Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 06, 2019 | Dec. 31, 2018 | |
Cover page. | |||
Entity Registrant Name | EVOLUTION PETROLEUM CORP | ||
Entity Central Index Key | 0001006655 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 33,064,797 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 158,319,105 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 31,552,533 | $ 24,929,844 |
Restricted cash | 0 | 2,751,289 |
Receivables | 3,168,116 | 3,941,916 |
Prepaid expenses and other current assets | 458,278 | 524,507 |
Total current assets | 35,178,927 | 32,147,556 |
Property and equipment, net of depreciation, depletion, and amortization | ||
Oil and natural gas properties—full-cost method of accounting, of which none were excluded from amortization | 60,346,466 | 61,239,746 |
Other property and equipment, net | 26,418 | 30,407 |
Total property and equipment, net | 60,372,884 | 61,270,153 |
Other assets, net | 210,033 | 244,835 |
Total assets | 95,761,844 | 93,662,544 |
Current liabilities | ||
Accounts payable | 2,084,140 | 3,432,568 |
Accrued liabilities and other | 537,755 | 874,886 |
State and federal taxes payable | 130,799 | 122,760 |
Total current liabilities | 2,752,694 | 4,430,214 |
Long term liabilities | ||
Deferred income taxes | 11,322,691 | 10,555,435 |
Asset retirement obligations | 1,560,601 | 1,387,416 |
Total liabilities | 15,635,986 | 16,373,065 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity | ||
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 33,183,730 and 33,080,543 shares as of June 30, 2019 and 2018, respectively | 33,183 | 33,080 |
Additional paid-in capital | 42,488,913 | 41,757,645 |
Retained earnings | 37,603,762 | 35,498,754 |
Total stockholders' equity | 80,125,858 | 77,289,479 |
Total liabilities and stockholders' equity | $ 95,761,844 | $ 93,662,544 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued shares | 33,183,730 | 33,080,543 |
Common stock, outstanding shares | 33,183,730 | 33,080,543 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues | |||
Total revenues | $ 43,229,621 | $ 40,773,527 | |
Operating costs | |||
Depreciation, depletion and amortization | 6,253,083 | 6,102,288 | |
General and administrative expenses | [1] | 5,072,931 | 6,773,781 |
Total operating costs | 25,592,798 | 24,561,886 | |
Income from operations | 17,636,823 | 16,211,641 | |
Other | |||
Enduro transaction breakup fee | 1,100,000 | 0 | |
Interest and other income | 239,150 | 85,654 | |
Interest (expense) | (116,546) | (110,780) | |
Income before income tax provision | 18,859,427 | 16,186,515 | |
Income tax provision (benefit) | 3,482,361 | (3,431,969) | |
Net income attributable to common shareholders | $ 15,377,066 | $ 19,618,484 | |
Earnings per common share | |||
Basic (in dollars per share) | $ 0.46 | $ 0.59 | |
Diluted (in dollars per share) | $ 0.46 | $ 0.59 | |
Weighted average number of common shares outstanding | |||
Basic (in shares) | 33,160,283 | 33,126,469 | |
Diluted (in shares) | 33,169,718 | 33,178,535 | |
Crude Oil | |||
Revenues | |||
Total revenues | $ 40,779,052 | $ 38,153,417 | |
Natural Gas Liquids | |||
Revenues | |||
Total revenues | 2,449,359 | 2,620,110 | |
Natural Gas | |||
Revenues | |||
Total revenues | 1,210 | 0 | |
Production | |||
Operating costs | |||
Production costs | $ 14,266,784 | $ 11,685,817 | |
[1] | General and administrative expenses for the years ended June 30, 2019 and 2018 included non-cash stock-based compensation expense of $888,162 and $1,366,764, respectively. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Non-cash stock-based compensation expense | $ 888,162 | $ 1,366,764 |
General and Administrative Expense | ||
Non-cash stock-based compensation expense | $ 888,162 | $ 1,366,764 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | 66 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities | |||||
Net income attributable to the Company | $ 15,377,066 | $ 19,618,484 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 6,268,239 | 6,158,555 | |||
Stock-based compensation | 888,162 | 1,366,764 | |||
Deferred income taxes | 767,256 | (5,270,856) | |||
Changes in operating assets and liabilities: | |||||
Receivables | 773,800 | (1,215,214) | |||
Prepaid expenses and other current assets | 66,229 | (136,835) | |||
Accounts payable and accrued expenses | (90,891) | (107,081) | |||
Income taxes payable | 8,039 | 122,760 | |||
Net cash provided by operating activities | 24,057,900 | 20,536,577 | |||
Cash flows from investing activities | |||||
Development of oil and natural gas properties | (6,746,142) | (3,690,845) | |||
Capital expenditures for other property and equipment | (11,509) | (7,846) | |||
Other assets | 0 | (19,282) | |||
Net cash used by investing activities | (6,757,651) | (3,717,973) | |||
Cash flows from financing activities | |||||
Common share repurchases, including shares surrendered for tax withholding | (156,791) | (571,083) | |||
Common stock dividends paid | (13,272,058) | (11,594,541) | $ (59,400,000) | ||
Net cash provided by (used in) financing activities | (13,428,849) | (12,165,624) | |||
Net increase in cash, cash equivalents and restricted cash | 3,871,400 | 4,652,980 | |||
Cash, cash equivalents and restricted cash, beginning of year | 27,681,133 | 23,028,153 | |||
Cash, cash equivalents and restricted cash, end of year | 31,552,533 | 27,681,133 | 31,552,533 | ||
Supplemental Cash Flow Information [Abstract] | |||||
Cash and cash equivalents | $ 31,552,533 | $ 24,929,844 | |||
Restricted cash included in current assets | 0 | 2,751,289 | |||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 27,681,133 | $ 23,028,153 | $ 31,552,533 | $ 31,552,533 | $ 27,681,133 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Balance at Jun. 30, 2017 | $ 68,469,855 | $ 33,087 | $ 40,961,957 | $ 27,474,811 | $ 0 |
Balance (shares) at Jun. 30, 2017 | 33,087,308 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock | $ 183 | (183) | |||
Issuance of restricted common stock (shares) | 183,537 | ||||
Forfeitures of restricted stock | $ (117) | 117 | |||
Forfeitures of restricted stock (shares) | (117,094) | ||||
Common share repurchases, including shares surrendered for tax withholding | (571,083) | (571,083) | |||
Common share repurchases, including shares surrendered for tax withholding (shares) | (73,208) | ||||
Retirements of treasury stock | $ (73) | (571,010) | 571,083 | ||
Stock-based compensation | 1,366,764 | 1,366,764 | |||
Net income attributable to the Company | 19,618,484 | 19,618,484 | |||
Common stock cash dividends | (11,594,541) | (11,594,541) | |||
Balance at Jun. 30, 2018 | 77,289,479 | $ 33,080 | 41,757,645 | 35,498,754 | 0 |
Balance (shares) at Jun. 30, 2018 | 33,080,543 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock | $ 122 | (122) | |||
Issuance of restricted common stock (shares) | 121,611 | ||||
Common share repurchases, including shares surrendered for tax withholding | (156,791) | (156,791) | |||
Common share repurchases, including shares surrendered for tax withholding (shares) | (18,424) | ||||
Retirements of treasury stock | $ (19) | (156,772) | 156,791 | ||
Stock-based compensation | 888,162 | 888,162 | |||
Net income attributable to the Company | 15,377,066 | 15,377,066 | |||
Common stock cash dividends | (13,272,058) | (13,272,058) | |||
Balance at Jun. 30, 2019 | $ 80,125,858 | $ 33,183 | $ 42,488,913 | $ 37,603,762 | $ 0 |
Balance (shares) at Jun. 30, 2019 | 33,183,730 |
Organization and Basis of Prepa
Organization and Basis of Preparation | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Preparation | Organization and Basis of Preparation Nature of Operations. Evolution Petroleum Corporation is an oil and gas company focused on delivering a sustainable dividend yield to its shareholders through the ownership, management and development of producing oil and gas properties. The Company's long-term goal is to build a diversified portfolio of oil and gas assets primarily through acquisition, while seeking opportunities to maintain and increase production through selective development, production enhancement and other exploitation efforts on its properties. Our largest active investment is our interest in a CO 2 enhanced oil recovery project in Louisiana's Delhi field. Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements of prior periods include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported net income or stockholders' equity. Use of Estimates. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include (a) reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, (b) asset retirement obligations, (c) stock-based compensation, (d) fair values of derivative assets and liabilities, (e) income taxes and the valuation of deferred tax assets and (f) commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents. Restricted Cash. Funds legally designated for a specified purpose are classified as restricted cash. Such a balance is classified on the statement of financial position as either current or non-current depending on its expected use. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We establish provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectibility is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of June 30, 2019 and 2018 , no allowance for doubtful accounts was considered necessary. Oil and Natural Gas Properties. We use the full-cost method of accounting for our investments in oil and natural gas properties. Under this method of accounting, all costs incurred in the acquisition, exploration and development of oil and natural gas properties, including unproductive wells, are capitalized. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Excluded costs represent investments in unproved and unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the project is evaluated and proved reserves are established or impairment is determined. Excluded costs are reviewed at least quarterly to determine if impairment has occurred. The amount of any evaluated or impaired oil and natural gas properties is transferred to capitalized costs being amortized. Limitation on Capitalized Costs. Under the full-cost method of accounting, we are required, at the end of each fiscal quarter, to perform a test to determine the limit on the book value of our oil and natural gas properties (the "Ceiling Test"). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the "Ceiling", this excess or impairment is charged to expense and reflected as additional accumulated depreciation, depletion and amortization or as a credit to oil and natural gas properties. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent , and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 -month period prior to the end of the reporting period (with consideration of price changes only to the extent provided by contractual arrangements including hedging arrangements pursuant to SAB 103), less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus (b) the cost of properties not being amortized (pursuant to Reg. S-X Rule 4-10 (c)(3)(ii)); plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; and net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. Our Ceiling Tests did not result in an impairment of our oil and natural gas properties during the years ended June 30, 2019 and 2018 . Other Property and Equipment. Other property and equipment includes building leasehold improvements, data processing and telecommunications equipment, office furniture and office equipment. These items are recorded at cost and depreciated over expected lives of the individual assets or group of assets, which range from three to seven years . The assets are depreciated using the straight-line method. Realization of the carrying value of other property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are determined to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset, including disposal value, if any, is less than the carrying amount of the asset. If any asset is determined to be impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Repairs and maintenance costs are expensed in the period incurred. Deferred Financing Costs. The Company capitalizes costs incurred in connection with obtaining financing. These costs are included in other assets on the Company's consolidated balance sheet and are amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. Asset Retirement Obligations. An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The initial recognition or subsequent revision of asset retirement cost is considered a level 3 fair value measurement. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and derivative instruments. Except for derivatives, the carrying amounts of these approximate fair value due to the highly liquid nature of these short-term instruments. The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. Stock-based Compensation. We estimate the fair value of stock-based compensation awards on the grant date to provide the basis for future compensation expense. Service-based and performance-based Restricted Stock and Contingent Restricted Stock awards are valued using the market price of our common stock on the grant date. Market-based awards are valued using a Monte Carlo simulation and geometric Brownian motion techniques applied to the historical volatility of the Company's total stock return compared to the historical volatilities of other companies or indices to which we compare our performance. This Monte Carlo simulation also provides an expected vesting period. For service-based awards, stock-based compensation is recognized ratably over the service period. For performance-based awards, stock based compensation is recognized ratably over the expected vesting period when it is deemed probable, for accounting purposes, that the performance goal will be achieved. The expected vesting period may be shorter than the remaining term. For market-based awards, stock-based compensation expense is recognized ratably over the expected vesting period, so long as the award holder remains an employee of the Company. Total compensation expense is independent of vesting or expiration of the awards, except for termination of service. Revenue Recognition - Oil and Gas. Our revenues are comprised solely of revenues from customers from the sale of crude oil, NGLs and natural gas. The Company believes that the disaggregation of revenue on its consolidated statements of operations into these three major product types appropriately depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors based on our single geographic location. Crude oil, NGL and natural gas revenues are recognized at a point in time when production is sold to a purchaser at an index-based, determinable price, delivery has occurred, control has transferred and collectibility of the revenue is probable. The transaction price used to recognize revenue is a function of the contract billing terms which reference index price sources used by the industry. Revenue is invoiced by calendar month based on volumes at contractually based rates with payment typically required within 30 days for crude oil and 60 days for NGLs after the end of the production month. At the end of each month when the performance obligations have been satisfied, the consideration can be reasonably estimated and amounts due from customers are accrued in “Receivables” in our consolidated balance sheets. As of June 30, 2019 and 2018 receivables from contracts with customers were $3.2 million and $3.9 million , respectively. Depreciation, Depletion and Amortization ("DD&A"). The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of DD&A, estimated future development costs and asset retirement costs (net of salvage values) not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. Other property, consisting of leasehold building improvements, office and computer equipment is depreciated as described above in Other Property and Equipment. Income Taxes. We recognize deferred tax assets and liabilities based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that may result in taxable or deductible amounts in future years. The measurement of deferred tax assets may be reduced by a valuation allowance based upon management's assessment of available evidence if it is deemed more likely than not some or all of the deferred tax assets will not be realizable. We recognize a tax benefit from an uncertain position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position and will record the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority. The Company classifies any interest and penalties associated with income taxes as income tax expense. Earnings (Loss) Per Share. Basic earnings (loss) per share ("EPS") is computed by dividing earnings or loss available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. Potentially dilutive common shares are our outstanding stock options and contingent restricted common stock. We use the treasury stock method to determine the effect of potentially dilutive common shares on diluted EPS, unless the effect would be anti-dilutive. Under this method, exercise of stock options and, under certain conditions, contingent restricted common stock is assumed to have occurred at the beginning of the period (or at time of issuance, if later) and common shares are assumed to have been issued. The proceeds from exercise of stock options and unamortized stock compensation expense related to restricted common stock are assumed to be used to repurchase common stock at the average market price during the period. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed repurchased) are included in the denominator of the diluted EPS computation. Contingent restricted stock is included in the computation of diluted shares, if dilutive, when the underlying performance conditions either (i) were satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period. Recently Adopted Accounting Pronouncements - Revenue Recognition Effective July 1, 2018, the Company adopted ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASC 606”) using the full retrospective method and has applied the standard to all existing contracts. ASC 606 supersedes previous revenue recognition requirements in ASC 605 - Revenue Recognition (“ASC 605”) and includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration in exchange for those goods or services. As a result of adopting ASC 606, the Company did not have a cumulative-effect adjustment in retained earnings. The comparative information presented therein for the year ended June 30, 2018 reflects the reclassification on our consolidated statement of operations of $507,685 from “Production Costs” to “Revenue - Natural Gas Liquids” in conformance with ASC 606. These changes to revenue and production costs resulted from the conclusion that the Company did not control the product throughout processing before transferring to the customer. Therefore, costs incurred after the transfer of control are treated as reductions of revenue. Additionally, adoption of ASC 606 did not impact net income attributable to common stockholders, current assets, total assets, current liabilities, total liabilities or stockholders’ equity and the Company does not expect that it will do so in future periods. Other Recently Adopted Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investees) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. Effective July 1, 2018, the Company prospectively adopted ASU 2016-01 without impact to its consolidated financial position or results of operations. Because its investment in Well Lift Inc. does not have a readily determinable fair value, the Company elected to measure this investment at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if they were to occur. Effective July 1, 2018, the Company retrospectively adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. Adoption had no effect on our current period and comparative consolidated statements of cash flows. Effective July 1, 2018, the Company prospectively adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company will apply the clarified definition of business to future acquistions and divestitures. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than twelve months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt ASU 2016-02 effective July 1, 2019, using the modified retrospective approach. The Company will make certain elections allowing it to not reassess contracts that commenced prior to adoption, not to recognize right of use ("ROU") assets or lease liabilities for short-term leases, and will not separate lease components from non-lease components for specified asset classes. As of July 1, 2019, the Company anticipates that the adoption of ASU 2016-02 will result in the recognition of ROU assets and lease liabilities on its consolidated balance sheets of approximately $165,000 related to office space. Accordingly, the Company does not expect ASU 2016-02 to have a significant impact on its consolidated statements of operations or consolidated statements of cash flows. The Company is finalizing its accounting policies, controls, processes, and disclosures that will change as a result of adopting the new standard. As permitted by ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, the Company does not expect to adjust comparative-period financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires the use of a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the amendment using a modified retrospective approach to the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 is currently not expected to have a material effect on our consolidated financial statements. |
Enduro Purchase and Sale Agreem
Enduro Purchase and Sale Agreement and "Stalking Horse" Bid | 12 Months Ended |
Jun. 30, 2019 | |
Asset Acquisition [Abstract] | |
Enduro Purchase and Sale Agreement and Stalking Horse Bid | Enduro Purchase and Sale Agreement and "Stalking Horse" Bid During the first quarter of fiscal 2019, The Company recorded a $1.1 million break-up fee upon the closing of a higher bidder's purchase transaction. During May 2018, the Company had entered into a Purchase and Sale Agreement ("PSA"), to acquire, as the "stalking horse" bidder, certain oil and gas assets from an affiliate of Enduro Resource Partners LLC ("Enduro") for a purchase price of $27.5 million , subject to the outcome of Enduro's Chapter 11 process. Contemporaneous with executing the PSA, the Company made a $2.75 million deposit to an acquisition escrow account which, together with interest earned, comprised the restricted cash balance on the Company's June 30, 2018 consolidated statement of financial position. Earlier in the first quarter of 2019, the Company was repaid its deposit together with related earned interest when a higher bidder first emerged in the bidding process. The Company's initial and subsequent bids represented offers under Section 363 of the U.S. Bankruptcy Code in Enduro's Chapter 11 proceeding. Such offers are commonly referred to as “stalking horse” bids and are subject to higher bids, in accordance with the bidding procedures approved by the Bankruptcy Court. In connection with the PSA, the Company incurred third party due diligence expenses of $0.4 million , which have been reflected in the Company's consolidated statement of operations for the year ended June 30, 2018. |
Receivables
Receivables | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables As of June 30, 2019 and June 30, 2018 our receivables consisted of the following: June 30, June 30, Receivables from oil and gas sales $ 3,168,116 $ 3,940,998 Other — 918 Total receivables $ 3,168,116 $ 3,941,916 There were no losses from uncollectible accounts receivable, nor any allowance for doubtful accounts in any of the periods presented in these financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets As of June 30, 2019 and June 30, 2018 our prepaid expenses and other current assets consisted of the following: June 30, June 30, Prepaid insurance $ 206,198 $ 198,558 Prepaid federal and state income taxes 121,679 231,920 Retainers and deposits 8,019 11,089 Other prepaid expenses 122,382 82,940 Prepaid expenses and other current assets $ 458,278 $ 524,507 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of June 30, 2019 and June 30, 2018 , our oil and natural gas properties and other property and equipment consisted of the following: June 30, June 30, Oil and natural gas properties: Property costs subject to amortization $ 95,622,153 $ 90,392,918 Less: Accumulated depreciation, depletion, and amortization (35,275,687 ) (29,153,172 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net 60,346,466 61,239,746 Other property and equipment: Furniture, fixtures and office equipment, at cost 154,731 143,223 Less: Accumulated depreciation (128,313 ) (112,816 ) Other property and equipment, net $ 26,418 $ 30,407 As of June 30, 2019 and 2018 , all oil and gas property costs were being amortized. During the years ended June 30, 2019 and 2018 , the Company incurred capital expenditures of $5.2 million and $5.4 million , respectively, in the Delhi field. |
Other Assets
Other Assets | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of June 30, 2019 and June 30, 2018 our other assets consisted of the following: June 30, June 30, Royalty rights 108,512 108,512 Less: Accumulated amortization of royalty rights (47,474 ) (33,910 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (141,927 ) (126,771 ) Software license 20,662 20,662 Less: Accumulated amortization of software license (7,462 ) (1,380 ) Other assets, net $ 210,033 $ 244,835 Our royalty rights and investment in Well Lift, Inc. ("WLI") resulted from the separation of our artificial lift technology operations in December 2015. We conveyed our patents and other intellectual property to WLI and retained a 5% royalty on future gross revenues associated the technology. We own 17.5% of the common stock of WLI and account for our investment in this private company at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if such were to occur. The Company evaluates the investment for impairment when it identifies any events or changes in circumstances that might have a significant adverse effect on the fair value of the investment. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities and Other | Accrued Liabilities and Other As of June 30, 2019 and June 30, 2018 our accrued liabilities and other consisted of the following: June 30, June 30, Accrued incentive and other compensation $ 369,719 $ 415,182 Accrued severance — 160,089 Asset retirement obligations due within one year 50,244 35,539 Accrued royalties, including suspended accounts 11,554 11,498 Accrued franchise taxes 5,738 162,805 Accrued ad valorem taxes 100,500 89,773 Accrued liabilities and other $ 537,755 $ 874,886 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Jun. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligations for the years ended June 30, 2019 and 2018 : Years Ended 2019 2018 Asset retirement obligations — beginning of period $ 1,422,955 $ 1,288,743 Liabilities incurred 31,268 44,700 Accretion of discount 101,506 90,290 Revisions to previous estimates 55,116 (778 ) Asset retirement obligations — end of period 1,610,845 1,422,955 Less: current asset retirement obligations (50,244 ) (35,539 ) Long-term portion of asset retirement obligations $ 1,560,601 $ 1,387,416 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock As of June 30, 2019 , we had 33,183,730 shares of common stock outstanding. The Company began paying quarterly cash dividends on common stock in December 2013. As of June 30, 2019, we have cumulatively paid $59.4 million in cash dividends. We paid dividends of $13,272,058 and $11,594,541 from retained earnings to our common shareholders during the years ended June 30, 2019 and 2018 , respectively. The following table reflects the dividends paid per common share in each quarter within the respective two fiscal years: Fiscal Year 2019 2018 Fourth quarter ended June 30, $0.100 $0.100 Third quarter ended March 31, $0.100 $0.100 Second quarter ended December 31, $0.100 $0.075 First quarter ended September 30, $0.100 $0.075 Repurchases of common shares are initially recorded as treasury stock, then subsequently canceled. On May 12, 2015, the Board of Directors approved a share repurchase program covering up to $5 million of the Company's common stock. Since commencement in June 2015, we have repurchased 266,192 shares at an average price of $6.05 per share, for total cost of $1,611,620 . The timing and amount of repurchases depends upon several factors, including financial resources, market and business conditions. There is no fixed termination date for this repurchase program, and it may be suspended or discontinued at any time. We have not repurchased any shares since December 2015 until June 2019 when 430 shares were repurchased at an average price of $6.07 per share. Under the program's terms, shares are repurchased only on the open market and in accordance with the requirements of the Securities and Exchange Commission. The Company has also acquired treasury stock from holders of newly vested stock-based awards to fund the recipients' payroll tax withholding obligations. The treasury shares were subsequently canceled. Such shares were valued at fair market value on the date of vesting or date of share repurchase. The following summarizes all treasury stock purchases by fiscal year: Fiscal Year 2019 2018 Number of treasury shares acquired 18,424 73,208 Average cost per share $ 8.51 $ 7.80 Total cost of treasury shares acquired $ 156,791 $ 571,083 Tax Treatment of Dividends to Recipients Based on our current projections for the fiscal year ended June 30, 2019 , we expect all common stock dividends for this fiscal year will be treated for tax purposes as qualified dividend income to the recipients. For the fiscal year ended June 30, 2018 , all common stock dividends for that fiscal year were treated for tax purposes as qualified dividend income to the recipients. |
Stock-Based Incentive Plan
Stock-Based Incentive Plan | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Incentive Plan | Stock-Based Incentive Plan At the December 8, 2016 annual meeting, the stockholders approved the adoption of the Evolution Petroleum Corporation 2016 Equity Incentive Plan (the “2016 Plan”), which replaced the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "2004 Plan"). The 2016 Plan authorizes the issuance of 1,100,000 shares of common stock prior to its expiration on December 8, 2026. Incentives under the 2016 Plan may be granted to employees, directors and consultants of the Company in any one or a combination of the following forms: incentive stock options and non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance share awards, performance cash awards, and other forms of incentives valued in whole or in part by reference to, or otherwise based on, our common stock, including its appreciation in value. As of June 30, 2019 , 852,111 shares remained available for grant under the 2016 Plan. All outstanding awards granted under the 2004 Plan continue to be subject to the terms and conditions as set forth in the agreements evidencing such awards and the terms of the 2004 Plan. Under these agreements, we have outstanding grants of restricted common stock awards ("Restricted Stock") and contingent restricted common stock awards ("Contingent Restricted Stock") to employees and directors of the Company. Restricted Stock and Contingent Restricted Stock The Company may award grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after a maximum of four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the Restricted Stock grants are issued on the date of grant. Contingent Restricted Stock grants vest only upon the attainment of higher performance-based or market-based vesting thresholds and are issued only upon vesting. Shares underlying Contingent Restricted Stock awards are reserved from the Plan under which they were granted under. Service-based awards vest with continuous employment by the Company, generally in annual installments over a three or four -year period. Certain awards may contain other vesting periods, including quarterly installments and one -year vesting. Restricted Stock grants which vest based on service are valued at the fair market value on the date of grant and amortized over the service period. During the year ended June 30, 2019 , we granted 31,777 service-based Restricted Stock awards and 43,990 market-based awards to employees and 35,215 service-based awards to directors, which have a one -year vesting period. We did not grant any performance-based nor any Contingent Restricted Stock awards, during this fiscal year. Performance-based grants vest upon the attainment of earnings, revenue and other operational goals and require that the recipient remain an employee or director of the Company through the vesting date. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period based on the grant date fair value when it is deemed probable, for accounting purposes, that the performance criteria will be achieved. The expected vesting period may be deemed to be shorter than the term of the award. As of June 30, 2019 , there were no performance-based awards outstanding. Market-based awards vest if their respective 2 - or 3 -year trailing total returns on the Company’s common stock exceed the corresponding total returns of various quartiles of indices consisting of either peer companies or a broad market index of companies in our industry. More recent market-based awards vest if the average of the Company's closing stock prices over defined quarterly measurement periods together with accumulated paid dividends exceeds a defined value. The fair values and expected vesting periods of these awards are determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the holder remains an employee or director of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service. Assumptions used in the Monte Carlo simulation valuations for the year ended June 30, 2019 follow below. There were no market-based awards granted for the year ended June 30, 2018 . Year Ended June 30, 2019 Weighted average fair value of market-based awards granted $ 8.24 Risk-free interest rate 2.69 % Expected life in years 2.82 Expected volatility 41.8 % Dividend yield 4.0 % Unvested Restricted Stock awards at June 30, 2019 consisted of the following: Award Type Number of Weighted Service-based awards 112,381 $ 8.52 Market-based awards 64,302 7.35 Unvested at June 30, 2019 176,683 $ 8.09 The following table sets forth the Restricted Stock transactions for the year ended June 30, 2019 : Number of Restricted Shares Weighted Average Grant-Date Fair Value Unamortized Compensation Expense at June 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2018 199,477 $ 6.83 $ — Service-based awards granted 66,992 9.17 Market-based awards granted 43,990 8.24 Vested (133,776 ) 6.80 Unvested at June 30, 2019 176,683 $ 8.09 $ 848,262 1.75 The following is a summary of Restricted Stock vestings for the last two fiscal years: Year Ended June 30, 2019 2018 Vesting-date intrinsic value of Restricted Stock $ 1,141,631 $ 1,622,937 Grant-date fair value of vested Restricted Stock $ 909,678 $ 1,427,498 Number of awards vesting 133,776 211,960 The following table summarizes Contingent Restricted Stock activity for fiscal 2019: Number of Weighted Unamortized Compensation Expense at June 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2018 28,562 $ 6.06 Expired (7,777 ) 10.05 Vested (10,629 ) 5.67 Unvested at June 30, 2019 10,156 $ 3.42 $ — 0 All of these outstanding awards at June 30, 2019 are market-based awards. The following is a summary of Contingent Restricted Stock vestings for the last two fiscal years: Year Ended June 30, 2019 2018 Vest-date intrinsic value of Contingent Restricted Stock $ 105,227 $ 347,852 Grant-date fair value of vested Contingent Restricted Stock $ 60,266 $ 155,744 Number of awards vesting 10,629 46,630 Stock-based Compensation Expense For the years ended June 30, 2019 , and 2018 , we recognized stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants of $888,162 and $1,366,764 . |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information Our supplemental disclosures of cash flow information for the years ended June 30, 2019 and 2018 are as follows: June 30, 2019 2018 Income taxes paid $ 2,762,919 $ 1,826,754 Non-cash transactions: Increase (decrease) in accrued purchases of property and equipment (1,603,290 ) 1,695,218 Oil and natural gas property costs attributable to the recognition of asset retirement obligations 86,384 43,922 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the years ended June 30, 2019 and 2018 . We believe that we have appropriate support for the income tax positions taken and to be taken on the Company's tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company’s federal and state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2015 through June 30, 2018 for federal tax purposes and for the years ended June 30, 2016 through June 30, 2018 for state tax purposes. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit. The components of our income tax provision (benefit) are as follows: June 30, 2019 June 30, 2018 Current: Federal $ 2,343,512 $ 1,186,649 State 371,593 652,238 Total current income tax provision 2,715,105 1,838,887 Deferred: Federal 387,541 (5,498,890 ) State 379,715 228,034 Total deferred income tax provision (benefit) 767,256 (5,270,856 ) $ 3,482,361 $ (3,431,969 ) For the years ended June 30, 2019 and 2018 , respectively, we recognized income tax expense of $3.5 million and an income tax benefit of $(3.4) million reflecting corresponding effective tax rates of 18.5% and (21.2)% . The fiscal 2018 benefit included a one-time $(6.1) million tax benefit, resulting from adjustments of our deferred income tax liabilities in fiscal 2018 due to the enactment of the Tax Cut and Jobs Act (the "Tax Act") during December of 2017. Our effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the State of Louisiana, and differences related to percentage depletion in excess of basis, stock-based compensation and other permanent differences. For the years ended June 30, 2019 and 2018 , our respective statutory federal tax rates were 21% and 27.55% , as we used a blended rate in the prior fiscal year when the Tax Act was enacted. Depletion in excess of basis had less of an impact on our effective rate in the current year as we utilized all of our depletion carryover in fiscal 2018. The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate to the income tax provision (benefit) in our financial statements. June 30, 2019 % of Income Before Income Taxes June 30, 2018 % of Income Before Income Taxes Income tax provision (benefit) computed at the statutory federal rate: $ 3,960,480 21.0 % $ 4,459,940 27.6 % Reconciling items: Adjustment of deferred income liability for the Tax Act's lower statutory federal tax rate — — % (5,949,389 ) (36.8 )% Change in valuation allowance due to enactment of the Tax Act — — % (111,818 ) (0.7 )% Expiration of Section 382 tax loss carryforwards 127,410 0.70 % — — % Change in valuation allowance for Section 382 tax loss carryforwards (127,410 ) (0.70 )% — — % Depletion in excess of tax basis (982,302 ) (5.1 )% (2,433,530 ) (14.9 )% State income taxes, net of federal tax benefit 593,533 3.1 % 718,337 4.4 % Permanent differences related to stock-based compensation (73,671 ) (0.4 )% (139,333 ) (0.9 )% Other (15,679 ) (0.1 )% 23,824 0.1 % Income tax provision (benefit) $ 3,482,361 18.5 % $ (3,431,969 ) (21.2 )% Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Asset (Liability) June 30, 2019 June 30, 2018 Deferred tax assets: Non-qualified stock-based compensation $ 159,090 $ 144,956 Net operating loss carry-forwards 496,082 680,186 Other 20,713 24,207 Gross deferred tax assets 675,885 849,349 Valuation allowance (53,218 ) (180,628 ) Total deferred tax assets 622,667 668,721 Deferred tax liability: Oil and natural gas properties (11,945,358 ) (11,224,156 ) Total deferred tax liability (11,945,358 ) (11,224,156 ) Net deferred tax liability $ (11,322,691 ) $ (10,555,435 ) As of June 30, 2019 , we had a federal tax loss carryforward of approximately $0.6 million that we acquired through the reverse merger in May 2004. The majority of the tax loss carryforwards from the reverse merger expired without being utilized. We will be able to utilize a maximum of $0.2 million of these carryforwards in equal annual amounts of $39,648 through 2023 and the balance is not able to be utilized based on the provisions of IRC Section 382. We have recorded a valuation allowance for the portion of our net operating loss that is limited by IRC Section 382. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share: June 30, 2019 2018 Numerator Net income attributable to common shareholders $ 15,377,066 $ 19,618,484 Denominator Weighted average number of common shares – Basic 33,160,283 33,126,469 Effect of dilutive securities: Contingent restricted stock grants 9,435 52,066 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 33,169,718 33,178,535 Net income per common share – Basic $ 0.46 $ 0.59 Net income per common share – Diluted $ 0.46 $ 0.59 The following were reflected in the calculation of diluted earnings per share in their respective fiscal years: Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 10,156 Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 28,562 |
Credit Agreements
Credit Agreements | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements Senior Secured Credit Agreement On April 11, 2016, the Company entered into a three -year, senior secured reserve-based credit facility ("Facility") in an amount up to $50 million . On May 25, 2018, we entered into the third amendment to our credit agreement governing the revolving credit facility to, among other things, extend the maturity date to April 11, 2021. On December 31, 2018, we entered into the fourth amendment to our credit agreement governing the revolving credit facility to broaden the definition for the Use of Proceeds. As of June 30, 2019 , the Company's elected commitment and borrowing base were $40 million , we were in compliance with all financial covenants and there were no amounts outstanding under the Facility, which is secured by substantially all of the Company’s assets. Under the Facility the borrowing base shall be determined semiannually as of every May 15 and November 15 during the term of the Facility. During the fourth fiscal quarter, the bank performed its periodic spring redetermination of the borrowing base and confirmed our elected amount of $40 million . Borrowings from the Facility may be used for the acquisition and development of oil and gas properties, investments in cash flow generating assets complimentary to the production of oil and gas, and for letters of credit and other general corporate purposes. The Facility carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Facility will bear interest, at the Company’s option, at either Libor plus 2.75% or the Prime Rate, as defined, plus 1.00% . The Facility contains financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (a) a maximum total leverage ratio of not more than 3.00 to 1.00 , (b) a debt service coverage ratio of not less than 1.10 to 1.00 , and (c) a consolidated tangible net worth of not less than $50 million , all as defined under the Facility. In connection with this agreement, the Company incurred $168,972 of debt issuance costs. Such costs were capitalized in Other Assets and are being amortized to expense. The unamortized balance in debt issuance costs related to the Facility was $27,045 as of June 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which we operate. At a minimum, we disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We accrue a loss if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss and we do not accrue future legal costs related to that loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable. We expense legal defense costs as they are incurred. Lease Commitments. We have a non-cancelable office space whose term ends in November 2022. Future minimum lease commitments as of June 30, 2019 under this operating lease is as follows: For the Years Ended June 30, 2020 $ 34,322 2021 59,945 2022 61,843 2023 26,098 Total $ 182,208 Rent expense for the years ended June 30, 2019 and 2018 was $73,289 and $76,666 , respectively. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Major Customers. We market all of our oil and natural gas production from the properties we operate. We do not currently market our share of crude oil or natural gas liquids production from Delhi. Although we have the right to take our working interest production at Delhi in-kind, we are currently selling our oil under the Delhi operator's agreement with Plains Marketing L.P. for the delivery of our oil to a pipeline at the field. The majority of our operated gas, oil and condensate production is sold to purchasers under short-term (less than 12 months) contracts at market-based prices. The following table identifies customers from whom we derived 10 percent or more of our net oil and natural gas revenues during the years ended June 30, 2019 and 2018 . The loss of our purchaser at the Delhi field or disruption to pipeline transportation from the field could adversely affect our net realized pricing and potentially our near-term production levels. The loss of any of our other purchasers would not be expected to have a material adverse effect on our operations. Year Ended June 30, Customer 2019 2018 Plains Marketing L.P. (Oil sales from Delhi) 94 % 92 % American Midstream Gas Solutions. L.P. (NGL sales from Delhi) 6 % 8 % All others — % — % Total 100 % 100 % Accounts Receivable. Substantially all of our accounts receivable result from oil and natural gas sales to third parties in the oil and natural gas industry. Our concentration of customers in this industry may impact our overall credit risk. Cash and Cash Equivalents. We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents in high quality money market funds. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation ("FDIC"). |
Retirement Plan
Retirement Plan | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Retirement Plan We have a Company sponsored 401(k) Retirement Plan ("Plan") which covers all full-time employees. We currently match 100% of employees' contributions to the Plan, to a maximum of the first 6% of each participant's eligible compensation, with Company contributions fully vested when made. Our matching contributions to the Plan totaled $52,809 and $43,134 for the years ended June 30, 2019 and 2018 , respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1—Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2—Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3—Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. Fair Value of Financial Instruments. The Company's other financial instruments consist of cash, cash equivalents, and restricted cash, receivables and payables. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. Other Fair Value Measurements. The initial measurement and any subsequent revision of asset retirement obligations at fair value are calculated using discounted future cash flows of internally estimated costs. Significant Level 3 inputs used in the calculation of asset retirement obligations include the costs of plugging and abandoning wells, surface restoration and reserve lives. Subsequent to initial recognition, revisions to estimated asset retirement obligations are made when changes occur for input values. |
Supplemental Disclosures about
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) | Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) Costs incurred for oil and natural gas property acquisition, exploration and development activities The following table summarizes costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities. Property acquisition costs are those costs incurred to lease property, including both undeveloped leasehold and the purchase of reserves in place. Exploration costs include costs of identifying areas that may warrant examination and examining specific areas that are considered to have prospects containing oil and natural gas reserves, including costs of drilling exploratory wells, geological and geophysical costs and carrying costs on undeveloped properties. Development costs are incurred to obtain access to proved reserves, including the cost of drilling. Exploration and development costs also include amounts incurred due to the recognition of asset retirement obligations of $86,384 and $43,922 during the years ended June 30, 2019 and 2018 , respectively. For the Years Ended June 30, 2019 2018 Oil and Natural Gas Activities Property acquisition costs: Proved property $ — $ — Unproved property (a) — — Exploration costs — — Development costs 5,229,235 5,429,985 Total costs incurred for oil and natural gas activities $ 5,229,235 $ 5,429,985 Estimated Net Quantities of Proved Oil and Natural Gas Reserves The following estimates of the net proved oil and natural gas reserves of our oil and gas properties located entirely within the United States of America are based on evaluations prepared by third-party reservoir engineers. Reserve volumes and values were determined under the method prescribed by the SEC for our fiscal years ended June 30, 2019 and 2018 , which requires the application of the previous 12 months unweighted arithmetic average first-day-of-the-month price, and current costs held constant throughout the projected reserve life, when estimating whether reserve quantities are economical to produce. Proved oil and natural gas reserves are estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed oil and natural gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. There are uncertainties inherent in estimating quantities of proved oil and natural gas reserves, projecting future production rates, and timing of development expenditures. Accordingly, reserve estimates often differ from the quantities of oil and natural gas that are ultimately recovered. Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves for each of the periods indicated were as follows: Crude Oil (Bbls) Natural Gas Liquids (Bbls) Natural Gas (Mcf) BOE Proved developed and undeveloped reserves: June 30, 2017 8,372,150 1,686,228 — 10,058,378 Revisions of previous estimates (a) 369,971 (315,090 ) — 54,881 Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (651,931 ) (93,366 ) — (745,297 ) June 30, 2018 8,090,190 1,277,772 — 9,367,962 Revisions of previous estimates (b) 152,420 199,078 — 351,498 Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (626,879 ) (112,089 ) — (738,968 ) June 30, 2019 7,615,731 1,364,761 — 8,980,492 Proved developed reserves: June 30, 2017 6,617,389 1,332,803 — 7,950,192 June 30, 2018 6,291,850 993,741 — 7,285,591 June 30, 2019 6,273,907 1,124,302 — 7,398,209 Proved undeveloped reserves: June 30, 2017 1,754,761 353,425 — 2,108,186 June 30, 2018 1,798,340 284,031 — 2,082,371 June 30, 2019 1,341,824 240,459 — 1,582,283 (a) The positive crude oil revision resulted from better production performance during fiscal 2018. The negative NGL revision results primarily from lower expectations for ultimate NGL recoveries from the plant based on production data subsequent to the commencement of plant production. (b) The positive crude oil and NGL revisions were the result of improvements in well and NGL plant performance respectively. Standardized Measure of Discounted Future Net Cash Flows Future oil and natural gas sales and production and development costs have been estimated using prices and costs in effect at the end of the years indicated, as required by ASC 932, Extractive Activities - Oil and Gas ("ASC 932"). ASC 932 requires that net cash flow amounts be discounted at 10%. Future production and development costs are computed by estimating the expenditures to be incurred in developing and producing our proved oil and natural gas reserves and asset retirement obligations assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate period-end statutory tax rates to the future pretax net cash flow relating to our proved oil and natural gas reserves, less the tax basis of the related properties. The future income tax expenses do not give effect to tax credits, allowances, or the impact of general and administrative costs of ongoing operations relating to the Company's proved oil and natural gas reserves. Changes in the demand for oil and natural gas, inflation, and other factors make such estimates inherently imprecise and subject to substantial revision. The table below should not be construed to be an estimate of the current market value of our proved reserves. The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves as of June 30, 2019 and 2018 are as follows: As of June 30, 2019 2018 Future cash inflows $ 524,037,200 $ 521,533,765 Future production costs and severance taxes (208,539,679 ) (228,478,119 ) Future development costs (18,395,252 ) (22,213,269 ) Future income tax expenses (55,881,997 ) (50,810,883 ) Future net cash flows 241,220,272 220,031,494 10% annual discount for estimated timing of cash flows (114,488,230 ) (101,073,080 ) Standardized measure of discounted future net cash flows $ 126,732,042 $ 118,958,414 Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the previous 12 months unweighted arithmetic average first-day-of-the-month commodity prices for each year and reflect adjustments for lease quality, transportation fees, energy content and regional price differentials. For the Years Ended June 30, 2019 2018 Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) NYMEX prices used in determining future cash flows $ 61.62 n/a $ 57.50 n/a There were no natural gas reserves in 2019 and 2018. The NGL prices utilized for future cash inflows were based on historical prices received, where available. For the Delhi NGL plant, we utilized historical prices for the expected mix and net pricing of natural gas liquid products projected to be produced by the plant. A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves is as follows: For the Years Ended June 30, 2019 2018 Balance, beginning of the fiscal year $ 118,958,414 $ 82,937,553 Net changes in sales prices and production costs related to future production 23,753,518 62,011,112 Changes in estimated future development costs 833,494 267,547 Sales of oil and gas produced during the period, net of production costs (28,962,837 ) (29,087,710 ) Net change due to extensions, discoveries, and improved recovery — — Net change due to revisions in quantity estimates 6,129,847 888,896 Net change due to sales of minerals in place — — Development costs incurred during the period 2,089,139 — Accretion of discount 14,604,387 11,089,455 Net change in discounted income taxes (2,795,183 ) 871,540 Net changes in timing of production and other (7,878,737 ) (10,019,979 ) Balance, end of the fiscal year $ 126,732,042 $ 118,958,414 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following table presents summarized quarterly financial information for the fiscal years ended June 30, 2019 and 2018 : 2019 First (1) Second Third Fourth Revenues $ 12,307,079 $ 11,048,118 $ 9,501,028 $ 10,373,396 Operating income 5,994,927 4,733,747 2,952,955 3,955,194 Net income available to common shareholders $ 5,795,801 $ 3,904,565 $ 2,398,875 $ 3,277,825 Basic net income per share $ 0.18 $ 0.12 $ 0.07 $ 0.10 Diluted net income per share $ 0.17 $ 0.12 $ 0.07 $ 0.10 2018 First Second (2) Third Fourth Revenues $ 8,537,871 $ 11,066,911 $ 10,249,566 $ 11,426,864 Operating income 2,536,459 4,829,252 3,663,267 5,182,663 Net income available to common shareholders $ 2,140,532 $ 9,876,848 $ 3,068,354 $ 4,532,750 Basic net income per share $ 0.06 $ 0.30 $ 0.09 $ 0.14 Diluted net income per share $ 0.06 $ 0.30 $ 0.09 $ 0.14 (1) The first quarter of fiscal 2019 included other income of $1.1 million for the Enduro transaction breakup fee. (2) The second quarter of fiscal 2018 was impacted by a $6 million tax benefit attributable to the Tax Cut and Jobs Act enacted during December 2017. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements of prior periods include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported net income or stockholders' equity. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include (a) reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, (b) asset retirement obligations, (c) stock-based compensation, (d) fair values of derivative assets and liabilities, (e) income taxes and the valuation of deferred tax assets and (f) commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents. |
Restricted Cash | Restricted Cash. Funds legally designated for a specified purpose are classified as restricted cash. Such a balance is classified on the statement of financial position as either current or non-current depending on its expected use. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We establish provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectibility is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of June 30, 2019 and 2018 , no allowance for doubtful accounts was considered necessary. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties. We use the full-cost method of accounting for our investments in oil and natural gas properties. Under this method of accounting, all costs incurred in the acquisition, exploration and development of oil and natural gas properties, including unproductive wells, are capitalized. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Excluded costs represent investments in unproved and unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the project is evaluated and proved reserves are established or impairment is determined. Excluded costs are reviewed at least quarterly to determine if impairment has occurred. The amount of any evaluated or impaired oil and natural gas properties is transferred to capitalized costs being amortized. |
Limitation on Capitalized Costs | Limitation on Capitalized Costs. Under the full-cost method of accounting, we are required, at the end of each fiscal quarter, to perform a test to determine the limit on the book value of our oil and natural gas properties (the "Ceiling Test"). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the "Ceiling", this excess or impairment is charged to expense and reflected as additional accumulated depreciation, depletion and amortization or as a credit to oil and natural gas properties. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent , and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 -month period prior to the end of the reporting period (with consideration of price changes only to the extent provided by contractual arrangements including hedging arrangements pursuant to SAB 103), less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus (b) the cost of properties not being amortized (pursuant to Reg. S-X Rule 4-10 (c)(3)(ii)); plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; and net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. Our Ceiling Tests did not result in an impairment of our oil and natural gas properties during the years ended June 30, 2019 and 2018 . |
Other Property and Equipment | Other Property and Equipment. Other property and equipment includes building leasehold improvements, data processing and telecommunications equipment, office furniture and office equipment. These items are recorded at cost and depreciated over expected lives of the individual assets or group of assets, which range from three to seven years . The assets are depreciated using the straight-line method. Realization of the carrying value of other property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are determined to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset, including disposal value, if any, is less than the carrying amount of the asset. If any asset is determined to be impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Repairs and maintenance costs are expensed in the period incurred. |
Deferred Financing Costs | Deferred Financing Costs. The Company capitalizes costs incurred in connection with obtaining financing. These costs are included in other assets on the Company's consolidated balance sheet and are amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. |
Asset Retirement Obligations | Asset Retirement Obligations. An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The initial recognition or subsequent revision of asset retirement cost is considered a level 3 fair value measurement. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and derivative instruments. Except for derivatives, the carrying amounts of these approximate fair value due to the highly liquid nature of these short-term instruments. The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. |
Stock-based Compensation | Stock-based Compensation. We estimate the fair value of stock-based compensation awards on the grant date to provide the basis for future compensation expense. Service-based and performance-based Restricted Stock and Contingent Restricted Stock awards are valued using the market price of our common stock on the grant date. Market-based awards are valued using a Monte Carlo simulation and geometric Brownian motion techniques applied to the historical volatility of the Company's total stock return compared to the historical volatilities of other companies or indices to which we compare our performance. This Monte Carlo simulation also provides an expected vesting period. For service-based awards, stock-based compensation is recognized ratably over the service period. For performance-based awards, stock based compensation is recognized ratably over the expected vesting period when it is deemed probable, for accounting purposes, that the performance goal will be achieved. The expected vesting period may be shorter than the remaining term. For market-based awards, stock-based compensation expense is recognized ratably over the expected vesting period, so long as the award holder remains an employee of the Company. Total compensation expense is independent of vesting or expiration of the awards, except for termination of service. |
Revenue Recognition | Revenue Recognition - Oil and Gas. Our revenues are comprised solely of revenues from customers from the sale of crude oil, NGLs and natural gas. The Company believes that the disaggregation of revenue on its consolidated statements of operations into these three major product types appropriately depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors based on our single geographic location. Crude oil, NGL and natural gas revenues are recognized at a point in time when production is sold to a purchaser at an index-based, determinable price, delivery has occurred, control has transferred and collectibility of the revenue is probable. The transaction price used to recognize revenue is a function of the contract billing terms which reference index price sources used by the industry. Revenue is invoiced by calendar month based on volumes at contractually based rates with payment typically required within 30 days for crude oil and 60 days for NGLs after the end of the production month. At the end of each month when the performance obligations have been satisfied, the consideration can be reasonably estimated and amounts due from customers are accrued in “Receivables” in our consolidated balance sheets. As of June 30, 2019 and 2018 receivables from contracts with customers were $3.2 million and $3.9 million , respectively. |
Depreciation, Depletion and Amortization | Depreciation, Depletion and Amortization ("DD&A"). The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of DD&A, estimated future development costs and asset retirement costs (net of salvage values) not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. Other property, consisting of leasehold building improvements, office and computer equipment is depreciated as described above in Other Property and Equipment. |
Income Taxes | Income Taxes. We recognize deferred tax assets and liabilities based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that may result in taxable or deductible amounts in future years. The measurement of deferred tax assets may be reduced by a valuation allowance based upon management's assessment of available evidence if it is deemed more likely than not some or all of the deferred tax assets will not be realizable. We recognize a tax benefit from an uncertain position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position and will record the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority. The Company classifies any interest and penalties associated with income taxes as income tax expense. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share. Basic earnings (loss) per share ("EPS") is computed by dividing earnings or loss available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. Potentially dilutive common shares are our outstanding stock options and contingent restricted common stock. We use the treasury stock method to determine the effect of potentially dilutive common shares on diluted EPS, unless the effect would be anti-dilutive. Under this method, exercise of stock options and, under certain conditions, contingent restricted common stock is assumed to have occurred at the beginning of the period (or at time of issuance, if later) and common shares are assumed to have been issued. The proceeds from exercise of stock options and unamortized stock compensation expense related to restricted common stock are assumed to be used to repurchase common stock at the average market price during the period. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed repurchased) are included in the denominator of the diluted EPS computation. Contingent restricted stock is included in the computation of diluted shares, if dilutive, when the underlying performance conditions either (i) were satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements - Revenue Recognition Effective July 1, 2018, the Company adopted ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASC 606”) using the full retrospective method and has applied the standard to all existing contracts. ASC 606 supersedes previous revenue recognition requirements in ASC 605 - Revenue Recognition (“ASC 605”) and includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration in exchange for those goods or services. As a result of adopting ASC 606, the Company did not have a cumulative-effect adjustment in retained earnings. The comparative information presented therein for the year ended June 30, 2018 reflects the reclassification on our consolidated statement of operations of $507,685 from “Production Costs” to “Revenue - Natural Gas Liquids” in conformance with ASC 606. These changes to revenue and production costs resulted from the conclusion that the Company did not control the product throughout processing before transferring to the customer. Therefore, costs incurred after the transfer of control are treated as reductions of revenue. Additionally, adoption of ASC 606 did not impact net income attributable to common stockholders, current assets, total assets, current liabilities, total liabilities or stockholders’ equity and the Company does not expect that it will do so in future periods. Other Recently Adopted Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investees) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. Effective July 1, 2018, the Company prospectively adopted ASU 2016-01 without impact to its consolidated financial position or results of operations. Because its investment in Well Lift Inc. does not have a readily determinable fair value, the Company elected to measure this investment at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if they were to occur. Effective July 1, 2018, the Company retrospectively adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. Adoption had no effect on our current period and comparative consolidated statements of cash flows. Effective July 1, 2018, the Company prospectively adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company will apply the clarified definition of business to future acquistions and divestitures. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than twelve months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt ASU 2016-02 effective July 1, 2019, using the modified retrospective approach. The Company will make certain elections allowing it to not reassess contracts that commenced prior to adoption, not to recognize right of use ("ROU") assets or lease liabilities for short-term leases, and will not separate lease components from non-lease components for specified asset classes. As of July 1, 2019, the Company anticipates that the adoption of ASU 2016-02 will result in the recognition of ROU assets and lease liabilities on its consolidated balance sheets of approximately $165,000 related to office space. Accordingly, the Company does not expect ASU 2016-02 to have a significant impact on its consolidated statements of operations or consolidated statements of cash flows. The Company is finalizing its accounting policies, controls, processes, and disclosures that will change as a result of adopting the new standard. As permitted by ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, the Company does not expect to adjust comparative-period financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires the use of a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the amendment using a modified retrospective approach to the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 is currently not expected to have a material effect on our consolidated financial statements. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of receivables | As of June 30, 2019 and June 30, 2018 our receivables consisted of the following: June 30, June 30, Receivables from oil and gas sales $ 3,168,116 $ 3,940,998 Other — 918 Total receivables $ 3,168,116 $ 3,941,916 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | As of June 30, 2019 and June 30, 2018 our prepaid expenses and other current assets consisted of the following: June 30, June 30, Prepaid insurance $ 206,198 $ 198,558 Prepaid federal and state income taxes 121,679 231,920 Retainers and deposits 8,019 11,089 Other prepaid expenses 122,382 82,940 Prepaid expenses and other current assets $ 458,278 $ 524,507 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of oil and natural gas properties and other property and equipment | As of June 30, 2019 and June 30, 2018 , our oil and natural gas properties and other property and equipment consisted of the following: June 30, June 30, Oil and natural gas properties: Property costs subject to amortization $ 95,622,153 $ 90,392,918 Less: Accumulated depreciation, depletion, and amortization (35,275,687 ) (29,153,172 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net 60,346,466 61,239,746 Other property and equipment: Furniture, fixtures and office equipment, at cost 154,731 143,223 Less: Accumulated depreciation (128,313 ) (112,816 ) Other property and equipment, net $ 26,418 $ 30,407 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | As of June 30, 2019 and June 30, 2018 our other assets consisted of the following: June 30, June 30, Royalty rights 108,512 108,512 Less: Accumulated amortization of royalty rights (47,474 ) (33,910 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (141,927 ) (126,771 ) Software license 20,662 20,662 Less: Accumulated amortization of software license (7,462 ) (1,380 ) Other assets, net $ 210,033 $ 244,835 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | As of June 30, 2019 and June 30, 2018 our accrued liabilities and other consisted of the following: June 30, June 30, Accrued incentive and other compensation $ 369,719 $ 415,182 Accrued severance — 160,089 Asset retirement obligations due within one year 50,244 35,539 Accrued royalties, including suspended accounts 11,554 11,498 Accrued franchise taxes 5,738 162,805 Accrued ad valorem taxes 100,500 89,773 Accrued liabilities and other $ 537,755 $ 874,886 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of reconciliation of the beginning and ending asset retirement obligation | The following is a reconciliation of the beginning and ending asset retirement obligations for the years ended June 30, 2019 and 2018 : Years Ended 2019 2018 Asset retirement obligations — beginning of period $ 1,422,955 $ 1,288,743 Liabilities incurred 31,268 44,700 Accretion of discount 101,506 90,290 Revisions to previous estimates 55,116 (778 ) Asset retirement obligations — end of period 1,610,845 1,422,955 Less: current asset retirement obligations (50,244 ) (35,539 ) Long-term portion of asset retirement obligations $ 1,560,601 $ 1,387,416 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Dividends declared and paid | The following table reflects the dividends paid per common share in each quarter within the respective two fiscal years: Fiscal Year 2019 2018 Fourth quarter ended June 30, $0.100 $0.100 Third quarter ended March 31, $0.100 $0.100 Second quarter ended December 31, $0.100 $0.075 First quarter ended September 30, $0.100 $0.075 |
Schedule of share repurchases | The following summarizes all treasury stock purchases by fiscal year: Fiscal Year 2019 2018 Number of treasury shares acquired 18,424 73,208 Average cost per share $ 8.51 $ 7.80 Total cost of treasury shares acquired $ 156,791 $ 571,083 |
Stock-Based Incentive Plan (Tab
Stock-Based Incentive Plan (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | Assumptions used in the Monte Carlo simulation valuations for the year ended June 30, 2019 follow below. There were no market-based awards granted for the year ended June 30, 2018 . Year Ended June 30, 2019 Weighted average fair value of market-based awards granted $ 8.24 Risk-free interest rate 2.69 % Expected life in years 2.82 Expected volatility 41.8 % Dividend yield 4.0 % |
Schedule of Restricted Stock transactions | Unvested Restricted Stock awards at June 30, 2019 consisted of the following: Award Type Number of Weighted Service-based awards 112,381 $ 8.52 Market-based awards 64,302 7.35 Unvested at June 30, 2019 176,683 $ 8.09 The following table summarizes Contingent Restricted Stock activity for fiscal 2019: Number of Weighted Unamortized Compensation Expense at June 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2018 28,562 $ 6.06 Expired (7,777 ) 10.05 Vested (10,629 ) 5.67 Unvested at June 30, 2019 10,156 $ 3.42 $ — 0 The following table sets forth the Restricted Stock transactions for the year ended June 30, 2019 : Number of Restricted Shares Weighted Average Grant-Date Fair Value Unamortized Compensation Expense at June 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2018 199,477 $ 6.83 $ — Service-based awards granted 66,992 9.17 Market-based awards granted 43,990 8.24 Vested (133,776 ) 6.80 Unvested at June 30, 2019 176,683 $ 8.09 $ 848,262 1.75 |
Schedule of Restricted Stock Activity | The following is a summary of Restricted Stock vestings for the last two fiscal years: Year Ended June 30, 2019 2018 Vesting-date intrinsic value of Restricted Stock $ 1,141,631 $ 1,622,937 Grant-date fair value of vested Restricted Stock $ 909,678 $ 1,427,498 Number of awards vesting 133,776 211,960 The following is a summary of Contingent Restricted Stock vestings for the last two fiscal years: Year Ended June 30, 2019 2018 Vest-date intrinsic value of Contingent Restricted Stock $ 105,227 $ 347,852 Grant-date fair value of vested Contingent Restricted Stock $ 60,266 $ 155,744 Number of awards vesting 10,629 46,630 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flow information | Our supplemental disclosures of cash flow information for the years ended June 30, 2019 and 2018 are as follows: June 30, 2019 2018 Income taxes paid $ 2,762,919 $ 1,826,754 Non-cash transactions: Increase (decrease) in accrued purchases of property and equipment (1,603,290 ) 1,695,218 Oil and natural gas property costs attributable to the recognition of asset retirement obligations 86,384 43,922 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) | The components of our income tax provision (benefit) are as follows: June 30, 2019 June 30, 2018 Current: Federal $ 2,343,512 $ 1,186,649 State 371,593 652,238 Total current income tax provision 2,715,105 1,838,887 Deferred: Federal 387,541 (5,498,890 ) State 379,715 228,034 Total deferred income tax provision (benefit) 767,256 (5,270,856 ) $ 3,482,361 $ (3,431,969 ) |
Schedule of reconciliation of statutory income tax expense to income tax provision | The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate to the income tax provision (benefit) in our financial statements. June 30, 2019 % of Income Before Income Taxes June 30, 2018 % of Income Before Income Taxes Income tax provision (benefit) computed at the statutory federal rate: $ 3,960,480 21.0 % $ 4,459,940 27.6 % Reconciling items: Adjustment of deferred income liability for the Tax Act's lower statutory federal tax rate — — % (5,949,389 ) (36.8 )% Change in valuation allowance due to enactment of the Tax Act — — % (111,818 ) (0.7 )% Expiration of Section 382 tax loss carryforwards 127,410 0.70 % — — % Change in valuation allowance for Section 382 tax loss carryforwards (127,410 ) (0.70 )% — — % Depletion in excess of tax basis (982,302 ) (5.1 )% (2,433,530 ) (14.9 )% State income taxes, net of federal tax benefit 593,533 3.1 % 718,337 4.4 % Permanent differences related to stock-based compensation (73,671 ) (0.4 )% (139,333 ) (0.9 )% Other (15,679 ) (0.1 )% 23,824 0.1 % Income tax provision (benefit) $ 3,482,361 18.5 % $ (3,431,969 ) (21.2 )% |
Schedule of components of deferred taxes | Asset (Liability) June 30, 2019 June 30, 2018 Deferred tax assets: Non-qualified stock-based compensation $ 159,090 $ 144,956 Net operating loss carry-forwards 496,082 680,186 Other 20,713 24,207 Gross deferred tax assets 675,885 849,349 Valuation allowance (53,218 ) (180,628 ) Total deferred tax assets 622,667 668,721 Deferred tax liability: Oil and natural gas properties (11,945,358 ) (11,224,156 ) Total deferred tax liability (11,945,358 ) (11,224,156 ) Net deferred tax liability $ (11,322,691 ) $ (10,555,435 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted income (loss) per share | The following table sets forth the computation of basic and diluted net income per share: June 30, 2019 2018 Numerator Net income attributable to common shareholders $ 15,377,066 $ 19,618,484 Denominator Weighted average number of common shares – Basic 33,160,283 33,126,469 Effect of dilutive securities: Contingent restricted stock grants 9,435 52,066 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 33,169,718 33,178,535 Net income per common share – Basic $ 0.46 $ 0.59 Net income per common share – Diluted $ 0.46 $ 0.59 |
Schedule of outstanding potentially dilutive securities | The following were reflected in the calculation of diluted earnings per share in their respective fiscal years: Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 10,156 Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 28,562 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments under the operating lease | Future minimum lease commitments as of June 30, 2019 under this operating lease is as follows: For the Years Ended June 30, 2020 $ 34,322 2021 59,945 2022 61,843 2023 26,098 Total $ 182,208 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of customers from whom the entity derived 10 percent or more of net oil and natural gas revenues | The following table identifies customers from whom we derived 10 percent or more of our net oil and natural gas revenues during the years ended June 30, 2019 and 2018 . The loss of our purchaser at the Delhi field or disruption to pipeline transportation from the field could adversely affect our net realized pricing and potentially our near-term production levels. The loss of any of our other purchasers would not be expected to have a material adverse effect on our operations. Year Ended June 30, Customer 2019 2018 Plains Marketing L.P. (Oil sales from Delhi) 94 % 92 % American Midstream Gas Solutions. L.P. (NGL sales from Delhi) 6 % 8 % All others — % — % Total 100 % 100 % |
Supplemental Disclosures abou_2
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities | The following table summarizes costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities. Property acquisition costs are those costs incurred to lease property, including both undeveloped leasehold and the purchase of reserves in place. Exploration costs include costs of identifying areas that may warrant examination and examining specific areas that are considered to have prospects containing oil and natural gas reserves, including costs of drilling exploratory wells, geological and geophysical costs and carrying costs on undeveloped properties. Development costs are incurred to obtain access to proved reserves, including the cost of drilling. Exploration and development costs also include amounts incurred due to the recognition of asset retirement obligations of $86,384 and $43,922 during the years ended June 30, 2019 and 2018 , respectively. For the Years Ended June 30, 2019 2018 Oil and Natural Gas Activities Property acquisition costs: Proved property $ — $ — Unproved property (a) — — Exploration costs — — Development costs 5,229,235 5,429,985 Total costs incurred for oil and natural gas activities $ 5,229,235 $ 5,429,985 |
Schedule of estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves for each of the periods indicated were as follows: Crude Oil (Bbls) Natural Gas Liquids (Bbls) Natural Gas (Mcf) BOE Proved developed and undeveloped reserves: June 30, 2017 8,372,150 1,686,228 — 10,058,378 Revisions of previous estimates (a) 369,971 (315,090 ) — 54,881 Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (651,931 ) (93,366 ) — (745,297 ) June 30, 2018 8,090,190 1,277,772 — 9,367,962 Revisions of previous estimates (b) 152,420 199,078 — 351,498 Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (626,879 ) (112,089 ) — (738,968 ) June 30, 2019 7,615,731 1,364,761 — 8,980,492 Proved developed reserves: June 30, 2017 6,617,389 1,332,803 — 7,950,192 June 30, 2018 6,291,850 993,741 — 7,285,591 June 30, 2019 6,273,907 1,124,302 — 7,398,209 Proved undeveloped reserves: June 30, 2017 1,754,761 353,425 — 2,108,186 June 30, 2018 1,798,340 284,031 — 2,082,371 June 30, 2019 1,341,824 240,459 — 1,582,283 (a) The positive crude oil revision resulted from better production performance during fiscal 2018. The negative NGL revision results primarily from lower expectations for ultimate NGL recoveries from the plant based on production data subsequent to the commencement of plant production. (b) The positive crude oil and NGL revisions were the result of improvements in well and NGL plant performance respectively. |
Schedule of standardized measure of discounted future net cash flows related to proved oil and natural gas reserves | The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves as of June 30, 2019 and 2018 are as follows: As of June 30, 2019 2018 Future cash inflows $ 524,037,200 $ 521,533,765 Future production costs and severance taxes (208,539,679 ) (228,478,119 ) Future development costs (18,395,252 ) (22,213,269 ) Future income tax expenses (55,881,997 ) (50,810,883 ) Future net cash flows 241,220,272 220,031,494 10% annual discount for estimated timing of cash flows (114,488,230 ) (101,073,080 ) Standardized measure of discounted future net cash flows $ 126,732,042 $ 118,958,414 |
Schedule of NYMEX prices used in determining future cash flows | Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the previous 12 months unweighted arithmetic average first-day-of-the-month commodity prices for each year and reflect adjustments for lease quality, transportation fees, energy content and regional price differentials. For the Years Ended June 30, 2019 2018 Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) NYMEX prices used in determining future cash flows $ 61.62 n/a $ 57.50 n/a |
Schedule of changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves | A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves is as follows: For the Years Ended June 30, 2019 2018 Balance, beginning of the fiscal year $ 118,958,414 $ 82,937,553 Net changes in sales prices and production costs related to future production 23,753,518 62,011,112 Changes in estimated future development costs 833,494 267,547 Sales of oil and gas produced during the period, net of production costs (28,962,837 ) (29,087,710 ) Net change due to extensions, discoveries, and improved recovery — — Net change due to revisions in quantity estimates 6,129,847 888,896 Net change due to sales of minerals in place — — Development costs incurred during the period 2,089,139 — Accretion of discount 14,604,387 11,089,455 Net change in discounted income taxes (2,795,183 ) 871,540 Net changes in timing of production and other (7,878,737 ) (10,019,979 ) Balance, end of the fiscal year $ 126,732,042 $ 118,958,414 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial information | The following table presents summarized quarterly financial information for the fiscal years ended June 30, 2019 and 2018 : 2019 First (1) Second Third Fourth Revenues $ 12,307,079 $ 11,048,118 $ 9,501,028 $ 10,373,396 Operating income 5,994,927 4,733,747 2,952,955 3,955,194 Net income available to common shareholders $ 5,795,801 $ 3,904,565 $ 2,398,875 $ 3,277,825 Basic net income per share $ 0.18 $ 0.12 $ 0.07 $ 0.10 Diluted net income per share $ 0.17 $ 0.12 $ 0.07 $ 0.10 2018 First Second (2) Third Fourth Revenues $ 8,537,871 $ 11,066,911 $ 10,249,566 $ 11,426,864 Operating income 2,536,459 4,829,252 3,663,267 5,182,663 Net income available to common shareholders $ 2,140,532 $ 9,876,848 $ 3,068,354 $ 4,532,750 Basic net income per share $ 0.06 $ 0.30 $ 0.09 $ 0.14 Diluted net income per share $ 0.06 $ 0.30 $ 0.09 $ 0.14 (1) The first quarter of fiscal 2019 included other income of $1.1 million for the Enduro transaction breakup fee. (2) The second quarter of fiscal 2018 was impacted by a $6 million tax benefit attributable to the Tax Cut and Jobs Act enacted during December 2017. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jul. 01, 2019USD ($) | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Revenue Recognition - Oil and Gas | |||
Receivables from oil and gas sales | $ 3,200,000 | 3,900,000 | |
Oil and natural gas properties | |||
Limitation on Capitalized Costs | |||
Period considered for computing unweighted arithmetic average of oil and natural gas prices (in months) | 12 months | ||
Other Property and Equipment | Minimum | |||
Other Property and Equipment | |||
Expected lives of the individual assets or group of assets | 3 years | ||
Other Property and Equipment | Maximum | |||
Other Property and Equipment | |||
Expected lives of the individual assets or group of assets | 7 years | ||
Discount rate | Oil and natural gas properties | |||
Limitation on Capitalized Costs | |||
Discount rate for present value (as a percent) | 0.10 | ||
ASU 2014-09 | |||
Revenue Recognition - Oil and Gas | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 507,685 | ||
ASU 2016-02 | |||
Revenue Recognition - Oil and Gas | |||
ROU asset | $ 165,000 | ||
Forecast | ASU 2016-02 | |||
Summary of Significant Accounting Policies | |||
Operating Lease, Liability | $ 165,000 |
Enduro Purchase and Sale Agre_2
Enduro Purchase and Sale Agreement and "Stalking Horse" Bid - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
May 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | |
Asset Acquisition [Line Items] | |||
Third party due diligence expense | $ 400 | ||
Affiliate of Enduro Resource Partners LLC | |||
Asset Acquisition [Line Items] | |||
Other income | $ 1,100 | ||
Purchase price of oil and gas assets | $ 27,500 | ||
Escrow deposit | $ 2,750 |
Receivables (Details)
Receivables (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Receivables [Abstract] | ||
Receivables from oil and gas sales | $ 3,168,116 | $ 3,940,998 |
Other | 0 | 918 |
Total receivables | $ 3,168,116 | $ 3,941,916 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 206,198 | $ 198,558 |
Prepaid federal and state income taxes | 121,679 | 231,920 |
Retainers and deposits | 8,019 | 11,089 |
Other prepaid expenses | 122,382 | 82,940 |
Prepaid expenses and other current assets | $ 458,278 | $ 524,507 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Oil and natural gas properties: | ||
Property costs subject to amortization | $ 95,622,153 | $ 90,392,918 |
Less: Accumulated depreciation, depletion, and amortization | (35,275,687) | (29,153,172) |
Unproved properties not subject to amortization | 0 | 0 |
Oil and natural gas properties, net | 60,346,466 | 61,239,746 |
Other property and equipment: | ||
Furniture, fixtures and office equipment, at cost | 154,731 | 143,223 |
Less: Accumulated depreciation | (128,313) | (112,816) |
Other property and equipment, net | $ 26,418 | $ 30,407 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Delhi Field | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $ 5.2 | $ 5.4 |
Other Assets (Details)
Other Assets (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Royalty rights | $ 108,512 | $ 108,512 |
Less: Accumulated amortization of royalty rights | (47,474) | (33,910) |
Investment in Well Lift Inc., at cost | 108,750 | 108,750 |
Deferred loan costs | 168,972 | 168,972 |
Less: Accumulated amortization of deferred loan costs | (141,927) | (126,771) |
Software license | 20,662 | 20,662 |
Less: Accumulated amortization of software license | (7,462) | (1,380) |
Other assets, net | $ 210,033 | $ 244,835 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - Well Lift Inc. | 12 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Line Items] | |
Perpetual royalty percentage | 5.00% |
Ownership percentage | 17.50% |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Schedule of Other Current Liabilities (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued incentive and other compensation | $ 369,719 | $ 415,182 |
Accrued severance | 0 | 160,089 |
Asset retirement obligations due within one year | 50,244 | 35,539 |
Accrued royalties, including suspended accounts | 11,554 | 11,498 |
Accrued franchise taxes | 5,738 | 162,805 |
Accrued ad valorem taxes | 100,500 | 89,773 |
Accrued liabilities and other | $ 537,755 | $ 874,886 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of the beginning and ending asset retirement obligation | ||
Asset retirement obligations—beginning of period | $ 1,422,955 | $ 1,288,743 |
Liabilities incurred | 31,268 | 44,700 |
Accretion of discount | 101,506 | 90,290 |
Revisions to previous estimates | 55,116 | (778) |
Asset retirement obligations—ending of period | 1,610,845 | 1,422,955 |
Less: current asset retirement obligations | (50,244) | (35,539) |
Long-term portion of asset retirement obligations | $ 1,560,601 | $ 1,387,416 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 66 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | May 12, 2015 | |
Class of Stock [Line Items] | ||||||
Common stock, outstanding shares | 33,183,730 | 33,183,730 | 33,080,543 | 33,183,730 | ||
Common stock dividends paid | $ 13,272,058 | $ 11,594,541 | $ 59,400,000 | |||
Total cost of treasury shares acquired | $ 156,791 | $ 571,083 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Purchases of treasury stock (shares) | 18,424 | 73,208 | ||||
2015 Share Repurchase Program | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 5,000,000 | |||||
Purchases of treasury stock (shares) | 430 | 266,192 | 18,424 | 73,208 | ||
Treasury stock acquired, average cost (in USD per share) | $ 6.07 | $ 6.05 | $ 8.51 | $ 7.80 | ||
Total cost of treasury shares acquired | $ 1,611,620 | $ 156,791 | $ 571,083 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Dividends Paid 1 | ||
Dividends Payable [Line Items] | ||
Cash dividends paid (per common share) | $ 0.10 | $ 0.10 |
Dividends Paid 2 | ||
Dividends Payable [Line Items] | ||
Cash dividends paid (per common share) | 0.10 | 0.10 |
Dividends Paid 3 | ||
Dividends Payable [Line Items] | ||
Cash dividends paid (per common share) | 0.10 | 0.075 |
Dividends Paid 4 | ||
Dividends Payable [Line Items] | ||
Cash dividends paid (per common share) | $ 0.10 | $ 0.075 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Shares (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Total cost of treasury shares acquired | $ 156,791 | $ 571,083 | ||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of treasury shares acquired (shares) | 18,424 | 73,208 | ||
Common Stock | 2015 Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of treasury shares acquired (shares) | 430 | 266,192 | 18,424 | 73,208 |
Average cost per share (in USD per share) | $ 6.07 | $ 6.05 | $ 8.51 | $ 7.80 |
Total cost of treasury shares acquired | $ 1,611,620 | $ 156,791 | $ 571,083 |
Stock-Based Incentive Plan - Na
Stock-Based Incentive Plan - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 08, 2016 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vested (in shares) | 0 | 0 | 0 | |
Restricted Stock and Contingent Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 888,162 | $ 1,366,764 | ||
Restricted Stock, Service Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 66,992 | |||
Vesting period (in years) | 1 year | |||
Shares outstanding (in shares) | 112,381 | |||
Restricted Stock, Service Based | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 31,777 | |||
Restricted Stock, Service Based | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 35,215 | |||
Restricted Stock, Performance Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 0 | |||
Restricted Stock, Performance Based | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 0 | |||
Restricted Stock, Market Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 43,990 | 0 | ||
Shares outstanding (in shares) | 64,302 | |||
Restricted Stock, Market Based | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 43,990 | |||
Contingent Restricted Stock Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding (in shares) | 10,156 | 28,562 | ||
Contingent Restricted Stock Grants | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 0 | |||
2016 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for granting (shares) | 1,100,000 | |||
Shares available for grant (shares) | 852,111 | |||
2004 Stock Plan | Restricted Stock and Contingent Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 4 years | |||
2004 Stock Plan | Service-Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 1 year | |||
Minimum | 2004 Stock Plan | Other Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 3 years | |||
Maximum | 2004 Stock Plan | Other Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 4 years |
Stock-Based Incentive Plan - Fa
Stock-Based Incentive Plan - Fair Value Assumptions (Details) | 12 Months Ended |
Jun. 30, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.69% |
Expected life in years | 2 years 9 months 26 days |
Expected volatility | 41.80% |
Dividend yield | 4.00% |
Restricted Stock, Market Based | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of market-based awards granted (in dollars per share) | $ 8.24 |
Stock-Based Incentive Plan - Sc
Stock-Based Incentive Plan - Schedule of Restricted Stock (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock | ||
Number of Restricted Shares | ||
Nonvested, beginning of period (shares) | 199,477 | |
Vested (shares) | (133,776) | |
Nonvested, end of period (shares) | 176,683 | 199,477 |
Weighted Average Grant-Date Fair Value | ||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 6.83 | |
Vested, weighted average grant date fair value (in USD per share) | 6.80 | |
Weighted average grant date fair value, end of period (in USD per share) | $ 8.09 | $ 6.83 |
Unamortized compensation expense | $ 848,262 | $ 0 |
Weighted Average Remaining Amortization Period (in years) | 1 year 9 months | |
Restricted Stock, Service Based | ||
Number of Restricted Shares | ||
Grants (shares) | 66,992 | |
Nonvested, end of period (shares) | 112,381 | |
Weighted Average Grant-Date Fair Value | ||
Grants, weighted average grant date fair value (in USD per share) | $ 9.17 | |
Weighted average grant date fair value, end of period (in USD per share) | $ 8.52 | |
Restricted Stock, Market Based | ||
Number of Restricted Shares | ||
Grants (shares) | 43,990 | 0 |
Nonvested, end of period (shares) | 64,302 | |
Weighted Average Grant-Date Fair Value | ||
Grants, weighted average grant date fair value (in USD per share) | $ 8.24 | |
Weighted average grant date fair value, end of period (in USD per share) | $ 7.35 |
Stock-Based Incentive Plan - Ve
Stock-Based Incentive Plan - Vesting Date Restricted Stock (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting-date intrinsic value of Restricted Stock | $ 1,141,631 | $ 1,622,937 |
Grant-date fair value of vested Restricted Stock | $ 909,678 | $ 1,427,498 |
Awards vested (in shares) | 133,776 | 211,960 |
Contingent Restricted Stock Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting-date intrinsic value of Restricted Stock | $ 105,227 | $ 347,852 |
Grant-date fair value of vested Restricted Stock | $ 60,266 | $ 155,744 |
Awards vested (in shares) | 10,629 | 46,630 |
Stock-Based Incentive Plan - _2
Stock-Based Incentive Plan - Schedule of Contingent Restricted Stock (Details) - Contingent Restricted Stock Grants | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Number of Restricted Stock Units | |
Nonvested, beginning of period (shares) | shares | 28,562 |
Expired (shares) | shares | (7,777) |
Vested (shares) | shares | (10,629) |
Nonvested, end of period (shares) | shares | 10,156 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant date fair value, beginning of period (in USD per share) | $ / shares | $ 6.06 |
Expired, weighted average grant date fair value (in USD per share) | $ / shares | 10.05 |
Vested, weighted average grant date fair value (in USD per share) | $ / shares | 5.67 |
Weighted average grant date fair value, end of period (in USD per share) | $ / shares | $ 3.42 |
Unamortized compensation expense | $ | $ 0 |
Weighted Average Remaining Amortization Period (in years) | 0 years |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Schedule of Supplement Cash Flow (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Income taxes paid | $ 2,762,919 | $ 1,826,754 |
Non-cash transactions: | ||
Increase (decrease) in accrued purchases of property and equipment | (1,603,290) | 1,695,218 |
Oil and natural gas property costs attributable to the recognition of asset retirement obligations | $ 86,384 | $ 43,922 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Income tax provision (benefit) | $ 3,482,361 | $ (3,431,969) |
Income tax rate percentage | 18.50% | (21.20%) |
Deferred tax benefit | $ (6,100,000) | |
Statutory federal tax rate percentage | 21.00% | 27.55% |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Tax loss carryforward from reverse merger | $ 600,000 | |
Carryforward from reverse merger | 200,000 | |
Annual amount of carryforward from reverse merger through 2023 | $ 39,648 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Current: | ||
Federal | $ 2,343,512 | $ 1,186,649 |
State | 371,593 | 652,238 |
Total current income tax provision | 2,715,105 | 1,838,887 |
Deferred: | ||
Federal | 387,541 | (5,498,890) |
State | 379,715 | 228,034 |
Total deferred income tax provision (benefit) | 767,256 | (5,270,856) |
Total income tax provision | $ 3,482,361 | $ (3,431,969) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax provision (benefit) computed at the statutory federal rate | $ 3,960,480 | $ 4,459,940 |
Adjustment of deferred income liability for the Tax Act's lower statutory federal tax rate | 0 | (5,949,389) |
Change in valuation allowance due to enactment of the Tax Act | 0 | (111,818) |
Expiration of Section 382 tax loss carryforwards | 127,410 | 0 |
Change in valuation allowance for Section 382 tax loss carryforwards | (127,410) | 0 |
Depletion in excess of tax basis | (982,302) | (2,433,530) |
State income taxes, net of federal tax benefit | 593,533 | 718,337 |
Permanent differences related to stock-based compensation | (73,671) | (139,333) |
Other | (15,679) | 23,824 |
Total income tax provision | $ 3,482,361 | $ (3,431,969) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax (benefit) provision computed at the statutory federal rate | 21.00% | 27.55% |
Adjustment of deferred income liability for the Tax Act's lower statutory federal tax rate | 0.00% | (36.80%) |
Change in valuation allowance due to enactment of the Tax Act | 0.00% | (0.70%) |
Expiration of Section 382 tax loss carryforwards | 0.70% | 0.00% |
Change in valuation allowance for Section 382 tax loss carryforwards | (0.70%) | 0.00% |
Depletion in excess of tax basis | (5.10%) | (14.90%) |
State income taxes, net of federal tax benefit | 3.10% | 4.40% |
Permanent differences related to stock-based compensation | (0.40%) | (0.90%) |
Other | (0.10%) | 0.10% |
Income tax (benefit) provision | 18.50% | (21.20%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Non-qualified stock-based compensation | $ 159,090 | $ 144,956 |
Net operating loss carry-forwards | 496,082 | 680,186 |
Other | 20,713 | 24,207 |
Gross deferred tax assets | 675,885 | 849,349 |
Valuation allowance | (53,218) | (180,628) |
Total deferred tax assets | 622,667 | 668,721 |
Deferred tax liability: | ||
Oil and natural gas properties | (11,945,358) | (11,224,156) |
Total deferred tax liability | (11,945,358) | (11,224,156) |
Net deferred tax liability | $ (11,322,691) | $ (10,555,435) |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator | ||||||||||
Net income attributable to common shareholders | $ 3,277,825 | $ 2,398,875 | $ 3,904,565 | $ 5,795,801 | $ 4,532,750 | $ 3,068,354 | $ 9,876,848 | $ 2,140,532 | $ 15,377,066 | $ 19,618,484 |
Denominator | ||||||||||
Weighted average number of common shares—Basic (in shares) | 33,160,283 | 33,126,469 | ||||||||
Effect of dilutive securities: | ||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS (in shares) | 33,169,718 | 33,178,535 | ||||||||
Net income per common share - Basic (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.12 | $ 0.18 | $ 0.14 | $ 0.09 | $ 0.30 | $ 0.06 | $ 0.46 | $ 0.59 |
Net income per common share - Diluted (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.12 | $ 0.17 | $ 0.14 | $ 0.09 | $ 0.30 | $ 0.06 | $ 0.46 | $ 0.59 |
Contingent restricted stock grants | ||||||||||
Effect of dilutive securities: | ||||||||||
Contingent restricted stock grants | 9,435 | 52,066 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Outstanding Potentially Dilutive Securities (Details) - Contingent Restricted Stock grants - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted Average Exercise Price (in dollars per share) | $ 0 | $ 0 |
Outstanding (in shares) | 10,156 | 28,562 |
Credit Agreements (Details)
Credit Agreements (Details) - Line of Credit - Senior Secured Reserve-Based Credit Facility - Revolving Credit Facility | Apr. 11, 2016USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||
Term of debt instrument | 3 years | |
Maximum borrowing capacity | $ 50,000,000 | $ 40,000,000 |
Commitment fee percentage | 0.25% | |
Maximum total leverage ratio (not more than) | 3 | |
Debt service coverage ratio (not less than) | 1.10 | |
Minimum consolidated tangible net worth | $ 50,000,000 | |
Debt issuance costs | $ 168,972 | |
Unamortized debt issuance costs | $ 27,045 | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Term of operating lease (in years) | 3 years | |
Rent expense | $ 73,289 | $ 76,666 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Commitments (Details) | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 34,322 |
2020 | 59,945 |
2021 | 61,843 |
2022 | 26,098 |
Total | $ 182,208 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Schedule of Credit Risk (Details) - Net revenue - Major Customers | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Concentrations of Credit Risk | ||
Percent of Total Revenue | 100.00% | 100.00% |
Plains Marketing L.P. (Oil sales from Delhi) | ||
Concentrations of Credit Risk | ||
Percent of Total Revenue | 94.00% | 92.00% |
American Midstream Gas Solutions. L.P. (NGL sales from Delhi) | ||
Concentrations of Credit Risk | ||
Percent of Total Revenue | 6.00% | 8.00% |
All others | ||
Concentrations of Credit Risk | ||
Percent of Total Revenue | 0.00% | 0.00% |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||
Employer match of employee contributions of first 6% of eligible compensation (as a percent) | 100.00% | |
Percentage of eligible compensation, matched 100% by employer | 6.00% | |
Matching contribution to the plan | $ 52,809 | $ 43,134 |
Supplemental Disclosures abou_3
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Oil and natural gas property costs attributable to the recognition of asset retirement obligations | $ 86,384 | $ 43,922 |
Period Considered for Unweighted Arithmetic Average for Determining Reserve Volumes and Values | 12 months | |
Period Considered for Determining Unweighted Arithmetic Average of First Day of Month, Commodity Prices | 12 months |
Supplemental Disclosures abou_4
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Schedule of Costs Incurred and Capitalized in Oil and Natural Gas Property Acquisition, Exploration, and Development (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property acquisition costs: | ||
Proved property | $ 0 | $ 0 |
Unproved property | 0 | 0 |
Exploration costs | 0 | 0 |
Development costs | 5,229,235 | 5,429,985 |
Total costs incurred for oil and natural gas activities | $ 5,229,235 | $ 5,429,985 |
Supplemental Disclosures abou_5
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Estimated Quantities of Proved Oil and Natural Gas Reserves (Details) | 12 Months Ended | ||||
Jun. 30, 2019BoeMcfbbl | Jun. 30, 2018BoeMcfbbl | Jun. 30, 2017BoeMcfbbl | |||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Balance at the beginning of the period (in BOE) | Boe | 9,367,962 | 10,058,378 | |||
Revisions of previous estimates (in BOE) | Boe | 351,498 | [1] | 54,881 | [2] | |
Improved recovery, extensions and discoveries (in BOE) | Boe | 0 | 0 | |||
Sales of minerals in place (in BOE) | Boe | 0 | 0 | |||
Production (sales volumes) (in BOE) | Boe | (738,968) | (745,297) | |||
Balance at the end of the period (in BOE) | Boe | 8,980,492 | 9,367,962 | |||
Proved developed reserves (in BOE) | Boe | 7,398,209 | 7,285,591 | 7,950,192 | ||
Proved undeveloped reserves (in BOE) | Boe | 1,582,283 | 2,082,371 | 2,108,186 | ||
Crude Oil | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Balance at the beginning of the period (in Bbls/Mcf) | 8,090,190 | 8,372,150 | |||
Revisions of previous estimates (in Bbls/Mcf) | 152,420 | [1] | 369,971 | [2] | |
Improved recovery, extensions and discoveries (in Bbls/Mcf) | 0 | 0 | |||
Sales of minerals in place (in Bbls/Mcf) | 0 | 0 | |||
Production (sales volumes) (in Bbls/Mcf) | (626,879) | (651,931) | |||
Balance at the end of the period (in Bbls/Mcf) | 7,615,731 | 8,090,190 | |||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Proved developed reserves (in Bbls/Mcf) | 6,273,907 | 6,291,850 | 6,617,389 | ||
Proved undeveloped reserves (in Bbls/Mcf) | 1,341,824 | 1,798,340 | 1,754,761 | ||
Natural Gas Liquids | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Balance at the beginning of the period (in Bbls/Mcf) | 1,277,772 | 1,686,228 | |||
Revisions of previous estimates (in Bbls/Mcf) | 199,078 | [1] | (315,090) | [2] | |
Improved recovery, extensions and discoveries (in Bbls/Mcf) | 0 | 0 | |||
Sales of minerals in place (in Bbls/Mcf) | 0 | 0 | |||
Production (sales volumes) (in Bbls/Mcf) | (112,089) | (93,366) | |||
Balance at the end of the period (in Bbls/Mcf) | 1,364,761 | 1,277,772 | |||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Proved developed reserves (in Bbls/Mcf) | 1,124,302 | 993,741 | 1,332,803 | ||
Proved undeveloped reserves (in Bbls/Mcf) | 240,459 | 284,031 | 353,425 | ||
Natural Gas | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Balance at the beginning of the period (in Bbls/Mcf) | Mcf | 0 | 0 | |||
Revisions of previous estimates (in Bbls/Mcf) | Mcf | 0 | [1] | 0 | [2] | |
Improved recovery, extensions and discoveries (in Bbls/Mcf) | Mcf | 0 | 0 | |||
Sales of minerals in place (in Bbls/Mcf) | Mcf | 0 | 0 | |||
Production (sales volumes) (in Bbls/Mcf) | Mcf | 0 | 0 | |||
Balance at the end of the period (in Bbls/Mcf) | Mcf | 0 | 0 | |||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | |||||
Proved developed reserves (in Bbls/Mcf) | Mcf | 0 | 0 | 0 | ||
Proved undeveloped reserves (in Bbls/Mcf) | Mcf | 0 | 0 | 0 | ||
[1] | The positive crude oil and NGL revisions were the result of improvements in well and NGL plant performance respectively. | ||||
[2] | The positive crude oil revision resulted from better production performance during fiscal 2018. The negative NGL revision results primarily from lower expectations for ultimate NGL recoveries from the plant based on production data subsequent to the commencement of plant production. |
Supplemental Disclosures abou_6
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Natural Gas Reserves (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Standardized measure of discounted future net cash flows | |||
Future cash inflows | $ 524,037,200 | $ 521,533,765 | |
Future production costs and severance taxes | (208,539,679) | (228,478,119) | |
Future development costs | (18,395,252) | (22,213,269) | |
Future income tax expenses | (55,881,997) | (50,810,883) | |
Future net cash flows | 241,220,272 | 220,031,494 | |
10% annual discount for estimated timing of cash flows | (114,488,230) | (101,073,080) | |
Standardized measure of discounted future net cash flows | $ 126,732,042 | $ 118,958,414 | $ 82,937,553 |
Supplemental Disclosures abou_7
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Schedule of NYMEX Prices Used in Determining Future Cash Flows (Details) | 12 Months Ended | |
Jun. 30, 2019$ / bbl$ / MMBtu | Jun. 30, 2018$ / bbl$ / MMBtu | |
Oil (per barrel) | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Commodity Prices Used in Determining Future Cash Flows | $ / bbl | 61.62 | 57.50 |
Gas (per million BTU) | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||
Commodity Prices Used in Determining Future Cash Flows | $ / MMBtu | 0 | 0 |
Supplemental Disclosures abou_8
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Roll Forward of Changes in Standardized Measure of Discount Future Cash Flows on Proved Crude Oil, Natural Gas Liquids, and Natural Gas Reserves (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves | ||
Balance, beginning of year | $ 118,958,414 | $ 82,937,553 |
Net changes in sales prices and production costs related to future production | 23,753,518 | 62,011,112 |
Changes in estimated future development costs | 833,494 | 267,547 |
Sales of oil and gas produced during the period, net of production costs | (28,962,837) | (29,087,710) |
Net change due to extensions, discoveries, and improved recovery | 0 | 0 |
Net change due to revisions in quantity estimates | 6,129,847 | 888,896 |
Net change due to sales of minerals in place | 0 | 0 |
Development costs incurred during the period | 2,089,139 | 0 |
Accretion of discount | 14,604,387 | 11,089,455 |
Net change in discounted income taxes | (2,795,183) | 871,540 |
Net changes in timing of production and other | (7,878,737) | (10,019,979) |
Balance, end of year | $ 126,732,042 | $ 118,958,414 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Revenues | $ 10,373,396 | $ 9,501,028 | $ 11,048,118 | $ 12,307,079 | $ 11,426,864 | $ 10,249,566 | $ 11,066,911 | $ 8,537,871 | $ 43,229,621 | $ 40,773,527 |
Operating income | 3,955,194 | 2,952,955 | 4,733,747 | 5,994,927 | 5,182,663 | 3,663,267 | 4,829,252 | 2,536,459 | 17,636,823 | 16,211,641 |
Net income available to common shareholders | $ 3,277,825 | $ 2,398,875 | $ 3,904,565 | $ 5,795,801 | $ 4,532,750 | $ 3,068,354 | $ 9,876,848 | $ 2,140,532 | $ 15,377,066 | $ 19,618,484 |
Basic net income per share (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.12 | $ 0.18 | $ 0.14 | $ 0.09 | $ 0.30 | $ 0.06 | $ 0.46 | $ 0.59 |
Diluted net income per share (in dollars per share) | $ 0.10 | $ 0.07 | $ 0.12 | $ 0.17 | $ 0.14 | $ 0.09 | $ 0.30 | $ 0.06 | $ 0.46 | $ 0.59 |
Tax cuts and jobs act benefit | $ 6,000,000 | |||||||||
Affiliate Of Enduro Resource Partners LLC | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Other income | $ 1,100,000 |