BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
Sep. 30, 2024 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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| Accounts Receivable, Allowance for Credit Loss |
The following table indicates the Company's provisions for bad debt expense associated with its joint interest billing receivables during the three and nine months ended September 30, 2024 and September 30, 2023.
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For the Three Months Ended |
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For the Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Bad debt expense |
$ |
8,817 |
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$ |
19,656 |
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$ |
187,594 |
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$ |
41,865 |
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| Schedule of Joint Interest Billing Receivable and Allowance for Credit Losses |
The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of September 30, 2024 and December 31, 2023.
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September 30, 2024 |
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December 31, 2023 |
| Joint interest billing receivables |
$ |
1,552,281 |
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$ |
2,480,843 |
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| Allowance for credit losses |
(208,480) |
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(58,569) |
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| Joint interest billing receivables, net |
$ |
1,343,801 |
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$ |
2,422,274 |
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| Schedule of Depletion and Depletion Rate per Barrel of Oil Equivalents |
The following table shows total depletion and the depletion per barrel-of-oil-equivalent rate, for the three and nine months ended September 30, 2024 and 2023.
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For the Three Months Ended |
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For the Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Depletion |
$ |
25,302,058 |
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$ |
21,711,123 |
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$ |
73,056,856 |
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$ |
63,203,473 |
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| Depletion rate, per barrel-of-oil-equivalent (Boe) |
$ |
13.68 |
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$ |
13.48 |
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$ |
13.57 |
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$ |
13.09 |
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| Schedule of Property Plant and Equipment Estimated Useful Lives |
Depreciation of buildings, equipment, software, leasehold improvements, automobiles, buildings and structures is calculated using the straight-line method based upon the following estimated useful lives:
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| Leasehold improvements |
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3‑5 years |
| Office equipment and software |
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3‑7 years |
| Equipment |
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5‑10 years |
| Automobiles |
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4 years |
| Buildings and structures |
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7 years |
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| Schedule of Useful Lives |
The following table provides information on the Company's depreciation expense for the three and nine months ended September 30, 2024 and 2023.
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For the Three Months Ended |
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For the Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Depreciation |
$ |
102,043 |
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$ |
80,690 |
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$ |
306,752 |
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$ |
277,420 |
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| Schedule of Weighted Average Notes Payable |
The following table reflects the weighted average notes payable balances and the weighted average interest rate on the weighted average notes payable outstanding during the period as of and for the three and nine months ended September 30, 2024 and 2023.
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Three Months Ended |
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Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
Weighted average notes payable balance |
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$ |
1,181,511 |
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$ |
1,228,923 |
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$ |
616,090 |
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$ |
651,564 |
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| Weighted average interest rate on weighted average notes payable |
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8.16 |
% |
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7.25 |
% |
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8.76 |
% |
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7.21 |
% |
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| Schedule of Interest Paid Related to Notes Payable |
The following table shows interest paid related to notes payable for the three and nine months ended September 30, 2024 and 2023. This interest is included within "Interest (expense)" in the Condensed Statements of Operations.
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Three Months Ended |
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Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Interest paid for notes payable |
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$ |
24,115 |
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$ |
22,286 |
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$ |
40,481 |
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$ |
35,211 |
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| Schedule of Components of Income Tax Expense |
The Company recorded the following federal and state income tax benefits (provisions) for the three and nine months ended September 30, 2024 and 2023.
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For the Three Months Ended |
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For the Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Deferred federal income tax benefit (provision) |
$ |
(9,637,849) |
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$ |
3,381,104 |
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$ |
(17,617,436) |
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$ |
8,492,595 |
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| Current state income tax benefit (provision) |
(74,899) |
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(165,780) |
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(329,917) |
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(264,261) |
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| Deferred state income tax benefit (provision) |
(375,206) |
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196,012 |
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(689,972) |
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(490,646) |
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| Benefit from (Provision for) Income Taxes |
$ |
(10,087,954) |
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$ |
3,411,336 |
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$ |
(18,637,325) |
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$ |
7,737,688 |
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Effective tax rate (1)
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22.94% |
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31.15% |
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23.17% |
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16.74% |
(1) The Company’s overall effective tax rate is calculated as Benefit from (Provision for) Income Taxes divided by Income Before Benefit from (Provision for) Income Taxes. The effective tax rate for the three and nine months ended September 30, 2024 was higher than the federal statutory corporate tax rate primarily due to nondeductible expenses and state income taxes. For the three and nine months ended September 30, 2023, the Company's overall effective tax rates were primarily impacted by the release of valuation allowance on its federal net deferred tax asset. A tax benefit of $10.5 million was recorded as a discrete item in the nine months ended September 30, 2023.
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| Schedule of Noncash Share-Based Payment Arrangements |
The following table summarizes the Company's share-based compensation, included with General and administrative expense within our Condensed Statements of Operations, incurred for the three and nine months ended September 30, 2024 and 2023.
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Three Months Ended |
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Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Share-based compensation |
$ |
32,087 |
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$ |
2,170,735 |
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$ |
3,833,697 |
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$ |
6,374,743 |
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Share-based compensation expense for share-based awards during the three and nine months ended September 30, 2024 and 2023 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
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Three Months Ended |
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Nine Months Ended |
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September 30, 2024 |
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September 30, 2023 |
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September 30, 2024 |
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September 30, 2023 |
| Share-based compensation |
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$ |
32,087 |
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$ |
2,170,735 |
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$ |
3,833,697 |
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$ |
6,374,743 |
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