Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 16, 2021 | Jun. 30, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-36057 | ||
Entity Registrant Name | RING ENERGY, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 90-0406406 | ||
Entity Address, Address Line One | 1725 Hughes Landing Blvd. Suite 900 | ||
Entity Address, City or Town | The Woodlands | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | 281 | ||
Local Phone Number | 397-3699 | ||
Title of 12(b) Security | Common Stock, par value $0.001 | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 74,553,881 | ||
Entity Common Stock, Shares Outstanding | 99,181,587 | ||
Entity Central Index Key | 0001384195 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Trading Symbol | REI | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
ICFR Auditor Attestation Flag | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 3,578,634 | $ 10,004,622 |
Accounts receivable | 14,997,979 | 22,909,195 |
Joint interest billing receivable | 1,327,262 | 1,812,469 |
Derivative receivable | 499,906 | |
Prepaid expenses and retainers | 396,109 | 3,982,255 |
Total Current Assets | 20,799,890 | 38,708,541 |
Properties and Equipment | ||
Oil and natural gas properties subject to amortization | 836,514,815 | 1,083,966,135 |
Financing lease asset subject to depreciation | 858,513 | 858,513 |
Fixed assets subject to depreciation | 1,520,890 | 1,465,551 |
Total Properties and Equipment | 838,894,218 | 1,086,290,199 |
Accumulated depreciation, depletion and amortization | (200,111,658) | (157,074,044) |
Net Properties and Equipment | 638,782,560 | 929,216,155 |
Operating lease asset | 1,494,399 | 1,867,044 |
Deferred Financing Costs | 2,379,348 | 3,214,408 |
Total Assets | 663,456,197 | 973,006,148 |
Current Liabilities | ||
Accounts payable | 32,500,081 | 54,635,602 |
Financing lease liability | 295,311 | 280,970 |
Operating lease liability | 859,017 | 1,175,904 |
Derivative liabilities | 3,287,328 | 3,000,078 |
Total Current Liabilities | 36,941,737 | 59,092,554 |
Deferred income taxes | 0 | 6,001,176 |
Revolving line of credit | 313,000,000 | 366,500,000 |
Financing lease liability, less current portion | 126,857 | 424,126 |
Operating lease liability, less current portion | 635,382 | 691,140 |
Derivative liabilities | 869,273 | |
Asset retirement obligations | 17,117,135 | 16,787,219 |
Total Liabilities | 368,690,384 | 449,496,215 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 150,000,000 shares authorized; 85,568,287 shares and 67,993,797 shares issued and outstanding, respectively | 85,568 | 67,994 |
Additional paid-in capital | 550,951,415 | 526,301,281 |
Accumulated deficit | (256,271,170) | (2,859,342) |
Total Stockholders' Equity | 294,765,813 | 523,509,933 |
Total Liabilities and Stockholders' Equity | $ 663,456,197 | $ 973,006,148 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 85,568,287 | 67,993,797 |
Common Stock, Shares, Outstanding | 85,568,287 | 67,993,797 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STATEMENTS OF OPERATIONS | |||
Oil and Natural Gas Revenues | $ 113,025,138 | $ 195,702,831 | $ 120,065,361 |
Costs and Operating Expenses | |||
Oil and natural gas production costs | 36,968,873 | 48,496,225 | 27,801,989 |
Oil and natural gas production taxes | 5,228,090 | 9,130,379 | 5,631,093 |
Depreciation, depletion and amortization | 43,010,660 | 56,204,269 | 39,024,886 |
Ceiling test impairment | 277,501,943 | 0 | 14,172,309 |
Asset retirement obligation accretion | 906,616 | 943,707 | 606,459 |
Operating lease expense | 1,196,372 | 925,217 | |
General and administrative expense | 16,874,050 | 19,866,706 | 12,867,686 |
Total Costs and Operating Expenses | 381,686,604 | 135,566,503 | 100,104,422 |
Income (Loss) from Operations | (268,661,466) | 60,136,328 | 19,960,939 |
Other Income (Expense) | |||
Interest income | 8 | 13,511 | 97,855 |
Interest (expense) | (17,617,614) | (13,865,556) | (427,898) |
Realized gain (loss) on derivatives | 22,522,591 | (11,153,701) | |
Unrealized gain (loss) on change in fair value of derivatives | (1,156,523) | (3,000,078) | 3,968,286 |
Deposit forfeiture income | 5,500,000 | ||
Net Other Income (Expense) | 9,248,462 | (16,852,123) | (7,515,458) |
Income (Loss) Before Provision for Income Taxes | (259,413,004) | 43,284,205 | 12,445,481 |
Benefit from (Provision for) Income Taxes | 6,001,176 | (13,787,654) | (3,445,721) |
Net Income (Loss) | $ (253,411,828) | $ 29,496,551 | $ 8,999,760 |
Basic Earnings (Loss) per share | $ 3.48 | $ 0.44 | $ 0.15 |
Diluted Earnings (Loss) per share | $ 3.48 | $ 0.44 | $ 0.15 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Total |
Balance at Dec. 31, 2017 | $ 54,224 | $ 397,904,769 | $ (41,355,653) | $ 356,603,340 |
Balance (in shares) at Dec. 31, 2017 | 54,224,029 | |||
Share-based compensation | $ 0 | 3,870,934 | 0 | 3,870,934 |
Options exercised (cashless exercise) | $ 103 | (103) | 0 | 0 |
Options exercised (cashless exercise) (in shares) | 103,113 | |||
Options exercised | $ 50 | 99,950 | 0 | 100,000 |
Restricted stock vested | $ 65 | (65) | 0 | 0 |
Restricted stock vested (in shares) | 64,620 | |||
Common stock issued for cash, net | $ 6,164 | 81,814,974 | 0 | 81,821,138 |
Common stock issued for cash, net (in Shares) | 6,164,000 | |||
Common stock issued as consideration in asset acquisition | $ 2,624 | 11,201,634 | 0 | 11,204,258 |
Common stock issued as consideration in asset acquisition (in shares) | 2,623,948 | |||
Net income (loss) | $ 0 | 0 | 8,999,760 | 8,999,760 |
Balance at Dec. 31, 2018 | $ 63,230 | 494,892,093 | (32,355,893) | 462,599,430 |
Balance (in shares) at Dec. 31, 2018 | 63,229,710 | |||
Share-based compensation | $ 0 | 3,082,625 | 0 | 3,082,625 |
Options exercised | 100,000 | |||
Restricted stock vested | $ 187 | (187) | 0 | 0 |
Restricted stock vested (in shares) | 187,136 | |||
Common stock issued as consideration in asset acquisition | $ 4,577 | 28,326,750 | 0 | 28,331,327 |
Common stock issued as consideration in asset acquisition (in shares) | 4,576,951 | |||
Net income (loss) | $ 0 | 0 | 29,496,551 | 29,496,551 |
Balance at Dec. 31, 2019 | $ 67,994 | 526,301,281 | (2,859,342) | 523,509,933 |
Balance (in shares) at Dec. 31, 2019 | 67,993,797 | |||
Share-based compensation | $ 0 | 5,364,162 | 0 | 5,364,162 |
Return of common stock issued as consideration in asset acquisition | $ (17) | (103,368) | 0 | (103,385) |
Return of common stock issued as consideration in asset acquisition (in shares) | (16,702) | |||
Common stock and warrants issued for cash, net | $ 13,076 | 19,366,756 | 19,379,832 | |
Common stock and warrants issued for cash, net (in shares) | 13,075,800 | |||
Exercise of pre-funded warrants issued in offering | $ 3,300 | 0 | 0 | 3,300 |
Exercise of pre-funded warrants issued in offering (in shares) | 3,300,000 | |||
Common stock issued for services | $ 35 | 23,765 | 0 | 23,800 |
Common stock issued for services (in shares) | 35,000 | |||
Restricted stock vested | $ 1,180 | (1,180) | 0 | 0 |
Restricted stock vested (in shares) | 1,180,392 | |||
Net income (loss) | $ 0 | 0 | (253,411,828) | (253,411,828) |
Balance at Dec. 31, 2020 | $ 85,568 | $ 550,951,415 | $ (256,271,170) | $ 294,765,813 |
Balance (in shares) at Dec. 31, 2020 | 85,568,287 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ (253,411,828) | $ 29,496,551 | $ 8,999,760 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 43,010,660 | 56,204,269 | 39,024,886 |
Ceiling test impairment | 277,501,943 | 0 | 14,172,309 |
Accretion expense | 906,616 | 943,707 | 606,459 |
Amortization of deferred financing costs | 1,190,109 | 991,310 | 0 |
Stock-based compensation | 5,364,162 | 3,082,625 | 3,870,934 |
Shares issued for services | 23,800 | 0 | 0 |
Deferred income tax expense | (3,975,170) | 9,500,517 | 2,537,837 |
Excess tax expense (benefit) related to stock-based compensation | (2,026,006) | 3,855,389 | 907,884 |
Adjustment to deferred tax asset for change in effective tax rate | 0 | 431,748 | 0 |
Change in fair value of derivative instruments | 1,156,523 | 3,000,078 | (3,968,286) |
Changes in assets and liabilities: | |||
Accounts receivable | 7,896,517 | (10,035,648) | 666,283 |
Prepaid expenses and retainers | 3,586,146 | (1,878,667) | (318,190) |
Accounts payable | (8,380,594) | 12,320,308 | 4,435,269 |
Settlement of asset retirement obligation | (683,623) | (1,295,966) | (577,824) |
Net Cash Provided by Operating Activities | 72,159,255 | 106,616,221 | 70,357,321 |
Cash Flows From Investing Activities | |||
Payments for the Wishbone Acquisition | 0 | (276,061,594) | 0 |
Payments to purchase oil and natural gas properties | (1,317,313) | (3,400,411) | (4,656,484) |
Proceeds from divestiture of oil and natural gas properties | 0 | 8,547,074 | 0 |
Payments to develop oil and natural gas properties | (42,457,745) | (152,125,320) | (198,870,366) |
Proceeds from disposal of fixed assets subject to depreciation | 0 | 0 | 105,536 |
Purchase of fixed assets subject to depreciation | (55,339) | 0 | 0 |
Net Cash Used in Investing Activities | (43,830,397) | (423,040,251) | (203,421,314) |
Cash Flows From Financing Activities | |||
Proceeds from revolving line of credit | 26,500,000 | 327,000,000 | 39,500,000 |
Payments on revolving line of credit | (80,000,000) | 0 | 0 |
Proceeds from issuance of common stock and warrants | 19,383,131 | 0 | 81,821,138 |
Proceeds from option exercise | 0 | 0 | 100,000 |
Payment of deferred financing costs | (355,049) | (3,781,657) | 0 |
Reduction of financing lease liabilities | (282,928) | (153,417) | 0 |
Net Cash Provided by (Used in) Financing Activities | (34,754,846) | 323,064,926 | 121,421,138 |
Net Increase (Decrease) in Cash | (6,425,988) | 6,640,896 | (11,642,855) |
Cash at Beginning of Period | 10,004,622 | 3,363,726 | 3,363,726 |
Cash at End of Period | 3,578,634 | 10,004,622 | 3,363,726 |
Supplemental Cash Flow Information | |||
Cash paid for interest | 16,911,344 | 10,364,313 | 323,916 |
Noncash Investing and Financing Activities | |||
Asset retirement obligation incurred during development | 99,436 | 631,727 | 1,311,956 |
Asset retirement obligation acquired | 0 | 39,701 | 2,571,549 |
Asset retirement obligation revision of estimate | 34,441 | 87,960 | |
Operating lease assets obtained in exchange for new operating lease liability | 823,727 | 2,319,185 | 0 |
Financing lease assets obtained in exchange for new financing lease liability | 0 | 858,513 | 0 |
Prepaid asset settled in divestiture of oil and natural gas properties | 0 | 1,019,876 | 0 |
Oil and gas assets and properties acquired through stock issuance | 0 | 0 | 11,204,258 |
Capitalized expenditures attributable to drilling projects financed through current liabilities | 1,415,073 | 15,170,000 | 26,000,000 |
Supplemental Schedule of Investing Activities Wishbone Acquisition | |||
Assumption of joint interest billing receivable | 0 | 1,464,394 | 0 |
Assumption of prepaid assets | 0 | 2,864,554 | 0 |
Assumption of accounts and revenue payables | 0 | (1,234,861) | 0 |
Asset retirement obligation incurred through acquisition | 0 | (3,705,941) | 0 |
Common stock issued as partial consideration in acquisition | 0 | (28,331,327) | 0 |
Oil and gas properties subject to amortization | 0 | 305,004,775 | 0 |
Cash paid | $ 0 | $ 276,061,594 | $ 0 |
ORGANIZATION, BASIS OF PRESENTA
