BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
|
| Schedule of Accounts, Notes, Loans and Financing Receivable |
The following table reflects the Company's beginning and ending balances of its accounts receivables from purchasers of its oil and gas for the three and nine months ended September 30, 2026 and September 30, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
| Beginning balance of accounts receivable from purchasers of oil and gas |
$ |
41,907,240 |
|
|
$ |
36,251,914 |
|
| Ending balance of accounts receivable from purchasers of oil and gas |
48,168,956 |
|
|
32,354,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
| Beginning balance of accounts receivable from purchasers of oil and gas |
$ |
29,591,571 |
|
|
$ |
33,774,968 |
|
| Ending balance of accounts receivable from purchasers of oil and gas |
48,168,956 |
|
|
32,354,972 |
|
The following table reflects the Company's accounts receivable from purchasers of its oil and gas and allowance for credit losses as of September 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
December 31, 2025 |
| Accounts receivable from purchasers of oil and gas |
$ |
48,261,388 |
|
|
$ |
29,591,571 |
|
| Allowance for credit losses |
(92,432) |
|
|
— |
|
| Accounts receivable from purchasers of oil and gas, net |
$ |
48,168,956 |
|
|
$ |
29,591,571 |
|
The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of September 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
December 31, 2025 |
| Joint interest billing receivables |
$ |
1,578,672 |
|
|
$ |
1,824,753 |
|
| Allowance for credit losses |
(251,633) |
|
|
(200,762) |
|
| Joint interest billing receivables, net |
$ |
1,327,039 |
|
|
$ |
1,623,991 |
|
|
| Schedule of Provisions for Credit Loss Expense |
The following table indicates the Company's provisions for credit loss expense associated with its accounts receivable from purchasers of its oil and gas ("O&G") during the three and nine months ended September 30, 2026 and September 30, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Credit loss expense, O&G |
$ |
— |
|
|
$ |
— |
|
|
$ |
92,432 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Credit loss expense, JIB |
$ |
50,871 |
|
|
$ |
907 |
|
|
$ |
50,871 |
|
|
$ |
19,029 |
|
|
| Schedule of Depletion and Depletion per Barrel of Oil Equivalents Rate |
The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Depletion |
$ |
20,616,930 |
|
|
$ |
24,902,199 |
|
|
$ |
61,588,426 |
|
|
$ |
72,381,413 |
|
| Depletion rate, per barrel-of-oil-equivalent (Boe) |
$ |
10.86 |
|
|
$ |
13.02 |
|
|
$ |
11.28 |
|
|
$ |
13.15 |
|
|
| Schedule of Property, Plant and Equipment Estimated Useful Lives |
Depreciation of buildings and structures, equipment, software, leasehold improvements, automobiles, and UAV is calculated using the straight-line method based upon the following estimated useful lives:
|
|
|
|
|
|
|
|
|
| Leasehold improvements |
|
3‑5 years |
| Office equipment and software |
|
3‑7 years |
| Equipment |
|
5‑10 years |
| Automobiles |
|
4 years |
| Buildings and structures |
|
7 years |
| UAV |
|
3 years |
|
| Schedule of Depreciation Expense |
The following table provides information on the Company's depreciation expense for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Depreciation |
$ |
72,479 |
|
|
$ |
105,933 |
|
|
$ |
214,912 |
|
|
$ |
309,211 |
|
|
| Schedule of Gain (Loss) on Disposal of Assets |
During the three and nine months ended September 30, 2026 and 2025, the Company recorded a gain (loss) on disposal of assets, which was impacted by the sale of owned vehicles, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Sale of owned vehicles |
$ |
— |
|
|
$ |
— |
|
|
$ |
23,142 |
|
|
$ |
(6,974) |
|
| Sale of leased vehicles |
52,331 |
|
|
105,642 |
|
|
133,339 |
|
|
392,519 |
|
| Gain (loss) on disposal of assets |
$ |
52,331 |
|
|
$ |
105,642 |
|
|
$ |
156,481 |
|
|
$ |
385,545 |
|
During the three and nine months ended September 30, 2026 and 2025, the Company recorded a gain (loss) on disposal of assets, which was impacted by the sale of leased vehicles, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Sale of owned vehicles |
$ |
— |
|
|
$ |
— |
|
|
$ |
23,142 |
|
|
$ |
(6,974) |
|
| Sale of leased vehicles |
52,331 |
|
|
105,642 |
|
|
133,339 |
|
|
392,519 |
|
| Gain (loss) on disposal of assets |
$ |
52,331 |
|
|
$ |
105,642 |
|
|
$ |
156,481 |
|
|
$ |
385,545 |
|
|
| Schedule of Weighted Average Notes Payable Balances and Interest Rate |
The following table reflects the weighted average notes payable balances and the weighted average interest rate on the weighted average notes payable outstanding during the period as of and for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
Weighted average notes payable balance |
|
$ |
1,306,897 |
|
|
$ |
1,295,192 |
|
|
$ |
659,230 |
|
|
$ |
646,316 |
|
| Weighted average interest rate on weighted average notes payable |
|
7.09 |
% |
|
7.94 |
% |
|
7.95 |
% |
|
8.85 |
% |
|
| Schedule of Interest Paid Related to Notes Payable |
The following table shows interest paid related to notes payable for the three and nine months ended September 30, 2026 and 2025. This interest is included within "Interest (expense)" in the Condensed Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Interest paid for notes payable |
|
$ |
23,172 |
|
|
$ |
25,710 |
|
|
$ |
39,319 |
|
|
$ |
42,876 |
|
|
| Schedule of Components of Income Tax Benefits (Provisions) |
The Company recorded the following federal and state income tax benefits (provisions) for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Deferred federal income tax benefit (provision) |
$ |
(1,571,208) |
|
|
$ |
12,558,220 |
|
|
$ |
8,589,134 |
|
|
$ |
3,965,817 |
|
| Current state income tax benefit (provision) |
124,460 |
|
|
(39,816) |
|
|
(30,776) |
|
|
(323,670) |
|
| Deferred state income tax benefit (provision) |
58,791 |
|
|
282,543 |
|
|
954,052 |
|
|
10,198 |
|
| Benefit from (Provision for) Income Taxes |
$ |
(1,387,957) |
|
|
$ |
12,800,947 |
|
|
$ |
9,512,410 |
|
|
$ |
3,652,345 |
|
|
|
|
|
|
|
|
|
Effective tax rate (1)
|
(9.12)% |
|
19.87% |
|
5.23% |
|
14.30% |
(1) The Company’s overall effective tax rate is calculated as Benefit from (Provision for) Income Taxes divided by Income (Loss) Before Benefit from (Provision for) Income Taxes. The effective tax rates for the three and nine months ended September 30, 2026 were lower than the federal statutory corporate tax rate, primarily impacted by the recording of a valuation allowance on the Company's federal net deferred tax assets. A tax expense of $23.2 million related to the valuation allowance was recorded as part of the estimated annual effective tax rate in the nine months ended September 30, 2026. The effective tax rates for the three and nine months ended September 30, 2025 were lower than the federal statutory corporate tax rates, primarily impacted by state income taxes.
|
| Schedule of Share-Based Compensation Expense |
The following table summarizes the Company's share-based compensation, included with General and administrative expense within our Condensed Statements of Operations, incurred for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
| Share-based compensation |
$ |
2,497,039 |
|
|
$ |
1,618,600 |
|
|
$ |
6,171,443 |
|
|
$ |
4,661,397 |
|
Share-based compensation expense charged against income for share-based awards during the three and nine months ended September 30, 2026 and 2025 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
Share-based compensation expense from: |
|
|
|
|
|
|
|
|
Employee stock options |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Restricted stock unit grants |
|
1,440,421 |
|
|
1,097,438 |
|
|
4,170,754 |
|
|
3,367,412 |
|
Performance stock unit awards |
|
1,056,618 |
|
|
521,162 |
|
|
2,000,689 |
|
|
1,293,985 |
|
| Total share-based compensation |
|
$ |
2,497,039
|
|
|
$ |
1,618,600
|
|
|
$ |
6,171,443
|
|
|
$ |
4,661,397
|
|
|