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Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended
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Dec. 31, 2022
Extractive Industries [Abstract] |
Supplemental Oil and Gas Disclosures (Unaudited) | Supplemental Oil and Gas Disclosures (Unaudited) The Minerals Management segment derives income primarily by leasing its royalty and mineral interests to third-party exploration and production companies, and, to a lesser extent, other mining companies, granting them the rights to explore, develop, mine, produce, market and sell gas, oil, and coal in exchange for royalty payments based on the lessees' sales of those minerals. As an owner of royalty and mineral interests, the Company’s access to information concerning activity and operations of its royalty and mineral interests is limited. The Company does not have information that would be available to a company with working interests in oil and natural gas operations because detailed information is not generally available to owners of royalty and mineral interests. See Note 1, Note 2 and Note 15 for additional discussion of the Minerals Management segment. Aggregate capitalized costs related to oil and gas royalty and mineral interests with applicable accumulated depreciation, depletion and amortization at December 31 are as follows:
| 2022 |  | 2021 |  |
Proved developed | $ | 7,302 |  |  | $ | 3,266 |  |  |
Proved undeveloped | 24,134 |  |  | 16,246 |  |  |
Proved reserves | 31,436 |  |  | 19,512 |  |  |
Less: accumulated depreciation, depletion and amortization | 1,936 |  |  | 868 |  |  |
Net royalty interests in oil and natural gas properties | $ | 29,500 |  |  | $ | 18,644 |  |  |
Total net proved reserves are defined as those natural gas and hydrocarbon liquid reserves to Company interests after deducting all royalties, overriding royalties, and reversionary interests owned by outside parties that become effective upon payout of specified monetary balances. Decline curve analysis was used to estimate the remaining reserves of pressure depletion reservoirs with enough historical production data to establish decline trends. Reservoirs under non-pressure depletion drive mechanisms and non-producing reserves were estimated by volumetric analysis, research of analogous reservoirs, or a combination of both. Reserves have been estimated using deterministic and probabilistic methods. All reserves estimates have been prepared using standard engineering practices generally accepted by the petroleum industry and conform to guidelines developed and adopted by the SEC. The following table presents the Company's estimated net proved oil and natural gas reserves as of December 31 based on the reserve report prepared by Haas Engineering, the Company’s independent petroleum engineering firm. All of the Company’s reserves are located in the United States.
|  | Net reserves as of December 31, 2022
|  | Oil (bbl) (1) |  | NGL (bbl) (1) |  | Residue gas (Mcf) (2)
Proved developed |  | 305,710 |  |  | 408,280 |  |  | 25,907,890 |
Proved undeveloped |  | 32,570 |  |  | 11,030 |  |  | 1,784,670 |
Total |  | 338,280 |  |  | 419,310 |  |  | 27,692,560 |
|  | Net reserves as of December 31, 2021
|  | Oil (bbl) (1) |  | NGL (bbl) (1) |  | Residue gas (Mcf) (2)
Proved developed |  | 167,430 |  |  | 282,230 |  |  | 16,617,360 |
Proved undeveloped |  | 220 |  |  | 90 |  |  | 1,210 |
Total |  | 167,650 |  |  | 282,320 |  |  | 16,618,570 |
(1) Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume. (2) Mcf. One thousand cubic feet of natural gas at the contractual pressure and temperature bases. Estimated Proved Reserves The following table summarizes changes in proved reserves during the year ended December 31, 2022:
|  | Estimated Proved Reserves
|  | Oil (bbl) (1) |  | NGL (bbl) (1) |  | Residue gas (Mcf) (2) |
December 31, 2021 |  | 167,650 |  |  | 282,320 |  |  | 16,618,570 |  |
Purchases |  | 99,345 |  |  | 35,222 |  |  | 202,314 |  |
Extensions and discoveries |  | 121,542 |  |  | 68,167 |  |  | 12,801,109 |  |
Revisions of previous estimates (3) |  | (2,504) |  |  | 95,577 |  |  | 5,405,803 |  |
Production |  | (46,571) |  |  | (61,511) |  |  | (7,329,985) |  |
Other |  | (1,182) |  |  | (465) |  |  | (5,251) |  |
December 31, 2022 |  | 338,280 |  |  | 419,310 |  |  | 27,692,560 |  |
(1) Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume. (2) Mcf. One thousand cubic feet of natural gas at the contractual pressure and temperature bases. (3) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors. Estimated Proved Undeveloped Reserves ("PUDs") The following table summarizes changes in PUDs during the year ended December 31, 2022:
|  | Estimated Proved Undeveloped Reserves
|  | Oil (bbl) (1) |  | NGL (bbl) (1) |  | Residue gas (Mcf) (2) |
December 31, 2021 |  | 220 |  |  | 90 |  |  | 1,210 |  |
Purchases |  | 21,790 |  |  | 5,104 |  |  | 38,571 |  |
Extensions and discoveries |  | 10,780 |  |  | 5,926 |  |  | 1,746,099 |  |
Revisions of previous estimates (3) |  | (220) |  |  | (90) |  |  | (1,210) |  |
December 31, 2022 |  | 32,570 |  |  | 11,030 |  |  | 1,784,670 |  |
(1) Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume. (2) Mcf. One thousand cubic feet of natural gas at the contractual pressure and temperature bases. (3) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors. As an owner of mineral and royalty interests, the Company generally does not have evidence of approval of operators’ development plans. As a result, proved undeveloped reserve estimates are limited to those relatively few locations for which drilling permits have been publicly filed. As of December 31, 2022, PUD reserves consists of 42 wells in various stages of drilling or completions. As of December 31, 2022, approximately 6% of the Company's total proved reserves were classified as PUDs. Standardized Measure of Discounted Future Net Cash Flows Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the 12-month unweighted average of first-day-of-the-month commodity prices for the periods presented. Future cash inflows are computed by applying applicable prices relating to proved reserves to the year-end quantities of those reserves. Future production and costs are derived based on current costs assuming continuation of existing economic conditions. Federal income tax expenses are deducted from future production revenues in the calculation of the standardized measure using the statutory tax rate. The Company is subject to certain state-based taxes; however, these amounts are not material. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary. The following table provides the future net cash flows relating to proved oil and gas reserves based on the standardized measure of discounted cash flows as of December 31, 2022:
|  | Gross Amounts |  | Statutory tax rate |  | Net Amounts
Future cash inflows |  | $ | 218,982 |  |  |  |  |
Future production costs |  | 39,841 |  |  |  |  |
Future net cash flows before income tax expense |  | 179,141 |  |  | 21 | % |  | 141,521 |
10% discount to reflect timing of cash flows |  | (62,615) |  |  | 21 | % |  | (49,465) |
Standardized measure of discounted cash flows |  | $ | 116,526 |  |  | 21 | % |  | $ | 92,056 |
The following table provides the future net cash flows relating to proved oil and gas reserves based on the standardized measure of discounted cash flows as of December 31, 2021:
|  | Gross Amounts |  | Statutory tax rate |  | Net Amounts
Future cash inflows |  | $ | 71,400 |  |  |  |  |
Future production costs |  | 14,664 |  |  |  |  |
Future net cash flows before income tax expense |  | 56,736 |  |  | 21 | % |  | 44,821 |
10% discount to reflect timing of cash flows |  | (19,897) |  |  | 21 | % |  | (15,719) |
Standardized measure of discounted cash flows |  | $ | 36,839 |  |  | 21 | % |  | $ | 29,102 |
The following summarizes the principal sources of change in the standardized measure of discounted future net cash flows during 2022:
|  | Gross amounts
December 31, 2021 |  | $ | 36,839 |  |
Purchases |  | 6,236 |  |
Extensions and discoveries |  | 54,795 |  |
Revisions of previous estimates (3) |  | 18,695 |  |
Other |  | (39) |  |
December 31, 2022 |  | $ | 116,526 |  |
(3) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors.

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