XML 39 R28.htm IDEA: XBRL DOCUMENT v3.21.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Schedule of Subsequent Events
Subsequent Events. We have evaluated subsequent events requiring potential accrual or disclosure in our condensed consolidated financial statements.

On October 1, 2021, we closed on an all-stock transaction to acquire oil and gas assets in the Eagle Ford. The acquired assets include a 100% working interest in approximately 15,000 net oil-weighted acres across Atascosa, Fayette and Lavaca counties, as well as approximately 26,000 net gas-weighted acres directly offsetting our existing position in McMullen and Live Oak counties. After consideration of closing adjustments, we issued 1,341,990 shares of our common stock for an aggregate
purchase price of $35.6 million, based on the Company's share price on the closing date. The acquisition is subject to further customary post-closing adjustments. The issuance of the shares of common stock was completed in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Company is currently evaluating the appropriate accounting treatment for this transaction.

On October 8, 2021, the Company entered into another purchase and sale agreement to acquire oil and gas assets in the Eagle Ford. The total aggregate consideration of the acquisition is approximately $75 million, which includes $45 million in cash with the rest to be paid with the greater of (i) 1,351,961 shares of our common stock and (ii) the number of shares equal to $25 million divided by the volume weighted average share price of the Company's common stock for the 30 consecutive trading days ending on and including the first trading day preceding the closing date, subject to customary purchase price adjustments. The acquisition includes 62 net PDP wells with liquids production of approximately 71% (46% of production attributable to oil) and approximately 17,000 net acres across the oil window in La Salle, McMullen, DeWitt and Lavaca counties. Closing of the pending acquisition is expected to occur in the fourth quarter of 2021, subject to the satisfaction of certain conditions set forth in the purchase and sale agreement. The shares of common stock to be issued upon closing in accordance with this purchase and sale agreement will be made in reliance upon the exemption from the registration requirements of the Securities Act. The Company is currently evaluating the appropriate accounting treatment for this transaction upon closing.

Through November 4, 2021, the Company entered into additional derivative contracts. The following tables summarize the weighted-average prices as well as future production volumes for our future derivative contracts entered into after September 30, 2021:
Oil Derivative Contracts
(New York Mercantile Exchange (“NYMEX”) West Texas Intermediate (“WTI”) Settlements)		Total Volumes
(Bbls)		Weighted-Average PriceWeighted-Average Collar Floor Price Weighted-Average Collar Call Price
Swap Contracts
2023 Contracts
1Q23275 $69.40 
2Q23575 $68.40 
3Q2353,980 $66.55 
Collar Contracts
2022 Contracts
1Q2245,000 $73.00 $79.75 
2Q2245,500 $71.00 $78.00 
3Q2246,000 $70.00 $75.40 
4Q2246,000 $68.00 $73.60 
2023 Contracts
1Q2345,000 $65.00 $72.80 
2Q2345,500 $64.00 $70.85 
3Q2346,000 $63.00 $69.10 
4Q2346,000 $62.00 $67.55 

Natural Gas Derivative Contracts
(NYMEX Henry Hub Settlements)		Total Volumes
(MMBtu)		Weighted-Average Collar Floor Price Weighted-Average Collar Call Price
Collar Contracts
2021 Contracts
4Q21310,000 $6.00 $7.45 
2022 Contracts
1Q22590,000 $6.00 $7.45 
NGL Swaps (Mont Belvieu)Total Volumes
(Bbls)		Weighted-Average Price
2022 Contracts
1Q2245,000 $39.25 
2Q2245,500 $32.82 
3Q2246,000 $31.29 
4Q2246,000 $31.09 

There were no other material subsequent events requiring additional disclosure in these condensed consolidated financial statements.
Property and Equipment
The “Property and Equipment” balances on the accompanying condensed consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances (in thousands):
September 30, 2021December 31, 2020
Property and Equipment  
Proved oil and gas properties$1,445,818 $1,310,008 
Unproved oil and gas properties24,988 28,090 
Furniture, fixtures and other equipment5,780 5,275 
Less – Accumulated depreciation, depletion, amortization & impairment(846,822)(801,279)
Property and Equipment, Net$629,764 $542,094 
Disaggregation of Revenue
The following table provides information regarding our oil and gas sales, by product, reported on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (in thousands):
Three Months Ended September 30, 2021Three Months Ended September 30, 2020Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Oil, natural gas and NGLs sales:
Oil$25,230 $17,665 $58,587 $40,979 
Natural gas62,529 23,595 172,234 73,170 
NGLs11,489 4,439 25,030 9,772 
Total$99,249 $45,699 $255,850 $123,921 
Accounts Payable and Accrued Liabilities The “Accounts payable and accrued liabilities” balances on the accompanying condensed consolidated balance sheets are summarized below (in thousands):
 September 30, 2021December 31, 2020
Trade accounts payable$8,423 $15,930 
Accrued operating expenses3,585 2,491 
Accrued compensation costs3,955 3,771 
Asset retirement obligations – current portion492 441 
Accrued non-income based taxes6,141 1,819 
Accrued corporate and legal fees132 150 
Payable for settled derivatives13,621 829 
Other payables1,651 1,560 
Total accounts payable and accrued liabilities$38,000 $26,991