Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING (Tables)

v3.26.1
SEGMENT REPORTING (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
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.
For the Three Months Ended March 31,
2026 2025
Exploration and Production
Oil, natural gas, and natural gas liquids revenues (1)
$ 73,671,664  $ 79,091,207 
Lease operating expenses (2)
(18,122,344) (19,677,552)
Gathering, transportation and processing costs (117,049) (203,612)
Ad valorem taxes (2,202,537) (1,532,108)
Oil and natural gas production taxes (3,553,891) (3,584,455)
Exploration and Production segment profit $ 49,675,843  $ 54,093,480 
(1) All of the Company's revenues are generated 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.
For the Three Months Ended March 31,
2026 2025
Lease operating expenses:
Workovers $ 3,243,603  $ 2,816,209 
Other lease operating expenses $ 14,878,741  $ 16,861,343 
Total lease operating expenses $ 18,122,344  $ 19,677,552 
The following tables include a reconciliation of the total reportable segments' measures of profit or loss to the Company's total income (loss) before income taxes. Additionally included is a reconciliation between the reportable segments' assets to the Company's total assets.
For the Three Months Ended March 31, 2026
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 73,671,664  $ —  $ 73,671,664 
Lease operating expenses (18,122,344) —  (18,122,344)
Gathering, transportation and processing costs (117,049) —  (117,049)
Ad valorem taxes (2,202,537) —  (2,202,537)
Oil and natural gas production taxes (3,553,891) —  (3,553,891)
Depreciation, depletion and amortization (3)
—  (21,405,948) (21,405,948)
Ceiling test impairment (3)
—  (162,086,257) (162,086,257)
Asset retirement obligation accretion —  (395,496) (395,496)
Operating lease expense —  (175,091) (175,091)
General and administrative expense —  (7,438,778) (7,438,778)
Interest income —  70,529  70,529 
Interest (expense) —  (8,599,609) (8,599,609)
Gain (loss) on derivative contracts —  (82,230,925) (82,230,925)
Other income —  5,837  5,837 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 49,675,843  $ (282,255,738) $ (232,579,895)
Total Assets (3)
$ 1,227,888,816  $ 26,826,538  $ 1,254,715,354 
Capital expenditures $ 34,505,509  $ —  $ 34,505,509 
(3) All of the Company's assets are located within the United States. As the CODM does not view depreciation, depletion and amortization or ceiling test impairment as a significant Exploration and Production segment expense, the Company has included these amounts within the Corporate column of the reconciliation table.
For the Three Months Ended March 31, 2025
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 79,091,207  $ —  $ 79,091,207 
Lease operating expenses (19,677,552) —  (19,677,552)
Gathering, transportation and processing costs (203,612) —  (203,612)
Ad valorem taxes (1,532,108) —  (1,532,108)
Oil and natural gas production taxes (3,584,455) —  (3,584,455)
Depreciation, depletion and amortization (3)
—  (22,615,983) (22,615,983)
Ceiling test impairment (3)
—  —  — 
Asset retirement obligation accretion —  (326,549) (326,549)
Operating lease expense —  (175,091) (175,091)
General and administrative expense —  (8,619,976) (8,619,976)
Interest income —  90,058  90,058 
Interest (expense) —  (9,498,786) (9,498,786)
Gain (loss) on derivative contracts —  (928,790) (928,790)
Gain (loss) on disposal of assets —  124,610  124,610 
Other income —  8,942  8,942 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 54,093,480  $ (41,941,565) $ 12,151,915 
Total Assets (3)
$ 1,482,143,321  $ 23,466,953  $ 1,505,610,274 
Capital expenditures $ 32,451,531  $ —  $ 32,451,531 
(3) All of the Company's assets are located within the United States. As the CODM does not view depreciation, depletion and amortization or ceiling test impairment as a significant Exploration and Production segment expense, the Company has included these amounts within the Corporate column of the reconciliation table.
Schedule of Purchasers of Revenues
The following table discloses the purchasers from which 10% or more of revenues were derived in the periods noted.
For the Three Months Ended March 31,
2026 2025
Purchasers with 10% or more percentage of total revenue (4)
Phillips 66 Company 69% 67%
Concord Energy LLC 12% 13%
NGL Crude Partners * 10%
Energy Transfer Crude Marketing 14% *
(4) All the Company's purchasers are within the Exploration and Production operating segment.
* Represents less than 10%.