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, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows From Operating Activities      
Net income $ 104,864,641 $ 138,635,025 $ 3,322,892
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, depletion and amortization 88,610,291 55,740,767 37,167,967
Asset retirement obligation accretion 1,425,686 983,432 744,045
Amortization of deferred financing costs 4,920,714 2,706,021 665,882
Share-based compensation 8,833,425 7,162,231 2,418,323
Bad debt expense 134,007 242,247 0
Deferred income tax expense (benefit) (425,275) 8,720,992 265,479
Excess tax expense (benefit) related to share-based compensation 478,304 (312,268) (175,187)
(Gain) loss on derivative contracts (2,767,162) 21,532,659 77,853,141
Cash paid for derivative settlements, net (9,084,920) (62,525,954) (52,768,154)
Changes in operating assets and liabilities:      
Accounts receivable 1,154,085 (17,214,150) (9,483,639)
Inventory 3,113,782 (5,597,845) 0
Prepaid expenses and other assets 226,688 (1,163,509) (541,920)
Accounts payable (1,451,422) 50,808,461 15,449,215
Settlement of asset retirement obligation (1,862,385) (2,741,380) (2,186,832)
Net Cash Provided by Operating Activities 198,170,459 196,976,729 72,731,212
Cash Flows From Investing Activities      
Payments to purchase oil and natural gas properties (2,162,585) (1,563,703) (1,368,437)
Payments to develop oil and natural gas properties (152,559,314) (129,332,155) (51,302,131)
Payments to acquire or improve fixed assets subject to depreciation (492,317) (319,945) (568,832)
Sale of fixed assets subject to depreciation 332,229 134,600 0
Proceeds from divestiture of oil and natural gas properties 1,554,558 23,700 2,000,000
Net Cash Used in Investing Activities (222,573,288) (308,881,290) (51,239,400)
Cash Flows From Financing Activities      
Proceeds from revolving line of credit 225,000,000 636,000,000 60,150,000
Payments on revolving line of credit (215,000,000) (511,000,000) (83,150,000)
Proceeds from issuance of common stock and warrants 12,301,596 8,203,126 367,509
Proceeds from option exercise 0 0 200,000
Payments for taxes withheld on vested restricted shares, net (520,153) (521,199) (385,330)
Proceeds from notes payable 1,637,513 1,323,354 1,297,718
Payments on notes payable (1,603,659) (1,409,884) (711,308)
Payment of deferred financing costs (52,222) (18,891,528) (104,818)
Reduction of financing lease liabilities (776,388) (495,098) (325,901)
Net Cash Provided by (Used in) Financing Activities 20,986,687 113,208,771 (22,662,130)
Net Increase (Decrease) in Cash (3,416,142) 1,304,210 (1,170,318)
Cash at Beginning of Period 3,712,526 2,408,316 3,578,634
Cash at End of Period 296,384 3,712,526 2,408,316
Supplemental Cash Flow Information      
Cash paid for interest 38,009,164 19,818,623 14,110,421
Cash paid for income taxes 72,213 0 0
Noncash Investing and Financing Activities      
Asset retirement obligation incurred during development 439,528 353,008 171,390
Asset retirement obligation acquired 2,090,777 14,538,550 662,705
Asset retirement obligation revision of estimate 53,826 0 435,419
Asset retirement obligation sold (5,340,211) 0 (2,934,126)
Operating lease assets obtained in exchange for new operating lease liability 1,713,677 754,894 839,536
Operating lease asset revision 0 0 (621,636)
Financing lease assets obtained in exchange for new financing lease liability 894,996 952,101 0
Change in capitalized expenditures attributable to drilling projects financed through current liabilities (2,241,192) 9,179,003 309,365
Delaware Basin      
Cash Flows From Investing Activities      
Proceeds from sale of properties 7,600,699 0 0
New Mexico Divestiture      
Cash Flows From Investing Activities      
Proceeds from sale of properties 3,891,757 0 0
Founders Acquisition      
Cash Flows From Investing Activities      
Payments for acquisitions (62,227,145) 0 0
Investing Activities - Cash Paid      
Deposit in escrow 7,500,000 0 0
Cash paid by bank to Stronghold on closing 42,502,799 0 0
Interest from escrow deposit 1,747 0 0
Direct transaction costs 1,361,843 0 0
Post-close adjustments (4,139,244) 0 0
Payment of deferred cash payment 15,000,000 0 0
Payment for acquisition 62,227,145 0 0
Investing Activities - Noncash      
Assumption of suspense liability 677,116 0 0
Assumption of asset retirement obligation 2,090,777 0 0
Assumption of ad valorem tax liability 234,051 0 0
Deferred cash payment at fair value 14,657,383 0 0
Stronghold Acquisition      
Cash Flows From Investing Activities      
Payments for acquisitions (18,511,170) (177,823,787) 0
Investing Activities - Cash Paid      
Deposit in escrow 0 46,500,000 0
Cash paid by bank to Stronghold on closing 0 121,392,455 0
Direct transaction costs 0 9,162,143 0
Payment of deferred cash payment 15,000,000 0 0
Cash paid for realized August oil derivative losses 0 1,777,925 0
Cash paid for inventory and fixed assets acquired 0 4,527,103 0
Cash received for post-close adjustments, net 0 (5,535,839) 0
Payment of post-close settlement 3,511,170 0 0
Payment for acquisition 18,511,170 177,823,787 0
Investing Activities - Noncash      
Assumption of suspense liability 0 1,651,596 0
Assumption of derivative liabilities 0 24,784,406 0
Assumption of asset retirement obligation 0 14,538,550 0
Deferred cash payment at fair value 0 14,807,276 0
Financing Activities - Noncash      
Common stock issued for acquisition 0 69,141,555 0
Convertible preferred stock issued for acquisition $ 0 $ 137,858,446 $ 0