The Company has been and is actively engaged in the purchase of mineral rights in the Permian Basin in West Texas and southeastern New Mexico. Additionally, the Company owns mineral rights in the Eagle Ford Shale in South Texas and the Appalachian Basin in Pennsylvania, Ohio and West Virginia. The following is a summary of oil and natural gas properties as of June 30, 2022 and December 31, 2021 (in thousands):


Oil and natural gas properties:	June 30, 2022			December 31, 2021
Unproved properties	$	1,489,217		$	817,873
Proved properties		829,736			447,369
Oil and natural gas properties, gross		2,318,953			1,265,242
Accumulated depletion and impairment		(153,141	)		(118,175	)
Oil and natural gas properties, net	$	2,165,812		$	1,147,067

As presented in the condensed consolidated statements of cash flows for the six months ended June 30, 2022, the Company paid $356.8 million for mineral acquisition costs. Additionally, the Company acquired mineral and royalty interests of $696.6 million through issuance of Class C Common Stock as a result of the Merger. Please see “Note 3 – Reverse Merger” for additional information regarding the Merger.

As presented in the condensed consolidated statements of cash flows for the six months ended June 30, 2021, the Predecessor paid $1.9 million for mineral acquisition costs and paid $63,000 related to purchase price adjustments from prior property sales. Additionally, the Predecessor acquired mineral and royalty interests of $319.2 million in two separate transactions in exchange for equity interests in a subsidiary of the Predecessor. Please see “Note 6 – Acquisitions” for additional information regarding these transactions.

The Company uses the successful efforts method of accounting for its oil and gas properties. Capitalized costs are depleted on a unit of production basis based on proved oil and natural gas reserves. Depletion expense was $19.7 million and $8.8 million for the three months ended June 30, 2022 and 2021, respectively. Depletion expense was $35.0 million and $15.5 million for the six months ended June 30, 2022 and 2021, respectively.