Morgan EP, Inc (Tables)

3 Months Ended

Mar. 31, 2025

Morgan EP, Inc

Schedule of Unaudited Condensed Consolidated Balance Sheets

	March 31, 2025			December 31, 2024
Assets:
Cash	$	18		$	15
Revenue receivables		493			343
Joint interest billing receivables		1,667			1,738
Other receivables		2			2
Prepaids and other current assets		35			35
Current assets		2,215			2,133
Property, plant and equipment
Oil and gas properties, net - full cost method		6,921			6,959
Other property, plant and equipment, net		31			34
Total property, plant and equipment - net		6,952			6,993
Other noncurrent assets
Operating lease right-of-use assets, net		217			227
Total noncurrent assets		217			227
Total assets	$	9,384		$	9,353
Liabilities and Member's Deficit:
Current liabilities
Accounts payable	$	6,781		$	6,656
Revenue payable		214			319
Current portion of operating lease liabilities		48			47
Due to parent		1,024			550
Accrued liabilities		2,961			3,162
Total current liabilities		11,028			10,734
Long-term liabilities
Asset retirement obligations		4			4
Long-term operating lease liabilities		195			207
Note payable - Due to parent		10,500			10,500
Long-term accrued liabilities - Due to parent		1,786			1,471
Total long-term liabilities		12,485			12,182
Total liabilities		23,513			22,916
Retained earnings - beginning of year		(13,563	)		(1,804	)
Current year deficit		(566	)		(11,759	)
Member's deficit		(14,129	)		(13,563	)
Total liabilities and member's deficit	$	9,384		$	9,353

Schedule of Unaudited Condensed Consolidated Statements of Operations

	Three months ended March 31,
	2025			2024
Oil and gas revenue		172			1,075
Operating costs and expenses
Lease operating		43			1,368
Production and ad valorem taxes		17			103
Marketing, transportation and gathering		6			28
Depreciation, depletion, and amortization		51			225
General and administrative		306			514
Total operating costs and expenses		423			2,238
Loss from operations		(251	)		(1,163	)
Other income (expense)
Interest income		—			6
Interest expense		(315	)		(283	)
Total other income (expense), net		(315	)		(277	)
Net loss	$	(566	)	$	(1,440	)

Schedule of Unaudited Condensed Consolidated Statements of Cash Flows

	Three months ended March 31,
	2025			2024
Cash flows from operating activities:
Net loss		(566	)	$	(1,440	)
Adjustments to reconcile net loss to cash flows provided by operating activities:
Depreciation, depletion, amortization		51			225
Amortization of right-of-use asset		10			17
Changes in operating assets and liabilities:
Revenue receivables		(150	)		(193	)
Joint interest billing receivables		71			—
Prepaids and other current assets		—			(2	)
Accounts payable		125			1,984
Revenue payable		(105	)		448
Prepayments from working interest owners		—			(1,701	)
Due to parent		474			—
Payment of operating lease liability		(11	)		—
Accrued liabilities		(211	)		(760	)
Long Term Accrued liabilities - due to parent		315			283
Net cash provided by operating activities		3			(1,139	)
Cash flows from investing activities:
Additions to oil and gas properties		—			(3,121	)
Net cash used in investing activities		—			(3,121	)
Cash flows from financing activities:
Proceeds from Note payable - Due to parent		—			2,247
Net cash provided by financing activities		—			2,247
Net change in cash		3			(2,013	)
Cash at beginning of period		15			2,441
Cash at end of period	$	18		$	428
Supplemental Disclosure of Cash Flow Information
Non-cash investing and financing activities
Changes in capital accounts payable and capital accruals	$	(10	)		2,379