Supplemental Oil and Gas Disclosures (Unaudited)

12 Months Ended

Dec. 31, 2024

Extractive Industries [Abstract]

Supplemental Oil and Gas Disclosures (Unaudited)

Note 20 – Supplemental Oil and Gas Disclosures (Unaudited)

Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration, and Development Activities

The following table presents the costs incurred in oil and natural gas acquisition, exploration, and development activities for the periods indicated:

	Year Ended December 31,
	2024		2023
	(In thousands)
Acquisition costs:
Proved properties	$	64,491	$	—
Unproved properties		630		28,705
Total acquisition costs		65,121		28,705
Exploration costs		734		264
Development costs		41,127		—
Total costs incurred	$	106,982	$	28,969

For the year ended December 31, 2024, the Company’s proved property acquisition costs incurred include $63.6 million of proved property acquired in the NRO Acquisition, $0.2 million of which relates to the asset retirement obligations costs assumed in the acquisition. Refer to Note 4 – Acquisitions and Merger for a further discussion.

For the year ended December 31, 2024, the development costs incurred includes $38.0 million of development costs for wells which were in the process of being completed and began producing in February 2025.

Proved Reserves

Proved reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible, from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations, prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. There are numerous uncertainties inherent in estimating the quantities of proved oil and natural gas reserves and periodic revisions to estimated reserves and future cash flows may be necessary as a result of numerous factors, including reservoir performance, new drilling, oil, natural gas, and NGL prices, changes in costs, technological advances, new geological or geophysical data, or other economic factors. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas ultimately recovered or reserve quantities reported by other entities.

The Company’s reserve estimates as of December 31, 2024, are based on reserve reports prepared by CG&A in accordance with the rules and regulations of the SEC in Regulation S-X, Rule 4-10. All of the Company’s proved reserves presented below are located in the DJ Basin. The Company’s estimated proved reserves and the related net revenues and Standardized Measure were determined using the 12-month unweighted arithmetic average of the first-day-of-the-month price for each month in the period January through December (“SEC Prices”). The SEC Prices are adjusted for treating costs and/or crude quality and gravity corrections. For the year ended December 31, 2024, SEC Prices, inclusive of adjustments, used in the calculations were $74.63 per Bbl of oil, $1.60 per Mcf of natural gas, and $21.63 per Bbl of NGLs.

The following table presents the quantities of the Company’s estimated proved, proved developed, and proved undeveloped oil, natural gas, and NGL reserves and the changes in the quantities of estimated proved oil, natural gas, and NGL reserves for the periods indicated:

	Oil (MBbl)		Natural Gas (MMcf)		NGLs (MBbl)		Total (MBoe)
Proved reserves as of January 1, 2024	—		—		—		—
Acquisitions of reserves	14,302		40,811		5,007		26,110
Production	(96	)	(245	)	(33	)	(170	)
Revisions to previous estimates	137		672		(71	)	179
Proved reserves as of December 31, 2024	14,343		41,238		4,903		26,119
Proved developed reserves	3,749		9,306		1,136		6,436
Proved undeveloped reserves	10,594		31,932		3,767		19,683

During the year ended December 31, 2024, the Company’s estimated proved reserves were 26.1 MMBoe, primarily comprised of acquisitions throughout the year. The NRO Acquisition, which closed on October 1, 2024, resulted in 23.3 MMBoe of estimated proved reserves and the acquisition of the Shelduck assets in February 2024 resulted in 2.8 MMBoe of estimated proved reserves.

Standardized Measure of Discounted Future Net Cash Flows

The Standardized Measure is the present value, discounted at 10%, of future net cash flows from estimated proved reserves calculated using the 12-month unweighted arithmetic average of the first-day-of-the-month price for each month in the period January through December (with consideration of price changes only to the extent provided by contractual arrangements). The estimated future net cash flows are reduced by projected future development, P&A, and production (excluding DD&A and any impairments of oil and natural gas properties) costs and estimated future income tax expenses.

Although the Company’s estimates of total proved reserves, development costs, and production rates were based on the best available information, the development and production of the oil and natural gas reserves may not occur in the periods assumed. Actual prices realized, costs incurred, and production quantities may vary significantly from those used. Therefore, the Standardized Measure should not be considered to represent the Company’s estimate of the expected revenues or the fair value of its proved oil, natural gas, and NGL reserves.

The following table presents the Standardized Measure relating to the Company’s estimated proved oil and natural gas reserves for the periods indicated:

		Year Ended December 31,
		2024			2023
		(In thousands)
Future cash inflows	$	1,242,476		$	—
Future production costs		(452,805	)		—
Future development and abandonment costs		(295,105	)		—
Future income taxes		(75,793	)		—
Future net cash flows		418,773			—
10% annual discount for estimated timing of cash flows		(163,631	)		—
Standardized Measure	$	255,142		$	—

The following table presents the changes in the Standardized Measure relating to the Company’s estimated proved oil and natural gas reserves for the periods indicated:

		Year Ended December 31,
		2024			2023
		(In thousands)
Standardized Measure at the beginning of the period	$	—		$	—
Net change in sales prices and production costs related to future production		(5,496	)		—
Sales and transfers of oil and natural gas produced, net of production costs		(5,220	)		—
Purchases of reserves		279,255			—
Revisions of previous quantity estimates		4,108			—
Development and abandonment costs incurred during the period		29,754			—
Accretion of discount		3,642			—
Net change in income taxes		(48,018	)		—
Changes in production rates, timing, and other		(2,883	)		—
Changes in estimated future development and abandonment costs		—			—
Extensions, discoveries, and other additions, net of future production and development costs		—			—
Net increase in Standardized Measure		255,142			—
Standardized Measure at the end of the period	$	255,142		$	—