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations – Use of Estimates Fair Value Measurements Fair Values of Financial Instruments Fair Value of Non-financial Assets and Liabilities Concentration of Credit Risk and Accounts Receivable Substantially all of the Company’s accounts receivable is from purchasers of oil and natural gas. Oil and natural gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Accordingly, no allowance for doubtful accounts has been provided as of December 31, 2020 and 2019. Cash and Cash Equivalents Oil and Natural Gas Properties The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter this liability is accreted up to the final retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. All capitalized costs of oil and natural gas properties, including the estimated future costs to develop proved reserves and estimated future costs to plug and abandon wells and costs of site restoration, less the estimated salvage value of equipment associated with the oil and natural gas properties, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent petroleum engineers. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is offset to the capitalized costs to be amortized. The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2020, 2019 and 2018. For the Years Ended December 31, 2020 2019 2018 Depletion $ 42,634,294 $ 55,870,246 $ 38,810,864 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 13.25 $ 14.15 $ 17.38 In addition, capitalized costs less accumulated depreciation, depletion and amortization and related deferred income taxes shall not exceed an amount (the full cost ceiling) equal to the sum of: 1) the present value of estimated future net revenues discounted ten percent computed in compliance with SEC guidelines; 2) plus the cost of properties not being amortized; 3) plus the lower of cost or estimated fair value of unproven properties included in the costs being amortized; 4) less income tax effects related to differences between the book and tax basis of the properties. For the years ended December 31, 2020 and 2018, the Company recognized impairments on oil and natural gas properties as a result of the ceiling test in the amount of $277,501,943 and $14,172,309, respectively. No impairment was recorded for the year ended December 31, 2019. Land, Buildings, Equipment and Leasehold Improvements Depreciation of buildings equipment , software and leasehold improvements is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3‑10 years Office equipment and software 3‑7 years Equipment 5‑10 years Depreciation expense was $376,366, $334,023 and $214,022 for the years ended December 31, 2020, 2019 and 2018, respectively. Revenue Recognition Revenues from Contracts with Customers (Topic 606) Income Taxes In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. For the year ended December 31, 2020, the Company recorded a full valuation allowance against the deferred tax asset of $50,553,125. The Company was in a deferred tax asset position as a result of the ceiling test impairment recorded during 2020. No valuation allowance was recorded for the years ended December 31, 2019 or 2018. Accounting for Uncertainty in Income Taxes Earnings (Loss) Per Share Major Customers Stock-Based Employee and Non-Employee Compensation Stock-based compensation incurred for the years ended December 31, 2020, 2019 and 2018 was $5,364,162, $3,082,625 and $3,870,934, respectively. Derivative Instruments and Hedging Activities When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. Recently Adopted Accounting Pronouncements Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). Recent Accounting Pronouncements |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 2 – REVENUE RECOGNITION Oil sales Under the Company’s oil sales contracts, the Company sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received. Natural gas sales Under the Company’s natural gas sales processing contracts for our Central Basin Platform properties, Delaware Basin properties and part of our Northwest Shelf assets, the Company delivers unprocessed natural gas to a midstream processing entity at the wellhead. The midstream processing entity obtains control of the natural gas at the wellhead. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of natural gas. Under these processing agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery. As such, the Company accounts for any fees and deductions as a reduction of the transaction price. Under the Company natural gas sales processing contracts for the bulk of our Northwest Shelf assets, the Company delivers unprocessed natural gas to a midstream processing entity at the well head. However, the Company maintains ownership of the gas through processing and receives proceeds from the marketing of the resulting products. Under this processing agreement, the Company recognizes the fees associated with the processing as an expense rather than netting these costs against revenue. Disaggregation of Revenue. For the years ended December 31, 2020 2019 2018 Operating revenues Oil $ 109,113,557 $ 191,891,314 $ 116,678,375 Natural gas 3,911,581 3,811,517 3,386,986 Total operating revenues $ 113,025,138 $ 195,702,831 $ 120,065,361 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | NOTE 3 – LEASES Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). This guidance attempts to increase transparency and comparability among organizations by recognizing certain lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP methodology and the method in this new guidance is the recognition on the balance sheet of certain lease assets and lease liabilities by lessees for those leases that were classified as operating leases under previous GAAP. The Company made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. The Company has also elected to adopt the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases and the practical expedient regarding land easements that exist prior to the adoption of ASU 2016-02. The Company did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. The Company has operating leases for our offices in Midland, Texas and Tulsa, Oklahoma. The Midland office is under a five-year lease beginning January 1, 2021. The Tulsa lease is month-to-month but the Company does not intend to continue use of this office. As of December 31, 2019, the Company did intend to continue use of the Tulsa office and, as such, the lease costs associated with the Tulsa lease has been accounted for as operating leases with a term that end on December 31, 2020. However, it is not reflected in future lease payments as it is now a short-term lease. The office space being leased in Tulsa is owned by Arenaco, LLC, a company that is owned by Mr. Rochford, former Chairman of the Board of the Company, and Mr. McCabe, a former Director of the Company. Subsequent to December 31, 2020, the Company entered into a lease for office space in The Woodlands, Texas. The future payments associated with this lease are not reflected below. The Company also has month to month leases for office equipment and compressors used in our operations on which the Company has elected to apply ASU 2016-02. While these leases are month to month, the Company intends to continue these leases for the useful life of the assets. As such, these leases have been accounted for as if the lease term lasts through the estimated useful life of the assets. The Company also has month to month leases or other short-term leases for equipment used in our operations on which the Company has made accounting policy elections not to capitalize these leases. These leases are for terms that are less than 12 months and the Company does not intend to continue to lease this equipment for more than 12 months. The lease costs associated with these leases is reflected in the short-term lease costs below. The Company also has financing leases for vehicles. These leases have a term of 36 months at the end of which the Company owns the vehicles. These vehicles are generally sold at the end of their term and the proceeds applied to a new vehicle Future lease payments associated with these operating and financing leases as of December 31, 2020 are as follows: 2021 2022 2023 2024 2025 Operating lease payments (1) $ 909,035 $ 186,127 $ 178,377 $ 164,527 $ 164,527 Financing lease payments (2) 311,206 132,499 — — — (1) The weighted average discount rate as of December 31, 2020 for operating leases was 4.50% . Based on this rate, the future lease payments above include imputed interest of $108,195 . The weighted average remaining term of operating leases was 3.0 years. (2) The weighted average discount rate as of December 31, 2020 for financing leases was 5.26% . Based on this rate, the future lease payments above include imputed interest of $21,538 . The weighted average remaining term of financing leases was 1.42 years. The following table provides supplemental information regarding cash flows from operations: 2020 Operating lease costs $ 1,196,373 Short term lease costs (1) 5,337,433 Financing lease costs: Amortization of financing lease assets (2) 287,413 Interest on lease liabilities (3) 30,237 (1) Amount included in Oil and gas production costs (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense |
EARNINGS (LOSS) PER SHARE INFOR
EARNINGS (LOSS) PER SHARE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE INFORMATION | |
EARNINGS (LOSS) PER SHARE INFORMATION | NOTE 4 – EARNINGS (LOSS) PER SHARE INFORMATION For the years ended December 31, 2020 2019 2018 Net Income (Loss) $ (253,411,828) $ 29,496,551 $ 8,999,760 Basic Weighted-Average Shares Outstanding 72,891,310 66,571,738 59,531,200 Effect of dilutive securities: Stock options — 174,944 1,238,786 Restricted stock — 10,346 78,191 Common warrants — — — Diluted Weighted-Average Shares Outstanding 72,891,310 66,757,028 60,848,177 Basic Earnings (Loss) per Share $ 3.48 $ 0.44 $ 0.15 Diluted Earnings (Loss) per Share $ 3.48 $ 0.44 $ 0.15 Stock options to purchase 465,500, 2,353,500 and 574,500 shares of common stock were excluded from the computation of diluted earnings per share during the years ended December 31, 2020, 2019 and 2018, respectively, as their effect would have been anti-dilutive. 2,144,617, 704,684 and 2,500 shares of unvested restricted stock were excluded from the computation of diluted earnings per share during the years ended December 31, 2020, 2019 and 2018, respectively, as their effect would have been anti-dilutive. Common warrants to purchase 29,804,300 shares of common stock were excluded from the computation of diluted earnings per share during the year ended December 31, 2020, as their effect would have been anti-dilutive. Pre-funded warrants to purchase 13,428,500 shares of common stock were included in the calculation of the Basic Weighted-Average Shares Outstanding as they are exercisable for a nominal amount and so are treated as if they were exercised at issuance. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 5 – ACQUISITIONS In December 2018, Ring completed the acquisition of oil and natural gas assets and properties in assets in Andrews County. The acquired properties consist of 4,854 gross (4,788 net) acres and include a 100% working interest and a 75% net revenue interest. Consideration given by the Company consisted of 2,623,948 shares valued at $5.80 per share for an aggregate value of $11,204,258 and liabilities assumed of $2,571,549. The Company incurred approximately $23,321 in acquisition related costs, which were recognized in general and administrative expense during the year ended December 31, 2018. The acquisition was recognized as a business combination whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of November 1, 2018, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. The estimated fair value of the acquired properties approximated the consideration paid, which the Company concluded approximated the fair value that would be paid by a typical market participant. The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired Proved oil and natural gas properties $ 13,775,807 Liabilities assumed Asset retirement obligations (2,571,549) Total Identifiable Net Assets $ 11,204,258 On April 9, 2019, the Company completed the acquisition of oil and gas properties from Wishbone Energy Partners, LLC, Wishbone Texas Operating Company LLC and WB WaterWorks LLC on the Northwest Shelf in Gaines, Yoakum, Runnels and Coke Counties, Texas and Lea County, New Mexico (the “Acquisition”). The acquired properties consist of 49,754 gross ( 38,230 net) acres and include a 77% average working interest and a 58% average net revenue interest. Ring executed the Acquisition for the existing production and future development potential. The Company incurred approximately $4.1 million in acquisition related costs, which were recognized in general and administrative expense. Total consideration after purchase price adjustments included cash payments totaling approximately $276.1 million and the issuance of 4,576,951 shares of common stock, of which 2,538,071 shares were placed in escrow to satisfy potential indemnification claims. One half of the shares placed into escrow remain in escrow as of December 31, 2019. The range of potential outcomes regarding the indemnification escrow shares cannot be determined as the Company evaluates whether there are any claims against the indemnification. If no claims are made, the remaining escrow shares will be released pursuant to the terms of the Purchase and Sale Agreement. The shares were valued at the price on the date of the signing of the Purchase and Sale Agreement, February 25, 2019, of $6.19 per share. The Acquisition was recognized as a business combination whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of February 1, 2019, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. The Company determined that it had effective control of the properties effective February 1, 2019 based on Ring having primary decision making ability regarding the properties beginning at that time. Revenues and related expenses for the Acquisition are included in our condensed statements of operations beginning February 1, 2019. The estimated fair value of the acquired properties approximated the consideration paid, which the Company concluded approximated the fair value that would be paid by a typical market participant. The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired: Proved oil and natural gas properties $ 305,004,775 Joint interest billing receivable 1,464,394 Prepaid assets 2,864,554 Liabilities assumed Accounts and revenues payable (1,234,861) Asset retirement obligations (3,705,941) Total Identifiable Net Assets $ 304,392,921 The revenues and direct operating costs associated with the acquired properties included in our financial statements for the year ended December 31, 2019 are as follows: Revenue $ 105,102,038 Oil and natural gas production costs 17,037,228 Oil and natural gas production taxes 4,646,660 Total direct costs (1) 21,683,888 Earnings from the Acquired properties $ 83,418,150 (1) This includes only oil and natural gas production costs and oil and natural gas production taxes and does not give account to depreciation, depletion and amortization, accretion of asset retirement obligation, general and administrative expense, interest expense or any other cost that cannot be directly correlated to the Acquisition. The following unaudited pro forma information for the years ended December 30, 2019 and 2018, respectively, is presented to reflect the operations of the Company as if the acquisition of assets had been completed on January 1, 2019 and 2018, respectively: For the years ended December 31, 2019 2018 Oil and Natural Gas Revenues $ 202,368,245 $ 196,385,905 Net Income $ 29,556,993 $ 29,105,827 Basic Earnings per Share $ 0.44 $ 0.49 Diluted Earnings per Share $ 0.44 $ 0.48 |
