Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING (Tables)

v3.26.3
SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 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 September 30, For the Nine Months Ended September 30,
2026 2025 2026 2025
Exploration and Production
Oil, natural gas, and natural gas liquids revenues (1)
$ 102,343,662  $ 78,601,336  $ 280,696,815  $ 240,295,302 
Lease operating expenses (2)
(19,367,227) (20,518,472) (55,899,033) (60,442,005)
Gathering, transportation and processing costs (180,787) (126,569) (399,738) (463,990)
Ad valorem taxes (2,210,911) (2,446,565) (6,615,608) (5,627,320)
Oil and natural gas production taxes (4,584,698) (3,670,987) (13,186,208) (11,088,049)
Exploration and Production segment profit $ 76,000,039  $ 51,838,743  $ 204,596,228  $ 162,673,938 
(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 September 30, For the Nine Months Ended September 30,
2026 2025 2026 2025
Lease operating expenses:
Workovers $ 3,531,610  $ 3,027,065  $ 10,218,391  $ 9,017,112 
Other lease operating expenses 15,835,617  17,491,407  45,680,642  51,424,893 
Total lease operating expenses $ 19,367,227  $ 20,518,472  $ 55,899,033  $ 60,442,005 
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 September 30, 2026
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 102,343,662  $ —  $ 102,343,662 
Lease operating expenses (19,367,227) —  (19,367,227)
Gathering, transportation and processing costs (180,787) —  (180,787)
Ad valorem taxes (2,210,911) —  (2,210,911)
Oil and natural gas production taxes (4,584,698) —  (4,584,698)
Depreciation, depletion and amortization (3)
—  (20,900,733) (20,900,733)
Ceiling test impairment (3)
—  —  — 
Asset retirement obligation accretion —  (405,729) (405,729)
Operating lease expense —  (124,187) (124,187)
General and administrative expense —  (9,046,598) (9,046,598)
Interest income —  108,728  108,728 
Interest (expense) —  (7,695,843) (7,695,843)
Gain (loss) on derivative contracts —  (53,200,280) (53,200,280)
Gain (loss) on disposal of assets —  52,331  52,331 
Other income —  —  — 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 76,000,039  $ (91,212,311) $ (15,212,272)
Total Assets (3)
$ 1,289,211,506  $ 28,521,360  $ 1,317,732,866 
Capital expenditures $ 64,035,184  $ —  $ 64,035,184 
(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 September 30, 2025
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 78,601,336  $ —  $ 78,601,336 
Lease operating expenses (20,518,472) —  (20,518,472)
Gathering, transportation and processing costs (126,569) —  (126,569)
Ad valorem taxes (2,446,565) —  (2,446,565)
Oil and natural gas production taxes (3,670,987) —  (3,670,987)
Depreciation, depletion and amortization (3)
—  (25,225,345) (25,225,345)
Ceiling test impairment (3)
—  (72,912,330) (72,912,330)
Asset retirement obligation accretion —  (390,563) (390,563)
Operating lease expense —  (175,091) (175,091)
General and administrative expense —  (8,139,771) (8,139,771)
Interest income —  74,253  74,253 
Interest (expense) —  (10,052,320) (10,052,320)
Gain (loss) on derivative contracts —  444,305  444,305 
Gain (loss) on disposal of assets —  105,642  105,642 
Other income —  —  — 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 51,838,743  $ (116,271,220) $ (64,432,477)
Total Assets (3)
$ 1,401,663,623  $ 33,008,970  $ 1,434,672,593 
Capital expenditures $ 24,589,282  $ —  $ 24,589,282 
(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 Nine Months Ended September 30, 2026
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 280,696,815  $ —  $ 280,696,815 
Lease operating expenses (55,899,033) —  (55,899,033)
Gathering, transportation and processing costs (399,738) —  (399,738)
Ad valorem taxes (6,615,608) —  (6,615,608)
Oil and natural gas production taxes (13,186,208) —  (13,186,208)
Depreciation, depletion and amortization (3)
—  (62,421,571) (62,421,571)
Ceiling test impairment (3)
—  (162,086,257) (162,086,257)
Asset retirement obligation accretion —  (1,203,169) (1,203,169)
Operating lease expense —  (474,368) (474,368)
General and administrative expense —  (24,439,606) (24,439,606)
Interest income —  327,797  327,797 
Interest (expense) —  (24,675,004) (24,675,004)
Gain (loss) on derivative contracts —  (111,706,779) (111,706,779)
Gain (loss) on disposal of assets —  156,481  156,481 
Other income —  15,437  15,437 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 204,596,228  $ (386,507,039) $ (181,910,811)
Total Assets (3)
$ 1,289,211,506  $ 28,521,360  $ 1,317,732,866 
Capital expenditures $ 141,709,849  $ —  $ 141,709,849 
(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 Nine Months Ended September 30, 2025
Exploration and Production Corporate Total Company
Oil, Natural Gas, and Natural Gas Liquids Revenues $ 240,295,302  $ —  $ 240,295,302 
Lease operating expenses (60,442,005) —  (60,442,005)
Gathering, transportation and processing costs (463,990) —  (463,990)
Ad valorem taxes (5,627,320) —  (5,627,320)
Oil and natural gas production taxes (11,088,049) —  (11,088,049)
Depreciation, depletion and amortization (3)
—  (73,411,242) (73,411,242)
Ceiling test impairment (3)
—  (72,912,330) (72,912,330)
Asset retirement obligation accretion —  (1,099,363) (1,099,363)
Operating lease expense —  (525,272) (525,272)
General and administrative expense —  (23,898,266) (23,898,266)
Interest income —  233,969  233,969 
Interest (expense) —  (31,308,510) (31,308,510)
Gain (loss) on derivative contracts —  14,163,569  14,163,569 
Gain (loss) on disposal of assets —  385,545  385,545 
Other income —  159,712  159,712 
Income (Loss) Before Benefit from (Provision for) Income Taxes $ 162,673,938  $ (188,212,188) $ (25,538,250)
Total Assets (3)
$ 1,401,663,623  $ 33,008,970  $ 1,434,672,593 
Capital expenditures $ 73,868,326  $ —  $ 73,868,326 
(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 September 30, For the Nine Months Ended September 30,
2026 2025 2026 2025
Purchasers with 10% or more percentage of total revenue (4)
Purchaser A 72% 67% 72% 66%
Purchaser B * 12% 11% *
Purchaser C 10% 12% 11% 13%
(4) All the Company's purchasers are within the Exploration and Production operating segment.
* Represents less than 10%.