Supplemental Information on Oil and Natural Gas Operations (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2021

Extractive Industries [Abstract]

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure

The following summarizes the costs incurred for oil and natural gas property acquisition, exploration and development activities for the years ended September 30, 2021 and 2020:

	Years Ended September 30,
	2021		2020
	(In thousands)
Acquisition of properties
Proved	$	74	$	1,187
Unproved	1,562		5,331
Exploration costs	7,993		8,039
Development costs	59,948		43,684
Total costs incurred	$	69,577	$	58,241

Results of Operations for Oil and Gas Producing Activities Disclosure

The following table includes revenues and expenses associated with the Company's oil and natural gas producing activities. They do not include any allocation of the Company's interest costs or general corporate overhead. For the year ended September 30, 2020, they also do not include estimated corporate taxes since the Company was not a taxpaying entity for federal income tax purposes. Therefore, the following schedule is not necessarily indicative of the contribution of net earnings of the Company's oil and natural gas operations.

	Years Ended September 30,
	2021		2020
	(In thousands)
Oil, natural gas and NGL sales	$	148,636	$	73,133
Lease operating expenses	21,975		20,243
Production and ad valorem taxes	8,636		4,280
Exploration costs	9,566		9,923
Depletion, accretion and amortization	25,347		20,936
Results of operations	83,112		17,751
Income tax expense (1)	(13,505)		—
Results of operations, net of income tax expense	$	69,607	$	17,751

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(1)    Subsequent to the Closing Date of the Merger, the statutory combined federal and state tax rate of 21.59% is used. Prior to the Closing Date of the Merger and for the year ended September 30, 2020, the Company was a flow-through entity for federal income tax purposes. As such, no taxes are reflected here as taxable income was passed through to its members.

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities

The following table sets forth information for the years ended September 30, 2021 and 2020 with respect to changes in the Company’s proved (i.e. proved developed and undeveloped) reserves:

	Oil	Natural Gas	NGLs	Total
	(MBbl)	(MMcf)	(MBbl)	(MBoe)
September 30, 2019	37,159	40,991	10,812	54,803
Extensions and discoveries	2,265	3,030	642	3,412
Revisions	(206)	11,290	(513)	1,163
Production	(2,060)	(1,628)	(260)	(2,591)
September 30, 2020	37,158	53,683	10,681	56,787
Extensions and discoveries	9,308	12,089	2,436	13,759
Revisions	2,138	12,850	492	4,772
Production	(2,341)	(2,603)	(380)	(3,155)
September 30, 2021	46,263	76,019	13,229	72,163
Proved Developed Reserves, Included Above
September 30, 2019	19,198	23,096	6,045	29,092
September 30, 2020	19,149	31,137	5,847	30,186
September 30, 2021	26,170	46,173	7,650	41,516
Proved Undeveloped Reserves, Included Above
September 30, 2019	17,961	17,895	4,767	25,711
September 30, 2020	18,009	22,546	4,834	26,601
September 30, 2021	20,093	29,846	5,579	30,647

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

The following summary sets forth the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure prescribed in ASC Topic 932:

	September 30,
	2021		2020
	(In thousands)
Future crude oil, natural gas and NGLs sales (1) (2)	$	2,783,910	$	1,533,286
Future production costs	(839,167)		(550,427)
Future development costs	(218,765)		(144,912)
Future income tax expense (3)	(324,487)		(3,167)
Future net cash flows	1,401,491		834,780
10% annual discount	(848,555)		(532,442)
Standardized measure of discounted future net cash flows	$	552,936	$	302,338

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(1)    2021 proved reserves were derived based on prices of $55.73 of oil, $0.99 of natural gas and $9.83 of NGL.

(2)    2020 proved reserves were derived based on prices of $41.91 of oil, $(0.06) of natural gas and $(1.96) of NGL.

(3)    The Company's calculations of the standardized measure of discounted future net cash flows as of September 30, 2020 included the Company’s obligation for Texas Margin Tax but excluded the effect of estimated future income tax expenses as the Company was a limited liability company and not subject to income taxes.

Principal sources of change in the Standardized Measure are shown below:

	Year Ended September 30,
	2021		2020
	(In thousands)
Balance, beginning of period	$	302,338	$	442,212
Sales of crude oil, natural gas and NGLs, net	(118,030)		(48,611)
Net change in prices and production costs	237,475		(162,571)
Net changes in future development costs	(18,856)		(12,348)
Extensions and discoveries	144,392		17,490
Revisions of previous quantity estimates	50,283		7,328
Previously estimated development costs incurred	12,844		10,448
Net change in income taxes	(124,625)		891
Accretion of discount	30,551		44,627
Other	36,564		2,872
Balance, end of period	$	552,936	$	302,338