What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-08-06 compared with 2024-05-07 · 129 added, 61 removed, 260 unchanged (42% of the section changed)

42 unchanged sentences

Alongside our primary focus on traditional revenue streams from our asset base, we will continue to explore the relevance of our assets in energy transition, including opportunities in renewable energy and carbon sequestration.

As of March 31, 2024, our mineral and royalty interests were located in 41 states in the continental United States, including all of the major onshore producing basins.

As of June 30, 2024, our mineral and royalty interests were located in 41 states in the continental United States, including all of the major onshore producing basins.

These non-cost-bearing interests include ownership in approximately 68,000 producing wells.

5 unchanged sentences

A significant portion of Shelby Trough development in recent years has been performed by Aethon Energy (“Aethon”) under the two Joint Exploration Agreements (“JEAs”) between us and Aethon.

In the first half of 2024, revenues from Aethon's operations in the Shelby Trough made up 6% of our total revenues.

The JEAs outline Aethon’s development obligations and other rights and obligations of each party related to our core mineral positions in San Augustine and Angelina counties in East Texas.

In December 2023, we received notice that Aethon was exercising the “time-out” provisions under these JEAs.

When natural gas prices fall below specified thresholds, Aethon may elect to temporarily suspend its drilling obligations for up to nine consecutive months and a maximum of 18 total months in any 48-month period.

Aethon has not previously invoked the time-out provisions under the JEAs.

We continue working closely with Aethon to finalize development plans going forward and assess the effect of the temporary suspension of drilling obligations, and we are analyzing the potential impacts to us on an ongoing basis.

In April 2024, Aethon began curtailing production volumes on a small number of producing wells.

This temporary decrease is expected to amount to approximately 800 Boe/d.

Additionally, Aethon has indicated that it intends to curtail these

wells and delay the initial production of an additional 10 wells until the second half of the year, when natural gas prices are forecast to improve.

Under the JEAs, Aethon may elect to temporarily suspend its drilling obligations for up to nine consecutive months and a maximum of 18 total months in any 48-month period when natural gas prices fall below specified thresholds.

When the "time-out" provision is invoked, the current program year under each agreement is paused during the suspension period such that the program year may extend beyond 12 calendar months.

In December 2023, we received notice that Aethon was exercising the time-out provisions under the JEAs in San Augustine and Angelina, implying a maximum resumption date in September 2024.

Aethon drilled three wells in the first quarter of 2024 in San Augustine county despite the invocation of the time-out and has brought 16 total wells online in the first half of 2024.

During the second quarter, we continued working with Aethon to firm up future development plans in light of Aethon's previously announced invocation of a time-out.

Austin Chalk Update

We have entered into agreements with multiple operators to drill wells in the areas of the Austin Chalk in East Texas, where we have significant acreage positions.

The results of the test program in the Brookeland Field demonstrated that modern completion technology has the potential to improve production rates and increase reserves when compared to the vintage, unstimulated wells in the Austin Chalk formation.

To date, 30 wells with modern completions are being produced in the field.

We remain focused on full field development, which includes working with multiple operators on drilling and field optimization opportunities in the Brookeland Field to enhance production and increase reserves from the Austin Chalk formation.

Business Environment

2 unchanged sentences

Oil and natural gas prices have been historically volatile based upon the dynamics of supply and demand.

To manage the variability in cash flows associated with the projected sale of our oil and natural gas production, we use various derivative instruments, which have recently consisted of fixed-price swap contracts and costless collar contracts.

Oil prices increased from the prior period ended March 31, 2023 as a result of heightened geopolitical risk related to the attacks targeting commercial ships transiting the Red Sea shipping channel and general elevated tensions around the region.

Oil prices increased from the prior period ended June 30, 2023 as a result of heightened geopolitical risk related to the attacks targeting commercial ships transiting the Red Sea shipping channel and general elevated tensions around the region.

In addition, the recent extension of OPEC+ voluntary production cuts add to upward price pressure at a time of the year when oil demand typically increases because of the spring and summer driving seasons in the Northern Hemisphere.

Natural gas prices decreased from the prior period ended March 31, 2023 as a result of a large surplus of storage inventory.

Natural gas prices increased during the second quarter of 2024 because of less natural gas-directed drilling and production curtailments due to low natural gas prices in the first quarter of 2024 as a result of a large surplus of storage inventory.

The United States started the winter heating season with a surplus and a mild winter led to below average consumption, further increasing the surplus of storage inventory.

3 unchanged sentences

Benchmark Prices 1

First Quarter First Quarter

Second Quarter First Quarter Second Quarter First Quarter

WTI spot oil price ($/Bbl) $ 82.83 $ 83.96 $ 70.66 $ 75.68

4 unchanged sentences

Rotary Rig Count 1

First Quarter First Quarter

Second Quarter First Quarter Second Quarter First Quarter

Oil 479 506 545 592

Natural gas 97 112 124 160

Other 5 3 5 3

Total 581 621 674 755

12 unchanged sentences

The following table shows natural gas storage volumes by region at the end of each quarter presented:

First Quarter First Quarter

Second Quarter First Quarter Second Quarter First Quarter

East 660 363 643 335

Midwest 779 510 705 421

4 unchanged sentences

Natural Gas Exports

The EIA expects exports of natural gas, both by pipeline and as LNG, will increase in 2024.

The EIA forecasts average exports of 12.2 Bcf per day for 2024, a 2% increase from 2023 levels.

In 2025, the EIA expects LNG exports to increase because three of the five LNG export projects currently under construction are expected to start operations and ramp up to full production.

The EIA also expects natural gas exports by pipeline to grow because of increased natural gas exports to Mexico.

Net natural gas exports averaged 11.9 Bcf per day during the first half of 2024, consistent with the average for the full year of 2023.

The EIA expects U.S.

LNG exports will increase as LNG export projects come on line in late 2024 and mid-2025.

The EIA forecasts average exports of 12.5 Bcf per day for the remainder of 2024 and 14.3 Bcf per day for 2025.

How We Evaluate Our Operations

37 unchanged sentences

If commodity prices decline in the future, our hedging contracts will partially mitigate the effect of lower prices on our future revenue.

Our open oil and natural gas derivative contracts as of March 31, 2024 are detailed in Note 4 - Commodity Derivative Financial Instruments to our unaudited consolidated financial statements included elsewhere in this Quarterly Report.

Our open oil and natural gas derivative contracts as of June 30, 2024 are detailed in Note 4 - Commodity Derivative Financial Instruments to our unaudited consolidated financial statements included elsewhere in this Quarterly Report.

Pursuant to the terms of our Credit Facility, we are allowed to hedge certain percentages of expected future monthly production volumes equal to the lesser of (i) internally forecasted production and (ii) the average of reported production for the most recent three months.

We are allowed, but not required, to hedge, using collars and swaps with a term of no more than four years, up to 90% of our expected future volumes for the first 24 months, 70% for months 25 through 36, and 50% for months 37 through 48.

As of March 31, 2024, we had hedged 72% and 71% of our available oil and condensate hedge volumes for 2024 and 2025, respectively.

As of March 31, 2024, we had also hedged 69% and 60% of our available natural gas hedge volumes for 2024 and 2025, respectively.

We are allowed, but not required, to hedge, using swaps and collars with a term of no more than four years, up to 90% of our expected future volumes for the first 24 months, 70% for months 25 through 36, and 50% for months 37 through 48.

As of June 30, 2024, we had hedged 72% and 71% of our available oil and condensate hedge volumes for 2024 and 2025, respectively.

As of June 30, 2024, we had also hedged 69% and 66% of our available natural gas hedge volumes for 2024 and 2025, respectively.

We intend to continuously monitor the production from our assets and the commodity price environment, and will, from time to time, add additional hedges within the percentages described above related to such production.

8 unchanged sentences

The following table presents a reconciliation of net income (loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA and Distributable cash flow for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(in thousands)

14 unchanged sentences

Results of Operations

Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023

The following table shows our production, revenue, and operating expenses for the periods presented:

Three Months Ended March 31,

Three Months Ended June 30,

2024 2023 Variance

30 unchanged sentences

however, revenue attributable to NGLs is included in our natural gas revenue and our calculation of realized prices for natural gas.

Total revenue for the quarter ended March 31, 2024 decreased compared to the quarter ended March 31, 2023.

The decrease in total revenue in the first quarter of 2024 is primarily due to a loss on our commodity derivative instruments compared to a gain in the corresponding prior period and a decrease in natural gas and NGL sales which was partially offset by an increase in oil and condensate sales.

Total revenue for the quarter ended June 30, 2024 decreased compared to the quarter ended June 30, 2023.

The decrease in total revenue in the second quarter of 2024 is primarily due to a loss on our commodity derivative instruments compared to a gain in the corresponding prior period and a decrease in natural gas and NGL sales, which were partially offset by an increase in oil and condensate sales.

Oil and condensate sales.

Oil and condensate sales increased for the quarter ended March 31, 2024 as compared to the corresponding period in 2023 primarily due to higher production volumes.

Oil and condensate sales increased for the quarter ended June 30, 2024 as compared to the corresponding period in 2023 primarily due to higher production volumes and realized commodity prices.

The increase in oil and condensate production was driven by higher mineral and royalty production in the Permian Basin.

Our mineral and royalty interest oil and condensate volumes accounted for 94% and 92% of total oil and condensate volumes for quarters ended March 31, 2024 and 2023, respectively.

Our mineral and royalty interest oil and condensate volumes accounted for 95% and 93% of total oil and condensate volumes for quarters ended June 30, 2024 and 2023, respectively.

Natural gas and natural gas liquids sales.

Natural gas and NGL sales decreased for the quarter ended March 31, 2024 as compared to the corresponding prior period.

The decrease was due to lower realized commodity prices between the comparative periods.

Mineral and royalty interest production accounted for 95% and 94% of our natural gas volumes for the quarters ended March 31, 2024 and 2023, respectively.

Natural gas and NGL sales decreased for the quarter ended June 30, 2024 as compared to the corresponding prior period.

The decrease was due to lower realized commodity prices between the comparative periods partially offset by an increase in production volumes.

The increase in production volumes was driven by an increase in royalty interest production volumes, primarily within the Haynesville/Bossier play, including 29 new wells coming online from the Aethon development program in the Shelby Trough subsequent to the second quarter of 2023.

Mineral and royalty interest production accounted for 94% and 93% of our natural gas volumes for the quarters ended June 30, 2024 and 2023, respectively.

Gain (loss) on commodity derivative instruments.

2 unchanged sentences

The changes in fair value result from new positions and settlements that may occur during each reporting period, as well as the relationships between contract prices and the associated forward curves.

During the first quarter of 2024, we recognized a loss from our commodity derivative instruments compared to a gain in the same period in 2023.

For the three months ended March 31, 2024, we recognized $13.8 million of realized gains and $25.1 million of unrealized losses from our oil and natural gas commodity contracts, compared to $13.3 million of realized gains and $39.0 million of unrealized gains in the same period in 2023.

The unrealized losses on our commodity contracts during the first quarter of 2024 were primarily driven by changes in the forward commodity price curves for oil and the unrealized gains in the same period in 2023 were driven by changes in the forward commodity price curves for natural gas.

During the second quarter of 2024, we recognized a loss from our commodity derivative instruments compared to a gain in the same period in 2023.

For the three months ended June 30, 2024, we recognized $11.8 million of realized gains and $17.4 million of unrealized losses from our oil and natural gas commodity contracts, compared to $28.2 million of realized gains and $16.9 million of unrealized losses in the same period in 2023.

The unrealized losses on our commodity contracts during the second quarters of 2024 and 2023 were primarily driven by changes in the forward commodity price curves for natural gas.

Lease bonus and other income.

1 unchanged sentence

Lease bonus revenue can vary substantively between periods because it is derived from individual transactions with operators, some of which may be significant.

Lease bonus and other income for the first quarter of 2024 was lower than the same period in 2023.

Leasing activity in the Austin Chalk play and proceeds from surface use waivers on our mineral acreage supporting solar development in Texas made up the majority of lease bonus and other income for the first quarter of 2024, while the majority of the first quarter 2023 activity came from leasing activity in the Haynesville/Bossier play and the Permian Basin.

Lease bonus and other income for the second quarter of 2024 was higher than the same period in 2023.

Leasing activity in the Permian Basin made up the majority of lease bonus and other income for the second quarter of 2024, while the majority of the second quarter 2023 activity came from leasing activity in the Bakken/Three Forks and Haynesville/Bossier plays.

Operating Expenses

1 unchanged sentence

Lease operating expense includes recurring expenses associated with our non-operated working interests necessary to produce hydrocarbons from our oil and natural gas wells, as well as certain nonrecurring expenses, such as well repairs.

Lease operating expense decreased for the quarter ended March 31, 2024 as compared to the same period in 2023, primarily due to lower nonrecurring service-related expenses, including workovers.

Lease operating expense decreased for the quarter ended June 30, 2024 as compared to the same period in 2023, primarily due to lower nonrecurring service-related expenses, including workovers.

Production costs and ad valorem taxes .

4 unchanged sentences

Rates, methods of calculating property values, and timing of payments vary between taxing authorities.

For the quarter ended March 31, 2024, production costs and ad valorem taxes increased as compared to the quarter ended March 31, 2023, primarily due to severance tax refunds received in the first quarter of 2023 with no similar activity recorded in the first quarter of 2024.

For the quarter ended June 30, 2024, production costs and ad valorem taxes increased as compared to the quarter ended June 30, 2023, primarily due to higher production taxes stemming from increased production volumes.

Exploration expense .

Exploration expense typically consists of dry-hole expenses, delay rentals, and geological and geophysical costs, including seismic costs, and is expensed as incurred under the successful efforts method of accounting.

Exploration expense for the quarter ended March 31, 2024 and the corresponding prior period of 2023 was minimal.

Exploration expense for the quarter ended June 30, 2024 and the corresponding prior period of 2023 was minimal.

Depreciation, depletion, and amortization .

2 unchanged sentences

We adjust our depletion rates semi-annually based upon mid-year and year-end reserve reports, except when circumstances indicate that there has been a significant change in reserves or costs.

Depreciation, depletion, and amortization increased for the quarter ended March 31, 2024 as compared to the same period in 2023 due to higher production volumes.

Depreciation, depletion, and amortization increased for the quarter ended June 30, 2024 as compared to the same period in 2023 due to higher production volumes.

General and administrative .

General and administrative expenses are costs not directly associated with the production of oil and natural gas and include expenses such as the cost of employee salaries and related benefits, office expenses, and fees for professional services.

For the quarter ended March 31, 2024, general and administrative expenses increased as compared to the same period in 2023, primarily due to higher professional costs related to outside legal fees, consulting costs for internal projects, and the timing of annual tax services performed.

For the quarter ended June 30, 2024, general and administrative expenses increased as compared to the same period in 2023, primarily due to an increase in cash compensation driven by an increase in salaries as well as a separation payment related to the departure of a senior executive.

Interest expense .

Interest expense was lower in the first quarter of 2024 relative to the corresponding period in 2023, due to lower average outstanding borrowings under our Credit Facility.

Interest expense in the second quarter of 2024 was consistent with the corresponding period in 2023 with minimal average outstanding borrowings under our Credit Facility during each period.

Interest expense for both periods primarily consisted of commitment fees and amortization of debt issuance costs.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023

The following table shows our production, revenues, pricing, and expenses for the periods presented:

Six Months Ended June 30,

2024 2023 Variance

(Dollars in thousands, except for realized prices)

Oil and condensate (MBbls) 1,876 1,639 237 14.5 %

Natural gas (MMcf) 1

32,820 31,121 1,699 5.5 %

Equivalents (MBoe) 7,346 6,826 520 7.6 %

Equivalents/day (MBoe) 40.4 37.7 2.7 7.2 %

Realized prices, without derivatives:

Oil and condensate ($/Bbl) $ 77.35 $ 74.72 $ 2.63 3.5 %

Natural gas ($/Mcf) 1

2.39 3.18 (0.79) (24.8) %

Equivalents ($/Boe) $ 30.44 $ 32.45 $ (2.01) (6.2) %

Oil and condensate sales $ 145,113 $ 122,460 $ 22,653 18.5 %

Natural gas and natural gas liquids sales 1

78,504 99,042 (20,538) (20.7) %

Lease bonus and other income 8,337 6,502 1,835 28.2 %

Revenue from contracts with customers 231,954 228,004 3,950 1.7 %

Gain (loss) on commodity derivative instruments (16,837) 63,574 (80,411) (126.5) %

Total revenue $ 215,117 $ 291,578 $ (76,461) (26.2) %

Operating expenses:

Lease operating expense $ 5,011 $ 5,534 $ (523) (9.5) %

Production costs and ad valorem taxes 26,507 25,511 996 3.9 %

Exploration expense 17 8 9 112.5 %

Depreciation, depletion, and amortization 22,995 21,568 1,427 6.6 %

General and administrative 27,485 24,502 2,983 12.2 %

Other expense:

Interest expense 1,255 1,459 (204) (14.0) %

1 As a mineral and royalty interest owner, we are often provided insufficient and inconsistent data on NGL volumes by our operators.

