v3.25.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Significant Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include, but are not limited to, estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, accrued capital expenditures and operating expenses, ARO, the fair value determination of acquired assets and assumed liabilities, certain tax accruals and the fair value of derivatives.
Accounts Receivable, net
Accounts receivable, net is summarized below:
June 30, 2025December 31, 2024
(In thousands)
Oil, natural gas and NGL sales$29,566 $33,632 
Joint interest accounts receivable4,464 9,626 
Allowance for credit losses(70)(62)
Other accounts receivable1,335 1,215 
Total accounts receivable, net
$35,295 $44,411 
As of December 31, 2023, the Company had accounts receivables, net from oil, natural gas and NGL sales of $31.1 million.
The Company estimates uncollectible amounts based on the length of time that the accounts receivable has been outstanding, historical collection experience and current and future economic and market conditions, if failure to collect is expected to occur. Allowances for credit losses are recorded as reductions to the carrying values of the accounts receivable included in the accompanying condensed consolidated balance sheets and are recorded in administrative costs in our accompanying condensed consolidated statements of operations if failure to collect an estimable portion is determined to be probable.
Other Property and Equipment, net
Other property and equipment, net is summarized below:
June 30, 2025December 31, 2024
(In thousands)
Midstream property and equipment
$21,631 $11,297 
Furniture, fixtures and other
6,351 5,882 
Land
16,673 16,673 
$44,655 $33,852 
Accumulated depreciation and amortization
(3,911)(3,375)
Total other property and equipment, net
$40,744 $30,477 
Other Non-Current Assets, net
Other non-current assets, net consisted of the following:
June 30, 2025December 31, 2024
(In thousands)
Deferred financing costs, net (1)
$4,482 $4,949 
Right of use assets2,886 1,398 
Prepaid capital expenditures4,840 2,124 
Deposits
2,423 2,168 
Other966 67 
Total other non-current assets, net$15,597 $10,706 
_____________________
(1)Deferred financing costs, net reflects costs associated with the Company's Credit Facility which are amortized over the term of the Credit Facility.
Accrued Liabilities
Accrued liabilities consisted of the following:
June 30, 2025December 31, 2024
(In thousands)
Accrued capital expenditures$16,859 $10,441 
Accrued lease operating expenses4,257 7,676 
Accrued general and administrative costs5,681 8,123 
Accrued inventory
— 1,709 
Accrued ad valorem tax2,560 5,396 
Other accrued expenditures1,841 573 
Total accrued liabilities$31,198 $33,918 
Other Current Liabilities
Other current liabilities consisted of the following:
June 30, 2025December 31, 2024
(In thousands)
Advances from joint interest owners$2,465 $11,278 
Income taxes payable5,351 5,233 
Current ARO liabilities2,123 2,562 
Other1,596 1,050 
Total other current liabilities
$11,535 $20,123 
Asset Retirement Obligations
Components of the changes in ARO for the six months ended June 30, 2025, and the year ended December 31, 2024, are shown below:
June 30, 2025December 31, 2024
(In thousands)
ARO, beginning balance$35,268 $23,044 
Liabilities incurred13 78 
Liabilities assumed in acquisitions— 9,727 
Revision of estimated obligations— 1,856 
Liability settlements and disposals(926)(2,291)
Accretion1,360 2,854 
ARO, ending balance$35,715 $35,268 
Less: current ARO (1)
(2,123)(2,562)
ARO, long-term$33,592 $32,706 
_____________________
(1)Current ARO is included within other current liabilities in our accompanying condensed consolidated balance sheets.
Revenue Recognition
The following table presents oil and natural gas sales disaggregated by product:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(In thousands)
Oil and natural gas sales:
Oil$85,921 $106,353 $184,513 $203,345 
Natural gas
(874)(977)710 (294)
NGLs
347 (33)2,628 1,716 
Total oil and natural gas sales, net (1)
$85,394 $105,343 $187,851 $204,767 
_____________________
(1) The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this standard provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company does not expect this standard to have a material impact on our disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40) Reporting Comprehensive Income-Expense Disaggregation Disclosures, which broadens the disclosures required for certain costs and expenses in the Company’s annual and interim consolidated financial statements. This ASU is effective prospectively for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact to disclosures related to our annual report for fiscal year 2027.