ADDITIONAL FINANCIAL STATEMENT INFORMATION

9 Months Ended

Sep. 30, 2022

ADDITIONAL FINANCIAL STATEMENT INFORMATION

ADDITIONAL FINANCIAL STATEMENT INFORMATION

12. ADDITIONAL FINANCIAL STATEMENT INFORMATION

Certain balance sheet amounts are comprised of the following (in thousands):


	September 30, 2022		December 31, 2021
Accounts receivable, net:
Oil, natural gas and natural gas liquids revenues	$	36,441	$	34,110
Joint interest accounts		3,009		2,503
Other		417		193
	$	39,867	$	36,806
Prepaids and other:
Prepaids	$	573	$	975
Funds in escrow		341		390
Other		44		1
	$	958	$	1,366
Other assets (Non-current):
Investment in unconsolidated affiliate⁽¹⁾	$	1,612	$	—
Oil, natural gas and natural gas liquids revenues		59		1,010
Funds in escrow		523		1,227
Other		739		33
	$	2,933	$	2,270
Accounts payable and accrued liabilities:
Trade payables	$	34,201	$	25,315
Accrued oil and natural gas capital costs		27,208		4,881
Revenues and royalties payable		29,595		22,763
Accrued interest expense		66		42
Accrued employee compensation		2,482		3,735
Accrued lease operating expenses		6,534		6,090
Drilling advances from partners		109		—
Other		3		—
	$	100,198	$	62,826

(1)

In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. We also entered into a gas treating agreement with the joint venture, Brazos Amine Treater, LLC (“BAT”), and have a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the facility. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to the joint venture in exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT using the equity method of accounting based on our ability to exercise significant influence, but not control, over the key activities of the joint venture.

(2)