 | 17,889 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (11,301) | (13,142) |
Proceeds from sale of properties and equipment | 111 | 10,777 |
Net Cash (Used in) Investing Activities | (11,190) | (2,365) |
Cash Flows from Financing Activities: | ||
Purchase of stock for treasury | (709) | |
Purchase of non-controlling interests | (6) | 0 |
Proceeds from long-term bank debt and other long-term obligations | 3,000 | 6,756 |
Repayment of long-term bank debt and other long-term obligations | (8,000) | (18,500) |
Net Cash (Used in) Financing Activities | (5,006) | (12,453) |
Net Increase in Cash and Cash Equivalents | 2,628 | 3,071 |
Cash and Cash Equivalents at the Beginning of the Period | 996 | 1,015 |
Cash and Cash Equivalents at the End of the Period | 3,624 | 4,086 |
Supplemental Disclosures: | ||
Income taxes paid | ||
Interest paid | $ 1,384 | $ 1,653 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 September 30, 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 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | (2) Acquisitions and Dispositions: Historically the Company has repurchased the interests of the partners and trust unit holders in the oil and gas limited partnerships (the “Partnerships”) and the asset and business income trusts (the “Trusts”) managed by the Company as general partner and as managing trustee, respectively. The Company repurchased $6,000 of such non-controlling |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Information | (3) Additional Balance Sheet Information: Certain balance sheet amounts are comprised of the following: (Thousands of dollars) September, December 31, Accounts Receivable: Joint interest billing $ 2,589 $ 2,475 Trade receivables 1,866 1,073 Oil and gas sales 10,084 3,469 Other 400 802 14,939 7,819 Less: Allowance for doubtful accounts (598 ) (598 ) Total $ 14,341 $ 7,221 Accounts Payable: Trade $ 7,011 $ 876 Royalty and other owners 3,724 3,569 Partner advances 223 193 Other 429 579 Total $ 11,387 $ 5,217 Accrued Liabilities: Compensation and related expenses $ 3,259 $ 3,331 Property costs 2,533 2,056 Taxes 866 1,016 Other 238 384 Total $ 6,896 $ 6,787 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (4) Property and Equipment: Property and equipment at September 30, 2021 and December 31, 2020 consisted of the following: (Thousands of dollars) September December 31, Proved oil and gas properties, at cost $ 531,475 $ 520,488 Less: Accumulated depletion and depreciation (354,978 ) (335,390 ) Oil and Gas Properties, Net $ 176,497 $ 185,098 Field and office equipment $ 27,018 $ 26,797 Less: Accumulated depreciation (21,244 ) (20,842 ) Field and Office Equipment, Net $ 5,774 $ 5,955 Total Property and Equipment, Net $ 182,271 $ 191,053 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (5) 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 $300 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 September $ nine September nine September 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 expi 1. 37 |
Other Long-Term Obligations and
Other Long-Term Obligations and Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Other Long-Term Obligations and Commitments | (6) 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 right-of-use Operating lease costs for the nine months ended September 30, 2021 were . Cash payments included in the operating lease cost for nine months ended September 30, 2021 were . The weighted-average remaining operating lease terms is The Company amended certain leases for office space in Texas providing for payments of $299,000 in 2021, $158,000 in 2022 and $17,000 in 2023. Rent expense for office space for the nine months ended September 30, 2021 and 2020 was $441,000 and $496,000, respectively. The payment schedule for the Company’s operating lease obligations as of September 30, 2021 is as follows: (Thousands of dollars) Operating 2021 $ 144 2022 158 2023 17 Total undiscounted lease payments $ 319 Less: Amount associated with discounting (11 ) Net operating lease liabilities $ 308 Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the nine 2021 (Thousands of dollars) September Asset retirement obligation at December 31, 2020 $ 13,660 Liabilities incurred 721 Liabilities settled (1,047 ) Accretion expense 487 Asset retirement obligation at September $ 13,821 |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | (7) 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 | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Other Compensation | (8) Stock Options and Other Compensation: In May 1989, non-statutory |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (9) Related Party Transactions: The Company, as managing general partner or managing trustee, makes an annual offer to repurchase the interests of the partners and trust unit holders in certain of the Partnerships or Trusts. The Company repurchased $6,000 of such non-controlling |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | (10) 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 September 30, 2021 and December 31, 2020: September 30, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Liabilities Commodity derivative contracts $ — $ — $ (7,834 ) $ (7,834 ) Total liabilities $ — $ — $ (7,834 ) $ (7,834 ) December 31, 2020 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 97 $ 97 Total assets $ — $ — $ 97 $ 97 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 September 30, 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized (gains) losses: Included in earnings (a) (10,058 ) Purchases, sales, issuances and settlements 2,895 Net Liabilities — September 30, 2021 $ (7,834 ) (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 September 30, 2021 and December 31, 2020: Fair Value (Thousands of dollars) Balance Sheet Location September December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Natural gas commodity contracts Derivative asset long-term and — $ 97 Total $ — $ 97 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (3,994 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (2,183 ) (296 ) Crude oil commodity contracts Derivative liability long-term (1,178 ) — Natural gas commodity contracts Derivative liability long-term (479 ) (44 ) Total $ (7,834 ) $ (768 ) Total derivative instruments $ (7,834 ) $ (671 ) The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2021 and 2020: Amount of gain/loss (Thousands of dollars) Location of gain/loss recognized in income 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (2,418 ) (576 ) Crude oil commodity contracts Unrealized (4,744 ) 514 Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (1,009 ) 533 Crude oil commodity contracts Realized (loss) on derivative instruments, net (1,887 ) 5,643 $ (10,058) $ 6,114 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (11) 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: Nine Months Ended September 30, 2021 2020 Net Loss Weighted Per Net Weighted Per Basic $ (5,021 ) 1,994,177 $ (2.52 $ 65 1,994,175 $ 0.03 Effect of dilutive securities: Options (a) 758,367 Diluted $ (5,021 ) 1,994,177 $ (2.52 ) $ 65 2,752,542 $ 0.02 Three Months Ended September 30, 2021 2020 Net Loss Weighted Per Net Weighted Per Basic $ (1,163 ) 1,994,177 $ (0.58 ) $ 6,501 1,994,177 $ 3.26 Effect of dilutive securities: Options (a) — 756,154 Diluted $ (1,163 ) 1,994,177 $ (0.58 ) $ 6,501 2,750,331 $ 2.36 (a) The effect of the 767,500 outstanding stock options is antidilutive for the nine and three months ended September 30, 2021 due to net loss for these periods. |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 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) September, December 31, Accounts Receivable: Joint interest billing $ 2,589 $ 2,475 Trade receivables 1,866 1,073 Oil and gas sales 10,084 3,469 Other 400 802 14,939 7,819 Less: Allowance for doubtful accounts (598 ) (598 ) Total $ 14,341 $ 7,221 Accounts Payable: Trade $ 7,011 $ 876 Royalty and other owners 3,724 3,569 Partner advances 223 193 Other 429 579 Total $ 11,387 $ 5,217 Accrued Liabilities: Compensation and related expenses $ 3,259 $ 3,331 Property costs 2,533 2,056 Taxes 866 1,016 Other 238 384 Total $ 6,896 $ 6,787 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment at September 30, 2021 and December 31, 2020 consisted of the following: (Thousands of dollars) September December 31, Proved oil and gas properties, at cost $ 531,475 $ 520,488 Less: Accumulated depletion and depreciation (354,978 ) (335,390 ) Oil and Gas Properties, Net $ 176,497 $ 185,098 Field and office equipment $ 27,018 $ 26,797 Less: Accumulated depreciation (21,244 ) (20,842 ) Field and Office Equipment, Net $ 5,774 $ 5,955 Total Property and Equipment, Net $ 182,271 $ 191,053 |
Other Long-Term Obligations a_2
Other Long-Term Obligations and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments for Non-Cancelable Operating Leases | The payment schedule for the Company’s operating lease obligations as of September 30, 2021 is as follows: (Thousands of dollars) Operating 2021 $ 144 2022 158 2023 17 Total undiscounted lease payments $ 319 Less: Amount associated with discounting (11 ) Net operating lease liabilities $ 308 |
