XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.22.2

Long-Term Debt | 12 Months Ended
--- | ---
Mar. 31, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | 5. Long-Term Debt Long-term debt on the Consolidated Balance Sheets consisted of the following as of March 31: Schedule of Long-Term Debt
|  | 2022 |  |  | 2021 |
Credit facility |  | $ | - |  |  | $ | 1,180,000 |
Unamortized debt issuance costs(1) |  |  | - |  |  |  | (25,051 | )
Total long-term debt |  | $ | - |  |  | $ | 1,154,949 |
| (1) | For the current period, since the Company has no long-term debt outstanding, unamortized debt issuance costs in the amount of $12,526 are included in Other noncurrent assets.
On December 28, 2018, the Company entered into a loan agreement (the “Agreement”) with West Texas National Bank (“WTNB”), which originally provided for a credit facility of $1,000,000 with a maturity date of December 28, 2021. The Agreement has no monthly commitment reduction and a borrowing base to be evaluated annually. On February 28, 2020, the Agreement was amended to increase the credit facility to $2,500,000, extend the maturity date to March 28, 2023 and increase the borrowing base to $1,500,000. Under the Agreement, interest on the facility accrues at a rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent (.5%) floating daily. Interest on the outstanding amount under the Agreement is payable monthly. In addition, the Company will pay an unused commitment fee in an amount equal to one-half of one percent (.5%) times the daily average of the unadvanced amount of the commitment. The unused commitment fee is payable quarterly in arrears on the last day of each calendar quarter. As of March 31, 2022, there was $1,500,000 available for borrowing by the Company on the facility. No principal payments are anticipated to be required through the maturity date of the credit facility, March 28, 2023. Upon closing with WTNB on the original Agreement, the Company paid a .5% loan origination fee in the amount of $5,000 plus legal and recording expenses totaling $34,532, which were deferred over the life of the credit facility. Upon closing the amendment to the Agreement, the Company paid a .1% loan origination fee of $2,500 and an extension fee of $3,125 plus legal and recording expenses totaling $12,266, which were also deferred over the life of the credit facility. Amounts borrowed under the Agreement are collateralized by the common stock of the Company’s wholly owned subsidiaries and substantially all of the Company’s oil and gas properties. The Agreement contains customary covenants for credit facilities of this type including limitations on change in control, disposition of assets, mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the Agreement and requires senior debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) ratios (Senior Debt/EBITDA) less than or equal to 4.00 to 1.00 measured with respect to the four trailing fiscal quarters and minimum interest coverage ratios (EBITDA/Interest Expense) of 2.00 to 1.00 for each quarter. In addition, the Agreement prohibits the Company from paying cash dividends on its common stock without prior written permission of WTNB. The Agreement does not permit the Company to enter into hedge agreements covering crude oil and natural gas prices without prior WTNB approval. The Company obtained written permission from WTNB prior to entering into the current hedge agreement discussed in Note 4. There was no balance outstanding on the credit facility as of March 31, 2022. The following table is a summary of activity on the WTNB credit facility for the years ended March 31, 2022 and 2021: Summary of Line of Credit Activity
|  | Principal |
Balance at April 1, 2020: |  | $ | 795,000 |
Borrowings |  |  | 935,000 |
Repayments |  |  | 550,000 |
Balance at March 31, 2021: |  | $ | 1,180,000 |
Borrowings |  |  | 275,000 |
Repayments |  |  | 1,455,000 |
Balance at March 31, 2022: |  | $ | - |

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

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration