Supplemental Oil and Gas Information (Unaudited)

12 Months Ended

Dec. 31, 2024

Supplemental Oil and Gas Information (Unaudited)

Supplemental Oil and Gas Information (Unaudited)

Note 20. Supplemental Oil and Gas Information (Unaudited)

Capitalized Costs Relating to Oil and Natural Gas Producing Activities

The total amount of capitalized costs relating to oil and natural gas producing activities and the total amount of related accumulated depreciation, depletion and amortization is as follows at the dates indicated.

	December 31,
	2024		2023
	(In thousands)
Evaluated oil and natural gas properties	$	942,981	$	873,478
Support equipment and facilities		150,511		149,069
Accumulated depletion, depreciation, and amortization		(708,836)		(676,573)
Total	$	384,656	$	345,974

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

Costs incurred in property acquisition, exploration and development activities were as follows for the periods indicated:

	For the Year Ended
	December 31,
	2024		2023
	(In thousands)
Property acquisition costs, proved	$	—	$	—
Property acquisition costs, unproved		—		—
Exploration		—		—
Development		70,945		34,742
Total	$	70,945	$	34,742

Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves

As required by the FASB and SEC, the standardized measure of discounted future net cash flows presented below is computed by applying first-day-of-the-month average prices, year-end costs and legislated tax rates and a discount factor of 10 percent to proved reserves. We do not believe the standardized measure provides a reliable estimate of the Company’s expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its proved oil and gas reserves. The standardized measure is prepared on the basis of certain prescribed assumptions including first-day-of-the-month average prices, which represent discrete points in time and, therefore, may cause significant variability in cash flows from year to year as prices change.

Oil and Natural Gas Reserves

Users of this information should be aware that the process of estimating quantities of “proved” and “proved developed” oil and natural gas reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various reservoirs make these estimates generally less precise than other estimates included in the financial statement disclosures.

Proved reserves are those quantities of oil and natural gas that 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. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

We engaged CG&A to prepare our reserves estimates for all of our estimated proved reserves at December 31, 2024 and 2023. All proved reserves are located in the United States and all prices are held constant in accordance with SEC rules.

The weighted-average benchmark product prices used for valuing the reserves are based upon the average of the first-day-of-the-month price for each month within the period January through December of each year presented:

	2024		2023
Oil ($/Bbl):
WTI (1)	$	75.48	$	78.22
NGL ($/Bbl):
WTI (1)	$	75.48	$	78.22
Natural Gas ($/MMbtu):
Henry Hub (2)	$	2.13	$	2.64

(1) The weighted average WTI price was adjusted by lease for quality, transportation fees, and a regional price differential.

(2) The weighted average Henry Hub price was adjusted by lease for energy content, compression charges, transportation fees, and regional price differentials.

The following tables set forth estimates of the net reserves for the periods indicated:

	For the Year Ended December 31, 2024
	Oil	Gas	NGLs	Total
	(MBbls)	(MMcf)	(MBbls)	(MBoe)
Proved developed and undeveloped reserves:
Beginning of year	41,078	226,878	19,185	98,077
Production	(3,060)	(16,836)	(1,278)	(7,144)
Revision of previous estimates	2,457	(3,506)	159	2,030
End of year	40,475	206,536	18,066	92,963
Proved developed reserves:
Beginning of year	39,306	226,427	19,108	96,151
End of year	31,392	197,621	17,879	82,207
Proved undeveloped reserves:
Beginning of year	1,772	451	77	1,926
End of year	9,083	8,915	187	10,756

	For the Year Ended December 31, 2023
	Oil	Gas	NGLs	Total
	(MBbls)	(MMcf)	(MBbls)	(MBoe)
Proved developed and undeveloped reserves:
Beginning of year	47,868	312,792	24,026	124,027
Production	(2,773)	(20,297)	(1,323)	(7,479)
Revision of previous estimates	(4,017)	(65,617)	(3,518)	(18,471)
End of year	41,078	226,878	19,185	98,077
Proved developed reserves:
Beginning of period	47,010	312,185	23,928	122,969
End of period	39,306	226,427	19,108	96,151
Proved undeveloped reserves:
Beginning of period	858	607	98	1,058
End of period	1,772	451	77	1,926

Noteworthy amounts included in the categories of proved reserve changes in the above tables include:

● The 5.1 MMBoe decrease in reserves for the year ended December 31, 2024 was primarily due to production of 7.1 MMBoe, a 6.9 MMBoe decrease as a result of changes in commodity prices and 4.8 MMBoe decrease primarily due higher electricity costs and shorter economic limit at Bairoil. This decrease was partially offset by the additional 31 (23 operated Beta) PUD locations which added 9.39 MMBoe, lower maintenance costs primarily at East Texas and Oklahoma of 3.36 MMBoe and a positive technical revision of 0.97 MMBoe.

● The 26.0 MMBoe decrease in reserves for the year ended December 31, 2023 was primarily due to production of 7.5 MMBoe, a 17.8 MMBoe decrease as a result of changes in commodity prices and 2.5 MMBoe decrease due to higher maintenance costs. This decrease was partially offset by the addition of 4 Beta PUD locations budgeted in 2024, which added 1.1 MMBoe and a positive technical revision of 0.7 MMBoe.

A variety of methodologies are used to determine our proved reserve estimates. The principal methodologies employed are reservoir simulation, decline curve analysis, volumetric, material balance, advance production type curve matching, petro-physics/log analysis and analogy. Some combination of these methods is used to determine reserve estimates in substantially all of our fields.

The standardized measure of discounted future net cash flows is as follows:

	For the Year Ended
	December 31,
	2024		2023
	(In thousands)
Future cash inflows	$	3,818,663	$	4,277,014
Future production costs (1)		(2,217,101)		(2,751,065)
Future development costs (1)		(467,142)		(313,290)
Future income tax expense		(204,262)		(203,770)
Future net cash flows for estimated timing of cash flows		930,158		1,008,889
10% annual discount for estimated timing of cash flows		(321,919)		(382,759)
Standardized measure of discounted future net cash flows	$	608,239	$	626,130

(1) For the years ended December 31, 2024 and 2023, onshore abandonment costs are included in future production cost and offshore abandonment costs are included in future development costs.

Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves

The following is a summary of the changes in the standardized measure of discounted future net cash flows for the proved oil and natural gas reserves during each of the years in the two-year period presented:

	For the Year Ended
	December 31,
	2024		2023
	(In thousands)
Beginning of year	$	626,130	$	1,337,956
Changes in prices and costs		(124,770)		(798,942)
Revisions of previous quantities		142,763		(196,093)
Sale of oil and natural gas produced, net of production costs		(100,658)		(106,469)
Net change in taxes		3,356		180,530
Accretion of discount		75,701		164,937
Change in production rates and other		(23,979)		38,174
Net changes in future development costs		(2,985)		(3,669)
Previously estimated development costs incurred		12,681		9,706
End of year	$	608,239	$	626,130