Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting

Segment Reporting

Note 16. Segment Reporting

The Company’s operations are all related to the exploration, development and production of oil and natural gas in the United States, from which the Company derives all of its revenues. The Company manages its business as a single reportable segment, as its operations are focused on assets with similar economic characteristics, production processes, types of purchasers, regulatory environment and customers which are consistent across the Company. Therefore, the Company aggregates its operating regions into one reportable segment.

The Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer, who reviews the financial information on a consolidated basis. The CODM uses consolidated net income to assess financial performance, allocating capital and other resources. The CODM uses consolidated net income in the annual budgeting and monthly forecasting process. Additionally, our CODM is regularly provided information on lease operating expense, gathering, processing and transportation and taxes other than income. Other segment items primarily consists of DD&A, accretion expense, general and administrative expense, pipeline incident loss, loss (gain) on commodity derivative, interest expense and income tax expense (benefit). Our significant segment expenses and other segment items are derived from and can be found within the Consolidated Statement of Operations.

The following table provides financial information with respect to the Company’s single reportable segment for the years ended December 31, 2024 and 2023:

	For the Year Ended
	December 31,
	2024		2023
Revenue	$	294,681	$	307,596
Less:
Lease operating expense		142,950		138,361
Gathering, processing and transportation		18,427		20,808
Taxes other than income		20,895		22,574
Other segment items		99,463		(266,897)
Net income (loss)	$	12,946	$	392,750