ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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| Schedule of Accounts Receivable, Allowance for Credit Loss |
The following table indicates the Company's provisions for credit loss expense associated with its joint interest billing receivables during the years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
| Credit loss expense |
$160,847 |
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$134,007 |
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$242,247 |
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| Schedule of Accounts, Notes, Loans and Financing Receivable |
The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of December 31, 2024 and 2023.
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2024 |
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2023 |
| Joint interest billing receivables |
$ |
1,264,897 |
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$ |
2,480,843 |
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| Allowance for credit losses |
(181,733) |
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(58,569) |
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Joint interest billing receivables, net |
$ |
1,083,164 |
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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 years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
| Depletion |
$ |
97,238,673 |
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$ |
87,442,546 |
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$ |
55,029,956 |
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| Depletion rate, per barrel-of-oil-equivalent (Boe) |
$ |
13.52 |
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$ |
13.22 |
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$ |
12.19 |
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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 Property, Plant and Equipment |
The following table provides information on the Company's depreciation expense for the years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
Depreciation expense |
$405,772 |
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$364,024 |
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$205,600 |
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| Schedule of Accounts Payable and Trade Accounts Payable |
The following table summarizes the Company's components of its current accounts payable balance presented in its Balance Sheets at December 31, 2024 and 2023:
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2024 |
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2023 |
Trade accounts payable |
$ |
39,289,431 |
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$ |
37,626,348 |
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| Revenues payable |
35,766,989 |
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44,348,938 |
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| Accrued expenses |
20,672,841 |
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22,088,838 |
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Accounts payable |
$ |
95,729,261
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$ |
104,064,124
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Trade accounts payable – The following table summarizes the Company's current trade accounts payable at December 31, 2024 and 2023:
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2024 |
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2023 |
| Accounts payable related to vendors |
$ |
37,147,926 |
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$ |
36,944,263 |
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| Other |
2,141,505 |
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682,085 |
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Trade accounts payable |
$ |
39,289,431
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$ |
37,626,348
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| Schedule of Revenues Payable |
Revenues payable – The following table summarizes the Company's current revenues and royalties payable at December 31, 2024 and 2023:
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2024 |
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2023 |
| Revenue held in suspense |
$ |
28,166,335 |
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$ |
31,592,825 |
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| Revenues and royalties payable |
7,600,654 |
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12,756,113 |
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Revenues payable |
$ |
35,766,989
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$ |
44,348,938
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| Schedule of Accrued Expenses |
Accrued expenses – The following table summarizes the Company's current accrued expenses at December 31, 2024 and 2023:
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2024 |
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2023 |
| Accrued capital expenditures |
$ |
3,645,377 |
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$ |
7,518,603 |
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| Accrued lease operating expenses |
5,313,315 |
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6,798,548 |
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| Accrued interest |
2,830,440 |
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3,684,378 |
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| Accrued general and administrative expense |
4,897,904 |
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4,047,095 |
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| Other |
3,985,805 |
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40,214 |
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Accrued expenses |
$ |
20,672,841
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$ |
22,088,838
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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 years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
| Weighted average notes payable balance |
$ |
651,789 |
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$ |
687,456 |
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$ |
593,766 |
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| Weighted average interest rate on weighted average notes payable |
8.63 |
% |
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7.23 |
% |
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4.31 |
% |
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| Schedule of Reclassification out of Accumulated Other Comprehensive Income |
The following table shows interest paid related to notes payable for the years ended December 31, 2024, 2023, and 2022. This interest is included within "Interest (expense)" in the Statements of Operations.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
Interest paid for notes payable |
$ |
56,261 |
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$ |
49,734 |
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$ |
25,579 |
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| Schedule of Income Tax Benefits (Provisions) |
The Company recorded the following federal and state income tax provisions for the years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
| Deferred federal income tax benefit (provision) |
$ |
(19,096,010) |
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$ |
901,522 |
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$ |
(6,437,680) |
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| Current state income tax benefit (provision) |
(401,197) |
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(72,213) |
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— |
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| Deferred state income tax benefit (provision) |
(943,747) |
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(954,551) |
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(1,971,044) |
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| Provision for Income Taxes |
$ |
(20,440,954) |
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$ |
(125,242) |
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$ |
(8,408,724) |
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For the years ended December 31, 2024, 2023, and 2022, components of our provision for income taxes are as follows:
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Provision for Income Taxes: |
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2024 |
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2023 |
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2022 |
| Federal deferred tax |
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$ |
19,096,010 |
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$ |
(901,522) |
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$ |
6,437,680 |
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State current tax |
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401,197 |
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72,213 |
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— |
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| State deferred tax |
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943,747 |
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954,551 |
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1,971,044 |
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Provision for Income Taxes |
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$ |
20,440,954 |
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$ |
125,242 |
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$ |
8,408,724 |
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| Schedule of Effective Income Tax Rate Reconciliation |
The Company’s overall effective tax rates are calculated as Provision for Income Taxes divided by Income Before Provision for Income Taxes. The effective tax rates for the years ended December 31, 2024, 2023, and 2022 were as follows.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
Effective tax rate (1)
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23.3 |
% |
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0.1 |
% |
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5.7 |
% |
(1) The effective tax rate for the year ended December 31, 2023 was impacted by the release of valuation allowance on the Company's federal net deferred tax asset. A tax benefit of $24.2 million was recorded in the year ended December 31, 2023.
The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes:
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Rate Reconciliation: |
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2024 |
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2023 |
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2022 |
Pre-tax book income (1)
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$ |
87,911,268 |
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$ |
104,917,670 |
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$ |
147,043,749 |
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| Tax at federal statutory rate |
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$ |
18,461,366 |
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$ |
22,032,711 |
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$ |
30,879,187 |
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| Excess tax benefit from stock option exercises and restricted stock vesting |
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104,344 |
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478,304 |
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(312,268) |
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| Adjust prior estimates to tax return |
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69,654 |
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(474,617) |
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214,740 |
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| States taxes, net of federal benefit |
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1,008,096 |
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1,122,782 |
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1,443,145 |
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| Valuation allowance |
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— |
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(24,182,975) |
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(24,151,242) |
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| Non-deductible expenses and other |
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797,494 |
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1,149,037 |
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335,162 |
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| Provision for Income Taxes |
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$ |
20,440,954 |
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$ |
125,242 |
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$ |
8,408,724 |
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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 Statements of Operations, incurred for the years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
Share-based compensation |
$5,506,017 |
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$8,833,425 |
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$7,162,231 |
Compensation expense charged against income for share-based awards during the years ended December 31, 2024, 2023, and 2022 is shown in the table below. These amounts are included in General and administrative expense in the Statements of Operations.
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For the years ended December 31, |
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2024 |
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2023 |
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2022 |
Share-based compensation expense from: |
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Employee stock options |
$ |
— |
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$ |
— |
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$ |
— |
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Restricted stock unit grants |
3,544,748 |
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4,537,026 |
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4,148,639 |
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Performance stock unit awards |
1,961,269 |
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4,296,399 |
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3,013,592 |
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Total share-based compensation |
$ |
5,506,017
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$ |
8,833,425
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$ |
7,162,231
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