Investment in Laramie Energy, LLC

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

As of March 31, 2022, we had a 46.0% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco counties, Colorado. The balance of our investment in Laramie Energy was zero as of March 31, 2022 and December 31, 2021.

Laramie Energy has a term loan agreement which provides a term loan secured by a lien on its natural gas and crude oil properties and related assets. As of March 31, 2022, the term loan had an outstanding balance of $126.4 million. Under the terms of the term loan, Laramie Energy is generally prohibited from making future cash distributions to its owners, including us, except for certain permitted tax distributions. Laramie Energy’s term loan matures on July 1, 2025.

Summarized financial information for Laramie Energy is as follows (in thousands):


	March 31, 2022		December 31, 2021
Current assets	$	75,414	$	68,779
Non-current assets	323,273		328,571
Current liabilities	67,239		107,976
Non-current liabilities	252,490		177,503


	Three Months Ended March 31,
		2022		2021
Natural gas and oil revenues		$	50,849	$	82,348
Income from operations		24,114		47,209
Net income (loss)		(32,900)		40,451

Laramie Energy’s net income (loss) includes (in thousands):


	Three Months Ended March 31,
		2022		2021

Depreciation, depletion, and amortization		$	5,709	$	6,984
Unrealized (gain) loss on derivative instruments		42,655		(549)