Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2022 | Feb. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --06-30 | |
Document Transition Report | false | |
Entity File Number | 001-32942 | |
Entity Registrant Name | EVOLUTION PETROLEUM CORP | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 41-1781991 | |
Entity Address, Address Line One | 1155 Dairy Ashford Road | |
Entity Address, Address Line Two | Suite 425 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77079 | |
City Area Code | 713 | |
Local Phone Number | 935-0122 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | EPM | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,717,300 | |
Entity Central Index Key | 0001006655 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 3,710 | $ 8,280 |
Receivables from crude oil, natural gas, and natural gas liquids revenues | 18,213 | 24,043 |
Derivative contract assets | 244 | 170 |
Prepaid expenses and other current assets | 1,908 | 3,875 |
Total current assets | 24,075 | 36,368 |
Property and equipment, net of depletion, depreciation, accretion, and impairment | ||
Oil and natural gas properties, net-full-cost method of accounting, of which none were excluded from amortization | 106,227 | 110,508 |
Other assets, net | 1,358 | 1,171 |
Total assets | 131,660 | 148,047 |
Current liabilities | ||
Accounts payable | 10,091 | 15,133 |
Accrued liabilities and other | 9,883 | 11,893 |
Derivative contract liabilities | 49 | 2,164 |
State and federal taxes payable | 1,151 | 1,095 |
Total current liabilities | 21,174 | 30,285 |
Long term liabilities | ||
Senior secured credit facility | 21,250 | |
Deferred income taxes | 6,744 | 7,099 |
Asset retirement obligations | 14,455 | 13,899 |
Operating lease liability | 149 | |
Total liabilities | 42,522 | 72,533 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 33,808,233 and 33,470,710 shares as of December 31, 2022 and June 30, 2022, respectively | 34 | 33 |
Additional paid-in capital | 43,243 | 42,629 |
Retained earnings | 45,861 | 32,852 |
Total stockholders' equity | 89,138 | 75,514 |
Total liabilities and stockholders' equity | $ 131,660 | $ 148,047 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2022 | Jun. 30, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued shares (in shares) | 33,808,233 | 33,470,710 |
Common stock, outstanding shares (in shares) | 33,808,233 | 33,470,710 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | ||||
Total revenues | $ 33,676 | $ 22,339 | $ 73,473 | $ 41,218 |
Operating costs | ||||
Lease operating costs | 15,041 | 10,671 | 34,157 | 19,296 |
Depletion, depreciation, and accretion | 3,458 | 1,224 | 7,056 | 2,752 |
General and administrative expenses | 2,581 | 1,823 | 5,053 | 3,763 |
Total operating costs | 21,080 | 13,718 | 46,266 | 25,811 |
Income (loss) from operations | 12,596 | 8,621 | 27,207 | 15,407 |
Other income and expenses | ||||
Net gain (loss) on derivative contracts | 846 | 243 | ||
Interest and other income | 7 | 7 | 13 | 10 |
Interest expense | (129) | (51) | (372) | (102) |
Income (loss) before income taxes | 13,320 | 8,577 | 27,091 | 15,315 |
Income tax (expense) benefit | (2,933) | (1,744) | (5,997) | (3,264) |
Net income (loss) | $ 10,387 | $ 6,833 | $ 21,094 | $ 12,051 |
Earnings (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.63 | $ 0.36 |
Diluted (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.62 | $ 0.36 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 33,174 | 32,929 | 33,154 | 32,896 |
Diluted (in shares) | 33,394 | 33,262 | 33,356 | 33,193 |
Crude oil | ||||
Revenues | ||||
Total revenues | $ 13,100 | $ 10,582 | $ 28,263 | $ 19,441 |
Natural gas liquids | ||||
Revenues | ||||
Total revenues | 3,206 | 2,587 | 7,992 | 7,149 |
Natural gas | ||||
Revenues | ||||
Total revenues | $ 17,370 | $ 9,170 | $ 37,218 | $ 14,628 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 108 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 21,094 | $ 12,051 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depletion, depreciation, and accretion | $ 3,458 | $ 1,224 | 7,056 | 2,752 | |
Stock-based compensation | 702 | 528 | |||
Settlement of asset retirement obligations | (71) | ||||
Deferred income taxes | (355) | (54) | |||
Unrealized (gain) loss on derivative contracts | (2,189) | ||||
Accrued settlements on derivative contracts | (919) | ||||
Other | (4) | (7) | |||
Changes in operating assets and liabilities: | |||||
Receivables | 8,113 | (4,253) | |||
Prepaid expenses and other current assets | (316) | 185 | |||
Accounts payable and accrued expenses | (5,398) | 2,122 | |||
State and federal income taxes payable | 56 | 569 | |||
Net cash provided by operating activities | 27,769 | 13,893 | |||
Cash flows from investing activities: | |||||
Acquisition of oil and natural gas properties | (31) | ||||
Capital expenditures for oil and natural gas properties | (2,886) | (526) | |||
Net cash used in investing activities | (2,917) | (526) | |||
Cash flows from financing activities: | |||||
Common stock dividends paid | (8,085) | (5,045) | $ (94,400) | ||
Common stock repurchases, including stock surrendered for tax withholding | (87) | (2) | |||
Repayments of credit facility | (21,250) | ||||
Net cash used in financing activities | (29,422) | (5,047) | |||
Net increase (decrease) in cash and cash equivalents | (4,570) | 8,320 | |||
Cash and cash equivalents, beginning of period | 8,280 | 5,277 | |||
Cash and cash equivalents, end of period | $ 3,710 | $ 13,597 | 3,710 | 13,597 | $ 3,710 |
Non-cash investing and financing transactions: | |||||
Settlement proceeds receivable attributable to acquired Barnett Shale oil and gas property costs | 858 | ||||
Increase (decrease) in accrued expenditures for oil and natural gas properties | $ (768) | $ 112 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total |
Balance (shares) at Jun. 30, 2021 | 33,515 | ||||
Balance at Jun. 30, 2021 | $ 34,000 | $ 42,541,000 | $ 12,020,000 | $ 54,595,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 254 | ||||
Forfeitures of restricted stock (shares) | (80) | ||||
Common stock repurchases, including stock surrendered for tax withholding | $ (2,000) | (1,599) | |||
Retirements of treasury stock | (2,000) | 2,000 | |||
Stock-based compensation | 528,000 | 528,000 | |||
Net income (loss) | 12,051,000 | 12,051,000 | |||
Common stock dividends paid | (5,045,000) | (5,045,000) | |||
Balance (shares) at Dec. 31, 2021 | 33,689 | ||||
Balance at Dec. 31, 2021 | $ 34,000 | 43,067,000 | 19,026,000 | 62,127,000 | |
Balance (shares) at Sep. 30, 2021 | 33,632 | ||||
Balance at Sep. 30, 2021 | $ 34,000 | 42,737,000 | 14,716,000 | 57,487,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 57 | ||||
Stock-based compensation | 330,000 | 330,000 | |||
Net income (loss) | 6,833,000 | 6,833,000 | |||
Common stock dividends paid | (2,523,000) | (2,523,000) | |||
Balance (shares) at Dec. 31, 2021 | 33,689 | ||||
Balance at Dec. 31, 2021 | $ 34,000 | 43,067,000 | 19,026,000 | 62,127,000 | |
Balance (shares) at Jun. 30, 2022 | 33,471 | ||||
Balance at Jun. 30, 2022 | $ 33,000 | 42,629,000 | 32,852,000 | 75,514,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 375 | ||||
Issuance of restricted common stock | $ 1,000 | (1,000) | |||
Forfeitures of restricted stock (shares) | (26) | ||||
Common stock repurchases, including stock surrendered for tax withholding | (87,000) | (86,690) | |||
Retirements of treasury stock (in shares) | (12) | ||||
Retirements of treasury stock | (87,000) | 87,000 | |||
Stock-based compensation | 702,000 | 702,000 | |||
Net income (loss) | 21,094,000 | 21,094,000 | |||
Common stock dividends paid | (8,085,000) | (8,085,000) | |||
Balance (shares) at Dec. 31, 2022 | 33,808 | ||||
Balance at Dec. 31, 2022 | $ 34,000 | 43,243,000 | 45,861,000 | 89,138,000 | |
Balance (shares) at Sep. 30, 2022 | 33,546 | ||||
Balance at Sep. 30, 2022 | $ 33,000 | 42,811,000 | 39,533,000 | 82,377,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 296 | ||||
Issuance of restricted common stock | $ 1,000 | (1,000) | |||
Forfeitures of restricted stock (shares) | (26) | ||||
Common stock repurchases, including stock surrendered for tax withholding | (61,000) | (61,000) | |||
Retirements of treasury stock (in shares) | (8) | ||||
Retirements of treasury stock | (61,000) | $ 61,000 | |||
Stock-based compensation | 494,000 | 494,000 | |||
Net income (loss) | 10,387,000 | 10,387,000 | |||
Common stock dividends paid | (4,059,000) | (4,059,000) | |||
Balance (shares) at Dec. 31, 2022 | 33,808 | ||||
Balance at Dec. 31, 2022 | $ 34,000 | $ 43,243,000 | $ 45,861,000 | $ 89,138,000 |
Financial Statement Presentatio
Financial Statement Presentation | 6 Months Ended |
Dec. 31, 2022 | |
Financial Statement Presentation | |
Financial Statement Presentation | Note 1. Financial Statement Presentation Nature of Operations. The Company’s producing properties consist of non-operated interests in the following areas: the Jonah 2 Interim Financial Statements. Principles of Consolidation and Reporting. “Other receivables” “Additional Financial Statement Information” “Prepaids expenses and other current assets” “Receivables from crude oil, natural gas, and natural gas liquids revenues” Risk and Uncertainties. Use of Estimates. and the valuation of deferred income tax assets, (f) commitments and contingencies, and (g) accruals of crude oil, natural gas, and natural gas liquids (“NGL”) revenues and expenses. The Company analyzes estimates and judgements based on historical experience and various other assumptions and information that are believed to be reasonable. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as additional information is obtained, as new events occur, and as the Company’s environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s unaudited condensed consolidated financial statements. Correction of Immaterial Error During the year ended June 30, 2022, the Company identified an issue related to its historical process of calculating the Company’s earnings (loss) per common share (“EPS”). The Company grants restricted stock awards which entitle the recipient to all of the rights of a shareholder of the Company including non-forfeitable rights to receive all dividends or other distributions paid with respect to such shares. Unvested restricted stock is forfeitable until earned and therefore not considered outstanding for basic EPS. Because restricted stock awards have the non-forfeitable right to share in dividends and earnings with common shareholders prior to vesting, the Company must apply the two-class method of allocating distributed and undistributed earnings to unvested restricted stock and outstanding common shares. Historically, it was identified by management that the Company had not been applying the two-class method of calculating basic and diluted EPS in accordance with Accounting Standards Codification (“ASC”) 260, Earnings Per Share At March 31, 2022, the Company determined that its unvested restricted stock awards were participating securities which contain non-forfeitable rights to dividends. As a result, the Company was required to adjust “Net income (loss)” The Company concluded the adjustments were immaterial to its 2022 interim financial statements in accordance with the guidance in SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements. Net income (Loss) per common share The Company noted the following adjustments to its EPS presentation for the three and six months ended December 31, 2021 (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 As reported: Net income (loss) for earnings per share calculation $ 6,833 $ 12,051 Weighted average number of common shares outstanding — Basic 33,646 33,590 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,646 33,590 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 Revised: Net income (loss) for earnings per share calculation $ 6,690 $ 11,806 Weighted average number of common shares outstanding — Basic 32,929 32,896 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,262 33,193 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Other accounting pronouncements that have recently been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations, cash flows or disclosures. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition | |
Revenue Recognition | Note 2. Revenue Recognition The Company’s revenues are primarily generated from its crude oil, natural gas and NGL production from the Jonah the Company’s revenues by major product for the three and six months ended December 31, 2022 and 2021 (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Revenues Crude oil $ 13,100 $ 10,582 $ 28,263 $ 19,441 Natural gas 17,370 9,170 37,218 14,628 Natural gas liquids 3,206 2,587 7,992 7,149 Total revenues $ 33,676 $ 22,339 $ 73,473 $ 41,218 In the Jonah Field, the Company has elected to take its natural gas and NGL working interest production in-kind and markets separately to different purchasers for its natural gas and to Enterprise Products Partners L.P. (“Enterprise”) for its NGLs. The Company does not take production in-kind at any of its other properties and does not negotiate contracts with customers for such production. The Company recognizes crude oil, natural gas, and NGL production revenue at the point in time when custody and title (“control”) of the product transfers to the customer. The sales of oil and natural gas are made under contracts which the Company’s third-party operators of its wells have negotiated with customers, which typically include variable consideration that is based on pricing tied to local indices and volumes delivered in the current month. The Company receives payment from the sale of oil and natural gas production one Judgments made in applying the guidance in ASC 606, Revenue from Contracts with Customers The Company’s contractual performance obligations arise upon the production of hydrocarbons from wells in which the Company has an ownership interest. The performance obligations are considered satisfied at a point in time upon control transferring to a customer at a specified delivery point. Consideration is allocated to completed performance obligations at the end of an accounting period. Revenue is recorded in the month when contractual performance obligations are satisfied. However, settlement statements from the purchasers of hydrocarbons and the related cash consideration are received by field operators before distributing the Company’s share one “Receivables from crude oil, natural gas, and natural gas liquids revenues” |
Acquisitions
Acquisitions | 6 Months Ended |
Dec. 31, 2022 | |
Acquisitions | |
Acquisitions | Note 3. Acquisitions On April 1, 2022, the Company closed the acquisition of non-operated interests in the Jonah Field in Sublette County, Wyoming from Exaro Energy III, LLC (the “Jonah Field Acquisition”). After taking into account customary closing adjustments and an effective date of February 1, 2022, total cash consideration for the Jonah Field Acquisition was $26.4 million. The Company accounted for this transaction as an asset acquisition and allocated all of the purchase price (including $0.2 million of transaction costs) to proved oil and natural gas properties. Approximately, $1.6 million of the consideration transferred related to deposits transferred to the Company at closing, the largest related to a $1.2 million deposit with Enterprise for a gas gathering contract which was recorded to “ Other assets, net On January 14, 2022, the Company completed the acquisition of non-operated working interests in the Williston Basin in North Dakota from Foundation Energy Fund VII-A, LP and Foundation Energy Management, LLC (the “Williston Basin Acquisition”). After taking into account customary closing adjustments and an effective date of June 1, 2021, cash consideration was $25.2 million which included $0.3 million of capitalized transaction costs related to the acquisition. The Company accounted for the transaction as an asset acquisition and allocated all of the purchase price (including capitalized transaction costs) to proved oil and natural gas properties. The Company also recognized $2.4 million in non-cash asset retirement obligations. The transaction was funded with cash on hand and $16.0 million in borrowings under the Company’s Senior Secured Credit Facility. On May 7, 2021, the Company completed the acquisition of non-operated oil and natural gas properties in the Barnett Shale from Tokyo Gas Americas for net cash consideration of $17.4 million, after taking into account customary closing adjustments, and also recognized $2.8 million in non-cash asset retirement obligations (the “Barnett Shale Acquisition”). The Company accounted for the transaction as an asset acquisition and allocated all of the purchase price (including capitalized transaction costs) to proved oil and natural gas properties. During the six months ended December 31, 2021, the Company recorded a downward purchase price adjustment of $0.9 million related to its acquisition of the Barnett Shale as a result of the completion of the final settlement statement. In accordance with the FASB’s authoritative guidance on asset acquisitions, the Company allocated the cost of the above acquisitions to the assets acquired and liabilities assumed based on a relative fair value basis of the assets acquired and liabilities assumed, with no recognition of goodwill or bargain purchase gain recorded. Incremental legal and professional fees related directly to the acquisitions were capitalized as part of the acquisition cost. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements also utilize market assumptions of market participants. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2022 | |
Property and Equipment | |
Property and Equipment | Note 4. Property and Equipment Property and equipment as of December 31, 2022 and June 30, 2022 consisted of the following (in thousands): December 31, 2022 June 30, 2022 Oil and natural gas properties Property costs subject to amortization $ 190,853 $ 188,634 Less: Accumulated depletion, depreciation, and impairment (84,626) (78,126) Oil and natural gas properties, net $ 106,227 $ 110,508 As of December 31, 2022, all oil and natural gas property costs were subject to amortization. Depletion of oil and natural gas properties was $6.5 million and $2.5 million for the six months ended December 31, 2022 and 2021, respectively. During the six months ended December 31, 2022 and 2021, the Company incurred development capital expenditures of $2.1 million and $0.6 million, respectively. The Company uses the full cost method of accounting for its investments in oil and natural gas properties. All costs of acquisition, exploration, and development of oil and natural gas reserves are capitalized as the cost of oil and natural gas and properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs result in an impairment charge. At December 31, 2022, the ceiling test value of the Company’s reserves was calculated based on the first-day-of-the-month average for the 12-months ended December 31, 2022 of the West Texas Intermediate (“WTI”) crude oil spot price of $94.14 per barrel and Henry Hub natural gas spot price of $6.40 per MMBtu, adjusted by market differentials by field. The net price per barrel of NGLs was $48.50, which was based on historical differentials to WTI as NGLs do not have any single comparable reference index price. Using these prices, at December 31, 2022 the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and as a result, no impairment charge was necessary. At December 31, 2021, the ceiling test value of the Company’s reserves was calculated based on the first-day-of the month average for the 12-months ended December 31, 2021 of the WTI crude oil spot price of $66.55 per barrel and Henry Hub natural gas spot price of $3.64 per MMBtu, adjusted by market differentials by field. The net price per barrel of NGLs was $26.54, which was based on historical prices received as NGLs do not have any single comparable reference index price. Using these prices, at December 31, 2021 the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and as a result, no impairment charge was necessary. |
Senior Secured Credit Facility
Senior Secured Credit Facility | 6 Months Ended |
Dec. 31, 2022 | |
Senior Secured Credit Facility | |
Senior Secured Credit Facility | Note 5. Senior Secured Credit Facility On April 11, 2016, the Company entered into a three-year, senior secured reserve-based credit facility, as amended, (the “Senior Secured Credit Facility”) with MidFirst Bank in an amount up to $50.0 million with a current borrowing base of $50.0 million. On November 2, 2020, the Company entered into the Fifth Amendment to the Senior Secured Credit Facility extending the maturity to April 9, 2024. The borrowing base will be redetermined semiannually, with the lenders and the Company each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations. The borrowing base takes into account the estimated value of the Company’s oil and natural gas properties, proved reserves, total indebtedness, and other relevant factors consistent with customary oil and natural gas lending criteria. The Senior Secured Credit Facility carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Senior Secured Credit Facility will bear interest, at the Company’s option, at either London Interbank Offered Rate ("LIBOR") plus 2.75%, subject to a minimum LIBOR of 0.25%, or the Prime Rate, as defined under the Senior Secured Credit Facility, plus 1.00%. The Company may elect, at its option, to prepay any borrowings outstanding under the Senior Secured Credit Facility without premium or penalty. Amounts outstanding under the Senior Secured Credit Facility are guaranteed by the Company’s direct and indirect subsidiaries and secured by a security interest in substantially all of the properties of the Company and its subsidiaries. Borrowings under the Senior Secured Credit Facility may be used for the acquisition and development of oil and natural gas properties, investments in cash flow generating properties complimentary to the production of oil and natural gas, and for letters of credit or other general corporate purposes. The Senior Secured Credit Facility contains certain events of default, including non-payment; breaches or representation and warranties; non-compliance with covenants; cross-defaults to material indebtedness; voluntary or involuntary bankruptcy; judgments and change in control. The Senior Secured Credit Facility also contains financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (i) a maximum total leverage ratio of not more than 3.00 to 1.00, (ii) a current ratio of not less than 1.00 to 1.00, and (iii) a consolidated tangible net worth of not less than $40.0 million, each as defined in the Senior Secured Credit Facility. As of December 31, 2022, the Company did not have any borrowings outstanding under its Senior Secured Credit Facility, resulting in $50.0 million of available borrowing capacity. For the six months ended December 31, 2022 and 2021, the weighted average interest on borrowings under the Senior Secured Credit Facility was 5.25% and 3.00% based on LIBOR, respectively. As of December 31, 2022, the Company was in compliance with the financial covenants under the Senior Secured Credit Facility. On October 1, 2022, the Company was notified by MidFirst Bank that the borrowing base remained at $50.0 million and the Margined Collateral Value, as defined in the Ninth Amendment to the Senior Secured Credit Facility, was set as $130.0 million. The Company is required to enter into hedges on a rolling 12-month basis when the borrowings exceed 25% of the Margined Collateral Value. On February 7, 2022, the Company entered into the Ninth Amendment to the Senior Secured Credit Facility. This amendment, among other things, modified the definition of utilization percentage related to the required hedging covenant such that for the purposes of determining the amount of future production to hedge, the utilization of the Senior Secured Credit Facility will be based on the Margined Collateral Value, as defined in the agreement, to the extent it exceeds the borrowing base then in effect. This amendment also required the Company to enter into hedges for the next 12-month period ending February 2023, covering 25% of expected crude oil and natural gas production over that period. On November 9, 2021, the Company entered into the Eighth Amendment to the Senior Secured Credit Facility. This amendment, among other things, increased the borrowing base to $50.0 million and added a hedging covenant whereby the Company must hedge a minimum of 25% to 75% of future production on a rolling 12-month basis when 25% or more of the borrowing base is utilized. The hedging covenant was amended in the Ninth Amendment, as discussed above. On August 5, 2021 the Company entered into the Seventh Amendment to the Senior Secured Credit Facility which, among other things, added definitions for the terms “Acquired Entity or Mineral Interests” and “Acquired Entity or Mineral Interests EBITDA Adjustment.” Additionally, the consolidated tangible net worth covenant level was reduced to $40.0 million from $50.0 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 6. Income Taxes The Company files 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 periods presented in the unaudited condensed consolidated financial statements. The Company believes that it has 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 its 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 fiscal years ended June 30, 2019 through June 30, 2021 for federal tax purposes and for the fiscal years ended June 30, 2018 through June 30, 2021 for state tax purposes. To the extent the Company utilizes net operating losses (“NOLs”) generated in earlier years, such earlier years may also be subject to audit. For the six months ended December 31, 2022 the Company recognized income tax expense of $6.0 million and had an effective tax rate of 22.1% compared to an income tax expense of $3.3 million and an effective tax rate of 21.3% for the six months ended December 31, 2021. During the six months ended December 31, 2022 and 2021, the Company recognized an income tax benefit of $0.1 million and $0.1 million, respectively, related to the vesting of restricted stock awards. The Company’s effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the states of Louisiana, North Dakota, and Texas, due to percentage depletion in excess of basis, and other permanent differences. For both periods, the respective statutory federal tax rate was 21%. 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. |
Derivatives
Derivatives | 6 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Derivatives | Note 7. Derivatives The Company is exposed to certain risks relating to its ongoing business operations, including commodity price risk and interest rate risk. In accordance with the Company’s policy and the requirements under the Senior Secured Credit Facility (as discussed in Note 5, “Senior Secured Credit Facility” It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial or commodity hedging institutions deemed by management as competent and competitive market makers. As of December 31, 2022, the Company did not post collateral under any of its derivative contracts as they are secured under the Company’s Senior Secured Credit Facility. The Company has in the past, and may utilize in the future, costless put/call collars and fixed-price swaps to hedge a portion of its anticipated future production. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract, and a purchased put that establishes a minimum price. Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for the volumes under contract. The Company has elected not to designate its open derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of the derivative contracts and all payments and receipts on settled derivative contracts in “ Net gain (loss) on derivative contracts All derivative contracts are recorded at fair market value in accordance with ASC 815, Derivatives and Hedging Fair Value Measurement “Derivative contract assets” “Derivative contract liabilities” Derivatives not designated as hedging contracts Balance sheet Derivative Contract Assets Balance sheet Derivative Contract Liabilities under ASC 815 location December 31, 2022 June 30, 2022 location December 31, 2022 June 30, 2022 Commodity contracts Current assets - derivative contract assets $ 244 $ 170 Current liabilities - derivative contract liabilities $ 49 $ 2,164 Commodity contracts Other assets - derivative contract assets — — Long term liabilities - derivative contract liabilities — — Total derivatives not designated as hedging contracts under ASC 815 $ 244 $ 170 $ 49 $ 2,164 The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s unaudited condensed consolidated statements of operations for the three and six months ended December 31, 2022 and 2021 (in thousands). "Realized gain (loss) on derivative contracts" "Unrealized gain (loss) on derivative contracts" Derivatives not designated Location of gain (loss) Three Months Ended Six Months Ended as hedging contracts recognized in income on December 31, December 31, under ASC 815 derivative contracts 2022 2021 2022 2021 Commodity contracts: Realized gain (loss) on derivative contracts Other income and expenses - net gain (loss) on derivative contracts $ (224) $ — $ (1,946) $ — Unrealized gain (loss) on derivative contracts Other income and expenses - net gain (loss) on derivative contracts 1,070 — 2,189 — Total net gain (loss) on derivative contracts $ 846 $ — $ 243 $ — As of December 31, 2022, the Company had the following open crude oil and natural gas derivative contracts: Weighted Average Weighted Average Volumes in Floor Price per Ceiling Price per Period Instrument Commodity MMBTU/BBL MMBTU/BBL MMBTU/BBL January 2023 - February 2023 Collar Natural Gas 214,931 $ 3.75 $ 7.30 January 2023 - March 2023 Collar Natural Gas 220,875 5.25 7.50 January 2023 - February 2023 Collar Crude Oil 29,995 70.00 87.50 The Company presents the fair value of its derivative contracts at the gross amounts in the unaudited condensed consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts as of December 31, 2022 and June 30, 2022 (in thousands): Derivative Contracts Assets Derivative Contracts Liabilities Offsetting of Derivative Assets and Liabilities December 31, 2022 June 30, 2022 December 31, 2022 June 30, 2022 Gross amounts presented in the Consolidated Balance Sheet $ 244 $ 170 $ 49 $ 2,164 Amounts not offset in the Consolidated Balance Sheet (32) (170) (32) (170) Net amount $ 212 $ — $ 17 $ 1,994 The Company enters into an International Swap Dealers Association Master Agreements (“ISDA”) with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Fair Value Measurement | Note 8. 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 are 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 Derivative Instruments. December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 244 $ — $ 244 Liabilities Derivative contract liabilities $ — $ 49 $ — $ 49 June 30, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 170 $ — $ 170 Liabilities Derivative contract liabilities $ — $ 2,164 $ — $ 2,164 Derivative contracts listed above as Level 2 include costless put/call collars that are carried at fair value. The Company records the net change in fair value of these positions in “Net gain (loss) on derivative contracts” “Derivatives The Company’s derivative contracts are with large utilities with investment grade credit ratings which are believed to have minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance. Other Fair Value Measurements. Financial Instruments The Company follows the provisions of ASC 820, for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. These provisions apply to the Company’s initial measurement and any subsequent revision of asset retirement obligations (“ARO”) for which fair value is calculated using discounted future cash flows derived from historical costs and management’s expectations of future cost environments. Significant Level 3 inputs used in the calculation of ARO 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. See Note 9, “Asset Retirement Obligations |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | Note 9. Asset Retirement Obligations The Company’s ARO represents the estimated present value of the amount expected to be incurred to plug, abandon, and remediate its oil and natural gas properties at the end of their productive lives in accordance with applicable laws and regulations. The Company records the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties, net” “Depletion, depreciation and accretion” The following is a reconciliation of the activity related to the Company’s ARO liability (inclusive of the current portion) (in thousands): December 31, 2022 Asset retirement obligations — beginning of period $ 13,921 Accretion of discount 556 Asset retirement obligations — end of period 14,477 Less: current asset retirement obligations (22) Long-term portion of asset retirement obligations $ 14,455 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 10. Commitments and Contingencies The Company is subject to various claims and contingencies in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates. The Company discloses such matters if it believes there is a reasonable possibility that a future event or events will confirm a material loss through impairment of an asset or the incurrence of a material liability. The Company accrues a material loss if it believes it probable that a future event or events will confirm a loss and the loss is reasonably estimable. Furthermore, the Company will disclose any matter that is unasserted if it considers it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable and material in amount. The Company expenses legal defense costs as they are incurred. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | Note 11. Stockholders’ Equity Common Stock As of December 31, 2022, the Company had 33,808,233 shares of common stock outstanding. The Company began paying quarterly cash dividends on common stock in December 2013. As of December 31, 2022, the Company has cumulatively paid over $94.4 million in cash dividends. The Company paid dividends of $8.1 million and $5.0 million to its common stockholders during the six months ended December 31, 2022 and 2021, respectively. The following table reflects the dividends paid per share within the respective three-month periods: Fiscal Year 2023 2022 Second quarter ended December 31, $ 0.120 $ 0.075 First quarter ended September 30, 0.120 0.075 On September 8, 2022, the Board of Directors approved a share repurchase program, under which the Company is authorized to repurchase up to $25 million of its common stock through December 31, 2024. The Company intends to fund repurchases from working capital and cash provided by operating activities. The Board of Directors along with the management team believe that a share repurchase program is complimentary to the existing dividend policy and is a tax efficient means to further improve shareholder return. The shares may be repurchased from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors, including management’s assessment of the intrinsic value of the Company’s shares, the market price of the Company's common stock, general market and economic conditions, and applicable legal requirements. The value of shares authorized for repurchase by the Company's Board of Directors does not require the Company to repurchase such shares or guarantee that such shares will be repurchased, and the program may be suspended, modified, or discontinued at any time without prior notice. No shares were repurchased through this plan during the period ended December 31, 2022. Once the Company completed repayment of borrowings on its Senior Secured Credit Facility and emerged from its blackout period in December 2022, the Company entered into a Rule 10b5-1 plan that authorizes a broker to repurchase shares in the open market subject to pre-defined limitations on trading volume and price. The plan included a 30-day cooling off period that did not allow repurchases to commence until January 2023. The plan is effective until June 30, 2023, unless extended or renewed by the Company, and has a maximum authorized amount of $5 million over that period. The Company may alter the terms of the plan from time to time to the extent it determines changes are necessary to achieve the intended objectives of the repurchase program. During the six months ended December 31, 2022 and 2021, the Company acquired treasury stock from holders of newly vested stock-based awards to fund the recipients’ payroll tax withholding obligations. The treasury shares were subsequently cancelled. Such shares were valued at fair market value on the date of vesting. The following table shows treasury stock purchases during the six months ended December 31, 2022 and 2021: Six Months Ended December 31, 2022 2021 Number of treasury shares acquired 12,049 353 Average cost per share $ 7.19 $ 4.53 Total cost of treasury shares acquired $ 86,690 $ 1,599 Expected Tax Treatment of Dividends For the fiscal year ended June 30, 2022, all common stock dividends for that fiscal year were treated for tax purposes as qualified dividend income to the recipients. Based on its current projections for the fiscal year ended June 30, 2023, the Company expects all common stock dividends for such period to be treated as qualified dividend income to the recipients. Such projections are based on the Company’s reasonable expectations as of December 31, 2022 and are subject to change based on the Company’s final tax calculations at the end of the fiscal year. Stock-Based Incentive Plan The Evolution Petroleum Corporation 2016 Equity Incentive Plan (“2016 Plan”), approved at the December 2016 annual meeting of stockholders, authorizes the issuance of 1.1 million 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, the Company’s common stock, including its appreciation in value. On December 9, 2020, an amendment to the 2016 Plan was approved by its stockholders which increased the number of shares available for issuance by 2.5 million shares to a maximum of 3.6 million shares. As of December 31, 2022 and June 30, 2022, approximately 1.4 million shares and 1.8 million shares, respectively, remained available for grant under the 2016 Plan. The Company estimates the fair value of stock-based compensation awards on the grant date to provide the basis for future compensation expense. For the three and six months ended December 31, 2022 the Company recognized $0.5 million and $0.7 million, respectively, related to stock-based compensation expense. During the three and six months ended December 31, 2021, the Company recognized $0.3 million and $0.5 million, respectively, related to stock-based compensation expense. Stock-based compensation expenses is recorded as a component of “ General and administrative expenses Time-Vested Restricted Stock Awards Time-vested restricted stock awards contain service-based vesting conditions and expire after a maximum of four years three Performance-Based Restricted Stock Awards and Performance-Based Contingent Stock Units Performance-based restricted stock awards and performance-based contingent stock units contain market-based vesting conditions based on the price of the Company’s common stock, the intrinsic value indexed solely to its common stock and the intrinsic value indexed to its common stock compared to the performance of the common stock of its peers. The common shares underlying the Company’s performance-based restricted stock awards are issued on the date of grant and participate in dividends paid by the Company and expire after a maximum of four years four years are reserved from the 2016 Plan. Performance-based restricted stock awards and contingent restricted stock units 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 the Company compares its performance and/or the Company’s absolute total stock return. For certain awards, this Monte Carlo simulation also provides an expected vesting term. Stock-based compensation is recognized ratably over the expected vesting period, so long as the award holder remains an employee of the Company. Previously recognized compensation expense is only reversed for the awards with market-based vesting conditions if the requisite service period is not rendered by the holder resulting in forfeiture of the award. Vesting of grants with performance-based vesting conditions is dependent on the future price of the Company’s common stock. Such awards vest in part or in full if the trailing total returns on the Company’s common stock for a specified three-year period exceed the corresponding total returns of various quartiles of indices consisting of peer companies or, in some cases, vest when the average of the Company’s closing common stock price over a defined measurement period meets or exceeds a required common stock price. During the six months ended December 31, 2022, the Company granted a total of 0.4 million equity awards primarily to employees under its long-term incentive program together with awards to directors that included 0.3 million time-vested restricted stock awards, 0.1 million performance-based restricted stock awards, and less than 0.05 million performance-based contingent stock units. During the six months ended December 31, 2021, the Company granted a total of 0.3 million equity awards primarily to employees under its long-term incentive program together with awards to directors that included 0.1 million time-vested restricted stock awards, 0.1 million performance-based restricted stock awards, and 0.1 million of performance-based contingent stock units. For performance-based awards granted during the six months ended December 31, 2022 and 2021, the assumptions used in the Monte Carlo simulation valuations were as follows: Six Months Ended December 31, 2022 2021 Weighted average fair value of performance-based awards granted $ 6.69 $ 3.10 Risk-free interest rate 3.91% to 4.44% 0.53% to 0.60% Expected term in years 2.66 to 2.78 2.64 to 2.79 Expected volatility 69.6% to 70.9% 64.7% Dividend yield 6.1% 4.8% to 6.3% Unvested restricted stock awards as of December 31, 2022 consisted of the following: Weighted Number of Average Restricted Grant-Date Award Type Shares Fair Value Time-vested awards 388,520 $ 6.76 Performance-based awards 183,748 5.28 Unvested at December 31, 2022 572,268 $ 6.28 The following table sets forth the restricted stock transactions for the six months ended December 31, 2022: Weighted Weighted Unamortized Average Number of Average Compensation Remaining Restricted Grant-Date Expense Amortization Shares Fair Value (In thousands) Period (Years) Unvested at June 30, 2022 341,211 4.54 $ 1,092 2.1 Time-vested shares granted 283,994 7.51 Performance-based shares granted 91,198 7.56 Vested (118,515) 5.14 Forfeited (25,620) 6.51 Unvested at December 31, 2022 572,268 $ 6.28 $ 3,081 2.5 Unvested contingent restricted stock units table below consists solely of performance-based awards for the six months ended December 31, 2022: Weighted Unamortized Average Number of Weighted Average Compensation Remaining Restricted Grant-Date Expense Amortization Stock Units Fair Value (In thousands) Period (Years) Unvested at June 30, 2022 50,062 2.21 $ 68 1.7 Performance-based awards granted 45,602 4.95 Vested — — Forfeited (3,787) 3.69 Expired — — Unvested at December 31, 2022 91,877 $ 3.51 $ 243 2.3 |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 6 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) per Common Share | |
