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Supplemental Oil and Gas Information (Unaudited)
 12 Months Ended
Dec. 31, 2024
Oil and Gas Disclosure [Abstract]  
Supplemental Oil and Gas Information (Unaudited) Supplemental Oil and Gas Information (Unaudited)
The Company’s oil and natural gas reserves are attributable solely to properties within the United States.
Capitalized oil and natural gas costs
Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion and amortization are as follows (in thousands):
 December 31, 2024December 31, 2023
Oil and natural gas interests:
Unproved$2,464,836 $2,698,991 
Proved2,941,347 2,377,196 
Total oil and natural gas interests5,406,183 5,076,187 
Accumulated depletion and impairment(816,664)(496,879)
Net oil and natural gas interests capitalized$4,589,519 $4,579,308 
Costs incurred in oil and natural gas activities
Costs incurred in oil and natural gas property acquisition, exploration and development activities are as follows (in thousands):
 December 31, 2024December 31, 2023
Acquisition costs  
Unproved properties$30,799 $76,863 
Proved properties299,086 93,682 
Total$329,885 $170,545 
Results of Operations from Oil and Natural Gas Producing Activities
The following schedule sets forth the revenues and expenses related to the production and sale of oil and natural gas (in thousands). It does not include any interest costs or general and administrative costs and, therefore, is not necessarily indicative of the net operating results of the Company’s oil, natural gas and NGL operations.
 Years Ended December 31,
 202420232022
Oil, natural gas and natural gas liquids revenues$611,070 $574,542 $355,430 
Production taxes and other(46,383)(46,939)(25,572)
Depletion(319,785)(290,809)(103,898)
Impairment of oil and natural gas properties— (25,617)— 
Income tax expense(53,878)(46,459)(5,681)
Results of operations from oil, natural gas and natural gas liquids$191,024 $164,718 $220,279 
As of December 31, 2024, the reserves presented below were audited by Cawley, Gillespie & Associates, Inc. ("CG&A"), independent petroleum engineers. The reserves as of December 31, 2023, and 2022 presented below were prepared by CG&A. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The reserves are located in Texas, New Mexico, Colorado, Wyoming, Montana and North Dakota. During the year ended December 31, 2023, the Company sold all of its reserves located in Oklahoma, Pennsylvania, Ohio and West Virginia.
Guidelines prescribed in FASB ASC Topic 932 Extractive Industries – Oil and Gas (“ASC Topic 932”) have been followed for computing a standardized measure of future net cash flows and changes therein related to estimated proved reserves. Future cash inflows and future production costs are determined by applying prices and costs, including transportation, quality, and basis differentials, to the period-end estimated quantities of oil, natural gas and NGL to be produced in the future. The resulting future net cash flows are reduced to present value amounts by applying a ten percent annual discount factor. Future ad valorem taxes are determined based on estimates of expenditures to be incurred in producing the proved oil and gas reserves in place at the end of the period using period-end costs and assuming continuation of existing economic conditions.
The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. These assumptions do not necessarily reflect management’s expectations of actual revenues to be derived from those reserves, nor their present value. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process. Reserve estimates are inherently imprecise and estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available.
Analysis of Changes in Proved Reserves
The following table sets forth information regarding the Company’s net ownership interest in estimated quantities of proved developed and undeveloped oil and natural gas quantities and the changes therein for each of the periods presented:
Oil
(MBbls)
Natural Gas
(MMcf)
Natural Gas Liquids
(MBbls)
Total
(MBOE) (1)
Balance as of December 31, 202111,84446,3435,02324,592
Revisions(231)2,9261,0931,349
Extensions3,2808,9861,1605,938
Acquisition of reserves23,025110,71812,18353,660
Production(2,861)(9,531)(1,100)(5,550)
Balance as of December 31, 202235,057159,44218,35979,989
Revisions(994)(289)1,394352
Extensions9,25726,7103,72317,431
Acquisition of reserves2,6829,5721,5255,803
Divestiture of reserves(826)(22,029)(843)(5,340)
Production(6,344)(23,136)(2,742)(12,942)
Balance as of December 31, 202338,832150,27021,41685,293
Revisions(1,270)9,3818631,157
Extensions6,29722,0663,13213,106
Acquisition of reserves5,20941,5876,13118,271
Production(7,004)(23,360)(3,174)(14,071)
Balance as of December 31, 2024
42,064199,94428,368103,756
(1) Includes a 48% noncontrolling interest in the Company at December 31, 2024, 2023, 2022 and 2021.
Proved developed and undeveloped reserves:
Oil
(MBbls)
Natural Gas
(MMcf)
Natural Gas Liquids
(MBbls)
Total
(MBOE)
Developed as of December 31, 20219,28540,7474,41720,494
Undeveloped as of December 31, 20212,5595,5966064,098
Balance at December 31, 202111,84446,3435,02324,592
 
Developed as of December 31, 202227,407133,48915,16964,824
Undeveloped as of December 31, 20227,65025,9533,19015,165
Balance at December 31, 202235,057159,44218,35979,989
 
Developed as of December 31, 202330,537127,17018,16769,899
Undeveloped as of December 31, 20238,29523,1003,24915,394
Balance at December 31, 202338,832150,27021,41685,293
 
Developed as of December 31, 202436,384179,05625,36891,595
Undeveloped as of December 31, 20245,68020,8883,00012,161
Balance at December 31, 202442,064199,94428,368103,756

For the year ended December 31, 2024, the Company had downward revisions of 1,270 MBbls of oil which was offset by upward revisions of 9,381 MMcf of gas and 863 MBbls of NGL. Total upward revisions of 1,157 MBOE were primarily due to updated estimated ultimate recovery calculations for gas and NGLs. For the year ended December 31,
2024, the Company had extensions of 6,297 MBbls of oil, 22,066 MMcf of gas, and 3,132 MBbls of NGLs of which 1,729 MBbls of oil, 5,328 MMcf of gas, and 695 MBbls of NGLs were from conversions of non-proved resources to proved developed producing reserves due to operator drilling activity and 4,568 MBbls of oil, 16,739 MMcf of gas, and 2,437 MBbls of NGLs were from additional proved undeveloped reserves. In 2024, the Company acquired royalty and mineral interests of 5,209 MBbls of oil, 41,587 MMcf of gas, and 6,131 MBbls of NGLs through multiple acquisitions. For the year ended December 31, 2024, the Company did not divest any royalty or mineral interests.
For the year ended December 31, 2023, the Company had downward revisions of 994 MBbls of oil and 289 MMcf of gas, offset by upward revisions of 1,394 MBbls of NGLs. Total upward revisions of 352 MBOE were primarily due to updated gas shrink and yield calculations. For the year ended December 31, 2023, the Company had extensions of 9,257 MBbls of oil, 26,710 MMcf of gas, and 3,723 MBbls of NGLs of which 1,991 MBbls of oil, 6,560 MMcf of gas, and 922 MBbls of NGLs were from conversions of non-proved resources to proved developed producing and proved developed not producing due to operator drilling activity and 7,266 MBbls of oil, 20,150 MMcf of gas, and 2,801 MBbls of NGLs were from additional proved undeveloped reserves. In 2023, the Company acquired royalty and mineral interests of 2,682 MBbls of oil, 9,572 MMcf of gas, and 1,525 MBbls of NGLs through multiple acquisitions. For the year ended December 31, 2023, the Company divested royalty and mineral interests of 826 MBbls of oil, 22,029 MMcf of gas, and 843 MBbls of NGLs, see “Note 7 – Acquisitions and Divestitures.”
For the year ended December 31, 2022, the Company had downward revisions of 231 MBbls of oil, offset by upward revisions of 2,926 MMcf of gas and 1,093 MBbls of NGLs. Total upward revisions of 1,349 MBOE were primarily due to upward revisions of 831 MBOE related to changes in estimated ultimate recovery and upward revisions of 377 MBOE due to increases in pricing. For the year ended December 31, 2022, the Company had extensions of 3,280 MBbls of oil, 8,986 MMcf of gas, and 1,160 MBbls of NGLs of which 814 MBbls of oil, 1,748 MMcf of gas, and 224 MBbls of NGLs were from conversions of non-proved resources to proved developed producing and proved developed not producing due to operator drilling activity and 2,466 MBbls of oil, 7,238 MMcf of gas, and 936 MBbls of NGLs were from additional proved undeveloped reserves. In 2022, the Company acquired royalty and mineral interests of 23,025 MBbls of oil, 110,718 MMcf of gas, and 12,183 MBbls of NGLs through multiple acquisitions. For the year ended December 31, 2022 the Company did not divest any royalty and mineral interests.
Standardized Measure of Oil and Gas
The standardized measure of discounted future net cash flows is based on the unweighted average, first-day-of-the-month price. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary. Our calculations of the standardized measure of discounted future net cash flows and the related changes therein include Texas margin tax and include the effect of estimated federal income tax expenses.
As of December 31, 2024, the reserves are comprised of 41% crude oil, 32% natural gas and 27% NGLs on an energy equivalent basis.
For the years ended December 31, 2024, 2023, and 2022, future cash inflows are calculated by applying the 12-month arithmetic average of the first-of-month price from January to December, of oil and gas relating to the Company’s proved reserves, to the year-end quantities of those reserves. The values for the December 31, 2024, 2023, and 2022 proved reserves were derived based on prices presented in the table below. The crude oil pricing was based on the West Texas Intermediate (“WTI”) price; the NGLs pricing was 24% of WTI for 2024, 26% of WTI for 2023, and 37% of WTI for 2022; the natural gas pricing was based on the Henry Hub price. All prices have been adjusted for transportation, quality and basis differentials.
 
Oil
(Bbl)
Natural Gas
(Mcf)
NGLs (Bbl)
December 31, 2024 (Average)$73.94 $0.77 $17.98 
December 31, 2023 (Average)$77.20 $1.75 $20.22 
December 31, 2022 (Average)$93.05 $5.70 $34.97 
The following summary sets forth the future net cash flows related to proved oil and gas reserves based on the standardized measure prescribed in ASC Topic 932 (in thousands):
 Year Ended December 31,
 202420232022
Future oil and natural gas sales$3,774,955 $3,694,666 $4,812,767 
Future production costs(295,266)(293,754)(404,982)
Future income tax expense(223,975)(233,754)(438,049)
Future net cash flows3,255,714 3,167,158 3,969,736 
10% annual discount
(1,494,194)(1,408,828)(1,792,681)
Standardized measure of discounted future net cash flows (1)
$1,761,520 $1,758,330 $2,177,055 
(1) Includes a 48% noncontrolling interest in the Company at December 31, 2024, 2023 and 2022.
The principal sources of change in the standardized measure of discounted future net cash flows are (in thousands):
 Year Ended December 31,
 202420232022
Balance at the beginning of the period$1,758,330 $2,177,055 $535,303 
Net change in prices and production costs(207,068)(772,593)250,889 
Sales, net of production costs(564,349)(527,603)(329,858)
Extensions and discoveries322,804 505,597 234,973 
Acquisitions of reserves290,086 126,066 1,645,909 
Divestiture of reserves— (116,884)— 
Revisions of previous quantity estimates15,560 7,589 40,803 
Net change in income taxes10,506 110,549 (244,815)
Accretion of discount189,550 242,477 53,820 
Changes in timing and other(53,899)6,077 (9,969)
Balance at the end of the period$1,761,520 $1,758,330 $2,177,055