Quarterly report [Sections 13 or 15(d)]

INVESTMENT IN MONZA

v3.26.1
INVESTMENT IN MONZA
3 Months Ended
Mar. 31, 2026
INVESTMENT IN MONZA  
INVESTMENT IN MONZA

NOTE 9 — 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):

March 31, 

December 31, 

2026

2025

Working capital

$

828

$

502

Oil and natural gas properties and other, net

 

23,451

 

24,289

Other assets

14,516

13,947

Asset retirement obligations

870

840

Other liabilities

56

56

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):

Three Months Ended March 31, 

2026

2025

Total revenues

$

2,686

$

3,145

Total operating expenses

 

1,890

 

2,164

Other income, net

 

44

 

42

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 March 31, 2026 and December 31, 2025, the unused advances were $2.3 million and $2.4 million, respectively, which are included in Advances from joint interest partners in the Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2026, Monza paid cash distributions of $4.0 million, of which $0.8 million was paid to the Company.