Acquisitions of Assets and Oil and Gas Properties

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions of Assets and Oil and Gas Properties

Acquisitions of Assets and Oil and Gas Properties

2024 Acquisitions

On August 30, 2024, the Company closed the previously announced acquisition of oil and natural gas properties in the Cherokee Play of the Western Anadarko Basin, pursuant to the Purchase and Sale Agreement signed on July 29, 2024, as amended on August 30, 2024 (the “Cherokee Play Acquisition”). The Company funded the acquisition with cash on hand. The Cherokee Play Acquisition has been accounted for as an asset acquisition in accordance with ASC 805. The fair value of the consideration paid by the Company and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on the Company’s books as of the date of the closing. Determining the fair value of the assets acquired and liabilities assumed requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of oil and natural gas properties. The inputs and assumptions related to the oil and natural gas properties are categorized as Level 3 in the fair value hierarchy.

The following table represents the allocation of the total cost of the Cherokee Play Acquisition to the assets acquired and liabilities assumed after customary post-closing adjustments:

	(in thousands)
Total Consideration
Cash paid	$	121,908
Allocation of Total Consideration
Assets
Oil and natural gas properties	$	129,825
Total Assets	$	129,825
Liabilities(1)
Accounts payable and accrued expenses	$	7,917
Total liabilities assumed	7,917
Net Assets Acquired and Liabilities Assumed	$	121,908

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(1)    Asset retirement obligations assumed were de minimis.

On December 13, 2024, the Company closed an acquisition that increased its ownership interest in proved and unproved oil and gas properties within the Cherokee Play for $5.2 million, before customary post-closing adjustments. The Company used its cash on hand to fund the acquisition.

On June 13, 2024, the Company closed an acquisition that increased its ownership interest in twenty-nine producing wells and five saltwater disposal wells for $2.1 million, before customary post-closing adjustments. The Company used its cash on hand to fund the acquisition.

2023 Acquisitions

On July 11, 2023, the Company closed an acquisition that increased its ownership interest in twenty-six producing wells operated by the Company within the Northwest Stack play for $10.6 million, after customary post-closing adjustments, with an effective date of April 1, 2023. The Company used its cash on hand to fund the acquisition.