Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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, $0.001 par value | |
Trading Symbol | EPM | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,456,330 | |
Entity Central Index Key | 0001006655 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 8,460 | $ 11,034 |
Receivables from crude oil, natural gas, and natural gas liquids revenues | 10,119 | 7,884 |
Prepaid expenses and other current assets | 2,569 | 2,277 |
Total current assets | 21,148 | 21,195 |
Property and equipment, net of depletion, depreciation, and impairment | ||
Oil and natural gas properties, subject to amortization, net | 100,111 | 105,781 |
Property costs not subject to amortization | 3,370 | |
Total property and equipment, net | 103,481 | 105,781 |
Other assets | 1,337 | 1,341 |
Total assets | 125,966 | 128,317 |
Current liabilities | ||
Accounts payable | 8,233 | 5,891 |
Accrued liabilities and other | 6,294 | 6,027 |
State and federal taxes payable | 365 | |
Total current liabilities | 14,527 | 12,283 |
Long term liabilities | ||
Deferred income taxes | 6,161 | 6,803 |
Asset retirement obligations | 17,738 | 17,012 |
Operating lease liability | 101 | 125 |
Total liabilities | 38,527 | 36,223 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 33,506,794 and 33,247,523 shares as of December 31, 2023 and June 30, 2023, respectively | 34 | 33 |
Additional paid-in capital | 40,920 | 40,098 |
Retained earnings | 46,485 | 51,963 |
Total stockholders' equity | 87,439 | 92,094 |
Total liabilities and stockholders' equity | $ 125,966 | $ 128,317 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2023 | Jun. 30, 2023 |
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) | 33,506,794 | 33,247,523 |
Common stock, outstanding shares (in shares) | 33,506,794 | 33,247,523 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | ||||
Total revenues | $ 21,024 | $ 33,676 | $ 41,625 | $ 73,473 |
Operating costs | ||||
Lease operating costs | 12,358 | 15,041 | 24,241 | 34,157 |
Depletion, depreciation, and accretion | 4,598 | 3,458 | 8,860 | 7,056 |
General and administrative expenses | 2,502 | 2,581 | 5,105 | 5,053 |
Total operating costs | 19,458 | 21,080 | 38,206 | 46,266 |
Income (loss) from operations | 1,566 | 12,596 | 3,419 | 27,207 |
Other income (expense) | ||||
Net gain (loss) on derivative contracts | 846 | 243 | ||
Interest and other income | 104 | 7 | 220 | 13 |
Interest expense | (34) | (129) | (66) | (372) |
Income (loss) before income taxes | 1,636 | 13,320 | 3,573 | 27,091 |
Income tax (expense) benefit | (554) | (2,933) | (1,017) | (5,997) |
Net income (loss) | $ 1,082 | $ 10,387 | $ 2,556 | $ 21,094 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.03 | $ 0.31 | $ 0.08 | $ 0.63 |
Diluted (in dollars per share) | $ 0.03 | $ 0.31 | $ 0.08 | $ 0.62 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 32,693 | 33,174 | 32,676 | 33,154 |
Diluted (in shares) | 32,900 | 33,394 | 32,940 | 33,356 |
Crude oil | ||||
Revenues | ||||
Total revenues | $ 11,759 | $ 13,100 | $ 24,375 | $ 28,263 |
Natural gas liquids | ||||
Revenues | ||||
Total revenues | 2,734 | 3,206 | 5,167 | 7,992 |
Natural gas | ||||
Revenues | ||||
Total revenues | $ 6,531 | $ 17,370 | $ 12,083 | $ 37,218 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 121 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 2,556 | $ 21,094 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depletion, depreciation, and accretion | $ 4,598 | $ 3,458 | 8,860 | 7,056 | |
Stock-based compensation | 1,036 | 702 | |||
Settlement of asset retirement obligations | (71) | ||||
Deferred income taxes | (642) | (355) | |||
Unrealized (gain) loss on derivative contracts | (2,189) | ||||
Accrued settlements on derivative contracts | (919) | ||||
Other | 3 | (4) | |||
Changes in operating assets and liabilities: | |||||
Receivables from crude oil, natural gas, and natural gas liquids revenues | (2,239) | 8,113 | |||
Prepaid expenses and other current assets | (274) | (316) | |||
Accounts payable and accrued liabilities | 2,443 | (5,398) | |||
State and federal income taxes payable | (365) | 56 | |||
Net cash provided by operating activities | 11,378 | 27,769 | |||
Cash flows from investing activities: | |||||
Acquisition of oil and natural gas properties | (31) | ||||
Capital expenditures for oil and natural gas properties | (5,705) | (2,886) | |||
Net cash used in investing activities | (5,705) | (2,917) | |||
Cash flows from financing activities: | |||||
Common stock dividends paid | (8,034) | (8,085) | $ (110,400) | ||
Common stock repurchases, including stock surrendered for tax withholding | (213) | (87) | |||
Repayments of senior secured credit facility | (21,250) | ||||
Net cash (used in) provided by financing activities | (8,247) | (29,422) | |||
Net increase (decrease) in cash and cash equivalents | (2,574) | (4,570) | |||
Cash and cash equivalents, beginning of period | 11,034 | 8,280 | |||
Cash and cash equivalents, end of period | $ 8,460 | $ 3,710 | 8,460 | 3,710 | $ 8,460 |
Non-cash investing and financing transactions: | |||||
Increase (decrease) in accrued capital expenditures for oil and natural gas properties | $ (142) | $ (768) |
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, Common | Total |
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 | |
Balance (shares) at Jun. 30, 2023 | 33,248 | ||||
Balance at Jun. 30, 2023 | $ 33,000 | 40,098,000 | 51,963,000 | 92,094,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 288 | ||||
Issuance of restricted common stock | $ 1,000 | (1,000) | |||
Common stock repurchases, including stock surrendered for tax withholding | (213,000) | (213,015) | |||
Retirements of treasury stock (in shares) | (29) | ||||
Retirements of treasury stock | (213,000) | 213,000 | |||
Stock-based compensation | 1,036,000 | 1,036,000 | |||
Net Income (Loss) | 2,556,000 | 2,556,000 | |||
Common stock dividends paid | (8,034,000) | (8,034,000) | |||
Balance (shares) at Dec. 31, 2023 | 33,507 | ||||
Balance at Dec. 31, 2023 | $ 34,000 | 40,920,000 | 46,485,000 | 87,439,000 | |
Balance (shares) at Sep. 30, 2023 | 33,440 | ||||
Balance at Sep. 30, 2023 | $ 33,000 | 40,465,000 | 49,424,000 | 89,922,000 | |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of restricted common stock (shares) | 84 | ||||
Issuance of restricted common stock | $ 1,000 | (1,000) | |||
Common stock repurchases, including stock surrendered for tax withholding | (108,000) | (108,000) | |||
Retirements of treasury stock (in shares) | (17) | ||||
Retirements of treasury stock | (108,000) | $ 108,000 | |||
Stock-based compensation | 564,000 | 564,000 | |||
Net Income (Loss) | 1,082,000 | 1,082,000 | |||
Common stock dividends paid | (4,021,000) | (4,021,000) | |||
Balance (shares) at Dec. 31, 2023 | 33,507 | ||||
Balance at Dec. 31, 2023 | $ 34,000 | $ 40,920,000 | $ 46,485,000 | $ 87,439,000 |
Financial Statement Presentatio
Financial Statement Presentation | 6 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Events and Accounting Policies | |
Summary of Significant Events and Accounting Policies | Note 1. Financial Statement Presentation Nature of Operations. The Company’s oil and natural gas properties consist of non-operated interests in the following areas: the Jonah 2 Interim Financial Statements. Principles of Consolidation and Reporting. “Accrued taxes other than federal and state income tax” “ Accrued payables ” “Additional Financial Statement Information.” Risk and Uncertainties. Oil and Natural Gas Properties. producing leasehold, geologic and geophysical costs associated with leasehold or drilling interests, and exploration drilling costs. These costs are excluded until the project is evaluated and proved reserves are established or impairment is determined. The Company entered into a strategic partnership with PEDEVCO Corp. (“PEDEVCO”) on September 12, 2023, to jointly develop the Chaveroo oilfield in the Permian Basin in New Mexico (the “Chaveroo Field”). Per the terms of the participation agreement (the “Participation Agreement”) with PEDEVCO, Evolution paid for acreage associated with nine initial drilling locations totaling approximately $0.4 million. As of December 31, 2023, the Company recorded the payment for the initial acreage as unevaluated costs, excluded from the full cost pool. Refer to Note 3, “ Property and Equipment Use of Estimates. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures 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) 13 effective July 1, 2023. The adoption did not have a material effect on the Company’s financial position, results of operations, cash flows or disclosures. 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, 2023 | |
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 Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Revenues Crude oil $ 11,759 $ 13,100 $ 24,375 $ 28,263 Natural gas 6,531 17,370 12,083 37,218 Natural gas liquids 2,734 3,206 5,167 7,992 Total revenues $ 21,024 $ 33,676 $ 41,625 $ 73,473 In the Jonah Field, the Company has elected to take its natural gas and NGL working interest production in-kind and markets its NGL production to Enterprise Products Partners L.P. and its natural gas production to different purchasers. 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 upon control of produced hydrocarbons 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 one “Receivables from crude oil, natural gas, and natural gas liquids revenues” Differences between estimates and actual amounts received for product sales are recorded in the month that payments received from purchasers are remitted to the Company by field operators. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2023 | |
Property and Equipment | |
Property and Equipment | Note 3. Property and Equipment Property and equipment as of December 31, 2023 and June 30, 2023 consisted of the following (in thousands): December 31, 2023 June 30, 2023 Oil and natural gas properties Property costs subject to amortization $ 199,526 $ 197,049 Property costs not subject to amortization 3,370 — Less: Accumulated depletion, depreciation, and impairment (99,415) (91,268) Oil and natural gas properties, net $ 103,481 $ 105,781 As of December 31, 2023, $3.4 million of oil and natural gas property costs were not subject to amortization. On September 12, 2023, the Company entered into a Participation Agreement with PEDEVCO for the joint development of a portion of PEDEVCO’s Permian Basin property in the Chaveroo Field, located in Chaves and Roosevelt Counties, New Mexico. The Participation Agreement does not include any of PEDEVCO’s existing vertical or horizontal wells. Upon signing the Participation Agreement, the Company paid total cash consideration of $0.4 million, which includes less than $0.1 million of capitalized transactions costs, in exchange for a 50% working interest share in the existing leases associated with two initial development blocks, or nine drilling locations. Following completion of the initial nine development wells, the Company will have the right, but not the obligation, to elect to participate and acquire a 50% working interest share in the next development block, for up to a total of approximately 16,000 gross acres for the payment of $450 per acre. The Company allocated all of the acreage costs associated with the initial acreage purchase to unevaluated oil and natural gas properties. As of December 31, 2023, the Company has incurred approximately $3.0 million in capital expenditures related to the drilling and completion of an initial three wells. These capital expenditures are recorded as unevaluated property costs. 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 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 would be charged to expense as a write-down of oil and natural gas properties. Additionally, the Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation. Depletion of oil and natural gas properties was $8.1 million and $6.5 million for the six months ended December 31, 2023 and 2022, respectively. During the six months ended December 31, 2023 and 2022, the Company incurred development capital expenditures of $2.4 million and $2.1 million, respectively. At December 31, 2023, 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, 2023 of the West Texas Intermediate (“WTI”) crude oil spot price of $78.21 per barrel and Henry Hub natural gas spot price of $2.63 per MMBtu, adjusted by market differentials by field. The net price per barrel of NGLs was $31.57, 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, 2023 the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and as a result, no write-down was necessary. 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 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 prices received 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 write-down was necessary. |
Senior Secured Credit Facility
Senior Secured Credit Facility | 6 Months Ended |
Dec. 31, 2023 | |
Senior Secured Credit Facility | |
Senior Secured Credit Facility | Note 4. 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 May 5, 2023, the Company entered into the Tenth Amendment to the Senior Secured Credit Facility extending the maturity to April 9, 2026. The Tenth Amendment also replaced the London Interbank Offered Rate ("LIBOR") with the Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment of 0.05% to effectively convert SOFR to a LIBOR equivalent and modifies the Margined Collateral Value, as defined in the Ninth Amendment to the Senior Secured Credit Facility, to $95.0 million. . 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, 2023, the Company did not have any borrowings outstanding under its Senior Secured Credit Facility, resulting in $50.0 million of available borrowing capacity. As of December 31, 2023, the Company is in compliance with the financial covenants under the Senior Secured Credit Facility. 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 5. 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, 2020 through June 30, 2023 for federal tax purposes and for the fiscal years ended June 30, 2019 through June 30, 2023 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 six months ended December 31, 2023, the Company recognized income tax expense of $1.0 million and had an effective tax rate of 28.5% compared to income tax expense of $6.0 million and an effective tax rate of 22.1% for the six months ended December 31, 2022. 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, 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, 2023 | |
Derivatives | |
Derivatives | Note 6. 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 strategy and the requirements under the Senior Secured Credit Facility (as discussed in Note 4, “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 June 30, 2023, all of the Company’s derivative contracts had expired. The Company has no open derivative contracts as of December 31, 2023 or June 30, 2023, and the Company did not post collateral under any of its derivative contracts during the periods in which contracts were open as they were secured under the Company’s Senior Secured Credit Facility. The Company has in the past, and may utilize in the future, commodity derivative contracts such as 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 “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 2023 2022 2023 2022 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 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, 2023 | |
Fair Value Measurement | |
Fair Value Measurement | Note 7. 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. As required by ASC 820, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgement, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no transfers between fair value hierarchy levels for any period presented in this report. The Company did not have any open positions at December 31, 2023 or June 30, 2023. 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 8, “Asset Retirement Obligations ” |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | Note 8. 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, subject to amortization, 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) for the period ended December 31, 2023 (in thousands): December 31, 2023 Asset retirement obligations — beginning of period $ 17,067 Accretion of discount 712 Asset retirement obligations — end of period 17,779 Less: current asset retirement obligations (41) Long-term portion of asset retirement obligations $ 17,738 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 9. 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 subject to estimation. 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, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | Note 10. Stockholders’ Equity Common Stock As of December 31, 2023, the Company had 33,506,794 shares of common stock outstanding. The Company began paying quarterly cash dividends on common stock in December 2013. As of December 31, 2023, the Company has cumulatively paid over $110.4 million in cash dividends. The Company paid dividends of $8.0 million and $8.1 million to its common stockholders during the six months ended December 31, 2023 and 2022, respectively. The following table reflects the dividends paid per share within the respective three-month periods: Fiscal Year 2024 2023 Second quarter ended December 31, $ 0.120 $ 0.120 First quarter ended September 30, 0.120 0.120 On September 8, 2022, the Board of Directors approved a share repurchase program, under which the Company is authorized to repurchase up to $25.0 million of its common stock in the open market 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, the Company’s capital needs and resources, 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. In November 2023, 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 is effective until June 30, 2024, unless extended, renewed or terminated by the Company, and has a maximum authorized amount of $0.8 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. No shares were purchased under this plan during the period ended December 31, 2023. During the six months ended December 31, 2023 and 2022, the Company acquired treasury stock upon the ordinary course of scheduled vestings of employee stock-based awards to fund payroll tax withholding obligations. These treasury shares were subsequently cancelled. Such shares were valued at fair market value on the date of vesting. The following table summarizes all treasury stock purchases during the six months ended December 31, 2023 and 2022: Six Months Ended December 31, 2023 2022 Number of treasury shares acquired 29,236 12,049 Average cost per share $ 7.29 $ 7.19 Total cost of treasury shares acquired $ 213,015 $ 86,690 Expected Tax Treatment of Dividends For the fiscal year ended June 30, 2023, 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, 2024, 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, 2023 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 (as amended, the “2016 Plan”) authorizes the issuance of 3.6 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. As of December 31, 2023 and June 30, 2023, approximately 0.9 million shares and 1.3 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. During the three and six months ended December 31, 2023, the Company recognized $0.6 million and $1.0 million, respectively, related to stock-based compensation. During 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. Stock-based compensation expense 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 generally have one-year cliff vesting. For such awards, grant date fair value is based on market value of the Company’s common stock at the time of grant. This value is then amortized ratably over the service period. Previously recognized amortization expense subsequent to the last vesting date of an award is reversed in the event that the holder has no longer rendered service to the Company resulting in forfeiture of the award. 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 or 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 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, 2023, the Company granted a total of 0.4 million equity awards that included 0.2 million time-vested restricted stock awards, 0.1 million performance-based restricted stock awards, and 0.1 million performance-based contingent stock units. During the six months ended December 31, 2022, the Company granted a total of 0.4 million equity awards that included 0.3 million time-vested restricted stock awards, 0.1 million performance-based restricted stock awards, and less than 0.05 million of performance-based contingent stock units. For performance-based awards granted during the six months ended December 31, 2023 and 2022, the assumptions used in the Monte Carlo simulation valuations were as follows: Six Months Ended December 31, 2023 2022 Weighted average fair value of performance-based awards granted $ 3.58 $ 6.69 Risk-free interest rate 4.87% 3.91% to 4.44% Expected term in years 2.77 2.66 to 2.78 Expected volatility 55.0% 69.6% to 70.9% Dividend yield 7.4% 6.1% Unvested restricted stock awards as of December 31, 2023 consisted of the following: Weighted Number of Average Restricted Grant-Date Award Type Shares Fair Value Time-vested awards 439,603 $ 6.61 Performance-based awards 278,688 5.46 Unvested at December 31, 2023 718,291 $ 6.16 The following table sets forth the restricted stock award transactions for the six months ended December 31, 2023: 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, 2023 595,414 6.48 $ 2,827 2.4 Time-vested shares granted 152,192 6.24 Performance-based shares granted 136,315 4.80 Vested (165,630) 6.26 Unvested at December 31, 2023 718,291 $ 6.16 $ 3,470 2.1 The following table sets forth 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, 2023 96,398 $ 3.49 $ 195 1.9 Performance-based awards granted 102,239 1.95 Unvested at December 31, 2023 198,637 $ 2.70 $ 320 2.0 |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 6 Months Ended |
Dec. 31, 2023 | |
Earnings (Loss) per Common Share | |
Earnings (Loss) per Common Share | Note 11. 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, 2023 2022 2023 2022 Numerator Net income (loss) $ 1,082 $ 10,387 $ 2,556 $ 21,094 Undistributed earnings allocated to unvested restricted stock (24) (162) (51) (274) Net income (loss) for earnings per share calculation $ 1,058 $ 10,225 $ 2,505 $ 20,820 Denominator Weighted average number of common shares outstanding — Basic 32,693 33,174 32,676 33,154 Effect of dilutive securities: Unvested restricted stock awards 171 206 225 195 Unvested contingent restricted stock units 36 14 39 7 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 32,900 33,394 32,940 33,356 Net income (loss) per common share — Basic $ 0.03 $ 0.31 $ 0.08 $ 0.63 Net income (loss) per common share — Diluted $ 0.03 $ 0.31 $ 0.08 $ 0.62 Unvested restricted stock awards (both time-vested and performance-based), totaling approximately 0.2 million and 0.1 million for the three and six months ended December 31, 2023, 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 (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. 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, 2023 | |
Additional Financial Statement Information | |