Reconciliation of Liability for Plugging and Abandonment Costs | A reconciliation of the liability for plugging and abandonment costs for the nine 2021 (Thousands of dollars) September Asset retirement obligation at December 31, 2020 $ 13,660 Liabilities incurred 721 Liabilities settled (1,047 ) Accretion expense 487 Asset retirement obligation at September $ 13,821 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020: September 30, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Liabilities Commodity derivative contracts $ — $ — $ (7,834 ) $ (7,834 ) Total liabilities $ — $ — $ (7,834 ) $ (7,834 ) December 31, 2020 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 97 $ 97 Total assets $ — $ — $ 97 $ 97 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 September 30, 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized (gains) losses: Included in earnings (a) (10,058 ) Purchases, sales, issuances and settlements 2,895 Net Liabilities — September 30, 2021 $ (7,834 ) |
Effect of Derivative Instruments on Consolidated Balance Sheets | The following table sets forth the effect of derivative instruments on the consolidated balance sheets at September 30, 2021 and December 31, 2020: Fair Value (Thousands of dollars) Balance Sheet Location September December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Natural gas commodity contracts Derivative asset long-term and — $ 97 Total $ — $ 97 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (3,994 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (2,183 ) (296 ) Crude oil commodity contracts Derivative liability long-term (1,178 ) — Natural gas commodity contracts Derivative liability long-term (479 ) (44 ) Total $ (7,834 ) $ (768 ) Total derivative instruments $ (7,834 ) $ (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 nine months ended September 30, 2021 and 2020: Amount of gain/loss (Thousands of dollars) Location of gain/loss recognized in income 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (2,418 ) (576 ) Crude oil commodity contracts Unrealized (4,744 ) 514 Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (1,009 ) 533 Crude oil commodity contracts Realized (loss) on derivative instruments, net (1,887 ) 5,643 $ (10,058) $ 6,114 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following reconciles amounts reported in the financial statements: Nine Months Ended September 30, 2021 2020 Net Loss Weighted Per Net Weighted Per Basic $ (5,021 ) 1,994,177 $ (2.52 $ 65 1,994,175 $ 0.03 Effect of dilutive securities: Options (a) 758,367 Diluted $ (5,021 ) 1,994,177 $ (2.52 ) $ 65 2,752,542 $ 0.02 Three Months Ended September 30, 2021 2020 Net Loss Weighted Per Net Weighted Per Basic $ (1,163 ) 1,994,177 $ (0.58 ) $ 6,501 1,994,177 $ 3.26 Effect of dilutive securities: Options (a) — 756,154 Diluted $ (1,163 ) 1,994,177 $ (0.58 ) $ 6,501 2,750,331 $ 2.36 (a) The effect of the 767,500 outstanding stock options is antidilutive for the nine and three months ended September 30, 2021 due to net loss for these periods. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Purchase of non-controlling interests | $ 6,000 |
Non-Controlling Interest [Member] | |
Business Acquisition [Line Items] | |
Purchase of non-controlling interests | 25,000 |
Partnership And Trust [Member] | |
Business Acquisition [Line Items] | |
Purchase of non-controlling interests | 6,000 |
Partnership And Trust [Member] | Non-Controlling Interest [Member] | |
Business Acquisition [Line Items] | |
Purchase of non-controlling interests | $ 6,000 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable: | ||
Joint interest billing | $ 2,589 | $ 2,475 |
Trade receivables | 1,866 | 1,073 |
Oil and gas sales | 10,084 | 3,469 |
Other | 400 | 802 |
Accounts Receivable, Gross | 14,939 | 7,819 |
Less: Allowance for doubtful accounts | (598) | (598) |
Total | 14,341 | 7,221 |
Accounts Payable: | ||
Trade | 7,011 | 876 |
Royalty and other owners | 3,724 | 3,569 |
Partner advances | 223 | 193 |
Other | 429 | 579 |
Total | 11,387 | 5,217 |
Accrued Liabilities: | ||
Compensation and related expenses | 3,259 | 3,331 |
Property costs | 2,533 | 2,056 |
Taxes | 866 | 1,016 |
Other | 238 | 384 |
Total | $ 6,896 | $ 6,787 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties, at cost | $ 531,475 | $ 520,488 |
Less: Accumulated depletion and depreciation | (354,978) | (335,390) |
Oil and gas properties, net | 176,497 | 185,098 |
Field and office equipment | 27,018 | 26,797 |
Less: Accumulated depreciation | (21,244) | (20,842) |
Field and office equipment, net | 5,774 | 5,955 |
Total Property and Equipment, Net | $ 182,271 | $ 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 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Feb. 15, 2017 |
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings under revolving credit facility | $ 31,500 | |||||||
Weighted-average interest rate of borrowings | 5.35% | |||||||
Credit facility remaining borrowing capacity | $ 8,500 | |||||||
Long-term Debt, Current Maturities | $ 1,365 | $ 487 | ||||||
