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Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
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, 2024December 31, 2023
(In thousands)
Oil, natural gas and NGL sales$36,599 $31,135 
Joint interest accounts receivable1,973 1,630 
Other accounts receivable11 2,361 
Total accounts receivable$38,583 $35,126 
As of December 31, 2022, the Company had accounts receivables from oil, natural gas and NGL sales of $24.1 million.
The Company had no allowance for credit losses at March 31, 2024 and December 31, 2023.

Other Non-Current Assets, Net
Other non-current assets consisted of the following:
March 31, 2024December 31, 2023
(In thousands)
Deferred financing costs, net (1)
$3,441 $3,844 
Right of use assets1,666 1,890 
Equity method investment11,406 5,620 
Other3,381 1,247 
Total other non-current assets, net$19,894 $12,601 
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(1)Deferred financing costs, net reflects costs associated with the Company's Credit Facility which are amortized over the term of the Credit Facility.
Equity method investment. In January 2023, the Company formed a joint venture, RPC Power LLC ("RPC Power"), for the purpose of constructing a power infrastructure for onsite power generation in Yoakum County, Texas using produced natural gas. The Company has contributed its portion of capital for the joint venture through RPC Power Holdco LLC, a wholly-owned subsidiary of the Company. In March 2024, the Company made an additional capital contribution of $5.6 million in RPC Power. As of March 31, 2024, the Company owned 35% and had invested $11.5 million in the joint venture, comprised of $9.2 million in cash and $2.3 million of contributed assets, which was reduced by the Company's share of losses and increased by its share of income in the joint venture.
Accrued Liabilities
Accrued liabilities consisted of the following:
March 31, 2024December 31, 2023
(In thousands)
Accrued capital expenditures$6,766 $15,851 
Accrued lease operating expenses5,952 6,038 
Accrued general and administrative costs5,789 4,655 
Accrued ad valorem tax1,284 5,269 
Other accrued expenditures893 1,346 
Total accrued liabilities$20,684 $33,159 
Asset Retirement Obligations
Components of the changes in ARO for the three months ended March 31, 2024 and the year ended December 31, 2023 are shown below:
March 31, 2024December 31, 2023
(In thousands)
ARO, beginning balance$23,044 $3,038 
Liabilities incurred9 45 
Liabilities assumed in acquisitions— 19,359 
Liability settlements and disposals(104)(1,039)
Accretion532 1,641 
ARO, ending balance23,481 23,044 
Less: current ARO (1)
(2,373)(3,789)
ARO, long-term$21,108 $19,255 
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(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,
20242023
(In thousands)
Oil and natural gas sales:
Oil$96,992 $64,974 
Natural gas683 523 
NGLs
1,749 915 
Total oil and natural gas sales, net$99,424 $66,412 

Recent Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances the disclosures required for operating segments in the Company’s annual and interim consolidated financial statements. This ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this standard provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its disclosures.