Commitments and Contingencies Commitments and Contingencies (Policies)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We have gas transportation and processing minimum obligations amounting to $2.0 million for 2023, $1.0 million for 2024, $0.8 million for 2025, $0.7 million for 2026 and $8.9 million in the aggregate. These gas transportation and processing minimum obligations represent gross future minimum transportation charges we are obligated to pay as of December 31, 2022. However, our financial statements will reflect our proportionate share of the charges based on our working interest and net revenue interest, which will vary from property to property. Actual transportation under these contracts may exceed the minimum commitments previously stated. The Company incurred transportation expense related to these contracts of $1.5 million for the year ended December 31, 2022. Additionally, we have drilling commitments amounting to $8.0 million for 2023, $4.8 million for 2024 and $2.9 million for 2025.

In the ordinary course of business, we are party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. In management's opinion, the outcome of any such currently pending legal actions will not have a material adverse effect on our financial position or results of operations.