COMMITMENTS & CONTINGENCIES

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Litigation

The Company is engaged in various proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including, but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Company’s opinion that the outcome of the various legal actions and claims that are incidental to its business will not have a material impact on the Company’s financial position, results of operations or cash flows. Such matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance.

The Company’s interests in certain crude oil and natural gas leases from the State of North Dakota are subject to an ongoing dispute over the ownership of minerals underlying the bed of the Missouri River within the boundaries of the Fort Berthold Reservation. The ongoing dispute is between the State of North Dakota and three affiliated tribes, both of whom have purported to lease mineral rights in tracts of riverbed within the reservation boundaries.

Delivery Commitments

As of December 31, 2024, the Company had certain agreements associated with the Company’s Appalachian Basin properties which require the Company to deliver firm quantities of natural gas to certain third parties, which we seek to fulfill with products from existing reserves. In the event we are not able to meet these firm commitments, we are subject to deficiency payments.

The estimable future commitments under these volume commitment agreements as of December 31, 2024 are as follows:


(in Bcf)			Commitment Volumes

2025			3.2
Total			3.2

The Company recognizes any deficiency payments in the period in which the under-delivery takes place pursuant to the agreements and the related liability has been incurred. For the years ended December 31, 2024, 2023 and 2022, the Company made deficiency payments totaling $4.2 million, $8.9 million and $8.5 million, respectively. These amounts are recognized in operating expenses in the Company’s Statements of Operations. The amount and timing of any such deficiency payments that may be incurred in the future cannot be accurately estimated.

Joint Development Agreement

In December 2024, the Company entered into a Joint Development Agreement (“JDA”) with an operator to jointly develop certain natural gas and NGL properties in the Appalachian Basin. Pursuant to the JDA, the Company is required to participate in and fund a share of total development capital expenses for wells spud during calendar year 2025. The Company’s total capital commitment for wells spud in calendar year 2025 is expected to not exceed $160.0 million for a 15% working interest.