What changed in this filing

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Item 1. Financial Statements

2022-11-03 compared with 2022-08-04 · 111 added, 77 removed, 488 unchanged (28% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2022 December 31,

7 unchanged sentences

From affiliates

20,758 20,834

Derivative financial instruments 2,368 5,258

30 unchanged sentences

Mezzanine equity:

Series B Convertible Preferred stock — 5,000,000 shares authorized, 175,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

Series B Convertible Preferred stock — 5,000,000 shares authorized, 175,000 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

175,000 175,000

Stockholders' equity:

Common stock—$ 0.50 par, 400,000,000 shares authorized, 233,158,892 and 232,924,646 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

Common stock—$ 0.50 par, 400,000,000 shares authorized, 233,757,678 and 232,924,646 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

116,879 116,462

10 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

14 unchanged sentences

28,608 26,576 79,873 77,150

2,342 — 3,363 —

Depreciation, depletion and amortization

48 unchanged sentences

Balance at June 30, 2021 232,850 $ 116,425 $ 1,098,300 $ ( 267,315 ) $ 947,410

Stock-based compensation 298 149 1,653 — 1,802

Income tax withholdings on equity awards ( 223 ) ( 112 ) ( 1,102 ) — ( 1,214 )

Net loss — — — ( 288,306 ) ( 288,306 )

Payment of preferred dividends — — — ( 4,411 ) ( 4,411 )

Balance at September 30, 2021 232,925 $ 116,462 $ 1,098,851 $ ( 560,032 ) $ 655,281

Balance at January 1, 2022 232,925 $ 116,462 $ 1,100,359 $ ( 204,042 ) $ 1,012,779

1 unchanged sentence

( 3 ) ( 1 ) 1,496 — 1,495

Income tax withholdings on equity awards

( 2 ) ( 1 ) ( 17 ) — ( 18 )

Net loss — — — ( 111,424 ) ( 111,424 )

4 unchanged sentences

304 151 1,429 — 1,580

Income tax withholdings on equity awards

( 65 ) ( 32 ) ( 1,314 ) — ( 1,346 )

Net income — — — 376,891 376,891

2 unchanged sentences

Balance at June 30, 2022 233,159 $ 116,579 $ 1,101,953 $ 52,747 $ 1,271,279

Stock-based compensation 849 425 1,418 — 1,843

Income tax withholdings on equity awards ( 250 ) ( 125 ) ( 4,766 ) — ( 4,891 )

Net income — — — 355,596 355,596

Payment of preferred dividends — — — ( 4,411 ) ( 4,411 )

Balance at September 30, 2022 233,758 $ 116,879 $ 1,098,605 $ 403,932 $ 1,619,416

The accompanying notes are an integral part of these statements.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

19 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

Capital expenditures and acquisitions

( 768,327 ) ( 508,051 )

24 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

September 30, 2022

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES –

2 unchanged sentences

and its wholly-owned subsidiaries (collectively, "Comstock" or the "Company").

In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of June 30, 2022, and the related results of operations and cash flows for the periods being presented.

In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of September 30, 2022, and the related results of operations and cash flows for the periods being presented.

Net income and comprehensive income are the same in all periods presented.

3 unchanged sentences

These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2021.

The results of operations for the period through June 30, 2022 are not necessarily an indication of the results expected for the full year.

The results of operations for the period through September 30, 2022 are not necessarily an indication of the results expected for the full year.

Other Current Assets

Other current assets at September 30, 2022 and December 31, 2021 consisted of the following:

September 30,

2022 December 31, 2021

(In thousands)

Pipe inventory $ 30,588 $ 5,015

Production tax refunds receivable 7,084 7,879

Prepaid expenses 1,865 2,183

Accrued treating and transportation fees 933 —

$ 40,470 $ 15,077

Property and Equipment

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(In thousands)

3 unchanged sentences

Ending capitalized exploratory project costs $ 29,915 $ 29,915

As of June 30, 2022 and December 31, 2021, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

As of September 30, 2022 and December 31, 2021, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

The Company assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis.

3 unchanged sentences

The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable oil and natural gas reserves.

Undrilled acreage can also be valued based on sales transactions in

comparable areas.

Undrilled acreage can also be valued based on sales transactions in comparable areas.

Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, production costs, capital expenditures, and future production as well as estimated proved oil and gas reserves and risk-adjusted probable oil and natural gas reserves.

4 unchanged sentences

As a result of these changes, there may be future impairments in the carrying values of these or other properties.

The Company had goodwill of $ 335.9 million as of June 30, 2022 that was recorded in 2018.

The Company had goodwill of $ 335.9 million as of September 30, 2022 that was recorded in 2018.

The Company is not required to amortize goodwill as a charge to earnings;

21 unchanged sentences

The costs associated with drilling and completion operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of our proved oil and natural gas properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense.

Lease costs recognized during the three months and six months ended June 30, 2022 and 2021 were as follows:

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

Lease costs recognized during the three months and nine months ended September 30, 2022 and 2021 were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

6 unchanged sentences

$ 38,088 $ 8,892 $ 85,126 $ 29,421

Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $ 0.8 million and $ 0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $ 1.5 million and $ 1.3 million for the six months ended June 30, 2022 and 2021, respectively.

Cash payments for operating leases associated with right-of-use assets included in cash used for investing activities were $ 34.5 million and $ 7.7 million for the three months ended June 30, 2022 and 2021, respectively, and $ 45.6 million and $ 19.2 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022 and December 31, 2021, the operating leases had a weighted-average term of 2.8 years and 2.7 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 3.5 % and 2.7 %, respectively.

As of June 30, 2022, the Company also had expected future payments for contracted drilling services of $ 22.2 million.

As of June 30, 2022, expected future payments related to contracts that contain operating leases were as follows:

Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $ 0.8 million and $ 0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $ 2.3 million and $ 1.9 million for the nine months ended September 30, 2022 and 2021, respectively.

Cash payments for operating leases associated with right-of-use assets included in cash used for investing activities were $ 37.3 million and $ 8.2 million for the three months ended September 30, 2022 and 2021, respectively, and $ 82.8 million and $ 27.5 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 and December 31, 2021, the operating leases had a weighted-average term of 2.5 years and 2.7 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 3.5 % and 2.7 %, respectively.

As of September 30, 2022, the Company also had expected future payments for contracted drilling services of $ 16.0 million.

As of September 30, 2022, expected future payments related to contracts that contain operating leases were as follows:

(In thousands)

July 1 to December 31, 2022 $ 20,391

October 1 to December 31, 2022 $ 10,279

Thereafter 17

3 unchanged sentences

Accrued Costs

Accrued costs at June 30, 2022 and December 31, 2021 consisted of the following:

Accrued costs at September 30, 2022 and December 31, 2021 consisted of the following:

September 30,

2022 December 31, 2021

(In thousands)

Accrued interest payable $ 54,377 $ 60,305

Accrued drilling costs 33,808 19,995

Accrued income and other taxes $ 56,388 $ 15,655

Accrued drilling costs 36,197 19,995

Accrued transportation costs 27,690 22,859

Accrued interest payable 19,861 60,305

Accrued employee compensation 6,529 12,320

5 unchanged sentences

The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:

Six Months Ended

Nine Months Ended

September 30,

(In thousands)

1 unchanged sentence

New wells placed on production

Acquisition of natural gas treating plant 1,211 —

Acquisitions 1,211 —

Liabilities settled and assets disposed of

9 unchanged sentences

All of Comstock's natural gas derivative financial instruments, except for certain basis swaps, are tied to the Henry Hub-NYMEX price index.

The Company had the following oil and natural gas price derivative financial instruments at June 30, 2022:

The Company had the following oil and natural gas price derivative financial instruments at September 30, 2022:

Future Production Period

Six Months Ending December 31, 2022 Year Ending December 31, 2023 Total

Three Months Ending December 31, 2022 Year Ending December 31, 2023 Total

Natural Gas Swap Contracts:

11 unchanged sentences

(1) Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices.

The aggregate fair value of the Company's derivative instruments are presented on a gross basis in the accompanying consolidated balance sheets.

The classification of derivative financial instruments between assets and liabilities, consists of the following:

Type Consolidated Balance Sheet Location June 30,

The classification of derivative financial instruments of assets or liabilities, consists of the following:

Type Consolidated Balance Sheet Location September 30,

2022 December 31, 2021

13 unchanged sentences

Recognized in Earnings Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors.

The Company recognized $ 1.6 million and $ 1.8 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended June 30, 2022 and 2021, respectively, and $ 3.1 million and $ 3.5 million for the six months ended June 30, 2022 and 2021, respectively.

In June 2022, the Company granted an aggregate of 317,831 shares of restricted stock to its directors and employees.

The grants were valued at $ 16.80 per share.

As of June 30, 2022, Comstock had 930,006 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 9.50 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 7.6 million as of June 30, 2022 is expected to be recognized over a period of 2.4 years.

In June 2022, the Company granted an aggregate of 162,511 PSUs to its executive officers at a value of $ 25.26 per unit.

As of June 30, 2022, Comstock had 1,212,421 PSUs outstanding at a weighted average grant date fair value of $ 10.41 per unit.

The Company recognized $ 1.8 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended September 30, 2022 and 2021, and $ 4.9 million and $ 5.3 million for the nine months ended September 30, 2022 and 2021, respectively.

During the nine months ended September 30, 2022, the Company granted an aggregate of 618,382 shares of restricted stock to its directors and employees.

The weighted average grant date value of the 2022 awards were $ 17.74 per share.

As of September 30, 2022, Comstock had 956,649 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 13.33 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 11.6 million as of September 30, 2022 is expected to be recognized over a period of 2.5 years.

During the nine months ended September 30, 2022, the Company granted an aggregate of 223,004 PSUs to its executive officers with a weighted average grant date value of $ 26.07 per unit.

As of September 30, 2022, Comstock had 628,845 PSUs outstanding with a weighted average grant date fair value of $ 14.52 per unit.

The number of shares of common stock to be issued related to the PSUs is based on the Company's stock price performance as compared to its peers which could result in the issuance of anywhere from zero to 1,257,690 shares of common stock.

Total unrecognized compensation cost related to these grants of $ 6.1 million as of June 30, 2022 is expected to be recognized over a period of 2.5 years.

Total unrecognized compensation cost related to these grants of $ 6.6 million as of September 30, 2022 is expected to be recognized over a period of 2.4 years.

Revenue Recognition

2 unchanged sentences

Payment is reasonably assured upon delivery of production.

All sales are subject to contracts that have commercial substance, contain

specific pricing terms, and define the enforceable rights and obligations of both parties.

All sales are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties.

These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties.

7 unchanged sentences

The amount of oil or natural gas sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties.

The Company did not have any significant imbalance positions at June 30, 2022.

The Company did not have any significant imbalance positions at September 30, 2022.

Sales of oil and natural gas generally occur at or near the wellhead.

2 unchanged sentences

The Company recognizes gas services revenues at the time the performance obligations have been fulfilled.

The Company recognized accounts receivable of $ 436.4 million as of June 30, 2022 from customers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

The Company recognized accounts receivable for oil and gas sales of $ 549.0 million as of September 30, 2022 from purchasers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

Credit Losses

4 unchanged sentences

The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible.

Accordingly, no allowance for doubtful accounts has been recorded for the six months ended June 30, 2022 and 2021.

Accordingly, no allowance for doubtful accounts has been recorded for the nine months ended September 30, 2022 and 2021.

Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates.

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

6 unchanged sentences

( 0.2 ) ( 0.9 ) ( 0.1 ) ( 0.3 )

Change in Louisiana tax law — ( 8.8 ) — 9.0

Change in state tax law — 43.1 — 8.3

( 0.1 ) — — —

Effective tax rate 22.4 % ( 9.1 ) % 22.5 % 11.0 %

13 unchanged sentences

These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions.

In 2021, the Company had natural gas swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement.

In 2021, the Company had natural gas price swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement.

The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy:

Six Months Ended

June 30, 2021

Nine Months Ended

September 30, 2021

(In thousands)

5 unchanged sentences

Fair Values – Reported

The following presents the carrying amounts and the fair values of the Company's financial instruments as of June 30, 2022 and December 31, 2021:

June 30, 2022 December 31, 2021

The following presents the carrying amounts and the fair values of the Company's financial instruments as of September 30, 2022 and December 31, 2021:

September 30, 2022 December 31, 2021

Carrying Value Fair Value Carrying Value Fair Value

15 unchanged sentences

(2) The carrying value of our floating rate debt outstanding approximates fair value.

(3) The fair value of the Company's fixed rate debt was based on quoted prices as of June 30, 2022 and December 31, 2021, respectively, a Level 1 measurement.

(3) The fair value of the Company's fixed rate debt was based on quoted prices as of September 30, 2022 and December 31, 2021, respectively, a Level 1 measurement.

Earnings Per Share

Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method.

At June 30, 2022 and December 31, 2021, 930,006 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

At September 30, 2022 and December 31, 2021, 956,649 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

Weighted average shares of unvested restricted stock outstanding were as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

2 unchanged sentences

Weighted average grant date fair value per unit $ 14.52 $ 8.11 $ 14.52 $ 8.11

Basic and diluted income (loss) per share for the three months and six months ended June 30, 2022 and 2021 were determined as follows:

Three Months Ended June 30,

Basic and diluted income (loss) per share for the three months and nine months ended September 30, 2022 and 2021 were determined as follows:

Three Months Ended September 30,

Income Shares Per Share Loss Shares Per Share

8 unchanged sentences

Diluted income (loss) attributable to common stock $ 355,596 277,715 $ 1.28 $ ( 292,717 ) 231,747 $ ( 1.26 )

Six Months Ended June 30,

Nine Months Ended September 30,

Income Shares Per Share Loss Shares Per Share

12 unchanged sentences

Supplementary Information with Respect to the Consolidated Statements of Cash Flows

Cash payments made for interest and income taxes and other non-cash investing activities for the six months ended June 30, 2022 and 2021, respectively, were as follows:

Six Months Ended

Cash payments made for interest and income taxes and other non-cash investing activities for the nine months ended September 30, 2022 and 2021, respectively, were as follows:

Nine Months Ended

September 30,

(In thousands)

3 unchanged sentences

Non-cash investing activities include:

Increase in accrued capital expenditures $ 13,813 $ 785

Increase (decrease) in accrued capital expenditures $ 16,202 $ ( 3,021 )

Liabilities assumed in exchange for right-of-use lease assets $ 109,546 $ 5,562

(2) ACQUISITION

In April 2022, the Company acquired a 145 mile high pressure pipeline and natural gas treating plant from an unaffiliated third party and the undeveloped deep rights on approximately 60,000 net undeveloped acres in East Texas for $ 35.6 million including transaction costs.

$ 16.8 million of the purchase price was allocated to the pipeline and plant and recorded to other property and equipment.

$ 18.8 million of the purchase price was allocated and recorded to unproved oil and gas properties.

(2) LONG-TERM DEBT

At June 30, 2022, long-term debt was comprised of the following:

At September 30, 2022, long-term debt was comprised of the following:

(In thousands)

6 unchanged sentences

Debt issuance costs, net of amortization ( 33,340 )

As of June 30, 2022, the Company had $ 350.0 million outstanding under a bank credit facility with a $ 1.4 billion committed borrowing base which is re-determined on a semi-annual basis and upon the occurrence of certain other events and matures on July 16, 2024.

The borrowing base was redetermined on April 15, 2022.

As of September 30, 2022, the Company had $ 100.0 million outstanding under a bank credit facility with a $ 1.4 billion committed borrowing base which is re-determined on a semi-annual basis and upon the occurrence of certain other events and matures on July 16, 2024.

The borrowing base was last redetermined on April 15, 2022.

Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its subsidiaries and bear interest at the Company's option, at either LIBOR plus 2.25 % to 3.25 % or a base rate plus 1.25 % to 2.25 %, in each case depending on the utilization of the borrowing base.

2 unchanged sentences

The only financial covenants are the maintenance of a leverage ratio of less than 4.0 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0.

The Company was in compliance with the covenants as of June 30, 2022.

The Company was in compliance with the covenants as of September 30, 2022.

In May 2022, the Company completed the early redemption of all of its outstanding 7.5 % senior notes due in 2025 for an aggregate amount of $ 258.1 million, which included principal of $ 244.4 million, premiums paid over face value of $ 4.5 million and accrued interest of $ 9.2 million.

2 unchanged sentences

The Company recognized a gain of $ 1.0 million on early retirement of debt relating to the repurchase.

During the six months ended June 30, 2021, the Company repurchased $ 375.0 million principal amount of its 7.5 % senior notes due in 2025 and $ 1,650.0 million principal amount of its 9.75 % senior notes due 2026 with proceeds from the issuance of $ 1,250.0 million principal amount of its 6.75 % senior notes due in 2029 and $ 965.0 million principal amount of its 5.875 % senior notes due in 2030.

The Company recognized a loss of $ 114.1 million and $ 352.6 million on early retirement of debt for the three months and six months ended June 30, 2021, respectively.

During the nine months ended September 30, 2021, the Company repurchased $ 375.0 million principal amount of its 7.5 % senior notes due in 2025 and $ 1,650.0 million principal amount of its 9.75 % senior notes due 2026 with proceeds from the issuance of $ 1,250.0 million principal amount of its 6.75 % senior notes due in 2029 and $ 965.0 million principal amount of its 5.875 % senior notes due in 2030.

The Company recognized a loss of $ 352.6 million on early retirement of debt for the nine months ended September 30, 2021.

(3) CONVERTIBLE PREFERRED STOCK

5 unchanged sentences

(4) COMMITMENTS AND CONTINGENCIES

In July 2022, the Company entered into a hydraulic fracturing services agreement for exclusive use of a natural gas powered hydraulic fracturing fleet.

The term of the agreement is three years and the minimum commitment under this agreement is $ 19.2 million per year.

The Company expects to take delivery of the fleet in 2023.

From time to time, the Company is involved in certain litigation that arises in the normal course of its operations.

The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

The Company does not believe the resolution of these matters will have a material effect on the Company's financial position, results of operations or cash flows and no material amounts are accrued relative to these matters at June 30, 2022 or 2021.

(5) RELATED PARTY TRANSACTIONS

2 unchanged sentences

Comstock also provides natural gas marketing services to the partnerships, including evaluating potential markets and providing hedging services, in return for a fee equal to $ 0.02 per Mcf for natural gas marketed.

The Company received $ 0.4 million for the three months ended June 30, 2022 and 2021, respectively, and $ 0.6 million and $ 0.8 million for the six months ended June 30, 2022 and 2021, respectively, for drilling, operating and marketing services provided to the partnerships.

The Company received $ 152 thousand and $ 353 thousand for the three months ended September 30, 2022 and 2021, respectively, and $ 0.7 million and $ 1.2 million for the nine months ended September 30, 2022 and 2021, respectively, for drilling, operating and marketing services provided to the partnerships.

The fees received for the services are reflected as a reduction of general and administrative expenses in the accompanying consolidated statements of operations.

In connection with the operation of the wells, the Company had a $ 8.2 million and a $ 20.8 million receivable from the partnerships at June 30, 2022 and December 31, 2021, respectively.

In connection with the operation of the wells, the Company had a $ 20.8 million receivable from the partnerships at September 30, 2022 and December 31, 2021, respectively.

(6) SUBSEQUENT EVENT

On October 31, 2022, the board of directors of the Company authorized a dividend of $ 0.125 per share to be paid to common stockholders of record on December 1, 2022.

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 1. Financial Statements