Quarterly report [Sections 13 or 15(d)]

INVESTMENT IN MONZA

v3.26.1
INVESTMENT IN MONZA
6 Months Ended
Jun. 30, 2026
INVESTMENT IN MONZA  
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):

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​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

​

2026

​

2025

Working capital

​

$

898

​

$

502

Oil and natural gas properties and other, net

​

 

22,829

​

 

24,289

Other assets

​

​

15,518

​

​

13,947

Asset retirement obligations

​

​

902

​

​

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):

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​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

​

2026

​

2025

Total revenues

​

$

5,366

​

$

6,200

Total operating expenses

​

 

3,344

​

 

4,443

Other income, net

​

 

91

​

 

89

​

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 June 30, 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 six months ended June 30, 2026, Monza paid cash distributions of $8.2 million, of which $1.7 million was paid to the Company.