v3.26.1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2026
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, 2026December 31, 2025
(In thousands)
Oil, natural gas and NGL sales$58,580 $31,037 
Joint interest accounts receivable11,323 6,291 
Allowance for credit losses(739)(601)
Other accounts receivable5 4,318 
Total accounts receivable, net
$69,169 $41,045 
As of December 31, 2024, the Company had accounts receivables, net from oil, natural gas and NGL sales of $33.6 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. Allowances for credit losses are recorded as reductions to the carrying values of the accounts receivable included in the Company’s condensed consolidated balance sheets and are recorded in administrative costs in our 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, 2026December 31, 2025
(In thousands)
Furniture, fixtures and other
$8,515 $7,583 
Land
18,531 17,983 
Other property and equipment
$27,046 $25,566 
Accumulated depreciation and amortization
(3,841)(3,694)
Total other property and equipment, net
$23,205 $21,872 
Other Non-Current Assets, net
Other non-current assets, net consisted of the following:
June 30, 2026December 31, 2025
(In thousands)
Deferred financing costs, net(1)
$3,490 $4,064 
Right-of-use assets3,019 3,323 
Prepaid capital expenditures661 2,116 
Deposits
4,576 4,846 
Other1,635 1,550 
Total other non-current assets, net$13,381 $15,899 
_____________________
(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, 2026December 31, 2025
(In thousands)
Accrued capital expenditures$32,188 $12,125 
Accrued lease operating expenses11,370 7,160 
Accrued general and administrative costs6,934 11,403 
Accrued inventory
— 1,123 
Accrued ad valorem tax2,605 5,277 
Other accrued expenditures1,434 602 
Total accrued liabilities$54,531 $37,690 
Other Current Liabilities
Other current liabilities consisted of the following:
June 30, 2026December 31, 2025
(In thousands)
Advances from joint interest owners$14,684 $4,451 
Income taxes payable— 22,175 
Current ARO liabilities4,213 3,455 
Current portion of earnout payments3,875 1,040 
Other1,527 2,968 
Total other current liabilities
$24,299 $34,089 
Asset Retirement Obligations
Components of the changes in ARO for the six months ended June 30, 2026, and the year ended December 31, 2025, are shown below:
June 30, 2026December 31, 2025
(In thousands)
ARO, beginning balance$63,432 $35,268 
Liabilities incurred66 143 
Liabilities assumed in acquisitions— 19,284 
Liabilities removed upon sale
(71)(88)
Revision of estimated obligations— 7,724 
Liability settlements
(2,074)(2,591)
Accretion2,502 3,692 
ARO, ending balance$63,855 $63,432 
Less: current ARO(1)
(4,213)(3,455)
ARO, long-term$59,642 $59,977 
_____________________
(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, net disaggregated by product:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Oil and natural gas sales:
Oil sales, net
$182,249 $85,921 $307,217 $184,513 
Natural gas sales, net
(13,359)(874)(19,718)710 
NGL sales, net
(3,040)347 (7,768)2,628 
Total oil and natural gas sales, net(1)
$165,850 $85,394 $279,731 $187,851 
_____________________
(1) The Company's oil, natural gas and NGL sales are presented net of GP&T costs. These costs, related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.
Recent Accounting Pronouncements
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.