XML 19 R9.htm IDEA: XBRL DOCUMENT
v3.23.1

Summary of Significant Accounting Policies | 3 Months Ended
--- | ---
Mar. 31, 2023
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 the 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 Accounts receivable is summarized below:
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Oil, natural gas and NGL sales | $ | 23,804 |  |  | $ | 24,136 |
Joint interest accounts receivable | 728 |  |  | 793 |
Other accounts receivable | 108 |  |  | 622 |
Total accounts receivable | $ | 24,640 |  |  | $ | 25,551 |
The Company had no allowance for credit losses at March 31, 2023 and December 31, 2022. Other Non-Current Assets, Net Other non-current assets consisted of the following:
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Deferred financing costs, net | $ | 2,413 |  |  | $ | 2,556 |
Prepayments to outside operators | 2,193 |  |  | 186 |
Right of use assets | 1,232 |  |  | 1,370 |
Equity method investment | 3,880 |  |  | — |
Other deposits | 66 |  |  | 63 |
Total other non-current assets, net | $ | 9,784 |  |  | $ | 4,175 |
Equity method investment. In January 2023, the Company entered into an agreement to form a joint venture created for the purpose of constructing a new power infrastructure for onsite power generation in Yoakum County, Texas using produced natural gas. RPC Power Holdco LLC, a wholly owned subsidiary of REPX, has a 30% investment in the joint venture, RPC Power LLC ("RPC Power"). The Company will contribute its portion of capital expenditures for construction of the onsite power generation. As of March 31, 2023, the Company invested $4.1 million, comprised of $1.8 million in cash and $2.3 million of contributed assets, which was reduced by a $0.2 million loss during the three months ended March 31, 2023. The Company accounts for its corporate joint ventures under the equity method of accounting in accordance with FASB Accounting Standards Codification Topic 323 “Investments — Equity Method and Joint Ventures.” The Company applies the equity method of accounting to investments of less than 50% in an investee over which the Company exercises significant influence but does not have control. Under the equity method of accounting, the Company’s share of the investee’s earnings or loss is recognized in the condensed consolidated statement of operations. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions, material intercompany transactions and extent of ownership by an investor in relation to the concentration of other shareholdings. Accrued Liabilities Accrued liabilities consisted of the following:
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Accrued capital expenditures | $ | 13,768 |  |  | $ | 16,744 |
Accrued lease operating expenses | 2,267 |  |  | 4,607 |
Accrued general and administrative costs | 3,591 |  |  | 2,286 |
Accrued inventory | 210 |  |  | 6,235 |
Accrued ad valorem tax | 916 |  |  | 3,789 |
Other accrued expenditures | 766 |  |  | 1,921 |
Total accrued liabilities | $ | 21,518 |  |  | $ | 35,582 |
Other Current Liabilities Other current liabilities consisted of the following:
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Advances from joint interest owners | $ | 170 |  |  | $ | 192 |
Income taxes payable | 4,601 |  |  | 1,194 |
Current ARO liabilities | 71 |  |  | 314 |
Lease liabilities | 540 |  |  | 538 |
Total other current liabilities | $ | 5,382 |  |  | $ | 2,238 |
Asset Retirement Obligations Components of the changes in ARO consisted of the following and is shown below:
| March 31, 2023 |  | December 31, 2022
| (In thousands)
ARO, beginning balance | $ | 3,038 |  |  | $ | 2,453 |
Liabilities incurred | 21 |  |  | 358 |
Revision of estimated obligations | — |  |  | 326 |
Liability settlements and disposals | (153) |  |  | (178) |
Accretion | 25 |  |  | 79 |
ARO, ending balance | 2,931 |  |  | 3,038 |
Less: current ARO(1) | (71) |  |  | (314) |
ARO, long-term | $ | 2,860 |  |  | $ | 2,724 |
_____________________ (1)Current ARO is included within other current liabilities on the accompanying condensed consolidated balance sheets. Revenue Recognition The following table presents oil and natural gas sales disaggregated by product:
| Three Months Ended March 31,
| 2023 |  |  |  | 2022
| (In thousands)
Oil and natural gas sales: |  |  |  |  |
Oil | $ | 64,974 |  |  |  |  | $ | 62,376 |
Natural gas | 523 |  |  |  |  | 1,789 |
Natural gas liquids | 915 |  |  |  |  | 2,480 |
Total oil and natural gas sales, net | $ | 66,412 |  |  |  |  | $ | 66,645 |
Recent Accounting Pronouncements No new accounting pronouncements have been adopted or issued that would impact the financial statements of the Company.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=126899994&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI https://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration