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Summary of Significant Accounting Policies | 9 Months Ended
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Sep. 30, 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, net Accounts receivable is summarized below:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
Oil, natural gas and NGL sales | $ | 32,097 |  |  | $ | 31,135 |
Joint interest accounts receivable | 3,990 |  |  | 1,630 |
Allowance for credit losses | (45) |  |  | — |
Other accounts receivable | 4,992 |  |  | 2,361 |
Total accounts receivable, net | $ | 41,034 |  |  | $ | 35,126 |
As of December 31, 2022, the Company had accounts receivables, net from oil, natural gas and NGL sales of $24.1 million. The Company estimates uncollectible amounts based on the length of time that the accounts receivable has been outstanding, historical collection experience and current and future economic and market conditions, to determine if failure to collect is expected to occur. Allowances for credit losses are recorded as reductions to the carrying values of the accounts receivables included in the Company’s condensed consolidated balance sheets and are recorded in administrative costs in the condensed consolidated statements of operations if failure to collect an estimable portion is determined to be probable. Other Non-Current Assets, net Other non-current assets consisted of the following:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
Deferred financing costs, net (1) | $ | 2,674 |  |  | $ | 3,844 |
Right of use assets | 1,686 |  |  | 1,890 |
Other | 2,482 |  |  | 1,241 |
Total other non-current assets, net | $ | 6,842 |  |  | $ | 6,975 |
_____________________ (1)Deferred financing costs, net reflects costs associated with the Company's Credit Facility which are amortized over the term of the Credit Facility. Accrued Liabilities Accrued liabilities consisted of the following:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
Accrued capital expenditures | $ | 7,564 |  |  | $ | 15,851 |
Accrued lease operating expenses | 6,470 |  |  | 6,038 |
Accrued general and administrative costs | 5,491 |  |  | 4,655 |
Accrued ad valorem tax | 3,852 |  |  | 5,269 |
Other accrued expenditures | 2,339 |  |  | 1,346 |
Total accrued liabilities | $ | 25,716 |  |  | $ | 33,159 |
Other Current Liabilities Other current liabilities consisted of the following:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
Advances from joint interest owners | $ | 8,324 |  |  | $ | 259 |
Income taxes payable | 1,177 |  |  | 561 |
Current ARO liabilities | 2,996 |  |  | 3,789 |
Other | 1,073 |  |  | 1,667 |
Total other current liabilities | $ | 13,570 |  |  | $ | 6,276 |
Asset Retirement Obligations Components of the changes in ARO for the nine months ended September 30, 2024, and the year ended December 31, 2023, are shown below:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
ARO, beginning balance | $ | 23,044 |  |  | $ | 3,038 |
Liabilities incurred | 27 |  |  | 45 |
Liabilities assumed in acquisitions | 9,727 |  |  | 19,359 |
Liability settlements and disposals | (416) |  |  | (1,039) |
Accretion | 2,020 |  |  | 1,641 |
ARO, ending balance | 34,402 |  |  | 23,044 |
Less: current ARO (1) | (2,996) |  |  | (3,789) |
ARO, long-term | $ | 31,406 |  |  | $ | 19,255 |
_____________________ (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 September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (In thousands)
Oil and natural gas sales: |  |  |  |  |  |  |
Oil | $ | 105,303 |  |  | $ | 104,490 |  |  | $ | 308,648 |  |  | $ | 267,293 |
Natural gas | (1,170) |  |  | 983 |  |  | (1,464) |  |  | 1,547 |
NGLs | (1,794) |  |  | 2,221 |  |  | (78) |  |  | 4,578 |
Total oil and natural gas sales, net (1) | $ | 102,339 |  |  | $ | 107,694 |  |  | $ | 307,106 |  |  | $ | 273,418 |
_____________________ (1) The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceed the price received and result in negative average realized prices. 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 does not expect this standard to have a material impact 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 does not expect this standard to have a material impact on its disclosures.

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