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• Critical Accounting Policies and Estimates.
−Removed: The financial information with respect to the three and nine months ended September 30, 2025 and 2024, discussed below, is unaudited.
+Added: The financial information with respect to the three months ended March 31, 2026 and 2025, 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.
2 unchanged sentences
Mid-Continent region (“Mid-Con”).
−Removed: The charts below show production by product and percent revenues for the three and nine months ended September 30, 2025 and 2024:
−Removed: Total MBoe production for the three months ended September 30, 2025 was comprised of approximately 19.7% oil, 47.7% natural gas and 32.6% NGL compared to 14.8% oil, 50.4% natural gas and 34.8% NGL in the third quarter of 2024.
−Removed: Total MBoe production for the nine months ended September 30, 2025 was comprised of approximately 17.8% oil, 48.6% natural gas and 33.6% NGL compared to 14.5% oil, 54.2% natural gas and 31.3% NGL in the first nine months of 2024.
+Added: The charts below show production by product and percent revenues for the three months ended March 31, 2026 and 2025:
+Added: Total MBoe production for the three months ended March 31, 2026 was comprised of approximately 21.1% oil, 49.7% natural gas and 29.2% NGL compared to 16.8% oil, 48.9% natural gas and 34.3% NGL in the first quarter of 2025.
We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects.
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Three-month periods ended
−Removed: September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024
+Added: March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
NYMEX Oil (per Bbl) $ 72.74 $ 59.62 $ 65.78 $ 64.57 $ 71.78
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Consolidated revenues are presented in the table below (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change 2025 2024 Change
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change
Oil $ 25,071 $ 18,880 $ 6,191
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Our production and pricing information is shown in the table below:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change 2025 2024 Change
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change
Production data
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Variances in oil, natural gas and NGL revenues attributable to changes in the average prices received for our production and total production volumes sold are shown in the table below (in thousands):
−Removed: Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025
−Removed: 2024 oil, natural gas and NGL revenues $ 30,057 $ 86,317
+Added: Three Months Ended March 31, 2026
+Added: Q1 2025 oil, natural gas and NGL revenues $ 42,604
Change due to production volumes 5,526
Change due to average prices $ 1,647
−Removed: 2025 oil, natural gas and NGL revenues $ 39,822 $ 116,957
+Added: Q1 2026 oil, natural gas and NGL revenues $ 49,777
Operating Expenses
Operating expenses consisted of the following (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change 2025 2024 Change
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change
Lease operating expenses $ 10,787 $ 10,917 $ (130)
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Production, ad valorem, and other taxes (% of oil, natural gas and NGL revenue) 6.1 % 7.3 % (1.2) %
−Removed: Lease operating expenses for the three months ended September 30, 2025 increased in total and per Boe versus the same period in 2024 primarily due to an increase in labor, utility and other costs.
−Removed: Lease operating expenses for the nine months ended September 30, 2025 decreased in total and per Boe versus the same period in 2024 primarily due to a $2.1 million one-time non-cash adjustment of an operating accrual dating back to the Company’s emergence from bankruptcy (see “Note 1—Basis of Presentation” to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report for further information) that was recorded in the second quarter of 2025.
−Removed: The decrease was partially offset by an increase in utility and water hauling costs.
−Removed: Production, ad valorem, and other taxes for the three and nine months ended September 30, 2025 increased in total primarily due to higher average commodity prices, sales volumes, and related revenues.
−Removed: The increase in sales volumes was primarily the result of our one rig development program in the Cherokee Play of the Mid-Con.
−Removed: Production, ad valorem, and other taxes per Boe increased for the three and nine months ended September 30, 2025 versus the same period in 2024 primarily due to higher average commodity prices.
−Removed: The increase in depreciation and depletion for oil and natural gas properties for the three months ended September 30, 2025 versus the same period in 2024 was primarily the result of an increase in sales volumes.
−Removed: The increase in depreciation and depletion for oil and natural gas properties for the nine months ended September 30, 2025 versus the same period in 2024 was primarily the result of our acquisition in the Cherokee Play of the Mid-Con during the third quarter of 2024, which increased the book value of our proved properties and subsequently our depletion rate.
