Quarterly report pursuant to Section 13 or 15(d)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim periods and the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements for annual periods. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2021 Annual Report on Form 10-K (the “2021 Annual Report”).

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassification – For presentation purposes, as of June 30, 2021, Derivative (gain) loss has been reclassified from “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on the Company’s results of operations, financial position or cash flows.

For presentation purposes, as of June 30, 2021, Gathering and transportation and Production taxes have been combined into one line item within “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on the Company’s results of operations, financial position or cash flows.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the reported amounts of proved oil and natural gas reserves. Actual results could differ from those estimates.

Revenue from Contract with Customer and Accounts Receivable [Policy Text Block]

Revenue and Accounts ReceivableRevenue from the sale of crude oil, natural gas liquids (“NGLs”) and natural gas is recognized when performance obligations under the terms of the respective contracts are satisfied; this generally occurs with the delivery of crude oil, NGLs and natural gas to the customer. Revenue is concentrated with certain major oil and gas companies. There have been no significant changes to the Company’s contracts with customers during the six months ended June 30, 2022.

The Company also has receivables related to joint interest arrangements primarily with mid-size oil and gas companies with a substantial majority of the net receivable balance concentrated in less than ten companies. A loss methodology is used to develop the allowance for credit losses on material receivables to estimate the net amount to be collected. The loss methodology uses historical data, current market conditions and forecasts of future economic conditions. The Company’s maximum exposure at any time would be the receivable balance. Joint interest receivables on the Condensed Consolidated Balance Sheet are presented net of allowance for credit losses of $11.6 million and $10.0 million as of June 30, 2022 and December 31, 2021, respectively.

Employee Retention Credit [Policy Text Block]

Employee Retention Credit – Under the Consolidated Appropriations Act of 2021 passed by the United States Congress and signed by the President on December 27, 2020, the Company recognized a $2.1 million employee retention credit during the six months ended June 30, 2021 which is included as a credit to General and administrative expenses in the Condensed Consolidated Statement of Operations. No such credit has been recognized during the six months ended June 30, 2022.

Prepaid Expenses and Other Assets [Policy Text Block]

Prepaid Expenses and Other Assets – The amounts recorded are expected to be realized within one year and the major categories are presented in the following table (in thousands):

June 30, 2022

    

December 31, 2021

Derivatives(1) (Note 8)

$

25,820

$

21,086

Unamortized insurance/bond premiums

 

6,404

 

5,400

Prepaid deposits related to royalties

 

11,476

 

8,441

Prepayment to vendors

 

5,344

 

4,522

Prepayments to joint interest partners

2,768

2,808

Debt issue costs

1,207

1,065

Other

 

54

 

57

Prepaid expenses and other assets

$

53,073

$

43,379

(1)

Includes closed contracts which have not yet settled.

Property, Plant and Equipment, Policy [Policy Text Block]

Oil and Natural Gas Properties and Other, Net – Oil and natural gas properties and equipment are recorded at cost using the full cost method. There were no amounts excluded from amortization as of the dates presented in the following table (in thousands):

June 30, 2022

    

December 31, 2021

Oil and natural gas properties and equipment

$

8,764,899

$

8,636,408

Furniture, fixtures and other

 

20,845

 

20,844

Total property and equipment

 

8,785,744

 

8,657,252

Less: Accumulated depreciation, depletion, amortization and impairment

 

(8,044,354)

 

(7,992,000)

Oil and natural gas properties and other, net

$

741,390

$

665,252

Other Noncurrent Assets [Policy Text Block]

Other Assets (long-term) – The major categories are presented in the following table (in thousands):

June 30, 2022

    

December 31, 2021

Right-of-Use assets

$

10,523

$

10,602

Investment in White Cap, LLC

 

2,989

 

2,533

Proportional consolidation of Monza (Note 6)

 

12,504

 

2,511

Derivatives (1) (Note 8)

 

26,509

 

34,435

Other

 

1,013

 

1,091

Total other assets (long-term)

$

53,538

$

51,172

(1)

Includes open contracts and prepaid premiums paid for purchased put and call options.

Accrued Liabilities Policy [Policy Text Block]

Accrued Liabilities – The major categories are presented in the following table (in thousands):

June 30, 2022

    

December 31, 2021

Accrued interest

$

10,165

$

10,154

Accrued salaries/payroll taxes/benefits

 

5,052

 

9,617

Litigation accruals

 

500

 

646

Lease liability

 

1,417

 

1,115

Derivatives (1) (Note 8)

 

135,963

 

81,456

Other

 

870

 

3,152

Total accrued liabilities

$

153,967

$

106,140

(1)

Includes closed contracts which have not yet settled.

Other Noncurrent Liabilities [Policy Text Block]

Other Liabilities (long-term) – The major categories are presented in the following table (in thousands):

June 30, 2022

    

December 31, 2021

Dispute related to royalty deductions

$

6,534

$

5,177

Derivatives (Note 8)

 

75,550

 

37,989

Lease liability

 

10,971

 

11,227

Other

 

1,202

 

996

Total other liabilities (long-term)

$

94,257

$

55,389

At The Market Equity Offering Policy, [Policy Text Block] At-the-Market Equity Offering – On March 18, 2022, the Company filed a prospectus supplement related to the issuance and sale of up to $100,000,000 of shares of common stock under the Company’s "at-the-market" equity offering program (the "ATM Program"). The designated sales agents will be entitled to a placement fee of up to 3.0% of the gross sales price per share sold. During the six months ended June 30, 2022, the Company did not sell any shares in connection with the ATM Program.