Earnings (Loss) per Common Share | Note 12. Earnings (Loss) per Common Share The following table sets forth the computation of basic and diluted earnings (loss) per common share, reflecting the application of the two-class method (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Numerator Net income (loss) $ 10,387 $ 6,833 $ 21,094 $ 12,051 Undistributed earnings allocated to unvested restricted stock (162) (143) (274) (245) Net income (loss) for earnings per share calculation $ 10,225 $ 6,690 $ 20,820 $ 11,806 Denominator Weighted average number of common shares outstanding — Basic 33,174 32,929 33,154 32,896 Effect of dilutive securities: Unvested restricted stock awards 206 333 195 297 Unvested contingent restricted stock units 14 — 7 — Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,394 33,262 33,356 33,193 Net income (loss) per common share — Basic $ 0.31 $ 0.20 $ 0.63 $ 0.36 Net income (loss) per common share — Diluted $ 0.31 $ 0.20 $ 0.62 $ 0.36 Unvested restricted stock awards (both time-vested and performance-based), totaling approximately 90,000 and 49,000 for the three and six months ended December 31, 2022, respectively, were not included in the computation of diluted earnings per common share because the effect would have been anti-dilutive. Unvested restricted stock awards (time-vested), totaling approximately 13,000 for the six months ended December 31, 2021 were not included in the computation of diluted earnings per common share because the effect would have been anti-dilutive. In addition, unvested performance-based restricted stock awards and unvested contingent restricted stock units that would not meet the performance criteria as of the period end are excluded from the computation of diluted earnings per common share. |
Additional Financial Statement
Additional Financial Statement Information | 6 Months Ended |
Dec. 31, 2022 | |
Additional Financial Statement Information | |
Additional Financial Statement Information | Note 13. Additional Financial Statement Information Certain amounts on the unaudited condensed consolidated balance sheets are comprised of the following (in thousands): December 31, 2022 June 30, 2022 Prepaid expenses and other current assets: Receivable for settlement proceeds from acquisitions (1) $ — $ 2,263 Other receivables 17 37 Prepaid insurance 488 743 Prepaid federal and state income taxes 838 8 Prepaid subscription and licenses 40 38 Carryback of EOR tax credit 347 347 Prepaid other 178 439 Total prepaid expenses and other current assets $ 1,908 $ 3,875 Other assets, net: Deposit $ 1,150 $ 1,150 Right of use asset under operating lease 208 21 Total other assets, net $ 1,358 $ 1,171 Accrued liabilities and other: Accrued payables $ 6,822 $ 8,070 Accrued incentive and other compensation 418 626 Accrued royalties payable 2,221 1,517 Accrued taxes other than income 58 178 Accrued severance 244 332 Accrued settlements on derivative contracts — 919 Operating lease liability 59 26 Asset retirement obligations due within one year 22 22 Accrued - other 39 203 Total accrued liabilities and other $ 9,883 $ 11,893 (1) Receivables as of June 30, 2022 related to customary purchase adjustments of $1.6 million and $0.7 million related to the Jonah Field Acquisition and Williston Basin Acquisition, respectively. See Note 3, “Acquisitions” for a further discussion. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 14. Leases Operating leases are reflected as an operating lease right of use (“ROU”) asset included in “Other assets, net” “Accrued liabilities and other” “Operating lease liability” consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. In addition to the present value of lease payments, the operating lease ROU asset would also include any lease payments made to the lessor prior to lease commencement less any lease incentives and initial direct costs incurred, if any. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term and are presented as “ General and administrative expenses As a non-operator and having adequate liquidity, the Company has generally not entered into lease transactions. The Company’s only operating lease is for corporate office space in Houston, Texas, effective May 1, 2019 and amended November 30, 2022 and set to expire September 30, 2026. The Company has no leases that meet the criteria for classification as a finance lease or a short-term lease. The Company makes certain assumptions and judgments when evaluating a contract that meets the definition of a lease under ASC 842, Leases The table below summarized the Company’s leases for the six months ended December 31, 2022 and 2021 (in thousands, except years and discount rate): Six Months Ended December 31, 2022 2021 Statements of Operations: Operating lease costs $ 27 $ 26 Statements of Cash Flow: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 37 $ 31 Other: ROU assets obtained in exchange for new operating lease liabilities $ 212 $ — Weighted average remaining lease term in years 3.67 0.92 Weighted average discount rate 6.44 % 5.15 % (1) A portion of the cash paid for operating leases during the six months ended December 31, 2022 includes a prepayment for the subsequent quarter. The following table presents the Company’s ROU assets and lease liabilities (in thousands): December 31, 2022 June 30, 2022 Balance Sheets: Operating lease ROU asset (included in other assets) $ 208 $ 21 Accrued liabilities and other - current 59 26 Operating lease liability - long-term 149 — As of December 31, 2022, the future minimum lease payments associated with the Company’s non-cancellable operating lease for office space are as follows (in thousands): Fiscal Year December 31, 2022 Remaining in 2023 $ 30 2024 61 2025 62 2026 64 2027 16 Thereafter — Total operating lease payments 233 Less: discount to present value (25) Total operating lease liabilities 208 Less: current operating lease liabilities 59 Non current operating lease liabilities $ 149 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | Note 15. Subsequent Events Dividend Declaration On February 6, 2023, the Company declared a quarterly cash dividend of $0.120 per share of common stock to shareholders of record on March 15, 2023 and payable on March 31, 2023. |
Financial Statement Presentat_2
Financial Statement Presentation (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Financial Statement Presentation | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. “Other receivables” “Additional Financial Statement Information” “Prepaids expenses and other current assets” “Receivables from crude oil, natural gas, and natural gas liquids revenues” |
Risk and Uncertainties | Risk and Uncertainties. |
Use of Estimates | Use of Estimates. and the valuation of deferred income tax assets, (f) commitments and contingencies, and (g) accruals of crude oil, natural gas, and natural gas liquids (“NGL”) revenues and expenses. The Company analyzes estimates and judgements based on historical experience and various other assumptions and information that are believed to be reasonable. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as additional information is obtained, as new events occur, and as the Company’s environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company’s unaudited condensed consolidated financial statements. |
Correction of Immaterial Error | Correction of Immaterial Error During the year ended June 30, 2022, the Company identified an issue related to its historical process of calculating the Company’s earnings (loss) per common share (“EPS”). The Company grants restricted stock awards which entitle the recipient to all of the rights of a shareholder of the Company including non-forfeitable rights to receive all dividends or other distributions paid with respect to such shares. Unvested restricted stock is forfeitable until earned and therefore not considered outstanding for basic EPS. Because restricted stock awards have the non-forfeitable right to share in dividends and earnings with common shareholders prior to vesting, the Company must apply the two-class method of allocating distributed and undistributed earnings to unvested restricted stock and outstanding common shares. Historically, it was identified by management that the Company had not been applying the two-class method of calculating basic and diluted EPS in accordance with Accounting Standards Codification (“ASC”) 260, Earnings Per Share At March 31, 2022, the Company determined that its unvested restricted stock awards were participating securities which contain non-forfeitable rights to dividends. As a result, the Company was required to adjust “Net income (loss)” The Company concluded the adjustments were immaterial to its 2022 interim financial statements in accordance with the guidance in SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements. Net income (Loss) per common share The Company noted the following adjustments to its EPS presentation for the three and six months ended December 31, 2021 (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 As reported: Net income (loss) for earnings per share calculation $ 6,833 $ 12,051 Weighted average number of common shares outstanding — Basic 33,646 33,590 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,646 33,590 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 Revised: Net income (loss) for earnings per share calculation $ 6,690 $ 11,806 Weighted average number of common shares outstanding — Basic 32,929 32,896 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,262 33,193 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 |
Recently Adopted and Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Other accounting pronouncements that have recently been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations, cash flows or disclosures. |
Financial Statement Presentat_3
Financial Statement Presentation (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Financial Statement Presentation | |
Schedule of earnings (loss) per common share | The Company noted the following adjustments to its EPS presentation for the three and six months ended December 31, 2021 (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, 2021 December 31, 2021 As reported: Net income (loss) for earnings per share calculation $ 6,833 $ 12,051 Weighted average number of common shares outstanding — Basic 33,646 33,590 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,646 33,590 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 Revised: Net income (loss) for earnings per share calculation $ 6,690 $ 11,806 Weighted average number of common shares outstanding — Basic 32,929 32,896 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,262 33,193 Net income (loss) per common share — Basic $ 0.20 $ 0.36 Net income (loss) per common share — Diluted $ 0.20 $ 0.36 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition | |
Schedule of disaggregates the Company's revenues by major product | the Company’s revenues by major product for the three and six months ended December 31, 2022 and 2021 (in thousands): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Revenues Crude oil $ 13,100 $ 10,582 $ 28,263 $ 19,441 Natural gas 17,370 9,170 37,218 14,628 Natural gas liquids 3,206 2,587 7,992 7,149 Total revenues $ 33,676 $ 22,339 $ 73,473 $ 41,218 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment as of December 31, 2022 and June 30, 2022 consisted of the following (in thousands): December 31, 2022 June 30, 2022 Oil and natural gas properties Property costs subject to amortization $ 190,853 $ 188,634 Less: Accumulated depletion, depreciation, and impairment (84,626) (78,126) Oil and natural gas properties, net $ 106,227 $ 110,508 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Schedule of Derivative Instruments | The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of December 31, 2022 and June 30, 2022 (in thousands): Derivatives not designated as hedging contracts Balance sheet Derivative Contract Assets Balance sheet Derivative Contract Liabilities under ASC 815 location December 31, 2022 June 30, 2022 location December 31, 2022 June 30, 2022 Commodity contracts Current assets - derivative contract assets $ 244 $ 170 Current liabilities - derivative contract liabilities $ 49 $ 2,164 Commodity contracts Other assets - derivative contract assets — — Long term liabilities - derivative contract liabilities — — Total derivatives not designated as hedging contracts under ASC 815 $ 244 $ 170 $ 49 $ 2,164 Derivatives not designated Location of gain (loss) Three Months Ended Six Months Ended as hedging contracts recognized in income on December 31, December 31, under ASC 815 derivative contracts 2022 2021 2022 2021 Commodity contracts: Realized gain (loss) on derivative contracts Other income and expenses - net gain (loss) on derivative contracts $ (224) $ — $ (1,946) $ — Unrealized gain (loss) on derivative contracts Other income and expenses - net gain (loss) on derivative contracts 1,070 — 2,189 — Total net gain (loss) on derivative contracts $ 846 $ — $ 243 $ — |
Derivative Instruments, Gain (Loss) | As of December 31, 2022, the Company had the following open crude oil and natural gas derivative contracts: Weighted Average Weighted Average Volumes in Floor Price per Ceiling Price per Period Instrument Commodity MMBTU/BBL MMBTU/BBL MMBTU/BBL January 2023 - February 2023 Collar Natural Gas 214,931 $ 3.75 $ 7.30 January 2023 - March 2023 Collar Natural Gas 220,875 5.25 7.50 January 2023 - February 2023 Collar Crude Oil 29,995 70.00 87.50 |
Offsetting Assets | The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts as of December 31, 2022 and June 30, 2022 (in thousands): Derivative Contracts Assets Derivative Contracts Liabilities Offsetting of Derivative Assets and Liabilities December 31, 2022 June 30, 2022 December 31, 2022 June 30, 2022 Gross amounts presented in the Consolidated Balance Sheet $ 244 $ 170 $ 49 $ 2,164 Amounts not offset in the Consolidated Balance Sheet (32) (170) (32) (170) Net amount $ 212 $ — $ 17 $ 1,994 |
Offsetting Liabilities | Derivative Contracts Assets Derivative Contracts Liabilities Offsetting of Derivative Assets and Liabilities December 31, 2022 June 30, 2022 December 31, 2022 June 30, 2022 Gross amounts presented in the Consolidated Balance Sheet $ 244 $ 170 $ 49 $ 2,164 Amounts not offset in the Consolidated Balance Sheet (32) (170) (32) (170) Net amount $ 212 $ — $ 17 $ 1,994 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement | |
Schedule of Derivative Assets at Fair Value | December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 244 $ — $ 244 Liabilities Derivative contract liabilities $ — $ 49 $ — $ 49 June 30, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 170 $ — $ 170 Liabilities Derivative contract liabilities $ — $ 2,164 $ — $ 2,164 |
Schedule of Derivative Liabilities at Fair Value | December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 244 $ — $ 244 Liabilities Derivative contract liabilities $ — $ 49 $ — $ 49 June 30, 2022 Level 1 Level 2 Level 3 Total Assets Derivative contract assets $ — $ 170 $ — $ 170 Liabilities Derivative contract liabilities $ — $ 2,164 $ — $ 2,164 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligations | |
Schedule of Reconciliations of the Beginning and Ending Asset Retirement Obligation Balances | The following is a reconciliation of the activity related to the Company’s ARO liability (inclusive of the current portion) (in thousands): December 31, 2022 Asset retirement obligations — beginning of period $ 13,921 Accretion of discount 556 Asset retirement obligations — end of period 14,477 Less: current asset retirement obligations (22) Long-term portion of asset retirement obligations $ 14,455 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividends declared and paid | Fiscal Year 2023 2022 Second quarter ended December 31, $ 0.120 $ 0.075 First quarter ended September 30, 0.120 0.075 |
Schedule of share repurchases | Six Months Ended December 31, 2022 2021 Number of treasury shares acquired 12,049 353 Average cost per share $ 7.19 $ 4.53 Total cost of treasury shares acquired $ 86,690 $ 1,599 |
Schedule of Market-based Award Valuation Assumptions | Six Months Ended December 31, 2022 2021 Weighted average fair value of performance-based awards granted $ 6.69 $ 3.10 Risk-free interest rate 3.91% to 4.44% 0.53% to 0.60% Expected term in years 2.66 to 2.78 2.64 to 2.79 Expected volatility 69.6% to 70.9% 64.7% Dividend yield 6.1% 4.8% to 6.3% |
Schedule of contingent restricted stock unit transactions | Weighted Number of Average Restricted Grant-Date Award Type Shares Fair Value Time-vested awards 388,520 $ 6.76 Performance-based awards 183,748 5.28 Unvested at December 31, 2022 572,268 $ 6.28 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of contingent restricted stock unit transactions | Weighted Weighted Unamortized Average Number of Average Compensation Remaining Restricted Grant-Date Expense Amortization Shares Fair Value (In thousands) Period (Years) Unvested at June 30, 2022 341,211 4.54 $ 1,092 2.1 Time-vested shares granted 283,994 7.51 Performance-based shares granted 91,198 7.56 Vested (118,515) 5.14 Forfeited (25,620) 6.51 Unvested at December 31, 2022 572,268 $ 6.28 $ 3,081 2.5 |
Contingent restricted stock grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of contingent restricted stock unit transactions | Weighted Unamortized Average Number of Weighted Average Compensation Remaining Restricted Grant-Date Expense Amortization Stock Units Fair Value (In thousands) Period (Years) Unvested at June 30, 2022 50,062 2.21 $ 68 1.7 Performance-based awards granted 45,602 4.95 Vested — — Forfeited (3,787) 3.69 Expired — — Unvested at December 31, 2022 91,877 $ 3.51 $ 243 2.3 |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Earnings (Loss) per Common Share | |
Schedule of computation of basic and diluted income (loss) per share | The following table sets forth the computation of basic and diluted earnings (loss) per common share, reflecting the application of the two-class method (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, December 31, 2022 2021 2022 2021 Numerator Net income (loss) $ 10,387 $ 6,833 $ 21,094 $ 12,051 Undistributed earnings allocated to unvested restricted stock (162) (143) (274) (245) Net income (loss) for earnings per share calculation $ 10,225 $ 6,690 $ 20,820 $ 11,806 Denominator Weighted average number of common shares outstanding — Basic 33,174 32,929 33,154 32,896 Effect of dilutive securities: Unvested restricted stock awards 206 333 195 297 Unvested contingent restricted stock units 14 — 7 — Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 33,394 33,262 33,356 33,193 Net income (loss) per common share — Basic $ 0.31 $ 0.20 $ 0.63 $ 0.36 Net income (loss) per common share — Diluted $ 0.31 $ 0.20 $ 0.62 $ 0.36 |
Additional Financial Statemen_2
Additional Financial Statement Information (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Additional Financial Statement Information | |
Additional Financial Statement Information | Certain amounts on the unaudited condensed consolidated balance sheets are comprised of the following (in thousands): December 31, 2022 June 30, 2022 Prepaid expenses and other current assets: Receivable for settlement proceeds from acquisitions (1) $ — $ 2,263 Other receivables 17 37 Prepaid insurance 488 743 Prepaid federal and state income taxes 838 8 Prepaid subscription and licenses 40 38 Carryback of EOR tax credit 347 347 Prepaid other 178 439 Total prepaid expenses and other current assets $ 1,908 $ 3,875 Other assets, net: Deposit $ 1,150 $ 1,150 Right of use asset under operating lease 208 21 Total other assets, net $ 1,358 $ 1,171 Accrued liabilities and other: Accrued payables $ 6,822 $ 8,070 Accrued incentive and other compensation 418 626 Accrued royalties payable 2,221 1,517 Accrued taxes other than income 58 178 Accrued severance 244 332 Accrued settlements on derivative contracts — 919 Operating lease liability 59 26 Asset retirement obligations due within one year 22 22 Accrued - other 39 203 Total accrued liabilities and other $ 9,883 $ 11,893 (1) Receivables as of June 30, 2022 related to customary purchase adjustments of $1.6 million and $0.7 million related to the Jonah Field Acquisition and Williston Basin Acquisition, respectively. See Note 3, “Acquisitions” for a further discussion. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of leases | The table below summarized the Company’s leases for the six months ended December 31, 2022 and 2021 (in thousands, except years and discount rate): Six Months Ended December 31, 2022 2021 Statements of Operations: Operating lease costs $ 27 $ 26 Statements of Cash Flow: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 37 $ 31 Other: ROU assets obtained in exchange for new operating lease liabilities $ 212 $ — Weighted average remaining lease term in years 3.67 0.92 Weighted average discount rate 6.44 % 5.15 % (1) A portion of the cash paid for operating leases during the six months ended December 31, 2022 includes a prepayment for the subsequent quarter. The following table presents the Company’s ROU assets and lease liabilities (in thousands): December 31, 2022 June 30, 2022 Balance Sheets: Operating lease ROU asset (included in other assets) $ 208 $ 21 Accrued liabilities and other - current 59 26 Operating lease liability - long-term 149 — As of December 31, 2022, the future minimum lease payments associated with the Company’s non-cancellable operating lease for office space are as follows (in thousands): Fiscal Year December 31, 2022 Remaining in 2023 $ 30 2024 61 2025 62 2026 64 2027 16 Thereafter — Total operating lease payments 233 Less: discount to present value (25) Total operating lease liabilities 208 Less: current operating lease liabilities 59 Non current operating lease liabilities $ 149 |
Schedule of future minimum lease payments associated with the Company's non-cancellable operating lease for office space | December 31, 2022 June 30, 2022 Balance Sheets: Operating lease ROU asset (included in other assets) $ 208 $ 21 Accrued liabilities and other - current 59 26 Operating lease liability - long-term 149 — |
Financial Statement Presentat_4
Financial Statement Presentation - Nature of Operations (Details) | Dec. 31, 2022 item |
Financial Statement Presentation | |
Number of wells with overriding royalty interest | 4 |
Financial Statement Presentat_5
Financial Statement Presentation - Correction of Immaterial Error (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in earning per share basic | $ 0 | $ 0 | ||
Changes in earning per share diluted | $ 0 | $ 0 | ||
Net income (loss) for earnings per share calculation | $ 10,225 | $ 6,690 | $ 20,820 | $ 11,806 |
Weighted average number of common shares outstanding - Basic (in shares) | 33,174 | 32,929 | 33,154 | 32,896 |
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share (in shares) | 33,394 | 33,262 | 33,356 | 33,193 |
Net earnings (loss) per common share - Basic (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.63 | $ 0.36 |
Net earnings (loss) per common share - Diluted (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.62 | $ 0.36 |
Previously Reported [Member] | ||||
Net income (loss) for earnings per share calculation | $ 6,833 | $ 12,051 | ||
Weighted average number of common shares outstanding - Basic (in shares) | 33,646 | 33,590 | ||
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share (in shares) | 33,646 | 33,590 | ||
Net earnings (loss) per common share - Basic (in dollars per share) | $ 0.20 | $ 0.36 | ||
Net earnings (loss) per common share - Diluted (in dollars per share) | $ 0.20 | $ 0.36 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues By Major Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | ||||
Total revenues | $ 33,676 | $ 22,339 | $ 73,473 | $ 41,218 |
Crude oil | ||||
Revenue Recognition | ||||
Total revenues | 13,100 | 10,582 | 28,263 | 19,441 |
Natural gas | ||||
Revenue Recognition | ||||
Total revenues | 17,370 | 9,170 | 37,218 | 14,628 |
Natural gas liquids | ||||
Revenue Recognition | ||||
Total revenues | $ 3,206 | $ 2,587 | $ 7,992 | $ 7,149 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 6 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Revenue Recognition | |
Period of receives payment from the sale of oil and natural gas production | 1 month |
Number of production received by field operators | 1 month |
Maximum | |
Revenue Recognition | |
Period of receives payment from the sale of oil and natural gas production | 2 months |
Number of production received by field operators | 2 months |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Apr. 01, 2022 | Jan. 14, 2022 | May 07, 2021 | Dec. 31, 2021 | |
Barnett Shale | ||||
Acquisitions | ||||
Asset acquisition, consideration transferred | $ 17.4 | |||
Liabilities acquired | $ 2.8 | |||
Downward purchase adjustment | $ 0.9 | |||
Jonah Field In Wyoming From Exaro Energy III, LLC | ||||
Acquisitions | ||||
Asset acquisition of transaction cost | $ 0.2 | |||
Asset acquisition, consideration transferred related to deposits transferred | 1.6 | |||
Liabilities acquired | 3 | |||
Jonah Field In Wyoming From Exaro Energy III, LLC | Oil and natural gas properties | ||||
Acquisitions | ||||
Asset acquisition, consideration transferred | 26.4 | |||
Jonah Field In Wyoming From Exaro Energy III, LLC | Other assets, net | ||||
Acquisitions | ||||
Asset acquisition for deposits | 1.2 | |||
Williston Basin Acquisition | ||||
Acquisitions | ||||
Asset acquisition, consideration transferred | $ 25.2 | |||
Asset acquisition of transaction cost | 0.3 | |||
Liabilities acquired | 2.4 | |||
Senior Secured Reserve-Based Credit Facility | Jonah Field In Wyoming From Exaro Energy III, LLC | ||||
Acquisitions | ||||
Borrowings under credit facility | $ 17 | |||
Senior Secured Reserve-Based Credit Facility | Williston Basin Acquisition | ||||
Acquisitions | ||||
Borrowings under credit facility | $ 16 |
Property and Equipment - Other
Property and Equipment - Other (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Oil and natural gas properties | ||
Property costs subject to amortization | $ 190,853 | $ 188,634 |
Less: Accumulated depletion, depreciation, and accretion | (84,626) | (78,126) |
Oil and natural gas properties, net | $ 106,227 | $ 110,508 |
Property and Equipment (Details
Property and Equipment (Details) $ in Millions | 6 Months Ended | |
Dec. 31, 2022 USD ($) $ / MMBTU $ / bbl | Dec. 31, 2021 USD ($) $ / MMBTU $ / bbl | |
Property and Equipment | ||
Depletion | $ | $ 6.5 | $ 2.5 |
Capital expenditures | $ | $ 2.1 | $ 0.6 |
Natural Gas and Natural Gas Liquids | ||
Property and Equipment | ||
Oil and gas prices first day average of twelve months of Henry Hub price for ceiling test | $ / MMBTU | 6.40 | 3.64 |
Net price per barrel (in dollars per barrel) | $ / bbl | 48.50 | 26.54 |
Crude oil | ||
Property and Equipment | ||
Oil and gas prices first day average of twelve months of West Texas Intermediate spot market price for ceiling test | $ / bbl | 94.14 | 66.55 |
Senior Secured Credit Facility
Senior Secured Credit Facility (Details) $ in Millions | 6 Months Ended | |||||||
Apr. 11, 2016 USD ($) | Dec. 31, 2022 USD ($) agreement | Oct. 01, 2022 USD ($) | Feb. 07, 2022 | Dec. 31, 2021 | Nov. 09, 2021 USD ($) | Aug. 05, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Minimum current ratio | 1 | |||||||
Percentage of production hedged | 25% | |||||||
LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, variable interest rate | 0.25% | |||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, variable interest rate | 5.25% | 3% | ||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of debt instrument | 3 years | |||||||
Maximum borrowing capacity | $ 50 | $ 50 | ||||||
Available borrowing capacity | $ 50 | |||||||
Initial borrowing base | $ 50 | |||||||
Credit facility maturity date | Apr. 09, 2024 | |||||||
Credit facility, number of rights to interim unscheduled redeterminations | agreement | 1 | |||||||
Minimum consolidated tangible net worth | $ 40 | $ 40 | $ 50 | |||||
Commitment fee percentage | 0.25% | |||||||
Maximum total leverage ratio (not more than) | 3 | |||||||
Current borrowing base | $ 50 | |||||||
Margined collateral value | $ 130 | |||||||
Percentage of borrowing base to Margined Collateral Value | 25% | |||||||
Debt instrument, covenant, percent of borrowings base utilized | 25% | |||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Revolving credit facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percent of instrument hedged | 25% | |||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Revolving credit facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Percent of instrument hedged | 75% | |||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | LIBOR | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Prime Rate | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued interest and penalties | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | $ 2,933,000 | $ 1,744,000 | $ 5,997,000 | $ 3,264,000 |
Income tax rate percentage | 22.10% | 21.30% | ||
Statutory federal tax rate | 21% | 21% | ||
Restricted Stock | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax benefit from vesting of restricted stock awards | $ 100,000 | $ 100,000 |
Derivatives - Consolidated Bala
Derivatives - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Derivative [Line Items] | ||
Derivative Contract Asset | $ 244 | $ 170 |
Derivative Contract Liability | 49 | 2,164 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Contract Asset | 244 | 170 |
Derivative Contract Liability | 49 | 2,164 |
Current Assets | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Contract Asset | 244 | 170 |
Other Assets | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Contract Asset | 0 | 0 |
Current Liabilities | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Contract Liability | 49 | 2,164 |
Long term liabilities | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Contract Liability | $ 0 | $ 0 |
Derivatives - Gain and Loss on
Derivatives - Gain and Loss on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Derivatives | ||
Realized gain (loss) on derivative contracts | $ (224) | $ (1,946) |
Unrealized gain (loss) on derivative contracts | 1,070 | 2,189 |
Total net gain (loss) on derivative contracts | $ 846 | $ 243 |
Derivatives - Crude Oil Derivat
Derivatives - Crude Oil Derivative Positions (Details) | 6 Months Ended |
Dec. 31, 2022 MMBTU $ / bbl $ / MMBTU bbl | |
January 2023 - February 2023 | |
Derivative [Line Items] | |
Volume in MMBTU | MMBTU | 214,931 |
Weighted Average Floor Price | 3.75 |
Weighted Average Ceiling Price | 7.30 |
January 2023 - March 2023 | |
Derivative [Line Items] | |
Volume in MMBTU | MMBTU | 220,875 |
Weighted Average Floor Price | 5.25 |
Weighted Average Ceiling Price | 7.50 |
January 2023 - February 2023 | |
Derivative [Line Items] | |
Volumes in Barrels | bbl | 29,995 |
Weighted Average Floor Price | $ / bbl | 70 |
Weighted Average Ceiling Price | $ / bbl | 87.50 |
Derivatives - Derivative Contra
Derivatives - Derivative Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Derivatives | ||
Derivative assets, Gross amounts presented in the Consolidated Balance Sheet | $ 244 | $ 170 |
Derivative asset, Amounts not offset in the Consolidated Balance Sheet | (32) | (170) |
Derivative asset, net amount | 212 | |
Derivative liability, Gross amounts presented in the Consolidated Balance Sheet | 49 | 2,164 |
Derivative liability, Amounts not offset in the Consolidated Balance Sheet | (32) | (170) |
Derivative liability, Net amount | $ 17 | $ 1,994 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Contract Asset | $ 244 | $ 170 |
Derivative Contract Liability | 49 | 2,164 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Contract Asset | 244 | 170 |
Derivative Contract Liability | $ 49 | $ 2,164 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Reconciliation of the beginning and ending asset retirement obligation | ||
Asset retirement obligations - beginning of period | $ 13,921 | |
Accretion of discount | 556 | |
Asset retirement obligations - end of period | 14,477 | $ 13,921 |
Less: current asset retirement obligations | (22) | (22) |
Long-term portion of asset retirement obligations | $ 14,455 | $ 13,899 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 108 Months Ended | |||
Sep. 08, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Jun. 30, 2022 | |
Class of Stock [Line Items] | ||||||
Common stock, outstanding shares (in shares) | 33,808,233 | 33,808,233 | 33,808,233 | 33,470,710 | ||
Common stock dividends paid | $ 8,085 | $ 5,045 | $ 94,400 | |||
Cash dividends to common stockholders | $ 8,100 | $ 5,000 | ||||
Number of treasury shares acquired (in shares) | 12,049 | 353 | ||||
2022 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 25,000 | |||||
Stock repurchase program expiration date | Dec. 31, 2024 | |||||
Number of treasury shares acquired (in shares) | 0 | |||||
Rule 10b5 1 plan | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 5,000 | $ 5,000 | $ 5,000 | |||
Stock repurchase program expiration date | Jun. 30, 2023 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Stockholders' Equity | ||||
Cash dividends paid (in USD per share) | $ 0.120 | $ 0.120 | $ 0.075 | $ 0.075 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Shares (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity | |||
Number of treasury shares acquired (in shares) | 12,049 | 353 | |
Average cost per share (in USD per share) | $ 7.19 | $ 4.53 | |
Total cost of treasury shares acquired | $ 61,000 | $ 86,690 | $ 1,599 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Incentive Plan Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Dec. 09, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Dec. 08, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 400,000 | 300,000 | |||||
Stock-based compensation expense | $ 0.5 | $ 0.3 | $ 0.7 | $ 0.5 | |||
Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 1 year | ||||||
Restricted Stock and Contingent Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 50,000 | 100,000 | |||||
Restricted Stock, Market Based | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Restricted Stock, Performance Based | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 91,198 | 100,000 | |||||
Contingent restricted stock grants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited (in shares) | 3,787 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited (in shares) | 25,620 | ||||||
Restricted Stock Time Vested | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 283,994 | 100,000 | |||||
Performance Based Contingent Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 45,602 | ||||||
2016 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for granting (in shares) | 1,100,000 | ||||||
Number of additional shares authorized (in shares) | 2,500,000 | ||||||
Shares available for grant (shares) | 1,400,000 | 1,400,000 | 1,800,000 | ||||
Minimum | Restricted Stock Time Vested | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Maximum | Restricted Stock, Performance Based | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period (in years) | 4 years | ||||||
Maximum | Restricted Stock Time Vested | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 4 years | ||||||
Maximum | 2016 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional shares authorized (in shares) | 3,600,000 | ||||||
Employee | Restricted Stock, Performance Based | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 100,000 | ||||||
Employee | Restricted Stock Time Vested | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 300,000 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Assumptions (Details) - Restricted Stock And Contingent Restricted Stock, Market-Based - $ / shares | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of market-based awards granted (in USD per share) | $ 6.69 | $ 3.10 |
Risk-free interest rate, minimum | 3.91% | 0.53% |
Risk-free interest rate, maximum | 4.44% | 0.60% |
Expected volatility | 64.70% | |
Expected volatility, minimum | 69.60% | |
Expected volatility, maximum | 70.90% | |
Dividend yield | 6.10% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 2 years 7 months 28 days | 2 years 7 months 20 days |
Dividend yield | 4.80% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 2 years 9 months 10 days | 2 years 9 months 14 days |
Dividend yield | 6.30% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock and Contingent Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Number of Restricted Shares | |||
Granted (in shares) | 400,000 | 300,000 | |
Unvested, end of period (in shares) | 572,268 | ||
Weighted Average Grant-Date Fair Value | |||
Unvested, end of period (in USD per share) | $ 6.28 | ||
Restricted Stock | |||
Number of Restricted Shares | |||
Unvested, beginning of period (in shares) | 341,211 | ||
Vested (in shares) | (118,515) | ||
Forfeited (in shares) | (25,620) | ||
Unvested, end of period (in shares) | 572,268 | 341,211 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in USD per share) | $ 4.54 | ||
Vested (in USD per share) | 5.14 | ||
Forfeited (in USD per share) | 6.51 | ||
Unvested, end of period (in USD per share) | $ 6.28 | $ 4.54 | |
Unamortized compensation expense | $ 3,081 | $ 1,092 | |
Weighted Average Remaining Amortization Period (Years) | 2 years 6 months | 2 years 1 month 6 days | |
Restricted Stock, Performance Based | |||
Number of Restricted Shares | |||
Granted (in shares) | 91,198 | 100,000 | |
Unvested, end of period (in shares) | 183,748 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 7.56 | ||
Unvested, end of period (in USD per share) | $ 5.28 | ||
Restricted Stock Time Vested | |||
Number of Restricted Shares | |||
Granted (in shares) | 283,994 | 100,000 | |
Unvested, end of period (in shares) | 388,520 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 7.51 | ||
Unvested, end of period (in USD per share) | $ 6.76 | ||
Contingent Restricted Stock Grants | |||
Number of Restricted Shares | |||
Unvested, beginning of period (in shares) | 50,062 | ||
Forfeited (in shares) | (3,787) | ||
Unvested, end of period (in shares) | 91,877 | 50,062 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in USD per share) | $ 2.21 | ||
Forfeited (in USD per share) | 3.69 | ||
Unvested, end of period (in USD per share) | $ 3.51 | $ 2.21 | |
Unamortized compensation expense | $ 243 | $ 68 | |
Weighted Average Remaining Amortization Period (Years) | 2 years 3 months 18 days | 1 year 8 months 12 days | |
Performance Based Contingent Shares | |||
Number of Restricted Shares | |||
Granted (in shares) | 45,602 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 4.95 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | ||||
Net income (loss) | $ 10,387 | $ 6,833 | $ 21,094 | $ 12,051 |
Undistributed earnings allocated to unvested restricted stock | (162) | (143) | (274) | (245) |
Net income (loss) for earnings per share calculation | $ 10,225 | $ 6,690 | $ 20,820 | $ 11,806 |
Denominator | ||||
Weighted average number of common shares outstanding - Basic (in shares) | 33,174 | 32,929 | 33,154 | 32,896 |
Effect of dilutive securities: | ||||
Unvested restricted stock (in shares) | 206 | 333 | 195 | 297 |
Contingent restricted stock grants (in shares) | 14 | 7 | ||
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share (in shares) | 33,394 | 33,262 | 33,356 | 33,193 |
Net earnings (loss) per common share - Basic (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.63 | $ 0.36 |
Net earnings (loss) per common share - Diluted (in dollars per share) | $ 0.31 | $ 0.20 | $ 0.62 | $ 0.36 |
Earnings (Loss) per Common Sh_4
Earnings (Loss) per Common Share - Schedule of Outstanding Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 90,000 | 49,000 | 13,000 |
Additional Financial Statemen_3
Additional Financial Statement Information - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Prepaid expenses and other current assets: | ||
Receivable for settlement proceeds from acquisitions | $ 2,263 | |
Other receivables | $ 17 | 37 |
Prepaid insurance | 488 | 743 |
Prepaid federal and state income taxes | 838 | 8 |
Prepaid subscription and licenses | 40 | 38 |
Carryback of EOR tax credit | 347 | 347 |
Prepaid other | 178 | 439 |
Total prepaid expenses and other current assets | 1,908 | 3,875 |
Other assets, net: | ||
Deposit | 1,150 | 1,150 |
Right of use asset under operating lease | 208 | 21 |
Other assets, net | 1,358 | 1,171 |
Accrued liabilities and other: | ||
Accrued payables | 6,822 | 8,070 |
Accrued incentive and other compensation | 418 | 626 |
Accrued royalties payable | 2,221 | 1,517 |
Accrued taxes other than income | 58 | 178 |
Accrued severance | 244 | 332 |
Accrued settlements on derivative contracts | 919 | |
Operating lease liability | 59 | 26 |
Asset retirement obligations due within one year | 22 | 22 |
Accrued - other | 39 | 203 |
Total Accrued liabilities and other | $ 9,883 | $ 11,893 |
Additional Financial Statemen_4
Additional Financial Statement Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Receivables related to customary purchase adjustments | $ 2,263 |
Jonah Field Acquisition | |
Schedule of Equity Method Investments [Line Items] | |
Receivables related to customary purchase adjustments | 1,600 |
Williston Basin Acquisition | |
Schedule of Equity Method Investments [Line Items] | |
Receivables related to customary purchase adjustments | $ 700 |
Leases (Details)
Leases (Details) | 6 Months Ended |
Dec. 31, 2022 item | |
Leases | |
Lessee, finance lease or short term lease, number of contracts | 0 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Leases | |||
Operating lease costs | $ 27 | $ 26 | |
Operating cash flows from operating leases | 37 | $ 31 | |
ROU assets obtained in exchange for new operating lease liabilities | 212 | ||
Operating lease ROU asset (included in other assets) | 208 | $ 21 | |
Accrued liabilities and other - current | 59 | $ 26 | |
Operating lease liability - long-term | $ 149 | ||
Weighted average remaining lease term in years | 3 years 8 months 1 day | 11 months 1 day | |
Weighted average discount rate | 6.44% | 5.15% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets, net | Other assets, net | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities and other | Accrued liabilities and other |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Fiscal Year | ||
Remaining in 2023 | $ 30 | |
2024 | 61 | |
2025 | 62 | |
2026 | 64 | |
2027 | 16 | |
Total operating lease payments | 233 | |
Less: discount to present value | (25) | |
Total operating lease liabilities | 208 | |
Less: current operating lease liabilities | 59 | $ 26 |
Operating lease liability - long-term | $ 149 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Feb. 06, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividend declared (in dollars per share) | $ 0.120 |
Dividend declared, date declared | Feb. 06, 2023 |
Dividend declared, date of record | Mar. 15, 2023 |
Dividend declared, date to be paid | Mar. 31, 2023 |