Riley Exploration Permian Inc
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
REPX$41.23+2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001001614-24-000048
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001001614-24-000064
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 97 previous paragraphs and 105 current paragraphs.
53 unchanged; 31 reworded; 21 added; 13 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Geopolitical Events
Current report
The general domestic and international political conditions, including the military conflict between Russia and Ukraine, the Israel-Hamas conflict, and the global response to such conflicts could prolong market volatility or cause a decline in commodity prices.
Current report
Impairment of EOR Project
Current report
At September 30, 2024, the Company recorded a $30.2 million impairment related to the discontinuation of our EOR Project, including a $28.9 million non-cash impairment and $1.3 million cash impairment related to the termination of the Kinder Morgan CO 2 contract. Select equipment from the EOR Project was salvaged for use in the Company's conventional vertical and horizontal development programs.
Current report
RPC Power Joint Venture
Current report
Comparison for the three and nine months ended September 30, 2024, and 2023.
Current report
(3)During the periods presented, the Company did not have any NGL derivative contracts in place.
Current report
•Oil volumes increased during the three months ended September 30, 2024, due primarily to increased production from new wells turned to sales in our Champions field.
Current report
Nine months ended September 30, 2024, compared to nine months ended September 30, 2023
Current report
•Our realized oil prices increased $0.93 during the nine months ended September 30, 2024, when compared to the nine months ended September 30, 2023, which corresponded with a $1.31 increase in the average WTI price during the same period.
Current report
The Company’s LOE increased by $8.5 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. This increase was driven by a $5.4 million increase due to higher production volume from a full nine months of volumes in 2024 from the properties acquired in the 2023 New Mexico Acquisition in addition to increased production from new wells turned to sales in our Champions field and a $3.1 million increase in workover expense.
Current report
DD&A expense increased by $2.0 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. This increase was primarily due to an increase in production volumes in our Champions field.
Current report
DD&A expense increased by $9.6 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, which was primarily due to a full nine months of production volumes and corresponding DD&A expense from the properties acquired in the 2023 New Mexico Acquisition.
Current report
Other Impairments
Current report
The cost of proved and unproved oil and natural gas properties are assessed for impairment at least annually or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. We compare the undiscounted future cash flows of the oil, natural gas and NGL properties to the carrying amount of the oil, natural gas and NGL properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, we adjust the carrying amount of the oil, natural gas and NGL properties to their estimated fair value.
Current report
The Company recognized an impairment charge of $30.2 million for the three and nine months ended September 30, 2024, which consisted of a non-cash impairment charge of $28.9 million and a cash impairment charge of $1.3 million related to the termination of the Kinder Morgan CO 2 contract. The impairment loss relates to the discontinuation of the Company's EOR project, in favor of redeploying the required future capital and salvaging certain assets for use in the Company's conventional vertical and horizontal development programs. There was no impairment loss for the three and nine months ended September 30, 2023.
Current report
General and Administrative ("G&A") Expense
Current report
G&A expense increased by $3.6 million, or 17%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, primarily due to an increase in share-based compensation due to new grants and accelerated vestings.
Current report
Net cash provided by operating activities were $179.9 million for the nine months ended September 30, 2024, compared to net cash provided by operating activities of $141.4 million for the nine months ended September 30, 2023, and primarily comprised of the following:
Current report
(1)Operating expenses include LOE, production and ad valorem taxes, administrative costs, transaction costs and other minor operating expenses.
Current report
Net cash flows used in investing activities were $113.3 million for the nine months ended September 30, 2024, compared to net cash flows used in investing activities of $448.5 million for the nine months ended September 30, 2023, and primarily comprised of the following:
Removed paragraphs (13)
Previous report
Market Conditions, Commodity Prices and Interest Rates
Previous report
Over the past several years, the U.S. and global economies and markets have experienced heightened volatility following impactful geopolitical events, the effects of widespread inflation and the impact of significantly higher interest rates. Prices for oil and natural gas are determined primarily by prevailing market conditions, which have been and could continue to be volatile.
Previous report
The combination of geopolitical events, inflation and the higher interest rate environment has led to numerous forecasts of a U.S. or global recession. Any such recession could prolong market volatility or cause a decline in commodity prices, among other potential impacts.
Previous report
RPC Power
Previous report
Comparison for the three and six months ended June 30, 2024 and 2023.
Previous report
Six months ended June 30, 2024 compared to six months ended June 30, 2023
Previous report
•The average WTI price increased by $4.96 per Bbl during the six months ended June 30, 2024 when compared to the six months ended June 30, 2023.
Previous report
The Company’s LOE decreased by $1.0 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This decrease was driven by a decrease in workover expense.
Previous report
Depletion, depreciation, amortization and accretion expense decreased by $1.1 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This decrease was primarily due to lower volumes produced from fields with higher depletion rates in the current period. Depletion, depreciation, amortization and accretion expense increased $7.6 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, which was primarily due to a full six months of DD&A contributed from the properties acquired in the 2023 New Mexico Acquisition.
Previous report
General and Administrative Expense ("G&A")
Previous report
Beginning in late July 2024, a portion of the Company's oil, natural gas and NGL sales in New Mexico have been negatively impacted due to an operational disruption encountered by the midstream provider we rely on to process our oil and natural gas production. As a result of this disruption, the Company temporarily shut-in or curtailed production from affected wells in the west portion of the Company’s New Mexico field to prevent flaring until volumes could be processed again. Management will be actively monitoring this situation as our midstream provider works towards resolving the operational disruption, which could take from several weeks to several months. Management believes the impact of this disruption can be significantly mitigated by shifting development to unaffected areas and/or by accelerating development in unaffected areas. While Management is unable to forecast the financial impact of a prolonged disruption, we anticipate that the Company's daily production for each of the third and fourth quarters will remain consistent with our second quarter.
Previous report
The Company’s net cash provided by operating activities increased by $19.1 million, or 22%, to $107.8 million for the six months ended June 30, 2024 from $88.7 million for the six months ended June 30, 2023. The increase was primarily driven by a $38.2 million increase in revenues and a $5.7 million decrease in payments to settle commodity derivative contracts, partially offset by a $7.3 million increase in interest paid, a $7.1 million increase in tax liabilities paid, and a $5.2 million increase in certain expenses, including LOE and production and ad valorem taxes.
Previous report
The Company's cash flows used in investing activities decreased by $329.7 million to $87.7 million for the six months ended June 30, 2024 from $417.4 million for the six months ended June 30, 2023. The decrease was primarily due to the Company's 2023 New Mexico Acquisition of $325.1 million, prior to post-closing adjustments, for the six months ended June 30, 2023, compared to the Company's 2024 New Mexico Asset Acquisition of $18.1 million for the six months ended June 30, 2024. Additionally, the Company incurred lower capital spending of $29.1 million, partially offset by an $11.6 million increase in contributions to the Company's equity investment.
Reworded paragraphs (31)
Previous wording
The Company cannot estimate the length or gravity of the future impact these events will have on the Company's results of operations, financial position, liquidity and the value of oil and natural gas reserves.
Current wording
The Company cannot estimate the length or gravity of the future impact these events will have on the Company's results of operations, financial position, liquidity and the value of its oil and natural gas reserves.
Previous wording
On May 7, 2024, the Company closed on the previously announced acquisition of oil and natural gas properties in Eddy County, New Mexico ("2024 New Mexico Asset Acquisition"), which included 13,900 contiguous net acres to the Company's existing acreage in Eddy County, for a cash purchase price of approximately $17.6 million plus $0.5 million in transaction costs. The 2024 New Mexico Asset Acquisition was accounted for as an asset acquisition, with the final purchase price and transaction costs being capitalized to oil and natural gas properties. The acquisition was funded through a combination of proceeds from the 2024 Equity Offering and cash on hand.
Current wording
On May 7, 2024, the Company closed on an acquisition of oil and natural gas properties in Eddy County, New Mexico ("2024 New Mexico Asset Acquisition"), which included 13,900 contiguous net acres to the Company's existing acreage in Eddy County, for a cash purchase price of approximately $19.1 million plus $0.5 million in transaction costs. The 2024 New Mexico Asset Acquisition was accounted for as an asset acquisition, with the final purchase price and transaction costs being capitalized to oil and natural gas properties. The acquisition was funded through a combination of proceeds from the 2024 Equity Offering and cash on hand.
Previous wording
In January 2023, the Company formed a joint venture, RPC Power, for the purpose of constructing, owning and operating power generation assets which are expected to be fully operational in the third quarter of 2024. These assets will use the Company’s produced natural gas to power its oilfield operations in Yoakum County, Texas. In May 2024, the Company entered into the A&R LLC Agreement to expand the scope of its joint venture to include the constructing, owning, and operating of additional new power generation and storage assets, which are expected to be operational throughout 2025, for the sale of energy and ancillary services to ERCOT.
Current wording
In January 2023, the Company formed a joint venture, RPC Power, for the purpose of constructing, owning and operating power generation assets which became fully operational in September of 2024. These assets will use the Company’s produced natural gas to power a portion of its oilfield operations in Yoakum County, Texas. In May 2024, the Company entered into the A&R LLC Agreement to expand the scope of its joint venture to include the constructing, owning, and operating of additional new power generation and storage assets, which are expected to be operational throughout 2025, for the sale of energy and ancillary services to ERCOT.
Previous wording
The following table sets forth selected operating data for the three and six months ended June 30, 2024 and 2023:
Current wording
The following table sets forth selected operating data for the three and nine months ended September 30, 2024, and 2023:
Previous wording
(1)The Company's natural gas and NGL sales are presented net of gathering, processing, and transportation costs which at times exceed the price received and result in negative average realized prices.
Current wording
(1)The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceed the price received and result in negative average realized prices.
Previous wording
The Company’s total oil and natural gas revenue, net increased $6.0 million, or 6%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Current wording
The Company’s total oil and natural gas revenue, net decreased by $5.4 million, or 5%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Previous wording
•For the three months ended June 30, 2024, oil revenues increased by $8.5 million, or 9%, compared to the three months ended June 30, 2023. Of the increase, $10.5 million was attributable to an increase in realized prices, partially offset by a $2.0 million decrease attributable to modestly lower volume. Realized prices increased by 11%, while volumes decreased by 2%, compared to the three months ended June 30, 2023.
Current wording
•For the three months ended September 30, 2024, oil revenues increased by $0.8 million, or 1%, compared to the three months ended September 30, 2023. Of the increase, $10.7 million was attributable to an increase in volume, partially offset by $9.9 million attributable to a decrease in realized prices. Volumes increased by 10% while realized prices decreased by 9%, compared to the three months ended September 30, 2023.
Previous wording
•The average WTI price increased by $8.27 per Bbl during the three months ended June 30, 2024 when compared to the three months ended June 30, 2023.
Current wording
•Our realized oil prices decreased $6.92 during the three months ended September 30, 2024, when compared to the three months ended September 30, 2023, which corresponded with a $5.64 decrease in the average WTI price during the same period.
Previous wording
•For the three months ended June 30, 2024, natural gas revenues decreased by $1.0 million, compared to the three months ended June 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative during the three months ended June 30, 2024 primarily due to weak Permian Basin natural gas prices that did not provide for full recovery of the Company's allocated gathering and processing costs.
Current wording
•For the three months ended September 30, 2024, natural gas revenues decreased by $2.2 million, compared to the three months ended September 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative during the three months ended September 30, 2024, primarily due to weak Permian Basin natural gas prices that did not provide for full recovery of the Company's allocated gathering and processing costs.
Previous wording
•For the three months ended June 30, 2024, NGL revenues decreased by $1.5 million compared to the three months ended June 30, 2023. The decrease was due to higher allocated gathering and processing costs to the Company's NGLs due to weak Permian Basin natural gas prices, which did not provide for full recovery of the Company's costs.
Current wording
•For the three months ended September 30, 2024, NGL revenues decreased by $4.0 million compared to the three months ended September 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative during the three months ended September 30, 2024, primarily due to higher allocated gathering and processing costs to the Company's NGLs due to weak Permian Basin natural gas prices, which did not provide for full recovery of the Company's costs.
Previous wording
The Company’s total oil and natural gas revenue, net increased $39.0 million, or 24%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
The Company’s total oil and natural gas revenue, net increased by $33.7 million, or 12%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.
Previous wording
•For the six months ended June 30, 2024, oil revenues increased by $40.5 million, or 25%, compared to the six months ended June 30, 2023. Of the increase, $26.5 million was attributable to an increase in volume and $14.0 million to an increase in realized price. Volumes increased by 16%, while realized prices increased by 7% compared to the six months ended June 30, 2023.
Current wording
•For the nine months ended September 30, 2024, oil revenues increased by $41.4 million, or 15%, compared to the nine months ended September 30, 2023. Of the increase, $37.6 million was attributable to an increase in volume and $3.8 million to an increase in realized price. Volumes increased by 14%, while realized prices increased by 1% compared to the nine months ended September 30, 2023.
Previous wording
•Oil volumes increased during the six months ended June 30, 2024 due to a full six months of volumes contributed from the properties acquired in the 2023 New Mexico Acquisition.
Current wording
•Oil volumes increased during the nine months ended September 30, 2024, due to a full nine months of volumes contributed from the properties acquired in the 2023 New Mexico Acquisition in addition to increased production from new wells turned to sales in our Champions field.
Previous wording
•For the six months ended June 30, 2024, natural gas revenues decreased by $0.9 million, compared to the six months ended June 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative for the first half of 2024 primarily due to weak Permian Basin natural gas prices that did not provide for full recovery of the Company's allocated gathering and processing costs.
Current wording
•For the nine months ended September 30, 2024, natural gas revenues decreased by $3.0 million, compared to the nine months ended September 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative during the nine months ended September 30, 2024 primarily due to weak Permian Basin natural gas prices that did not provide for full recovery of the Company's allocated gathering and processing costs.
Previous wording
•For the six months ended June 30, 2024, NGL revenues decreased by $0.6 million compared to the six months ended June 30, 2023. Of the decrease, $1.8 million was attributable to a decrease in realized price, partially offset by $1.2 million attributable to an increase in volume. Realized prices decreased by 51%, while volumes increased by 49%. The lower realized price was due to higher allocated gathering and processing costs to the Company's NGLs due to weak Permian Basin natural gas prices while the volume increase was due to higher production from properties acquired in the 2023 New Mexico Acquisition.
Current wording
•For the nine months ended September 30, 2024, NGL revenues decreased by $4.7 million compared to the nine months ended September 30, 2023. All of the decrease was attributable to a decrease in realized prices. Realized prices were negative during the nine months ended September 30, 2024, primarily due to higher allocated gathering and processing costs to the Company's NGLs due to weak Permian Basin natural gas prices, which did not provide for full recovery of the Company's costs.
Previous wording
The Company’s LOE increased by $6.9 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. This increase was driven by a $5.7 million increase due to higher production volume and a $2.6 million increase due to higher workover expense, both primarily driven by the 2023 New Mexico Acquisition. These increases were partially offset by a decrease in expenses related to electricity and chemical costs.
Current wording
The Company’s LOE increased by $1.6 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. This increase was driven by a $1.8 million increase due to higher production volume and a $0.5 million increase in workover expense. These increases were partially offset by a decrease in certain expenses such as chemicals, fuel and repair costs.
Previous wording
Production and ad valorem taxes remained flat for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, and increased $3.1 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. For the six months ended June 30, 2024, production taxes increased primarily due to higher oil revenues for the period.
Current wording
Production and ad valorem taxes decreased by $0.2 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023 primarily due to lower natural gas and NGL revenues. Production and ad valorem taxes increased by $2.8 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, primarily due to higher oil revenues for the period.
Previous wording
Depletion, Depreciation, Amortization and Accretion Expense
Current wording
Depletion, Depreciation, Amortization and Accretion ("DD&A") Expense
Previous wording
Depletion, depreciation and amortization is the systematic expensing of the capitalized costs incurred to acquire, explore and develop oil, natural gas and NGLs. All costs incurred in the acquisition, exploration and development of properties (excluding costs of surrendered and abandoned leaseholds, delay lease rentals, dry holes and overhead related to exploration activities) are capitalized. Capitalized costs are depleted using the units of production method.
Current wording
DD&A expense is the systematic expensing of the capitalized costs incurred to acquire, explore and develop oil, natural gas and NGLs. All costs incurred in the acquisition, exploration and development of properties (excluding costs of surrendered and abandoned leaseholds, delay lease rentals, dry holes and overhead related to exploration activities) are capitalized. Capitalized costs are depleted using the units of production method.
Previous wording
Total G&A expense increased by $2.2 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 and $2.7 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to an increase in share-based compensation due to accelerated vestings.
Current wording
G&A expense increased by $1.0 million, or 14%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to an increase in share-based compensation due to new grants.
Previous wording
Transaction costs represent costs incurred on successful or unsuccessful business combinations or unsuccessful acquisitions. The transaction costs of $0.7 million for the three and six months ended June 30, 2024 primarily related to the RPC Power Joint Venture. During the six months ended June 30, 2023, the transaction costs of $5.5 million primarily related to the 2023 New Mexico Acquisition.
Current wording
Transaction costs represent costs incurred on successful, unsuccessful or potential business transactions. The transaction costs of $0.5 million for the three months ended September 30, 2024, and $1.1 million for the nine months ended September 30, 2024, primarily related to the RPC Power Joint Venture, potential transactions that the Company is evaluating as well as a transaction that the Company decided not to pursue further. During the three and nine months ended September 30, 2023, the transaction costs of $0.2 million and $5.8 million, respectively, primarily related to the 2023 New Mexico Acquisition.
Previous wording
Interest expense decreased by $1.3 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to lower principal balances on outstanding debt as well as settlements on our interest rate derivatives. Interest expense increased $6.7 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to the higher debt balances associated with the financing for the 2023 New Mexico Acquisition.
Current wording
Interest expense decreased by $1.5 million for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to lower principal balances on outstanding debt as well as settlements on our interest rate derivatives. Interest expense increased by $5.2 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, primarily due to the higher debt balances associated with the financing for the 2023 New Mexico Acquisition.
Previous wording
The Company recognizes settlements and changes in the fair value of its derivative contracts as a single component within other income (expense) on its condensed consolidated statements of operations. We have oil and natural gas derivative contracts, including fixed price swaps, basis swaps and collars, that settle against various indices. The following table presents the components of the Company's gain (loss) on derivatives, net for the three and six months ended June 30, 2024 and 2023:
Current wording
The Company recognizes settlements and changes in the fair value of its derivative contracts as a single component within other income (expense) on its condensed consolidated statements of operations. We have oil and natural gas derivative contracts, including fixed price swaps, basis swaps and collars, that settle against various indices. The following table presents the components of the Company's gain (loss) on derivatives, net for the three and nine months ended September 30, 2024, and 2023:
Previous wording
Working capital is the difference in our current assets and our current liabilities. Working capital is an indication of liquidity and potential need for short-term funding. The change in our working capital requirements is driven generally by changes in accounts receivable, accounts payable, commodity prices, credit extended to, and the timing of collections from customers, the level and timing of spending for expansion activity, and the timing of debt maturities. As of June 30, 2024, we had a working capital deficit of $35.8 million compared to a deficit of $31.1 million as of December 31, 2023. The current portion of our Senior Notes, which includes our regularly scheduled principal payments of $5 million per quarter, accounts for $20 million of our working capital deficit as of June 30, 2024 and December 31, 2023. The working capital deficit at June 30, 2024 reflects $8.3 million in current derivative liabilities compared to $0.4 million at December 31, 2023 and $1.4 million in current derivative assets at June 30, 2024 compared to $5.0 million at December 31, 2023. We utilize our Credit Facility and cash on hand to manage the timing of cash flows and fund short-term working capital deficits. Our current derivative assets and liabilities represent the mark-to-market value as of June 30, 2024 of future commodity production which will settle on a monthly basis through the end of their contractual terms. This aligns with the receipt of oil and natural gas revenues on a monthly basis.
Current wording
Working capital is the difference in our current assets and our current liabilities. Working capital is an indication of liquidity and potential need for short-term funding. The change in our working capital requirements is driven generally by changes in accounts receivable, accounts payable, commodity prices, credit extended to, and the timing of collections from customers, the level and timing of spending for expansion activity, and the timing of debt maturities. As of September 30, 2024, we had a working capital deficit of $31.9 million compared to a deficit of $31.1 million as of December 31, 2023. The current portion of our Senior Notes, which includes our regularly scheduled principal payments of $5 million per quarter, accounts for $20 million of our working capital deficit as of September 30, 2024, and December 31, 2023. We utilize our Credit Facility and cash on hand to manage the timing of cash flows and fund short-term working capital deficits. At September 30, 2024, we had cash on hand of $13.3 million and $245 million of undrawn capacity under our Credit Facility.
Previous wording
Net cash flows used in financing activities were $24.5 million for the six months ended June 30, 2024 compared to net cash flows provided by financing activities of $322.1 million for the six months ended June 30, 2023. During the six months ended June 30, 2024, the Company had net repayments to its Credit Facility of $25 million and $10 million to its Senior Notes, compared to net proceeds from its Credit Facility of $159 million and $183 million from its Senior Notes for the six months ended June 30, 2023. The Company paid cash dividends of $14.7 million during the six months ended June 30, 2024, a 10% increase compared to the six months ended June 30, 2023, and received $25.4 million in net proceeds, after underwriting discounts and commissions and expenses, from the issuance of common stock during the six months ended June 30, 2024.
Current wording
Net cash flows used in financing activities were $68.6 million for the nine months ended September 30, 2024, compared to net cash flows provided by financing activities of $304.2 million for the nine months ended September 30, 2023, and primarily comprised of the following:
Previous wording
The borrowing base under the Company's Credit Facility was $375 million with outstanding borrowings of $160 million on June 30, 2024, representing available borrowing capacity of $215 million.
Current wording
The borrowing base under the Company's Credit Facility was $375 million with outstanding borrowings of $130 million on September 30, 2024, representing available borrowing capacity of $245 million.
Previous wording
During 2023, the Company issued $200 million in principal amount of Senior Notes with a maturity date of April 2028. The proceeds from the Senior Notes were used to finance the 2023 New Mexico Acquisition. The principal balance of the Senior Notes as of June 30, 2024 was $175 million.
Current wording
During 2023, the Company issued $200 million in principal amount of Senior Notes with a maturity date of April 2028. The proceeds from the Senior Notes were used to finance the 2023 New Mexico Acquisition. The principal balance of the Senior Notes as of September 30, 2024, was $170 million.
Previous wording
For the six months ended June 30, 2024, the Company recognized quarterly dividends totaling approximately $15.1 million, with $14.7 million paid in cash and $0.4 million payable to restricted shareholders upon vesting.
Current wording
For the nine months ended September 30, 2024, the Company recognized quarterly dividends totaling approximately $23.2 million, with $22.8 million paid in cash and $0.4 million payable to restricted shareholders upon vesting.
Previous wording
On April 8, 2024, the Company issued and sold 1,015,000 shares of common stock at a price of $27.00 per share (the "2024 Equity Offering"). Net proceeds from the 2024 Equity Offering were approximately $25.4 million, after deducting underwriting discounts and commissions and expenses. See Note 11 - Shareholders' Equity for additional information.
Current wording
On April 8, 2024, the Company issued and sold 1,015,000 shares of common stock at a price of $27.00 per share. Net proceeds from the 2024 Equity Offering were approximately $25.4 million, after deducting underwriting discounts and commissions and expenses. See Note 11 - Shareholders' Equity for additional information.
Previous wording
As of June 30, 2024, the Company had a seven-year (7) remaining minimum volume commitment with its primary midstream service provider in Texas, drilling pipe purchase commitments related to its drilling program through the remainder of 2024 totaling $8.3 million, and CO 2 purchase commitments that extend through December 2025. The Company also had natural gas delivery commitments under the A&R Tolling Agreement and future equity commitments under the A&R LLC Agreement. See Note 14 - Commitments and Contingencies for additional information.
Current wording
As of September 30, 2024, the Company had a seven-year remaining minimum volume commitment with its primary midstream service provider in Texas as well as drilling pipe purchase commitments related to its drilling program through the remainder of 2024 totaling $3.2 million. The Company also had natural gas delivery commitments under the A&R Tolling Agreement, future equity commitments under the A&R LLC Agreement and a remaining commitment of $20.0 million if required, to fund its portion of the 2024 and 2025 capital budget for the RPC Power joint venture. See Note 14 - Commitments and Contingencies for additional information.
Previous wording
The Company's critical accounting estimates are described in "Critical Accounting Estimates" within "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 of the Notes to the Consolidated Financial Statements in the 2023 Annual Report. The accounting estimates used in preparing our interim condensed consolidated financial statements for the three andsix months ended June 30, 2024 are the same as those described in the 2023 Annual Report.
Current wording
The Company's critical accounting estimates are described in "Critical Accounting Estimates" within "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 of the Notes to the Consolidated Financial Statements in the 2023 Annual Report. The accounting estimates used in preparing our interim condensed consolidated financial statements for the three andnine months ended September 30, 2024, are the same as those described in the 2023 Annual Report.