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ADDITIONAL FINANCIAL STATEMENT INFORMATION

12 Months Ended

Dec. 31, 2024

ADDITIONAL FINANCIAL STATEMENT INFORMATION

ADDITIONAL FINANCIAL STATEMENT INFORMATION

16. ADDITIONAL FINANCIAL STATEMENT INFORMATION

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


	December 31, 2024		December 31, 2023
Accounts receivable, net:
Oil, natural gas and natural gas liquids revenues	$	23,516	$	19,802
Joint interest accounts		2,140		2,138
Other		642		1,081
	$	26,298	$	23,021
Prepaids and other:
Prepaids	$	572	$	490
Funds in escrow		349		345
Other		61		72
	$	982	$	907
Other assets (Non-current):
Investment in unconsolidated affiliate	$	940	$	1,283
Contract asset		—		15,062
Funds in escrow		578		552
Other		760		759
	$	2,278	$	17,656
Accounts payable and accrued liabilities:
Trade payables	$	15,663	$	24,915
Accrued oil and natural gas capital costs		7,800		15,337
Revenues and royalties payable		19,816		18,986
Accrued interest expense		330		347
Accrued employee compensation		1,472		520
Accrued lease operating expenses		7,597		6,418
Other		4		2
	$	52,682	$	66,525

Investment in Unconsolidated Affiliate. In May 2022, the Company 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 its produced natural gas. Caracara provided the initial capital for the construction of the treatment facility. The Company contributed certain full cost pool assets to the related party joint venture in a non-cash exchange for a retained 5% equity interest in Wink Amine Treater, LLC (“WAT”) (previously Brazos Amine Treater, LLC (“BAT”)), an unconsolidated subsidiary. For accounting purposes, since the Company does not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance, the Company is not the primary beneficiary of WAT. Accordingly, the Company accounts for its investment in WAT (a related party) using the equity method of accounting based on its ability to exercise significant influence, but not control, over the key activities of the joint venture. For more information related to this joint venture, see Note 11, “Commitments and Contingencies”.

Contract Asset. The Company has advanced total capital contributions of approximately $18.5 million on behalf of its joint venture partner in WAT to fund a workover operation on the AGI Facility. Pursuant to the terms of the agreement governing the joint venture, the Company has multiple remedies to recover such advance, including (1) declaring such payment a loan, which pursuant to the agreement would have an interest rate of the lesser of 15% or the maximum rate permitted by law, (2) recoupment from distributions from the joint venture and (3) reallocation of equity of the joint venture based on the relative level of total capital contributions by the parties after taking into account the advances, none of which would occur until the expiration of the current tolling agreement between the parties. The Company assesses the fair value of the contract asset on a quarterly basis for possible impairment. During the fourth quarter of 2024, the Company identified indicators that the carrying value of the contract asset may not be recoverable and as a result, recognized $18.5 million of impairment of charges to reduce the carrying value of the contract asset to zero at December 31, 2024.

Certain income statement amounts are comprised of the following (in thousands) for the periods presents:


	December 31, 2024		December 31, 2023
Interest expense and other
Interest expense	$	29,009	$	36,511
Interest income		(2,122)		(1,243)
Mark-to-market of derivatives - change of control call option		(2,084)		(2,053)
Merger Termination Payment		(10,000)		—
Other		153		104
	$	14,956	$	33,319