| Schedule of Segment Reporting Information and Reconciliation of Total Reportable Segments' Measures of Profit/Loss |
The Company assessed whether its operating segments exhibited similar economic characteristics and whether its operating segments had a similar nature of products, services, production processes, purchaser types/classes, product distribution, and regulatory environment. Each operating segment has similar products (oil, natural gas, and NGLs), similar production processes, similar types of purchasers (midstream companies, or companies with midstream components), similar methods of product delivery, and is governed by the same regulations. After a thorough analysis of each of these factors with regards to the Company's operating segments, it has been determined that it is appropriate to aggregate its operating segments into a single reportable segment, Exploration and Production, which includes all of its revenues, lease operating expenses, gathering, transportation and processing costs, ad valorem taxes, and oil and natural gas production taxes. Refer to the table below.
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For the Three Months Ended March 31, |
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2025 |
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2024 |
| Exploration and Production |
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Oil, natural gas, and natural gas liquids revenues (1)
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$ |
79,091,207 |
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$ |
94,503,136 |
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Lease operating expenses (2)
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(19,677,552) |
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(18,360,434) |
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| Gathering, transportation and processing costs |
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(203,612) |
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(166,054) |
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| Ad valorem taxes |
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(1,532,108) |
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(2,145,631) |
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| Oil and natural gas production taxes |
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(3,584,455) |
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(4,428,303) |
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| Exploration and Production segment profit |
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$ |
54,093,480
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$ |
69,402,714
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(1) All of the Company's revenues are within the Permian Basin within the United States.
(2) The CODM also reviews the following cost categories within lease operating expenses. Refer to the following table.
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For the Three Months Ended March 31, |
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2025 |
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2024 |
| Lease operating expenses: |
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| Workovers |
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$ |
2,816,209 |
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$ |
3,590,292 |
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| Other lease operating expenses |
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$ |
16,861,343 |
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$ |
14,770,142 |
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| Total lease operating expenses |
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$ |
19,677,552
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$ |
18,360,434
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The following tables include a reconciliation of the total reportable segments' measures of profit or loss to the Company's consolidated income before income taxes. Additionally included is a reconciliation between the reportable segments' assets to the Company's consolidated assets.
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For the three months ended March 31, 2025 |
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Exploration and Production |
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Corporate |
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Total Company |
| Oil, Natural Gas, and Natural Gas Liquids Revenues |
$ |
79,091,207 |
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$ |
— |
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$ |
79,091,207 |
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| Lease operating expenses |
(19,677,552) |
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— |
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(19,677,552) |
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| Gathering, transportation and processing costs |
(203,612) |
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— |
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(203,612) |
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| Ad valorem taxes |
(1,532,108) |
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— |
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(1,532,108) |
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| Oil and natural gas production taxes |
(3,584,455) |
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— |
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(3,584,455) |
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Depreciation, depletion and amortization (3)
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— |
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(22,615,983) |
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(22,615,983) |
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| Asset retirement obligation accretion |
— |
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(326,549) |
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(326,549) |
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| Operating lease expense |
— |
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(175,091) |
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(175,091) |
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| General and administrative expense |
— |
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(8,619,976) |
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(8,619,976) |
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| Interest income |
— |
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90,058 |
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90,058 |
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| Interest (expense) |
— |
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(9,498,786) |
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(9,498,786) |
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| Gain (loss) on derivative contracts |
— |
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(928,790) |
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(928,790) |
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| Gain (loss) on disposal of assets |
— |
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124,610 |
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124,610 |
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| Other income |
— |
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8,942 |
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8,942 |
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| Income (Loss) Before Benefit from (Provision for) Income Taxes |
$ |
54,093,480
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$ |
(41,941,565) |
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$ |
12,151,915
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Total Assets (3)
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$ |
1,482,143,321
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$ |
23,466,953
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$ |
1,505,610,274
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| Capital expenditures |
$ |
32,451,531
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$ |
—
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$ |
32,451,531
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(3) All of the Company's assets are located within the United States. As the CODM does not view depreciation, depletion and amortization as a significant Exploration and Production segment expense, the Company has included this expense within the Corporate column of the reconciliation table.
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For the three months ended March 31, 2024 |
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Exploration and Production |
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Corporate |
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Total Company |
| Oil, Natural Gas, and Natural Gas Liquids Revenues |
$ |
94,503,136 |
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$ |
— |
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$ |
94,503,136 |
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| Lease operating expenses |
(18,360,434) |
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— |
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(18,360,434) |
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| Gathering, transportation and processing costs |
(166,054) |
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— |
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(166,054) |
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| Ad valorem taxes |
(2,145,631) |
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— |
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(2,145,631) |
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| Oil and natural gas production taxes |
(4,428,303) |
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— |
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(4,428,303) |
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Depreciation, depletion and amortization (3)
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— |
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(23,792,450) |
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(23,792,450) |
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| Asset retirement obligation accretion |
— |
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(350,834) |
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(350,834) |
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| Operating lease expense |
— |
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(175,091) |
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(175,091) |
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| General and administrative expense |
— |
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(7,469,222) |
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(7,469,222) |
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| Interest income |
— |
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78,544 |
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78,544 |
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| Interest (expense) |
— |
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(11,498,944) |
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(11,498,944) |
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| Gain (loss) on derivative contracts |
— |
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(19,014,495) |
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(19,014,495) |
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| Gain (loss) on disposal of assets |
— |
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38,355 |
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38,355 |
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| Other income |
— |
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25,686 |
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25,686 |
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| Income (Loss) Before Benefit from (Provision for) Income Taxes |
$ |
69,402,714
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$ |
(62,158,451) |
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$ |
7,244,263
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Total Assets (3)
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$ |
1,356,323,667
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$ |
28,360,273
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$ |
1,384,683,940
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| Capital expenditures |
$ |
36,261,008
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$ |
—
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$ |
36,261,008
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