Operating Segments (Tables)

6 Months Ended

Jun. 30, 2026

Segment Reporting [Abstract]

Schedule of segment financial information

Segment activity for the six months ended June 30, 2026 and 2025 is as follows:


		Upstream			Gas Gathering			Total
As of and for the six months ended June 30, 2026
Operating revenue
Natural gas		$	17,170,019		$	—		$	17,170,019
Natural gas liquids			2,460,190			—			2,460,190
Oil and condensate			21,232,717			—			21,232,717
Gathering and compression fees			—			2,994,517			2,994,517
Intersegment gathering and compression fees			—			807,521			807,521
			40,862,926			3,802,038			44,664,964

Reconciliation of operating revenue
Elimination of intersegment revenues									(807,521)
Total consolidated operating revenue⁽¹⁾⁽³⁾									43,857,443

Operating costs and expenses
Gathering, transportation, and compression			5,100,696			—			5,100,696
Other lease operating expense			8,424,810			—			8,424,810
Gathering system operating expenses			—			1,102,921			1,102,921
Intersegment other lease operating expense			807,521			—			807,521
Gain on sale of oil and gas properties			(4,174,368)			—			(4,174,368)
Depletion, depreciation, amortization and accretion			5,424,422			382,024			5,806,446
Segment operating income		$	25,279,845		$	2,317,093		$	26,789,417

Reconciliation of segment operating income
Salary expense									(4,967,377)
Stock based compensation									(1,095,054)
Transaction costs									(273,952)
Other general and administrative									(2,075,579)
Elimination of intersegment other lease operating expenses									807,521
Interest income									70,327
Interest expense									(1,818,848)
Gain on derivative contracts									(6,684,358)
Other income									(192,230)
Net income before income tax expense								$	10,559,867

Capital expenditures⁽²⁾		$	13,480,492		$	(111,600)		$	13,368,892
Segment assets⁽³⁾		$	190,167,069		$	5,579,113		$	195,746,182

Total segment assets reconciled to consolidated amounts are as follows:
Total segment assets								$	195,746,182
Current assets, net									33,798,287
Fair value of derivatives, long term									33,114
Other property and equipment									5,268,203
Operating lease right-of-use asset									371,181
Credit facility fees									673,754
Restricted cash									553,000
Total assets								$	236,443,721


		Upstream			Gas Gathering			Total
As of and for the six months ended June 30, 2025
Operating revenue
Natural gas		$	17,523,917		$	—		$	17,523,917
Natural gas liquids			532,270			—			532,270
Oil and condensate			5,994,331			—			5,994,331
Gathering and compression fees			—			3,737,355			3,737,355
Intersegment gathering and compression fees			—			1,064,223			1,064,223
			24,050,518			4,801,578			28,852,096

Reconciliation of operating revenue
Elimination of intersegment revenues									(1,064,223)
Total consolidated operating revenue⁽¹⁾⁽³⁾									27,787,873

Operating costs and expenses
Gathering, transportation, and compression			3,978,175			—			3,978,175
Other lease operating expense			1,240,508			—			1,240,508
Gathering system operating expenses			—			1,166,446			1,166,446
Intersegment other lease operating expense			1,064,223			—			1,064,223
Impairment			2,676,669			—			2,676,669
Depletion, depreciation, amortization and accretion			6,065,544			611,967			6,677,511
Segment operating income		$	9,025,399		$	3,023,165		$	10,984,341

Reconciliation of segment operating income
Salary expense									(1,789,792)
Stock based compensation									(771,676)
Other general and administrative									(1,490,504)
Elimination of intersegment other lease operating expenses									1,064,223
Interest income									32,546
Interest expense									(32,117)
Loss on derivative contracts									1,111,693
Other income									(33,338)
Net income before income tax expense								$	9,075,376

Capital expenditures⁽²⁾		$	11,142,744		$	228,327		$	11,371,071
Segment assets⁽³⁾		$	99,073,244		$	6,358,460		$	105,431,704

Total segment assets reconciled to consolidated amounts are as follows:
Total segment assets								$	105,431,704
Current assets, net									16,533,328
Other property and equipment									883,319
Operating lease right-of-use asset									295,317
Restricted cash									470,000
Total assets								$	123,613,668

(1)

Segment operating revenue represents revenues generated from the operations of the segment. Inter-segment sales during the six months ended June 30, 2026 and 2025 have been eliminated upon consolidation. For the six months ended June 30, 2026, two purchasers each accounted for 10% or more of our total revenue: HF Sinclair (23%) and Firebird Energy (13%). For the six months ended June 30, 2025, three purchasers each accounted for 10% or more of our total revenue: Expand Energy Marketing (19%) and Ares Energy (18%) from the upstream segment and Williams (17%) from the gas gathering segment.

(2)

Capital expenditures for the Upstream segment consist primarily of the acquisition of properties, and the equipping, drilling, and completing of wells while Gas Gathering consists of expenditures relating to the expansion and completion of the gathering and compression facility.

(3)

Our upstream segment includes Canadian revenue and assets for the six months ended June 30, 2026 of $0.3 million and $7.0 million, respectively. Our upstream segment includes Canadian revenue and assets for the six months ended June 30, 2025 of $0.6 million and $7.9 million, respectively.


		Upstream			Gas Gathering			Total
As of and for the three months ended June 30, 2026
Operating revenue
Natural gas		$	3,767,497		$	—		$	3,767,497
Natural gas liquids			1,386,889			—			1,386,889
Oil and condensate			11,770,530			—			11,770,530
Gathering and compression fees			—			1,336,740			1,336,740
Intersegment gathering and compression fees			—			369,019			369,019
			16,924,916			1,705,759			18,630,675

Reconciliation of operating revenue
Elimination of intersegment revenues									(369,019)
Total consolidated operating revenue⁽¹⁾⁽³⁾									18,261,656

Operating costs and expenses
Gathering, transportation, and compression			2,354,275			—			2,354,275
Other lease operating expense			3,975,918			—			3,975,918
Gathering system operating expenses			—			508,475			508,475
Intersegment other lease operating expense			369,019			—			369,019
Gain on sale of oil and gas properties			(4,174,368)			—			(4,174,368)
Depletion, depreciation, amortization and accretion			2,633,029			171,078			2,804,107
Segment operating income		$	11,767,043		$	1,026,206		$	12,424,230

Reconciliation of segment operating income
Salary expense									(2,667,754)
Stock based compensation									(547,527)
Transaction costs									(202,532)
Other general and administrative									(997,060)
Elimination of intersegment other lease operating expenses									369,019
Interest income									24,785
Interest expense									(877,267)
Gain on derivative contracts									2,245,470
Other expense									(208,658)
Net income before income tax expense								$	9,562,706

Capital expenditures⁽²⁾		$	8,648,197		$	(164,581)		$	8,483,616


		Upstream			Gas Gathering			Total
As of and for the three months ended June 30, 2025
Operating revenue
Natural gas		$	6,910,344		$	—		$	6,910,344
Natural gas liquids			145,020			—			145,020
Oil and condensate			2,724,364			—			2,724,364
Gathering and compression fees			—			1,845,005			1,845,005
Intersegment gathering and compression fees			—			507,365			507,365
			9,779,728			2,352,370			12,132,098

Reconciliation of operating revenue
Elimination of intersegment revenues									(507,365)
Total consolidated operating revenue⁽¹⁾⁽³⁾									11,624,733

Operating costs and expenses
Gathering, transportation, and compression			1,522,390			—			1,522,390
Other lease operating expense			940,395			—			940,395
Gathering system operating expenses			—			613,795			613,795
Intersegment other lease operating expense			507,365			—			507,365
Impairment			2,670,000			—			2,670,000
Depletion, depreciation, amortization and accretion			2,872,103			329,551			3,201,654
Segment operating income		$	1,267,475		$	1,409,024		$	2,169,134

Reconciliation of segment operating income
Salary expense									(1,079,670)
Stock based compensation									(385,838)
Other general and administrative									(382,208)
Elimination of intersegment other lease operating expenses									507,365
Interest income									17,247
Interest expense									(19,906)
Gain on derivative contracts									2,573,863
Other expense									(10,839)
Net income before income tax expense								$	3,389,148

Capital expenditures⁽²⁾		$	3,502,977		$	124,052		$	3,627,029

(1)

Segment operating revenue represents revenues generated from the operations of the segment. Inter-segment sales during the three months ended June 30, 2026 and 2025 have been eliminated upon consolidation. For the three months ended June 30, 2026, five purchasers each accounted for 10% or more of our total revenue: HF Sinclair (21%), Firebird Energy (18%), Wyoming Refining Company (16%), Western Gas (12%), from the upstream segment and Williams (10%) from the gas gathering segment. For the three months ended June 30, 2025, three purchasers each accounted for 10% or more of our total revenue: Expand Energy Marketing (23%) and Ares Energy (17%) from the upstream segment and Williams (19%) from the gas gathering segment.

(2)

Capital expenditures for the Upstream segment consist primarily of the acquisition of properties, and the equipping, drilling, and completing of wells while Gas Gathering consists of expenditures relating to the expansion and completion of the gathering and compression facility.

(3)

Our upstream segment includes Canadian revenue for the three months ended June 30, 2026 of $0.2 million. Our upstream segment includes Canadian revenue for the three months ended June 30, 2025 of $0.5 million.