Loan Under Paycheck Protection Programme [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Current Maturities | $ 1,370 | |||||||
Long-term bank debt | $ 323 | |||||||
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 | 5.31% | 3.94% |
Other Long-Term Obligations a_3
Other Long-Term Obligations and Commitments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 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 | $ 441,000 | $ 496,000 |
Lease Payments With in One Year | 299,000 | |
Lease payments due next year | 158,000 | |
Lease payments due next two years | $ 17,000 | |
Weighted-average discount rate | 5.50% | |
Operating lease weighted-average remaining lease term | 11 months 15 days | |
Operating lease payments | $ 433,000,000 | |
Operating lease cost | $ 450,000,000 |
Other Long-Term Obligations a_4
Other Long-Term Obligations and Commitments - Summary of Operating and Financing Lease Obligation (Detail) | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 144,000 |
2022 | 158,000 |
2023 | 17,000 |
Total undiscounted lease payments | 319,000 |
Less: Amount associated with discounting | (11,000) |
Net operating lease liabilities | $ 308,000 |
Other Long-Term Obligations a_5
Other Long-Term Obligations and Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Asset retirement obligation | $ 13,660 |
Liabilities incurred | 721 |
Liabilities settled | (1,047) |
Accretion expense | 487 |
Asset retirement obligation | $ 13,821 |
Stock Options and Other Compe_2
Stock Options and Other Compensation - Additional Information (Detail) | Sep. 30, 2021$ / sharesshares | Sep. 30, 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 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |
Purchase of non-controlling interests | $ 6,000 |
Partnership And Trust [Member] | |
Related Party Transaction [Line Items] | |
Purchase of non-controlling interests | $ 6,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Derivative assets | $ 97 | |
Liabilities | ||
Derivative liabilities | $ (7,834) | (768) |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 97 | |
Liabilities | ||
Derivative liabilities | (7,834) | (768) |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 97 | |
Liabilities | ||
Derivative liabilities | (7,834) | (768) |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 97 | |
Liabilities | ||
Derivative liabilities | (7,834) | (768) |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 97 | |
Liabilities | ||
Derivative liabilities | $ (7,834) | $ (768) |
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 | 9 Months Ended | |
Sep. 30, 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 | (10,058) | [1] |
Purchases, sales, issuances and settlements | 2,895 | |
Net Liabilities end of period | $ (7,834) | |
[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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 97 | |
Derivative liabilities | $ (7,834) | (768) |
Total derivative instruments | (7,834) | (671) |
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 | (2,183) | (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 | (479) | (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 | (3,994) | (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 | $ (1,178) | |
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 | $ 97 |
Financial Instruments - Effec_2
Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (10,058) | $ 6,114 |
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 | (2,418) | (576) |
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 | (1,009) | 533 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Unrealized (loss) gain on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | (4,744) | 514 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized (loss) on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (1,887) | $ 5,643 |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Earnings Per Share [Abstract] | |||||
Net (Loss) Income, Basic | $ (1,163) | $ 6,501 | $ (5,021) | $ 65 | |
Net (Loss) Income, Diluted | $ (1,163) | $ 6,501 | $ (5,021) | $ 65 | |
Weighted Average Number of Shares Outstanding, Basic | 1,994,177 | 1,994,177 | 1,994,177 | 1,994,175 | |
Weighted Average Number of Shares Outstanding, Options | [1] | 756,154 | 758,367 | ||
Weighted Average Number of Shares Outstanding, Diluted | 1,994,177 | 2,750,331 | 1,994,177 | 2,752,542 | |
Per Share Amount, Basic | $ (0.58) | $ 3.26 | $ (2.52) | $ 0.03 | |
Per Share Amount, Diluted | $ (0.58) | $ 2.36 | $ (2.52) | $ 0.02 | |
[1] | The effect of the 767,500 outstanding stock options is antidilutive for the nine and three months ended September 30, 2021 due to net loss for these periods. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 767,500 | 767,500 | 767,500 | 767,500 |