Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash Flows From Operating Activities      
Net income (loss) $ 3,322,892 $ (253,411,828) $ 29,496,551
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation, depletion and amortization 37,167,967 43,010,660 56,204,269
Ceiling test impairment   277,501,943  
Asset retirement obligation accretion 744,045 906,616 943,707
Amortization of deferred financing costs 665,882 1,190,109 991,310
Share-based compensation 2,418,323 5,364,162 3,082,625
Shares issued for services   23,800  
Deferred income tax expense (benefit) 265,479 (3,975,170) 9,500,517
Excess tax expense (benefit) related to share-based compensation (175,187) (2,026,006) 3,855,389
Adjustment to deferred tax asset for change in effective tax rate     431,748
(Gain) loss on derivative contracts 77,853,141 (21,366,068) 2,937,024
Cash received (paid) for derivative settlements, net (52,768,154) 22,522,591 63,054
Changes in assets and liabilities:      
Accounts receivable (9,483,639) 7,896,517 (10,035,648)
Prepaid expenses and retainers (541,920) 3,586,146 (1,878,667)
Accounts payable 15,449,215 (8,380,594) 12,320,308
Settlement of asset retirement obligation (2,186,832) (683,623) (1,295,966)
Net Cash Provided by Operating Activities 72,731,212 72,159,255 106,616,221
Cash Flows From Investing Activities      
Payments for the Wishbone Acquisition     (276,061,594)
Payments to purchase oil and natural gas properties (1,368,437) (1,317,313) (3,400,411)
Proceeds from divestiture of oil and natural gas properties 2,000,000   8,547,074
Payments to develop oil and natural gas properties (51,302,131) (42,457,745) (152,125,320)
Purchase of fixed assets subject to depreciation (568,832) (55,339)  
Net Cash (Used in) Investing Activities (51,239,400) (43,830,397) (423,040,251)
Cash Flows From Financing Activities      
Proceeds from revolving line of credit 60,150,000 26,500,000 327,000,000
Payments on revolving line of credit (83,150,000) (80,000,000)  
Proceeds from issuance of common stock and warrants 367,509 19,383,131  
Proceeds from option exercise 200,000    
Payments for taxes withheld on vested restricted shares (385,330)    
Proceeds from notes payable 1,297,718    
Payments on notes payable (711,308)    
Payment of deferred financing costs (104,818) (355,049) (3,781,657)
Reduction of financing lease liabilities (325,901) (282,928) (153,417)
Net Cash (Used in) Financing Activities (22,662,130) (34,754,846) 323,064,926
Net Increase (Decrease) in Cash (1,170,318) (6,425,988) 6,640,896
Cash at Beginning of Period 3,578,634 10,004,622 3,363,726
Cash at End of Period 2,408,316 3,578,634 10,004,622
Supplemental Cash Flow Information      
Cash paid for interest 14,110,421 16,911,344 10,364,313
Noncash Investing and Financing Activities      
Asset retirement obligation incurred during development 171,390 99,436 631,727
Asset retirement obligation acquired 662,705   39,701
Asset retirement obligation revision of estimate 435,419 34,441  
Asset retirement obligation sold (2,934,126)    
Operating lease assets obtained in exchange for new operating lease liability 839,536 823,727 2,319,185
Operating lease asset revision (621,636)    
Financing lease assets obtained in exchange for new financing lease liability     858,513
Prepaid asset settled in divestiture of oil and natural gas properties     1,019,876
Stock issued in property acquisition returned in final settlement   103,385  
Capitalized expenditures attributable to drilling projects financed through current liabilities 309,365 $ 1,415,073 15,170,000
Supplemental Schedule of Investing Activities Wishbone Acquisition      
Assumption of joint interest billing receivable 1,464,394   1,464,394
Assumption of prepaid assets 2,864,554   2,864,554
Assumption of accounts and revenue payables (1,234,861)   (1,234,861)
Asset retirement obligation incurred through acquisition $ (3,705,941)   (3,705,941)
Common stock issued as partial consideration in acquisition     (28,331,327)
Oil and gas properties subject to amortization     305,004,775
Cash paid     $ 276,061,594