v3.25.1
Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt
Note 7 – Debt
Long-Term Debt
The following table summarizes the Company’s long-term debt for the periods presented:
 
    
Maturity Date
                      
(in thousands)
   
Earliest
Date
     
Latest

Date
     
Interest

Rate
(a)
     
March 31,
2025
    
December 31,
2024
  
Unsecured debt - Regulation D
      4/10/2025        3/10/2036        5.0% to 15.0%      $ 571,713     $ 497,823  
Unsecured debt - Regulation A
      4/10/2025        8/10/2027        9.0%        99,577       104,884  
Adamantium Securities
      1/10/2029        3/10/2036        13.0% to 16.5%        163,048       135,180  
Fortress Term Loans
      —         12/18/2027        Term SOFR + 7.10%        250,000       250,000  
           
 
 
    
 
 
  
Total outstanding debt
               1,084,338       987,887  
           
 
 
    
 
 
  
Less: Unamortized debt discount and issuance costs
(b)
               (97,967 )      (89,432 ) 
Less: Current portion of long-term debt
               (132,864 )      (103,240 ) 
           
 
 
    
 
 
  
Total long-term debt, net of current portion
             $ 853,507     $ 795,215  
           
 
 
    
 
 
  
 
(a)
Represents the contractual interest rate as of March 31, 2025.
(b)
Amortized into interest expense using the effective interest method. Write-offs of debt issuance costs associated with the redemption of bonds issued under the Company’s unregistered debt offerings are classified as loss on debt extinguishment in the condensed consolidated statements of operations.
Fortress Credit Agreement
As of March 31, 2025 and December 31, 2024, the Company had $250.0 million of aggregate principal outstanding (the “Fortress Term Loans”) under the secured credit agreement with Fortress Credit Corp. (the “Fortress Credit Agreement”). The
all-in
interest rate for the Fortress Term Loans was 11.4% at March 31, 2025. The Fortress Credit Agreement contains various customary covenants, including financial covenants that require the Company to maintain ratios around its maximum total secured leverage, minimum asset coverage, and working capital as of the last day of each calendar month or fiscal quarter, as the case may be. The Company has also entered into hedges covering at least 75% of the initially anticipated monthly production of crude oil from the Company’s proved developed reserves for a
36-month
period, pursuant to the terms of the Fortress Credit Agreement. See Note 6 – Derivatives. The Company was in compliance with all debt covenants as of March 31, 2025.
Interest Expense on Debt
The following table summarizes the total interest costs incurred on the Company’s debt:
 
    
Three Months Ended
March 31,
  
(in thousands)
   
2025
     
2024
  
Stated interest
    $ 33,008      $ 15,083  
Amortization of debt discount and debt issuance costs
      5,166        3,939  
  
 
 
     
 
 
  
Total interest cost
      38,174        19,022  
Capitalized interest
      (2,325 )       (2,101 ) 
  
 
 
     
 
 
  
Total interest expense, net
    $ 35,849      $ 16,921