Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 30, 2025

Summary of Significant Accounting Policies [Abstract]

Revenue Recognition

Revenue Recognition

The Company recognizes revenue from the sales of oil, natural gas, and NGLs at the point that control of the produced oil, natural gas, and NGL volumes are transferred to the customer.

The Company considers the transfer of control to have occurred when the production is delivered to the purchaser because at that time, the purchaser has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the oil, natural gas, or NGL production. Transfer of control dictates the presentation of the Company’s transportation and processing expenses within its condensed consolidated statements of operations. Transportation and processing expenses incurred prior to the transfer of control are recorded gross within transportation and processing in the accompanying condensed consolidated statements of operations.

Additionally, the Company has made an accounting election to exclude certain qualifying taxes collected from customers and remitted to governmental authorities from its reported revenues and is presenting those amounts as a component of operating expense in the accompanying condensed consolidated statements of operations. The amounts due from purchasers are accrued in oil, natural gas, and NGL revenue accounts receivable on the accompanying condensed consolidated balance sheets. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. Historically, any identified differences between the Company’s revenue estimates and actual revenues have not been significant.

The following table presents the Company’s oil, natural gas, and NGL revenue disaggregated by revenue stream:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025 (1)		2024
	(In thousands)
Crude oil sales	$	64,906	$	—	$	133,635	$	—
Natural gas sales		7,571		—		14,105		—
NGL sales		5,244		—		10,898		—
Total revenues	$	77,721	$	—	$	158,638	$	—

⁽¹⁾ Total revenues for the nine months ended September 30, 2025, include revenue from the assets acquired from Bayswater (as defined herein) beginning on March 26, 2025, the closing date of the Bayswater Acquisition (as defined herein), through September 30, 2025.

Marketing

Marketing

One of the gas gathering and processing agreements acquired in the Bayswater Acquisition (as defined herein) requires a monthly minimum payment, which began in October 2019 and continues through September 2029. This monthly minimum payment is intended to reimburse the costs incurred by the counterparty to connect the gathering facility to the covered area. This gas gathering and processing agreement further allocates a portion of the counterparty’s firm commitments to transport natural gas liquids processed by the counterparty to those assets from July 2022 through September 2029. If the Company does not meet the minimum volume commitments under this agreement, it will be required to pay certain deficiency fees.

Treasury Stock

Treasury Stock

During the nine months ended September 30, 2025, the Company paid $0.4 million to repurchase 63,337 shares of vested restricted stock units from employees to cover such employees’ portion of the tax withholdings. The Company has presented the shares repurchased at cost as treasury stock on its condensed consolidated balance sheet as of September 30, 2025.

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information

The following table presents non–cash investing and financing activities and supplemental cash flow disclosures relating to the cash paid for interest and income taxes for the periods presented:

	Nine Months Ended September 30,
	2025		2024
	(In thousands)
Non–cash investing activities:
Increase in capital expenditure accruals and accounts payable	$	13,019	$	4,718
Equipment purchased in exchange for note payable	$	560	$	—
Bayswater transaction costs included in accrued liabilities	$	6,035	$	—
Additions to asset retirement obligation	$	483	$	—
Non–cash financing activities:
Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price (1)	$	16,000	$	—
Common Stock issuance costs included in accrued liabilities (2)	$	254	$	—
Common Stock issued for SEPA commitment fee (3)	$	—	$	600
Common Stock issued upon conversion of Senior Convertible Note (4)	$	18,164	$	—
Common Stock issued upon conversion of Series D Preferred Stock	$	8,475	$	6,170
Common Stock issued upon conversion of Series E Preferred Stock	$	—	$	20,000
Common Stock issued upon conversion of Series F Preferred Stock	$	27,148	$	—
Common Stock issued for Series F Preferred Stock dividends (5)	$	7,540	$	—
Proceeds from Senior Convertible Note issuance not yet received, net of original issuance discount (6)	$	—	$	14,250
Proceeds from Subordinated Note issuance not yet received – related party (6)	$	—	$	2,000
Supplemental disclosure:
Cash paid for interest	$	16,519	$	—
Cash paid for income taxes	$	—	$	—

⁽¹⁾ The Company issued approximately 3.7 million shares of Common Stock to Bayswater (as defined herein) as part of the Bayswater Purchase Price (as defined herein). Refer to Note 2 – Acquisitions for a discussion of the Bayswater Acquisition (as defined herein).

⁽²⁾ Relates to the Common Stock issued to partially fund the Bayswater Acquisition. Refer to Note 2 – Acquisitions for a discussion of the Bayswater Acquisition and Note 14 – Stockholders’ Equity for a discussion of the Common Stock issuance.

⁽³⁾ Pursuant to the Standby Equity Purchase Agreement (the “SEPA”), the Company issued 100,000 shares to YA II PN, LTD., a Cayman Islands exempt limited company (“Yorkville”) as a commitment fee. Refer to Note 10 – Debt for a discussion of the SEPA.

⁽⁴⁾ During the nine months ended September 30, 2025, Yorkville, converted the remaining $11.3 million of the initial $15.0 million convertible promissory note (the “Senior Convertible Note”) in exchange for 2.1 million shares of Common Stock. Refer to Note 10 – Debt for a discussion of the Senior Convertible Note.

⁽⁵⁾ The Company elected to issue shares of Common Stock for the Series F Preferred dividends payable on June 1 and September 1, 2025. Refer to Note 13 – Mezzanine Equity for a discussion of the Series F Preferred Stock.

⁽⁶⁾ Proceeds from the issuance of the Senior Convertible Note and the Subordinated Note were not received until October 1, 2024. Therefore, the Company recorded the unreceived proceeds as Financing receivables as of September 30, 2024. Refer to Note 10 – Debt for a discussion of the Senior Convertible Note and the Subordinated Note (as defined herein).

Recently Issued Accounting Pronouncements

Recently Issued Tax Legislation

On July 4, 2025, Public Law 119-21, commonly referred to as One Big Beautiful Bill Act (“OBBB”) was signed into law, resulting in several changes to the U.S. federal income tax laws. The legislation includes several changes to federal tax regulations and makes permanent, extends, or modifies certain provisions of Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act. These changes include, among others, permanently restoring earnings before interest, taxes, depreciation, and amortization expense-based business interest deduction limitation, 100% bonus depreciation for certain property and immediate expensing for certain domestic research and experimental expenditures. All effects of changes in tax legislation are recognized in the condensed consolidated financial statements during the period of enactment. As such, the effects of the OBBB are reflected in the Company’s assessment of its valuation allowance as of September 30, 2025. The Company does not expect the OBBB to have a material effect on income tax expense for the year ending December 31, 2025.