Granite Ridge Resources Inc

Previous wording

Our oil price differential to the NYMEX benchmark price during the three months ended March 31, 2024 and 2023 was a premium of $0.67 per barrel and $0.15 per barrel, respectively. Our natural gas price differential to the average NYMEX price during the three months ended March 31, 2024 and 2023 was a discount of $(0.31) per Mcf and $(0.12) per Mcf, respectively.

Current wording

Our oil price differential to the NYMEX benchmark price during the three months ended June 30, 2024 and 2023 was a discount of $(3.97) per barrel and $(0.83) per barrel, respectively. For the six months ended June 30, 2024 and 2023, our oil price differential to the NYMEX benchmark price was a discount of $(1.68) per barrel and $(0.32) per barrel, respectively.

Previous wording

Prices for various quantities of natural gas and oil that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three months ended March 31, 2024 and 2023.

Current wording

Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three and six months ended June 30, 2024 and 2023.

Previous wording

For the three months ended March 31, 2024, the average NYMEX oil pricing was $77.50 per barrel of oil, or 2% higher than the average NYMEX price per barrel for the three months ended March 31, 2023. Our settled derivatives increased our realized oil price per barrel by $0.10 for the three months ended March 31, 2024 and increased our realized oil price per barrel by $2.02 for the three months ended March 31, 2023. For the three months ended March 31, 2024, our average realized oil price per barrel after reflecting settled derivatives was $78.27 compared to $78.16 for the three months ended March 31, 2023.

Current wording

For the three months ended June 30, 2024, the average NYMEX oil pricing was $81.81 per barrel of oil, or 11% higher than the average NYMEX price per barrel for the three months ended June 30, 2023. Our settled derivatives decreased our realized oil price per barrel by $0.38 for the three months ended June 30, 2024 and increased our realized oil price per barrel by $1.94 for the three months ended June 30, 2023. For the three months ended June 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $77.46 compared to $74.80 for the three months ended June 30, 2023. For the six months ended June 30, 2024, the average NYMEX oil pricing was $79.69 per barrel of oil, or 6% higher than the average NYMEX price per barrel for the six months ended June 30, 2023. Our settled derivatives decreased our realized oil price per barrel by $0.14 for the six months ended June 30, 2024 and increased our realized oil price per barrel by $1.98 for the six months ended June 30, 2023. For the six months ended June 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $77.87 compared to $76.49 for the six months ended June 30, 2023.

Previous wording

For the three months ended March 31, 2024, the average NYMEX natural gas pricing was $2.15 per Mcf, or 22% lower than the average NYMEX price per Mcf for the three months ended March 31, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.36 for three months ended March 31, 2024 and increased our realized natural gas price per Mcf by $0.66 for the three months ended March 31, 2023. For the three months ended March

Current wording

For the three months ended June 30, 2024, the average NYMEX natural gas pricing was $2.07 per Mcf, or 11% lower than the average NYMEX price per Mcf for the three months ended June 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.65 for the three months ended June 30, 2024 and increased our realized natural gas price per Mcf by $1.02 for the three months ended June 30, 2023. For the three months ended June 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.63 compared to $4.06 for the three months ended June 30, 2023. For the six months ended June 30, 2024, the average NYMEX natural gas pricing was $2.11 per Mcf, or 17% lower than the average NYMEX price per Mcf for the six months ended June 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.50 for the six months ended June 30, 2024 and increased our realized natural gas price per Mcf by $0.83 for the six months ended June 30, 2023. For the six months ended June 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.41 compared to $3.67 for the six months ended June 30, 2023.

Previous wording

Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended March 31, 2024 decreased 3% from the same period in 2023, driven by the decrease in realized prices, excluding the effect of settled commodity derivatives, partially offset by the increase in production. The lower average realized prices were driven by lower average NYMEX natural gas prices, partially offset by increased NYMEX oil prices.

Current wording

Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended June 30, 2024 increased 4% from the same period in 2023. Oil revenues for the three months ended June 30, 2024 increased by 12% compared to the same period in 2023, driven by a 5% increase in production and a 7% increase in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues decreased by 29% for the three months ended June 30, 2024 compared to 2023 as a result of a 35% decrease in realized natural gas prices, excluding the effect of settled commodity derivatives, partially offset by an increase in production.