As a result, we are unable to reliably determine the total volumes of NGLs associated with the production of natural gas on our acreage.

Accordingly, no NGL volumes are included in our reported production;

however, revenue attributable to NGLs is included in our natural gas revenue and our calculation of realized prices for natural gas.

Total revenue for the six months ended June 30, 2024 decreased compared to the corresponding prior period.

The decrease in total revenue is primarily due to a loss on our commodity derivative instruments compared to a gain in the corresponding prior period and a decrease in natural gas and NGL sales, which were partially offset by an increase in oil and condensate sales.

Oil and condensate sales.

Oil and condensate sales during the six months ended June 30, 2024 increased compared to the corresponding prior period primarily due to higher production volumes and realized commodity prices.

The increase in oil and condensate production was driven by mineral and royalty production in the Permian Basin.

Our mineral and royalty interest oil and condensate volumes accounted for 94% and 93% of total oil and condensate volumes for the six months ended June 30, 2024 and 2023, respectively.

Natural gas and natural gas liquids sales.

Natural gas and NGL sales during the six months ended June 30, 2024 decreased compared to the corresponding prior period due to lower realized commodity prices partially offset by higher production volumes.

Mineral and royalty interest production accounted for 95% and 94% of our natural gas volumes for the six months ended June 30, 2024 and 2023, respectively.

Gain (loss) on commodity derivative instruments.

During the six months ended June 30, 2024, we recognized a loss from our commodity derivative instruments compared to a gain for the same period in 2023.

In the six months ended June 30, 2024, we recognized $25.6 million of realized gains and $42.5 million of unrealized losses from our oil and natural gas commodity contracts, compared to $41.5 million of realized gains and $22.1 million of unrealized gains in the same period in 2023.

The unrealized losses on our commodity contracts during the six months ended June 30, 2024 and the unrealized gains in the corresponding period in 2023 were primarily driven by changes in the forward commodity price curves for oil and natural gas.

Lease bonus and other income.

Lease bonus and other income for the six months ended June 30, 2024 was higher than the same period in 2023.

Leasing activity in the Permian Basin and the Austin Chalk play trend and proceeds from surface use waivers on our mineral acreage supporting solar development in Texas composed the majority of lease bonus and other income for the six months ended June 30, 2024, while a substantial portion of the activity in the corresponding prior period came from leasing activity in the Bakken/Three Forks and Haynesville/Bossier plays.

Operating and Other Expenses

Lease operating expense .

Lease operating expense decreased for the six months ended June 30, 2024 as compared to the same period in 2023, primarily due to lower nonrecurring service-related expenses, including workovers.

Production costs and ad valorem taxes .

For the six months ended June 30, 2024, production costs and ad valorem taxes increased as compared to the six months ended June 30, 2023, primarily due to an increase in production taxes from higher oil commodity prices and production volumes.

Exploration expense .

Exploration expense was minimal for the six months ended June 30, 2024 and for the six months ended June 30, 2023.

Depreciation, depletion, and amortization .

Depreciation, depletion, and amortization increased for the six months ended June 30, 2024 as compared to the same period in 2023, primarily due to increased production volumes.

General and administrative .

For the six months ended June 30, 2024, general and administrative expenses increased as compared to the same period in 2023, primarily due to higher professional costs related to outside legal fees, consulting costs for internal projects, and cash compensation.

The increase in cash compensation was driven by increases in salaries and costs recognized under our short-term cash incentive plan.

Interest expense .

Interest expense was lower in the six months ended June 30, 2024 than in the prior period primarily due to lower average outstanding borrowings under our Credit Facility.

Liquidity and Capital Resources

15 unchanged sentences

The following table shows our cash flows for the periods presented:

Three Months Ended March 31,

Six Months Ended June 30,

2024 2023 Change

5 unchanged sentences

Our operating cash flows are dependent, in large part, on our production, realized commodity prices, derivative settlements, lease bonus revenue, and operating expenses.

Cash flows provided by operating activities decreased for the three months ended March 31, 2024 as compared to the same period of 2023.

The decrease was primarily due to reduced natural gas and NGL sales due to lower realized commodity prices in the three months ended March 31, 2024 compared to the same period of 2023.

Cash flows provided by operating activities decreased for the six months ended June 30, 2024 as compared to the same period of 2023.

The decrease was primarily due to reduced natural gas and NGL sales due to lower realized commodity prices partially offset by higher oil sales.

The overall decrease was also due to a reduction in cash received on the settlement of commodity derivatives in the six months ended June 30, 2024 compared to the same period of 2023.

Investing Activities .

Net cash used in investing activities in the three months ended March 31, 2024 increased as compared to the same period of 2023.

The increase was primarily due to acquisitions of oil and natural gas properties in the three months ended March 31, 2024 as compared to no acquisition activity in the corresponding prior period.

Net cash used in investing activities in the six months ended June 30, 2024 increased as compared to the same period of 2023.

The increase was primarily due to acquisitions of oil and natural gas properties in the six months ended June 30, 2024 as compared to no acquisition activity in the corresponding prior period.

Financing Activities .

Cash flows used in financing activities decreased for the three months ended March 31, 2024 as compared to the same period of 2023.

The decrease was primarily due to net repayments on our Credit Facility for the three months ended March 31, 2023 compared to no net repayments for the three months ended March 31, 2024.

Cash flows used in financing activities decreased for the six months ended June 30, 2024 as compared to the same period of 2023.

The decrease was primarily due to lower distributions paid to unitholders and no net repayments on our Credit Facility for the six months ended June 30, 2024 compared to net repayments for the six months ended June 30, 2023.

Development Capital Expenditures

Our 2024 capital expenditure budget associated with our non-operated working interests is expected to be approximately $2.3 million, net of farmout reimbursements, of which $0.3 million has been invested in the three months ended March 31, 2024.

Our 2024 capital expenditure budget associated with our non-operated working interests is expected to be approximately $2.3 million, net of farmout reimbursements, of which $0.4 million has been invested in the six months ended June 30, 2024.

The majority of this capital is anticipated to be spent on workovers and recompletions on existing wells in which we own a working interest.

Through March 31, 2024, we have also spent $0.7 million acquiring leases in areas around our drilling programs.

During the three months ended March 31, 2024, we acquired mineral and royalty interests that consisted of substantially all unproved oil and natural gas properties from various sellers for cash consideration of $23.0 million, including capitalized direct transaction costs.

These acquisitions were primarily located in the Gulf Coast land region and were funded with cash from operating activities.

Through June 30, 2024, we have also spent $1.8 million acquiring leases in areas around our drilling programs.

During the six months ended June 30, 2024, we acquired mineral and royalty interests that consisted of primarily unproved oil and natural gas properties from various sellers for an aggregate of $50.5 million, including capitalized direct transaction costs.

The consideration paid consisted of $49.5 million in cash that was funded from operating activities and $1.0 million in equity that was funded through the issuance of common units of the Partnership based on the fair values of the common units issued on the acquisition dates.

These acquisitions were considered asset acquisitions and were primarily located in the Gulf Coast land region.

Our current commercial strategy includes the continuation of meaningful, targeted mineral and royalty acquisitions to complement our existing positions.

10 unchanged sentences

We are subject to various affirmative, negative, and financial maintenance covenants which pose limitations on future borrowings, leases, hedging, and sales of assets.

As of March 31, 2024, we were in compliance with all debt covenants.

As of June 30, 2024, we were in compliance with all debt covenants.

See "Note 6 – Credit Facility" to the unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Contractual Obligations

As of March 31, 2024, there have been no material changes to our contractual obligations previously disclosed in our 2023 Annual Report on Form 10-K.

As of June 30, 2024, there have been no material changes to our contractual obligations previously disclosed in our 2023 Annual Report on Form 10-K.

Critical Accounting Policies and Related Estimates

As of March 31, 2024, there have been no significant changes to our critical accounting policies and related estimates previously disclosed in our 2023 Annual Report on Form 10-K.

As of June 30, 2024, there have been no significant changes to our critical accounting policies and related estimates previously disclosed in our 2023 Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis