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Supplemental Oil and Gas Disclosures (Unaudited)
 12 Months Ended
Dec. 31, 2024
Extractive Industries [Abstract]  
Supplemental Oil and Gas Disclosures (Unaudited) Supplemental Oil and Gas Disclosures (Unaudited)
The Minerals Management segment derives income primarily by leasing our 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, our access to information concerning activity and operations of our royalty and mineral interests is limited. We do 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.

Capitalized Oil and Natural Gas Costs

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:

20242023
Proved developed$16,720 $16,179 
Proved undeveloped52,428 51,971 
Proved reserves69,148 68,150 
Less: accumulated depreciation, depletion and amortization 6,061 3,309 
Net royalty interests in oil and natural gas properties$63,087 $64,841 

Oil and Natural Gas Reserves

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 our estimated net proved oil and natural gas reserves as of December 31 based on the reserve report prepared by Haas & Cobb Petroleum Consultants, our independent petroleum engineering firm. All of our reserves are located in the United States.
Net reserves as of December 31, 2024
Oil (bbl) (1)
NGL (bbl) (1)
Residue gas (Mcf) (2)
Proved developed620,790 443,650 27,491,840 
Proved undeveloped74,400 30,280 135,830 
Total695,190 473,930 27,627,670 
Net reserves as of December 31, 2023
Oil (bbl) (1)
NGL (bbl) (1)
Residue gas (Mcf) (2)
Proved developed656,370 380,650 23,596,110 
Proved undeveloped9,020 3,720 26,420 
Total665,390 384,370 23,622,530 

(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, 2024:

Estimated Proved Reserves
Oil (bbl) (1)
NGL (bbl) (1)
Residue gas (Mcf) (2)
December 31, 2023665,390 384,370 23,622,530 
Purchases14,005 1,233 29,268 
Extensions and discoveries236,491 85,087 7,040,710 
Revisions of previous estimates (3)
(105,479)63,441 (498,627)
Production(32,077)(15,687)(1,843,911)
Other(83,140)(44,514)(722,300)
December 31, 2024695,190 473,930 27,627,670 

Estimated Proved Undeveloped Reserves (PUDs)

The following table summarizes changes in PUDs during the year ended December 31, 2024:

Estimated Proved Undeveloped Reserves
Oil (bbl) (1)
NGL (bbl) (1)
Residue gas (Mcf) (2)
December 31, 20239,020 3,720 26,420 
Purchases2,208 38 5,237 
Extensions and discoveries69,716 27,902 126,724 
Conversions
(3,322)(1,914)(10,017)
Revisions of previous estimates (3)
(3,222)534 (12,534)
December 31, 202474,400 30,280 135,830 
(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, we generally do 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, 2024, PUD reserves consists of 89 wells in various stages of drilling or completions. As of December 31, 2024, less than 1% of our 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. We are 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 us. 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, 2024:

Gross AmountsStatutory tax rateNet Amounts
Future cash inflows(3)
$119,534 
Future production costs33,308 
Future net cash flows before income tax expense86,226 21 %68,119 
10% discount to reflect timing of cash flows(32,580)21 %(25,739)
Standardized measure of discounted cash flows$53,646 21 %$42,380 

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, 2023:

Gross AmountsStatutory tax rateNet Amounts
Future cash inflows(3)
$122,286 
Future production costs27,487 
Future net cash flows before income tax expense94,799 21 %74,891 
10% discount to reflect timing of cash flows(33,521)21 %(26,481)
Standardized measure of discounted cash flows$61,278 21 %48,410 
The following summarizes the principal sources of change in the standardized measure of discounted future net cash flows during 2024:
Gross amounts
20242023
January 1$61,278 $116,526 
Purchases522 11,312 
Extensions and discoveries18,426 11,419 
Revisions of previous estimates (3)(4)
(20,713)(61,206)
Conversions(5,867)(16,773)
December 31$53,646 $61,278 
(3) Requirements for oil and gas reserve estimation and disclosure require that reserve estimates and future cash flows be based on the average market prices for sales of oil and gas on the first calendar day of each month during the year. The benchmark price for WTI crude oil sold at Cushing, OK during 2024 and 2023 was $75.48 and $78.22 per bbl, respectively. The benchmark price for natural gas delivered at Henry Hub during 2024 and 2023 was $2.13 and $2.64 per MMBTU, respectively. Actual future prices and costs are likely to be substantially different from historical prices and costs utilized in the computation of reported amounts. Any analysis or evaluation of the reported amounts should give specific recognition to the computational methods utilized and the limitations inherent therein.
(4) Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors.