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Summary of Significant Accounting Policies | 6 Months Ended
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Jun. 30, 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:
| June 30, 2023 |  | December 31, 2022
| (In thousands)
Oil, natural gas and NGL sales | $ | 31,105 |  |  | $ | 24,136 |
Joint interest accounts receivable | 996 |  |  | 793 |
Other accounts receivable | 483 |  |  | 622 |
Total accounts receivable | $ | 32,584 |  |  | $ | 25,551 |
The Company had no allowance for credit losses at June 30, 2023 and December 31, 2022. Other Non-Current Assets, Net Other non-current assets consisted of the following:
| June 30, 2023 |  | December 31, 2022
| (In thousands)
Deferred financing costs, net (1) | $ | 3,763 |  |  | $ | 2,556 |
Right of use assets | 1,573 |  |  | 1,370 |
Equity method investment | 5,602 |  |  | — |
Other | 104 |  |  | 249 |
Total other non-current assets, net | $ | 11,042 |  |  | $ | 4,175 |
_____________________ (1)Deferred financing costs, net reflects costs associated with the Company's revolving credit facility which are amortized over the term of the revolving credit facility. 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 contributed its portion of capital for construction of the onsite power generation. As of June 30, 2023, the Company had invested $5.8 million to date in the joint venture, comprised of $3.6 million in cash and $2.3 million of contributed assets, which was reduced by the loss during the six months ended June 30, 2023. The onsite power generation facility is expected to be placed in service late in the third quarter or during the fourth quarter of 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 statements 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:
| June 30, 2023 |  | December 31, 2022
| (In thousands)
Accrued capital expenditures | $ | 10,790 |  |  | $ | 16,744 |
Accrued lease operating expenses | 6,687 |  |  | 4,607 |
Accrued general and administrative costs | 4,914 |  |  | 2,286 |
Accrued inventory | 2,284 |  |  | 6,235 |
Accrued ad valorem tax | 2,635 |  |  | 3,789 |
Other accrued expenditures | 1,570 |  |  | 1,921 |
Total accrued liabilities | $ | 28,880 |  |  | $ | 35,582 |
Other Current Liabilities Other current liabilities consisted of the following:
| June 30, 2023 |  | December 31, 2022
| (In thousands)
Advances from joint interest owners | $ | 360 |  |  | $ | 192 |
Income taxes payable | 4,291 |  |  | 1,194 |
Current ARO liabilities | 1,486 |  |  | 314 |
Lease liabilities | 789 |  |  | 538 |
Accounts payable - related parties | 290 |  |  | 324 |
Total other current liabilities | $ | 7,216 |  |  | $ | 2,562 |
Asset Retirement Obligations Components of the changes in ARO consisted of the following and is shown below:
| June 30, 2023 |  | December 31, 2022
| (In thousands)
ARO, beginning balance | $ | 3,038 |  |  | $ | 2,453 |
Liabilities incurred | 32 |  |  | 358 |
Liabilities assumed in acquisitions | 19,359 |  |  | — |
Revision of estimated obligations | — |  |  | 326 |
Liability settlements and disposals | (501) |  |  | (178) |
Accretion | 563 |  |  | 79 |
ARO, ending balance | 22,491 |  |  | 3,038 |
Less: current ARO(1) | (1,486) |  |  | (314) |
ARO, long-term | $ | 21,005 |  |  | $ | 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 June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In thousands)
Oil and natural gas sales: |  |  |  |  |  |  |
Oil | $ | 97,830 |  |  | $ | 82,501 |  |  | $ | 162,803 |  |  | $ | 144,877 |
Natural gas | 40 |  |  | 2,850 |  |  | 564 |  |  | 4,639 |
Natural gas liquids | 1,442 |  |  | 2,430 |  |  | 2,357 |  |  | 4,910 |
Total oil and natural gas sales, net | $ | 99,312 |  |  | $ | 87,781 |  |  | $ | 165,724 |  |  | $ | 154,426 |
Deferred financing costs Long-term debt includes capitalized costs related to the issuance of $200 million of 10.50% senior unsecured notes with final maturity due 2028 ("Senior Notes"), net of accumulated amortization. The costs associated with the Senior Notes are netted against the Senior Notes balance and are amortized over the term of the Senior Notes using the effective interest method. See Note 9 - Long-Term Debt for additional information. Recent Accounting Pronouncements

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