Acquisitions, Divestitures, and Assets Held for Sale

12 Months Ended

Dec. 31, 2023

Asset Acquisition [Abstract]

Acquisitions, Divestitures, and Assets Held for Sale

Note 16 – Acquisitions

On June 30, 2023, the Company acquired approximately 20,000 net acres of oil and gas properties in Dawson and northern Martin counties, Texas. Under authoritative accounting guidance, this transaction was considered to be an asset acquisition. Therefore, the properties were recorded based on the total consideration paid after purchase price adjustments and the transaction costs were capitalized as a component of the cost of the assets acquired. During the third quarter of 2023, the Company acquired additional working interests in certain wells. Total consideration paid for these transactions, after purchase price adjustments, was $109.9 million.

Additionally, during the year ended December 31, 2023, the Company completed a non-monetary asset exchange of proved properties in Upton County, Texas. This exchange was recorded at carryover basis with no gain or loss recognized.