Additional Financial Statement Information | Note 12. Additional Financial Statement Information Certain amounts on the unaudited condensed consolidated balance sheets are comprised of the following (in thousands): December 31, 2023 June 30, 2023 Prepaid expenses and other current assets: Other receivables $ 21 $ 18 Prepaid insurance 468 727 Prepaid federal and state income taxes 1,371 805 Carryback of EOR tax credit 347 347 Prepaid other 362 380 Total prepaid expenses and other current assets $ 2,569 $ 2,277 Other assets: Deposit $ 1,158 $ 1,158 Right of use asset under operating lease 179 183 Total other assets $ 1,337 $ 1,341 Accrued liabilities and other: Accrued payables $ 2,890 $ 3,005 Accrued capital expenditures 593 167 Accrued incentive and other compensation 611 941 Accrued royalties payable 1,046 977 Accrued taxes other than federal and state income tax 980 739 Accrued severance — 81 Operating lease liability 97 59 Asset retirement obligations due within one year 41 55 Accrued - other 36 3 Total accrued liabilities and other $ 6,294 $ 6,027 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 13. Subsequent Events Dividend Declaration On February 5, 2024, the Company declared a quarterly cash dividend of $0.120 per share of common stock to shareholders of record on March 15, 2024 and payable on March 28, 2024. Derivatives On January 30, 2024, the Company entered into new derivative contracts covering 40,775 barrels of its crude oil comprised of put positions at $75.00 per barrel and fixed-price swap positions at $73.41 per barrel over the effective period of February 2024 June 2024 SCOOP/STACK Acquisitions On January 5, 2024, the Company entered into separate Purchase and Sale Agreements (“PSAs”) with Red Sky Resources III, LLC, Red Sky Resources IV, LLC, and Coriolis Energy Partners I, LLC. Pursuant to the PSAs, the Company will acquire non-operating working interests in oil and natural gas properties in the SCOOP and STACK plays in central Oklahoma for a combined purchase price of approximately $43.5 million in cash. Contemporaneous with the execution of the PSAs, the Company paid deposits totaling $3.26 million. The Company expects to fund the balance of the consideration to be paid in the transactions with a combination of cash on hand and borrowings under its senior secured credit facility. The acquired assets consist of an average working interest of approximately 3% net to Evolution, in 231 producing wells and as of the effective date, 21 gross drilled and uncompleted wells to be funded through completion by the sellers, in the SCOOP and STACK plays of the Anadarko Basin in Blaine, Canadian, Carter, Custer, Dewey, Garvin, Grady, Kingfisher, McClain, and Stephens counties, Oklahoma. The effective date of these acquisitions is November 1, 2023 and each transaction is expected to close in mid-February during the third quarter of fiscal 2024. The PSAs governing each transaction contain customary representations and warranties, covenants, indemnification, closing conditions and termination provisions and also provide for various purchase price adjustments, including adjusting the purchase price for the net cash flows of the properties between the effective date and closing date of the acquisition, to be calculated as of the closing date. |
Financial Statement Presentat_2
Financial Statement Presentation (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Events and Accounting Policies | |
Nature of Operations | Nature of Operations. The Company’s oil and natural gas properties consist of non-operated interests in the following areas: the Jonah 2 |
Interim Financial Statements | Interim Financial Statements. |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. “Accrued taxes other than federal and state income tax” “ Accrued payables ” “Additional Financial Statement Information.” |
Risk and Uncertainties | Risk and Uncertainties. |
Use of Estimates | Use of Estimates. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties. producing leasehold, geologic and geophysical costs associated with leasehold or drilling interests, and exploration drilling costs. These costs are excluded until the project is evaluated and proved reserves are established or impairment is determined. The Company entered into a strategic partnership with PEDEVCO Corp. (“PEDEVCO”) on September 12, 2023, to jointly develop the Chaveroo oilfield in the Permian Basin in New Mexico (the “Chaveroo Field”). Per the terms of the participation agreement (the “Participation Agreement”) with PEDEVCO, Evolution paid for acreage associated with nine initial drilling locations totaling approximately $0.4 million. As of December 31, 2023, the Company recorded the payment for the initial acreage as unevaluated costs, excluded from the full cost pool. Refer to Note 3, “ Property and Equipment |
Recently Adopted and Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures 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) 13 effective July 1, 2023. The adoption did not have a material effect on the Company’s financial position, results of operations, cash flows or disclosures. 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 (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Schedule of disaggregates the Company's revenues by major product | Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Revenues Crude oil $ 11,759 $ 13,100 $ 24,375 $ 28,263 Natural gas 6,531 17,370 12,083 37,218 Natural gas liquids 2,734 3,206 5,167 7,992 Total revenues $ 21,024 $ 33,676 $ 41,625 $ 73,473 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment as of December 31, 2023 and June 30, 2023 consisted of the following (in thousands): December 31, 2023 June 30, 2023 Oil and natural gas properties Property costs subject to amortization $ 199,526 $ 197,049 Property costs not subject to amortization 3,370 — Less: Accumulated depletion, depreciation, and impairment (99,415) (91,268) Oil and natural gas properties, net $ 103,481 $ 105,781 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Derivatives | |
Derivative Instruments, Gain (Loss) | 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 2023 2022 2023 2022 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 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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) for the period ended December 31, 2023 (in thousands): December 31, 2023 Asset retirement obligations — beginning of period $ 17,067 Accretion of discount 712 Asset retirement obligations — end of period 17,779 Less: current asset retirement obligations (41) Long-term portion of asset retirement obligations $ 17,738 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividends declared and paid | Fiscal Year 2024 2023 Second quarter ended December 31, $ 0.120 $ 0.120 First quarter ended September 30, 0.120 0.120 |
Schedule of share repurchases | Six Months Ended December 31, 2023 2022 Number of treasury shares acquired 29,236 12,049 Average cost per share $ 7.29 $ 7.19 Total cost of treasury shares acquired $ 213,015 $ 86,690 |
Schedule of Market-based Award Valuation Assumptions | For performance-based awards granted during the six months ended December 31, 2023 and 2022, the assumptions used in the Monte Carlo simulation valuations were as follows: Six Months Ended December 31, 2023 2022 Weighted average fair value of performance-based awards granted $ 3.58 $ 6.69 Risk-free interest rate 4.87% 3.91% to 4.44% Expected term in years 2.77 2.66 to 2.78 Expected volatility 55.0% 69.6% to 70.9% Dividend yield 7.4% 6.1% |
Schedule of restricted stock unit transactions | Unvested restricted stock awards as of December 31, 2023 consisted of the following: Weighted Number of Average Restricted Grant-Date Award Type Shares Fair Value Time-vested awards 439,603 $ 6.61 Performance-based awards 278,688 5.46 Unvested at December 31, 2023 718,291 $ 6.16 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock unit transactions | The following table sets forth the restricted stock award transactions for the six months ended December 31, 2023: 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, 2023 595,414 6.48 $ 2,827 2.4 Time-vested shares granted 152,192 6.24 Performance-based shares granted 136,315 4.80 Vested (165,630) 6.26 Unvested at December 31, 2023 718,291 $ 6.16 $ 3,470 2.1 |
Contingent restricted stock grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock unit transactions | The following table sets forth 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, 2023 96,398 $ 3.49 $ 195 1.9 Performance-based awards granted 102,239 1.95 Unvested at December 31, 2023 198,637 $ 2.70 $ 320 2.0 |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2023 2022 Numerator Net income (loss) $ 1,082 $ 10,387 $ 2,556 $ 21,094 Undistributed earnings allocated to unvested restricted stock (24) (162) (51) (274) Net income (loss) for earnings per share calculation $ 1,058 $ 10,225 $ 2,505 $ 20,820 Denominator Weighted average number of common shares outstanding — Basic 32,693 33,174 32,676 33,154 Effect of dilutive securities: Unvested restricted stock awards 171 206 225 195 Unvested contingent restricted stock units 36 14 39 7 Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share 32,900 33,394 32,940 33,356 Net income (loss) per common share — Basic $ 0.03 $ 0.31 $ 0.08 $ 0.63 Net income (loss) per common share — Diluted $ 0.03 $ 0.31 $ 0.08 $ 0.62 |
Additional Financial Statemen_2
Additional Financial Statement Information (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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, 2023 June 30, 2023 Prepaid expenses and other current assets: Other receivables $ 21 $ 18 Prepaid insurance 468 727 Prepaid federal and state income taxes 1,371 805 Carryback of EOR tax credit 347 347 Prepaid other 362 380 Total prepaid expenses and other current assets $ 2,569 $ 2,277 Other assets: Deposit $ 1,158 $ 1,158 Right of use asset under operating lease 179 183 Total other assets $ 1,337 $ 1,341 Accrued liabilities and other: Accrued payables $ 2,890 $ 3,005 Accrued capital expenditures 593 167 Accrued incentive and other compensation 611 941 Accrued royalties payable 1,046 977 Accrued taxes other than federal and state income tax 980 739 Accrued severance — 81 Operating lease liability 97 59 Asset retirement obligations due within one year 41 55 Accrued - other 36 3 Total accrued liabilities and other $ 6,294 $ 6,027 |
Financial Statement Presentat_3
Financial Statement Presentation - Nature of Operations (Details) $ in Thousands | Sep. 12, 2023 USD ($) location | Dec. 31, 2023 USD ($) item | Jun. 30, 2023 USD ($) |
Reclassification [Line Items] | |||
Amount paid for interest in drilling locations | $ 400 | ||
Number of initial drilling locations | location | 9 | ||
Number of wells with overriding royalty interest | item | 4 | ||
Accrued taxes other than federal and state income tax | $ 980 | $ 739 | |
Accrued payables | $ 2,890 | 3,005 | |
Revision of Prior Period, Reclassification, Adjustment [Member] | |||
Reclassification [Line Items] | |||
Accrued taxes other than federal and state income tax | 600 | ||
Accrued payables | $ (600) |
Revenue Recognition - Revenues
Revenue Recognition - Revenues By Major Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition | ||||
Total revenues | $ 21,024 | $ 33,676 | $ 41,625 | $ 73,473 |
Crude oil | ||||
Revenue Recognition | ||||
Total revenues | 11,759 | 13,100 | 24,375 | 28,263 |
Natural gas | ||||
Revenue Recognition | ||||
Total revenues | 6,531 | 17,370 | 12,083 | 37,218 |
Natural gas liquids | ||||
Revenue Recognition | ||||
Total revenues | $ 2,734 | $ 3,206 | $ 5,167 | $ 7,992 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 6 Months Ended |
Dec. 31, 2023 | |
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 |
Property and Equipment - Other
Property and Equipment - Other (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Oil and natural gas properties | ||
Property costs subject to amortization | $ 199,526 | $ 197,049 |
Property costs not subject to amortization | 3,370 | |
Less: Accumulated depletion, depreciation, and accretion | (99,415) | (91,268) |
Total property and equipment, net | $ 103,481 | $ 105,781 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 6 Months Ended | |||
Sep. 12, 2023 USD ($) a location $ / a | Dec. 31, 2023 USD ($) $ / MMBTU $ / bbl | Dec. 31, 2022 USD ($) location $ / bbl $ / MMBTU | Jun. 30, 2023 USD ($) | |
Property and Equipment | ||||
Amount paid for interest in drilling locations | $ 400 | |||
Working interest share, percentage | 50% | |||
Percentage or working interest available to acquire | 50% | |||
Number of initial development blocks | location | 2 | |||
Number of initial drilling locations | location | 9 | |||
Cost per acre of optional development block | $ / a | 450 | |||
Property costs subject to amortization | $ 199,526 | $ 197,049 | ||
Unproved Properties costs not subject to amortization | 3,370 | |||
Depletion | 8,100 | $ 6,500 | ||
Capital expenditures | 2,400 | 2,100 | ||
Impairment of proved property | $ 0 | $ 0 | ||
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 | 2.63 | 6.40 | ||
Net price per barrel (in dollars per barrel) | $ / bbl | 31.57 | 48.50 | ||
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 | 78.21 | 94.14 | ||
Maximum | ||||
Property and Equipment | ||||
Capitalized transactions costs | $ 100 | |||
Development block, acres gross | a | 16,000 | |||
Barnett Shale | ||||
Property and Equipment | ||||
Initial wells drilled | location | 3 | |||
Capital expenditures | $ 3,000 |
Senior Secured Credit Facility
Senior Secured Credit Facility (Details) $ in Millions | 6 Months Ended | ||
May 05, 2023 USD ($) agreement | Apr. 11, 2016 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Minimum current ratio | 1 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable interest rate | 0.50% | ||
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 | ||
Available borrowing capacity | $ 50 | ||
Credit facility maturity date | Apr. 09, 2026 | ||
Credit facility, number of rights to interim unscheduled redeterminations | agreement | 1 | ||
Minimum consolidated tangible net worth | $ 40 | ||
Commitment fee percentage | 0.25% | ||
Maximum total leverage ratio (not more than) | 3 | ||
Current borrowing base | $ 50 | ||
Margined collateral value | $ 95 | ||
Covenant compliance | As of December 31, 2023, the Company is in compliance with the financial covenants under the Senior Secured Credit Facility. | ||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Prime Rate | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1% | ||
Line of Credit | Senior Secured Reserve-Based Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.80% | ||
Credit spread adjustment | 0.05% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued interest and penalties | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | $ 554,000 | $ 2,933,000 | $ 1,017,000 | $ 5,997,000 |
Income tax rate percentage | 28.50% | 22.10% | ||
Statutory federal tax rate | 21% | 21% |
Derivatives - Gain and Loss on
Derivatives - Gain and Loss on Derivatives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) agreement | Jun. 30, 2023 USD ($) agreement | |
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 | ||
Open derivative contract | agreement | 0 | 0 | ||
Collateral | $ 0 | $ 0 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Fair Value Measurement | ||
Open positions | $ 0 | $ 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Reconciliation of the beginning and ending asset retirement obligation | ||
Asset retirement obligations - beginning of period | $ 17,067 | |
Accretion of discount | 712 | |
Asset retirement obligations - end of period | 17,779 | $ 17,067 |
Less: current asset retirement obligations | (41) | (55) |
Long-term portion of asset retirement obligations | $ 17,738 | $ 17,012 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 2 Months Ended | 6 Months Ended | 121 Months Ended | |||
Sep. 08, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||||||
Common stock, outstanding shares (in shares) | 33,506,794 | 33,506,794 | 33,506,794 | 33,247,523 | ||
Common stock dividends paid | $ 8,034 | $ 8,085 | $ 110,400 | |||
Cash dividends to common stockholders | $ 8,000 | $ 8,100 | ||||
Number of treasury shares acquired (in shares) | 29,236 | 12,049 | ||||
2022 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 25,000 | |||||
Stock repurchase program expiration date | Dec. 31, 2024 | |||||
Rule 10b5 1 plan | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 800 | $ 800 | 800 | |||
Stock repurchase program expiration date | Jun. 30, 2024 | |||||
Repurchase amount | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Stockholders' Equity | ||||
Cash dividends paid (in USD per share) | $ 0.120 | $ 0.120 | $ 0.120 | $ 0.120 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Shares (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity | ||||
Number of treasury shares acquired (in shares) | 29,236 | 12,049 | ||
Average cost per share (in USD per share) | $ 7.29 | $ 7.19 | ||
Total cost of treasury shares acquired | $ 108,000 | $ 61,000 | $ 213,015 | $ 86,690 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Incentive Plan Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 400,000 | 400,000 | |||
Stock-based compensation expense | $ 0.6 | $ 0.5 | $ 1 | $ 0.7 | |
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) | 100,000 | 50,000 | |||
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) | 136,315 | 100,000 | |||
Contingent restricted stock grants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 102,239 | ||||
Restricted Stock Time Vested | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 152,192 | 300,000 | |||
2016 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for granting (in shares) | 3,600,000 | 3,600,000 | |||
Shares available for grant (shares) | 900,000 | 900,000 | 1,300,000 | ||
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 | ||||
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) | 200,000 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Assumptions (Details) - $ / shares | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of market-based awards granted (in USD per share) | $ 3.58 | $ 6.69 |
Risk-free interest rate | 4.87% | |
Risk-free interest rate, minimum | 3.91% | |
Risk-free interest rate, maximum | 4.44% | |
Expected life in years | 2 years 9 months 7 days | |
Expected volatility | 55% | |
Expected volatility, minimum | 69.60% | |
Expected volatility, maximum | 70.90% | |
Dividend yield | 7.40% | 6.10% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 2 years 7 months 28 days | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 2 years 9 months 10 days |
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, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Number of Restricted Shares | |||
Granted (in shares) | 400,000 | 400,000 | |
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 3.58 | $ 6.69 | |
Restricted Stock | |||
Number of Restricted Shares | |||
Unvested, beginning of period (in shares) | 595,414 | ||
Vested (in shares) | (165,630) | ||
Unvested, end of period (in shares) | 718,291 | 595,414 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in USD per share) | $ 6.48 | ||
Vested (in USD per share) | 6.26 | ||
Unvested, end of period (in USD per share) | $ 6.16 | $ 6.48 | |
Unamortized compensation expense | $ 3,470 | $ 2,827 | |
Weighted Average Remaining Amortization Period (Years) | 2 years 1 month 6 days | 2 years 4 months 24 days | |
Restricted Stock, Performance Based | |||
Number of Restricted Shares | |||
Granted (in shares) | 136,315 | 100,000 | |
Unvested, end of period (in shares) | 278,688 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 4.80 | ||
Unvested, end of period (in USD per share) | $ 5.46 | ||
Restricted Stock Time Vested | |||
Number of Restricted Shares | |||
Granted (in shares) | 152,192 | 300,000 | |
Unvested, end of period (in shares) | 439,603 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in USD per share) | $ 6.24 | ||
Unvested, end of period (in USD per share) | $ 6.61 | ||
Contingent Restricted Stock Grants | |||
Number of Restricted Shares | |||
Unvested, beginning of period (in shares) | 96,398 | ||
Granted (in shares) | 102,239 | ||
Unvested, end of period (in shares) | 198,637 | 96,398 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in USD per share) | $ 3.49 | ||
Granted (in USD per share) | 1.95 | ||
Unvested, end of period (in USD per share) | $ 2.70 | $ 3.49 | |
Unamortized compensation expense | $ 320 | $ 195 | |
Weighted Average Remaining Amortization Period (Years) | 2 years | 1 year 10 months 24 days |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator | ||||
Net income (loss) | $ 1,082 | $ 10,387 | $ 2,556 | $ 21,094 |
Undistributed earnings allocated to unvested restricted stock | (24) | (162) | (51) | (274) |
Net income (loss) for earnings per share calculation | $ 1,058 | $ 10,225 | $ 2,505 | $ 20,820 |
Denominator | ||||
Weighted average number of common shares outstanding - Basic (in shares) | 32,693 | 33,174 | 32,676 | 33,154 |
Effect of dilutive securities: | ||||
Unvested restricted stock (in shares) | 171 | 206 | 225 | 195 |
Unvested contingent restricted stock units (in shares) | 36 | 14 | 39 | 7 |
Weighted average number of common shares and dilutive potential common shares used in diluted earnings per share (in shares) | 32,900 | 33,394 | 32,940 | 33,356 |
Net earnings (loss) per common share - Basic (in dollars per share) | $ 0.03 | $ 0.31 | $ 0.08 | $ 0.63 |
Net earnings (loss) per common share - Diluted (in dollars per share) | $ 0.03 | $ 0.31 | $ 0.08 | $ 0.62 |
Earnings (Loss) per Common Sh_4
Earnings (Loss) per Common Share - Schedule of Outstanding Potentially Dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares (in shares) | 200,000 | 90,000 | 100,000 | 49,000,000 |
Additional Financial Statemen_3
Additional Financial Statement Information - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Prepaid expenses and other current assets: | ||
Other receivables | $ 21 | $ 18 |
Prepaid insurance | 468 | 727 |
Prepaid federal and state income taxes | 1,371 | 805 |
Carryback of EOR tax credit | 347 | 347 |
Prepaid other | 362 | 380 |
Total prepaid expenses and other current assets | 2,569 | 2,277 |
Other assets: | ||
Deposit | 1,158 | 1,158 |
Right of use asset under operating lease | 179 | 183 |
Total other assets | 1,337 | 1,341 |
Accrued liabilities and other: | ||
Accrued payables | 2,890 | 3,005 |
Accrued capital expenditures | 593 | 167 |
Accrued incentive and other compensation | 611 | 941 |
Accrued royalties payable | 1,046 | 977 |
Accrued taxes other than federal and state income tax | 980 | 739 |
Accrued severance | 81 | |
Operating lease liability | 97 | 59 |
Asset retirement obligations due within one year | 41 | 55 |
Accrued - other | 36 | 3 |
Total Accrued liabilities and other | $ 6,294 | $ 6,027 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Feb. 05, 2024 $ / shares | Jan. 30, 2024 $ / bbl bbl | Jan. 05, 2024 USD ($) location | May 05, 2023 USD ($) | Sep. 12, 2023 location |
Subsequent Event [Line Items] | |||||
Number of gross wells in process | location | 9 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividend declared (in dollars per share) | $ / shares | $ 0.120 | ||||
Dividend declared, date declared | Feb. 05, 2024 | ||||
Dividend declared, date of record | Mar. 15, 2024 | ||||
Dividend declared, date to be paid | Mar. 28, 2024 | ||||
Oil and Natural Gas Assets in the SCOOP and STACK Plays [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Agreement date | Jan. 05, 2024 | ||||
Effective date | Nov. 01, 2023 | ||||
Combined purchase price expected | $ | $ 43,500 | ||||
Payments for productive assets | $ | $ 3,260 | ||||
Average working interest | 3% | ||||
Number o producing wells | location | 231 | ||||
Number of wells funded through completion by the sellers | location | 21 | ||||
Energy Related Derivative [Member] | Crude Oil [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Volumes in Barrels | bbl | 40,775 | ||||
Derivative, start date | Feb. 01, 2024 | ||||
Derivative, end date | Jun. 30, 2024 | ||||
Crude Oil Put Positions [Member] | Crude Oil [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Derivative, strike price / Price (in USD per barrel) | $ / bbl | 75 | ||||
Crude Oil Fixed Price Swap Positions [Member] | Crude Oil [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Fixed-price / Price (in USD per barrel) | $ / bbl | 73.41 | ||||
Revolving credit facility | Senior Secured Reserve-Based Credit Facility | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Credit facility maturity date | Apr. 09, 2026 | ||||
Margined collateral value | $ | $ 95,000 | ||||
Revolving credit facility | Senior Secured Reserve-Based Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Credit spread adjustment | 0.05% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,082 | $ 10,387 | $ 2,556 | $ 21,094 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |