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Organization
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION

Note 1 - Organization

 

Carbon Energy Corporation (formerly known as Carbon Natural Gas Company) is an independent oil and natural gas company engaged in the acquisition, exploration, development and production of oil, natural gas and natural gas liquids properties located in the United States. The terms "we", "us", "our", the "Company" or "Carbon" refer to Carbon Energy Corporation and our consolidated subsidiaries (described below). The following is an organization chart of the key subsidiaries discussed in this report as of December 31, 2019:

 

 

 

Appalachian and Illinois Basin Operations

 

In the Appalachian and Illinois Basins, operations are conducted by Nytis Exploration Company, LLC ("Nytis LLC"). The following organizational chart illustrates this relationship as of December 31, 2019:

 

 

 

In December 2018, we completed the acquisition of all of the Class A Units of Carbon Appalachian Company, LLC, a Delaware limited liability company ("Carbon Appalachia"), owned by Old Ironside Fund II-A Portfolio Holding Company, LLC, a Delaware limited liability company, and Old Ironside Fund II-B Portfolio Holding Company, LLC, a Delaware limited liability company (collectively, "Old Ironsides") for a purchase price of $58.2 million, subject to customary and standard purchase price adjustments ("OIE Membership Acquisition"). As a result of the OIE Membership Acquisition, we now hold all of the issued and outstanding ownership interests of Carbon Appalachia, along with its direct and indirect subsidiaries (Carbon Appalachia Group, LLC, Carbon Tennessee Mining Company, LLC, Carbon Appalachia Enterprises, LLC, Carbon West Virginia Company, LLC, Cranberry Pipeline Corporation, Knox Energy, LLC, Coalfield Pipeline Company and Appalachia Gas Services Company, LLC). 

 

Ventura Basin Operations

 

In California, Carbon California Operating Company, LLC conducts operations on behalf of Carbon California Company, LLC, a Delaware limited liability company ("Carbon California"). On February 1, 2018, Yorktown Energy Partners XI, L.P. ("Yorktown") exercised a warrant, resulting in our aggregate sharing percentage in Carbon California increasing from 17.81% to 56.40% (the "California Warrant"). On May 1, 2018, Carbon California closed an acquisition with Seneca Resources Corporation (the "Seneca Acquisition"). Following the exercise of the California Warrant by Yorktown and the Seneca Acquisition, we own 53.92% of the voting and profits interests and Prudential Legacy Insurance Company of New Jersey and Prudential Insurance Company of America or its affiliates (collectively, "Prudential") owns 46.08% of the voting and profits interest in Carbon California. As of February 1, 2018, we consolidate Carbon California for financial reporting purposes. The following organizational chart illustrates this relationship as of December 31, 2019: