Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

17. Fair Value Measurements

The methodologies used to determine the fair value of our financial assets and liabilities at September 30, 2025 were the same as those used at December 31, 2024.

Cash and cash equivalents, restricted cash, accounts receivable, and accounts payable are carried at cost, which approximates their fair value because of the short-term maturity of these instruments. The Company’s revolving line of credit has a recorded value that approximates its fair value since its variable interest rate is tied to current market rates and the applicable margins represent market rates. The revolving line of credit is classified within Level 2 of the fair value hierarchy.

Commodity derivative instruments consist of NYMEX HH swap, NYMEX HH option, and Tennessee Z4 basis swap contracts for natural gas, and NYMEX WTI CMA swap contracts for crude oil. The Company’s derivative contracts are valued based on a marked to market approach. These assumptions are observable in the marketplace throughout the full term of the contract, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace, and are therefore designated as Level 2 within the valuation hierarchy. The Company utilizes its counterparties’ valuations to assess the reasonableness of its own valuations.

	September 30, 2025
	Level 1		Level 2		Level 3		Effect of Netting		Net Fair Value
Assets
Derivative contracts	$	—	$	1,462,674	$	—	$	(573,487)	$	889,187
Cash equivalents	$	262,894	$	—	$	—	$	—	$	262,894
Liabilities
Derivative contracts	$	—	$	573,487	$	—	$	(573,487)	$	—

	December 31, 2024
	Level 1		Level 2		Level 3		Effect of Netting		Net Fair Value
Assets
Derivative contracts	$	—	$	403,032	$	—	$	(403,032)	$	—
Cash equivalents	$	298,767	$	—	$	—	$	—	$	298,767
Liabilities
Derivative contracts	$	—	$	890,580	$	—	$	(403,032)	$	487,548

Non-Recurring Fair Value Measurements

The Company performed an impairment test on our oil and gas properties and it was determined that the carrying amount of the Canada asset exceeded the estimated undiscounted future cash flows resulting in a reduction of the carrying amount of the properties to their estimated fair values by $2.7 million during the nine months ended September 30, 2025. This nonrecurring fair value measurement is classified within Level 3 of the fair value hierarchy. For the year ended December 31, 2024, there was an impairment of $1.45 million.

The table below summarizes the fair value of the impaired assets at June 30, 2025, the measurement date for the impairment.

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	June 30,		Identical Assets		Inputs		Inputs
	2025		(Level 1)		(Level 2)		(Level 3)
Nonrecurring fair value measurement
Long-lived assets held and used (1)	$	1,342,942	$	—	$	—	$	1,342,942
Total Nonrecurring fair value measurement	$	1,342,942	$	—	$	—	$	1,342,942

(1) At June 30, 2025, long-lived assets held and used with a carrying amount of $4.0 million were written down to their fair value of $1.3 million, resulting in an impairment charge of $2.7 million.

The table below summarized the fair value of the impaired assets at December 31, 2024.

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	December 31,		Identical Assets		Inputs		Inputs
	2024		(Level 1)		(Level 2)		(Level 3)
Nonrecurring fair value measurement
Long-lived assets held and used	$	492,253	$	—	$	—	$	492,253
Total Nonrecurring fair value measurement	$	492,253	$	—	$	—	$	492,253