XML 42 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Derivatives | 12 Months Ended
--- | ---
Jun. 30, 2024
Derivatives |
Derivatives | Note 7. Derivatives The Company is exposed to certain risks relating to its ongoing business operations, including commodity price risk and interest rate risk. In accordance with the Company’s strategy and the requirements under the Senior Secured Credit Facility (as discussed in Note 5, “Senior Secured Credit Facility”), it may hedge or may be required to hedge a varying portion of anticipated oil and natural gas production for future periods. Derivatives are carried at fair value on the consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the consolidated statements of operations for the period in which the change occurs. The Company’s hedge strategies and objectives may change significantly as its operational profile changes or as required under the Senior Secured Credit Facility. The Company does not enter into derivative contracts for speculative trading purposes. It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial or commodity hedging institutions deemed by management as competent and competitive market makers. As of June 30, 2024, the Company did not post collateral under any of its derivative contracts during the periods in which contracts were open as they were secured under the Company’s Senior Secured Credit Facility. When the Company utilizes commodity derivative contracts, it expects to enter into deferred premium puts, costless put/call collars and/or fixed-price swaps to hedge a portion of its anticipated future production. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract, and a purchased put that establishes a minimum price. Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for the volumes under contract. The Company has elected not to designate its open derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of the derivative contracts and all payments and receipts on settled derivative contracts in “Net gain (loss) on derivative contracts” on the consolidated statements of operations. All derivative contracts are recorded at fair market value in accordance with ASC 815 and ASC 820, Fair Value Measurement (“ASC 820”) and included in the consolidated balance sheets as assets or liabilities. The “Derivative contract assets” and “Derivative contract liabilities” represent the difference between the market commodity prices and the hedged prices for the remaining volumes of production hedges as of June 30, 2024 (the “mark-to-market valuation”). The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of June 30, 2024 and 2023 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives not designated | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
as hedging contracts | ​ | Balance sheet | ​ | Derivative Contract Assets | ​ | Balance sheet | ​ | Derivative Contract Liabilities
under ASC 815 |  | location |  | June 30, 2024 |  | June 30, 2023 |  | location |  | June 30, 2024 |  | June 30, 2023
Commodity contracts | ​ | Current assets - derivative contract assets | ​ | $ | 596 | ​ | $ | — | ​ | Current liabilities - derivative contract liabilities | ​ | $ | 1,192 | ​ | $ | —
Commodity contracts | ​ | Other assets - derivative contract assets | ​ | ​ | 171 | ​ | ​ | — | ​ | Long term liabilities - derivative contract liabilities | ​ | ​ | 468 | ​ | ​ | —
Total derivatives not designated as hedging contracts under ASC 815 | ​ | ​ | ​ | $ | 767 | ​ | $ | — | ​ | ​ | ​ | $ | 1,660 | ​ | $ | —
​ The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s consolidated statements of operations for the years ended June 30, 2024 and 2023 (in thousands). “Realized gain (loss) on derivative contracts” represents all receipts (payments) on derivative contracts settled during the period. “Unrealized gain (loss) on derivative contracts” represents the net change in the mark-to-market valuation of the derivative contracts. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives not designated | ​ | Location of gain (loss) | ​ | ​ | ​ | ​ | ​ | ​
as hedging contracts | ​ | recognized in income on | ​ | Years Ended June 30,
under ASC 815 |  | derivative contracts | ​ | 2024 |  | 2023
Commodity contracts: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Realized gain (loss) on derivative contracts | ​ | Other income and expenses - net gain (loss) on derivative contracts | ​ | $ | (399) | ​ | $ | (1,481)
Unrealized gain (loss) on derivative contracts | ​ | Other income and expenses - net gain (loss) on derivative contracts | ​ | ​ | (893) | ​ | ​ | 1,994
Total net gain (loss) on derivative contracts | ​ | ​ | ​ | $ | (1,292) | ​ | $ | 513
​ As of June 30, 2024, the Company had the following open crude oil and natural gas derivative contracts: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted Average | ​ | Weighted Average | ​ | Weighted Average
​ | ​ | ​ | ​ | ​ | ​ | Volumes in | ​ | Swap Price per | ​ | Floor Price per | ​ | Ceiling Price per
Period |  | Instrument |  | Commodity |  | MMBTU/BBL | ​ | MMBTU/BBL |  | MMBTU/BBL |  | MMBTU/BBL
July 2024 - December 2024 | ​ | Fixed-Price Swap | ​ | Crude Oil | ​ | 73,558 | ​ | $ | 74.20 | ​ | ​ | ​ | ​ | ​ | ​
July 2024 - December 2024 | ​ | Collar | ​ | Crude Oil | ​ | 73,558 | ​ | ​ | ​ | ​ | $ | 70.00 | ​ | $ | 77.40
January 2025 - March 2025 | ​ | Collar | ​ | Crude Oil | ​ | 42,566 | ​ | ​ | ​ | ​ | ​ | 68.00 | ​ | ​ | 73.77
January 2025 - February 2025 | ​ | Fixed-Price Swap | ​ | Natural Gas | ​ | 312,286 | ​ | ​ | 3.56 | ​ | ​ | ​ | ​ | ​ | ​
April 2025 - June 2025 | ​ | Collar | ​ | Crude Oil | ​ | 41,601 | ​ | ​ | ​ | ​ | ​ | 65.00 | ​ | ​ | 84.00
March 2025 - December 2026 | ​ | Fixed-Price Swap | ​ | Natural Gas | ​ | 3,170,705 | ​ | ​ | 3.60 | ​ | ​ | ​ | ​ | ​ | ​
​ The Company presents the fair value of its derivative contracts at the gross amounts in the consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts as of June 30, 2024 and 2023 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Derivative Contract Assets | ​ | Derivative Contract Liabilities
Offsetting of Derivative Assets and Liabilities |  | June 30, 2024 |  | June 30, 2023 |  | June 30, 2024 |  | June 30, 2023
Gross amounts presented in the Consolidated Balance Sheet | ​ | $ | 767 | ​ | $ | — | ​ | $ | 1,660 | ​ | $ | —
Amounts not offset in the Consolidated Balance Sheet | ​ | ​ | (497) | ​ | ​ | — | ​ | ​ | (497) | ​ | ​ | —
Net amount | ​ | $ | 270 | ​ | $ | — | ​ | $ | 1,163 | ​ | $ | —
​ The Company enters into an ISDA with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration