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Supplemental Information on Oil and Natural Gas Operations (Unaudited) (Tables) | 12 Months Ended
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Sep. 30, 2021
Extractive Industries [Abstract] |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | The following summarizes the costs incurred for oil and natural gas property acquisition, exploration and development activities for the years ended September 30, 2021 and 2020:
|  | Years Ended September 30,
|  | 2021 |  | 2020
|  | (In thousands)
Acquisition of properties |  |  |  |
Proved |  | $ | 74 |  |  | $ | 1,187 |
Unproved |  | 1,562 |  |  | 5,331 |
Exploration costs |  | 7,993 |  |  | 8,039 |
Development costs |  | 59,948 |  |  | 43,684 |
Total costs incurred |  | $ | 69,577 |  |  | $ | 58,241 |
Results of Operations for Oil and Gas Producing Activities Disclosure | The following table includes revenues and expenses associated with the Company's oil and natural gas producing activities. They do not include any allocation of the Company's interest costs or general corporate overhead. For the year ended September 30, 2020, they also do not include estimated corporate taxes since the Company was not a taxpaying entity for federal income tax purposes. Therefore, the following schedule is not necessarily indicative of the contribution of net earnings of the Company's oil and natural gas operations.
|  | Years Ended September 30,
|  | 2021 |  | 2020
|  | (In thousands)
Oil, natural gas and NGL sales |  | $ | 148,636 |  |  | $ | 73,133 |
Lease operating expenses |  | 21,975 |  |  | 20,243 |
Production and ad valorem taxes |  | 8,636 |  | 4,280
Exploration costs |  | 9,566 |  | 9,923
Depletion, accretion and amortization |  | 25,347 |  | 20,936
Results of operations |  | 83,112 |  |  | 17,751 |
Income tax expense (1) |  | (13,505) |  |  | — |
Results of operations, net of income tax expense |  | $ | 69,607 |  |  | $ | 17,751 |
_____________________________________________________ (1) Subsequent to the Closing Date of the Merger, the statutory combined federal and state tax rate of 21.59% is used. Prior to the Closing Date of the Merger and for the year ended September 30, 2020, the Company was a flow-through entity for federal income tax purposes. As such, no taxes are reflected here as taxable income was passed through to its members.
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The following table sets forth information for the years ended September 30, 2021 and 2020 with respect to changes in the Company’s proved (i.e. proved developed and undeveloped) reserves:
|  | Oil |  | Natural Gas |  | NGLs |  | Total
|  | (MBbl) |  | (MMcf) |  | (MBbl) |  | (MBoe)
September 30, 2019 |  | 37,159 |  |  | 40,991 |  |  | 10,812 |  |  | 54,803 |
Extensions and discoveries |  | 2,265 |  |  | 3,030 |  |  | 642 |  |  | 3,412 |
Revisions |  | (206) |  |  | 11,290 |  |  | (513) |  |  | 1,163 |
Production |  | (2,060) |  |  | (1,628) |  |  | (260) |  |  | (2,591) |
September 30, 2020 |  | 37,158 |  |  | 53,683 |  |  | 10,681 |  |  | 56,787 |
Extensions and discoveries |  | 9,308 |  |  | 12,089 |  |  | 2,436 |  |  | 13,759 |
Revisions |  | 2,138 |  |  | 12,850 |  |  | 492 |  |  | 4,772 |
Production |  | (2,341) |  |  | (2,603) |  |  | (380) |  |  | (3,155) |
September 30, 2021 |  | 46,263 |  |  | 76,019 |  |  | 13,229 |  |  | 72,163 |
Proved Developed Reserves, Included Above |  |  |  |  |  |  |  |
September 30, 2019 |  | 19,198 |  |  | 23,096 |  |  | 6,045 |  |  | 29,092 |
September 30, 2020 |  | 19,149 |  |  | 31,137 |  |  | 5,847 |  |  | 30,186 |
September 30, 2021 |  | 26,170 |  |  | 46,173 |  |  | 7,650 |  |  | 41,516 |
Proved Undeveloped Reserves, Included Above |  |  |  |  |  |  |  |
September 30, 2019 |  | 17,961 |  |  | 17,895 |  |  | 4,767 |  |  | 25,711 |
September 30, 2020 |  | 18,009 |  |  | 22,546 |  |  | 4,834 |  |  | 26,601 |
September 30, 2021 |  | 20,093 |  |  | 29,846 |  |  | 5,579 |  |  | 30,647 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The following summary sets forth the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure prescribed in ASC Topic 932:
|  | September 30,
|  | 2021 |  | 2020
|  | (In thousands)
Future crude oil, natural gas and NGLs sales (1) (2) |  | $ | 2,783,910 |  |  | $ | 1,533,286 |
Future production costs |  | (839,167) |  |  | (550,427) |
Future development costs |  | (218,765) |  |  | (144,912) |
Future income tax expense (3) |  | (324,487) |  |  | (3,167) |
Future net cash flows |  | 1,401,491 |  |  | 834,780 |
10% annual discount |  | (848,555) |  |  | (532,442) |
Standardized measure of discounted future net cash flows |  | $ | 552,936 |  |  | $ | 302,338 |
_____________________________________________________ (1) 2021 proved reserves were derived based on prices of $55.73 of oil, $0.99 of natural gas and $9.83 of NGL. (2) 2020 proved reserves were derived based on prices of $41.91 of oil, $(0.06) of natural gas and $(1.96) of NGL. (3) The Company's calculations of the standardized measure of discounted future net cash flows as of September 30, 2020 included the Company’s obligation for Texas Margin Tax but excluded the effect of estimated future income tax expenses as the Company was a limited liability company and not subject to income taxes. Principal sources of change in the Standardized Measure are shown below:
|  | Year Ended September 30,
|  | 2021 |  | 2020
|  | (In thousands)
Balance, beginning of period |  | $ | 302,338 |  |  | $ | 442,212 |
Sales of crude oil, natural gas and NGLs, net |  | (118,030) |  |  | (48,611) |
Net change in prices and production costs |  | 237,475 |  |  | (162,571) |
Net changes in future development costs |  | (18,856) |  |  | (12,348) |
Extensions and discoveries |  | 144,392 |  |  | 17,490 |
Revisions of previous quantity estimates |  | 50,283 |  |  | 7,328 |
Previously estimated development costs incurred |  | 12,844 |  |  | 10,448 |
Net change in income taxes |  | (124,625) |  |  | 891 |
Accretion of discount |  | 30,551 |  |  | 44,627 |
Other |  | 36,564 |  |  | 2,872 |
Balance, end of period |  | $ | 552,936 |  |  | $ | 302,338 |

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