Previous wording

Production from oil and gas properties increased because of drilling success and the acquisition of additional net revenue interests. This increase in production is offset by the natural decline of the production rate of existing oil and natural gas wells as well as the sale of certain of our Permian Basin assets to Vital Energy, Inc. ("Vital Energy") in December 2023. The number of wells we participated in increased from 152.18 net wells on March 31, 2023 to 181.34 net wells on March 31, 2024.

Current wording

Production from oil and gas properties increased for the three and six months ended June 30, 2024 as compared to the same periods of 2023 due to drilling success and the acquisition of additional net revenue interests. This increase in production is offset by the natural decline of the production rate of existing oil and natural gas wells as well as the sale of certain of our Permian Basin assets to Vital Energy, Inc. ("Vital Energy") in December 2023. The number of wells we participated in increased from 157.57 net wells on June 30, 2023 to 191.94 net wells on June 30, 2024.

Previous wording

Lease operating expenses were $15.5 million ($7.13 per Boe) for the three months ended March 31, 2024, an increase of 12% from $13.8 million ($6.61 per Boe) during the same period in 2023. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, higher repair and maintenance costs, higher saltwater disposal costs and overall increased cost of services. The increase in lease operating expenses per Boe was primarily due to higher repair and maintenance costs, saltwater disposal costs, and compression costs, partially offset by the increase in production.

Current wording

Lease operating expenses were $29.1 million ($6.82 per Boe) for the six months ended June 30, 2024, an increase of 3% from $28.2 million ($6.96 per Boe) during the same period in 2023. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, higher compression and saltwater disposal costs and overall increased cost of services, partially offset by a decrease of $0.9 million in transportation and gathering expenses related to certain take in kind arrangements on natural gas volumes.

Previous wording

We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $4.3 million ($1.98 per Boe) for the three months ended March 31, 2024 compared to $5.1 million ($2.44 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the three months ended March 31, 2024 and 2023, respectively.

Current wording

We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.4 million ($2.59 per Boe) for the three months ended June 30, 2024 compared to $5.7 million ($2.90 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 6% and 7% during the three months ended June 30, 2024 and 2023, respectively.

Previous wording

Ad valorem taxes increased by $0.8 million during the three months ended March 31, 2024 as compared to the same period in 2023, primarily due to additional wells drilled and completed and new wells acquired.

Current wording

Ad valorem taxes increased during both the three and six months ended June 30, 2024 as compared to the same periods in 2023, primarily due to additional wells drilled and completed and new wells acquired.

Previous wording

Depletion and accretion was $40.9 million ($18.87 per Boe) for the three months ended March 31, 2024, an increase of 21% from $33.9 million ($16.24 per Boe) during the same period in 2023. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production and depletion rate.

Current wording

Depletion and accretion was $41.6 million ($19.78 per Boe) for the three months ended June 30, 2024, an increase of 19% from $35.0 million ($17.82 per Boe) during the same period in 2023. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production and depletion rate.

Previous wording

For the three months ended March 31, 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator no longer intends to drill certain locations.

Current wording

In the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations.

Previous wording

The following table provides components of our general and administrative expenses for the three months ended March 31, 2024 and 2023:

Current wording

The following table provides components of our general and administrative expenses for the three and six months ended June 30, 2024 and 2023:

Previous wording

The following table sets forth the gain (loss) on derivatives for the three months ended March 31, 2024 and 2023:

Current wording

The following table sets forth the gain (loss) on derivatives for the three and six months ended June 30, 2024 and 2023:

Previous wording

The following table represents our net cash receipts from derivatives for the three months ended March 31, 2024 and 2023:

Current wording

The following table represents our net cash receipts from (payments on) derivatives for the three and six months ended June 30, 2024 and 2023:

Previous wording

Interest expense was $3.2 million for the three months ended March 31, 2024 compared to $0.3 million for the three months ended March 31, 2023. The increase in interest expense during the three months ended March 31, 2024 as compared to 2023 was primarily due to an increase in the average outstanding balance on the revolving credit facility, an increase in interest rates and an increase in amortization of deferred financing costs.

Current wording

Interest expense was $5.8 million for the three months ended June 30, 2024 compared to $1.2 million for the three months ended June 30, 2023. The increase in interest expense during three months ended June 30, 2024 as compared to 2023 was primarily due to the increase in interest rates and amortization of deferred financing costs, and higher average outstanding balance on the revolving credit facility.

