In August 2026, the Company closed the previously announced acquisition of certain producing assets and leasehold interests in the Cherokee Play of the Mid-Continent region for $65.0 million, before customary purchase price adjustments, and three contingent earn-out payments of $2.0 million each, based on the average daily spot price for WTI crude oil exceeding certain price thresholds beginning July 1, 2026 and ending December 31, 2027. The Company funded the acquisition with cash on hand. This acquisition has been accounted for as an asset acquisition in accordance with ASC 805, Business Combinations. The fair value of the consideration paid by the Company and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on the Company’s books as of the date of closing. Determining the fair value of the assets acquired and liabilities assumed requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of oil and natural gas properties. The inputs and assumptions related to the oil and natural gas properties are categorized as Level 3 within the fair value hierarchy. The acquisition was effective May 1, 2026. See “Note 2—Fair Value Measurements” for additional information on the contingent earn-out payments.


Total Consideration
Cash paid	$	47,944

Allocation of Total Consideration
Assets
Oil and natural gas properties	$	56,484
Total assets acquired	$	56,484

Liabilities(1)
Accounts payable and accrued expenses	$	6,443
Contingent Consideration	2,097
Total liabilities assumed	8,540
Net Assets acquired and liabilities assumed	$	47,944