What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-05-05 compared with 2022-11-03 · 70 added, 112 removed, 113 unchanged (62% of the section changed)

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The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources.

This discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, as well as our audited consolidated financial statements and the accompanying notes included in the 2021 Form 10-K and 10-K/A.

Our discussion and analysis includes the following subjects:

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• Critical Accounting Policies and Estimates.

The financial information with respect to the three and nine-month periods ended September 30, 2022 and 2021, discussed below, is unaudited.

The financial information with respect to the three-month periods ended March 31, 2023 and 2022, discussed below, is unaudited.

In the opinion of management, this information contains all adjustments, which consist only of normal recurring adjustments unless otherwise disclosed, necessary to state fairly the accompanying unaudited condensed consolidated financial statements.

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Mid-Continent region (“Mid-Con”).

Prior to February 5, 2021, we held assets in the North Park Basin ("NPB" or “North Park") of Colorado, which have been sold in their entirety.

The chart below shows production by product for the three and nine-month periods ended September 30, 2022 and 2021:

(1) Excludes 67 MBoe of oil production from North Park Basin, which was sold on February 5, 2021.

Total MBoe production for the three-month period ended September 30, 2022 was comprised of approximately 15.8% oil, 53.7% natural gas and 30.5% NGL compared to 12.7% oil, 55.2% natural gas and 32.1% NGL in 2021.

Total MBoe production for the nine-month period ended September 30, 2022 was comprised of approximately 14.0% oil, 53.8% natural gas and 32.2% NGL compared to 14.4% oil, 52.5% natural gas and 33.1% NGL in 2021.

The chart below shows production by product for the three-month periods ended March 31, 2023 and 2022:

Total MBoe production for the three-month period ended March 31, 2023 was comprised of approximately 17.4% oil, 54.6% natural gas and 28.0% NGL compared to 13.3% oil, 53.9% natural gas and 32.8% NGL in 2022.

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Recent Events

• Consistent with our 2022 capital development program, we drilled three wells and completed three wells during the quarter ended September 30, 2022.

• On October 5, 2022 the Company’s Board of Directors appointed Ms.

Nancy Dunlap to serve as a member of the Board.

Dunlap also joined the Audit Committee.

We will continue to focus on growing the cash value and generation capability of our asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects we believe provide high rates of returns in the current commodity price environment.

These projects include (1) a continuation of our well reactivation program, (2) artificial lift conversions to more efficient and cost effective systems and (3) focused drilling in high-graded areas.

• Consistent with our 2023 capital development program announced on March 15, 2023, we drilled two wells and completed two wells during the quarter ended March 31, 2023.

We will continue to focus on growing the cash value allocation capability of our asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects we believe provide high rates of returns in the current commodity price environment.

These projects include (1) a continuation of our well reactivation program, (2) artificial lift conversions to more efficient and cost effective systems, (3) focused drilling in high-graded areas and (4) limited opportunistic leasing in proven areas around or adjacent to our area of operations that could further bolster future development.

Given near term commodity price dynamics, and that our Midcon assets are 99% held by production, which preserves the tenor of our development option, we concluded our drilling activity this quarter, with remaining completions to occur in the second quarter.

We will continue to monitor forward-looking commodity prices, results, costs and other factors that could influence returns on investments, which will continue to shape our disciplined development decisions in 2023 and beyond.

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Three-month periods ended

September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021

NYMEX Oil (per Bbl) $ 93.06 $ 108.83 $ 95.02 $ 77.34 $ 70.59

NYMEX Natural gas (per Mcf) $ 8.32 $ 7.75 $ 4.84 $ 4.93 $ 4.48

Nine-month periods ended

September 30, 2022 September 30, 2021

March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022

NYMEX Oil (per Bbl) $ 75.93 $ 82.79 $ 93.06 $ 108.83 $ 95.02

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Consolidated revenues for the three and nine-month periods ended September 30, 2022 and 2021 are presented in the table below (in thousands):

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

2022 2021 Change % Change 2022 2021 Change % Change

Consolidated revenues for the three-month periods ended March 31, 2023 and 2022 are presented in the table below (in thousands):

Three Months Ended March 31,

2023 2022 Change

Oil $ 19,410 $ 19,781 $ (371)

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Total revenues $ 43,147 $ 57,487 $ (14,340)

(1) Mid-Continent represented $111.2 million, or 97.2% of total consolidated revenues for the nine-months ended September 30, 2021.

NPB represented $3.2 million, or 2.8% of total consolidated revenues for the nine-months ended September 30, 2021.

Oil, Natural Gas and NGL Production and Pricing

Our production and pricing information for the three and nine-month periods ended September 30, 2022 and 2021 is shown in the table below:

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

2022 2021 Change % Change 2022 2021 Change % Change

Our production and pricing information for the three-month periods ended March 31, 2023 and 2022 is shown in the table below:

Three Months Ended March 31,

2023 2022 Change

Production data

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The table below presents production by area of operation for the three and nine-month periods ended September 30, 2022 and 2021:

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

2022 2021 2022 2021

Production (MBoe) % of Total Production (MBoe) % of Total Production (MBoe) % of Total Production (MBoe) % of Total

Mid-Continent 1,638 100.0 % 1,722 100.0 % 4,864 100.0 % 5,029 98.7 %

North Park Basin — — % — — % — — % 67 1.3 %

Total 1,638 100.0 % 1,722 100.0 % 4,864 100.0 % 5,096 100.0 %

Variances in oil, natural gas and NGL revenues attributable to changes in the average prices received for our production and total production volumes sold for the three and nine-month periods ended September 30, 2022 are shown in the table below (in thousands):

Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022

Variances in oil, natural gas and NGL revenues attributable to changes in the average prices received for our production and total production volumes sold for the three-month period ended March 31, 2023 are shown in the table below (in thousands):

Three Months Ended March 31, 2023

2022 oil, natural gas and NGL revenues $ 57,487

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2023 oil, natural gas and NGL revenues $ 43,147

Revenue increased due to favorable realized commodity prices offset by a slight decrease in production primarily as a result of the sale of NPB, in addition to natural production declines partially offset by our well reactivation program and production from new wells.

See "Item 1A—Risk Factors" included in our 2021 Form 10-K and 10-K/A for additional discussion of the potential impact these events may have on our future revenues.

Revenue decreased due to unfavorable realized commodity prices and a decrease in production.

See "Item 1A—Risk Factors" included in our 2022 Form 10-K for additional discussion of the potential impact these events may have on our future revenues.

Operating Expenses

Operating expenses for the three and nine-month periods ended September 30, 2022 and 2021 consisted of the following (in thousands):

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

2022 2021 Change % Change 2022 2021 Change % Change

Operating expenses for the three-month periods ended March 31, 2023 and 2022 consisted of the following (in thousands):

Three Months Ended March 31,

2023 2022 Change

Lease operating expenses $ 11,694 $ 10,862 $ 832

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Production, ad valorem, and other taxes (% of oil, natural gas, and NGL revenue) 8.7% 7.1% 1.6%

The increase in lease operating expenses was primarily due to inflationary pressures, a higher number of producing wells and higher workover expense due to our well reactivation program.

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Production, ad valorem, and other taxes increased primarily due to higher commodity prices and related revenues as discussed above for the three-and nine-months ended September 30, 2022.

Further, it increased as a percentage of oil, natural gas, and NGL revenue for the three and nine-months ended September 30, 2022 as compared to the same periods in 2021.

The increase in production, ad valorem, and other taxes as a percentage of commodity revenues stems primarily from an increase in ad valorem taxes for the three-months ended September 30, 2022.

For the three-months ended September 30, 2021, ad valorem taxes were lower in part due to a change in estimate related to NPB.

For the nine-months ended September 30, 2022, the increase in percentage of commodity revenues related primarily to an increase in production taxes.

The increase in depreciation and depletion for oil and natural gas properties was primarily the result of increased capital expenditures which increased our depletion rate.

The increase in lease operating expenses was primarily due to inflationary pressures and higher production costs associated with more producing wells driven by our well reactivation and drilling programs.

Production, ad valorem, and other taxes decreased primarily due to lower commodity prices and related revenues.

Production, ad valorem, and other taxes increased as a percentage of oil, natural gas, and NGL revenue due to an increase in ad valorem taxes as a result of increased valuation assessments on our oil and gas properties.

The increase in depreciation and depletion for oil and natural gas properties was primarily the result of capital expenditures for the second quarter of 2022 through the first quarter of 2023 and a decrease in proved reserves at March 31, 2023, primarily as a result of lower SEC prices, which increased our depletion rate.

A ceiling limitation calculation is performed at the end of each quarter.

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Calculation of the full cost ceiling test is based on, among other factors, trailing twelve-month first-day-of-the-month index prices (“SEC prices”) as adjusted for price differentials and other contractual arrangements.

The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at September 30, 2022 were $91.71 per barrel of oil and $6.13 per Mcf of natural gas, before price differential adjustments.

The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at March 31, 2023 were $90.97 per barrel of oil and $5.95 per MMBtu of natural gas, before price differential adjustments.

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The ceiling limitation was not exceeded;

therefore, no full cost ceiling limitation impairments were recorded during the three and nine-month periods ended September 30, 2022 or 2021.

During certain periods within the past five years, the SEC prices used in the full cost ceiling test have been lower than the SEC prices used for the September 30, 2022 full cost ceiling test and resulted in material ceiling limitation impairments.

therefore, no full cost ceiling limitation impairments were recorded during the three-month periods ended March 31, 2023 or 2022.

During certain periods within the past five years, the SEC prices used in the full cost ceiling test have been lower than the SEC prices used for the March 31, 2023 full cost ceiling test and resulted in material ceiling limitation impairments.

Full cost pool ceiling limitation impairments have no impact to our cash flow or liquidity.

Based on the SEC prices over the trailing ten months ended October 1, 2022, as well as two months of NYMEX strip pricing for November and December of 2022 as of October 11, 2022, we estimate the SEC prices utilized in the December 31, 2022 full cost ceiling test may be $94.08 per barrel of oil and $6.49 per Mcf of natural gas (the "estimated year-end prices").

Applying these estimated year-end prices, and holding all other inputs constant to those used in the calculation of our September 30, 2022 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the fourth quarter of 2022.

Based on the SEC prices over the trailing ten months ended April 30, 2023, as well as two months of NYMEX strip pricing for May and June of 2023 as of April 25, 2023, we estimate the SEC prices utilized in the June 30, 2023 full cost ceiling test may be $83.50 per barrel of oil and $4.79 per MMBtu of natural gas (the "estimated second quarter prices").

Applying these estimated second quarter prices, and holding all other inputs constant to those used in the calculation of our March 31, 2023 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the second quarter of 2023.

Any actual full cost ceiling limitation impairment recognized in future quarters may fluctuate significantly from projected amounts based on the outcome of numerous other factors such as declines in the actual trailing twelve-month SEC prices, lower NGL pricing, changes in estimated future development costs and operating expenses, and other adjustments to our levels of proved reserves.

Other Operating Expenses (Income)

Other operating expenses (income) for the three and nine-month periods ended September 30, 2022 and 2021 consisted of the following (in thousands):

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

2022 2021 Change % Change 2022 2021 Change % Change

Other operating expenses (income) for the three-month periods ended March 31, 2023 and 2022 consisted of the following (in thousands):

Three Months Ended March 31,

2023 2022 Change

General and administrative $ 2,909 $ 2,530 $ 379

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(Gain) loss on derivative contracts (1,447) 1,064 (2,511)

(Gain) loss on sale of assets — 761 (761) (100)% — (18,952) 18,952 (100)%

Other operating income (94) (64) (30)

Total other operating expenses (income) $(1,825) $5,221 $(7,046) (135)% $4,467 $(7,634) $12,101 (159)%

General and administrative expenses were consistent between the three and nine-month periods ended September 30, 2022 and 2021.

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Restructuring expenses for the three-month period ended September 30, 2022 represent fees and costs associated with the 2016 bankruptcy, while restructuring expenses for the nine-month period ended September 30, 2022 represent fees and costs associated with the 2016 bankruptcy and our exit from NPB in Colorado.

The lower restructuring expenses for the three and nine-months ended September 30, 2021 relates primarily to accrued expenses for the 2016 Bankruptcy that were removed as a result of the notice of completion of final distribution being filed in the United States Bankruptcy Court for the Southern District of Texas on July 26, 2021.

The following table summarizes derivative activity for the three and nine-month periods ended September 30, 2022 and 2021 (in thousands):

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

2022 2021 2022 2021

Total other operating expenses $ 1,426 $ 3,739 $ (2,313)

General and administrative expenses increased primarily due to an increase in professional service fees for the three-month periods ended March 31, 2023 as compared to same period in 2022.

The following table summarizes derivative activity for the three-month periods ended March 31, 2023 and 2022 (in thousands):

Three Months Ended March 31,

(Gain) loss on derivative contracts $ (1,447) $ 1,064

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As applicable, our derivative contracts were not designated as accounting hedges and, as a result, changes in their fair values were recorded each quarter as a component of operating expenses.

Management views the settlement of commodity derivative contracts at contractual maturity as adjustments to the price received for oil, natural gas and NGL production to determine “effective prices.” In general, cash is received on settlement of contracts due to lower oil and natural gas prices at the time of settlement, compared to the contract price for our commodity derivative contracts;

Internally, management has historically viewed the settlement of commodity derivative contracts at contractual maturity as adjustments to the price received for oil, natural gas and NGL production to determine “effective prices.” In general, cash is received on settlement of contracts due to lower oil and natural gas prices at the time of settlement, compared to the contract price for our commodity derivative contracts;

and, cash is paid on settlement of contracts due to higher oil, natural gas and NGL prices at the time of settlement, compared to the contract price for our commodity derivative contracts.

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Quantitative and Qualitative Disclosures about Market Risk” included in Part I of this Quarterly Report.

The loss on sale of assets for the three-months ended September 30, 2021 relates to a reduction to the NPB sales price as a result of post-closing adjustments during the third quarter of 2021.

The decreases in gain on sale of assets relate to the gain from sale of NPB in February 2021.

See “Note 5 — Acquisitions and Divestitures” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional information regarding the sale of NPB.

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Other Income (Expense)

Our other income (expense) for the three and nine-month periods ended September 30, 2022 and 2021 are presented in the table below (in thousands):

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

2022 2021 2022 2021

Our other income (expense) for the three-month periods ended March 31, 2023 and 2022 are presented in the table below (in thousands):

Three Months Ended March 31,

Other income (expense)

Interest expense, net

Interest income (expense), net

$ 2,499 $ (152)

Other income, net 55 76

Total other income $ 135 $ 2,140 $ 44 $ 2,324

Interest expense incurred during the three-month period ended September 30, 2022 is primarily comprised of interest related to vehicle leases and letters of credit.

Interest expense incurred during the nine-month period ended September 30, 2022 is primarily comprised of interest paid on royalty obligations of $0.1 million, interest on vehicle leases and letters of credit.

Interest expense incurred during the three and nine-month periods ended September 30, 2021 is primarily comprised of interest paid on the prior 2020 Credit Facility as discussed in our 2021 10-K and 10-K/A.

The Other income, net line item for the three and nine-months ended September 30, 2022 is primarily comprised of gains on the sale of fleet vehicles and the removal of previously accrued liabilities due to a change in estimate.

The Other income, net line item for the three and nine-month periods ended September 30, 2021 includes the removal of an allowance for doubtful accounts recorded for the year ended December 31, 2020 as a result of management determining the receivable from a government agency is collectible.

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Total other income (expense) $ 2,554 $ (76)

Interest income incurred during the three-month period ended March 31, 2023 is primarily comprised of interest income received from cash deposits.

Interest expense incurred during the three-month period ended March 31, 2022 is primarily comprised of interest paid on royalty obligations of $0.1 million.

Liquidity and Capital Resources

As of September 30, 2022, our cash and cash equivalents, including restricted cash was $240.6 million.

As of March 31, 2023, our cash and cash equivalents, including restricted cash was $287.6 million.

For the next twelve months, we expect to have ample liquidity with cash on hand and cash from operations.

We had no outstanding term or revolving debt obligations as of September 30, 2022.

We had no outstanding term or revolving debt obligations as of March 31, 2023.

Working Capital and Sources and Uses of Cash

Our principal sources of liquidity for the next year include cash flows from operations and cash on hand.

Our working capital increased to $206.6 million at September 30, 2022, compared to $97.7 million at December 31, 2021.

The positive impact on working capital resulted primarily from an increase in cash and cash equivalents at September 30, 2022 as a result of cash flows from operations, partially offset by increased accrued liabilities due to our increased capital expenditure activity in 2022.

Our working capital increased to $257.7 million at March 31, 2023, compared to $241.6 million at December 31, 2022.

The positive impact on working capital resulted primarily from an increase in cash and cash equivalents at March 31, 2023 as a result of cash flows from operations.

Our cash flows from operations are substantially dependent on current and future prices for oil, natural gas and NGL, which historically have been, and may continue to be, volatile.

Cash flows from operations are also affected by timing of cash receipts and disbursements and changes in other working capital assets and liabilities.

Our cash flows for the nine-month periods ended September 30, 2022 and 2021 are presented in the following table and discussed below (in thousands):

Nine Months Ended September 30,

Our cash flows for the three-month periods ended March 31, 2023 and 2022 are presented in the following table and discussed below (in thousands):

Three Months Ended March 31,

Cash flows provided by operating activities $ 39,847 $ 32,193

Cash flows provided by (used in) investing activities (32,161) 25,867

Cash flows used in investing activities (9,408) (5,619)

Cash flows used in financing activities (343) (320)

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Cash Flows from Operating Activities

The $68.3 million increase in cash flows from operations for the nine-month period ended September 30, 2022 compared to the same period in 2021, is primarily due to higher revenues as a result of improved commodity prices as discussed above, offset by a slight decrease in production.

The changes in operating assets and liabilities do not include changes in accounts payable or accrued expenses attributable to capital expenditures noted in the capital expenditure table below.

Cash Flows from Investing Activities

Our cash flows used in investing activities during the nine-month period ended September 30, 2022 reflects capital expenditures of $31.1 million primarily related to capital expenditures made for drilling, capital workovers, well reactivations, inventory purchases and an acreage acquisition for $1.4 million.

Cash outflows were partially offset by $0.4 million of proceeds from the sale of assets.

During the nine-month period ended September 30, 2021, cash flows from investing activities primarily reflects $38.1 million of net cash proceeds from the sale of assets offset by capital expenditures of $8.6 million and acquisition of overriding royalty interests for $3.6 million.

See "Note 5 — Acquisitions and Di vestitures" to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report for additional information.

The $7.7 million increase in cash flows from operations for the three-month period ended March 31, 2023 compared to the same period in 2022 is primarily due to changes in operating assets and liabilities, offset by a decrease in revenues from lower commodity prices and production.

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Capital expenditures for the nine-month periods ended September 30, 2022 and 2021 are summarized below (in thousands):

Nine Months Ended September 30,

Cash Flows from Investing Activities

Our cash flows used in investing activities during the three-month period ended March 31, 2023 reflects capital expenditures of $9.4 million primarily related to capital expenditures made for drilling, capital workovers, and well reactivations.

Our cash flows used in investing activities during the three-month period ended March 31, 2022 reflects capital expenditures of $5.6 million primarily related to purchases of inventory in preparation of the drilling program and workovers related to the well reactivation program.

Capital expenditures for the three-month periods ended March 31, 2023 and 2022 are summarized below (in thousands):

Three Months Ended March 31,

Capital Expenditures

Drilling, completion and capital workovers (1) $ 37,656 $ 6,374

Drilling and completion $ 10,243 $ 3,343

Capital workovers 1,836 2,348

Leasehold and geophysical 141 287

Capital expenditures, excluding acquisitions (on an accrual basis) 38,253 6,841

Acquisitions 1,431 3,604

Capital expenditures, including acquisitions 39,684 10,445

Capital expenditures (on an accrual basis) 12,220 5,978

Changes in accounts payable and accrued expenses (2,753) (349)

Inventory material transfers to oil and natural gas properties (75) —

Total cash paid for capital expenditures $ 9,392 $ 5,629

(1) We capitalized $4.7 million in inventory purchases, net of inventory utilized during 2022 on drilling, completion, capital workover and well reactivation activities.

Cash Flows from Financing Activities

Cash used in financing activities for the nine-month period ended September 30, 2022 consisted primarily of $1.2 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise, and finance lease payments of $0.3 million offset by immaterial proceeds from the exercise of stock options.

Cash used in financing activities for the nine-month period ended September 30, 2021 consisted primarily of repayments of borrowings under the prior 2020 Credit Facility of $20.0 million, finance lease payments of $0.5 million and cash paid for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise of $0.9 million.

Cash used in financing activities for the three-month period ended March 31, 2023 consisted primarily of $0.2 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise and finance lease payments of $0.1 million.

Cash used in financing activities for the three-month period ended March 31, 2022 consisted primarily of cash paid for tax obligations on employee vested stock awards of $0.2 million and finance lease payments of $0.1 million offset by immaterial proceeds from the exercise of stock options.

Net exercises of stock awards allows the holder of a stock award to tender back to us a number of shares at fair value upon the vesting of such stock award, that equals the employee payroll tax obligation due.

We then remit a cash payment to the relevant taxing authority on behalf of the employee for their payroll tax obligations resulting from the vesting of their stock award.

Credit Facility

On September 2, 2021, we repaid our $20.0 million term loan in full and terminated all commitments and obligations under the 2020 Credit Facility, between us, as Borrower, IEP Energy Holding LLC, as Lender, and Icahn Agency Services LLC, as Administrative Agent.

Our payment to the Lender under the Credit Agreement satisfied all of our term debt and revolving debt obligations.

We did not incur any early termination penalties as a result of the repayment of indebtedness or termination of the Credit Agreement.

See Item 7 — “Liquidity and Capital Resources” in the Company’s 2021 Form 10-K and 10-K/A.

Contractual Obligations and Off-Balance Sheet Arrangements

At September 30, 2022, our contractual obligations included asset retirement obligations, leases and other individually insignificant obligations.

At March 31, 2023, our contractual obligations included asset retirement obligations, leases and other individually insignificant obligations.

Additionally, we have certain financial instruments representing potential commitments that were incurred in the normal course of business to support our operations, including surety bonds.

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Therefore, no additional liability is reflected for the surety bonds or other instruments.

There were no other significant changes in total contractual obligations and off-balance sheet arrangements from those reported in the 2021 Form 10-K and 10-K/A.

There were no other significant changes in total contractual obligations and off-balance sheet arrangements from those reported in the 2022 Form 10-K.

Critical Accounting Policies and Estimates

For a description of our critical accounting policies and estimates, refer to Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2021 Form 10-K and 10-K/A .

Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2022 Form 10-K .

For a discussion of recent accounting pronouncements, newly adopted and recent accounting pronouncements not yet adopted, see “Note 1—Basis of Presentation” to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report.

We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first nine months of 2022.

We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first three months of 2023.

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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