Quarterly report [Sections 13 or 15(d)]

INVESTMENT IN MONZA

v3.25.2
INVESTMENT IN MONZA
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
INVESTMENT IN MONZA

NOTE 10 — INVESTMENT IN MONZA

Monza is considered to be a variable interest entity. As the Company is not considered to be the primary beneficiary of Monza, the Company does not fully consolidate Monza but instead consolidates Monza based on its ownership interest.

The following table presents the amounts recorded by the Company on the Condensed Consolidated Balance Sheets related to the consolidation of the proportional interest in Monza’s operations (in thousands):

June 30, 

December 31, 

2025

2024

Working capital

$

(1,098)

$

29

Oil and natural gas properties and other, net

 

26,019

 

28,042

Other assets

14,228

13,038

Asset retirement obligations

742

691

The following table presents the amounts recorded by the Company in the Condensed Consolidated Statements of Operations related to the consolidation of the proportional interest in Monza’s operations (in thousands):

Six Months Ended June 30, 

2025

2024

Total revenues

$

6,200

$

5,700

Total operating expenses

 

4,443

 

3,636

Interest income

 

89

 

111

As required, the Company may call on Monza to provide cash to fund its portion of certain projects in advance of capital expenditure spending. As of both June 30, 2025 and December 31, 2024, the unused advances were $2.4 million, which are included in Advances from joint interest partners in the Condensed Consolidated Balance Sheets.

During the six months ended June 30, 2025, Monza paid cash distributions of $18.7 million, of which $3.9 million was paid to the Company.