+Added: Lease operating expenses for the three months ended March 31, 2026 were consistent with the three months ended March 31, 2025.
+Added: The decrease in lease operating expenses per Boe was primarily driven by continued efficient operations and an increase in production volumes due to our ongoing drilling program in the Cherokee Play.
+Added: Production, ad valorem, and other taxes for the three months ended March 31, 2026 were consistent with the three months ended March 31, 2025.
+Added: The decrease in production, ad valorem, and other taxes per Boe was primarily due to a decrease in ad valorem taxes.
+Added: The increase in depreciation and depletion for oil and natural gas properties for the three months ended March 31, 2026 versus the same period in 2025 was primarily the result of an increase in sales volumes and 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.
−Removed: The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at September 30, 2025 were $67.45 per barrel of oil and $3.10 per MMBtu of natural gas, before price differential adjustments.
+Added: The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at March 31, 2026 were $63.31 per barrel of oil and $3.72 per MMBtu of natural gas, before price differential adjustments.
The ceiling limitation was not exceeded;
−Removed: therefore, no full cost ceiling limitation impairments were recorded during the three or nine months ended September 30, 2025 or 2024.
−Removed: 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, 2025 full cost ceiling test and resulted in material ceiling limitation impairments.
+Added: therefore, no full cost ceiling limitation impairments were recorded during the three months ended March 31, 2026 or 2025.
Full cost pool ceiling limitation impairments have no impact to our cash flow or liquidity.
−Removed: Based on the SEC prices over the trailing ten months ended October 31, 2025, as well as two months of NYMEX strip pricing for November and December of 2025 as of October 31, 2025, we estimate the SEC prices utilized in the December 31, 2025 full cost ceiling test may be $65.45 per barrel of oil and $3.33 per MMBtu of natural gas (the "estimated fourth quarter prices").
−Removed: Applying these estimated fourth quarter prices, and holding all other inputs constant to those used in the calculation of our September 30, 2025 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the fourth quarter of 2025.
+Added: Based on the SEC prices over the trailing ten months ended April 30, 2026, as well as two months of NYMEX strip pricing for May and June of 2026 as of April 30, 2026, we estimate the SEC prices utilized in the July 1, 2026 full cost ceiling test may be $72.15 per barrel of oil and $3.59 per MMBtu of natural gas (the "estimated second quarter prices").
+Added: Applying these estimated second quarter prices, and holding all other inputs constant to those used in the calculation of our March 31, 2026 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the second quarter of 2026.
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.
1 unchanged sentence
Other operating expenses consisted of the following (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change 2025 2024 Change
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change
General and administrative $ 2,988 $ 3,853 $ (865)
3 unchanged sentences
Total other operating expenses $ 6,670 $ 6,380 $ 290
−Removed: General and administrative expenses increased for the three and nine months ended September 30, 2025 versus the same periods in 2024 primarily as a result of an increase in personnel and other costs.
+Added: General and administrative expenses decreased for the three months ended March 31, 2026 versus the same periods in 2026 primarily as a result of a decrease in personnel and other costs.
The following table summarizes derivative activity (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended March 31,
(Gain) loss on derivative contracts $ 3,526 $ 2,487
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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.
−Removed: See further discussion of derivative contracts in “ I tem 3.
+Added: See further discussion of derivative contracts in “Item 3.
Quantitative and Qualitative Disclosures about Market Risk” included in Part I of this Quarterly Report.
1 unchanged sentence
Our other income (expense) are presented in the table below (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended March 31,
Other income (expense)
Interest income (expense), net $ 814 $ 860
−Removed: Other income (expense), net (3) — (6) 92
Total other income $ 814 $ 860
−Removed: Interest income, net during the three and nine month periods ended September 30, 2025 and 2024 is primarily comprised of interest income on cash deposits.
−Removed: The decrease in interest income, net is due to the Company’s lower cash balance primarily as a result of our acquisitions as well as capital expenditures, share repurchases, and quarterly dividend payments.
+Added: Interest income, net during the three month periods ended March 31, 2026 and 2025 is primarily comprised of interest income on cash deposits.
Liquidity and Capital Resources
−Removed: As of September 30, 2025, our cash and cash equivalents, including restricted cash, was $102.6 million.
+Added: As of March 31, 2026, our cash and cash equivalents, including restricted cash, was $104.1 million.
We expect our cash on hand and cash from operations to be adequate to meet our short and long-term liquidity needs.
−Removed: We had no outstanding term or revolving debt obligations as of September 30, 2025.
−Removed: On August 4, 2025, we filed a universal shelf registration statement on Form S-3 covering the offering of up to $500.0 million of securities, which was declared effective by the SEC on August 26, 2025.
+Added: We had no outstanding term or revolving debt obligations as of March 31, 2026.
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.
−Removed: Cash flows from operations was the primary driver in the increase in working capital to $73.8 million at September 30, 2025 compared to $67.1 million at December 31, 2024.
−Removed: The increase in working capital was partially offset by capital expenditures of $41.4 million, dividend payments to stockholders of $12.0 million, cash payments for leasehold acquisitions of $7.8 million, and repurchases of our common stock of $6.4 million.
+Added: Decreases in accounts payable and accrued expenses are the primary driver of the increase in working capital to $83.5 million at March 31, 2026 compared to $79.8 million at December 31, 2025.
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.
1 unchanged sentence
Our cash flows are presented in the following table and discussed below (in thousands):
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Cash flows provided by operating activities $ 19,759 $ 20,331
4 unchanged sentences
__________________
−Removed: (1) Includes $12.0 million and $68.2 million in dividend payments for the nine months ended September 30, 2025 and 2024, respectively.
+Added: (1) Includes $3.9 million and $4.1 million in dividend payments for the three months ended March 31, 2026 and 2025, respectively.
Cash Flows from Operating Activities
−Removed: The increase in cash flows from operations for the nine months ended September 30, 2025 compared to the same period in 2024 is primarily due to an increase in revenues from higher average commodity prices and higher sales volumes from our 2024 acquisition and 2025 development program in the Cherokee Play of the Mid-Con.
+Added: The decrease in cash flows from operations for the three months ended March 31, 2026 compared to the same period in 2025 is primarily due to working capital changes partially offset by an increase in revenues from higher average commodity prices and higher sales volumes from our development program in the Cherokee Play of the Mid-Con.
Cash Flows from Investing Activities
Capital expenditures and acquisitions of oil and gas properties are summarized below (in thousands):
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Capital Expenditures
2 unchanged sentences
Capital expenditures (on an accrual basis) 19,930 9,326
−Removed: Acquisitions 7,790 125,950
+Added: Acquisition of oil and natural gas assets 2,651 2,568
Capital expenditures, including acquisitions 22,581 11,894
3 unchanged sentences
Cash Flows from Financing Activities
−Removed: Cash used in financing activities for the nine months ended September 30, 2025 consisted of $12.0 million in cash dividends, $6.4 million in repurchases of common stock, finance lease payments of $0.6 million, and $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.
+Added: Cash used in financing activities for the three months ended March 31, 2026 consisted of $3.9 million in cash dividends, finance lease payments of $0.2 million, and $0.4 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise.
Since 2023, the Company has paid cash dividends totaling $173.6 million and 0.1 million in shares issued in lieu of cash dividends under the Dividend Reinvestment Program, which represents $3.50 per share in special dividends and $1.22 per share in quarterly dividends for a total of $4.72 per share in total dividends.
−Removed: Cash used in financing activities for the nine months ended September 30, 2024 consisted primarily of $68.2 million in cash dividends, $0.4 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 $0.6 million.
+Added: Cash used in financing activities for the three months ended March 31, 2025 consisted primarily of $5.0 million in repurchases of common stock, $4.1 million in cash dividends, $0.1 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 $0.2 million.
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.
1 unchanged sentence
Contractual Obligations and Off-Balance Sheet Arrangements
−Removed: At September 30, 2025, our contractual obligations included asset retirement obligations, leases and other individually insignificant obligations.
+Added: At March 31, 2026 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.
6 unchanged sentences
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.
−Removed: We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first nine months of 2025.
+Added: We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first three months of 2026.
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.