Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | PrimeEnergy Resources Corporation | |
Entity Central Index Key | 0000056868 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PNRG | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 1,835,300 | |
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 | |
Document Quarterly Report | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,053 | $ 26,543 |
Accounts receivable, net | 26,788 | 12,147 |
Prepaid obligations | 5,268 | 32,839 |
Derivative asset | 0 | 210 |
Other current assets | 38 | 38 |
Total current assets | 37,350 | 72,165 |
Properties and equipment: | ||
Proved oil and gas properties, using the successful efforts method of accounting | 600,881 | 555,280 |
Other property | 26,948 | 27,246 |
Accumulated depletion and depreciation | (422,195) | (408,539) |
Total Property and Equipment, Net | 205,634 | 173,987 |
Right-of-use assets | 636 | 852 |
Other Assets | 132 | 133 |
Total Assets | 243,752 | 247,137 |
Current liabilities: | ||
Accounts payable | 16,999 | 11,451 |
Accrued liabilities | 21,100 | 25,750 |
Current portion of asset retirement and other long-term obligations | 1,621 | 2,566 |
Derivative liability | 0 | 1,190 |
Total current liabilities | 39,720 | 40,957 |
Long-term bank debt | 0 | 11,000 |
Asset retirement obligations | 13,755 | 13,525 |
Deferred income taxes | 42,539 | 39,968 |
Other long-term obligations | 1,249 | 1,334 |
Total Liabilities | 97,263 | 106,784 |
COMMITMENTS AND CONTINGENCIES | ||
Equity: | ||
Common stock, $.10 par value; 2,810,000 shares authorized, 1,840,500 and 1,901,000 shares outstanding as of June 30, 2023 and December 31, 2022 respectively | 281 | 281 |
Additional paid in capital | 7,555 | 7,555 |
Retained earnings | 189,066 | 177,566 |
Treasury stock, at cost; 969,500 and 909,000 shares as of June 30, 2023 and December 31, 2022, respectively | (50,413) | (45,049) |
Total Equity | 146,489 | 140,353 |
Total Liabilities and Equity | 243,752 | 247,137 |
Related Party [Member] | ||
Current assets: | ||
Due from related parties | $ 203 | $ 388 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 2,810,000 | 2,810,000 |
Common stock, shares outstanding | 1,840,500 | 1,901,000 |
Treasury stock, shares | 969,500 | 909,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Realized loss on derivative instruments, net | $ 0 | $ (5,888) | $ (566) | $ (9,707) |
Unrealized gain (loss) on derivative instruments, net | 0 | 2,933 | 980 | (4,206) |
Other income | 0 | 0 | 38 | 29 |
Total revenues | 29,607 | 35,492 | 52,257 | 61,423 |
Costs and expenses: | ||||
Oil and gas production | 7,718 | 7,317 | 13,273 | 13,877 |
Production and ad valorem taxes | 1,444 | 1,895 | 3,863 | 4,054 |
Field service | 3,367 | 3,335 | 6,534 | 6,055 |
Depreciation, depletion and amortization | 7,511 | 6,852 | 13,933 | 13,860 |
Accretion of discount on asset retirement obligations | 184 | 169 | 367 | 339 |
General and administrative | 2,270 | 2,418 | 5,372 | 9,090 |
Total costs and expenses | 22,494 | 21,986 | 47,275 | 47,275 |
Gain on sale and exchange of assets | 6,053 | 845 | 6,104 | 14,836 |
Income from operations | 13,166 | 14,351 | 15,019 | 28,984 |
Other income (expense) | ||||
Interest expense | (113) | (150) | (295) | (499) |
Interest income | 59 | 0 | 173 | 0 |
Income before income taxes | 13,112 | 14,201 | 14,897 | 28,485 |
Income tax provision | 3,022 | 3,218 | 3,397 | 6,360 |
Net income | $ 10,090 | $ 10,983 | $ 11,500 | $ 22,125 |
Net income per share attributable to common stockholders: Basic | $ 5.35 | $ 5.57 | $ 6.14 | $ 11.18 |
Net income per share attributable to common stockholders: Diluted | $ 3.82 | $ 4.02 | $ 4.37 | $ 8.08 |
Weighted average shares outstanding: Basic | 1,885,684 | 1,972,979 | 1,871,474 | 1,979,690 |
Weighted average shares outstanding: Diluted | 2,643,952 | 2,730,164 | 2,629,771 | 2,736,569 |
Oil Sales [Member] | ||||
Revenues: | ||||
Oil, gas and service income | $ 20,968 | $ 25,838 | $ 35,546 | $ 52,143 |
Natural gas [Member] | ||||
Revenues: | ||||
Oil, gas and service income | 1,228 | 4,657 | 2,980 | 8,403 |
Natural gas liquids [Member] | ||||
Revenues: | ||||
Oil, gas and service income | 2,780 | 4,422 | 5,174 | 8,273 |
Field service [Member] | ||||
Revenues: | ||||
Oil, gas and service income | $ 4,631 | $ 3,530 | $ 8,105 | $ 6,488 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total Stockholders' Equity – PrimeEnergy [Member] | Shares Outstanding [Member] |
Balance at Dec. 31, 2021 | $ 281 | $ 7,555 | $ 128,902 | $ (37,647) | $ 99,091 | ||
Balance, shares at Dec. 31, 2021 | 1,992,077 | ||||||
Purchase of treasury stock | (833) | 833 | |||||
Purchase of treasury stock, shares | (11,188) | ||||||
Net Income | 11,142 | 11,142 | |||||
Balance at Mar. 31, 2022 | 281 | 7,555 | 140,044 | (38,480) | 109,400 | ||
Balance, shares at Mar. 31, 2022 | 1,980,889 | ||||||
Balance at Dec. 31, 2021 | 281 | 7,555 | 128,902 | (37,647) | 99,091 | ||
Balance, shares at Dec. 31, 2021 | 1,992,077 | ||||||
Net Income | $ 22,125 | ||||||
Balance at Jun. 30, 2022 | 281 | 7,555 | 151,027 | (40,834) | 118,029 | ||
Balance, shares at Jun. 30, 2022 | 1,952,645 | ||||||
Balance at Mar. 31, 2022 | 281 | 7,555 | 140,044 | (38,480) | 109,400 | ||
Balance, shares at Mar. 31, 2022 | 1,980,889 | ||||||
Purchase of treasury stock | (2,354) | (2,354) | |||||
Purchase of treasury stock, shares | (28,244) | ||||||
Net Income | 10,983 | 10,983 | 10,983 | ||||
Balance at Jun. 30, 2022 | 281 | 7,555 | 151,027 | (40,834) | 118,029 | ||
Balance, shares at Jun. 30, 2022 | 1,952,645 | ||||||
Balance at Dec. 31, 2022 | 281 | 7,555 | 177,566 | (45,049) | 140,353 | ||
Balance, shares at Dec. 31, 2022 | 1,901,000 | ||||||
Purchase of treasury stock | (2,748) | (2,748) | |||||
Purchase of treasury stock, shares | (31,440) | ||||||
Net Income | 1,410 | 1,410 | |||||
Balance at Mar. 31, 2023 | 281 | 7,555 | 178,976 | (47,797) | 139,015 | ||
Balance, shares at Mar. 31, 2023 | 1,869,560 | ||||||
Balance at Dec. 31, 2022 | 281 | 7,555 | 177,566 | (45,049) | 140,353 | ||
Balance, shares at Dec. 31, 2022 | 1,901,000 | ||||||
Net Income | 11,500 | ||||||
Balance at Jun. 30, 2023 | 281 | 7,555 | 189,066 | (50,413) | 146,489 | ||
Balance, shares at Jun. 30, 2023 | 1,840,500 | ||||||
Balance at Mar. 31, 2023 | 281 | 7,555 | 178,976 | (47,797) | 139,015 | ||
Balance, shares at Mar. 31, 2023 | 1,869,560 | ||||||
Purchase of treasury stock | (2,616) | (2,616) | |||||
Purchase of treasury stock, shares | (29,060) | ||||||
Net Income | $ 10,090 | 10,090 | 10,090 | ||||
Balance at Jun. 30, 2023 | $ 281 | $ 7,555 | $ 189,066 | $ (50,413) | $ 146,489 | ||
Balance, shares at Jun. 30, 2023 | 1,840,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 11,500 | $ 22,125 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion on discounted liabilities | 13,933 | 13,860 |
Gain on sale and exchange of assets | (6,104) | (14,836) |
Accretion of discount on asset retirement obligations | 367 | 339 |
Unrealized (gain) loss on derivative instruments, net | (980) | 4,206 |
Deferred income taxes | 2,571 | 6,285 |
Changes in assets and liabilities: | ||
Accounts receivable | (14,641) | (3,443) |
Due from related parties | 185 | 0 |
Due to related parties | 0 | (40) |
Prepaids obligations | 27,571 | 251 |
Accounts payable | 5,548 | (927) |
Accrued liabilities | (4,650) | (340) |
Right-of-use and other assets | 217 | 0 |
Other long-term liabilities | (85) | 0 |
Net Cash Provided by Operating Activities | 35,432 | 27,480 |
Cash Flows from Investing Activities: | ||
Capital expenditures, including exploration expense | (47,017) | (2,409) |
Proceeds from sale of properties and equipment | 6,459 | 14,836 |
Net Cash Provided by (Used in) Investing Activities | (40,558) | 12,427 |
Cash Flows from Financing Activities: | ||
Purchase of stock for treasury | (5,364) | (3,187) |
Proceeds from long-term bank debt and other long-term obligations | 4,000 | 0 |
Repayment of long-term bank debt and other long-term obligations | (15,000) | (36,000) |
Net Cash Used in Financing Activities | (16,364) | (39,187) |
Net (Decrease) Increase in Cash and Cash Equivalents | (21,490) | 720 |
Cash and Cash Equivalents at the Beginning of the Period | 26,543 | 10,347 |
Cash and Cash Equivalents at the End of the Period | 5,053 | 11,067 |
Supplemental Disclosures: | ||
Income taxes paid | 9,000 | 75 |
Interest paid | $ 337 | $ 481 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation: The accompanying consolidated financial statements of PrimeEnergy Resources Corporation (“PrimeEnergy” or the “Company”) have not been audited by independent public accountants. Pursuant to applicable Securities and Exchange Commission (“SEC”) rules and regulations, the accompanying interim financial statements do not include all disclosures presented in annual financial statements and the reader should refer to the Company’s Form 10-K As of June 30, 2023, PrimeEnergy’s significant accounting policies are consistent with those discussed in Note 1—Description of Operations and Significant Accounting Policies of its consolidated financial statements contained in PrimeEnergy’s Annual Report on Form 10-K |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | (2) Acquisitions and Dispositions 2023 Transactions : In the first quarter of 2023, the Company sold 7.8 surface acres in Midland County, Texas receiving gross proceeds of $436,050 and recognizing a gain of $47,000. In the second quarter of 2023, the Company acquired 55 net acres in the South Stiles area of Reagan County, Texas for $605,000 and in a separate agreement also in Reagan County, the Company sold 320 non-core In July 2023, the Company sold a non-core 2022 Transactions : In the first quarter of 2022, the Company sold 1,809 net leasehold acres in Reagan and Midland Counties, Texas through two separate transactions receiving gross proceeds of $14.0 million. In the second quarter of 2022, the Company sold 241 net acres in Canadian County, Oklahoma for $845,000. |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Information | (3) Additional Balance Sheet Information: Certain balance sheet amounts are comprised of the following: (Thousands of dollars) June 30, 2023 December 31, Accounts Receivable: Joint interest billing $ 1,793 $ 1,806 Trade receivables 2,170 1,762 Oil and gas sales 17,137 8,894 Other 6,025 21 27,125 12,483 Less: Allowance for doubtful accounts (337 ) (336 ) Total $ 26,788 $ 12,147 Accounts Payable: Trade $ 10,945 $ 5,142 Royalty and other owners 3,512 3,600 Partner advances 1,111 1,111 Other 1,431 1,598 Total $ 16,999 $ 11,451 (Thousands of dollars) June 30, 2023 December 31, Accrued Liabilities: Compensation and related expenses $ 4,966 $ 9,743 Property costs 15,408 6,413 Taxes 486 9,352 Other 240 242 Total $ 21,100 $ 25,750 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (4) Long-Term Debt: Bank Debt: The Company maintains a revolving corporate credit facility (the “Credit Facility”) with a group of financial institutions with aggregate loan commitments of $ million, subject to a borrowing base that is determined semi-annually, with a maturity date of . As of December 31, 2022, the borrowing base was $ million and the Company had $ million outstanding borrowings under the Credit Facility. The Credit Facility requires the Company to maintain a minimum current ratio and total indebtedness to EBITDAX (earnings before depreciation, depletion, amortization, taxes, interest expense and exploration costs) ratio, and places restrictions on the payment of dividends, the amount of treasury stock the Company may purchase, and commodity hedge agreements. As of June 30 % and (c) Adjusted Term SOFR (secured overnight financing rate as administered by the Federal Reserve Bank of New York) for a one-month tenor in effect on such day plus %, or a Term SOFR. Both options are subject to an additional margin, determined based upon the utilization of the borrowing base then in effect, ranging from % to % per annum. The Company also pays commitment fees on undrawn amounts under the Credit Facility of % per annum. Borrowings under the Credit Facility are secured by substantially all of the Company’s oil and gas properties. Effective January 20, 2023, in lieu of a formal amendment, a borrowing base letter authorized by all lenders and Prime of the 2022 Credit Agreement resulted in an adjustment to decrease the amount of the Borrowing Base available from $ million to $ million until such time as the next redetermination date as required by the agreement. As of June 30, 2023, the borrowing base was $ million and the Company had outstanding borrowings under the Credit Facility. Effective July 24, 2023 the borrowing base was increased to $ million and as of August 1 4 no outstanding borrowings under the Credit Facility. |
Other Long-Term Obligations and
Other Long-Term Obligations and Commitments | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Other Long-Term Obligations and Commitments | (5) Other Long-Term Obligations and Commitments: Operating Leases: The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Lease assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. 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 7.82%. Certain leases may contain variable costs above the minimum required payments and are not included in the right-of-use assets or liabilities. Leases may include renewal, purchase or termination options that can extend or shorten the term of the lease. The exercise of those options is at the Company’s sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of less than 12 months are not recorded on the balance sheet. Operating lease costs for the six months ended June 30, 2023 and 2022 were $347 thousand and $306 thousand, respectively. Cash payments included in the operating lease cost for the six months ended June 30, 2023 and 2022 were $365 thousand and $324 thousand, respectively. The weighted-average remaining operating lease terms as of June 30, 2023 and 2022 were 8.18 months and 9 months, respectively. The Company acquired and amended certain leases for office space in Texas providing for payments of $374,000 in 2023, $275,000 in 2024 and $45,000 in 2025. Rent expense for office space for the six months ended June 30, 2023 and 2022 was $346,000 and $392,000, respectively. The payment schedule for the Company’s operating lease obligations as of June 30, 2023 is as follows: (Thousands of dollars) Operating 2023 $ 374 2024 275 2025 45 Total undiscounted lease payments $ 694 Less: Amount associated with discounting (58 ) Total net operating lease liabilities $ 636 Less: Current portion included in current portion of asset retirement and other long-term obligations 520 Non-current $ 116 Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the six months ended June 30, 2023 is as follows: (Thousands of dollars) June 30, Asset retirement obligation at December 31, 2022 $ 15,443 Additions 16 Liabilities settled (970 ) Accretion of discount 367 Asset retirement obligation at June 30, 2023 $ 14,856 Less current portion of asset retirement obligations 1,101 Asset retirement obligations, long-term $ 13,755 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 compliance with laws and regulations, which have not been material to the Company’s results of operations. From time to time, the Company is party to certain legal actions arising in the ordinary course of business. While |
Stock Options and Other Compens
Stock Options and Other Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Other Compensation | (7) Stock Options and Other Compensation: In May 1989, non-statutory |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (8) Related Party Transactions: Amounts due to or from related parties primarily represent receipts or expenses, related to oil and gas properties, collected or paid by the Company as agent for the joint venture partners, which may include members of the Company’s Board of Directors. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | (9) Financial Instruments Fair Value Measurements: Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The fair values of the Company’s interest rate swaps, natural gas and crude oil price collars and swaps are designated as Level 3. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022: June 30, 2023 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — December 31, 2022 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 210 $ 210 Total assets $ — $ — $ 210 $ 210 Liabilities Commodity derivative contracts $ — $ — $ (1,190 ) $ (1,190 ) Total liabilities $ — $ — $ (1,190 ) $ (980 ) 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 six months ended June 30, 2023. (Thousands of dollars) Net Liabilities – December 31, 2022 $ (980 ) Total realized and unrealized gains (losses): Included 414 Purchases, sales, issuances and settlements 566 Net Liabilities — June 30, 2023 $ — (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 June 30, 2023 and December 31, 2022: Fair Value (Thousands of dollars) Balance Sheet Location June 30, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contract Derivative asset $ — $ 162 Natural gas commodity contract Derivative asset — 48 Total $ — $ 210 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability $ — $ (931 ) Natural gas commodity contracts Derivative liability — (259 ) Total $ — $ (1,190 ) Total derivative instruments $ — $ (980 ) The following tab l Amount of gain/loss (Thousands of dollars) Location of gain/loss recognized in income 2023 2022 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized gain (loss) on derivative 211 (966 ) Crude oil commodity contracts Unrealized gain (loss) on derivative 769 (3,240 ) Natural gas commodity contracts Realized gain (loss) on derivative instruments, 24 (1,986 ) Crude oil commodity contracts Realized loss on derivative instruments, net (590 ) (7,721 ) $ 414 $ (13,913 ) |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (10) Earnings Per Share: Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. The following reconciles amounts reported in the financial statements: Six Months Ended June 30, 2023 2022 Net Weighted Per Net Weighted Per Basic $ 11,500 1,871,474 $ 6.14 $ 22,125 1,979,690 $ 11.18 Effect of dilutive securities: Options — 758,297 — 756,879 Diluted $ 11,500 2,629,771 $ 4.37 $ 22,125 2,736,569 $ 8.08 Three Months Ended June 30, 2023 2022 Net Weighted Per Net Weighted Per Basic $ 10,090 1,885,684 $ 5.35 $ 10,983 1,972,979 $ 5.57 Effect of dilutive securities: Options — 758,268 — 757,185 Diluted $ 10,090 2,643,952 $ 3.82 $ 10,983 2,730,164 $ 4.02 |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Balance Sheet Amounts | Certain balance sheet amounts are comprised of the following: (Thousands of dollars) June 30, 2023 December 31, Accounts Receivable: Joint interest billing $ 1,793 $ 1,806 Trade receivables 2,170 1,762 Oil and gas sales 17,137 8,894 Other 6,025 21 27,125 12,483 Less: Allowance for doubtful accounts (337 ) (336 ) Total $ 26,788 $ 12,147 Accounts Payable: Trade $ 10,945 $ 5,142 Royalty and other owners 3,512 3,600 Partner advances 1,111 1,111 Other 1,431 1,598 Total $ 16,999 $ 11,451 (Thousands of dollars) June 30, 2023 December 31, Accrued Liabilities: Compensation and related expenses $ 4,966 $ 9,743 Property costs 15,408 6,413 Taxes 486 9,352 Other 240 242 Total $ 21,100 $ 25,750 |
Other Long-Term Obligations a_2
Other Long-Term Obligations and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Operating and Financing Lease Obligation | The payment schedule for the Company’s operating lease obligations as of June 30, 2023 is as follows: (Thousands of dollars) Operating 2023 $ 374 2024 275 2025 45 Total undiscounted lease payments $ 694 Less: Amount associated with discounting (58 ) Total net operating lease liabilities $ 636 Less: Current portion included in current portion of asset retirement and other long-term obligations 520 Non-current $ 116 |
Reconciliation of Liability for Plugging and Abandonment Costs | A reconciliation of the liability for plugging and abandonment costs for the six months ended June 30, 2023 is as follows: (Thousands of dollars) June 30, Asset retirement obligation at December 31, 2022 $ 15,443 Additions 16 Liabilities settled (970 ) Accretion of discount 367 Asset retirement obligation at June 30, 2023 $ 14,856 Less current portion of asset retirement obligations 1,101 Asset retirement obligations, long-term $ 13,755 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022: June 30, 2023 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — December 31, 2022 Quoted Prices in Significant Significant Balance at (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 210 $ 210 Total assets $ — $ — $ 210 $ 210 Liabilities Commodity derivative contracts $ — $ — $ (1,190 ) $ (1,190 ) Total liabilities $ — $ — $ (1,190 ) $ (980 ) |
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 six months ended June 30, 2023. (Thousands of dollars) Net Liabilities – December 31, 2022 $ (980 ) Total realized and unrealized gains (losses): Included 414 Purchases, sales, issuances and settlements 566 Net Liabilities — June 30, 2023 $ — (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 June 30, 2023 and December 31, 2022: Fair Value (Thousands of dollars) Balance Sheet Location June 30, December 31, Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contract Derivative asset $ — $ 162 Natural gas commodity contract Derivative asset — 48 Total $ — $ 210 Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability $ — $ (931 ) Natural gas commodity contracts Derivative liability — (259 ) Total $ — $ (1,190 ) Total derivative instruments $ — $ (980 ) |
Effect of Derivative Instruments on Consolidated Statements of Operations | The following tab l Amount of gain/loss (Thousands of dollars) Location of gain/loss recognized in income 2023 2022 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized gain (loss) on derivative 211 (966 ) Crude oil commodity contracts Unrealized gain (loss) on derivative 769 (3,240 ) Natural gas commodity contracts Realized gain (loss) on derivative instruments, 24 (1,986 ) Crude oil commodity contracts Realized loss on derivative instruments, net (590 ) (7,721 ) $ 414 $ (13,913 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following reconciles amounts reported in the financial statements: Six Months Ended June 30, 2023 2022 Net Weighted Per Net Weighted Per Basic $ 11,500 1,871,474 $ 6.14 $ 22,125 1,979,690 $ 11.18 Effect of dilutive securities: Options — 758,297 — 756,879 Diluted $ 11,500 2,629,771 $ 4.37 $ 22,125 2,736,569 $ 8.08 Three Months Ended June 30, 2023 2022 Net Weighted Per Net Weighted Per Basic $ 10,090 1,885,684 $ 5.35 $ 10,983 1,972,979 $ 5.57 Effect of dilutive securities: Options — 758,268 — 757,185 Diluted $ 10,090 2,643,952 $ 3.82 $ 10,983 2,730,164 $ 4.02 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) a | Mar. 31, 2023 USD ($) a | Jun. 30, 2022 USD ($) a | Mar. 31, 2022 USD ($) a | |
OKLAHOMA [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ 845,000,000 | ||||
TEXAS [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of Area of Land | a | 55 | ||||
Number of acres sold | a | 320 | 7.8 | 1,809 | ||
Proceeds from Divestiture of Businesses | $ 436,050 | $ 14,000,000 | |||
Gain (Loss) on Disposition of Business | $ 47,000 | ||||
Payment to acquire land held for use | $ 605,000 | ||||
Proceeds from the sale of land held for use | $ 6,000,000 | ||||
TEXAS [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from the sale of land held for use | $ 899,000 | ||||
CANADA [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of acres sold | a | 241 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts Receivable: | ||
Joint interest billings | $ 1,793 | $ 1,806 |
Trade receivables | 2,170 | 1,762 |
Oil and gas sales | 17,137 | 8,894 |
Other | 6,025 | 21 |
Accounts Receivable, Gross | 27,125 | 12,483 |
Less: Allowance for doubtful accounts | (337) | (336) |
Total | 26,788 | 12,147 |
Accounts Payable: | ||
Trade | 10,945 | 5,142 |
Royalty and other owners | 3,512 | 3,600 |
Partner advances | 1,111 | 1,111 |
Other | 1,431 | 1,598 |
Total | 16,999 | 11,451 |
Accrued Liabilities: | ||
Compensation and related expenses | 4,966 | 9,743 |
Property costs | 15,408 | 6,413 |
Taxes | 486 | 9,352 |
Other | 240 | 242 |
Total | $ 21,100 | $ 25,750 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jan. 20, 2023 | Jun. 30, 2023 | Aug. 14, 2023 | Jul. 24, 2023 | Dec. 31, 2022 | |
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||
Maximum [Member] | 2022 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Decrease in Borrowing Base | $ 75,000 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Minimum [Member] | 2022 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Decrease in Borrowing Base | $ 60,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility borrowing capacity | $ 300,000 | ||||
Line of credit facility, expiration date | Jun. 01, 2026 | ||||
Long-term Line of Credit | $ 11,000 | ||||
Outstanding borrowings | $ 0 | ||||
Debt Instrument, Face Amount | $ 60,000 | $ 75,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 0 | ||||
Debt Instrument, Face Amount | $ 65,000 | ||||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% |
Other Long-Term Obligations a_3
Other Long-Term Obligations and Commitments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Weighted-average discount rate | 7.82% | |
Operating lease weighted-average remaining lease term | 8 months 5 days | 9 months |
Operating lease payments | $ 365,000 | $ 324,000 |
Operating lease cost | $ 347,000 | 306,000 |
Lease period description | The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Lease assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. | |
Rent Expenses | $ 346,000 | $ 392,000 |
Lease Payments Due Next year | 374,000 | |
Lease payments due next two years | 275,000 | |
Lease payments due next third years | $ 45,000 |
Other Long-Term Obligations a_4
Other Long-Term Obligations and Commitments - Summary of Operating and Financing Lease Obligation (Detail) | Jun. 30, 2023 USD ($) |
2023 | $ 374,000 |
2024 | 275,000 |
2025 | 45,000 |
Total undiscounted lease payments | 694,000 |
Less: Amount associated with discounting | (58,000) |
Total net operating lease liabilities | 636,000 |
Less: Current portion included in current portion of asset retirement and other long-term obligations | 520,000 |
Non-current portion included in other long-term obligations | $ 116,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total net operating lease liabilities |
Other Long-Term Obligations a_5
Other Long-Term Obligations and Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Asset retirement obligation | $ 15,443 | ||||
Additions | 16 | ||||
Liabilities settled | (970) | ||||
Accretion of discount | $ 184 | $ 169 | 367 | $ 339 | |
Asset retirement obligation | 14,856 | 14,856 | |||
Less current portion of asset retirement obligations | 1,101 | 1,101 | |||
Asset retirement obligations, long-term | $ 13,755 | $ 13,755 | $ 13,525 |
Stock Options and Other Compe_2
Stock Options and Other Compensation - Additional Information (Detail) | Jun. 30, 2023 shares | Dec. 31, 2022 $ / shares shares | May 31, 1989 Officers |
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 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average exercise price | $ / shares | $ 1.25 | ||
Nonstatutory Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable, shares | shares | 767,500 | 767,500 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative assets | $ 0 | $ 210 |
Liabilities | ||
Derivative liabilities | 0 | (1,190) |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 210 |
Liabilities | ||
Derivative liabilities | 0 | (980) |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 210 |
Liabilities | ||
Derivative liabilities | 0 | (1,190) |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 210 |
Liabilities | ||
Derivative liabilities | 0 | (1,190) |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 0 | 210 |
Liabilities | ||
Derivative liabilities | $ 0 | $ (1,190) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | ||
Total realized and unrealized (gains) losses: | ||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Liabilities at beginning of period | $ (980) | |
Total realized and unrealized (gains) losses: | ||
Included in earnings | 414 | [1] |
Purchases, sales, issuances and settlements | 566 | |
Net Liabilities end of period | $ 0 | |
[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 | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 210 |
Derivative liabilities | 0 | (1,190) |
Total derivative instruments | 0 | (980) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative asset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 48 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | (259) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative asset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 162 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ (931) |
Financial Instruments - Effec_2
Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ 414 | $ (13,913) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Unrealized gain (loss) on derivative instruments, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ 211 | $ (966) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Realized gain (loss) on derivative instruments, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | 24 | (1,986) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Unrealized gain (loss) on derivative instruments, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | 769 | (3,240) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized loss on derivative instruments, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (590) | $ (7,721) |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net Income, Basic | $ 10,090 | $ 10,983 | $ 11,500 | $ 22,125 |
Net Income, Diluted | $ 10,090 | $ 10,983 | $ 11,500 | $ 22,125 |
Weighted Average Number of Shares Outstanding, Basic | 1,885,684 | 1,972,979 | 1,871,474 | 1,979,690 |
Weighted Average Number of Shares Outstanding, Options | 758,268 | 757,185 | 758,297 | 756,879 |
Weighted Average Number of Shares Outstanding, Diluted | 2,643,952 | 2,730,164 | 2,629,771 | 2,736,569 |
Per Share Amount, Basic | $ 5.35 | $ 5.57 | $ 6.14 | $ 11.18 |
Per Share Amount, Diluted | $ 3.82 | $ 4.02 | $ 4.37 | $ 8.08 |