Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure

Note 11 – Segment Reporting

The Company’s operations are all related to the exploration, development, and production of oil, gas, and NGLs in the United States, from which the Company derives all of its revenue. The nature of the production process, the types of purchasers, and the regulatory environment under which the Company operates are consistent across the Company. Additionally, for financial reporting purposes related to oil and gas extraction activities, the United States is considered to be one geographic area. As a result of these factors, the Company has one reportable segment: the oil, gas, and NGL exploration and production segment (“E&P Segment”). The E&P Segment constitutes all of the consolidated entity and the accompanying consolidated financial statements and the notes to the accompanying consolidated financial statements are representative of such amounts for the E&P Segment. The accounting policies of the E&P Segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.

The Company’s Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer. The CODM uses net income as presented on the accompanying statements of operations to measure E&P Segment profit or loss, and to evaluate income generated from E&P Segment assets in deciding whether to reinvest profits into operational activities or to use profits for other purposes, such as debt reduction, acquisitions, or the Company’s Stock Repurchase Program. Additionally, net income is used in assessing budget versus actual results and in benchmarking to the Company’s competitors.

Segment Revenue, Significant Expenses, and Net Income

	For the Years Ended December 31,
	2024		2023		2022
	(in thousands)
Total operating revenues and other income	$	2,690,259	$	2,373,886	$	3,358,647
Less:
Lease operating expense	318,987		284,790		266,527
Transportation costs	167,121		136,237		150,049
Production taxes	115,973		105,134		162,629
Ad valorem tax expense	34,890		37,382		41,707
Depletion, depreciation, and amortization	809,305		690,481		603,780
Exploration	64,121		59,480		54,943
General and administrative	138,344		121,063		114,558
Net derivative (gain) loss	(49,958)		(68,154)		374,012
Other operating expense, net	15,781		20,567		10,961
Interest expense	140,659		91,630		120,346
Interest income	(31,903)		(19,854)		(5,774)
Loss on extinguishment of debt	483		—		67,605
Other non-operating income	233		928		1,534
Income tax expense	195,930		96,322		283,818
E&P Segment net income	$	770,293	$	817,880	$	1,111,952

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Note: There are no reconciling items between net income presented on the accompanying statements of operations and E&P Segment net income.