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Organization
9 Months Ended
Sep. 30, 2018
Organization [Abstract]  
Organization

Note 1 - Organization

 

Carbon Energy Corporation and its subsidiaries (referred to herein as “we”, “us”, the “Company” or “Carbon”) is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in the United States. The Company’s business is comprised of the assets and properties of Nytis Exploration (USA) Inc. (“Nytis USA”) and its subsidiary Nytis Exploration Company LLC (“Nytis LLC”) which conducts the Company’s operations in the Appalachian and Illinois Basins, Carbon California Operating Company, LLC (“CCOC”) and Carbon California Company, LLC (“Carbon California”) which conduct the Company’s operations in California, and the Company’s equity investment in Carbon Appalachian Company, LLC (“Carbon Appalachia”).

 

Appalachian and Illinois Basin Operations

 

Nytis LLC conducts operations for Carbon and Carbon Appalachia as illustrated in the following diagram.

 

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Ventura Basin Operations

 

CCOC conducts our operations in the Ventura Basin of California. On February 1, 2018, an entity managed by Yorktown Partners, LLC (“Yorktown”) exercised a warrant it held to purchase shares of our common stock at an exercise price of $7.20 per share (the “California Warrant”), resulting in the issuance of 1,527,778 shares of our common stock. In exchange, we received Yorktown’s Class A Units of Carbon California representing approximately 46.96% of the then outstanding Class A Units of Carbon California (a profits interest of approximately 38.59%). As of February 1, 2018, we owned 56.4% of the voting and profits interests of Carbon California. On May 1, 2018, Carbon California closed the Seneca Acquisition. Following the exercise of the California Warrant by Yorktown and the Seneca Acquisition, we own 53.9% of the voting and profits interests and Prudential owns 46.1% voting and profits interest in Carbon California. As of February 1, 2018, we consolidate Carbon California for financial reporting purposes. The structure of the ownership of the operations and ownership of Carbon California is illustrated in the following diagram:

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