Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PrimeEnergy Resources Corporation | ||
Entity Central Index Key | 0000056868 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 59,992,464 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | PNRG | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 1,867,500 | ||
Entity Well-known Seasoned Issuer | No | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-7406 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 9821 Katy Freeway | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77024 | ||
City Area Code | 713 | ||
Local Phone Number | 735-0000 | ||
Entity Tax Identification Number | 84-0637348 | ||
Auditor Name | Grassi & Co., CPAs, P.C. | ||
Auditor Firm ID | 606 | ||
Auditor Location | New York |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 26,543 | $ 10,347 |
Accounts receivable, net | 12,147 | 14,208 |
Prepaid obligations | 32,839 | 733 |
Due from related parties | 388 | 0 |
Derivative asset short-term | 210 | 0 |
Other current assets | 38 | 40 |
Total Current Assets | 72,165 | 25,328 |
Property and Equipment | ||
Oil and gas properties at cost | 555,280 | 539,484 |
Less: Accumulated depletion and depreciation | (385,811) | (359,742) |
Oil and gas properties, net | 169,469 | 179,742 |
Field and office equipment at cost | 27,246 | 27,080 |
Less: Accumulated depreciation | (22,728) | (22,159) |
Field and office equipment, net | 4,518 | 4,921 |
Total Property and Equipment, Net | 173,987 | 184,663 |
Other assets | 985 | 923 |
Total Assets | 247,137 | 210,914 |
Current Liabilities | ||
Accounts payable | 11,451 | 7,282 |
Accrued liabilities | 25,750 | 7,821 |
Due to related parties | 0 | 52 |
Current portion of asset retirement and other long-term obligations | 2,566 | 1,630 |
Derivative liability short-term | 1,190 | 4,935 |
Total Current Liabilities | 40,957 | 21,720 |
Long-Term Bank Debt | 11,000 | 36,000 |
Asset Retirement Obligations | 13,525 | 13,222 |
Derivative Liability Long-Term | 0 | 650 |
Deferred Income Taxes | 39,968 | 38,743 |
Other Long-Term Obligations | 1,334 | 1,488 |
Total Liabilities | 106,784 | 111,823 |
Commitments and Contingencies | ||
Equity | ||
Common stock, $.10 par value; 2022 and 2021: Authorized: 2,810,000 shares, outstanding 2022: 1,901,000 shares; outstanding 2020: 1,992,077 shares. | 281 | 281 |
Paid-in capital | 7,555 | 7,555 |
Retained earnings | 177,566 | 128,902 |
Treasury stock, at cost; 2022: 909,000 shares; 2021: 817,923 | (45,049) | (37,647) |
Total Stockholders' Equity | 140,353 | 99,091 |
Total Liabilities and Equity | $ 247,137 | $ 210,914 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 10 | $ 10 |
Common stock, shares authorized | 2,810,000 | 2,810,000 |
Common stock, shares outstanding | 1,901,000 | 1,992,077 |
Treasury stock, shares | 909,000 | 817,923 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | ||
Realized gain (loss) on derivative instruments, net | $ (16,644) | $ (5,045) |
Unrealized (loss) on derivative instruments | 4,605 | (4,914) |
Other income | 30 | 29 |
Total Revenues | 125,087 | 72,458 |
Costs and Expenses | ||
Lease operating expense | 37,816 | 24,419 |
Field service expense | 11,094 | 9,152 |
Depreciation, depletion, amortization and accretion on discounted liabilities | 28,068 | 26,325 |
General and administrative expense | 20,233 | 9,084 |
Total Costs and Expenses | 97,211 | 68,980 |
Gain on Sale and Exchange of Assets | 31,789 | 1,478 |
Income from Operations | 59,665 | 4,956 |
Other Income and Expenses | ||
Less: Interest expense | (909) | (2,007) |
Add: Interest income | 237 | |
Add: PPP Loan Forgiveness | 0 | 1,693 |
Income Before Provision Income Taxes | 58,993 | 4,642 |
Income Tax Expense | 10,329 | 2,516 |
Net Income | 48,664 | 2,126 |
Less: Net Income Attributable to Non-Controlling Interest | 0 | 28 |
Net Income Attributable to PrimeEnergy | $ 48,664 | $ 2,098 |
Basic Income Per Common Share | $ 24.91 | $ 1.05 |
Diluted Income Per Common Share | $ 17.95 | $ 0.76 |
Oil sales [Member] | ||
Revenues | ||
Oil, gas and service income | $ 90,803 | $ 50,474 |
Natural gas sales [Member] | ||
Revenues | ||
Oil, gas and service income | 18,428 | 11,432 |
Natural gas liquids sales [Member] | ||
Revenues | ||
Oil, gas and service income | 14,887 | 11,220 |
Oil and gas service [Member] | ||
Revenues | ||
Oil, gas and service income | $ 12,978 | $ 9,262 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in capital | Retained Earnings [Member] | Treasury Stock [Member] | Total Stockholders' Equity – PrimeEnergy [Member] | Non-Controlling Interest [Member] | Shares Outstanding [Member] |
Balance at Dec. 31, 2020 | $ 97,998 | $ 281 | $ 7,541 | $ 126,804 | $ (37,502) | $ 97,124 | $ 874 | |
Balance, shares at Dec. 31, 2020 | 1,994,177 | |||||||
Repurchase shares of common stock | $ (145) | (145) | (145) | |||||
Repurchase shares of common stock, shares | (2,100) | (2,100) | ||||||
Net Income | $ 2,126 | 2,098 | 2,098 | 28 | ||||
Purchase of Non- controlling Interest | (44) | 14 | 0 | 14 | (58) | |||
Distributions to non-controlling interest | (844) | 0 | (844) | |||||
Balance at Dec. 31, 2021 | 99,091 | 281 | 7,555 | 128,902 | (37,647) | 99,091 | 0 | |
Balance, shares at Dec. 31, 2021 | 1,992,077 | |||||||
Repurchase shares of common stock | $ (7,402) | (7,402) | (7,402) | |||||
Repurchase shares of common stock, shares | (91,077) | (91,077) | ||||||
Net Income | $ 48,664 | 48,664 | 48,664 | |||||
Balance at Dec. 31, 2022 | $ 140,353 | $ 281 | $ 7,555 | $ 177,566 | $ (45,049) | $ 140,353 | $ 0 | |
Balance, shares at Dec. 31, 2022 | 1,901,000 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Repurchase of common stock, shares | 91,077 | 2,100 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 48,664 | $ 2,126 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion on discounted liabilities | 28,068 | 26,325 |
Gain on sale of properties | (31,789) | (1,478) |
Unrealized (gain) loss on derivative instruments | (4,605) | 4,914 |
PPP Loan forgiveness | 0 | (1,693) |
Provision for deferred income taxes | 1,225 | 2,376 |
Changes in assets and liabilities: | ||
Accounts receivable | 2,096 | (6,760) |
Allowance for doubtful accounts | (35) | (227) |
Due from related parties | (388) | 44 |
Due to related parties | (52) | (30) |
Prepaid obligations | (32,106) | (143) |
Other current assets | 2 | 64 |
Accounts payable | 4,169 | 2,065 |
Accrued liabilities | 17,929 | 1,034 |
Other assets | 100 | 0 |
Other long-term liabilities | (151) | 0 |
Net Cash Provided by Operating Activities | 33,127 | 28,617 |
Cash Flows from Investing Activities: | ||
Capital expenditures, including exploration expense | (15,974) | (20,726) |
Proceeds from sale of properties and equipment | 31,445 | 1,478 |
Net Cash Provided by (Used in) Investing Activities | 15,471 | (19,248) |
Cash Flows from Financing Activities: | ||
Purchase of stock for treasury | (7,402) | (145) |
Purchase of non-controlling interests | 0 | (676) |
Increase in long-term bank debt and other long-term obligations | 11,000 | 11,209 |
Repayment of long-term bank debt and other long-term obligations | (36,000) | (10,209) |
Distribution to non-controlling interest | 0 | (197) |
Net Cash Used in Financing Activities | (32,402) | (18) |
Net Increase in Cash and Cash Equivalents | 16,196 | 9,351 |
Cash and Cash Equivalents at the Beginning of the Year | 10,347 | 996 |
Cash and Cash Equivalents at the End of the Year | 26,543 | 10,347 |
Supplemental Disclosures: | ||
Income taxes paid during the year | 539 | 343 |
Interest paid during the year | 842 | 1,957 |
Non-Cash Disclosures: | ||
Purchase of non-controlling interest | 0 | 14 |
Distribution of non-controlling interest in liquidated partnerships | $ 0 | $ 647 |
Description of Operations and S
Description of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Operations and Significant Accounting Policies | 1. Description of Operations and Significant Accounting Policies Nature of Operations: PrimeEnergy Resources Corporation (“PERC”), a Delaware corporation, was organized in March 1973 and is engaged in the development, acquisition and production of oil and natural gas properties. PrimeEnergy Resources Corporation and its subsidiaries are herein referred to as the “Company.” The Company owns leasehold, mineral and royalty interests in producing and non-producing non-operating Consolidation and Presentation: The consolidated financial statements include the accounts of PrimeEnergy Resources Corporation, its subsidiaries and the Partnerships, using the full consolidation method for those partnerships which are controlled by the Company. The Company’s reserve estimates are based on the full consolidation method. DD&A expense and evaluation of impairment may differ from the Partnership as the Company’s cost basis for the Partnership interests acquired may be different than the cost basis at the Partnership level for properties acquired by the Partnership. All significant intercompany balances and transactions are eliminated in preparing the consolidated financial statements. Reclassifications: Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on net income and no material impact on any other financial statement captions. Subsequent Events: Subsequent events have been evaluated through the date that the consolidated financial statements were issued. During this period, there were no material subsequent items requiring disclosure, other than as stated in Footnote 4, to these consolidated financial statements. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, U.S. generally accepted accounting principles require that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. Oil and gas properties: The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive explorat ion costs an The capitalized costs of proved properties are depleted using the unit-of-production in-process Field and office Equipment: Depreciation of all other equipment is determined under the straight-line method using various rates based on useful lives generally ranging from 5 to 10 years. The cost of assets and related accumulated depreciation is removed from the accounts when such assets are disposed of, and any related gains or losses are reflected in current earnings. Capitalization of Interest: Interest costs related to financing major oil and gas projects in progress are capitalized until the projects are evaluated or until the projects are substantially complete and ready for their intended use if the projects are evaluated and successful. Impairment of Long-Lived Assets: The Company reviews long-lived assets, including oil and gas properties, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recovered. If the carrying amounts are not expected to be recovered by undiscounted cash flows, the assets are impaired, and an impairment loss is recorded. The amount of impairment is based on the estimated fair value of the assets determined by discounting anticipated future net cash flows. Fair Value: The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by U.S. generally accepted accounting principles to be measured at fair value. The guidance defines fair value as 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 transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. Revenue recognition: The majority of the Company’s production is operated by third party operators where we elect to market our products under the joint operating agreements. Accordingly, we receive our proportionate share of revenue proceeds for production sold by the operator under the operator’s marketing agreements. The Company recognizes revenue and any costs indicated by the operator in the related production period. The Company recognizes revenue related to production from properties operated by the Company when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Oil sales. NGL and gas sales Asset Retirement Obligation: The asset retirement obligation primarily represents the estimated present value of the amount the Company will incur to plug, abandon and remediate producing properties at the end of their productive lives, in accordance with applicable state laws. The Company determined its asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The asset retirement obligation is recorded as a liability at its estimated present value at its inception, with an offsetting increase to producing properties. Periodic accretion of discount of the estimated liability is recorded as an expense in the statements of income. Income Taxes: The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to turn around. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. As of December 31, 2022 and 2021, The Company had no valuation allowance. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome of various tax uncertainties. General and Administrative Expenses: General and administrative expenses represent cost and expenses associated with the operation of the Company. Earnings Per Common Share: Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. Statements of Cash Flows: For purposes of the consolidated statements of cash flows, the Company considers short-term, highly liquid investments with original maturities of less than ninety days to be cash equivalents. Concentration of Credit Risk: The Company maintains significant banking relationships with financial institutions in the State of Texas. The Company limits its risk by periodically evaluating the relative credit standing of these financial institutions. The Company’s oil and gas production purchasers consist primarily of independent marketers and major gas pipeline companies. Hedging: The Company periodically enters into oil and gas financial instruments to manage its exposure to oil and gas price volatility. The oil and gas reference prices upon which the price hedging instruments are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company. The financial instruments are accounted for in accordance with applicable accounting standards for derivative instruments and hedging activities. Such standards require that applicable derivative instruments be measured at fair market value and recognized as assets or liabilities in the balance sheet. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation is generally established at the inception of a derivative. For derivatives designated as cash flow hedges and meeting applicable effectiveness guidelines, changes in fair value, to the extent effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative changes in fair value between the derivative contract and the hedged item over time. Any change in fair value of a derivative resulting from ineffectiveness or an excluded component of the gain/loss is recognized immediately in the statements of income. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 2. Acquisitions and Dispositions 2022 Transactions : In the first quarter of 2022, the Company sold net leasehold acres in Reagan and Midland Counties, Texas through two separate transactions receiving gross proceeds of $ million. In the second quarter of 2022, the Company sold net acres in Canadian County, Oklahoma for $ . In the third quarter of 2022, the Company sold an additional net acres in Canadian County, Oklahoma for $ . On November 14, 2022, the Company completed an acreage exchange of approximately 725 net acres in the Midland Basin creating a block of 1,200 contiguous acres. The Company entered into an agreement, including this acreage, to create a 2,560-acre 2021 Transaction s : During 2021 the Company acquired net acres, located in Midland county, Texas, for approximately $ and sold or farmed out interests in certain non-core undeveloped and developed oil and natural gas properties in Oklahoma. In Texas, the Company divested approximately 116 net mineral acres (NMA) located in Martin County, Texas for proceeds of $ million. During 2021 the Company liquidated partnerships for total cash payments of $632,000, resulting in the non-cash non-controlling |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Information | 3. Additional Balance Sheet Information Accounts receivable, net at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Joint interest billings $ 1,806 $ 1,902 Trade receivables 1,762 1,429 Oil and gas sales 8,894 11,154 Other 21 94 12,483 14,579 Less: Allowance for doubtful accounts (336 ) (371 ) Total $ 12,147 $ 14,208 Accounts payable at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Trade $ 5,142 $ 2,390 Royalty and other owners 3,600 2,802 Partner advances 1,111 1,209 Other 1,598 881 Total $ 11,451 $ 7,282 Accrued liabilities at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Compensation and related expenses $ 9,743 $ 3,919 Property costs 6,413 2,901 Taxes 9,352 893 Other 242 108 Total $ 25,750 $ 7,821 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Debt Bank Debt: On February 15, 2017, the Company and its lenders entered into a Third Amended and Restated Credit Agreement (the “2017 Credit Agreement”) with a maturity date of February 15, 2021. Under the 2017 Credit Agreement, the Company had a revolving line of credit and letter of credit facility of up to $300 million subject to a borrowing base that is determined semi-annually by the lenders based upon the Company’s consolidated financial statements and the estimated value of the Company’s oil and gas properties, in accordance with the Lenders’ customary practices for oil and gas loans. The credit facility is secured by substantially all of the Company’s oil and gas properties. The 2017 Credit Agreement includes terms and covenants that require the Company to maintain a minimum current ratio and total indebtedness to EBITDAX (earnings before depreciation, depletion, amortization, taxes, interest expense and exploration costs) ratio, as defined, and restrictions are placed on the payment of dividends, the amount of treasury stock the Company may purchase, commodity hedge agreements, and loans and investments in its consolidated subsidiaries and limited partnerships. On December 20, 2021 the company entered into a Seventh Amendment to the 2017 Credit Agreement and Citibank N.A was appointed as successor administrative agent replacing PNC Bank. Under this amendment the Company’s borrowing base was $50 million. Borrowings under the 2017 Credit Agreement would bear interest at alternate base rate (ABR) plus an applicable margin ranging from 2.00% to 3.00% or at the Company’s option, at a rate equal to the secured overnight financing rate (SOFR rate) as administered by the SOFR Administrator, in this case the Federal Reserve Bank of New York, plus an applicable margin ranging from 3.00% to 4.00%. The 2017 Credit Agreement was set to mature on February 11, 2023. On December 31, 2021, the Company had a total of $36 million of borrowings outstanding under its revolving credit and $14 million was available for future borrowings. The 2017 Credit Agreement was terminated on July 5th, 2022 with the issuance of the Fourth Amended and Restated Credit Agreement. On July 5, 2022 , the Company and its lenders entered into a Fourth Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with a maturity date of June 1, 2026. Under the 2022 Credit Agreement, the Company has a revolving line of credit and letter of credit facility of up to $300 million subject to a borrowing base that is determined semi-annually by the lenders based upon the Company’s consolidated financial statements and the estimated value of the Company’s oil and gas properties, in accordance with the Lenders’ customary practices for oil and gas loans. The initial borrowing base of the agreement is On December 31, 2022, the Company had a total of $11 million of borrowings outstanding under its revolving credit facility and $64 million was available for future borrowings. Effective January 20, 2023 , in lieu of a formal amendment, a borrowing base letter authorized by all lenders and Prime of the 2022 Credit Agreement resulted in an adjustment to decrease the amount of the Borrowing Base available from $75 million to $60 million until such time as the next redetermination date as required by the agreement. As of March 31, 2023, the borrowing base was $60 million and the Company no outstanding borrowings under the Credit Facility. Paycheck Protection Program Loans During May 2020, Prime Operating Company and Eastern Oil Well Services Corporation, subsidiaries of the Company received loan proceeds in the amount of $1.28 million and $0.47 million, respectively, under the Paycheck Protection Program (the “PPP”) of the CARES Act, which was enacted March 27, 2020. The PPP Loans are evidenced by a promissory note in favor of the Lender, which bears interest at the rate of 1.00% per annum. No payments of principal or interest are due under the note until the date on which the amount of loan forgiveness (if any) under the CARES Act, which can be up to 10 months after the end of the related notes covered period (which is defined as 24 weeks after the date of the loan) (the “Deferral Period”). The note may be prepaid at any time prior to maturity with no prepayment penalties. Funds from the PPP Loans may be used only for payroll and related costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that were incurred prior to February 15, 2020 (the “Qualifying Expenses”). Under the terms of the PPP Loans, certain amounts thereunder may be forgiven if they are used for Qualifying Expenses as described in and in compliance with the CARES Act. The Company utilized the PPP Loan proceeds exclusively for Qualifying Expenses during the 24-week To the extent, if any, that any or all of the PPP loans are not forgiven, beginning one month following expiration of the Deferral Period, and continuing monthly until 24 months from the date of each applicable Note (the “Maturity Date”), the Company is obligated to make monthly payments of principal and interest to the Lender with respect to any unforgiven portion of the Note, in such equal amounts required to fully amortize the principal amount outstanding on such Note as of the last day of the applicable Deferral Period by the applicable Maturity Date. The PPP loans have been approved for forgiveness by the Small Business Administration ( SBA) in conjunction with our lender PNC Bank. The effective date of February 18, 2022 for Eastern Oil Well Service Company in the amount of $481 thousand in principal and interest paid to our lender PNC Bank. The effective date of March 16, 2022 for Prime Operating Company in the amount of $1.2 million in principal and interest to our lender PNC Bank. Effective December 31, 2021, PPP debt and any accrued interest were reclassed from the consolidated balance sheet and recorded in other income on the consolidated statements of income. |
Other Long-Term Obligations and
Other Long-Term Obligations and Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Other Long-Term Obligations and Commitments | (5) Other Long-Term Obligations and Commitments: Operating Leases: The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Lease assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. A new finance lease for office equipment is included in Property and equipment, Current portion of asset retirement and Other Long-Term Obligations in 2022. As most of the Company’s lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted average discount rate used was 7.54%. Certain leases may contain variable costs above the minimum required payments and are not included in the right-of-use Operating lease costs for the years ended December 31, 2022 and 2021 were $628 thousand and $577 thousand, respectively. Cash payments included in the operating lease cost for years ended December 31, 2022 and 2021 were $673 thousand and $599 thousand, respectively. The weighted-average remaining operating lease terms for the years ended December 31, 2022 and 2021 were 11 months and 15 months, respectively. The Company acquired and amended certain leases for office space in Texas providing for payments of $673,000 in 2022, $684,000 in 2023, $202,000 in 2024 and $27,000 in 2025. Rent expense for office space the years ended December 31, 2022 and 2021 was $755,000 and $653,000, respectively. The payment schedule for the Company’s operating lease obligations as of December 31, 2022 is as follows: (Thousands of dollars) Operating Leases 2023 $ 684 2024 202 2025 27 Total undiscounted lease payments $ 913 Less: Amount associated with discounting (61 ) Total net operating lease liabilities $ 852 Less: Current portion included in Other current liabilities 647 Non-current $ 205 Asset Retirement Obligation: A reconciliation of the liability for plugging and abandonment costs for the years ended December 31, 2022 and 2021 is as follows: Years Ended (Thousands of dollars) 2022 2021 Asset retirement obligation at beginning of period $ 14,295 $ 13,660 Net wells placed on production 11 724 Liabilities settled (1,407 ) (1,047 ) Dispositions (344 ) (52 ) Accretion expense 666 642 Revisions in estimated liabilities 2,222 368 Asset retirement obligation at end of period $ 15,443 $ 14,295 Less: Current portion included in Current portion of asset retirement and other long-term obligations 1,918 1,073 Long-term Asset Retirement Obligations included in Asset Retirement Obligations $ 13,525 $ 13,222 The Company’s liability is determined using significant assumptions, including current estimates of plugging and abandonment costs, annual inflation of these costs, the productive life of wells and a risk-adjusted interest rate. Changes in any of these assumptions can result in significant revisions to the estimated asset retirement obligation. Revisions to the asset retirement obligation are recorded with an offsetting change to producing properties, resulting in prospective changes to depreciation, depletion and amortization expense and accretion of discount. Because of the subjectivity of assumptions and the relatively long life of most of the Company’s wells, the costs to ultimately retire the wells may vary significantly from previous estimates. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 6. Contingent Liabilities The Company is subject to environmental laws and regulations. Management believes that future expenses, before recoveries from third parties, if any, will not have a material effect on the Company’s financial condition. This opinion is based on expenses incurred to date for remediation and compliance with laws and regulations, which have not been material to the Company’s results of operations. From time to time, the Company is party to certain legal actions arising in the ordinary course of business. While the outcome of these events cannot be predicted with certainty, management does not expect these matters to have a materially adverse effect on the financial position or results of operations of the Company. |
Stock Options and Other Compens
Stock Options and Other Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Other Compensation | 7. Stock Options and Other Compensation In May 1989, non-statutory |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The components of the provision for income taxes for the years ended December 31, 2022 and 2021 are as follows: Years Ended (Thousands of dollars) 2022 2021 Current: Federal $ 8,330 $ 81 State 774 59 Total current 9,104 140 Deferred: Federal 886 1,802 State 339 574 Total deferred 1,225 2,376 Total income tax provision $ 10,329 $ 2,516 At December 31, (Thousands of dollars) 2022 2021 Deferred Tax Assets: Accrued liabilities $ 353 $ 80 Allowance for doubtful accounts 77 85 Derivative Contracts 223 1,272 Partnership basis difference 90 98 State Net operating loss carry-forwards 283 470 Total deferred tax assets 1,026 2,005 Deferred Tax Liabilities: Depletion and depreciation 40,994 40,748 Total deferred tax liabilities 40,994 40,748 Net deferred tax liabilities $ 39,968 $ 38,743 The total provision for income taxes for the years ended December 31, 2022 and 2021 varies from the federal statutory tax rate as a result of the following: Years Ended (Thousands of dollars) 2022 2021 Expected tax expense $ 12,389 $ 975 Net changes in deferred assets and liabilities 1,225 2,376 Permanent differences 870 (677 ) State income tax, net of federal benefit 612 47 Provision to return adjustment (4,765 ) 744 Tax Credits — (948 ) Other, net (2 ) (1 ) Total income tax provision $ 10,329 $ 2,516 Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The Company is entitled to percentage depletion on certain of its wells, which is calculated without reference to the basis of the property. To the extent that such depletion exceeds a property’s basis, it creates a permanent difference, which lowers the Company’s effective rate. The availability of the percentage depletion deduction is phased out as an entity’s production exceeds certain levels, and based on the Company’s increasing production the percentage depletion deduction is becoming less significant. The Company is allowed a credit against the Texas Franchise Tax based on net operating losses incurred in prior periods. The credits allowed are $89 thousand in the years 2020 through 2026. Any credits not utilized in a given year due to the allowable credit exceeding the tax liability may be carried forward. No credit may be carried forward past 2026. The value of the credit is calculated net of the federal income tax effect. The Company has not recorded any provision for uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The 2004, 2005, 2006, 2009 and 2017 federal income tax returns have been audited by the Internal Revenue Service. Returns for unexamined earlier years may be examined and adjustments made to the amount of percentage depletion and AMT credit carryforwards flowing from those years into an open tax year, although in general no assessment of income tax may be made for those years on which the statute has closed. Federal and State returns for the years 2020 through 2022 remain open for examination by the relevant taxing authorities. Enactment of the Inflation Reduction Act of 2022 Enactment of the Consolidated Appropriations Act, 2021 Enactment of the Coronavirus Aid, Relief and Economic Security Act. |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | 9. Segment Information and Major Customers The Company operates in one industry – oil and gas exploration, development, operation and servicing. The Company’s oil and gas activities are entirely in the United States. The Company sells its oil and natural gas and liquids production to a number of direct purchasers under direct contracts or through other operators under joint operating agreements. Listed below are the purchasers of the Company’s production which represented more than 10% of the Company’s sales for the years ended 2022 and 2021. 2022 2021 Oil: APA Corporation 55 % 48 % Plains All American Inc. 16 % 18 % Natural gas and liquids: APA Corporation 58 % 52 % Targa Pipeline Mid-Continent 11 % 19 % Although there are no long-term oil and gas purchasing agreements with these purchasers, the Company believes that they will continue to purchase its oil and gas products and, if not, could be replaced by other purchasers. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 10. Financial Instruments Fair Value Measurements: Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The fair values of the Company’s interest rate swaps, natural gas and crude oil price collars and swaps are designated as Level 3. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and December 31, 2021: December 31, 2022 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2022 (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 210 $ 210 Total assets $ — $ — $ 210 $ 210 Liabilities Commodity derivative contracts $ — $ — $ (1,190 ) $ (1,190 ) Total liabilities $ — $ — $ (1,190 ) $ (1,190 ) December 31, 2021 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2021 (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contract $ — $ — $ (5,585 ) $ (5,585 ) Total liabilities $ — $ — $ (5,585 ) $ (5,585 ) The derivative contracts were measured based on quotes from the Company’s counterparties. Such quotes have been derived using valuation models that consider various inputs including current market and contractual prices for the underlying instruments, quoted forward prices for natural gas and crude oil, volatility factors and interest rates, such as a LIBOR curve for a similar length of time as the derivative contract term as applicable. These estimates are verified using comparable NYMEX futures contracts or are compared to multiple quotes obtained from counterparties for reasonableness. The significant unobservable inputs for Level 3 derivative contracts include basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the year ended December 2022. (Thousands of dollars) Net Liabilities – December 31, 2021 $ (5,585 ) Total realized and unrealized gains (losses): Included (a) (12,039 ) Purchases, sales, issuances and settlements 16,644 Net Liabilities – December 31, 2022 $ (980 ) (a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments. Derivative Instruments: The Company is exposed to commodity price and interest rate risk, and management considers periodically the Company’s exposure to cash flow variability resulting from the commodity price changes and interest rate fluctuations. Futures, swaps and options are used to manage the Company’s exposure to commodity price risk inherent in the Company’s oil and gas production operations. The Company does not apply hedge accounting to any of its commodity-based derivatives. Both realized and unrealized gains and losses associated with commodity derivative instruments are recognized in earnings. The following table sets forth the effect of derivative instruments on the consolidated balance sheets at December 31, 2022 and 2021: Fair Value (Thousands of dollars) Balance Sheet Location December 31, 2022 December 31, 2021 Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contract Other current assets $ 162 $ — Natural gas commodity contract Other current assets 48 — Total $ 210 $ — Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (931 ) $ (3,992 ) Natural gas commodity contracts Derivative liability short-term (259 ) (943 ) Crude oil commodity contracts Derivative liability long-term — (490 ) Natural gas commodity contracts Derivative liability long-term — (160 ) Total $ (1,190 ) $ (5,585 ) Total derivative instruments $ (980 ) $ (5,585 ) The following table sets forth the effect of derivative instruments on the consolidated statements of income for the years ended December 31, 2022 and 2021: Location of gain/loss recognized in income Amount of gain/loss recognized in income (Thousands of dollars) 2022 2021 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized gain (loss) on derivative 892 (859 ) Crude oil commodity contracts Unrealized (loss) gain on derivative 3,713 (4,055 ) Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (4,543 ) (1,833 ) Crude oil commodity contracts Realized (loss) on derivative instruments, net (12,101 ) (3,212 ) $ (12,039 ) $ (9,959 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions During 2021 the Company, as managing general partner or managing trustee, repurchased the interests of the partners and trust unit holders in certain of the Partnerships or Trusts in an amount totaling $676,000. Effective December 31, 2021, all managed partnerships and trusts were liquidated. Amounts due to or from related parties primarily represent receipts or expenses, related to oil and gas properties, collected or paid by the Company as agent for the joint venture partners, which may include members of the Company’s Board of Directors. |
Salary Deferral Plan
Salary Deferral Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Salary Deferral Plan | 12. Salary Deferral Plan The Company maintains a salary deferral plan (the “Plan”) in accordance with Internal Revenue Code Section 401(k), as amended. The Plan provides for matching contributions, of which $301,837 and $304,955 were made in 2022 and 2021, respectively |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 13. Earnings per Share Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. The following reconciles amounts reported in the consolidated financial statements: Years Ended December 31, 2022 2021 Net Income (In 000’s) Weighted Average Number of Shares Outstanding Per Share Amount Net Income (In 000’s) Weighted Average Number of Shares Outstanding Per Share Amount Basic $ 48,664 1,953,916 $ 24.91 $ 2,098 1,992,077 $ 1.05 Effect of dilutive securities: Options — 757,254 752,085 Diluted $ 48,664 2,711,170 $ 17.95 $ 2,098 2,744,162 $ 0.76 |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Information | PRIMEENERGY RESOURCES CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION CAPITALIZED COSTS RELATING TO OIL AND GAS PRODUCING ACTIVITIES (Unaudited) As of December 31, (Thousands of dollars) 2022 2021 Proved Developed oil and gas properties $ 555,280 $ 539,484 Proved Undeveloped oil and gas properties — — Total Capitalized Costs 555,280 539,484 Accumulated depreciation, depletion and valuation allowance (385,811 ) (359,742 ) Net Capitalized Costs $ 169,469 $ 179,742 COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES (Unaudited) Years Ended December 31, (Thousands of dollars) 2022 2021 Development Costs $ 13,598 $ 18,678 STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) As of December 31, (Thousands of dollars) 2022 2021 Future cash inflows $ 994,842 $ 501,431 Future production costs (378,160 ) (207,697 ) Future development costs (95,746 ) (18,507 ) Future income tax expenses (110,439 ) (57,798 ) Future Net Cash Flows 410,497 217,429 10% annual discount for estimated timing of cash flows (165,961 ) (81,623 ) Standardized Measure of Discounted Future Net Cash Flows $ 244,536 $ 135,806 See accompanying Notes to Supplementary Information PRIMEENERGY RESOURES CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) The following are the principal sources of change in the standardized measure of discounted future net cash flows during 2022 and 2021: Years Ended (Thousands of dollars) 2022 2021 Sales of oil and gas produced, net of production costs $ (86,302 ) $ (45,322 ) Net changes in prices and production costs 72,640 143,750 Extensions, discoveries and improved recovery 126,029 6,440 Revisions of previous quantity estimates (10,902 ) 18,991 Net change in development costs (2,814 ) (12,904 ) Reserves sold (818 ) (136 ) Reserves purchased — — Accretion of discount 13,581 4,162 Net change in income taxes (8,435 ) (21,180 ) Changes in production rates (timing) and other 5,751 386 Net change 108,730 94,187 Standardized measure of discounted future net cash flow: Beginning of year 135,806 41,619 End of year $ 244,536 $ 135,806 See accompanying Notes to Supplementary Information PRIMEENERGY RESOURCES CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION RESERVE QUANTITY INFORMATION Years Ended December 31, 2022 and 2021 (Unaudited) As of December 31, 2022 2021 Oil (MBbls) NGL’s (MBbls) Gas (MMcf) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Proved Developed Reserves: Beginning of year 5,386 2,882 23,902 2,684 2,258 13,633 Extensions, discoveries and improved recovery 99 74 464 69 1 628 Revisions of previous estimates (375 ) (37 ) 1,309 1,639 813 11,836 Converted from undeveloped reserves — — — 1,747 231 1,067 Reserves sold (28 ) (5 ) (73 ) (15 ) (5 ) (26 ) Reserve purchased — — — — — — Production (939 ) (417 ) (3,325 ) (738 ) (416 ) (3,236 ) End of year 4,143 2,497 22,277 5,386 2,882 23,902 Proved Undeveloped Reserves: Beginning of year — — — 1,784 787 3,897 Extensions, discoveries and improved recovery 3,028 1,833 9,030 (61 ) (557 ) (2,726 ) Revisions of previous estimates — — — 31 4 386 Converted to developed reserves — — — (1,747 ) (231 ) (1,067 ) Reserves Sold — — — (7 ) (4 ) (489 ) End of year 3,028 1,833 9,030 — — — Total Proved Reserves at the End of the Year 7,171 4,330 31,307 5,386 2,882 23,902 RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES Years Ended December 31, 2022 and 2021 (Unaudited) Years Ended December 31, (Thousands of dollars) 2022 2021 Revenue: Oil and gas sales $ 124,118 $ 73,126 Costs and Expenses: Lease operating expenses 37,816 27,804 Depreciation, depletion and accretion 28,068 26,325 Income tax expense 10,329 3,989 Total Costs and Expenses 76,213 58,118 Results of Operations from Producing Activities (excluding corporate overhead and interest costs) $ 47,905 $ 15,008 See accompanying Notes to Supplementary Information PRIMEENERGY RESOURCES CORPORATION AND SUBSIDIARIES NOTES TO SUPPLEMENTARY INFORMATION (Unaudited) 1. Presentation of Reserve Disclosure Information Reserve disclosure information is presented in accordance with U.S. generally accepted accounting principles. The Company’s reserves include amounts attributable to non-controlling 2. Determination of Proved Reserves The estimates of the Company’s proved reserves were determined by an independent petroleum engineer in accordance with U.S. generally accepted accounting principles. The estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development and other factors. Estimated future net revenues were computed by reserves, less estimated future development and production costs based on current costs. Proved reserve quantity estimates are subject to numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. The accuracy of such estimates is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of subsequent drilling, testing and production may cause either upward or downward revision of previous estimates. Further, the volumes considered to be commercially recoverable fluctuate with changes in prices and operating costs. The Company emphasizes that proved reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of currently producing oil and gas properties. Accordingly, these estimates are expected to change as additional information becomes available in the future. 3. Results of Operations from Oil and Gas Producing Activities The results of operations from oil and gas producing activities were prepared in accordance with U.S. generally accepted accounting principles. General and administrative expenses, interest costs and other unrelated costs are not deducted in computing results of operations from oil and gas activities. 4. Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Oil and Gas Reserves The standardized measure of discounted future net cash flows relating to proved oil and gas reserves and the changes of standardized measure of discounted future net cash flows relating to proved oil and gas reserves were prepared in accordance with U.S. generally accepted accounting principles. Future cash inflows are computed as described in Note 2 by applying current prices to year-end Future production and development costs are computed estimating the expenditures to be incurred in developing and producing the oil and gas reserves at year-end, year-end Future income tax expenses are calculated by applying the U.S. tax rate to future pre-tax Future net cash flows are discounted at a rate of 10% annually (pursuant to applicable guidance) to derive the standardized measure of discounted future net cash flows. This calculation does not necessarily represent an estimate of fair market value or the present value of such cash flows since future prices and costs can vary substantially from year-end 5. Changes in Reserves The 2022 and 2021 extensions and discoveries reflect the drilling activity in the Company’s West Texas and Mid-Continent |
Description of Operations and_2
Description of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations: PrimeEnergy Resources Corporation (“PERC”), a Delaware corporation, was organized in March 1973 and is engaged in the development, acquisition and production of oil and natural gas properties. PrimeEnergy Resources Corporation and its subsidiaries are herein referred to as the “Company.” The Company owns leasehold, mineral and royalty interests in producing and non-producing non-operating |
Consolidation and Presentation | Consolidation and Presentation: The consolidated financial statements include the accounts of PrimeEnergy Resources Corporation, its subsidiaries and the Partnerships, using the full consolidation method for those partnerships which are controlled by the Company. The Company’s reserve estimates are based on the full consolidation method. DD&A expense and evaluation of impairment may differ from the Partnership as the Company’s cost basis for the Partnership interests acquired may be different than the cost basis at the Partnership level for properties acquired by the Partnership. All significant intercompany balances and transactions are eliminated in preparing the consolidated financial statements. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on net income and no material impact on any other financial statement captions. |
Subsequent Events | Subsequent Events: Subsequent events have been evaluated through the date that the consolidated financial statements were issued. During this period, there were no material subsequent items requiring disclosure, other than as stated in Footnote 4, to these consolidated financial statements. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, U.S. generally accepted accounting principles require that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. |
Capitalization of Interest | Capitalization of Interest: Interest costs related to financing major oil and gas projects in progress are capitalized until the projects are evaluated or until the projects are substantially complete and ready for their intended use if the projects are evaluated and successful. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews long-lived assets, including oil and gas properties, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recovered. If the carrying amounts are not expected to be recovered by undiscounted cash flows, the assets are impaired, and an impairment loss is recorded. The amount of impairment is based on the estimated fair value of the assets determined by discounting anticipated future net cash flows. |
Fair Value | Fair Value: The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by U.S. generally accepted accounting principles to be measured at fair value. The guidance defines fair value as 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 transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. |
Asset Retirement Obligation | Asset Retirement Obligation: The asset retirement obligation primarily represents the estimated present value of the amount the Company will incur to plug, abandon and remediate producing properties at the end of their productive lives, in accordance with applicable state laws. The Company determined its asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The asset retirement obligation is recorded as a liability at its estimated present value at its inception, with an offsetting increase to producing properties. Periodic accretion of discount of the estimated liability is recorded as an expense in the statements of income. |
Income Taxes | Income Taxes: The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to turn around. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. As of December 31, 2022 and 2021, The Company had no valuation allowance. The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. The effective tax rate and the tax basis of assets and liabilities reflect management’s estimates of the ultimate outcome of various tax uncertainties. |
General and Administrative Expenses | General and Administrative Expenses: General and administrative expenses represent cost and expenses associated with the operation of the Company. |
Earnings Per Common Share | Earnings Per Common Share: Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common stock had been converted to common stock in gain periods. |
Statements of Cash Flows | Statements of Cash Flows: For purposes of the consolidated statements of cash flows, the Company considers short-term, highly liquid investments with original maturities of less than ninety days to be cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk: The Company maintains significant banking relationships with financial institutions in the State of Texas. The Company limits its risk by periodically evaluating the relative credit standing of these financial institutions. The Company’s oil and gas production purchasers consist primarily of independent marketers and major gas pipeline companies. |
Hedging | Hedging: The Company periodically enters into oil and gas financial instruments to manage its exposure to oil and gas price volatility. The oil and gas reference prices upon which the price hedging instruments are based reflect various market indices that have a high degree of historical correlation with actual prices received by the Company. The financial instruments are accounted for in accordance with applicable accounting standards for derivative instruments and hedging activities. Such standards require that applicable derivative instruments be measured at fair market value and recognized as assets or liabilities in the balance sheet. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation is generally established at the inception of a derivative. For derivatives designated as cash flow hedges and meeting applicable effectiveness guidelines, changes in fair value, to the extent effective, are recognized in other comprehensive income until the hedged item is recognized in earnings. Hedge effectiveness is measured at least quarterly based on the relative changes in fair value between the derivative contract and the hedged item over time. Any change in fair value of a derivative resulting from ineffectiveness or an excluded component of the gain/loss is recognized immediately in the statements of income. |
Oil and gas properties | Oil and gas properties: The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive explorat ion costs an The capitalized costs of proved properties are depleted using the unit-of-production in-process |
Field and office Equipment: | Field and office Equipment: Depreciation of all other equipment is determined under the straight-line method using various rates based on useful lives generally ranging from 5 to 10 years. The cost of assets and related accumulated depreciation is removed from the accounts when such assets are disposed of, and any related gains or losses are reflected in current earnings. |
Revenue recognition | Revenue recognition: The majority of the Company’s production is operated by third party operators where we elect to market our products under the joint operating agreements. Accordingly, we receive our proportionate share of revenue proceeds for production sold by the operator under the operator’s marketing agreements. The Company recognizes revenue and any costs indicated by the operator in the related production period. The Company recognizes revenue related to production from properties operated by the Company when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Oil sales. NGL and gas sales |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Balance Sheet Amounts | Accounts receivable, net at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Joint interest billings $ 1,806 $ 1,902 Trade receivables 1,762 1,429 Oil and gas sales 8,894 11,154 Other 21 94 12,483 14,579 Less: Allowance for doubtful accounts (336 ) (371 ) Total $ 12,147 $ 14,208 Accounts payable at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Trade $ 5,142 $ 2,390 Royalty and other owners 3,600 2,802 Partner advances 1,111 1,209 Other 1,598 881 Total $ 11,451 $ 7,282 Accrued liabilities at December 31, 2022 and 2021 consisted of the following: December 31, (Thousands of dollars) 2022 2021 Compensation and related expenses $ 9,743 $ 3,919 Property costs 6,413 2,901 Taxes 9,352 893 Other 242 108 Total $ 25,750 $ 7,821 |
Other Long-Term Obligations a_2
Other Long-Term Obligations and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Operating and Financing Lease Obligation | The payment schedule for the Company’s operating lease obligations as of December 31, 2022 is as follows: (Thousands of dollars) Operating Leases 2023 $ 684 2024 202 2025 27 Total undiscounted lease payments $ 913 Less: Amount associated with discounting (61 ) Total net operating lease liabilities $ 852 Less: Current portion included in Other current liabilities 647 Non-current $ 205 |
Reconciliation of Liability for Plugging and Abandonment Costs | A reconciliation of the liability for plugging and abandonment costs for the years ended December 31, 2022 and 2021 is as follows: Years Ended (Thousands of dollars) 2022 2021 Asset retirement obligation at beginning of period $ 14,295 $ 13,660 Net wells placed on production 11 724 Liabilities settled (1,407 ) (1,047 ) Dispositions (344 ) (52 ) Accretion expense 666 642 Revisions in estimated liabilities 2,222 368 Asset retirement obligation at end of period $ 15,443 $ 14,295 Less: Current portion included in Current portion of asset retirement and other long-term obligations 1,918 1,073 Long-term Asset Retirement Obligations included in Asset Retirement Obligations $ 13,525 $ 13,222 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Provision (Benefit) for Income Taxes | The components of the provision for income taxes for the years ended December 31, 2022 and 2021 are as follows: Years Ended (Thousands of dollars) 2022 2021 Current: Federal $ 8,330 $ 81 State 774 59 Total current 9,104 140 Deferred: Federal 886 1,802 State 339 574 Total deferred 1,225 2,376 Total income tax provision $ 10,329 $ 2,516 |
Components of Net Deferred Tax Assets and Liabilities | At December 31, (Thousands of dollars) 2022 2021 Deferred Tax Assets: Accrued liabilities $ 353 $ 80 Allowance for doubtful accounts 77 85 Derivative Contracts 223 1,272 Partnership basis difference 90 98 State Net operating loss carry-forwards 283 470 Total deferred tax assets 1,026 2,005 Deferred Tax Liabilities: Depletion and depreciation 40,994 40,748 Total deferred tax liabilities 40,994 40,748 Net deferred tax liabilities $ 39,968 $ 38,743 |
Provision for Income Taxes Varies from Federal Statutory Tax Rate | The total provision for income taxes for the years ended December 31, 2022 and 2021 varies from the federal statutory tax rate as a result of the following: Years Ended (Thousands of dollars) 2022 2021 Expected tax expense $ 12,389 $ 975 Net changes in deferred assets and liabilities 1,225 2,376 Permanent differences 870 (677 ) State income tax, net of federal benefit 612 47 Provision to return adjustment (4,765 ) 744 Tax Credits — (948 ) Other, net (2 ) (1 ) Total income tax provision $ 10,329 $ 2,516 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and December 31, 2021: December 31, 2022 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2022 (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ 210 $ 210 Total assets $ — $ — $ 210 $ 210 Liabilities Commodity derivative contracts $ — $ — $ (1,190 ) $ (1,190 ) Total liabilities $ — $ — $ (1,190 ) $ (1,190 ) December 31, 2021 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2021 (Thousands of dollars) Assets Commodity derivative contracts $ — $ — $ — $ — Total assets $ — $ — $ — $ — Liabilities Commodity derivative contract $ — $ — $ (5,585 ) $ (5,585 ) Total liabilities $ — $ — $ (5,585 ) $ (5,585 ) |
Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the year ended December 2022. (Thousands of dollars) Net Liabilities – December 31, 2021 $ (5,585 ) Total realized and unrealized gains (losses): Included (a) (12,039 ) Purchases, sales, issuances and settlements 16,644 Net Liabilities – December 31, 2022 $ (980 ) (a) Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments. |
Effect of Derivative Instruments on Consolidated Balance Sheets | The following table sets forth the effect of derivative instruments on the consolidated balance sheets at December 31, 2022 and 2021: Fair Value (Thousands of dollars) Balance Sheet Location December 31, 2022 December 31, 2021 Asset Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contract Other current assets $ 162 $ — Natural gas commodity contract Other current assets 48 — Total $ 210 $ — Liability Derivatives: Derivatives not designated as cash-flow hedging instruments: Crude oil commodity contracts Derivative liability short-term $ (931 ) $ (3,992 ) Natural gas commodity contracts Derivative liability short-term (259 ) (943 ) Crude oil commodity contracts Derivative liability long-term — (490 ) Natural gas commodity contracts Derivative liability long-term — (160 ) Total $ (1,190 ) $ (5,585 ) Total derivative instruments $ (980 ) $ (5,585 ) |
Effect of Derivative Instruments on Consolidated Statements of Operations | The following table sets forth the effect of derivative instruments on the consolidated statements of income for the years ended December 31, 2022 and 2021: Location of gain/loss recognized in income Amount of gain/loss recognized in income (Thousands of dollars) 2022 2021 Derivatives not designated as cash-flow hedge instruments: Natural gas commodity contracts Unrealized gain (loss) on derivative 892 (859 ) Crude oil commodity contracts Unrealized (loss) gain on derivative 3,713 (4,055 ) Natural gas commodity contracts Realized gain (loss) on derivative instruments, net (4,543 ) (1,833 ) Crude oil commodity contracts Realized (loss) on derivative instruments, net (12,101 ) (3,212 ) $ (12,039 ) $ (9,959 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Share | The following reconciles amounts reported in the consolidated financial statements: Years Ended December 31, 2022 2021 Net Income (In 000’s) Weighted Average Number of Shares Outstanding Per Share Amount Net Income (In 000’s) Weighted Average Number of Shares Outstanding Per Share Amount Basic $ 48,664 1,953,916 $ 24.91 $ 2,098 1,992,077 $ 1.05 Effect of dilutive securities: Options — 757,254 752,085 Diluted $ 48,664 2,711,170 $ 17.95 $ 2,098 2,744,162 $ 0.76 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities | CAPITALIZED COSTS RELATING TO OIL AND GAS PRODUCING ACTIVITIES (Unaudited) As of December 31, (Thousands of dollars) 2022 2021 Proved Developed oil and gas properties $ 555,280 $ 539,484 Proved Undeveloped oil and gas properties — — Total Capitalized Costs 555,280 539,484 Accumulated depreciation, depletion and valuation allowance (385,811 ) (359,742 ) Net Capitalized Costs $ 169,469 $ 179,742 |
Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities | COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES (Unaudited) Years Ended December 31, (Thousands of dollars) 2022 2021 Development Costs $ 13,598 $ 18,678 |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) As of December 31, (Thousands of dollars) 2022 2021 Future cash inflows $ 994,842 $ 501,431 Future production costs (378,160 ) (207,697 ) Future development costs (95,746 ) (18,507 ) Future income tax expenses (110,439 ) (57,798 ) Future Net Cash Flows 410,497 217,429 10% annual discount for estimated timing of cash flows (165,961 ) (81,623 ) Standardized Measure of Discounted Future Net Cash Flows $ 244,536 $ 135,806 |
Standardized Measure of Discounted Future Net Cash Flows and Changes therein Relating to Proved Oil and Gas Reserves | STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN RELATING TO PROVED OIL AND GAS RESERVES (Unaudited) The following are the principal sources of change in the standardized measure of discounted future net cash flows during 2022 and 2021: Years Ended (Thousands of dollars) 2022 2021 Sales of oil and gas produced, net of production costs $ (86,302 ) $ (45,322 ) Net changes in prices and production costs 72,640 143,750 Extensions, discoveries and improved recovery 126,029 6,440 Revisions of previous quantity estimates (10,902 ) 18,991 Net change in development costs (2,814 ) (12,904 ) Reserves sold (818 ) (136 ) Reserves purchased — — Accretion of discount 13,581 4,162 Net change in income taxes (8,435 ) (21,180 ) Changes in production rates (timing) and other 5,751 386 Net change 108,730 94,187 Standardized measure of discounted future net cash flow: Beginning of year 135,806 41,619 End of year $ 244,536 $ 135,806 |
Reserve Quantity Information | RESERVE QUANTITY INFORMATION Years Ended December 31, 2022 and 2021 (Unaudited) As of December 31, 2022 2021 Oil (MBbls) NGL’s (MBbls) Gas (MMcf) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Proved Developed Reserves: Beginning of year 5,386 2,882 23,902 2,684 2,258 13,633 Extensions, discoveries and improved recovery 99 74 464 69 1 628 Revisions of previous estimates (375 ) (37 ) 1,309 1,639 813 11,836 Converted from undeveloped reserves — — — 1,747 231 1,067 Reserves sold (28 ) (5 ) (73 ) (15 ) (5 ) (26 ) Reserve purchased — — — — — — Production (939 ) (417 ) (3,325 ) (738 ) (416 ) (3,236 ) End of year 4,143 2,497 22,277 5,386 2,882 23,902 Proved Undeveloped Reserves: Beginning of year — — — 1,784 787 3,897 Extensions, discoveries and improved recovery 3,028 1,833 9,030 (61 ) (557 ) (2,726 ) Revisions of previous estimates — — — 31 4 386 Converted to developed reserves — — — (1,747 ) (231 ) (1,067 ) Reserves Sold — — — (7 ) (4 ) (489 ) End of year 3,028 1,833 9,030 — — — Total Proved Reserves at the End of the Year 7,171 4,330 31,307 5,386 2,882 23,902 |
Results of Operations from Oil and Gas Producing Activities | RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES Years Ended December 31, 2022 and 2021 (Unaudited) Years Ended December 31, (Thousands of dollars) 2022 2021 Revenue: Oil and gas sales $ 124,118 $ 73,126 Costs and Expenses: Lease operating expenses 37,816 27,804 Depreciation, depletion and accretion 28,068 26,325 Income tax expense 10,329 3,989 Total Costs and Expenses 76,213 58,118 Results of Operations from Producing Activities (excluding corporate overhead and interest costs) $ 47,905 $ 15,008 |
Description of Operations and_3
Description of Operations and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Well | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Number of wells under non-operating interests | 800 | |
Valuation allowance | $ | $ 0 | $ 0 |
Maximum maturity period of cash and cash equivalents | 90 days | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of wells operating by the company | 630 | |
Depreciation period of equipment | 5 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period of equipment | 10 years |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 14, 2022 USD ($) a | Sep. 30, 2022 USD ($) a | Mar. 31, 2022 USD ($) a | Jun. 30, 2022 USD ($) a | Dec. 31, 2021 USD ($) a | |
Business Acquisition [Line Items] | |||||
Proceeds from liquidation of partnerships | $ | $ 632,000 | ||||
Non cash distribution of non controlling interest | $ | $ 647,000 | ||||
Proceeds from Divestiture of Businesses | $ | $ 16,100 | ||||
Number of acres exchanged | a | 725 | ||||
Number of contiguous acres block created | a | 1,200 | ||||
Number of acre created | a | 2,560 | ||||
OKLAHOMA | |||||
Business Acquisition [Line Items] | |||||
Proceeds from Divestiture of Businesses | $ | $ 423,700 | $ 845,000 | |||
TEXAS | |||||
Business Acquisition [Line Items] | |||||
Number of Area of Land | a | 5.9 | ||||
Cash Acquired from Acquisition | $ | $ 29,500 | ||||
Number of Acres Sold | a | 1,809 | ||||
Proceeds from Divestiture of Businesses | $ | $ 14,000 | $ 1,450 | |||
CANADA | |||||
Business Acquisition [Line Items] | |||||
Number of Acres Sold | a | 113 | 241 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information - Components of Balance Sheet Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable: | ||
Joint interest billings | $ 1,806 | $ 1,902 |
Trade receivables | 1,762 | 1,429 |
Oil and gas sales | 8,894 | 11,154 |
Other | 21 | 94 |
Accounts Receivable, Gross | 12,483 | 14,579 |
Less: Allowance for doubtful accounts | (336) | (371) |
Total | 12,147 | 14,208 |
Accounts Payable: | ||
Trade | 5,142 | 2,390 |
Royalty and other owners | 3,600 | 2,802 |
Partner advances | 1,111 | 1,209 |
Other | 1,598 | 881 |
Total | 11,451 | 7,282 |
Accrued Liabilities: | ||
Compensation and related expenses | 9,743 | 3,919 |
Property costs | 6,413 | 2,901 |
Taxes | 9,352 | 893 |
Other | 242 | 108 |
Total | $ 25,750 | $ 7,821 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||||
Jan. 20, 2023 | Mar. 16, 2022 | Feb. 18, 2022 | Dec. 20, 2021 | May 31, 2020 | Dec. 31, 2022 | Mar. 31, 2023 | Jul. 05, 2022 | Dec. 31, 2021 | Feb. 15, 2017 | |
Debt Instrument [Line Items] | ||||||||||
Outstanding borrowings under revolving credit facility | $ 0 | $ 36,000 | ||||||||
Credit facility remaining borrowing capacity | $ 14,000 | |||||||||
Line of Credit Facility, Decrease, Forgiveness | $ 1,200 | $ 481 | ||||||||
2022 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing capacity | $ 300,000 | |||||||||
Equipment Loan, face amount | $ 75,000 | |||||||||
Loan Under Paycheck Protection Programme [Member] | Eastern Oilwells Service Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from scheme based loan | $ 470 | |||||||||
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company And Eastern Oilwells Company [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt stated rate of interest | 1% | |||||||||
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company And Eastern Oilwells Company [Member] | Possible Forgiveness Of Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Period of forgiveness of term loan | 10 months | |||||||||
Loan Under Paycheck Protection Programme [Member] | Prime Operating Company [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from scheme based loan | $ 1,280 | |||||||||
Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding borrowings under revolving credit facility | $ 60,000 | |||||||||
Subsequent Event [Member] | Maximum [Member] | 2022 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in Borrowing Base | $ 75,000 | |||||||||
Subsequent Event [Member] | Minimum [Member] | 2022 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in Borrowing Base | $ 60,000 | |||||||||
2017 Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing capacity | $ 300,000 | |||||||||
Credit agreement date | Feb. 15, 2017 | |||||||||
Line of credit facility, expiration date | Feb. 15, 2021 | |||||||||
Equipment Loan, face amount | $ 50,000 | |||||||||
Equipment Loan, maturity date | Feb. 11, 2023 | |||||||||
2017 Credit Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate | 3% | |||||||||
LIBOR Margin Rate | 4% | |||||||||
2017 Credit Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate | 2% | |||||||||
LIBOR Margin Rate | 3% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding borrowings under revolving credit facility | $ 11,000 | |||||||||
Credit facility remaining borrowing capacity | $ 64,000 |
Other Long-Term Obligations a_3
Other Long-Term Obligations and Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average discount rate | 7.54% | |
Operating lease weighted-average remaining lease term | 11 months | 15 months |
Operating lease payments | $ 673,000 | $ 599,000 |
Operating lease cost | $ 628,000 | 577,000 |
Lease period description | The Company leases office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Lease assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. | |
Rent Expenses | $ 755,000,000 | $ 653,000,000 |
Lease Payments Due Next year | 673,000 | |
Lease payments due next two years | 684,000 | |
Lease payments due next third years | 202,000 | |
Lease payments due next four years | $ 27,000 |
Other Long-Term Obligations a_4
Other Long-Term Obligations and Commitments - Summary of Operating and Financing Lease Obligation (Detail) | Dec. 31, 2022 USD ($) |
2023 | $ 684,000 |
2024 | 202,000 |
2025 | 27,000 |
Total undiscounted lease payments | 913,000 |
Less: Amount associated with discounting | (61,000) |
Total net operating lease liabilities | 852,000 |
Less: Current portion included in Other current liabilities | 647,000 |
Non-current portion included in Other liabilities | $ 205,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total net operating lease liabilities |
Other Long-Term Obligations a_5
Other Long-Term Obligations and Commitments - Reconciliation of Liability for Plugging and Abandonment Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Asset retirement obligation | $ 14,295 | $ 13,660 |
Net wells placed on production | 11 | 724 |
Liabilities settled | (1,407) | (1,047) |
Dispositions | (344) | (52) |
Accretion expense | 666 | 642 |
Revisions in estimated liabilities | 2,222 | 368 |
Asset retirement obligation | 15,443 | 14,295 |
Less: Current portion included in Current portion of asset retirement and other long-term obligations | 1,918 | 1,073 |
Long-term Asset Retirement Obligations included in Asset Retirement Obligations | $ 13,525 | $ 13,222 |
Stock Options and Other Compe_2
Stock Options and Other Compensation - Additional Information (Detail) | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 $ / shares shares | May 31, 1989 Officers |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, shares | shares | 767,500 | 767,500 | |
Number of key executive officers to whom non-statutory stock options granted | Officers | 4 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average exercise price | $ / shares | $ 1 | $ 1 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average exercise price | $ / shares | $ 1.25 | $ 1.25 | |
Nonstatutory Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercisable, shares | shares | 767,500 | 767,500 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Federal | $ 8,330 | $ 81 |
State | 774 | 59 |
Total current | 9,104 | 140 |
Deferred: | ||
Federal | 886 | 1,802 |
State | 339 | 574 |
Total deferred | 1,225 | 2,376 |
Total income tax provision | $ 10,329 | $ 2,516 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets: | ||
Accrued liabilities | $ (353) | $ (80) |
Allowance for doubtful accounts | 77 | 85 |
Derivative Contracts | 223 | 1,272 |
Partnership basis difference | 90 | 98 |
State Net operating loss carry-forwards | 283 | 470 |
Total deferred tax assets | 1,026 | 2,005 |
Deferred Tax Liabilities: | ||
Depletion and depreciation | 40,994 | 40,748 |
Total deferred tax liabilities | 40,994 | 40,748 |
Net deferred tax liabilities | $ 39,968 | $ 38,743 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes Varies from Federal Statutory Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Expected tax expense | $ 12,389 | $ 975 |
Net changes in deferred assets and liabilities | 1,225 | 2,376 |
Permanent differences | 870 | (677) |
State income tax, net of federal benefit | 612 | 47 |
Provision to return adjustment | (4,765) | 744 |
Tax Credits | 0 | (948) |
Other, net | (2) | (1) |
Total income tax provision | $ 10,329 | $ 2,516 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 16, 2022 | Dec. 31, 2022 | Dec. 31, 2020 | |
Income Taxes And Tax Related [Line Items] | |||
Tax credit operating carry forward losses allowed after the period, Description | No credit may be carried forward past 2026 | ||
Inflation Reduction Act Of2022 [Member] | |||
Income Taxes And Tax Related [Line Items] | |||
Corporate alternative minimum tax | 15% | ||
Average Annual Adjusted Financial Income Taxable Threshold | $ 1,000,000 | ||
Texas Franchise Tax [Member] | 2019 through 2026 [Member] | |||
Income Taxes And Tax Related [Line Items] | |||
Expected credits against regular tax and refunds of previously paid taxes | $ 89 |
Segment Information and Major_2
Segment Information and Major Customers - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member] | ||
Revenue, Major Customer [Line Items] | ||
Customer purchases with respect of company's sales | 10% | 10% |
Segment Information and Major_3
Segment Information and Major Customers - Segment Information by Major Customers (Detail) - Sales [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Oil Purchasers [Member] | Plains All American Inc.[Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue by major customers | 16% | 18% |
Oil Purchasers [Member] | APA Corporation [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue by major customers | 55% | 48% |
Natural gas and liquids [Member] | Targa Pipeline Mid-Continent West Tex, LLC [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue by major customers | 11% | 19% |
Natural gas and liquids [Member] | APA Corporation [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue by major customers | 58% | 52% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative assets | $ 210 | $ 0 |
Liabilities | ||
Derivative liabilities | (1,190) | (5,585) |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 210 | 0 |
Liabilities | ||
Derivative liabilities | (1,190) | (5,585) |
Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 210 | 0 |
Liabilities | ||
Derivative liabilities | (1,190) | (5,585) |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 210 | 0 |
Liabilities | ||
Derivative liabilities | (1,190) | (5,585) |
Significant Unobservable Inputs (Level 3) [Member] | Commodity Contract [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative assets | 210 | 0 |
Liabilities | ||
Derivative liabilities | $ (1,190) | $ (5,585) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Total realized and unrealized (gains) losses: | ||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Liabilities at beginning of period | $ (5,585) | |
Total realized and unrealized (gains) losses: | ||
Included in earnings | (12,039) | [1] |
Purchases, sales, issuances and settlements | 16,644 | |
Net Liabilities end of period | $ (980) | |
[1]Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments. |
Financial Instruments - Effect
Financial Instruments - Effect of Derivative Instruments on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 210 | $ 0 |
Derivative liabilities | (1,190) | (5,585) |
Total derivative instruments | (980) | (5,585) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 48 | 0 |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability short-term [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (259) | (943) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Derivative liability Long Term [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | (160) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 162 | |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability short-term [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (931) | (3,992) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Derivative liability Long Term [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ (490) |
Financial Instruments - Effec_2
Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (12,039) | $ (9,959) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Unrealized gain (loss) on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ 892 | $ (859) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Natural Gas Commodity Contracts [Member] | Realized gain (loss) on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | (4,543) | (1,833) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Unrealized (loss) gain on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | 3,713 | (4,055) |
Derivatives Not Designated as Cash-Flow Hedging Instruments [Member] | Crude Oil Commodity Contracts [Member] | Realized (loss) on derivative instruments, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/loss recognized in income | $ (12,101) | $ (3,212) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | |
Purchase of non-controlling interests | $ 44,000 |
Partnership And Trust [Member] | |
Related Party Transaction [Line Items] | |
Purchase of non-controlling interests | $ 676,000 |
Salary Deferral Plan - Addition
Salary Deferral Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Salary deferral plan, discretionary and matching contribution | $ 301,837 | $ 304,955 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net (Loss) Income, Basic | $ 48,664 | $ 2,098 |
Net (Loss) Income, Diluted | $ 48,664 | $ 2,098 |
Weighted Average Number of Shares Outstanding, Basic | 1,953,916 | 1,992,077 |
Weighted Average Number of Shares Outstanding, Options | 757,254 | 752,085 |
Weighted Average Number of Shares Outstanding, Diluted | 2,711,170 | 2,744,162 |
Per Share Amount, Basic | $ 24.91 | $ 1.05 |
Per Share Amount, Diluted | $ 17.95 | $ 0.76 |
Supplementary Information - Cap
Supplementary Information - Capitalized Costs Relating to Oil and Gas Producing Activities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Proved Developed oil and gas properties | $ 555,280 | $ 539,484 |
Proved Undeveloped oil and gas properties | 0 | |
Total Capitalized Costs | 555,280 | 539,484 |
Accumulated depreciation, depletion and valuation allowance | (385,811) | (359,742) |
Net Capitalized Costs | $ 169,469 | $ 179,742 |
Supplementary Information - Cos
Supplementary Information - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Development Costs | $ 13,598 | $ 18,678 |
Supplementary Information - Sta
Supplementary Information - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Future cash inflows | $ 994,842 | $ 501,431 |
Future production costs | (378,160) | (207,697) |
Future development costs | (95,746) | (18,507) |
Future income tax expenses | (110,439) | (57,798) |
Future Net Cash Flows | 410,497 | 217,429 |
10% annual discount for estimated timing of cash flows | (165,961) | (81,623) |
Standardized Measure of Discounted Future Net Cash Flows | $ 244,536 | $ 135,806 |
Supplementary Information - S_2
Supplementary Information - Standardized Measure of Discounted Future Net Cash Flows and Changes therein Relating to Proved Oil and Gas Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales of oil and gas produced, net of production costs | $ (86,302) | $ (45,322) |
Net changes in prices and production costs | 72,640 | 143,750 |
Extensions, discoveries and improved recovery | 126,029 | 6,440 |
Revisions of previous quantity estimates | (10,902) | 18,991 |
Net change in development costs | (2,814) | (12,904) |
Reserves sold | (818) | (136) |
Reserves purchased | 0 | 0 |
Accretion of discount | 13,581 | 4,162 |
Net change in income taxes | (8,435) | (21,180) |
Changes in production rates (timing) and other | 5,751 | 386 |
Net change | 108,730 | 94,187 |
Standardized measure of discounted future net cash flow: | ||
Beginning of year | 135,806 | 41,619 |
End of year | $ 244,536 | $ 135,806 |
Supplementary Information - Res
Supplementary Information - Reserve Quantity Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 MBbls MMcf | Dec. 31, 2021 MBbls MMcf | |
Oil [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | 5,386 | 2,684 |
Extensions, discoveries and improved recovery | 99 | 69 |
Revisions of previous estimates | (375) | 1,639 |
Converted from undeveloped reserves | 0 | 1,747 |
Reserves sold | (28) | (15) |
Reserve purchased | 0 | |
Production | (939) | (738) |
End of year | 4,143 | 5,386 |
Proved Undeveloped Reserves: | ||
Beginning of year | 0 | 1,784 |
Extensions, discoveries and improved recovery | 3,028 | (61) |
Revisions of previous estimates | 0 | 31 |
Converted to developed reserves | 0 | (1,747) |
Reserves Sold | 0 | (7) |
End of year | 3,028 | 0 |
Total Proved Reserves at the End of the Year | 7,171 | 5,386 |
NGLs [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | 2,882 | 2,258 |
Extensions, discoveries and improved recovery | 74 | 1 |
Revisions of previous estimates | (37) | 813 |
Converted from undeveloped reserves | 0 | 231 |
Reserves sold | (5) | (5) |
Reserve purchased | 0 | |
Production | (417) | (416) |
End of year | 2,497 | 2,882 |
Proved Undeveloped Reserves: | ||
Beginning of year | 0 | 787 |
Extensions, discoveries and improved recovery | 1,833 | (557) |
Revisions of previous estimates | 0 | 4 |
Converted to developed reserves | 0 | (231) |
Reserves Sold | 0 | (4) |
End of year | 1,833 | 0 |
Total Proved Reserves at the End of the Year | 4,330 | 2,882 |
Gas [Member] | ||
Proved Developed Reserves: | ||
Beginning of year | MMcf | 23,902 | 13,633 |
Extensions, discoveries and improved recovery | MMcf | 464 | 628 |
Revisions of previous estimates | MMcf | 1,309 | 11,836 |
Converted from undeveloped reserves | MMcf | 0 | 1,067 |
Reserves sold | MMcf | (73) | (26) |
Reserve purchased | MMcf | 0 | |
Production | MMcf | (3,325) | (3,236) |
End of year | MMcf | 22,277 | 23,902 |
Proved Undeveloped Reserves: | ||
Beginning of year | MMcf | 0 | 3,897 |
Extensions, discoveries and improved recovery | MMcf | 9,030 | (2,726) |
Revisions of previous estimates | MMcf | 0 | 386 |
Converted to developed reserves | MMcf | 0 | (1,067) |
Reserves Sold | MMcf | 0 | (489) |
End of year | MMcf | 9,030 | 0 |
Total Proved Reserves at the End of the Year | MMcf | 31,307 | 23,902 |
Supplementary Information - R_2
Supplementary Information - Results of Operations from Oil and Gas Producing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | ||
Oil and gas sales | $ 124,118 | $ 73,126 |
Costs and Expenses: | ||
Lease operating expenses | 37,816 | 27,804 |
Depreciation, depletion and accretion | 28,068 | 26,325 |
Income tax expense | 10,329 | 3,989 |
Total Costs and Expenses | 76,213 | 58,118 |
Results of Operations from Producing Activities (excluding corporate overhead and interest costs) | $ 47,905 | $ 15,008 |
Supplementary Information - Add
Supplementary Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interest rate of Company's reserves | 10% |
Rate of discounted future net cash flows | 10% |
Percentage of discounted future prices | 10% |