Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Apr. 12, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PRIMEENERGY RESOURCES CORP | ||
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 Voluntary Filers | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 37,001,831 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | PNRG | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 1,979,133 | ||
Entity Well-known Seasoned Issuer | No | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-7406 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 9821 Katy Freeway | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77024 | ||
City Area Code | 713 | ||
Local Phone Number | 735-0000 | ||
Entity Tax Identification Number | 84-0637348 | ||
Auditor Name | Grassi & Co., CPAs, P.C. | ||
Auditor Firm ID | 606 | ||
Auditor Location | New York |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 10,347 | $ 996 |
Accounts receivable, net | 14,208 | 7,221 |
Prepaid obligations | 733 | 590 |
Other current assets | 40 | 104 |
Total Current Assets | 25,328 | 8,911 |
Property and Equipment | ||
Oil and gas properties at cost | 539,484 | 520,488 |
Less: Accumulated depletion and depreciation | (359,742) | (335,390) |
Oil and gas properties, net | 179,742 | 185,098 |
Field and office equipment at cost | 27,080 | 26,797 |
Less: Accumulated depreciation | (22,159) | (20,842) |
Field and office equipment, net | 4,921 | 5,955 |
Total Property and Equipment, Net | 184,663 | 191,053 |
Derivative asset long-term and other assets | 923 | 520 |
Total Assets | 210,914 | 200,484 |
Current Liabilities | ||
Accounts payable | 7,282 | 5,217 |
Accrued liabilities | 7,821 | 6,787 |
Due to related Parties | 52 | 38 |
Current portion of long-term debt | 487 | |
Current portion of asset retirement and other long-term obligations | 1,630 | 867 |
Derivative liability short-term | 4,935 | 724 |
Total Current Liabilities | 21,720 | 14,120 |
Long-Term Bank Debt | 36,000 | 38,267 |
Asset Retirement Obligations | 13,222 | 12,891 |
Derivative Liability Long-Term | 650 | 44 |
Deferred Income Taxes | 38,743 | 36,367 |
Other Long-Term Obligations | 1,488 | 797 |
Total Liabilities | 111,823 | 102,486 |
Equity | ||
Common stock, $.10 par value; 2021 and 2020: Authorized: 2,810,000 shares, outstanding 2021: 1,992,077 shares; outstanding 2020: 1,994,177 shares. | 281 | 281 |
Paid-in capital | 7,555 | 7,541 |
Retained earnings | 128,902 | 126,804 |
Treasury stock, at cost; 2021: 817,923 shares; 2020: 815,8230 | (37,647) | (37,502) |
Total Stockholders' Equity – PrimeEnergy | 99,091 | 97,124 |
Non-controlling interest | 0 | 874 |
Total Equity | 99,091 | 97,998 |
Total Liabilities and Equity | $ 210,914 | $ 200,484 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 31, 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 | 1,992,077 | 1,994,177 |
Treasury stock, shares | 817,923 | 815,823 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | ||
Realized gain (loss) on derivative instruments, net | $ (5,045) | $ 6,173 |
Unrealized (loss) on derivative instruments | (4,914) | (190) |
Other income | 29 | 182 |
Total Revenues | 79,613 | 58,421 |
Costs and Expenses | ||
Lease operating expense | 27,804 | 23,028 |
Field service expense | 11,580 | 9,006 |
Depreciation, depletion, amortization and accretion on discounted liabilities | 26,325 | 28,176 |
General and administrative expense | 10,426 | 15,027 |
Total Costs and Expenses | 76,135 | 75,237 |
Gain on Sale and Exchange of Assets | 1,478 | 15,836 |
Income (Loss) from Operations | 4,956 | (980) |
Other Income and Expenses | ||
Less: Interest expense | (2,007) | (1,902) |
Add:Other income | 2 | |
Add: PPP Loan Forgiveness | 1,693 | |
Income (Loss) Before Provision for (Benefit from) Income Taxes | 4,642 | (2,880) |
Provision (Benefit from) Income Taxes | 2,516 | (517) |
Net Income (Loss) | 2,126 | (2,363) |
Less: Net Income (Loss) Attributable to Non-Controlling Interest | 28 | (47) |
Net Income (Loss) Attributable to PrimeEnergy | $ 2,098 | $ (2,316) |
Basic Income (Loss) Per Common Share | $ 1.05 | $ (1.16) |
Diluted Income (Loss) Per Common Share | $ 0.76 | $ (1.16) |
Oil sales [Member] | ||
Revenues | ||
Oil, gas and service income | $ 50,474 | $ 27,865 |
Natural gas sales [Member] | ||
Revenues | ||
Oil, gas and service income | 11,432 | 4,202 |
Natural gas liquids sales [Member] | ||
Revenues | ||
Oil, gas and service income | 11,220 | 4,906 |
Oil and gas service [Member] | ||
Revenues | ||
Oil, gas and service income | 11,806 | 11,120 |
Administrative Service [Member] | ||
Revenues | ||
Oil, gas and service income | $ 4,611 | $ 4,163 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) | 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 | $ 103,363,000 | $ 281,000 | $ 7,505,000 | $ 129,120,000 | $ (36,792,000) | $ 100,114,000 | $ 3,249,000 | |
Balance, shares at Dec. 31, 2019 | 1,998,978 | |||||||
Repurchase shares of common stock | (710,000) | (710,000) | (710,000) | $ (4,801) | ||||
Net Income | (2,363,000) | (2,316,000) | (2,316,000) | (47,000) | ||||
Purchase of Non- controlling Interest | (22,000) | 36,000 | 36,000 | (58,000) | ||||
Distributions to non-controlling interest | (2,270,000) | (2,270,000) | ||||||
Balance at Dec. 31, 2020 | 97,998,000 | 281,000 | 7,541,000 | 126,804,000 | (37,502,000) | 97,124,000 | 874,000 | |
Balance, shares at Dec. 31, 2020 | 1,994,177 | |||||||
Repurchase shares of common stock | (145,000) | (145,000) | (145,000) | $ (2,100) | ||||
Net Income | 2,126,000 | 2,098,000 | 2,098,000 | 28,000 | ||||
Purchase of Non- controlling Interest | (44,000) | 14,000 | 0 | 14,000 | (58,000) | |||
Distributions to non-controlling interest | (844,000) | 0 | (844,000) | |||||
Balance at Dec. 31, 2021 | $ 99,091,000 | $ 281,000 | $ 7,555,000 | $ 128,902,000 | $ (37,647,000) | $ 99,091,000 | $ 0 | |
Balance, shares at Dec. 31, 2021 | 1,992,077 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Repurchase of common stock, shares | 2,100 | 4,801 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ 2,126 | $ (2,363) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion on discounted liabilities | 26,325 | 28,176 |
Gain on sale of properties | (1,478) | (15,836) |
Unrealized loss (gain) on derivative instruments | 4,914 | 190 |
PPP Loan forgiveness | (1,693) | |
Provision for deferred income taxes | 2,376 | 443 |
Changes in assets and liabilities: | ||
Accounts receivable | (6,987) | 7,139 |
Due to related parties | 14 | 38 |
Prepaid expenses and other assets | (79) | 58 |
Accounts payable | 2,065 | (1,417) |
Accrued liabilities | 1,034 | (49) |
Net Cash Provided by Operating Activities | 28,617 | 16,379 |
Cash Flows from Investing Activities: | ||
Capital expenditures, including exploration expense | (20,726) | (10,523) |
Proceeds from sale of properties and equipment | 1,478 | 10,862 |
Net Cash (Used in) provided by Investing Activities | (19,248) | 339 |
Cash Flows from Financing Activities: | ||
Purchase of stock for treasury | (145) | (710) |
Purchase of non-controlling interests | (676) | (742) |
Increase in long-term bank debt and other long-term obligations | 11,209 | 6,755 |
Repayment of long-term bank debt and other long-term obligations | (10,209) | (21,983) |
Distribution to non-controlling interest | (197) | (57) |
Net Cash (used in) Financing Activities | (18) | (16,737) |
Net Increase (Decrease) in Cash and Cash Equivalents | 9,351 | (19) |
Cash and Cash Equivalents at the Beginning of the Year | 996 | 1,015 |
Cash and Cash Equivalents at the End of the Year | 10,347 | 996 |
Supplemental Disclosures: | ||
Income taxes paid during the year | 343 | 1 |
Interest paid during the year | 1,957 | 2,052 |
Non-Cash Disclosures: | ||
Purchase of non-controlling interest | 14 | 36 |
Distribution of non-controlling interest in liquidated partnerships | $ 647 | $ 1,550 |
Description of Operations and S
Description of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Operations and Significant Accounting Policies | 1. Description of Operations and Significant Accounting Policies Nature of Operations: PrimeEnergy Resources Corporation (“PERC”), a Delaware corporation, was organized in March 1973 and is engaged in the development, acquisition and production of oil and natural gas properties. PrimeEnergy Resources Corporation and its subsidiaries are herein referred to as the “Company.” The Company owns leasehold, mineral and royalty interests in producing and non-producing non-operating Effects of Coronavirus on Business: The COVID-19 mid-2020, COVID-19 COVID-19 COVID-19 COVID-19 Effects of the Russian invasion of Ukraine: The invasion of Ukraine by Russian forces at the end of February 2022 has created increased volatility in both natural gas and oil markets, resulting in increased prices and supply demands. Changes in these markets will ultimately depend on various factors and consequences beyond the Company’s control. The Company continues to assess the impact of these changes on the Company and may modify its response as these changes continue to evolve. Consolidation and Presentation: The consolidated financial statements include the accounts of PrimeEnergy Resources Corporation, its subsidiaries and the Partnerships, using the full consolidation method for those partnerships which are controlled by the Company. The Company’s reserve estimates are based on the full consolidation method. DD&A expense and evaluation of impairment may differ from the Partnership as the Company’s cost basis for the Partnership interests acquired may be different than the cost basis at the Partnership level for properties acquired by the Partnership. All significant intercompany balances and transactions are eliminated in preparing the consolidated financial statements. Reclassifications: Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on net income and no material impact on any other financial statement captions. Subsequent Events: Subsequent events have been evaluated through the date that the consolidated financial statements were issued. During this period, there were no material subsequent items requiring disclosure other than as stated in footnotes 2 and 4 to these financial statements. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, U.S. generally accepted accounting principles require that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. Property and Equipment: The Company follows the “successful efforts” method of accounting for its oil and gas properties. Under the successful efforts method, costs of acquiring undeveloped oil and gas leasehold acreage, including lease bonuses, brokers’ fees and other related costs are capitalized. Provisions for impairment of undeveloped oil and gas leases are based on periodic evaluations. Annual lease rentals and exploration expenses, including geological and geophysical expenses and exploratory dry hole costs, are charged against income as incurred. Costs of drilling and equipping productive wells, including development dry holes and related production facilities, are capitalized. All other property and equipment are carried at cost. Depreciation and depletion of oil and gas production equipment and properties are determined under the unit-of-production Capitalization of Interest: Interest costs related to financing major oil and gas projects in progress are capitalized until the projects are evaluated or until the projects are substantially complete and ready for their intended use if the projects are evaluated and successful. Impairment of Long-Lived Assets: The Company reviews long-lived assets, including oil and gas properties, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recovered. If the carrying amounts are not expected to be recovered by undiscounted cash flows, the assets are impaired, and an impairment loss is recorded. The amount of impairment is based on the estimated fair value of the assets determined by discounting anticipated future net cash flows. Fair Value: The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by U.S. generally accepted accounting principles to be measured at fair value. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. Asset Retirement Obligation: The asset retirement obligation primarily represents the estimated present value of the amount the Company will incur to plug, abandon and remediate producing properties at the end of their productive lives, in accordance with applicable state laws. The Company determined its asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The asset retirement obligation is recorded as a liability at its estimated present value at its inception, with an offsetting increase to producing properties. Periodic accretion of discount of the estimated liability is recorded as an expense in the statement of operations. Income Taxes: The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to turn around. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. As of December 31, 2021, and 2020, The Compan y The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome General and Administrative Expenses: General and administrative expenses represent cost and expenses associated with the operation of the Company. Earnings Per Common 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. Statements of Cash Flows: For purposes of the consolidated statements of cash flows, the Company considers short-term, highly liquid investments with original maturities of less than ninety days to be cash equivalents. Concentration of Credit Risk: The Company maintains significant banking relationships with financial institutions in the State of Texas. The Company limits its risk by periodically evaluating the relative credit standing of these financial institutions. The Company’s oil and gas production purchasers consist primarily of independent marketers and major gas pipeline companies. Hedging: The Company periodically enters into oil and gas financial instruments to manage its exposure to oil and gas price volatility. The oil and gas reference prices upon which the price hedging instruments are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company. The financial instruments are accounted for in accordance with applicable accounting standards for derivative instruments and hedging activities. Such standards require that applicable derivative instruments be measured at fair market value and recognized as assets or liabilities in the balance sheet. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation is generally established at the inception of a derivative. For derivatives designated as cash flow hedges and meeting applicable effectiveness guidelines, changes in fair value, to the extent effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative changes in fair value between the derivative contract and the hedged item over time. Any change in fair value of a derivative resulting from ineffectiveness or an excluded component of the gain/loss is recognized immediately in the statement of operations. Pronouncements Issued But Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. This guidance is effective for Smaller Reporting Companies for fiscal years beginning after December 15, 2022 |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 2. Acquisitions and Dispositions Historically, the non-controlling hich non-controlling non-cash non-controlling During 2021 and 2020 the Company liquidated partnerships for total cash payments of $632,000 and $720,000 respectively, resulting in the non-cash non-controlling . Effective December 31, 2021, all managed partnerships and trusts have been liquidated. During 2020 the Company acquired 232 net acres, along with 15% to 16.6% working interest ownership in 53 oil and gas wells and one commercial salt water disposal well operated by the Company, all located in Reagan County, Texas, for $343,000. In addition, we acquired 9.36 net acre in Upton County, Texas at a cost of $5,100. During 2021 the Company acquired 5.9 net acres, located in Midland county, Texas, for approximately and sold or farmed out interests in certain non-core million. In the first quarter of 2022, the Company has sold 1809 net leasehold acres in Reagan and Midland Counties, Texas through two separate transactions receiving gross proceeds of $14.1 million. |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Information | 3. Additional Balance Sheet Information Accounts receivable at December 31, 2021 and 2020 consisted of the following: December 31, (Thousands of dollars) 2021 2020 Joint interest billings $ 1,902 $ 2,475 Trade receivables 1,429 1,073 Oil and gas sales 11,154 3,469 Other 94 802 14,579 7,819 Less: Allowance for doubtful accounts (371 ) (598 ) Total $ 14,208 $ 7,221 Accounts payable at December 31, 2021 and 2020 consisted of the following: December 31, (Thousands of dollars) 2021 2020 Trade $ 2,390 $ 876 Royalty and other owners 2,802 3,569 Partner advances 1,209 193 Other 881 579 Total $ 7,282 $ 5,217 Accrued liabilities at December 31, 2021 and 2020 December 31, (Thousands of dollars) 2021 2020 Compensation and related expenses $ 3,919 $ 3,331 Property costs 2,901 2,056 Taxes 893 1,016 Other 108 384 Total $ 7,821 $ 6,787 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Deb 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 and 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 December 20, 2021 the company entered into a Seventh Amendment to the 2017 Credit Agreement. At this time , . On December 31, 2021, the Company had a total of $36 million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 5.38% and $14 million was available for future borrowings. The combined weighted average interest rate paid on outstanding bank borrowings subject to ABR base rate and SOFR interest was 5.29% for the year ended December 31, 2021 as compared to 3.95% for the year ended December 31, 2020. On March 31, 2022, the outstanding borrowings under the Company’s revolving credit facility were $9,000,000. 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 has ted The PPP loans have been approved for forgiveness by the Small Business Administration ( SBA) in conjunction with our lender PNC Bank. The effective date of February , for Eastern Oil Well Service Company in the amount of $ thousand in , consolidated statement of operations. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 5. 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 The Company amended certain leases for office space in Texas providing for payments of $599,000 in 2021, $601,000 in 2022 and $150,000 in 2023. Rent expense for office space the year s The payment schedule for the Company’s operating lease obligations as of December 31, 2021 is as follows: (Thousands of dollars) Operating 2022 $ 601 2023 150 Total undiscounted lease payments $ 751 Less: Amount associated with discounting (59 ) Net $ 692 Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, (Thousands of dollars) 2021 2020 Asset retirement obligation at beginning of period $ 13,660 $ 21,118 Liabilities incurred 724 4 Liabilities settled (1,047 ) (1,286 ) Liabilities divested (52 ) (5,731 ) Accretion expense 642 856 Revisions in estimated liabilities 368 (1,301 ) Asset retirement obligation at end of period $ 14,295 $ 13,660 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 6. Contingent Liabilities 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 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 | 12 Months Ended |
Dec. 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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, (Thousands of dollars) 2021 2020 Current: Federal $ 81 $ 950 State 59 80 Total current 140 1,030 Deferred: Federal 1,802 (1,491 ) State 574 (56 ) Total deferred 2,376 (1,547 ) Total income tax provision $ 2,516 $ (517 ) At December 31, (Thousands of dollars) 2021 2020 Deferred Tax Assets: Accrued liabilities $ 80 $ (584 ) Allowance for doubtful accounts 85 136 Derivative Contracts 1,272 153 State Net operating loss carry-forwards 470 760 Total deferred tax assets 1,907 465 Deferred Tax Liabilities: Partnership basis difference (98 ) 544 Depletion and depreciation 40,748 36,288 Total deferred tax liabilities 40,650 36,832 Net deferred tax liabilities $ 38,743 $ 36,367 The total provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 varies from the federal statutory tax rate as a result of the following: Year Ended December 31, (Thousands of dollars) 2021 2020 Expected tax expense $ 975 $ (595 ) Net changes in deferred assets and liabilities 2,376 (1,547 ) Permanent differences (677 ) 521 State income tax, net of federal benefit 47 63 Provision to return adjustment 744 1,547 Tax Credits (948 ) (502 ) Other, net (1 ) (4 ) Total income tax provision (benefit) $ 2,516 $ (517 ) Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. On December 22, 2017, the U.S. enacted into legislation the Tax Cuts and Jobs Act (2017 Tax Act). Under the 2017 Tax Act, the company may use alternative minimum tax (AMT) credits to fully offset any regular tax l The Company is entitled to percentage depletion on certain of its wells, which is calculated without reference to the basis of the property. To the extent that such depletion exceeds a property’s basis, it creates a permanent difference, which lowers the Company’s effective rate. The availability of the percentage depletion deduction is phased out as an entity’s production exceeds certain levels, and based on the Company’s increasing production the percentage depletion deduction is becoming less significant. The Company is allowed a credit against the Texas Franchise Tax based on net operating losses incurred in prior periods. The credits allowed are $89 thousand in the years 2020 through 2026. Any credits not utilized in a given year due to the allowable credit exceeding the tax liability may be carried forward. No credit may be carried forward past 2026. The value of the credit is calculated net of the federal income tax effect. The Company has not recorded any provision for uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The 2004, 2005, 2006, 2009 and 2017 federal income tax returns have been audited by the Internal Revenue Service. Returns for unexamined earlier years may be examined and adjustments made to the amount of percentage depletion and AMT credit carryforwards flowing from those years into an open tax year, although in general no assessment of income tax may be made for those years on which the statute has closed. State returns for the years 201 9 1 |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | 9. Segment Information and Major Customers The Company operates in one industry – oil and gas exploration, development, operation and servicing. The Company’s oil and gas activities are entirely in the United States. The Company sells its oil and natural gas and liquids production to a number of direct purchasers under direct contracts or through other operators under joint operating agreements. Listed below are the purchasers of the Company’s production which represented more than 10 % of the Company’s sales in the year 2021. Oil: Apache Corporation 48 % Plains All American Inc. 18 % Natural gas and liquids: Apache Corporation 52 % Targa Pipeline Mid-Continent 19 % Although there are no long-term oil and gas purchasing agreements with these purchasers, the Company believes that they will continue to purchase its oil and gas products and, if not, could be replaced by other purchasers. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and December 31, 2020: December 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contracts $ — $ — $ (5,585 ) $ (5,585 ) Total liabilities $ — $ — $ (5,585 ) $ (5,585 ) 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 ) To $ — $ — $ (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 year ended December 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized gains (losses): Included in earnings (a) (9,959 ) Purchases, sales, issuances and settlements 5,045 Net Liabilities — December 31, 2021 $ (5,585 ) (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 December 31, 2021 and 2020: Fair Value (Thousands of dollars) Balance Sheet Location December 31, 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 $ (3,992 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (943 ) (296 ) Crude oil commodity contracts Derivative liability long-term (490 ) — Natural gas commodity contracts Derivative liability long-term (160 ) (44 ) Total $ (5,585 ) $ (768 ) Total derivative instruments $ (5,585 ) $ (671 ) The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2021 and 2020: (Thousands of dollars) Location of gain/loss recognized in income Amount of gain/loss 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net (859 ) (351 ) Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net (4,055 ) 161 Natural gas commodity contracts Realized (loss) on derivative instruments, net (1,833 ) 476 Crude oil commodity contracts Realized (loss) gain on derivative instruments, net (3,212 ) 5,697 $ (9,959 ) $ 5,983 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. 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 purchased such interests in an amount totaling $676,000 during 2021 and $742,000 during 2020. 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, during a specific reporting year, for oil and gas sales net of expenses. |
Salary Deferral Plan
Salary Deferral Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Salary Deferral Plan | 12. Salary Deferral Plan The Company maintains a salary deferral plan (the “Plan”) in accordance with Internal Revenue Code Section 401(k), as amended. The Plan provides for matching contributions, of which $ and $ were made in 2021 and 2020, respectively |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 13. 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: Year Ended December 31, 2021 2020 Net Income Weighted Per Share Net Income Weighted Per Share Basic $ 2,098 1,992,077 $ 1.05 $ (2,316 ) 1,994,425 $ (1.16 ) Effect of dilutive securities: Options (a) — 752,085 — Diluted $ 2,098 2,744,162 $ 0.76 $ (2,316 ) 1,994,425 $ (1.16 ) (a) The effect of the 767,000 outstanding stock options is antidilutive for the year ended December 31, 202 0 |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Information | PRIMEENERGY RESOURCES CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CAPITALIZED COSTS RELATING TO OIL AND GAS PRODUCING ACTIVITIES (Unaudited) As of December 31, (Thousands of dollars) 2021 2020 Proved Developed oil and gas properties $ 539,484 $ 520,488 Proved Undeveloped oil and gas properties — — Total Capitalized Costs 539,484 520,488 Accumulated depreciation, depletion and valuation allowance (359,742 ) (335,390 ) Net Capitalized Costs $ 179,742 $ 185,098 COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES (Unaudited) cash flow sched Year Ended December 31, (Thousands of dollars) 2021 2020 Development Costs $ 18,678 $ 9,339 STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) As of December 31, (Thousands of dollars) 2021 2020 Future cash inflows $ 501,431 $ 221,090 Future production costs (207,697 ) (100,691 ) Future development costs (18,507 ) (39,167 ) Future income tax expenses (57,798 ) (15,135 ) Future Net Cash Flows 217,429 66,097 10% annual discount for estimated timing of cash flows (81,623 ) (24,479 ) Standardized Measure of Discounted Future Net Cash Flows $ 135,806 $ 41,619 See accompanying Notes to Supplementary Information STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) The following are the principal sources of change in the standardized measure of discounted future net cash flows during 2021 and 2020: Year Ended December 31, (Thousands of dollars) 2021 2020 Sales of oil and gas produced, net of production costs $ (45,322 $ (13,945 ) Net changes in prices and production costs 143,750 (16,578 ) Extensions, discoveries and improved recovery 6,440 314 Revisions of previous quantity estimates 18,991 (36,919 ) Net change in development costs (12,904 ) 20,724 Reserves sold (136 ) (874 ) Reserves purchased — 218 Accretion of discount 4,162 8,161 Net change in income taxes (21,180 ) 5,386 Changes in production rates (timing) and other 386 (6,480 ) Net change 94,187 (39,993 ) Standardized measure of discounted future net cash flow: Beginning of year 41,619 81,612 End of year $ 135,806 $ 41,619 PRIMEENERGY RESOURCES CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION RESERVE QUANTITY INFORMATION Years Ended December 31, 2021 and 2020 (Unaudited) As of December 31, 2021 2020 Oil NGL’s Gas Oil NGLs Gas Proved Developed Reserves: Beginning of year 2,684 2,258 13,633 4,381 2,914 19,995 Extensions, discoveries and improved recovery 69 1 628 11 7 36 Revisions of previous estimates 133 (29 ) 5,312 (995 ) (239 ) (1,721 ) Converted from undeveloped reserves 1,747 231 1,067 25 5 66 Reserves sold 15 5 26 (29 ) 0 (1,400 ) Reserve purchased — — — 24 8 38 Production 738 416 3,236 (733 ) (437 ) (3,381 ) End of year 5,386 2,882 23,902 2,684 2,258 13,633 Proved Undeveloped Reserves: Beginning of year 1,784 787 3,897 1,833 1,017 4,547 Extensions, discoveries and improved recovery (61 ) (557 ) (2,726 ) — — — Revisions of previous estimates 31 4 386 (24 ) (224 (584 ) Converted to developed reserves (1,747 ) (231 ) (1,067 ) (25 ) (5 ) (66 ) Reserves Sold (7 ) (4 ) (489 ) — — — End of year — — — 1,784 787 3,897 Total Proved Reserves at the End of the Year 5,386 2,882 23,902 4,468 3,045 17,530 RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES Years Ended December 31, 2021 and 2020 (Unaudited) Year Ended December 31, (Thousands of dollars) 2021 2020 Revenue: Oil and gas sales $ 73,126 $ 36,973 Costs and Expenses: Lease operating expenses 27,804 23,028 Depreciation, depletion and accretion 26,325 25,921 Income tax expense 3,989 (2,515 ) Total Costs and Expenses 58,118 46,434 Results of Operations from Producing Activities (excluding corporate overhead and interest costs) $ 15,008 $ (9,461 ) NOTES TO SUPPLEMENTARY INFORMATION (Unaudited) 1. Presentation of Reserve Disclosure Information Reserve disclosure information is presented in accordance with U.S. generally accepted accounting principles. The Company’s reserves include amounts attributable to non-controlling 2. Determination of Proved Reserves The estimates of the Company’s proved reserves were determined by an independent petroleum engineer in accordance with U.S. generally accepted accounting principles. The estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development and other factors. Estimated future net revenues were computed by reserves, less estimated future development and production costs based on current costs. Proved reserve quantity estimates are subject to numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. The accuracy of such estimates is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of subsequent drilling, testing and production may cause either upward or downward revision of previous estimates. Further, the volumes considered to be commercially recoverable fluctuate with changes in prices and operating costs. The Company emphasizes that proved reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of currently producing oil and gas properties. Accordingly, these estimates are expected to change as additional information becomes available in the future. 3. Results of Operations from Oil and Gas Producing Activities The results of operations from oil and gas producing activities were prepared in accordance with U.S. generally accepted accounting principles. General and administrative expenses, interest costs and other unrelated costs are not deducted in computing results of operations from oil and gas activities. 4. Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Oil and Gas Reserves The standardized measure of discounted future net cash flows relating to proved oil and gas reserves and the changes of standardized measure of discounted future net cash flows relating to proved oil and gas reserves were prepared in accordance with U.S. generally accepted accounting principles. Future cash inflows are computed as described in Note 2 by applying current prices to year-end Future production and development costs are computed estimating the expenditures to be incurred in developing and producing the oil and gas reserves at year-end, year-end Future income tax expenses are calculated by applying the U.S. tax rate to future pre-tax Future net cash flows are discounted at a rate of 10% annually (pursuant to applicable guidance) to derive the standardized measure of discounted future net cash flows. This calculation does not necessarily represent an estimate of fair market value or the present value of such cash flows since future year-end 5. Changes in Reserves The 2021 and 2020 extensions and discoveries reflect the drilling activity in the Company’s West Texas and Mid-Continent |
Description of Operations and_2
Description of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations: PrimeEnergy Resources Corporation (“PERC”), a Delaware corporation, was organized in March 1973 and is engaged in the development, acquisition and production of oil and natural gas properties. PrimeEnergy Resources Corporation and its subsidiaries are herein referred to as the “Company.” The Company owns leasehold, mineral and royalty interests in producing and non-producing non-operating |
Effects of Coronavirus on Business | Effects of Coronavirus on Business: The COVID-19 mid-2020, COVID-19 COVID-19 COVID-19 COVID-19 |
Effects of the Russian invasion of Ukraine | Effects of the Russian invasion of Ukraine: The invasion of Ukraine by Russian forces at the end of February 2022 has created increased volatility in both natural gas and oil markets, resulting in increased prices and supply demands. Changes in these markets will ultimately depend on various factors and consequences beyond the Company’s control. The Company continues to assess the impact of these changes on the Company and may modify its response as these changes continue to evolve. |
Consolidation and Presentation | Consolidation and Presentation: The consolidated financial statements include the accounts of PrimeEnergy Resources Corporation, its subsidiaries and the Partnerships, using the full consolidation method for those partnerships which are controlled by the Company. The Company’s reserve estimates are based on the full consolidation method. DD&A expense and evaluation of impairment may differ from the Partnership as the Company’s cost basis for the Partnership interests acquired may be different than the cost basis at the Partnership level for properties acquired by the Partnership. All significant intercompany balances and transactions are eliminated in preparing the consolidated financial statements. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on net income and no material impact on any other financial statement captions. |
Subsequent Events | Subsequent Events: Subsequent events have been evaluated through the date that the consolidated financial statements were issued. During this period, there were no material subsequent items requiring disclosure other than as stated in footnotes 2 and 4 to these financial statements. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, U.S. generally accepted accounting principles require that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. |
Property and Equipment | Property and Equipment: The Company follows the “successful efforts” method of accounting for its oil and gas properties. Under the successful efforts method, costs of acquiring undeveloped oil and gas leasehold acreage, including lease bonuses, brokers’ fees and other related costs are capitalized. Provisions for impairment of undeveloped oil and gas leases are based on periodic evaluations. Annual lease rentals and exploration expenses, including geological and geophysical expenses and exploratory dry hole costs, are charged against income as incurred. Costs of drilling and equipping productive wells, including development dry holes and related production facilities, are capitalized. All other property and equipment are carried at cost. Depreciation and depletion of oil and gas production equipment and properties are determined under the unit-of-production |
Capitalization of Interest | Capitalization of Interest: Interest costs related to financing major oil and gas projects in progress are capitalized until the projects are evaluated or until the projects are substantially complete and ready for their intended use if the projects are evaluated and successful. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews long-lived assets, including oil and gas properties, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recovered. If the carrying amounts are not expected to be recovered by undiscounted cash flows, the assets are impaired, and an impairment loss is recorded. The amount of impairment is based on the estimated fair value of the assets determined by discounting anticipated future net cash flows. |
Fair Value | Fair Value: The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by U.S. generally accepted accounting principles to be measured at fair value. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. |
Asset Retirement Obligation | Asset Retirement Obligation: The asset retirement obligation primarily represents the estimated present value of the amount the Company will incur to plug, abandon and remediate producing properties at the end of their productive lives, in accordance with applicable state laws. The Company determined its asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The asset retirement obligation is recorded as a liability at its estimated present value at its inception, with an offsetting increase to producing properties. Periodic accretion of discount of the estimated liability is recorded as an expense in the statement of operations. |
Income Taxes | Income Taxes: The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to turn around. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. As of December 31, 2021, and 2020, The Compan y The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome |
General and Administrative Expenses | General and Administrative Expenses: General and administrative expenses represent cost and expenses associated with the operation of the Company. |
Earnings Per Common Share | Earnings Per Common 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. |
Statements of Cash Flows | Statements of Cash Flows: For purposes of the consolidated statements of cash flows, the Company considers short-term, highly liquid investments with original maturities of less than ninety days to be cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk: The Company maintains significant banking relationships with financial institutions in the State of Texas. The Company limits its risk by periodically evaluating the relative credit standing of these financial institutions. The Company’s oil and gas production purchasers consist primarily of independent marketers and major gas pipeline companies. |
Hedging | Hedging: The Company periodically enters into oil and gas financial instruments to manage its exposure to oil and gas price volatility. The oil and gas reference prices upon which the price hedging instruments are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company. The financial instruments are accounted for in accordance with applicable accounting standards for derivative instruments and hedging activities. Such standards require that applicable derivative instruments be measured at fair market value and recognized as assets or liabilities in the balance sheet. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation is generally established at the inception of a derivative. For derivatives designated as cash flow hedges and meeting applicable effectiveness guidelines, changes in fair value, to the extent effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative changes in fair value between the derivative contract and the hedged item over time. Any change in fair value of a derivative resulting from ineffectiveness or an excluded component of the gain/loss is recognized immediately in the statement of operations. |
Pronouncements Issued But Not Yet Adopted | Pronouncements Issued But Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. This guidance is effective for Smaller Reporting Companies for fiscal years beginning after December 15, 2022 |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Balance Sheet Amounts | Accounts receivable at December 31, 2021 and 2020 consisted of the following: December 31, (Thousands of dollars) 2021 2020 Joint interest billings $ 1,902 $ 2,475 Trade receivables 1,429 1,073 Oil and gas sales 11,154 3,469 Other 94 802 14,579 7,819 Less: Allowance for doubtful accounts (371 ) (598 ) Total $ 14,208 $ 7,221 Accounts payable at December 31, 2021 and 2020 consisted of the following: December 31, (Thousands of dollars) 2021 2020 Trade $ 2,390 $ 876 Royalty and other owners 2,802 3,569 Partner advances 1,209 193 Other 881 579 Total $ 7,282 $ 5,217 Accrued liabilities at December 31, 2021 and 2020 December 31, (Thousands of dollars) 2021 2020 Compensation and related expenses $ 3,919 $ 3,331 Property costs 2,901 2,056 Taxes 893 1,016 Other 108 384 Total $ 7,821 $ 6,787 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Operating and Financing Lease Obligation | The payment schedule for the Company’s operating lease obligations as of December 31, 2021 is as follows: (Thousands of dollars) Operating 2022 $ 601 2023 150 Total undiscounted lease payments $ 751 Less: Amount associated with discounting (59 ) Net $ 692 |
Reconciliation of Liability for Plugging and Abandonment Costs | A reconciliation of the liability for plugging and abandonment costs for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, (Thousands of dollars) 2021 2020 Asset retirement obligation at beginning of period $ 13,660 $ 21,118 Liabilities incurred 724 4 Liabilities settled (1,047 ) (1,286 ) Liabilities divested (52 ) (5,731 ) Accretion expense 642 856 Revisions in estimated liabilities 368 (1,301 ) Asset retirement obligation at end of period $ 14,295 $ 13,660 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, (Thousands of dollars) 2021 2020 Current: Federal $ 81 $ 950 State 59 80 Total current 140 1,030 Deferred: Federal 1,802 (1,491 ) State 574 (56 ) Total deferred 2,376 (1,547 ) Total income tax provision $ 2,516 $ (517 ) |
Components of Net Deferred Tax Assets and Liabilities | At December 31, (Thousands of dollars) 2021 2020 Deferred Tax Assets: Accrued liabilities $ 80 $ (584 ) Allowance for doubtful accounts 85 136 Derivative Contracts 1,272 153 State Net operating loss carry-forwards 470 760 Total deferred tax assets 1,907 465 Deferred Tax Liabilities: Partnership basis difference (98 ) 544 Depletion and depreciation 40,748 36,288 Total deferred tax liabilities 40,650 36,832 Net deferred tax liabilities $ 38,743 $ 36,367 |
Provision for Income Taxes Varies from Federal Statutory Tax Rate | The total provision (benefit) for income taxes for the years ended December 31, 2021 and 2020 varies from the federal statutory tax rate as a result of the following: Year Ended December 31, (Thousands of dollars) 2021 2020 Expected tax expense $ 975 $ (595 ) Net changes in deferred assets and liabilities 2,376 (1,547 ) Permanent differences (677 ) 521 State income tax, net of federal benefit 47 63 Provision to return adjustment 744 1,547 Tax Credits (948 ) (502 ) Other, net (1 ) (4 ) Total income tax provision (benefit) $ 2,516 $ (517 ) |
Segment Information and Major_2
Segment Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information by Major Customers | The Company sells its oil and natural gas and liquids production to a number of direct purchasers under direct contracts or through other operators under joint operating agreements. Listed below are the purchasers of the Company’s production which represented more than 10 % of the Company’s sales in the year 2021. Oil: Apache Corporation 48 % Plains All American Inc. 18 % Natural gas and liquids: Apache Corporation 52 % Targa Pipeline Mid-Continent 19 % |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 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 December 31, 2021 and December 31, 2020: December 31, 2021 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contracts $ — $ — $ (5,585 ) $ (5,585 ) Total liabilities $ — $ — $ (5,585 ) $ (5,585 ) 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 ) To $ — $ — $ (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 year ended December 2021. (Thousands of dollars) Net Liabilities – December 31, 2020 $ (671 ) Total realized and unrealized gains (losses): Included in earnings (a) (9,959 ) Purchases, sales, issuances and settlements 5,045 Net Liabilities — December 31, 2021 $ (5,585 ) (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 December 31, 2021 and 2020: Fair Value (Thousands of dollars) Balance Sheet Location December 31, 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 $ (3,992 ) $ (428 ) Natural gas commodity contracts Derivative liability short-term (943 ) (296 ) Crude oil commodity contracts Derivative liability long-term (490 ) — Natural gas commodity contracts Derivative liability long-term (160 ) (44 ) Total $ (5,585 ) $ (768 ) Total derivative instruments $ (5,585 ) $ (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 years ended December 31, 2021 and 2020: (Thousands of dollars) Location of gain/loss recognized in income Amount of gain/loss 2021 2020 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized (loss) gain on derivative instruments, net (859 ) (351 ) Crude oil commodity contracts Unrealized (loss) gain on derivative instruments, net (4,055 ) 161 Natural gas commodity contracts Realized (loss) on derivative instruments, net (1,833 ) 476 Crude oil commodity contracts Realized (loss) gain on derivative instruments, net (3,212 ) 5,697 $ (9,959 ) $ 5,983 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following reconciles amounts reported in the financial statements: Year Ended December 31, 2021 2020 Net Income Weighted Per Share Net Income Weighted Per Share Basic $ 2,098 1,992,077 $ 1.05 $ (2,316 ) 1,994,425 $ (1.16 ) Effect of dilutive securities: Options (a) — 752,085 — Diluted $ 2,098 2,744,162 $ 0.76 $ (2,316 ) 1,994,425 $ (1.16 ) (a) The effect of the 767,000 outstanding stock options is antidilutive for the year ended December 31, 202 0 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities | CAPITALIZED COSTS RELATING TO OIL AND GAS PRODUCING ACTIVITIES (Unaudited) As of December 31, (Thousands of dollars) 2021 2020 Proved Developed oil and gas properties $ 539,484 $ 520,488 Proved Undeveloped oil and gas properties — — Total Capitalized Costs 539,484 520,488 Accumulated depreciation, depletion and valuation allowance (359,742 ) (335,390 ) Net Capitalized Costs $ 179,742 $ 185,098 |
Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities | COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES (Unaudited) cash flow sched Year Ended December 31, (Thousands of dollars) 2021 2020 Development Costs $ 18,678 $ 9,339 |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) As of December 31, (Thousands of dollars) 2021 2020 Future cash inflows $ 501,431 $ 221,090 Future production costs (207,697 ) (100,691 ) Future development costs (18,507 ) (39,167 ) Future income tax expenses (57,798 ) (15,135 ) Future Net Cash Flows 217,429 66,097 10% annual discount for estimated timing of cash flows (81,623 ) (24,479 ) Standardized Measure of Discounted Future Net Cash Flows $ 135,806 $ 41,619 |
Standardized Measure of Discounted Future Net Cash Flows and Changes therein Relating to Proved Oil and Gas Reserves | STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) The following are the principal sources of change in the standardized measure of discounted future net cash flows during 2021 and 2020: Year Ended December 31, (Thousands of dollars) 2021 2020 Sales of oil and gas produced, net of production costs $ (45,322 $ (13,945 ) Net changes in prices and production costs 143,750 (16,578 ) Extensions, discoveries and improved recovery 6,440 314 Revisions of previous quantity estimates 18,991 (36,919 ) Net change in development costs (12,904 ) 20,724 Reserves sold (136 ) (874 ) Reserves purchased — 218 Accretion of discount 4,162 8,161 Net change in income taxes (21,180 ) 5,386 Changes in production rates (timing) and other 386 (6,480 ) Net change 94,187 (39,993 ) Standardized measure of discounted future net cash flow: Beginning of year 41,619 81,612 End of year $ 135,806 $ 41,619 |
Reserve Quantity Information | RESERVE QUANTITY INFORMATION Years Ended December 31, 2021 and 2020 (Unaudited) As of December 31, 2021 2020 Oil NGL’s Gas Oil NGLs Gas Proved Developed Reserves: Beginning of year 2,684 2,258 13,633 4,381 2,914 19,995 Extensions, discoveries and improved recovery 69 1 628 11 7 36 Revisions of previous estimates 133 (29 ) 5,312 (995 ) (239 ) (1,721 ) Converted from undeveloped reserves 1,747 231 1,067 25 5 66 Reserves sold 15 5 26 (29 ) 0 (1,400 ) Reserve purchased — — — 24 8 38 Production 738 416 3,236 (733 ) (437 ) (3,381 ) End of year 5,386 2,882 23,902 2,684 2,258 13,633 Proved Undeveloped Reserves: Beginning of year 1,784 787 3,897 1,833 1,017 4,547 Extensions, discoveries and improved recovery (61 ) (557 ) (2,726 ) — — — Revisions of previous estimates 31 4 386 (24 ) (224 (584 ) Converted to developed reserves (1,747 ) (231 ) (1,067 ) (25 ) (5 ) (66 ) Reserves Sold (7 ) (4 ) (489 ) — — — End of year — — — 1,784 787 3,897 Total Proved Reserves at the End of the Year 5,386 2,882 23,902 4,468 3,045 17,530 |
Results of Operations from Oil and Gas Producing Activities | RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES Years Ended December 31, 2021 and 2020 (Unaudited) Year Ended December 31, (Thousands of dollars) 2021 2020 Revenue: Oil and gas sales $ 73,126 $ 36,973 Costs and Expenses: Lease operating expenses 27,804 23,028 Depreciation, depletion and accretion 26,325 25,921 Income tax expense 3,989 (2,515 ) Total Costs and Expenses 58,118 46,434 Results of Operations from Producing Activities (excluding corporate overhead and interest costs) $ 15,008 $ (9,461 ) |
Description of Operations and_3
Description of Operations and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Well | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of wells under non-operating interests | 822 | |
Valuation allowance | $ | $ 0 | $ 0 |
Maximum maturity period of cash and cash equivalents | 90 days | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of wells operating by the company | 710 | |
Depreciation period of equipment | 5 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period of equipment | 10 years |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)a | Dec. 31, 2021USD ($)aWell | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |||
Payments to acquire oil and gas property and equipment | $ 20,726,000 | $ 10,523,000 | |
Non cash acquisition of non controlling interests | 14,000 | 36,000 | |
Proceeds from liquidation of partnerships | 632,000,000 | 720,000,000 | |
Non cash distribution of non controlling interest | 647,000 | 1,550,000,000 | |
Non-Controlling Interest [Member] | |||
Business Acquisition [Line Items] | |||
Purchase of Non- controlling Interest | 44,000 | 22,000 | |
Non cash acquisition of non controlling interests | $ 14,000 | $ 36,000 | |
TEXAS | |||
Business Acquisition [Line Items] | |||
Number of Area of Land | a | 5.9 | ||
Cash Acquired from Acquisition | $ 29,500,000 | ||
Proceeds from Divestiture of Businesses | $ 1,450,000 | ||
TEXAS | Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Number of Acres Sold | a | 1,809 | ||
Proceeds from Divestiture of Businesses | $ 14,100,000 | ||
Reagan County [Member] | |||
Business Acquisition [Line Items] | |||
Number of Acres | a | 232 | ||
Number of oil and well assets | Well | 53 | ||
Payments to acquire oil and gas property and equipment | $ 343,000,000 | ||
Reagan County [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of working interest ownership in acquisition of Asset | 15.00% | ||
Reagan County [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of working interest ownership in acquisition of Asset | 16.60% | ||
Upton County [Member] | |||
Business Acquisition [Line Items] | |||
Number of Acres | a | 9.36 | ||
Payments to acquire oil and gas property and equipment | $ 5,100,000 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable: | ||
Joint interest billings | $ 1,902 | $ 2,475 |
Trade receivables | 1,429 | 1,073 |
Oil and gas sales | 11,154 | 3,469 |
Other | 94 | 802 |
Accounts Receivable, Gross | 14,579 | 7,819 |
Less: Allowance for doubtful accounts | (371) | (598) |
Total | 14,208 | 7,221 |
Accounts Payable: | ||
Trade | 2,390 | 876 |
Royalty and other owners | 2,802 | 3,569 |
Partner advances | 1,209 | 193 |
Other | 881 | 579 |
Total | 7,282 | 5,217 |
Accrued Liabilities: | ||
Compensation and related expenses | 3,919 | 3,331 |
Property costs | 2,901 | 2,056 |
Taxes | 893 | 1,016 |
Other | 108 | 384 |
Total | $ 7,821 | $ 6,787 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Mar. 16, 2022 | Feb. 18, 2022 | Dec. 20, 2021 | Feb. 11, 2021 | May 31, 2020 | Dec. 31, 2021 | Mar. 31, 2022 | Feb. 15, 2017 |
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings under revolving credit facility | $ 36,000,000 | |||||||
Weighted-average interest rate of borrowings | 5.38% | |||||||
Credit facility remaining borrowing capacity | $ 14,000,000 | |||||||
Line of Credit Facility, Decrease, Forgiveness | $ 1,200,000 | $ 481,000 | ||||||
Loan Under Paycheck Protection Programme [Member] | Eastern Oilwells Service Corporation [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from scheme based loan | $ 470,000 | |||||||
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 | $ 1,280,000 | |||||||
Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings under revolving credit facility | $ 9,000,000 | |||||||
2017 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing capacity | $ 300,000,000 | |||||||
Credit agreement date | Feb. 15, 2017 | |||||||
Line of credit facility, expiration date | Feb. 15, 2021 | |||||||
Equipment Loan, face amount | $ 50,000,000 | $ 40,000,000 | ||||||
Equipment Loan, maturity date | Feb. 11, 2023 | Feb. 11, 2023 | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 3.00% | 3.00% | ||||||
LIBOR Margin Rate | 4.00% | 4.00% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate | 2.00% | 2.00% | ||||||
LIBOR Margin Rate | 3.00% | 3.00% | ||||||
Base Rate And Libor [Member] | 2017 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis weighted average interest rate spread on variable rate | 3.95% | |||||||
Base Rate And Libor [Member] | Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis weighted average interest rate spread on variable rate | 5.29% |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 653,000 | $ 663,000 |
Lease Payments Due Next year | 599,000 | |
Lease payments due next two years | 601,000 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | $ 150,000 | |
Weighted-average discount rate | 5.50% | |
Operating lease weighted-average remaining lease term | 15 months | |
Operating Lease Payments | $ 599,000 | |
Operating Lease, Cost | $ 577,000 |
Commitments - Summary of Operat
Commitments - Summary of Operating and Financing Lease Obligation (Detail) | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 601,000 |
2023 | 150,000 |
Total undiscounted lease payments | 751,000 |
Less: Amount associated with discounting | (59,000) |
Net operating lease liabilities | $ 692,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Net operating lease liabilities |
Commitments - Reconciliation of
Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Asset retirement obligation | $ 13,660 | $ 21,118 |
Liabilities incurred | 724 | 4 |
Liabilities settled | (1,047) | (1,286) |
Liabilities divested | (52) | (5,731) |
Accretion expense | 642 | 856 |
Revisions in estimated liabilities | 368 | (1,301) |
Asset retirement obligation | $ 14,295 | $ 13,660 |
Stock Options and Other Compe_2
Stock Options and Other Compensation - Additional Information (Detail) | Dec. 31, 2021$ / sharesshares | Dec. 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 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 81 | $ 950 |
State | 59 | 80 |
Total current | 140 | 1,030 |
Deferred: | ||
Federal | 1,802 | (1,491) |
State | 574 | (56) |
Total deferred | 2,376 | (1,547) |
Total income tax provision (benefit) | $ 2,516 | $ (517) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets: | ||
Accrued liabilities | $ (80) | $ 584 |
Allowance for doubtful accounts | 85 | 136 |
Derivative Contracts | 1,272 | 153 |
State Net operating loss carry-forwards | 470 | 760 |
Total deferred tax assets | 1,907 | 465 |
Deferred Tax Liabilities: | ||
Partnership basis difference | (98) | 544 |
Depletion and depreciation | 40,748 | 36,288 |
Total deferred tax liabilities | 40,650 | 36,832 |
Net deferred tax liabilities | $ 38,743 | $ 36,367 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes Varies from Federal Statutory Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Expected tax expense | $ 975 | $ (595) |
Net changes in deferred assets and liabilities | 2,376 | (1,547) |
Permanent differences | (677) | 521 |
State income tax, net of federal benefit | 47 | 63 |
Provision to return adjustment | 744 | 1,547 |
Tax Credits | (948) | (502) |
Other, net | (1) | (4) |
Total income tax provision (benefit) | $ 2,516 | $ (517) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes And Tax Related [Line Items] | ||||
Percentage of AMT credit refundable | 100.00% | 50.00% | ||
Expected credits against regular tax and refunds of previously paid taxes | $ 1,720 | |||
Tax credit operating carry forward losses allowed after the period, Description | No credit may be carried forward past 2026 | |||
Percentage Of Increase In Refundable Portion Of AMT Credits | 100.00% | |||
Tax Year 2018 [Member] | ||||
Income Taxes And Tax Related [Line Items] | ||||
Income Tax Refundable | $ 1,720 | |||
Texas Franchise Tax [Member] | 2019 through 2026 [Member] | ||||
Income Taxes And Tax Related [Line Items] | ||||
Expected credits against regular tax and refunds of previously paid taxes | $ 89 |
Segment Information and Major_3
Segment Information and Major Customers - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member] | |
Revenue, Major Customer [Line Items] | |
Customer purchases with respect of company's sales | 10.00% |
Segment Information and Major_4
Segment Information and Major Customers - Segment Information by Major Customers (Detail) - Sales [Member] - Customer Concentration Risk [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Oil Purchasers [Member] | Apache Corporation [Member] | |
Revenue, Major Customer [Line Items] | |
Revenue by major customers | 48.00% |
Oil Purchasers [Member] | Plains All American Inc.[Member] | |
Revenue, Major Customer [Line Items] | |
Revenue by major customers | 18.00% |
Natural gas and liquids [Member] | Apache Corporation [Member] | |
Revenue, Major Customer [Line Items] | |
Revenue by major customers | 52.00% |
Natural gas and liquids [Member] | Targa Pipeline Mid-Continent West Tex, LLC [Member] | |
Revenue, Major Customer [Line Items] | |
Revenue by major customers | 19.00% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Derivative assets | $ 97 | |
Liabilities | ||
Derivative liabilities | $ (5,585) | (768) |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 97 |
Liabilities | ||
Derivative liabilities | (5,585) | (768) |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 97 |
Liabilities | ||
Derivative liabilities | (5,585) | (768) |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 97 |
Liabilities | ||
Derivative liabilities | (5,585) | (768) |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 97 |
Liabilities | ||
Derivative liabilities | $ (5,585) | $ (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 | 12 Months Ended | |
Dec. 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 | (9,959) | [1] |
Purchases, sales, issuances and settlements | 5,045 | |
Net Liabilities end of period | $ (5,585) | |
[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 | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 97 | |
Derivative liabilities | $ (5,585) | (768) |
Total derivative instruments | (5,585) | (671) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative asset long-term and other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 97 | |
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 | (943) | (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 | (160) | (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 | (3,992) | $ (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 | $ (490) |
Financial Instruments - Effec_2
Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (9,959) | $ 5,983 |
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 | (859) | (351) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Realized (loss) on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | (1,833) | 476 |
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 | (4,055) | 161 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized (loss) gain on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (3,212) | $ 5,697 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Purchase of non-controlling interests | $ 44,000 | $ 22,000 |
Partnership And Trust [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase of non-controlling interests | $ 676,000 | $ 742,000 |
Salary Deferral Plan - Addition
Salary Deferral Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Salary deferral plan, discretionary and matching contribution | $ 304,955 | $ 341,000 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net (Loss) Income, Basic | $ 2,098 | $ (2,316) |
Net (Loss) Income, Diluted | $ 2,098 | $ (2,316) |
Weighted Average Number of Shares Outstanding, Basic | 1,992,077 | 1,994,425 |
Weighted Average Number of Shares Outstanding, Options | 752,085 | |
Weighted Average Number of Shares Outstanding, Diluted | 2,744,162 | 1,994,425 |
Per Share Amount, Basic | $ 1.05 | $ (1.16) |
Per Share Amount, Diluted | $ 0.76 | $ (1.16) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021shares | |
Share-based Payment Arrangement, Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 767,000 |
Supplementary Information - Cap
Supplementary Information - Capitalized Costs Relating to Oil and Gas Producing Activities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Proved Developed oil and gas properties | $ 539,484 | $ 520,488 |
Proved Undeveloped oil and gas properties | 0 | |
Total Capitalized Costs | 539,484 | 520,488 |
Accumulated depreciation, depletion and valuation allowance | (359,742) | (335,390) |
Net Capitalized Costs | $ 179,742 | $ 185,098 |
Supplementary Information - Cos
Supplementary Information - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Development Costs | $ 18,678 | $ 9,339 |
Supplementary Information - Sta
Supplementary Information - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Future cash inflows | $ 501,431 | $ 221,090 |
Future production costs | (207,697) | (100,691) |
Future development costs | (18,507) | (39,167) |
Future income tax expenses | (57,798) | (15,135) |
Future Net Cash Flows | 217,429 | 66,097 |
10% annual discount for estimated timing of cash flows | (81,623) | (24,479) |
Standardized Measure of Discounted Future Net Cash Flows | $ 135,806 | $ 41,619 |
Supplementary Information - S_2
Supplementary Information - Standardized Measure of Discounted Future Net Cash Flows and Changes therein Relating to Proved Oil and Gas Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales of oil and gas produced, net of production costs | $ (45,322) | $ (13,945) |
Net changes in prices and production costs | 143,750 | (16,578) |
Extensions, discoveries and improved recovery | 6,440 | 314 |
Revisions of previous quantity estimates | 18,991 | (36,919) |
Net change in development costs | (12,904) | 20,724 |
Reserves sold | (136) | (874) |
Reserves purchased | 0 | 218 |
Accretion of discount | 4,162 | 8,161 |
Net change in income taxes | (21,180) | 5,386 |
Changes in production rates (timing) and other | 386 | (6,480) |
Net change | 94,187 | (39,993) |
Standardized measure of discounted future net cash flow: | ||
Beginning of year | 41,619 | 81,612 |
End of year | $ 135,806 | $ 41,619 |
Supplementary Information - Res
Supplementary Information - Reserve Quantity Information (Detail) | 12 Months Ended | |
Dec. 31, 2021MMcfMBbls | Dec. 31, 2020MBblsMMcf | |
Oil [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | 2,684 | 4,381 |
Extensions, discoveries and improved recovery | 69 | 11 |
Revisions of previous estimates | 133 | (995) |
Converted from undeveloped reserves | 1,747 | 25 |
Reserves sold | 15 | (29) |
Reserve purchased | 24 | |
Production | 738 | (733) |
End of year | 5,386 | 2,684 |
Proved Undeveloped Reserves: | ||
Beginning of year | 1,784 | 1,833 |
Extensions, discoveries and improved recovery | (61) | |
Revisions of previous estimates | 31 | (24) |
Converted to developed reserves | (1,747) | (25) |
Reserves Sold | MMcf | (7) | |
End of year | 1,784 | |
Total Proved Reserves at the End of the Year | 5,386 | 4,468 |
NGLs [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | 2,258 | 2,914 |
Extensions, discoveries and improved recovery | 1 | 7 |
Revisions of previous estimates | (29) | (239) |
Converted from undeveloped reserves | 231 | 5 |
Reserves sold | 5 | 0 |
Reserve purchased | 8 | |
Production | 416 | (437) |
End of year | 2,882 | 2,258 |
Proved Undeveloped Reserves: | ||
Beginning of year | 787 | 1,017 |
Extensions, discoveries and improved recovery | (557) | |
Revisions of previous estimates | 4 | (224) |
Converted to developed reserves | (231) | (5) |
Reserves Sold | MMcf | (4) | |
End of year | 787 | |
Total Proved Reserves at the End of the Year | 2,882 | 3,045 |
Gas [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | MMcf | 13,633 | 19,995 |
Extensions, discoveries and improved recovery | MMcf | 628 | 36 |
Revisions of previous estimates | MMcf | 5,312 | (1,721) |
Converted from undeveloped reserves | MMcf | 1,067 | 66 |
Reserves sold | MMcf | 26 | (1,400) |
Reserve purchased | MMcf | 38 | |
Production | MMcf | 3,236 | (3,381) |
End of year | MMcf | 23,902 | 13,633 |
Proved Undeveloped Reserves: | ||
Beginning of year | MMcf | 3,897 | 4,547 |
Extensions, discoveries and improved recovery | MMcf | (2,726) | |
Revisions of previous estimates | MMcf | 386 | (584) |
Converted to developed reserves | MMcf | (1,067) | (66) |
Reserves Sold | MMcf | (489) | |
End of year | MMcf | 3,897 | |
Total Proved Reserves at the End of the Year | MMcf | 23,902 | 17,530 |
Supplementary Information - R_2
Supplementary Information - Results of Operations from Oil and Gas Producing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | ||
Oil and gas sales | $ 73,126 | $ 36,973 |
Costs and Expenses: | ||
Lease operating expenses | 27,804 | 23,028 |
Depreciation, depletion and accretion | 26,325 | 25,921 |
Income tax expense | 3,989 | (2,515) |
Total Costs and Expenses | 58,118 | 46,434 |
Results of Operations from Producing Activities (excluding corporate overhead and interest costs) | $ 15,008 | $ (9,461) |
Supplementary Information - Add
Supplementary Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interest rate of Company's reserves | 10.00% |
Rate of discounted future net cash flows | 10.00% |
Percentage of discounted future prices | 10.00% |