DEPOSIT FORFEITURE INCOME
DEPOSIT FORFEITURE INCOME | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSIT FORFEITURE INCOME | |
DEPOSIT FORFEITURE INCOME | NOTE 6 – DEPOSIT FORFEITURE INCOME In the fourth quarter of 2020, the Company entered into an agreement with an intended buyer to sell the Company’s Delaware assets. The agreement was amended on six different occasions throughout 2020 releasing the initial deposits to the Company and requiring additional non-refundable deposits. In total, $5,500,000 in non-refundable deposits were made to the Company. In October 2020, the agreement was terminated as the buyer was not able to consummate the transaction. As such, the Company recognized the $5,500,000 as income in our Statements of Operations as no divestiture of assets had occurred. |
OIL AND NATURAL GAS PRODUCING A
OIL AND NATURAL GAS PRODUCING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
OIL AND NATURAL GAS PRODUCING ACTIVITIES | |
OIL AND NATURAL GAS PRODUCING ACTIVITIES | NOTE 7 – OIL AND NATURAL GAS PRODUCING ACTIVITIES Set forth below is certain information regarding the aggregate capitalized costs of oil and natural gas properties and costs incurred by the Company for its oil and natural gas property acquisitions, development and exploration activities: As of December 31, 2020 2019 Proved oil and natural gas properties $ 836,514,815 $ 1,083,966,135 Financing lease asset subject to depreciation 858,513 858,513 Fixed assets subject to depreciation 1,520,890 1,465,551 Total capitalized costs 838,894,218 1,086,290,199 Accumulated depletion, depreciation and amortization (200,111,658) (157,074,044) Net Capitalized Costs $ 638,782,560 $ 929,216,155 Net Costs Incurred in Oil and Gas Producing Activities For the years Ended December 31, 2020 2019 Payments for the Wishbone Acquisition $ — $ 276,061,594 Payments to purchase oil and natural gas properties 1,317,313 3,400,411 Proceeds from divestiture of oil and natural gas properties — (8,547,074) Payments to develop oil and natural gas properties 42,457,745 152,125,320 Payments to acquire or improve fixed assets subject to depreciation 55,339 — Total Net Costs Incurred $ 43,830,397 $ 423,040,251 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 8 – DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to fluctuations in crude oil and natural gas prices on its production. We can utilize derivative strategies that consist of either a single derivative instrument or a combination of instruments to manage the variability in cash flows associated with the forecasted sale of our future domestic oil and natural gas production. While the use of derivative instruments may limit or partially reduce the downside risk of adverse commodity price movements, their use also may limit future income from favorable commodity price movements. From time to time the Company enters into derivative contracts to protect the Company’s cash flow from price fluctuation and maintain its capital programs. The Company uses either costless collars or swaps for this purpose. Oil derivative contracts are based on WTI Crude Oil prices and natural gas contacts are based on Henry Hub. A “costless collar” is the combination of two options, a put option (floor) and call option (ceiling) with the options structured so that the premium paid for the put option will be offset by the premium received from selling the call option. Similar to costless collars, there is no cost to enter into the swap contracts. On swap contracts, there is no spread and payments will be made or received based on the difference between WTI and the swap contract price. The following table provides information as to derivative contracts for WTI that were in place during the years ended December 31, 2020, 2019 and 2018. The Company did not have any natural gas derivative contracts during these years. Barrels per Date entered into Period covered day Put price Call price Swap price 2018 costless collars 09/25/17 Calendar year 2018 1,000 $ 49.00 $ 54.60 10/27/17 Calendar year 2018 1,000 51.00 54.80 2019 costless collars 8/27/2018 (1) Calendar year 2019 2,000 60.00 70.05 2020 costless collars 04/01/19 Calendar year 2020 (2) 1,000 50.00 65.83 04/01/19 Calendar year 2020 (2) 1,000 50.00 65.40 11/05/19 Calendar year 2020 (2) 1,000 50.00 58.40 11/07/19 Calendar year 2020 (2) 1,000 50.00 58.25 11/11/19 Calendar year 2020 (2) 1,500 50.00 58.65 2020 swaps 05/29/20 June 2020 and July 2020 (2) 5,500 $ 33.24 (1) On October 10, 2018, the Company terminated the costless collars for calendar year 2019 through the payment of $3,438,300. (2) On May 29, 2020, the Company unwound the costless collars for June 2020 and July 2020, resulting in the receipt of a cash payment of $5,435,136. Concurrently, the Company entered into swap contracts at $33.24 for 5,500 barrels per day for June and July 2020, equal to the barrels for which the costless collars were unwound. Throughout 2020, the Company entered into additional derivative contracts in the form of costless collars and swaps for 2021 and 2022 for both oil and natural gas. The following tables reflect the details of those contracts: Barrels per Date entered into Period covered day Put price Call price Swap price Oil derivative contracts 2021 costless collars 02/25/20 Calendar year 2021 1,000 $ 45.00 $ 54.75 02/25/20 Calendar year 2021 1,000 45.00 52.71 02/27/20 Calendar year 2021 1,000 40.00 55.08 03/02/20 Calendar year 2021 1,500 40.00 55.35 2021 swaps 11/25/20 Calendar year 2021 2,000 $ 45.37 12/02/20 Calendar year 2021 500 45.38 12/03/20 Calendar year 2021 500 45.00 12/04/20 Calendar year 2021 500 45.40 12/04/20 Calendar year 2021 500 45.60 12/07/20 Calendar year 2021 500 45.96 2022 swaps 12/04/20 Calendar year 2022 500 44.22 12/07/20 Calendar year 2022 500 44.75 12/10/20 Calendar year 2022 500 44.97 12/17/20 Calendar year 2022 250 45.98 Date entered into Period covered MMBTU per day Swap price Natural gas derivative contracts 2021 swaps 11/04/20 Calendar year 2021 6,000 $ 2.991 2022 swaps 11/04/20 Calendar year 2022 5,000 2.7255 Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying balance sheets. Any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of other income in the accompanying statements of operations. The use of derivative transactions involves the risk that the counterparties, which generally are financial institutions, will be unable to meet the financial terms of such transactions. All previous derivative contracts have been with lenders under our credit facility. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9 – FAIR VALUE MEASUREMENTS 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). The authoritative guidance requires disclosure of the framework for measuring fair value and requires that fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy. We continue to evaluate our inputs to ensure the fair value level classification is appropriate. When transfers between levels occur, it is our policy to assume that the transfer occurred at the date of the event or change in circumstances that caused the transfer. As a result of the Wishbone Acquisition, the Company evaluated the fair value of the assets acquired and the liabilities assumed. The Company recorded the oil and gas assets acquired in the Wishbone Acquisition at the price paid. Prior to doing so, the Company determined that the price paid approximated the fair value of the net assets acquired. In doing so, the Company compared the price paid per BOE of existing production to comparable companies enterprise value per BOE of existing production. Additionally, the Company did an evaluation of the reserves acquired, based on varying percentages of the present value discounted at 10 percent (PV-10) of the different categories (PDP, PDNP and PUD) of the reserves. Based on these evaluations, we determined that the price paid was a reasonable approximation of the fair value of the oil and gas assets acquired. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy. The Company recorded the prepaid expenses, joint interest billing receivables and revenues payable at the carrying value assumed from Wishbone. The carrying amounts of receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. The fair values of the Company’s derivatives are not actively quoted in the open market. The Company uses a market approach to estimate the fair values of its derivative instruments on a recurring basis, utilizing commodity futures pricing for the underlying commodities provided by a reputable third party, a Level 2 fair value measurement. The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis. Fair Value Measurement Classification Quoted prices in Active Markets for Identical Assets Significant Other Significant or (Liabilities) Observable Inputs Unobservable (Level 1) (Level 2) Inputs (Level 3) Total As of December 31, 2018 Oil and gas derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — As of December 31, 2019 Oil and gas derivative contracts $ — $ (3,000,078) $ — $ (3,000,078) Total $ — $ (3,000,078) $ — $ (3,000,078) As of December 31, 2020 Oil and gas derivative contracts $ — $ (4,156,601) $ — $ (4,156,601) Total $ — $ (4,156,601) $ — $ (4,156,601) |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2020 | |
REVOLVING LINE OF CREDIT | |
REVOLVING LINE OF CREDIT | NOTE 10 – REVOLVING LINE OF CREDIT On July 1, 2014, the Company entered into a Credit Agreement with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders (the “Administrative Agent”), which was amended on April June 14, 2018, May 18, 2016, July 24, 2015, and June 26, 2015. In April 2019, the Company amended and restated its Credit Agreement with the Administrative Agent (as amended and restated, the “Credit Facility”). The amendment and restatement of the Credit Facility, among other things, increases the maximum borrowing amount to $1 billion, extends the maturity date through April 2024 and makes other modifications to the terms of the Credit Facility. This Credit Facility was amended on December 23, 2020 and June 17,2020. The latest amendment adjusted the borrowing base to $350 million and made other modifications to the terms of the Credit Facility. The Credit Facility is secured by a first lien on substantially all of the Company’s assets. The Borrowing Base is subject to periodic redeterminations, mandatory reductions and further adjustments from time to time. The Borrowing Base will be redetermined semi-annually on each May 1 and November 1. The Borrowing Base will also be reduced in certain circumstances such as the sale or disposition of certain oil and gas properties of the Company or its subsidiaries and cancellation of certain hedging positions. The Credit Facility allows for Eurodollar Loans and Base Rate Loans (as respectively defined in the Credit Facility). The interest rate on each Eurodollar Loan will be the adjusted LIBOR for the applicable interest period plus a margin between 2.5% and 3.5% (depending on the then-current level of Borrowing Base usage). The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the Federal Funds Rate (as defined in the Credit Facility) plus 0.5% per annum, (iii) the adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum and (iv) 0.00% per annum, plus (b) a margin between 1.5% and 2.5% (depending on the then-current level of Borrowing Base usage). The Credit Facility contains certain covenants, which, among other things, require the maintenance of (i) a total Leverage Ratio (outstanding debt to adjusted earnings before interest, taxes, depreciation and amortization) of not more than 4.0 to 1.0 and (ii) a minimum ratio of Current Assets to Current Liabilities (as such terms are defined in the Credit Facility) of 1.0 to 1.0. The amendment to the credit facility in June 2020 allowed for a Leverage Ratio of not greater than 4.75 to 1 as of the last day of the fiscal quarter ending September 30, 2020. The December 2020 amendment permitted a total Leverage Ratio not greater than 4.25 for the period ending March 31, 2021. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of December 31, 2020, $313,000,000 was outstanding on the Credit Facility. We are in compliance with all covenants contained in the Credit Facility. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2020 | |
ASSET RETIREMENT OBLIGATION | |
ASSET RETIREMENT OBLIGATION | NOTE 11 – ASSET RETIREMENT OBLIGATION A reconciliation of the asset retirement obligation for the years ended December 31, 2018, 2019 and 2020 is as follows: Balance, December 31, 2017 $ 9,055,697 Liabilities acquired $ 2,571,549 Liabilities incurred 1,311,956 Liabilities settled (577,824) Revision of estimate (1) 87,960 Accretion expense 606,459 Balance, December 31, 2018 $ 13,055,797 Liabilities acquired $ 3,745,642 Liabilities incurred 631,727 Liabilities settled (1,589,654) Accretion expense 943,707 Balance, December 31, 2019 $ 16,787,219 Liabilities incurred 99,436 Liabilities settled (710,577) Revision of estimate (1) 34,441 Accretion expense 906,616 Balance, December 31, 2020 $ 17,117,135 (1) Several factors are considered in the annual review process, including current estimates for removal cost and estimated remaining useful life of the assets. The 2018 revision of estimates reflect decreases in the estimated remaining useful life of certain assets. The 2020 revision of estimates reflect an adjustment to the estimates for plugging costs. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 12 – STOCKHOLDERS’ EQUITY The Company is authorized to issue 150,000,000 common shares, with a par value of $0.001 per share and 50,000,000 shares of Preferred Stock. Issuance of equity instruments in public and private offerings In October 2020, the Company closed on an underwritten public offering of (i) 9,575,800 Common Shares, (ii) 13,428,500 Pre-Funded Warrants and (iii) 23,004,300 Common Warrants at a combined purchase price of $0.70. This includes a partial exercise of the over-allotment. The Common Warrants have a term of five years and an exercise price of $0.80 per share. Gross proceeds totaled $16,089,582. Concurrently with the underwritten public offering, the Company closed on a registered direct offering of (i) 3,500,000 Common Shares, (ii) 3,300,000 Pre-Funded Warrants and (iii) 6,800,000 Common Warrants at a combined purchase price of $0.70 per Common Share and Pre-Funded Warrant. The Common Warrants have a term of five years and an exercise price of $0.80 per share. Gross proceeds totaled $4,756,700. Total gross proceeds from the 2020 underwritten public offering and the registered direct Common stock issued pursuant to warrant exercise - Common stock issued in property acquisition – Also as discussed in Note 5, in April 2019, the Company completed the acquisition of assets from Wishbone Partners, LLC. As a part of the consideration for the acquisition, the Company issued 4,576,951 shares of common stock. The shares were valued at February 25, 2019, the date of the signing of the Purchase and Sale Agreement. The price on February 25, 2019 was $6.19 per share. The aggregate value of the shares issued, based on this price, was $28,331,327. In April 2020, 16,702 shares were returned and cancelled as settlement of post-closing adjustments. The shares were valued at February 25, 2019, the date of the signing of the Purchase and Sale Agreement. The price on February 25, 2019 was $6.19 per share. The aggregate value of the shares returned, based on this price, was $103,385. Common Stock Issued for option exercises Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2018 110,000 $ 2.00 90,375 19,625 $ — $ 11.21 $ 220,000 50,000 2.00 50,000 — 100,000 8.00 — 25,000 7.50 9,829 15,171 — 12.36 $ 187,500 3,000 8.00 1,059 1,941 — 12.36 $ 24,000 3,000 5.25 1,750 1,250 — 12.36 $ 15,750 2,000 11.75 100 1,900 — 12.36 $ 23,500 2018 Totals 193,000 153,113 39,887 $ 100,000 $ 470,750 2018 Weighted Averages $ 2.96 $ 10.58 |
EMPLOYEE STOCK OPTIONS, RESTRIC
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | |
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | NOTE 13 – EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) In June 2020, officers and directors of the Company voluntarily returned stock options that had previously been granted to them. In total, 2,265,000 options with a weighted average exercise price of $6.87 per share were returned to and cancelled by the Company. No grants, cash payments or other consideration has been or will be made to replace the options or otherwise in connection with the return. As a result of the return and cancellation of the options, the Company incurred additional compensation expense of $768,379. During October and December 2020, as a result of changes to the executive team and the Board of Directors, the Company accelerated the vesting of 1,131,955 shares of restricted stock. As a result of the acceleration of these vestings, the Company incurred additional compensation expense of $2,361,362. Compensation expense charged against income for share-based awards during the years ended December 31, 2020, 2019 and 2018 was $5,364,162, $3,082,625 and $3,870,934, respectively. These amounts are included in general and administrative expense in the accompanying Statements of Operations. In 2011, the Company’s Board of Directors approved and adopted a long-term incentive plan, which was subsequently approved and amended by the shareholders. There were 341,155 shares eligible for grant, either as options or as restricted stock, as of December 31, 2020. Employee Stock Options A summary of the status of the stock options as of December 31, 2020, 2019 and 2018 and changes during the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Weighted- Weighted- Weighted- Average Average Average Options Exercise Price Options Exercise Price Options Exercise Price Outstanding at beginning of the year 2,748,500 $ 6.28 2,751,000 $ 6.28 3,193,000 $ 6.07 Issued — — — — — — Forfeited or rescinded (2,283,000) 6.89 (2,500) 11.70 (249,000) 6.09 Exercised — — — — (193,000) 2.96 Outstanding at end of year 465,500 $ 3.26 2,748,500 $ 6.28 2,751,000 $ 6.28 Exercisable at end of year 455,300 $ 3.11 2,506,700 $ 5.78 2,323,900 $ 5.42 For the years ended December 31, 2020, 2019 and 2018, the Company incurred stock-based compensation expense related to stock options of $927,559, $625,855 and $1,853,913, respectively. As of December 31, 2020, there was $14,988 of unrecognized compensation cost related to stock options that will be recognized over a weighted average period of 0.6 years. The aggregate intrinsic value of options vested and expected to vest as of December 31, 2020 was $0. The aggregate intrinsic value of options exercisable at December 31, 2020 was $0. The year-end intrinsic values are based on a December 31, 2020 closing price of $0.66. Options exercised of 193,000 in 2018 had an aggregate intrinsic value on the date of exercise of $1,470,230. No options were exercised in 2020 or 2019. The following table summarizes information related to the Company’s stock options outstanding as of December 31, 2020: Options Outstanding Weighted- Average Remaining Number Contractual Life Number Exercise price Outstanding (in years) Exercisable 2.00 395,000 2.92 395,000 5.50 5,000 2.20 5,000 14.54 10,000 3.73 10,000 8.00 4,500 3.92 4,500 6.42 15,000 5.34 12,000 11.75 36,000 5.95 28,800 465,500 3.25 455,300 Restricted stock grants # of shares of Grant date restricted stock April 4, 2018 2,000 September 27, 2018 2,500 December 26, 2018 615,380 April 9, 2019 10,400 May 30, 2019 5,000 July 9, 2019 5,000 September 13, 2019 10,000 December 21, 2019 627,205 October 1, 2020 900,000 October 26, 2020 150,000 December 15, 2020 930,000 Restricted stock grants prior to 2020 vest at the rate of 20% each year over five years beginning one year from the date granted. Restricted stock grants in 2020 vest at a rate of 33% each year over three years beginning one year from the date granted. A summary of the status of restricted stock grants as of December 31, 2020, 2019 and 2018 and changes during the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Weighted- Average Grant Weighted- Weighted- Date Fair Average Grant Average Grant Restricted stock Value Restricted stock Date Fair Value Restricted stock Date Fair Value Outstanding at beginning of the year 1,341,889 $ 4.99 878,360 $ 7.33 330,900 $ 13.44 Granted 1,980,000 0.71 657,605 2.63 619,880 4.78 Forfeited or rescinded (9,200) 3.97 (6,940) 4.23 (7,800) 13.44 Vested (1,180,392) 4.97 (187,136) 7.79 (64,620) 13.44 Outstanding at end of year 2,132,297 $ 2.94 1,341,889 $ 4.99 878,360 $ 7.33 For the years ended December 31, 2020, 2019 and 2018, the Company incurred stock-based compensation expense related to restricted stock grants of $4,436,603, $2,456,770 and $2,017,021, respectively. As of December 31, 2020, there was $1,520,839 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 1.5 years. During 2020, 2019 and 2018, 1,180,392, 187,136 and 64,620 shares of restricted stock vested, respectively. At the dates of vesting those shares had an aggregate intrinsic value of $801,133, $494,605 and $304,360, respectively. 401(k) Plan The following table presents the matching contributions expense recognized for the Company's 401(k) plan for the years ended December 31, 2020 and 2019. There were no matching contributions prior to 2019. 2020 2019 Employer safe harbor match 138,977 59,716 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 – RELATED PARTY TRANSACTIONS The Company is leasing office space from Arenaco, LLC, a company that is owned by two stockholders’ of the Company, Mr. Rochford, former Chairman of the Board of the Company, and Mr. McCabe |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 15 – COMMITMENTS AND CONTINGENT LIABILITIES Standby Letters of Credit Surety Bonds |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | NOTE 16 – INCOME TAXES For the years ended December 31, 2020, 2019 and 2018, components of our provision for income taxes are as follows: Provision for (Benefit from) Income Taxes 2020 2019 2018 Deferred taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 Provision for (Benefit from) Income Taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes: Rate Reconciliation 2020 2019 2018 Tax at federal statutory rate $ (54,476,731) $ 9,089,683 $ 2,613,551 Non-deductible expenses 956 2,399 3,197 Excess tax benefit from stock option exercises and restricted stock vesting (1,109,379) 4,055,418 828,973 Adjust prior estimates to tax return (4,754) 19 — States taxes, net of Federal benefit (964,393) 160,913 — Adjustment for change in future effective tax rate (1) — 479,222 — Valuation allowance (2) 50,553,125 — — Provision for Income Taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 (1) The acquisition of the Northwest Shelf assets from Wishbone included properties in the State of New Mexico. The tax rates associated with the State of New Mexico adjusted our overall tax rate from 21% to 21.29% . This resulted in an additional tax expense during the year ended December 31, 2019 of $479,222 . (2) As a result of the ceiling test impairments recorded in 2020, a benefit from income tax provision was recorded resulting in a deferred tax asset. The Company recorded a full valuation allowance against the deferred tax asset of $50,553,125 . The net deferred taxes consisted of the following as of December 31, 2020 and 2019: Deferred Taxes: 2020 2019 Deferred tax liabilities Property and equipment $ 5,357,255 $ 56,325,029 Deferred tax assets Stock-based compensation 2,248,272 269,264 Operating loss and IDC carryforwards 3,108,983 50,054,589 Deferred tax assets 5,357,255 50,323,853 Net deferred income tax liability $ — $ 6,001,176 As of December 31, 2020, the Company had net operating loss carry forwards for federal income tax reporting purposes of approximately $107.4 million which, if unused, will begin to expire in 2027 and fully expire in 2038 and an additional $150.2 million that will not expire. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 17 – QUARTERLY FINANCIAL DATA (UNAUDITED) 2018 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 29,891,391 $ 29,924,883 $ 32,687,179 $ 27,561,908 Operating Income (Loss) 10,935,120 9,397,559 9,615,030 (9,986,770) Net Income (Loss) 5,665,634 4,719,806 5,693,628 (7,079,308) Basic Net Income (Loss) Per Share $ 0.10 $ 0.08 $ 0.09 $ (0.12) Diluted Net Income (Loss) Per Share 0.10 0.08 0.09 $ (0.12) 2019 Three Months Ended March 31 June 30 September 30 December 31 (restated) (restated) (restated) Revenues $ 41,798,315 $ 51,334,225 $ 50,339,105 $ 52,231,186 Operating Income 10,235,485 17,636,415 14,342,410 17,922,018 Net Income 4,269,260 11,342,597 8,858,000 5,026,692 Basic Net Income Per Share $ 0.07 $ 0.17 $ 0.13 $ 0.08 Diluted Net Income Per Share 0.07 0.17 0.13 $ 0.08 2020 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 39,570,328 $ 10,636,593 $ 31,466,544 $ 31,351,673 Operating Income (Loss) 10,081,718 (156,845,697) 6,511,161 (128,408,648) Net Income (Loss) 43,804,118 (135,000,066) (1,961,603) (160,254,277) Basic Net Income (Loss) Per Share $ 0.64 $ (1.99) $ (0.03) $ (1.83) Diluted Net Income (Loss) Per Share 0.64 (1.99) (0.03) (1.83) |
LEGAL MATTERS
LEGAL MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Legal Matters | |
LEGAL MATTERS | NOTE 18 – LEGAL MATTERS In the ordinary course of business, we may be, from time to time, a claimant or a defendant in various legal proceedings. We do not presently have any material litigation pending or threatened requiring disclosure under this item. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS The Company entered into a Sublease Agreement dated January 15, 2021, covering approximately 15,728 square feet at 1725 Hughes Landing Blvd, Suite 900, The Woodlands, TX 77380. The sublease term will run until July 31, 2026. The Company entered into a Purchase, Sale and Exchange Agreement dated February 1, 2021, effective January 1, 2021, with Vin Fisher Operating, Inc. covering the sale and exchange of certain oil and gas interests in Andrews County, Texas. After the sale and transfer of wells and leases between the two parties, the Company also received cash consideration of $2,000,000. The deal greatly reduces the Company’s plug and abandonment obligation costs and also allows the Company to acquire new leasehold for the future drilling of additional horizontal wells. Subsequent to December 31, 2020, the remaining 13,428,500 Pre-Funded warrants and 184,800 of the Common Warrants issued in the October 2020 offering were exercised. Gross proceeds were $161,269. |
ORGANIZATION, BASIS OF PRESEN_2
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization and Nature of Operations | Organization and Nature of Operations – |
Use of Estimates | Use of Estimates |
Fair Value Measurements | Fair Value Measurements |
Fair Value of Financial Instruments | Fair Values of Financial Instruments |
Fair Value of Non-financial Assets and Liabilities | Fair Value of Non-financial Assets and Liabilities |
Concentration of Credit Risk and Accounts Receivable | Concentration of Credit Risk and Accounts Receivable Substantially all of the Company’s accounts receivable is from purchasers of oil and natural gas. Oil and natural gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Accordingly, no allowance for doubtful accounts has been provided as of December 31, 2020 and 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Oil and Natural Gas Properties | Oil and Natural Gas Properties The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter this liability is accreted up to the final retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. All capitalized costs of oil and natural gas properties, including the estimated future costs to develop proved reserves and estimated future costs to plug and abandon wells and costs of site restoration, less the estimated salvage value of equipment associated with the oil and natural gas properties, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent petroleum engineers. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is offset to the capitalized costs to be amortized. The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2020, 2019 and 2018. For the Years Ended December 31, 2020 2019 2018 Depletion $ 42,634,294 $ 55,870,246 $ 38,810,864 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 13.25 $ 14.15 $ 17.38 In addition, capitalized costs less accumulated depreciation, depletion and amortization and related deferred income taxes shall not exceed an amount (the full cost ceiling) equal to the sum of: 1) the present value of estimated future net revenues discounted ten percent computed in compliance with SEC guidelines; 2) plus the cost of properties not being amortized; 3) plus the lower of cost or estimated fair value of unproven properties included in the costs being amortized; 4) less income tax effects related to differences between the book and tax basis of the properties. For the years ended December 31, 2020 and 2018, the Company recognized impairments on oil and natural gas properties as a result of the ceiling test in the amount of $277,501,943 and $14,172,309, respectively. No impairment was recorded for the year ended December 31, 2019. |
Land, Buildings, Equipment and Leasehold Improvements | Land, Buildings, Equipment and Leasehold Improvements Depreciation of buildings equipment , software and leasehold improvements is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3‑10 years Office equipment and software 3‑7 years Equipment 5‑10 years Depreciation expense was $376,366, $334,023 and $214,022 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Revenue Recognition | Revenue Recognition Revenues from Contracts with Customers (Topic 606) |
Income Taxes | Income Taxes In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. For the year ended December 31, 2020, the Company recorded a full valuation allowance against the deferred tax asset of $50,553,125. The Company was in a deferred tax asset position as a result of the ceiling test impairment recorded during 2020. No valuation allowance was recorded for the years ended December 31, 2019 or 2018. |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes |
Earnings (Loss) Per Share | Earnings (Loss) Per Share |
Major Customers | Major Customers |
Stock-Based Employee and Non-Employee Compensation | Stock-Based Employee and Non-Employee Compensation Stock-based compensation incurred for the years ended December 31, 2020, 2019 and 2018 was $5,364,162, $3,082,625 and $3,870,934, respectively. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). |
ORGANIZATION, BASIS OF PRESEN_3
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of total depletion and depletion per barrel-of-oil-equivalent rate | For the Years Ended December 31, 2020 2019 2018 Depletion $ 42,634,294 $ 55,870,246 $ 38,810,864 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 13.25 $ 14.15 $ 17.38 |
Schedule Of Property Plant And Equipment Estimated Useful Lives | Depreciation of buildings equipment , software and leasehold improvements is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3‑10 years Office equipment and software 3‑7 years Equipment 5‑10 years |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE RECOGNITION | |
Schedule of disaggregation of revenue | For the years ended December 31, 2020 2019 2018 Operating revenues Oil $ 109,113,557 $ 191,891,314 $ 116,678,375 Natural gas 3,911,581 3,811,517 3,386,986 Total operating revenues $ 113,025,138 $ 195,702,831 $ 120,065,361 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Schedule of future lease payments of operating lease and finance lease | 2021 2022 2023 2024 2025 Operating lease payments (1) $ 909,035 $ 186,127 $ 178,377 $ 164,527 $ 164,527 Financing lease payments (2) 311,206 132,499 — — — (1) The weighted average discount rate as of December 31, 2020 for operating leases was 4.50% . Based on this rate, the future lease payments above include imputed interest of $108,195 . The weighted average remaining term of operating leases was 3.0 years. (2) The weighted average discount rate as of December 31, 2020 for financing leases was 5.26% . Based on this rate, the future lease payments above include imputed interest of $21,538 . The weighted average remaining term of financing leases was 1.42 years. |
Schedule of lease cost | 2020 Operating lease costs $ 1,196,373 Short term lease costs (1) 5,337,433 Financing lease costs: Amortization of financing lease assets (2) 287,413 Interest on lease liabilities (3) 30,237 (1) Amount included in Oil and gas production costs (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense |
EARNINGS (LOSS) PER SHARE INF_2
EARNINGS (LOSS) PER SHARE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE INFORMATION | |
Schedule of earnings per share, Basic and Diluted | For the years ended December 31, 2020 2019 2018 Net Income (Loss) $ (253,411,828) $ 29,496,551 $ 8,999,760 Basic Weighted-Average Shares Outstanding 72,891,310 66,571,738 59,531,200 Effect of dilutive securities: Stock options — 174,944 1,238,786 Restricted stock — 10,346 78,191 Common warrants — — — Diluted Weighted-Average Shares Outstanding 72,891,310 66,757,028 60,848,177 Basic Earnings (Loss) per Share $ 3.48 $ 0.44 $ 0.15 Diluted Earnings (Loss) per Share $ 3.48 $ 0.44 $ 0.15 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
Schedule of revenues and direct operating costs associated with the acquired properties | The revenues and direct operating costs associated with the acquired properties included in our financial statements for the year ended December 31, 2019 are as follows: Revenue $ 105,102,038 Oil and natural gas production costs 17,037,228 Oil and natural gas production taxes 4,646,660 Total direct costs (1) 21,683,888 Earnings from the Acquired properties $ 83,418,150 (1) This includes only oil and natural gas production costs and oil and natural gas production taxes and does not give account to depreciation, depletion and amortization, accretion of asset retirement obligation, general and administrative expense, interest expense or any other cost that cannot be directly correlated to the Acquisition. |
Schedule of business acquisition pro forma information | For the years ended December 31, 2019 2018 Oil and Natural Gas Revenues $ 202,368,245 $ 196,385,905 Net Income $ 29,556,993 $ 29,105,827 Basic Earnings per Share $ 0.44 $ 0.49 Diluted Earnings per Share $ 0.44 $ 0.48 |
Oil and Natural Gas Assets in Andrews County | |
ACQUISITIONS | |
Schedule of fair values of the assets acquired and the liabilities assumed | Assets acquired Proved oil and natural gas properties $ 13,775,807 Liabilities assumed Asset retirement obligations (2,571,549) Total Identifiable Net Assets $ 11,204,258 |
Wishbone Acquisition | |
ACQUISITIONS | |
Schedule of fair values of the assets acquired and the liabilities assumed | Assets acquired: Proved oil and natural gas properties $ 305,004,775 Joint interest billing receivable 1,464,394 Prepaid assets 2,864,554 Liabilities assumed Accounts and revenues payable (1,234,861) Asset retirement obligations (3,705,941) Total Identifiable Net Assets $ 304,392,921 |
OIL AND NATURAL GAS PRODUCING_2
OIL AND NATURAL GAS PRODUCING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OIL AND NATURAL GAS PRODUCING ACTIVITIES | |
Schedule of capitalized costs relating to Oil and Natural Gas producing activities | As of December 31, 2020 2019 Proved oil and natural gas properties $ 836,514,815 $ 1,083,966,135 Financing lease asset subject to depreciation 858,513 858,513 Fixed assets subject to depreciation 1,520,890 1,465,551 Total capitalized costs 838,894,218 1,086,290,199 Accumulated depletion, depreciation and amortization (200,111,658) (157,074,044) Net Capitalized Costs $ 638,782,560 $ 929,216,155 |
Schedule of net costs incurred in Oil and Gas producing activities | Net Costs Incurred in Oil and Gas Producing Activities For the years Ended December 31, 2020 2019 Payments for the Wishbone Acquisition $ — $ 276,061,594 Payments to purchase oil and natural gas properties 1,317,313 3,400,411 Proceeds from divestiture of oil and natural gas properties — (8,547,074) Payments to develop oil and natural gas properties 42,457,745 152,125,320 Payments to acquire or improve fixed assets subject to depreciation 55,339 — Total Net Costs Incurred $ 43,830,397 $ 423,040,251 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of derivative contracts for WTI | The following table provides information as to derivative contracts for WTI that were in place during the years ended December 31, 2020, 2019 and 2018. The Company did not have any natural gas derivative contracts during these years. Barrels per Date entered into Period covered day Put price Call price Swap price 2018 costless collars 09/25/17 Calendar year 2018 1,000 $ 49.00 $ 54.60 10/27/17 Calendar year 2018 1,000 51.00 54.80 2019 costless collars 8/27/2018 (1) Calendar year 2019 2,000 60.00 70.05 2020 costless collars 04/01/19 Calendar year 2020 (2) 1,000 50.00 65.83 04/01/19 Calendar year 2020 (2) 1,000 50.00 65.40 11/05/19 Calendar year 2020 (2) 1,000 50.00 58.40 11/07/19 Calendar year 2020 (2) 1,000 50.00 58.25 11/11/19 Calendar year 2020 (2) 1,500 50.00 58.65 2020 swaps 05/29/20 June 2020 and July 2020 (2) 5,500 $ 33.24 (1) On October 10, 2018, the Company terminated the costless collars for calendar year 2019 through the payment of $3,438,300. (2) On May 29, 2020, the Company unwound the costless collars for June 2020 and July 2020, resulting in the receipt of a cash payment of $5,435,136. Concurrently, the Company entered into swap contracts at $33.24 for 5,500 barrels per day for June and July 2020, equal to the barrels for which the costless collars were unwound. |
Schedule of put and call prices of those contracts | Throughout 2020, the Company entered into additional derivative contracts in the form of costless collars and swaps for 2021 and 2022 for both oil and natural gas. The following tables reflect the details of those contracts: Barrels per Date entered into Period covered day Put price Call price Swap price Oil derivative contracts 2021 costless collars 02/25/20 Calendar year 2021 1,000 $ 45.00 $ 54.75 02/25/20 Calendar year 2021 1,000 45.00 52.71 02/27/20 Calendar year 2021 1,000 40.00 55.08 03/02/20 Calendar year 2021 1,500 40.00 55.35 2021 swaps 11/25/20 Calendar year 2021 2,000 $ 45.37 12/02/20 Calendar year 2021 500 45.38 12/03/20 Calendar year 2021 500 45.00 12/04/20 Calendar year 2021 500 45.40 12/04/20 Calendar year 2021 500 45.60 12/07/20 Calendar year 2021 500 45.96 2022 swaps 12/04/20 Calendar year 2022 500 44.22 12/07/20 Calendar year 2022 500 44.75 12/10/20 Calendar year 2022 500 44.97 12/17/20 Calendar year 2022 250 45.98 Date entered into Period covered MMBTU per day Swap price Natural gas derivative contracts 2021 swaps 11/04/20 Calendar year 2021 6,000 $ 2.991 2022 swaps 11/04/20 Calendar year 2022 5,000 2.7255 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of valuation of assets and liabilities that are measured at fair value on a recurring basis | The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis. Fair Value Measurement Classification Quoted prices in Active Markets for Identical Assets Significant Other Significant or (Liabilities) Observable Inputs Unobservable (Level 1) (Level 2) Inputs (Level 3) Total As of December 31, 2018 Oil and gas derivative contracts $ — $ — $ — $ — Total $ — $ — $ — $ — As of December 31, 2019 Oil and gas derivative contracts $ — $ (3,000,078) $ — $ (3,000,078) Total $ — $ (3,000,078) $ — $ (3,000,078) As of December 31, 2020 Oil and gas derivative contracts $ — $ (4,156,601) $ — $ (4,156,601) Total $ — $ (4,156,601) $ — $ (4,156,601) |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASSET RETIREMENT OBLIGATION | |
Schedule of asset retirement obligation | Balance, December 31, 2017 $ 9,055,697 Liabilities acquired $ 2,571,549 Liabilities incurred 1,311,956 Liabilities settled (577,824) Revision of estimate (1) 87,960 Accretion expense 606,459 Balance, December 31, 2018 $ 13,055,797 Liabilities acquired $ 3,745,642 Liabilities incurred 631,727 Liabilities settled (1,589,654) Accretion expense 943,707 Balance, December 31, 2019 $ 16,787,219 Liabilities incurred 99,436 Liabilities settled (710,577) Revision of estimate (1) 34,441 Accretion expense 906,616 Balance, December 31, 2020 $ 17,117,135 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS' EQUITY | |
Schedule of common stock issued in option exercise | Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2018 110,000 $ 2.00 90,375 19,625 $ — $ 11.21 $ 220,000 50,000 2.00 50,000 — 100,000 8.00 — 25,000 7.50 9,829 15,171 — 12.36 $ 187,500 3,000 8.00 1,059 1,941 — 12.36 $ 24,000 3,000 5.25 1,750 1,250 — 12.36 $ 15,750 2,000 11.75 100 1,900 — 12.36 $ 23,500 2018 Totals 193,000 153,113 39,887 $ 100,000 $ 470,750 2018 Weighted Averages $ 2.96 $ 10.58 |
EMPLOYEE STOCK OPTIONS, RESTR_2
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | |
Schedule of Stock Options Activity | A summary of the status of the stock options as of December 31, 2020, 2019 and 2018 and changes during the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Weighted- Weighted- Weighted- Average Average Average Options Exercise Price Options Exercise Price Options Exercise Price Outstanding at beginning of the year 2,748,500 $ 6.28 2,751,000 $ 6.28 3,193,000 $ 6.07 Issued — — — — — — Forfeited or rescinded (2,283,000) 6.89 (2,500) 11.70 (249,000) 6.09 Exercised — — — — (193,000) 2.96 Outstanding at end of year 465,500 $ 3.26 2,748,500 $ 6.28 2,751,000 $ 6.28 Exercisable at end of year 455,300 $ 3.11 2,506,700 $ 5.78 2,323,900 $ 5.42 |
Schedule of Stock Options Outstanding | The following table summarizes information related to the Company’s stock options outstanding as of December 31, 2020: Options Outstanding Weighted- Average Remaining Number Contractual Life Number Exercise price Outstanding (in years) Exercisable 2.00 395,000 2.92 395,000 5.50 5,000 2.20 5,000 14.54 10,000 3.73 10,000 8.00 4,500 3.92 4,500 6.42 15,000 5.34 12,000 11.75 36,000 5.95 28,800 465,500 3.25 455,300 |
Schedule of Restricted Stock Shares Activity | # of shares of Grant date restricted stock April 4, 2018 2,000 September 27, 2018 2,500 December 26, 2018 615,380 April 9, 2019 10,400 May 30, 2019 5,000 July 9, 2019 5,000 September 13, 2019 10,000 December 21, 2019 627,205 October 1, 2020 900,000 October 26, 2020 150,000 December 15, 2020 930,000 |
Schedule of Restricted Stock Grants | 2020 2019 2018 Weighted- Average Grant Weighted- Weighted- Date Fair Average Grant Average Grant Restricted stock Value Restricted stock Date Fair Value Restricted stock Date Fair Value Outstanding at beginning of the year 1,341,889 $ 4.99 878,360 $ 7.33 330,900 $ 13.44 Granted 1,980,000 0.71 657,605 2.63 619,880 4.78 Forfeited or rescinded (9,200) 3.97 (6,940) 4.23 (7,800) 13.44 Vested (1,180,392) 4.97 (187,136) 7.79 (64,620) 13.44 Outstanding at end of year 2,132,297 $ 2.94 1,341,889 $ 4.99 878,360 $ 7.33 |
Schedule of contributions expense | 2020 2019 Employer safe harbor match 138,977 59,716 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of Components of Income Tax Expense | For the years ended December 31, 2020, 2019 and 2018, components of our provision for income taxes are as follows: Provision for (Benefit from) Income Taxes 2020 2019 2018 Deferred taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 Provision for (Benefit from) Income Taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes: Rate Reconciliation 2020 2019 2018 Tax at federal statutory rate $ (54,476,731) $ 9,089,683 $ 2,613,551 Non-deductible expenses 956 2,399 3,197 Excess tax benefit from stock option exercises and restricted stock vesting (1,109,379) 4,055,418 828,973 Adjust prior estimates to tax return (4,754) 19 — States taxes, net of Federal benefit (964,393) 160,913 — Adjustment for change in future effective tax rate (1) — 479,222 — Valuation allowance (2) 50,553,125 — — Provision for Income Taxes $ (6,001,176) $ 13,787,654 $ 3,445,721 |
Schedule of Deferred Tax Assets and Liabilities | The net deferred taxes consisted of the following as of December 31, 2020 and 2019: Deferred Taxes: 2020 2019 Deferred tax liabilities Property and equipment $ 5,357,255 $ 56,325,029 Deferred tax assets Stock-based compensation 2,248,272 269,264 Operating loss and IDC carryforwards 3,108,983 50,054,589 Deferred tax assets 5,357,255 50,323,853 Net deferred income tax liability $ — $ 6,001,176 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of quarterly financial data (unaudited) | 2018 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 29,891,391 $ 29,924,883 $ 32,687,179 $ 27,561,908 Operating Income (Loss) 10,935,120 9,397,559 9,615,030 (9,986,770) Net Income (Loss) 5,665,634 4,719,806 5,693,628 (7,079,308) Basic Net Income (Loss) Per Share $ 0.10 $ 0.08 $ 0.09 $ (0.12) Diluted Net Income (Loss) Per Share 0.10 0.08 0.09 $ (0.12) 2019 Three Months Ended March 31 June 30 September 30 December 31 (restated) (restated) (restated) Revenues $ 41,798,315 $ 51,334,225 $ 50,339,105 $ 52,231,186 Operating Income 10,235,485 17,636,415 14,342,410 17,922,018 Net Income 4,269,260 11,342,597 8,858,000 5,026,692 Basic Net Income Per Share $ 0.07 $ 0.17 $ 0.13 $ 0.08 Diluted Net Income Per Share 0.07 0.17 0.13 $ 0.08 2020 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 39,570,328 $ 10,636,593 $ 31,466,544 $ 31,351,673 Operating Income (Loss) 10,081,718 (156,845,697) 6,511,161 (128,408,648) Net Income (Loss) 43,804,118 (135,000,066) (1,961,603) (160,254,277) Basic Net Income (Loss) Per Share $ 0.64 $ (1.99) $ (0.03) $ (1.83) Diluted Net Income (Loss) Per Share 0.64 (1.99) (0.03) (1.83) |
ORGANIZATION, BASIS OF PRESEN_4
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Total depletion and depletion per barrel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Depletion | $ 42,634,294 | $ 55,870,246 | $ 38,810,864 |
Depletion rate, per barrel-of-oil-equivalent (BOE) | $ 13.25 | $ 14.15 | $ 17.38 |
ORGANIZATION, BASIS OF PRESEN_5
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office Equipment And Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment And Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
ORGANIZATION, BASIS OF PRESEN_6
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Fair Value, Concentration of Risk, Cash and Cash Equivalents | $ 3,328,634 | $ 9,754,622 | |||
Allowance for doubtful accounts | 0 | 0 | |||
Depreciation | 376,366 | 334,023 | $ 214,022 | ||
Share-based Compensation | 5,364,162 | 3,082,625 | $ 3,870,934 | ||
Impairment of Oil and Gas Properties | 277,501,943 | 0 | 14,172,309 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent. | 21.00% | ||||
Valuation allowance | 50,553,125 | 0 | 0 | ||
Cumulative Effect on Retained Earning,Net Of Tax | 294,765,813 | 523,509,933 | $ 462,599,430 | 356,603,340 | |
Excess Tax Benefit From Share Based Compensation | $ (2,026,006) | $ (3,855,389) | $ 907,884 | ||
Sales Revenue, Net | Customer One | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 68.00% | 42.00% | 85.00% | ||
Sales Revenue, Net | Customer Two | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 36.00% | 11.00% | ||
Sales Revenue, Net | Customer Three | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 8.00% | 7.00% | |||
Accounts Receivable | Customer One | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 80.00% | 47.00% | 90.00% | ||
Accounts Receivable | Customer Two | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 0.00% | 31.00% | |||
Accounts Receivable | Customer Three | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Percentage | 5.00% | 9.00% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE RECOGNITION | |||
Oil | $ 109,113,557 | $ 191,891,314 | $ 116,678,375 |
Natural gas | 3,911,581 | 3,811,517 | 3,386,986 |
Total operating revenues | $ 113,025,138 | $ 195,702,831 | $ 120,065,361 |
LEASES - Future lease payments
LEASES - Future lease payments (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
LEASES | |
Lease, Practical Expedients, Package [true false] | true |
Lease, Practical Expedient, Use of Hindsight [true false] | false |
Lease term of financing leases for vehicles | 36 months |
Operating lease payments | |
2021 | $ 909,035 |
2022 | 186,127 |
2023 | 178,377 |
2024 | 164,527 |
2025 | $ 164,527 |
Weighted average discount rate | 4.50% |
Imputed interest | $ 108,195 |
Weighted average remaining term | 3 years |
Financing lease payments | |
2021 | $ 311,206 |
2022 | $ 132,499 |
Weighted average discount rate | 5.26% |
Imputed interest | $ 21,538 |
Weighted average remaining term | 1 year 5 months 1 day |
LEASES - Supplemental informati
LEASES - Supplemental information regarding cash flows from operations (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
LEASES | |
Operating lease costs | $ 1,196,373 |
Short term lease costs (1) | 5,337,433 |
Financing lease costs: | |
Amortization of financing lease assets (2) | 287,413 |
Interest on lease liabilities (3) | $ 30,237 |
EARNINGS (LOSS) PER SHARE INF_3
EARNINGS (LOSS) PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Net Income (Loss) | $ (160,254,277) | $ (1,961,603) | $ (135,000,066) | $ 43,804,118 | $ 5,026,692 | $ 8,858,000 | $ 11,342,597 | $ 4,269,260 | $ (7,079,308) | $ 5,693,628 | $ 4,719,806 | $ 5,665,634 | $ (253,411,828) | $ 29,496,551 | $ 8,999,760 |
Basic Weighted-Average Shares Outstanding | 72,891,310 | 66,571,738 | 59,531,200 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||
Diluted Weighted-Average Shares Outstanding | 72,891,310 | 66,757,028 | 60,848,177 | ||||||||||||
Basic Earnings (Loss) per share | $ (1.83) | $ (0.03) | $ (1.99) | $ 0.64 | $ 0.08 | $ 0.13 | $ 0.17 | $ 0.07 | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ 3.48 | $ 0.44 | $ 0.15 |
Diluted Earnings (Loss) per share | $ (1.83) | $ (0.03) | $ (1.99) | $ 0.64 | $ 0.08 | $ 0.13 | $ 0.17 | $ 0.07 | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ 3.48 | $ 0.44 | $ 0.15 |
Restricted Stock | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 10,346 | 78,191 | |||||||||||||
Stock options | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 174,944 | 1,238,786 |
EARNINGS (LOSS) PER SHARE INF_4
EARNINGS (LOSS) PER SHARE INFORMATION - Additional information (Details) - shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Pre Funded Warrants, Shares | 13,428,500 | |||
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares were excluded from the computation of diluted earnings per share | 2,144,617 | 704,684 | 2,500 | |
Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares were excluded from the computation of diluted earnings per share | 465,500 | 2,353,500 | 574,500 | |
Common warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares were excluded from the computation of diluted earnings per share | 29,804,300 |
ACQUISITIONS - The estimated fa
ACQUISITIONS - The estimated fair value of the acquired properties (Details) - Oil and Natural Gas Assets in Andrews County | Dec. 31, 2020USD ($) |
Assets acquired | |
Proved oil and natural gas properties | $ 13,775,807 |
Liabilities assumed | |
Asset retirement obligations | (2,571,549) |
Total Identifiable Net Assets | $ 11,204,258 |
ACQUISITIONS - The fair values
ACQUISITIONS - The fair values of the assets acquired and the liabilities assumed (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets acquired | |||
Joint interest billing receivable | $ 0 | $ 1,464,394 | $ 0 |
Prepaid assets | 0 | 2,864,554 | 0 |
Liabilities assumed | |||
Accounts and revenues payable | 0 | (1,234,861) | 0 |
Asset retirement obligation incurred through acquisition | 0 | $ (3,705,941) | $ 0 |
Wishbone Acquisition | |||
Assets acquired | |||
Proved oil and gas properties | 305,004,775 | ||
Joint interest billing receivable | 1,464,394 | ||
Prepaid assets | 2,864,554 | ||
Liabilities assumed | |||
Accounts and revenues payable | (1,234,861) | ||
Asset retirement obligation incurred through acquisition | (3,705,941) | ||
Total Identifiable Net Assets | $ 304,392,921 |
ACQUISITIONS - Revenues and dir
ACQUISITIONS - Revenues and direct operating costs associated with the acquired properties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Revenues | $ 113,025,138 | $ 195,702,831 | $ 120,065,361 |
Oil and natural gas production costs | 36,968,873 | 48,496,225 | 27,801,989 |
Oil and natural gas production taxes | $ 5,228,090 | 9,130,379 | $ 5,631,093 |
Acquired properties | |||
Business Acquisition [Line Items] | |||
Revenues | 105,102,038 | ||
Oil and natural gas production costs | 17,037,228 | ||
Oil and natural gas production taxes | 4,646,660 | ||
Total direct costs (1) | 21,683,888 | ||
Earnings from the Acquired properties | $ 83,418,150 |
ACQUISITIONS - The operations o
ACQUISITIONS - The operations of the Company as if the acquisition of assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ACQUISITIONS | ||
Oil and Gas Revenues | $ 202,368,245 | $ 196,385,905 |
Net Income | $ 29,556,993 | $ 29,105,827 |
Basic Earnings per Share | $ 0.44 | $ 0.49 |
Diluted Earnings per Share | $ 0.44 | $ 0.48 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) | Apr. 09, 2019USD ($)ashares | Dec. 31, 2018USD ($)a$ / shares | Dec. 31, 2020USD ($) | Feb. 25, 2019$ / shares |
Business Acquisition [Line Items] | ||||
Gas and Oil Area, Developed, Net | a | 4,788 | |||
Gas and Oil Area, Developed, Gross | a | 4,854 | |||
Business Combination, Acquisition Related Costs | $ 23,321 | $ 4,100,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 103,385 | |||
Oil and Natural Gas Assets in Andrews County | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Share Price | $ / shares | $ 5.80 | |||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 11,204,258 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2,571,549 | |||
Wishbone Acquisition | ||||
Business Acquisition [Line Items] | ||||
Gas and Oil Area, Developed, Net | a | 38,230 | |||
Gas and Oil Area, Developed, Gross | a | 49,754 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares, after Adjustment | shares | 4,576,951 | |||
Business Acquisition, Share Price | $ / shares | $ 6.19 | |||
Business Combination, Consideration Transferred | $ 276,100,000 | |||
Common Stock Held in Escrow | shares | 2,538,071 | |||
Average Working Interest | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 77.00% | 100.00% | ||
Average Net Revenue Interest | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 58.00% | 75.00% |
DEPOSIT FORFEITURE INCOME (Deta
DEPOSIT FORFEITURE INCOME (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020USD ($) | Apr. 30, 2020USD ($)item | Dec. 31, 2020USD ($) | |
DEPOSIT FORFEITURE INCOME | |||
Number of occasions in which Company entered into an agreement | item | 6 | ||
Non-refundable deposits | $ 5,500,000 | ||
Deposit forfeiture income | $ 5,500,000 | $ 5,500,000 |
OIL AND NATURAL GAS PRODUCING_3
OIL AND NATURAL GAS PRODUCING ACTIVITIES - Capitalized Costs Relating to Oil and Natural Gas Producing Activities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
OIL AND NATURAL GAS PRODUCING ACTIVITIES | ||
Proved oil and natural gas properties | $ 836,514,815 | $ 1,083,966,135 |
Financing lease asset subject to depreciation | 858,513 | 858,513 |
Fixed assets subject to depreciation | 1,520,890 | 1,465,551 |
Total capitalized costs | 838,894,218 | 1,086,290,199 |
Accumulated depletion, depreciation and amortization | (200,111,658) | (157,074,044) |
Net Capitalized Costs | $ 638,782,560 | $ 929,216,155 |
OIL AND NATURAL GAS PRODUCING_4
OIL AND NATURAL GAS PRODUCING ACTIVITIES - Net Costs Incurred in Oil and Gas Producing Activities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OIL AND NATURAL GAS PRODUCING ACTIVITIES | |||
Payments for the Wishbone Acquisition | $ 0 | $ 276,061,594 | $ 0 |
Payments to purchase oil and natural gas properties | 1,317,313 | 3,400,411 | 4,656,484 |
Proceeds from divestiture of oil and natural gas properties | 0 | (8,547,074) | 0 |
Payments to develop oil and natural gas properties | 42,457,745 | 152,125,320 | 198,870,366 |
Payments to acquire or improve fixed assets subject to depreciation | 55,339 | 0 | $ 0 |
Total Net Costs Incurred | $ 43,830,397 | $ 423,040,251 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | May 29, 2020USD ($) | Dec. 31, 2019USD ($)BarrelOfButane$ / bbl | Dec. 31, 2020BarrelOfButane$ / bbl | Dec. 31, 2018BarrelOfButane$ / bbl |
Cash Payment Receipt on Unwound Costless Collars | $ | $ 5,435,136 | |||
Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 5,500 | |||
Swap Contract | ||||
Derivative, Price Risk Option Strike Price | 33.24 | |||
Period One | ||||
Cash Payment Receipt on Unwound Costless Collars | $ | $ 3,438,300 | |||
Period One | Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 2,000 | 1,000 | 1,000 | |
Period One | Commodity Contract | Call Option | ||||
Derivative, Price Risk Option Strike Price | 70.05 | 65.83 | 54.60 | |
Period One | Commodity Contract | Put Option | ||||
Derivative, Price Risk Option Strike Price | 60 | 50 | 49 | |
Period Two | Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 1,000 | 1,000 | ||
Period Two | Commodity Contract | Call Option | ||||
Derivative, Price Risk Option Strike Price | 65.40 | 54.80 | ||
Period Two | Commodity Contract | Put Option | ||||
Derivative, Price Risk Option Strike Price | 50 | 51 | ||
Period Three | Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 1,000 | |||
Period Three | Commodity Contract | Call Option | ||||
Derivative, Price Risk Option Strike Price | 58.40 | |||
Period Three | Commodity Contract | Put Option | ||||
Derivative, Price Risk Option Strike Price | 50 | |||
Period Four | Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 1,000 | |||
Period Four | Commodity Contract | Call Option | ||||
Derivative, Price Risk Option Strike Price | 58.25 | |||
Period Four | Commodity Contract | Put Option | ||||
Derivative, Price Risk Option Strike Price | 50 | |||
Period Five | Commodity Contract | ||||
Number Of Barrels Per Day | BarrelOfButane | 1,500 | |||
Period Five | Commodity Contract | Call Option | ||||
Derivative, Price Risk Option Strike Price | 58.65 | |||
Period Five | Commodity Contract | Put Option | ||||
Derivative, Price Risk Option Strike Price | 50 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) | Dec. 31, 2022BarrelOfButaneMMBTU$ / bbl$ / MMBTU | Dec. 31, 2021BarrelOfButaneMMBTU$ / bbl$ / MMBTU | Dec. 31, 2020BarrelOfButanebbl$ / bbl |
Swap Contract | |||
Barrels per day | bbl | 5,500 | ||
Put price | 33.24 | ||
Swap Price | 33.24 | ||
Oil | Commodity Contract A | |||
Barrels per day | BarrelOfButane | 1,000 | ||
Put price | 45 | ||
Call price | 54.75 | ||
Oil | Commodity Contract A | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 2,000 | ||
Swap Price | 45.37 | ||
Oil | Commodity Contract A | January 2022 through December 2022 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 44.22 | ||
Oil | Commodity Contract B | |||
Barrels per day | BarrelOfButane | 1,000 | ||
Put price | 45 | ||
Call price | 52.71 | ||
Oil | Commodity Contract B | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 45.38 | ||
Oil | Commodity Contract B | January 2022 through December 2022 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 44.75 | ||
Oil | Commodity Contract C | |||
Barrels per day | BarrelOfButane | 1,000 | ||
Put price | 40 | ||
Call price | 55.08 | ||
Oil | Commodity Contract C | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 45 | ||
Oil | Commodity Contract C | January 2022 through December 2022 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 44.97 | ||
Oil | Commodity Contract D | |||
Barrels per day | BarrelOfButane | 1,500 | ||
Put price | 40 | ||
Call price | 55.35 | ||
Oil | Commodity Contract D | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 45.40 | ||
Oil | Commodity Contract D | January 2022 through December 2022 | |||
Barrels per day | BarrelOfButane | 250 | ||
Swap Price | 45.98 | ||
Oil | Commodity Contract E | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 45.60 | ||
Oil | Commodity Contract F | January 2021 Through December 2021 | |||
Barrels per day | BarrelOfButane | 500 | ||
Swap Price | 45.96 | ||
Natural Gas | January 2021 Through December 2021 | |||
Barrels per day | MMBTU | 6,000 | ||
Swap Price | $ / MMBTU | 2.991 | ||
Natural Gas | January 2022 through December 2022 | |||
Barrels per day | MMBTU | 5,000 | ||
Swap Price | $ / MMBTU | 2.7255 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Oil and gas derivative liabilities | $ (4,156,601) | $ (3,000,078) | $ 0 |
Total | (4,156,601) | (3,000,078) | 0 |
Fair Value, Inputs, Level 1 [Member] | |||
Oil and gas derivative liabilities | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Oil and gas derivative liabilities | (4,156,601) | (3,000,078) | 0 |
Total | (4,156,601) | (3,000,078) | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Oil and gas derivative liabilities | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Details) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 350,000,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||
Leverage Ratio, Total | 4.25 | |||
Long-term Line of Credit | $ 313,000,000 | $ 366,500,000 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Leverage Ratio, Total | 1 | |||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Leverage Ratio, Total | 4.75 | 4 | ||
Federal Funds Purchased | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSET RETIREMENT OBLIGATION | |||
Balance | $ 16,787,219 | $ 13,055,797 | $ 9,055,697 |
Liabilities acquired | 3,745,642 | 2,571,549 | |
Liabilities incurred | 99,436 | 631,727 | 1,311,956 |
Liabilities settled | (710,577) | (1,589,654) | (577,824) |
Revision of estimate (1) | 34,441 | 87,960 | |
Accretion Expense | 906,616 | 943,707 | 606,459 |
Balance | $ 17,117,135 | $ 16,787,219 | $ 13,055,797 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional information (Details) - USD ($) | Feb. 25, 2019 | Oct. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |||||||
Share Price | $ 10.58 | ||||||||
Proceeds From Issuance Of Common Stock Gross | $ 16,089,582 | $ 3,300 | |||||||
Proceeds from issuance of common stock, net of offering costs | 19,383,131 | $ 0 | $ 81,821,138 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.80 | ||||||||
Return of Common Stock Issued as Consideration in Asset Acquisition | 103,385 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 103,385 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 153,113 | 153,113 | |||||||
Pre-funded warrants | |||||||||
Class of Stock [Line Items] | |||||||||
Common Stock, Shares Authorized | 3,300,000 | ||||||||
Stock Issued During Period, Shares, New Issues | 13,428,500 | ||||||||
Common warrants | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 23,004,300 | ||||||||
Stock and Warrants Issued During Period, Purchase Price per Share | $ 0.70 | ||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||
Return of Common Stock Issued Shares as Consideration in Asset Acquisition | 16,702 | ||||||||
Oil and Natural Gas Assets in Andrews County | |||||||||
Class of Stock [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,623,948 | ||||||||
Business Acquisition, Share Price | $ 5.80 | $ 5.80 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 11,204,258 | $ 11,204,258 | |||||||
Wishbone Partners, LLC | |||||||||
Class of Stock [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 4,576,951 | ||||||||
Business Acquisition, Share Price | $ 6.19 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 28,331,327 | ||||||||
Underwritten Public Offering | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 9,575,800 | 6,164,000 | |||||||
Share Price | $ 14 | ||||||||
Proceeds From Issuance Of Common Stock Gross | $ 86,296,000 | $ 20,846,282 | |||||||
Proceeds from issuance of common stock, net of offering costs | 81,821,138 | 19,379,832 | |||||||
Payments of Stock Issuance Costs | $ 4,474,862 | ||||||||
Over-Allotment Option | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 804,000 | ||||||||
Registered direct offering | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 3,500,000 | ||||||||
Proceeds From Issuance Of Common Stock Gross | $ 4,756,700 | 20,846,282 | |||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.80 | ||||||||
Proceeds from Issuance or Sale of Equity | $ 161,269 | ||||||||
Registered direct offering | Pre-funded warrants | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 3,300,000 | 13,428,500 | |||||||
Stock and Warrants Issued During Period, Purchase Price per Share | $ 0.70 | ||||||||
Registered direct offering | Common warrants | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 6,800,000 | 184,800 |
STOCKHOLDERS' EQUITY- Common st
STOCKHOLDERS' EQUITY- Common stock issued in option exercise (Details) - USD ($) | Feb. 25, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Options exercised | 193,000 | ||
Exercise price | $ 2.96 | ||
Shares issued | 153,113 | 153,113 | |
Shares retained | 39,887 | ||
Cash paid at exercise | $ 100,000 | $ 100,000 | |
Stock price on date of exercise | $ 10.58 | ||
Aggregate value of shares retained | $ 470,750 | ||
Exercised Option 1 | |||
Options exercised | 110,000 | ||
Exercise price | $ 2 | ||
Shares issued | 90,375 | ||
Shares retained | 19,625 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 11.21 | ||
Aggregate value of shares retained | $ 220,000 | ||
Exercised Option 2 | |||
Options exercised | 50,000 | ||
Exercise price | $ 2 | ||
Shares issued | 50,000 | ||
Cash paid at exercise | $ 100,000 | ||
Stock price on date of exercise | $ 8 | ||
Exercised Option 3 | |||
Options exercised | 25,000 | ||
Exercise price | $ 7.50 | ||
Shares issued | 9,829 | ||
Shares retained | 15,171 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 12.36 | ||
Aggregate value of shares retained | $ 187,500 | ||
Exercised Option 4 | |||
Options exercised | 3,000 | ||
Exercise price | $ 8 | ||
Shares issued | 1,059 | ||
Shares retained | 1,941 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 12.36 | ||
Aggregate value of shares retained | $ 24,000 | ||
Exercised Option 5 | |||
Options exercised | 3,000 | ||
Exercise price | $ 5.25 | ||
Shares issued | 1,750 | ||
Shares retained | 1,250 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 12.36 | ||
Aggregate value of shares retained | $ 15,750 | ||
Exercised Option 6 | |||
Options exercised | 2,000 | ||
Exercise price | $ 11.75 | ||
Shares issued | 100 | ||
Shares retained | 1,900 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 12.36 | ||
Aggregate value of shares retained | $ 23,500 |
EMPLOYEE STOCK OPTIONS, RESTR_3
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Exercise Prices No Options Were Granted (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | |
Granted | 0 |
EMPLOYEE STOCK OPTIONS, RESTR_4
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Status of the Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 0 | ||
Forfeited or rescinded | (2,265,000) | ||
Options Outstanding at end of year | 465,500 | ||
Options Exercisable at end of year | 455,300 | ||
Weighted Average Exercise Price, Vested | $ 2.96 | ||
Weighted Average Exercise Price, Exercisable at end of year | $ 6.87 | ||
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 3 years 3 months | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Vested | (193,000) | ||
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Vested | (50,000) | ||
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding at beginning of the year | 2,748,500 | 2,751,000 | 3,193,000 |
Granted | 0 | ||
Forfeited or rescinded | (2,283,000) | (2,500) | (249,000) |
Options Vested | (193,000) | ||
Options Outstanding at end of year | 465,500 | 2,748,500 | 2,751,000 |
Options Exercisable at end of year | 455,300 | 2,506,700 | 2,323,900 |
Weighted Average Exercise Price, Outstanding at beginning of the year | $ 6.28 | $ 6.28 | $ 6.07 |
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Forfeited or rescinded | 6.89 | 11.70 | 6.09 |
Weighted Average Exercise Price, Vested | 0 | 2.96 | |
Weighted Average Exercise Price, Outstanding at end of year | 3.26 | 6.28 | 6.28 |
Weighted Average Exercise Price, Exercisable at end of year | $ 3.11 | $ 5.78 | $ 5.42 |
EMPLOYEE STOCK OPTIONS, RESTR_5
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Number Outstanding | 465,500 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 3 years 3 months |
Options Outstanding - Number Exercisable | 455,300 |
Exercise Price One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 2 |
Options Outstanding - Number Outstanding | 395,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 2 years 11 months 1 day |
Options Outstanding - Number Exercisable | 395,000 |
Exercise Price Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 5.50 |
Options Outstanding - Number Outstanding | 5,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 2 years 2 months 12 days |
Options Outstanding - Number Exercisable | 5,000 |
Exercise Price Six [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 14.54 |
Options Outstanding - Number Outstanding | 10,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 3 years 8 months 23 days |
Options Outstanding - Number Exercisable | 10,000 |
Exercise Price Seven [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 8 |
Options Outstanding - Number Outstanding | 4,500 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 3 years 11 months 1 day |
Options Outstanding - Number Exercisable | 4,500 |
Exercise Price Nine [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 6.42 |
Options Outstanding - Number Outstanding | 15,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 5 years 4 months 2 days |
Options Outstanding - Number Exercisable | 12,000 |
Exercise Price Ten [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 11.75 |
Options Outstanding - Number Outstanding | 36,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 5 years 11 months 12 days |
Options Outstanding - Number Exercisable | 28,800 |
EMPLOYEE STOCK OPTIONS, RESTR_6
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Restricted Stock Grants (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
April 4, 2018 | |
of shares of restricted stock | 2,000 |
September 27, 2018 | |
of shares of restricted stock | 2,500 |
December 26, 2018 | |
of shares of restricted stock | 615,380 |
April 9, 2019 | |
of shares of restricted stock | 10,400 |
May 30, 2019 | |
of shares of restricted stock | 5,000 |
July 9, 2019 | |
of shares of restricted stock | 5,000 |
September 13, 2019 | |
of shares of restricted stock | 10,000 |
December 21, 2019 | |
of shares of restricted stock | 627,205 |
October 1, 2020 | |
of shares of restricted stock | 900,000 |
October 26, 2020 | |
of shares of restricted stock | 150,000 |
December 15, 2020 | |
of shares of restricted stock | 930,000 |
EMPLOYEE STOCK OPTIONS, RESTR_7
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Status of Restricted Stock Grants (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, Outstanding at beginning of the year | 1,341,889 | 878,360 | 330,900 |
Restricted stock, Granted | 1,980,000 | 657,605 | 619,880 |
Restricted stock, Forfeited or rescinded | (9,200) | (6,940) | (7,800) |
number of restricted stock vested | 1,180,392 | 187,136 | 64,620 |
Restricted stock, Outstanding at end of year | 2,132,297 | 1,341,889 | 878,360 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ 4.99 | $ 7.33 | $ 13.44 |
Weighted-Average Grant Date Fair Value, Granted | 0.71 | 2.63 | 4.78 |
Weighted-Average Grant Date Fair Value, Forfeited or rescinded | 3.97 | 4.23 | 13.44 |
Weighted-Average Grant Date Fair Value, Vested | 4.97 | 7.79 | 13.44 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 2.94 | $ 4.99 | $ 7.33 |
EMPLOYEE STOCK OPTIONS, RESTR_8
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Contributions expense recognized (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) | ||
Employer safe harbor match | $ 138,977 | $ 59,716 |
EMPLOYEE STOCK OPTIONS, RESTR_9
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation Expenses Charged Against Income For Share Based Awards Included In General And Administrative Expenses | $ 5,364,162 | $ 3,082,625 | $ 3,870,934 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 341,155 | 341,155 | |||
Granted | 0 | ||||
Returned and cancelled | 2,265,000 | ||||
Additional compensation expense | $ 768,379 | ||||
Weighted Average Exercise Price, Exercisable at end of year | $ 6.87 | $ 6.87 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 0.66 | $ 0.66 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 14,988 | $ 14,988 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 7 months 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1,470,230 | ||||
Employer's matching contributions | 6.00% | ||||
Vesting percentage | 100.00% | ||||
Share-based Compensation | $ 5,364,162 | 3,082,625 | 3,870,934 | ||
Board of Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional compensation expense | $ 2,361,362 | $ 2,361,362 | |||
Accelerated vesting of restricted stock | 1,131,955 | 1,131,955 | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation | $ 927,559 | 625,855 | 1,853,913 | ||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,520,839 | $ 1,520,839 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||||
aggregate intrinsic value of vested restricted stock | $ 801,133 | 494,605 | 304,360 | ||
Share-based Compensation | $ 4,436,603 | $ 2,456,770 | $ 2,017,021 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |||
Related party transaction expense | $ 60,000 | $ 60,000 | $ 60,000 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | |
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||
Operating lease expense | $ 1,196,372 | $ 925,217 | ||
Standby letters of credit drawn | 26,500,000 | $ 327,000,000 | $ 39,500,000 | |
Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Issued surety bonds | 500,438 | |||
Surety bonds renewal amount | 400,000 | |||
Surety bonds renewal amount, not applicable | 100,438 | |||
Standby Letters of Credit | State And Federal Agencies | ||||
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 260,000 | |||
Standby Letters of Credit | Electric Utility Companies | ||||
Loss Contingencies [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,438 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for Income Taxes | |||
Deferred taxes | $ (6,001,176) | $ 13,787,654 | $ 3,445,721 |
Provision for (Benefit from) Income Taxes | $ (6,001,176) | $ 13,787,654 | $ 3,445,721 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rate Reconciliation | |||
Tax at federal statutory rate | $ (54,476,731) | $ 9,089,683 | $ 2,613,551 |
Non-deductible expenses | 956 | 2,399 | 3,197 |
Excess tax benefit from stock option exercises and restricted stock vesting | (1,109,379) | 4,055,418 | 828,973 |
Adjust prior estimates to tax return | (4,754) | 19 | |
States taxes, net of Federal benefit | (964,393) | 160,913 | |
Adjustment for change in future effective tax rate | 479,222 | ||
Valuation allowance | 50,553,125 | 0 | 0 |
Provision for (Benefit from) Income Taxes | $ (6,001,176) | $ 13,787,654 | $ 3,445,721 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Taxes (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liabilities | ||
Property and equipment | $ 5,357,255 | $ 56,325,029 |
Deferred tax assets | ||
Stock-based compensation | 2,248,272 | 269,264 |
Operating loss and IDC carryforwards | 3,108,983 | 50,054,589 |
Deferred tax assets | $ 5,357,255 | 50,323,853 |
Net deferred income tax liability | $ 6,001,176 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information - (Details) - USD ($) | Dec. 22, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Company Had Net Operating Loss Carry Forwards For Federal Income Tax Reporting Purposes Of Approximately In Millions | $ 107,400,000 | |||
Operating loss carry forwards that will not expire | 150,200,000 | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 479,222 | |||
Deferred Tax Assets, Valuation Allowance | $ 50,553,125 | $ 0 | $ 0 | |
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.29% |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||
Revenues | $ 113,025,138 | $ 195,702,831 | $ 120,065,361 | ||||||||||||
Operating Income (Loss) | $ (128,408,648) | $ 6,511,161 | $ (156,845,697) | $ 10,081,718 | $ 17,922,018 | $ 14,342,410 | $ 17,636,415 | $ 10,235,485 | $ (9,986,770) | $ 9,615,030 | $ 9,397,559 | $ 10,935,120 | (268,661,466) | 60,136,328 | 19,960,939 |
Net Income (Loss) | $ (160,254,277) | $ (1,961,603) | $ (135,000,066) | $ 43,804,118 | $ 5,026,692 | $ 8,858,000 | $ 11,342,597 | $ 4,269,260 | $ (7,079,308) | $ 5,693,628 | $ 4,719,806 | $ 5,665,634 | $ (253,411,828) | $ 29,496,551 | $ 8,999,760 |
Basic Earnings per Share | $ (1.83) | $ (0.03) | $ (1.99) | $ 0.64 | $ 0.08 | $ 0.13 | $ 0.17 | $ 0.07 | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ 3.48 | $ 0.44 | $ 0.15 |
Diluted Earnings per Share | $ (1.83) | $ (0.03) | $ (1.99) | $ 0.64 | $ 0.08 | $ 0.13 | $ 0.17 | $ 0.07 | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ 3.48 | $ 0.44 | $ 0.15 |
Oil and Gas | |||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||
Revenues | $ 31,351,673 | $ 31,466,544 | $ 10,636,593 | $ 39,570,328 | $ 52,231,186 | $ 50,339,105 | $ 51,334,225 | $ 41,798,315 | $ 27,561,908 | $ 32,687,179 | $ 29,924,883 | $ 29,891,391 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020shares | Dec. 31, 2020USD ($)shares | Jan. 15, 2021ft² | |
Subsequent Event [Line Items] | |||
Cash Consideration | $ | $ 2,000,000 | ||
Pre-funded warrants | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 13,428,500 | ||
Common warrants | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 23,004,300 | ||
Registered direct offering | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 3,500,000 | ||
Gross proceeds from issuance | $ | $ 161,269 | ||
Registered direct offering | Pre-funded warrants | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 3,300,000 | 13,428,500 | |
Registered direct offering | Common warrants | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 6,800,000 | 184,800 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Area of Land | ft² | 15,728 |