Annual report [Section 13 and 15(d), not S-K Item 405]

STATEMENTS OF CASH FLOWS

v3.25.4
STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows From Operating Activities      
Net income (loss) $ (34,731,199) $ 67,470,314 $ 104,864,641
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation, depletion and amortization 96,414,150 98,702,843 88,610,291
Ceiling test impairment 108,825,446 0 0
Asset retirement obligation accretion 1,490,255 1,380,298 1,425,686
Amortization of deferred financing costs 4,459,520 4,969,174 4,920,714
Share-based compensation 6,135,957 5,506,017 8,833,425
Credit loss expense 19,029 160,847 134,007
(Gain) loss on disposal of assets (446,400) (89,693) 0
Deferred income tax expense (benefit) (7,858,446) 19,935,413 (425,275)
Excess tax expense (benefit) related to share-based compensation 30,763 104,344 478,304
(Gain) loss on derivative contracts (31,658,839) 2,365,917 (2,767,162)
Cash received (paid) for derivative settlements, net 5,452,300 (5,193,673) (9,084,920)
Changes in operating assets and liabilities:      
Accounts receivable 4,452,926 3,594,504 1,154,085
Inventory (1,264,896) 2,089,116 3,113,782
Prepaid expenses and other assets (41,410) 93,509 226,688
Accounts payable 474,744 (5,076,738) (1,451,422)
Settlement of asset retirement obligation (904,493) (1,588,480) (1,862,385)
Net Cash Provided by Operating Activities 150,849,407 194,423,712 198,170,459
Cash Flows From Investing Activities      
Payments to purchase oil and natural gas properties (2,528,932) (2,210,826) (2,162,585)
Payments to develop oil and natural gas properties (95,207,027) (153,945,456) (152,559,314)
Payments to acquire or improve fixed assets subject to depreciation (179,771) (185,524) (492,317)
Proceeds from sale of fixed assets subject to depreciation 17,360 10,605 332,229
Proceeds from divestiture of oil and natural gas properties 100 121,232 1,554,558
Insurance proceeds received for damage to oil and natural gas properties 260,446 0 0
Net Cash Used in Investing Activities (179,501,253) (150,854,367) (222,573,288)
Cash Flows From Financing Activities      
Proceeds from revolving line of credit 231,822,997 130,000,000 225,000,000
Payments on revolving line of credit (196,822,997) (170,000,000) (215,000,000)
Proceeds from issuance of common stock and warrants 0 0 12,301,596
Payments for taxes withheld on vested restricted shares, net (1,189,805) (919,249) (520,153)
Proceeds from notes payable 1,648,539 1,560,281 1,637,513
Payments on notes payable (1,639,184) (1,597,618) (1,603,659)
Payment of deferred financing costs (5,647,107) (88,450) (52,222)
Reduction of financing lease liabilities (484,079) (954,298) (776,388)
Net Cash Provided by (Used in) Financing Activities 27,688,364 (41,999,334) 20,986,687
Net Increase (Decrease) in Cash (963,482) 1,570,011 (3,416,142)
Cash at Beginning of Period 1,866,395 296,384 3,712,526
Cash at End of Period 902,913 1,866,395 296,384
Supplemental Cash Flow Information      
Cash paid for interest 32,363,614 39,196,575 38,009,164
Cash paid (refunded) for income taxes 347,487 72,213 72,213
Noncash Investing and Financing Activities      
Asset retirement obligation incurred during development 89,923 695,553 439,528
Asset retirement obligation acquired 2,780,280 0 2,090,777
Asset retirement obligation revision of estimate (78,480) 133,794 53,826
Asset retirement obligation sold (65,129) (3,219,651) (5,340,211)
Operating lease assets obtained in exchange for new operating lease liability 0 0 1,713,677
Financing lease assets obtained in exchange for new financing lease liability, net [1] 707,964 738,240 894,996
Change in capitalized expenditures attributable to drilling projects financed through current liabilities 1,039,445 (3,896,948) (2,241,192)
Delaware Basin      
Cash Flows From Investing Activities      
Proceeds from sale of properties 0 0 7,600,699
New Mexico Divestiture      
Cash Flows From Investing Activities      
Proceeds from sale of New Mexico properties 0 (144,398) 3,891,757
CBP Vertical Wells      
Cash Flows From Investing Activities      
Proceeds from sale of properties 0 5,500,000 0
Stronghold Acquisition      
Cash Flows From Investing Activities      
Payments for acquisitions 0 0 (18,511,170)
Investing Activities - Cash Paid      
Payment of deferred cash payment 0 0 15,000,000
Payment of post-close settlement 0 0 3,511,170
Payment for acquisition 0 0 18,511,170
Founders Acquisition      
Cash Flows From Investing Activities      
Payments for acquisitions 0 0 (62,227,145)
Investing Activities - Cash Paid      
Cash paid 0 0 42,502,799
Deposit in escrow 0 0 7,500,000
Interest from escrow deposit 0 0 1,747
Direct transaction costs 0 0 1,361,843
Post-close adjustments 0 0 (4,139,244)
Payment of deferred cash payment 0 0 15,000,000
Payment for acquisition 0 0 62,227,145
Investing Activities - Noncash      
Assumption of suspense liability 0 0 677,116
Assumption of asset retirement obligation 0 0 2,090,777
Assumption of ad valorem tax liability 0 0 234,051
Deferred cash payment at fair value 0 0 14,657,383
Lime Rock Acquisition      
Cash Flows From Investing Activities      
Payments for acquisitions (81,863,429) 0 0
Investing Activities - Cash Paid      
Cash paid 63,599,939 0 0
Deposit in escrow 5,000,000 0 0
Direct transaction costs 2,576,648 0 0
Cash paid for fixed assets acquired (34,275) 0 0
Purchase price adjustments paid to third parties 1,427,233 0 0
Post-close adjustments (706,116) 0 0
Payment of deferred cash payment 10,000,000 0 0
Payment for acquisition 81,863,429 0 0
Investing Activities - Noncash      
Assumption of suspense liability 459,096 0 0
Assumption of ad valorem tax liability 405,549 0 0
Assumption of asset retirement obligation 2,587,179 0 0
Deferred cash payment at fair value 9,415,066 0 0
Financing Activities - Noncash      
Common stock issued for acquisition $ 7,420,811 $ 0 $ 0
[1] Included within the financing lease assets obtained in exchange for new financing lease liability, net, is $144,216 and $45,436 of finance lease asset terminations for the years ended December 31, 2025 and 2024, respectively.