Previous wording

Gain on Derivatives – Common Stock Warrants

Current wording

Loss on Derivatives – Common Stock Warrants

Previous wording

We recorded a gain of $5.3 million during three months ended March 31, 2023 from the change in fair value of the warrant liability. See Note 3 and Note 9 of the Notes to Condensed Consolidated Financial Statements for additional information on the common stock warrants and the Warrant Exchange.

Current wording

We recognized a loss of $11.0 million and $5.7 million during the three and six months ended June 30, 2023, respectively, from the change in fair value of the warrant liability. See Note 3 and Note 9 of the Notes to the Condensed Consolidated Financial Statements for additional information on the common stock warrants and the Warrant Exchange.

Previous wording

We recorded a gain of $7.8 million for the three months ended March 31, 2024 from the change in fair value of the common and preferred stock of Vital Energy. See Note 4 of the Notes to Condensed Consolidated Financial Statements for additional information on the common and preferred stock of Vital Energy owned as of March 31, 2024.

Current wording

We recorded a loss of $8.8 million and $1.0 million during the three and six months ended June 30, 2024, respectively, from the change in fair value of the common and preferred stock of Vital Energy. See Note 4 of the Notes to Condensed Consolidated Financial Statements for additional information on the common and preferred stock of Vital Energy.

Previous wording

We recorded income tax expense of $4.8 million for the three months ended March 31, 2024 compared to $10.8 million for the three months ended March 31, 2023. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes. See Note 7 of the Notes to Condensed Consolidated Financial Statements for additional discussion of income taxes.

Current wording

We recorded an income tax expense of $1.7 million and $6.5 million for the three and six months ended June 30, 2024 compared to $4.1 million and $14.9 million for the three and six months ended June 30, 2023. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes. See Note 7 of the Notes to Condensed Consolidated Financial Statements for additional discussion of income taxes.

Previous wording

As of March 31, 2024, we had $137.5 million of debt outstanding under our Credit Agreement (as defined below). We had $123.0 million of liquidity as of March 31, 2024, consisting of $102.2 million of committed borrowing availability under the Credit Agreement and $20.8 million of cash on hand. On April 1, 2024, the Company entered into the Resignation, Appointment, Assignment and Third Amendment to Credit Agreement (the “Third Amendment”) by and among the Company, as borrower, Texas Capital Bank, as resigning administrative agent, Bank of America, N.A. (“Bank of America”), as successor administrative agent, and the lenders from time to time party thereto. The Third Amendment, among other things, increased the borrowing base from $275.0 million to $300.0 million, and increased the aggregate elected commitments from $240.0 million to $300.0 million. See Note 8 of the Notes to Condensed Consolidated Financial Statements for additional information.

Current wording

As of June 30, 2024, we had $165.0 million of debt outstanding under our Credit Agreement (as defined below). We had $148.2 million of liquidity as of June 30, 2024, consisting of $134.7 million of committed borrowing availability under the Credit Agreement and $13.5 million of cash on hand. On April 1, 2024, the Company entered into the Resignation, Appointment, Assignment and Third Amendment to Credit Agreement (the “Third Amendment”) by and among the Company, as borrower, Texas Capital Bank, as resigning administrative agent, Bank of America, N.A. (“Bank of America”), as successor administrative agent, and the lenders from time to time party thereto. The Third Amendment, among other things, increased the borrowing base from $275.0 million to $300.0 million, and increased the aggregate elected commitments from $240.0 million to $300.0 million. See Note 8 to the Notes to the Condensed Consolidated Financial Statements for additional information.

Previous wording

We paid dividends of $14.3 million, or $0.11 per share, and $14.6 million, or $0.11 per share, during the first quarter of 2024 and 2023, respectively. Any payment of future dividends will be at the discretion of the Company’s Board of Directors.

Current wording

Any payment of future dividends will be at the discretion of the Company’s Board of Directors.

Previous wording

During the three months ended March 31, 2023, we repurchased 273,017 shares under the program at an aggregate cost of $1.7 million.

Current wording

During the three and six months ended June 30, 2023, the Company repurchased 660,568 and 933,585 shares under the program at an aggregate cost of $4.1 million and $5.8 million, respectively.

Previous wording

The following table summarizes our changes in cash and restricted cash for the three months ended March 31, 2024 and 2023:

Current wording

The following table summarizes our changes in cash and cash equivalents for the six months ended June 30, 2024 and 2023:

Previous wording

The $12.8 million decrease in operating cash flows during the three months ended March 31, 2024 as compared to the same period in 2023 was primarily due to the decrease in oil and natural gas sales and higher operating costs as well as a decrease in settlements received from commodity derivatives. Settlements received during the three months ended March 31, 2024 were $2.7 million as compared to $6.4 million of settlements received on commodity derivatives during the same period in 2023.

Current wording

The $22.8 million decrease in operating cash flows during the six months ended June 30, 2024 as compared to the same period in 2023 was primarily due to higher interest expense and higher operating costs as well as a decrease in settlements received from commodity derivatives. Settlements received during the six months ended June 30, 2024 were $6.7 million as compared to $14.4 million of settlements received on commodity derivatives during the same period in 2023.

Previous wording

Our net cash provided by operating activities included a benefit of $7.1 million and a benefit of $11.9 million for the three months ended March 31, 2024 and 2023, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.

Current wording

Our net cash provided by operating activities included a benefit of $6.4 million and a benefit of $19.4 million for the six months ended June 30, 2024 and 2023, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.

Previous wording

For the three months ended March 31, 2024, our net cash used in investing activities was $71.0 million, which consisted primarily of $69.7 million of capital expenditures for oil and natural gas properties and $2.6 million of acquisitions of oil and natural gas properties.

Current wording

For the six months ended June 30, 2024, our net cash used in investing activities was $152.6 million, which consisted primarily of $135.9 million of capital expenditures for oil and natural gas properties and $20.9 million of acquisitions of oil and natural gas properties.

Previous wording

For the three months ended March 31, 2023, our net cash used in investing activities was $129.9 million, which consisted primarily of $105.6 million of capital expenditures for oil and natural gas properties and $24.4 million of acquisitions of oil and natural gas properties.

Current wording

For the six months ended June 30, 2023, our net cash used in investing activities was $211.8 million, which consisted primarily of $182.3 million of capital expenditures for oil and natural gas properties and $29.5 million of acquisitions of oil and natural gas properties.

Previous wording

For the three months ended March 31, 2023, our net cash provided by financing activities was $8.5 million, primarily due to $25.0 million of borrowings under our Credit Agreement, partially offset by $14.6 million of dividends paid on our common stock and $1.8 million of common stock repurchases.

Current wording

For the six months ended June 30, 2024, our net cash provided by financing activities was $22.8 million, primarily due to $55.0 million of borrowings under our Credit Agreement, partially offset by $28.7 million of dividends paid on our common stock and $0.4 million of common stock repurchases.

Previous wording

For the three months ended March 31, 2024, our net cash provided by financing activities was $12.7 million, primarily due to $27.5 million of borrowings under our Credit Agreement (as defined below), partially offset by $14.3 million of dividends paid on our common stock and $0.4 million of common stock repurchases.

Current wording

For the six months ended June 30, 2023, our net cash provided by financing activities was $19.8 million, primarily due to $55.0 million of net borrowings under our Credit Agreement, partially offset by $29.3 million of dividends paid on our common stock and $5.9 million of common stock repurchases.

Previous wording

The Credit Agreement initially provided for aggregate elected commitments of $150.0 million, an initial borrowing base of $325.0 million and an aggregate maximum revolving credit amount of $1.0 billion. The borrowing base is redetermined semiannually on or about April 1 and October 1 of each calendar year, and is subject to additional adjustments from time to time, including for asset sales, elimination or reduction of hedge positions and incurrence of other debt. On November 7, 2023, Granite Ridge entered into a First Amendment to the Credit Agreement (the "First Amendment") which, among other things, decreased the borrowing base from $325.0 million to $275.0 million and increased the aggregate elected commitments from $150.0 million to $240.0 million. This borrowing base decrease was a result of the disposition of certain assets in the Permian Basin to Vital Energy, Inc. On April 1, 2024, the Company entered into the Resignation, Appointment, Assignment and Third Amendment to Credit Agreement (the “Third Amendment”) by and among the Company, as borrower, Texas Capital Bank, as resigning administrative agent, Bank of America, N.A. (“Bank of America”), as successor administrative agent, and the lenders from time to time party thereto. The Third Amendment, among other things, (a) appointed Bank of America as administrative agent and L/C Issuer (as defined therein), replacing Texas Capital Bank, (b) increased the size of the lender group by adding nine new banks, with one bank exiting the facility, (c) increased the borrowing base from $275.0 million to $300.0 million, and (d) increased the aggregate elected commitments from $240.0 million to $300.0 million.

Current wording

The Credit Agreement initially provided for aggregate elected commitments of $150.0 million, a borrowing base of $325.0 million and an aggregate maximum revolving credit amount of $1.0 billion. The borrowing base is redetermined semiannually on or about April 1 and October 1 of each calendar year, and is subject to additional adjustments from time to time, including for asset sales, elimination or reduction of hedge positions and incurrence of other debt. On November 7, 2023, Granite Ridge entered into a First Amendment to the Credit Agreement (the "First Amendment") which, among other things, decreased the borrowing base from $325.0 million to $275.0 million and increased the aggregate elected commitments from $150.0 million to $240.0 million. This borrowing base decrease was a result of the disposition of certain assets in the Permian Basin to Vital Energy.

Previous wording

At March 31, 2024, the Company had outstanding borrowings of $137.5 million and $0.3 million of outstanding letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $102.2 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all assets of the Company and its restricted subsidiaries.

Current wording

At June 30, 2024, the Company had outstanding borrowings of $165.0 million and $0.3 million of outstanding letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $134.7 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all of the Company’s and its restricted subsidiaries’ assets.

Previous wording

(i)a leverage ratio, which is the ratio of Consolidated Total Debt to EBITDAX (each as defined in the Credit Agreement), of not greater than 3.00 to 1.00 as of the last day of any fiscal quarter, and

Current wording

(i)a leverage ratio, which is the ratio of Consolidated Total Debt to EBITDAX (each as defined in the Credit Agreement), of not greater than 3.00 to 1.00 as of the last day of each fiscal quarter, and

Previous wording

At March 31, 2024, we were in compliance with all covenants required by the Credit Agreement.

Current wording

As of June 30, 2024, we were in compliance with all financial covenants required by the Credit Agreement.

Previous wording

Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2023, there have been no material changes in our contractual obligations, other than the $27.5 million increase in long-term debt due to borrowings under the Credit Agreement.

Current wording

Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2023, there have been no material changes in our contractual obligations, other than the $55.0 million increase in long-term debt due to borrowings under the Credit Agreement.

Previous wording

For 2024, we are budgeting for approximately $265 million to $285 million in total planned capital expenditures, including approximately $35 million of acquisitions of oil and natural gas properties. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended March 31, 2024 and 2023 totaled $62.6 million and $98.6 million, respectively. Our capital expenditures for the three months ended March 31, 2024 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.

Current wording

For 2024, we are budgeting for approximately $355 million to $365 million in total planned capital expenditures, including approximately $60 million of acquisitions of oil and natural gas properties. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended June 30, 2024 and 2023 totaled $67.0 million and $58.7 million, respectively, and $129.6 million and $157.3 million during the six months ended June 30, 2024 and 2023, respectively. Our capital expenditures for the six months ended June 30, 2024 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.

Previous wording

The following table reflects our expenditures for acquisitions of proved and unproved properties for the three months ended March 31, 2024 and 2023:

Current wording

The following table reflects our expenditures for acquisitions of proved and unproved properties for the three and six months ended June 30, 2024 and 2023:

Previous wording

The establishment and consistent application of accounting policies is a vital component of accurately and fairly presenting our financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as ensuring compliance with applicable laws and regulations governing financial reporting. While there are rarely alternative methods or rules from which to select in establishing accounting and financial reporting policies, proper application often involves significant judgment regarding a given set of facts and circumstances and a complex series of decisions. Further, these estimates and other factors, including those outside of management’s control, could have significant adverse impact to the financial condition and results of operations.

Current wording

The establishment and consistent application of accounting policies is a vital component of accurately and fairly presenting our financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as ensuring compliance with applicable laws and regulations governing financial reporting. While there are rarely alternative methods or rules from which to select in establishing accounting and financial reporting policies, proper application often involves significant judgment regarding a given set of facts and circumstances and a complex series of decisions. Further, these estimates and other factors, including those outside of management’s control, could have a significant adverse impact to the financial condition and results of operations.

Previous wording

There have been no material changes in our critical accounting policies and procedures during the three months ended March 31, 2024. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2023 Form 10-K.

Current wording

There have been no material changes in our critical accounting policies and procedures during the six months ended June 30, 2024. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2023 Form 10-K.