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Summary of Significant Accounting Policies
 3 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Significant Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include, but are not limited to, estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, accrued capital expenditures and operating expenses, AROs, the fair value determination of acquired assets and assumed liabilities, certain tax accruals and the fair value of derivatives.
Accounts Receivable
Accounts receivable is summarized below:
December 31, 2021September 30, 2021
(In thousands)
Oil, natural gas and NGL sales$17,562 $17,008 
Joint interest accounts receivable409 413 
Realized derivative receivable— 42 
Other accounts receivable31 10 
Total accounts receivable$18,002 $17,473 
The Company had no allowance for doubtful accounts at December 31, 2021 and September 30, 2021.
Other Non-Current Assets, Net
Other non-current assets consisted of the following:
December 31, 2021September 30, 2021
(In thousands)
Deferred financing costs, net$1,345 $1,353 
Prepayments to outside operators690 707 
Right of use assets208 309 
Other deposits50 50 
Total other non-current assets, net$2,293 $2,419 
Accrued Liabilities
Accrued liabilities consisted of the following:
December 31, 2021September 30, 2021
(In thousands)
Accrued capital expenditures$5,618 $9,718 
Accrued lease operating expenses2,534 2,428 
Accrued general and administrative costs3,404 4,375 
Other accrued expenditures1,318 2,834 
Total accrued liabilities$12,874 $19,355 
Asset Retirement Obligations
Components of the changes in ARO for the three months ended December 31, 2021 and year ended September 30, 2021 are shown below:
December 31, 2021September 30, 2021
(In thousands)
ARO, beginning balance$2,434 $2,326 
Liabilities incurred56 113 
Liability settlements and disposals(58)(92)
Accretion21 87 
ARO, ending balance2,453 2,434 
Less: current ARO(1)
(192)(128)
ARO, long-term$2,261 $2,306 
_____________________
(1)Current ARO is included within other current liabilities on the accompanying condensed consolidated balance sheets.

Revenue Recognition
The following table presents oil and natural gas sales disaggregated by product:
Three Months Ended December 31,
20212020
(In thousands)
Oil and natural gas sales:
Oil$50,623 $22,107 
Natural gas2,705 119 
Natural gas liquids3,322 188 
Total oil and natural gas sales, net$56,650 $22,414 
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance and is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company adopted this ASU effective October 1, 2021. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements.
Issued Accounting Standards Not Yet Adopted
In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 840): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates (e.g., LIBOR) that are expected to be discontinued. ASU 2020-04 allows, among other things, certain contract modifications, such as those within the scope of Topic 470 on debt, to be accounted as a continuation of the existing contract. This ASU was effective upon the issuance and its optional relief can be applied through December 31, 2022.